$1.3 Billion Expansion For Norway's Johan Sverdrup Oil & Gas Field

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe's largest producing oil and gas field, Johan Sverdrup, is to be expanded to the tune of US$1.3 billion by Norway's Equinor (Stavanger, Norway) and partners.

The partners have agreed to invest in the Phase 3 expansion of the field, which will include two new subsea templates that will be tied into existing infrastructure via new pipelines. They estimate that the investment will boost recoverable volumes from the field by 40 million--50 million barrels of oil equivalent (Boe), with production expected to start in the fourth quarter of 2027. Johan Sverdrup covers an area of 200 square kilometers (km) and is located in the Utsira High area of the North Sea, 160 km west of Stavanger, Norway. It has a production capacity of 755,000 barrels per day, approximately one-third of Norway's total oil production. AI software was used to analyse field layouts and well paths, which Equinor said led to faster decision-making and resulted in cost savings of US$12.8 million for Phase 3. Industrial Info is tracking eight Phase 3 projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

"By building on the technologies, solutions and infrastructure from phases 1 and 2 of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production," explained Trond Bokn, senior vice president for project development in Equinor. "The project increases the recovery rate and value creation from Johan Sverdrup, one of the world's most carbon-efficient oil and gas fields. At the same time, it contributes to stable energy supplies to Europe."

Upstream services firm TechnipFMC (NYSE:FTI) (London, England) has been awarded the contract for engineering, procurement, construction and installation (EPCI) for the subsea development, with a contract value of approximately US$523 million. Additional contracts, including platform modifications and the drilling of eight wells, are planned to be awarded later this year. Johan Sverdrup is estimated to have reserves of 2.7 billion Boe.

Equinor is also hailing Johan Sverdrup as one of the lowest emitting fields due to the high level of electrification, thanks to onshore power, as well as its higher than average recovery rates of 66%, versus the norm of 47% on the Norwegian Shelf. It cites CO2 emissions of 0.67 kilograms per barrel of oil produced, "approximately 5% of the global average." Marianne Bjelland, vice president for Johan Sverdrup, added: "In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field. Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come."

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