Statoil, a Norwegian oil and gas major, has cut the cost estimate for the development of one of the five biggest oil fields on the Norwegian Continental Shelf, Johan Sverdrup.
The field, operated by Statoil, is located on the Utsira Height in the North Sea offshore Norway, 155 kilometres west of Stavanger. The field will be developed in phases and the first phase involves the establishment of a field centre consisting of four platforms. Production start-up is scheduled for end 2019.
According to Det norske, a partner in the project with 11.5733 per cent share, the cost estimates for phase 1 of the development of the Johan Sverdrup are now being decreased to NOK 108.5 billion ($12.2 billion), whereas the anticipated costs for full-field development are reduced to between NOK 160 billion – 190 billion.
Back in 2015 when the Plan for Development and Operation of the Johan Sverdrup field was submitted, the total investments for the first development phase, as well as the transport systems, were estimated at NOK 117 billion.
In addition, the partner said on Monday that the development costs of the field were expected to decrease further.
“Debottlenecking” of the production facility for phase 1 has also been decided, with the aim of increasing production capacity beyond the upper end of the PDO estimate of 315,000 – 380,000 barrels of oil equivalent per day, Det norske added.
Besides Det norske, Statoil’s other partners in the project are Maersk Oil with 8.44% interest, Petoro with 17.36% and Lundin Norway with 22.6%. Statoil has 40.0267% interest in the field.
Offshore Energy Today Staff