[Norway] Johan Sverdrup

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escveritas
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[Norway] Johan Sverdrup

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It’s Norway’s third largest oil field—ever. The Johan Sverdrup field is a technological triumph and a milestone for the Norwegian oil industry, supplying the world with energy, and creating value for society. It now in Phase 1 of production, at unprecented low cost and high quality.

Deepsea Atlantic drilling rig returning to Johan Sverdrup

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Equinor and its partners have signed a letter of intent with Odfjell Drilling for the Deepsea Atlantic rig to drill 12 wells during phase 2 of the Johan Sverdrup field development, following its work on phase 1.

The value of the fixed part of the agreement is estimated at around USD 150 million at the current USD exchange rate. The costs of integrated services, maintenance and options for drilling five extra wells are not included in the estimated value. The total contract value will depend on the efficiency of the well deliveries.

The Johan Sverdrup licence partners are Equinor (operator), Lundin, Petoro, Aker BP and Total.

“Johan Sverdrup phase 2 is the next stage in the development of the giant Johan Sverdrup field and a project that strongly impacts activities and spinoffs in Norway. With this contract, Norwegian suppliers have been awarded more than 90 per cent of the project contracts,” says Geir Tungesvik, Equinor’s senior vice president for project development.

The drilling period is scheduled to start at the beginning of 2022.

“Deepsea Atlantic drilled the Johan Sverdrup phase 1 wells with excellent results, so we are pleased to secure the rig for phase 2 as well. The rig is already on a continuing contract with Equinor, and our ambition is to keep it busy until Johan Sverdrup phase 2 comes on stream at the end of 2022. Odfjell has a high safety standard and the rig is one of the most efficient rigs we have,” says Erik G. Kirkemo, Equinor’s senior vice president for drilling and well operations.

Johan Sverdrup phase 2 includes the construction of a subsea production system, reconstruction of the existing riser platform and a new processing platform, which will also accommodate a converter unit receiving power from shore. This unit will distribute power to other fields on the Utsira High: Edvard Grieg, Ivar Aasen, Gina Krog and Sleipner. The four existing platforms on the Johan Sverdrup field are already receiving power from shore and CO2 emissions per barrel are 0.7 kg.

The phase 2 development will increase the field production capacity from 470,000 to 690,000 barrels per day on plateau. The break-even price will be below USD 20 per barrel, making Johan Sverdrup a highly profitable field with a very low CO2 footprint.
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Re: [Norway] Johan Sverdrup

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JOHAN SVERDRUP PHASE 2

CAPEX estimate: NOK 41 billion (nominal terms based on fixed currency)
Production start expected Q4 2022

FULL FIELD (PHASE 1 + PHASE 2)

Includes both phase 1 and phase 2 of the Johan Sverdrup development
Resource estimate in the range of 2.2-3.2 billion barrels of oil equivalent
Licence owners: Equinor Energy AS: 42.6267% (operator), Lundin Energy Norway AS: 20%, Petoro AS 17.36%, Aker BP ASA: 11.5733% and Total E&P Norge AS: 8.44%
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Re: [Norway] Johan Sverdrup

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Expecting faster ramp-up to higher plateau production on Johan Sverdrup
March 30, 2020 06:50 CEST

The North Sea Johan Sverdrup field expects to reach plateau production for the first phase in early May, earlier than anticipated. Due to higher plant capacity, plateau production will increase from around 440,000 barrels of oil per day to around 470,000 barrels per day.
Plateau production was previously expected to be reached during the summer. At the end of March, daily production had already exceeded 430,000 barrels of oil.

“Johan Sverdrup is an important project to the companies, the industry and society at large. The project was sanctioned during the oil price fall in 2015 and resulted in important activity to the supplier industry in a demanding period. With low operating costs Johan Sverdrup provides revenue and cashflow to the companies and Norwegian society at large in a period affected by the coronavirus and a major drop in the oil price. In today’s situation, cooperation between operators, suppliers and authorities is more important than ever to maintain activity and value creation,” says Arne Sigve Nylund, Equinor’s executive vice president for Development and Production Norway.

“Field production has been very good and stable from day one, and the wells have produced even better than expected,” says Rune Nedregaard, vice president for Johan Sverdrup operations. “We are currently completing the tenth well. This work is progressing smoothly, helping reach higher production earlier than expected. We also expect to increase plant capacity, allowing plateau production to increase from the previously expected 440,000 barrels to around 470,000 barrels of oil per day.”

The Johan Sverdrup field came on stream on 5 October last year, more than two months ahead of the original schedule and NOK 40 billion below the original estimate for development and operation (PDO August 2015).

The break-even price for the full-field development is below USD 20 per barrel, and expected operating costs are below USD 2 per barrel.

“Johan Sverdrup has very low production costs, contributing with a strong cashflow also in periods with low prices, as we experience” says Nedregaard.

