The plan for development and operation (PDO) for phase one of the Johan Sverdrup development, in the North Sea offshore Norway, was approved by the Ministry of Petroleum and Energy Thursday, August 20, 2015.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
The PDO for Phase 1 of the Johan Sverdrup development was submitted to the Norwegian Ministry of Petroleum and Energy on February 13, 2015.
In addition to the PDO itself, a plan for installation and operation for oil and gas export pipelines (PIO) and a plan for developing power supply from shore (PIO) was also approved.
Johan Sverdrup is the largest oil discovery on the Norwegian shelf since the 1980s, and will be developed in several phases.
Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates. The capital expenditures for Phase one have been estimated to NOK 117 billion or $14.2 billion (2015 value) and a planned production capacity of 315 000 to 380 000 barrels of oil equivalent per day.
“The field is of great importance, and will generate substantial spin-offs and value for partners and society for more than 50 years,” said Arne Sigve Nylund.
A significant number of contracts have already been awarded for the development of this phase. Notably, all four topside contracts have been awarded, with EPC type contracts being awarded to Aibel (drilling platform) and Kværner/KBR (living quarters and utility) whilst a fabrication contract has been awarded to Samsung Heavy Industries (riser platform and processing platform) with Aker Solutions being contracted for the procurement and engineering of the riser and processing platforms.
The contract for the heavy lift installations for three of the topsides has been awarded to Allseas and the contract for the construction of the steel jacket for the riser platform has been awarded to Kværner, which started to cut steel for the jacket in June 2015. Odfjell Drilling has been awarded the contract for drilling of the wells. The pre-drilling subsea template was installed earlier this month and drilling operations are scheduled to start during the first half of 2016.
Phase one of the Johan Sverdrup development is scheduled to come onstream in late 2019 and reach a gross plateau rate of between 315,000 and 380,000 barrels of oil per day.
Arne Sigve Nylund, Statoil executive vice president for Development and Production Norway said: “We are delighted that the development plan for the Statoil-operated Johan Sverdrup field has been approved. The field is of great importance, and will generate substantial spin-offs and value for partners and society for more than 50 years. Focused efforts are now underway in the partnership to ensure that the opportunities and enormous values in the Johan Sverdrup field are captured.”
Øivind Reinertsen, Statoil senior vice president for Johan Sverdrup: “We are on schedule in the Johan Sverdrup development. The project activities will now be stepped up, and more contracts will be awarded in the autumn. Last week the first piece of the Johan Sverdrup development, the pre-drilling template, was installed on the field in the North Sea. In addition the construction of the first jacket has started at Kværner Verdal. Contracts worth more than NOK 40 billion have been awarded so far in the development, 75 percent of which have been landed by suppliers with Norwegian invoice addresses.”
Karl Johnny Hersvik in Det norske oljeselskap ASA, said: “We are on schedule in the Johan Sverdrup development and as an active and responsible partner, Det norske oljeselskap will closely follow the development to ensure that the opportunities and enormous values are captured to the best for both the license owners and the Norwegian society.”
CEO of Maersk Oil, Jakob Thomasenm, said: “We are proud to be part of the Johan Sverdrup partnership and see this project as a strong contributor to our overall North Sea portfolio of operations and developments over the coming years. The project is the biggest planned investment in the entire North Sea basin over the coming decade, illustrating that the basin still holds significant potential.”
“With more than 50 years’ experience in the North Sea, Maersk Oil has a strong pedigree participating in phased developments similar to the Johan Sverdrup project. By applying the right technologies and capabilities, this important project will provide a significant contribution to Norwegian society for decades,” says Neil Cummine, Managing Director of Maersk Oil Norway.