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Released May 29, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norway's government has granted permission to Equinor (NYSE:EQNR) for the $5 billion Johan Sverdrup Phase 2 oil and gas project in the North Sea.
Johan Sverdrup, currently under construction, is the biggest field development on the Norwegian continental shelf since the 1980s. Phase 2 of the development, with planned startup in fourth-quarter 2022, will increase field production from 440,000 barrels of oil per day to 660,000 barrels per day. Permission was granted by the Norwegian Ministry of Petroleum and Energy, and with estimated recoverable resources of 2.7 billion barrels of oil equivalent (boe), Johan Sverdrup is classed as one of the most important industrial projects in Norway for the next 50 years. It will contribute up to 25% of Norway's total production of oil and gas. The first phase of the Johan Sverdrup development is almost 90% finished, and production is expected to start in November this year. In April, Industrial Info reported a record-breaking lift at the project when four massive units weighing almost 47,000 tonnes were lifted into place offshore over a four-hour period. For additional information, see April 1, 2019, article - Equinor Completes Record-Breaking Lift on Johan Sverdrup.
Phase 2 will have a reduced total cost of investment and higher-than-expected yields, with an improved break-even price of less than $25 per barrel. Industrial Info reported on Equinor's Phase 2 plan last September. For additional information, see September 5, 2018, article - Equinor Submits $5 Billion Plan for Johan Sverdrup Oil Field.
"The development of the Sverdrup field in the North Sea is an industrial adventure in a class of its own," said Norway's Minister of Petroleum and Energy Kjell-Børge Freiberg. "The development phase provides tens of thousands of jobs across the country and will generate enormous revenues for the financing of the welfare state when production starts later this year. The finding of Sverdrup will always be a star example of why it is important to have a diversity of oil companies, a stable and predictable framework and an active policy for the allocation of exploration space. Allocation of land in predefined areas and the exploration refuelling scheme are central parts of the management system that has made the realisation of the Sverdrup field possible."
Equinor wasted no time on receipt of the good news, announcing on the same day that construction of the field's second processing platform at Aibel's yard in Haugesund had begun. The platform will also host the converter unit receiving power from shore to the Johan Sverdrup Phase 2 development and to the other fields included in the Utsira High area solution. The P2 processing platform weighs around 25,000 tonnes and consists of three modules: the main support frame is being constructed at Aibel's yard in Thailand; the converter unit will be built partly in Spain and in Haugesund; and the processing module will be constructed in Haugesund. After module assembly, the platform will be completed at the Haugesund yard before offshore installation in 2022.
"This is a big day for Equinor and the other Johan Sverdrup partners comprising Lundin Norway, Petoro, Aker BP and Total," said Anders Opedal, executive vice president for Technology, Projects and Drilling at Equinor. "Johan Sverdrup is a world-class field that will provide value to its owners and society for 50 years ahead with record-low emissions. This truly marks the beginning of the second development phase."
The Johan Sverdrup field is powered from shore, which Equinor maintained makes it one of the fields with the lowest CO2 emissions in the world. In the second phase, the field also will supply shore power to other fields on the Utsira High, including the Edvard Grieg, Gina Krog and Ivar Aasen fields. Emission reductions per year will be more than 620,000 tonnes of CO2--comparable to the annual emissions from 310,000 cars.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Johan Sverdrup, currently under construction, is the biggest field development on the Norwegian continental shelf since the 1980s. Phase 2 of the development, with planned startup in fourth-quarter 2022, will increase field production from 440,000 barrels of oil per day to 660,000 barrels per day. Permission was granted by the Norwegian Ministry of Petroleum and Energy, and with estimated recoverable resources of 2.7 billion barrels of oil equivalent (boe), Johan Sverdrup is classed as one of the most important industrial projects in Norway for the next 50 years. It will contribute up to 25% of Norway's total production of oil and gas. The first phase of the Johan Sverdrup development is almost 90% finished, and production is expected to start in November this year. In April, Industrial Info reported a record-breaking lift at the project when four massive units weighing almost 47,000 tonnes were lifted into place offshore over a four-hour period. For additional information, see April 1, 2019, article - Equinor Completes Record-Breaking Lift on Johan Sverdrup.
Phase 2 will have a reduced total cost of investment and higher-than-expected yields, with an improved break-even price of less than $25 per barrel. Industrial Info reported on Equinor's Phase 2 plan last September. For additional information, see September 5, 2018, article - Equinor Submits $5 Billion Plan for Johan Sverdrup Oil Field.
"The development of the Sverdrup field in the North Sea is an industrial adventure in a class of its own," said Norway's Minister of Petroleum and Energy Kjell-Børge Freiberg. "The development phase provides tens of thousands of jobs across the country and will generate enormous revenues for the financing of the welfare state when production starts later this year. The finding of Sverdrup will always be a star example of why it is important to have a diversity of oil companies, a stable and predictable framework and an active policy for the allocation of exploration space. Allocation of land in predefined areas and the exploration refuelling scheme are central parts of the management system that has made the realisation of the Sverdrup field possible."
Equinor wasted no time on receipt of the good news, announcing on the same day that construction of the field's second processing platform at Aibel's yard in Haugesund had begun. The platform will also host the converter unit receiving power from shore to the Johan Sverdrup Phase 2 development and to the other fields included in the Utsira High area solution. The P2 processing platform weighs around 25,000 tonnes and consists of three modules: the main support frame is being constructed at Aibel's yard in Thailand; the converter unit will be built partly in Spain and in Haugesund; and the processing module will be constructed in Haugesund. After module assembly, the platform will be completed at the Haugesund yard before offshore installation in 2022.
"This is a big day for Equinor and the other Johan Sverdrup partners comprising Lundin Norway, Petoro, Aker BP and Total," said Anders Opedal, executive vice president for Technology, Projects and Drilling at Equinor. "Johan Sverdrup is a world-class field that will provide value to its owners and society for 50 years ahead with record-low emissions. This truly marks the beginning of the second development phase."
The Johan Sverdrup field is powered from shore, which Equinor maintained makes it one of the fields with the lowest CO2 emissions in the world. In the second phase, the field also will supply shore power to other fields on the Utsira High, including the Edvard Grieg, Gina Krog and Ivar Aasen fields. Emission reductions per year will be more than 620,000 tonnes of CO2--comparable to the annual emissions from 310,000 cars.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
