Johan Sverdrup Oil Destined for Mongstad

The Johan Sverdrup field partners have unanimously decided to recommend landing of oil from the field at Mongstad.

The partners recommend Mongstad after studies of both Sture and Mongstad as alternative terminals for receiving the oil. The decision is founded on an overall assessment of health, safety and environment elements, robust development, total cost, technical feasibility, flexibility and plan risk.

The export solution comprises a separate pipeline from Johan Sverdrup, landing of pipeline and an onshore route, as well as terminal modifications for Mongstad. The recommended solution is subject to final concept solution for Johan Sverdrup.

“For the Mongstad terminal this is a positive recommendation that supports Statoil’s ambition of ensuring that the terminal activity leads to profitable oil value chains at Mongstad,” says Arne Sigve Nylund, head of Statoil’s onshore plants.

“The recommendation has been made on the basis of what is the best solution for the Johan Sverdrup field. It is therefore not a decision regarding where the oil is to be refined.”

“The Sture terminal will also receive new volumes from the Ivar Aasen and Edvard Grieg fields,” he continues. “All these elements will enable good use of resources and higher infrastructure flexibility that will ensure competitive landing of oil from existing and new fields on the Norwegian continental shelf.”

Holistic development

The first part of the concept selection for oil transport from the Johan Sverdrup field was made in the autumn of 2012, in connection with Gassco’s study of an overall solution for oil export from the Utsira High. Based on the expectation of large volumes from Johan Sverdrup a new pipeline was planned from the field to the Mongstad or Sture oil terminal.

It is also clear that the Johan Sverdrup partners recommend the existing infrastructure for gas transport from the field. The recommendation involves a new 165-kilometre-long gas pipeline from the Johan Sverdrup field to Statpipe and further transport to the Kårstø processing complex north of Stavanger.

The Utsira High is located between the Sleipner and Grane fields, in an area with good infrastructure enabling new, robust and flexible export solutions for the Utsira High.

Facts:

* Size of pipeline: Diameter of 36 inches

* Length of pipeline: 275 km

* Modifications: Limited modifications at the Mongstad terminal

* Investment: Not clarified before the investment decision is made

Johan Sverdrup partnership:

Licensees PL501: Lundin Norway (40%), Statoil (40%) and Maersk Oil (20%)

Licensees PL265: Statoil (40%), Petoro (30%), Det norske oljeselskap (20%) and Lundin Norway (10%)

Licensees PL502: Statoil (44,44%), Petoro (33,33%) and Det norske oljeselskap (22,22%)

 

Press Release, December 02, 2013

 

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