Norway to take technological lead with Johan Sverdrup
Statoil Johan Sverdrup project is not only remarkable because of the context in which its final investment decision (FID) is made, but also as it will concentrate the most advanced technologies all along its development from the electrical power supply to the enhanced oil recovery (EOR) techniques to be deployed.
While most of the international oil companies (IOCs) are cleaning up their balance sheet, Statoil, as most of the national oil companies (NOCs), is gearing up in making the final investment decision (FID) for the first phase of the Johan Sverdrup development in considering the 50 years horizon line to secure their future.
With a first phase revised down to $11 billion capital expenditure, Statoil and its partners, Lundin from Sweden, Maersk Oil (Maersk) from Denmark, Det Norske Oljeselskap (Det Norske or DNO) and Petoro from Norway are planning to invest up to $40 billion for Johan Sverdrup Full Field Development.
The Johan Sverdrup project resulted from the merger of three different licenses involving Statoil and its partners in different stakes and roles requiring a complex process of unitization from Norway Authorities.
After intensive discussions between the partners and with Norway Petroleum & Energy Ministry, this unitization process concluded to the following roles and working interests in Johan Sverdrup:
– Statoil 40.0267% is the operator
– Lundin 22.12%
– Petoro 17.84%
– Det Norske 11.8966%
– Maersk 8.12%
Statoil and its partners expect the Johan Sverdrup Plan for Development and Operation (PDO) to be approved by Norway Authorities on mid-2015.
Located in the Utsirah Height of the Norwegian Continental Shelf (NCS), Johan Sverdrup lies approximately 155 kilometers offshore west Stavanger by only 120 meters of water depth.
Johan Sverdrup to produce more than UK by 2025
At the peak production, Johan Sverdrup should reach 650,000 boe/d production representing 25% of Norway production by 2025 and more than UK at that time.
These technologies will combined soft water and chemical injection, greenhouse gas injection.
All these solutions double the need for electrical power supply that will come from shore by subsea cable.
Therefore this Johan Sverdrup First Phase project will include four offshore platforms and two export pipelines.
The Johan Sverdrup Phase-1 platforms include:
– Drilling Platform
– Riser Platform
– Processing Platform
– Living Quarter Platform
The oil pipeline will supply the Mongstad Terminal while a new 165 kilometers gas pipeline will feed the Karsto Central Processing Facility.
In 2016, Statoil will start drilling the production wells in expecting the first production for Johan Sverdrup First Phase by 2019.