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Lundin Energy’s Johan Sverdrup barrels certified as carbon neutrally produced

Lundin EnergyAll future barrels of oil Lundin Energy sells from the Johan Sverdrup field will be certified as carbon neutrally produced under Intertek Group’s CarbonZero standard. The field has been independently certified at 0.45kg CO2 per barrel of oil equivalent (boe), approximately 40 times lower than the world average.

Lundin Energy has then taken the further step to neutralise net residual emissions using high quality, natural carbon capture projects. The Johan Sverdrup field is the second in Norway to have its emissions independently certified by Intertek, under its CarbonClearTM standard. The field is certified as one of the world’s lowest carbon emitting offshore oil and gas fields at 0.45kg CO2 per boe for full life of field emissions, approximately 40 times lower than the world average. In order to supply a fully carbon neutrally produced barrel, the residual emissions have been neutralised through high quality, natural carbon capture projects, certified by the Verified Carbon Standard (VCS). As a result, there will be no net emissions released during the future production of Lundin Energy’s Johan Sverdrup net barrels, which amounts to approximately 100 thousand barrels of oil per day (Mbopd) today and increasing to approximately 150 Mbopd when Phase 2 of the field comes on stream in the fourth quarter of 2022.

The first trade of certified carbon neutrally produced oil from Johan Sverdrup has already been completed with GS Caltex in Korea. The two million barrel cargo will load in July 2021 to be delivered to Korea and was sold as carbon neutrally produced at market price. Nick Walker, President and CEO of Lundin Energy, comments, “Since we sold our first cargo of certified, carbon neutrally produced oil from Edvard Grieg earlier this year, we have seen significant interest in the market for this clearly differentiated product. With the certification of our Johan Sverdrup barrels as CarbonZero, we now have a significant volume of crude being traded as carbon neutrally produced, which I believe will drive significant value for Lundin Energy. As the energy transition
continues to accelerate, providing certified, zero emission produced barrels to our customers ensures that they can continue the decarbonisation pathway, delivering a differentiated product to their end users. From 2025, every barrel delivered by Lundin Energy, will be carbon neutrally produced.”

Saehong Hur, President and CEO of GS Caltex Corporation, states, “We are very proud to purchase the first Johan Sverdrup cargo certified as carbon neutrally produced. At GS Caltex, we are striving to reduce our carbon footprint as part of our commitment to good environmental, social and governance practices. In line with our efforts to expand environmentally-friendly activities, the purchase of Lundin Energy’s certified carbon neutrally produced crude oil is another meaningful step on our path toward a more sustainable and green economy. GS Caltex would like to work together with Lundin Energy further in the future.”