Statoil, the operator for the Johan Sverdrup development, in the North Sea offshore Norway, has presented a preliminary capex estimate for the first phase of the development to the partnership.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
According to Det norske, the updated estimate is showing reduced capital expenditures as a result of positive market response in contracts and purchase orders. In the Plan for Development and Operations (PDO), which was submitted to the Ministry of Petroleum and Energy (MPE) on February 13, 2015 and approved by the MPE on August 20, 2015, capex for the first phase development was estimated at NOK 117 billion ($13.8B) in real terms (NOK 2015) and NOK 123 billion ($14.5B) in nominal terms.
Det norske explained in Friday’s press release that overall capex for the first phase has in the updated capex estimate been reduced by NOK 9 billion ($1.06B) from NOK 123 billion to NOK 114 billion in nominal terms, assuming the same currency assumptions as in the PDO. The contingency level (in NOK) is maintained in the updated estimate and reflects risks in scope, schedule and project execution.