At plateau in phase 2 the field will produce 690,000 barrels of oil per day. Expected recoverable reserves in the field are 2.7 billion barrels of oil equivalent. Our ambition for the field is to achieve a recovery factor of more than 70 per cent.

“We are working systematically with our partners to increase value creation from the field and ensure an optimal recovery factor,” says Nedregaard.

PARTNERS: Equinor: 42.6% (operator), Lundin Norway: 20%, Petoro: 17.36%, Aker BP: 11.5733% and Total: 8.44%.
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Re: [Norway] Johan Sverdrup

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June 8, 2021

Aker Solutions Delivers Johan Sverdrup Platform Jacket on Schedule

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Illustration of Johan Sverdrup phase 2 (Photo: Equinor)

Today Aker Solutions delivers yet another steel substructure for the largest industry project ever in Norway, the Johan Sverdrup field.

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Previously, the company has delivered three platform jackets for phase 1. With this jacket for phase 2 of the project, four out of a total of five jackets have been built and delivered from Aker Solutions’ yard in Verdal, Norway.

All platform substructures have been delivered on time, quality and budget. A key focus during the work has also been to improve execution models and to adapt for new types of jobs. As a result, future platform jackets for oil and gas and for renewable energy production can be delivered at a lower cost and with increased competitiveness.

Through the frame agreement entered into in 2014, and in international competition, Aker Solutions was awarded three out of four jackets for the first phase of the project.

The first delivery was the riser platform jacket in the summer of 2017. This was the largest and most complex platform jacket delivered from Aker Solutions to date, and the first visible installation at the new Johan Sverdrup field centre.

In March 2018, we delivered the steel substructure for the drilling platform, and in July of that year the process platform substructure was delivered.

Today, exactly on schedule, the process platform substructure for phase 2 sails from Verdal.

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Johan Sverdrup jacket at Verdal, Norway

"This is an exciting and important day for us. Through great cooperation with Equinor, we have delivered all four of these platform jackets at the agreed quality, time and budget. I am very pleased that our customers confirm that we are a supplier that offers an attractive combination of technical expertise and cost-effectiveness," said Sturla Magnus, executive vice president and head of Aker Solutions' topside and facilities business.

In total, the deliveries from Aker Solutions in Verdal make up about 90 percent of the total weight of the substructures for the combined phase 1 and 2 of the Johan Sverdrup field. More than 100,000 metric tons of steel are delivered from Aker Solutions' facility in Verdal, including the piles that attach the jackets to the seabed. In addition, Aker Solutions’ facility at Stord has delivered a topside as well as a large module for the Johan Sverdrup field.

"We are very pleased today. We have extensive experience in providing the customers with complete and seamless deliveries. In recent years, we have also increased industrialization for how we execute projects. This, combined with long-term relationships in the supplier market, makes it possible for us to offer flexibility to our customers. We are now delivering as planned despite a year of major challenges with COVID-19. Together with our employees and partners, we have found good solutions that enable us to deliver the jacket to our customer Equinor without serious injuries during the execution," said Erik Stiklestad, Aker Solutions’ yard director at Verdal.

ENDS
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Re: [Norway] Johan Sverdrup

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Johan Sverdrup produces at increased plateau

23 MAY 2023 22:35(GMT+8)

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This week a successful capacity test has been performed confirming that the field can produce up to 755,000 barrels of oil per day.

During a capacity test at Johan Sverdrup, the field reached a record-high production level of 755,000 barrels of oil per day.

This equals six to seven percent of the daily European oil consumption.

“This process capacity test at Johan Sverdrup confirms technically very robust facilities and was safely performed with no unwanted incidents. This is an important milestone, and the result of systematic and targeted efforts, says Marianne Bjelland, vice president Exploration and Production for Johan Sverdrup in Equinor.

Equinor and partners Aker BP, Petoro and TotalEnergies aim to maintain production levels of oil from the field up towards this level going forward.

In addition, Johan Sverdrup produces 31,500 barrels of oil equivalents of gas per day.

Johan Sverdrup facts
  • Johan Sverdrup has reserves of 2.7 billion barrels of oil equivalents. Phase one opened in October 2019, phase two started producing in December 2022.
  • The field is located in the area of Utsirahøyden in the North Sea, 160 kilometers west of Stavanger, at depths of 110-120 meters, covering an acreage of 200 square kilometers. It was originally expected to produce 660,000 barrels of oil per day at plateau, about a third of Norwegian oil production at the current level.
  • The field is calculated to generate more than 3400 jobs each year, and the production from the field has already contributed significantly to the state through taxes and direct ownership, estimated in total at about 900 billion Norwegian kroner over the field’s lifespan.
  • Johan Sverdrup produces at some of the lowest CO2 emissions of any oil field in the world, at 80-90 % lower than the global average.
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