Power from land for Utsira Height to delay Johan Sverdrup?

A majority in the Norwegian Energy and Environmental Committee today presented a proposal to the Storting which involves the supply of power from land to the entire Utsira Height.


Power from land to all of Utsira is one of three options in the concept study for Johan Sverdrup. Statoil and partners are recommending a two-phase solution from an industrial, financial and environmental standpoint.

The committee spokesman, who represents the Labour Party, communicates an intention of not creating a situation that will delay Johan Sverdrup field production.

Johan Sverdrup (previously Aldous/Avaldsnes) is one of the largest discoveries on the Norwegian shelf since the mid-1980s, and was one of the largest discoveries in the world in 2010/2011.

It is important for Statoil that the scheduled progress in developing the Sverdrup field is maintained. One year’s delay on Sverdrup will entail a pre-tax loss, in present value, of NOK 20 billion ($3.36 billion), the company said.

“Together with its partners, Statoil will consider whether the consequences of this proposal could lead to delay. It is unclear how the requirement to lay cables between the installations from the Sverdrup start-up phase will impact on the concept chosen and the project’s progress,” Statoil said in a statement.

 

Related:  Norway to Power Offshore Platforms from Land?

 

May 16, 2014

 

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