STAVANGER, Norway– Equinor and its partners Lundin Norway, Petoro, Aker BP, and Total have submitted the development plan for the second phase of the Johan Sverdrup project to the Norwegian Ministry of Petroleum and Energy.
The plan for development and operation (PDO) forJohan Sverdrup Phase 2 includes development of another processing platform (P2), modifications of the riser platform and the field center, five subsea templates, and measures to facilitate power from shore to the Utsira High by 2022, in accordance with the terms for PDO Phase 1.
The investment estimate for Phase 2 is NOK41 billion ($4.9 billion), with the break-even price less than $25/bbl. Production start-up is planned for 4Q 2022.
Equinor CEO Eldar Sætre said: “TheJohan Sverdrup field is the largest field development on the Norwegian shelf since the 1980s. At plateau, the field will produce up to 660,000 b/d, with a break-even price of less than $20/bbl and very low CO2 emissions of 0,67 kg per barrel. Johan Sverdrup is on track to deliver vast volumes of energy with high profitability and low emissions for many decades to come.
“Today we are announcing an increased resource estimate and we are reducing the total estimated investment for both Phase 1 andPhase 2 of the development by an additional NOK6 billion [$720 million] since February of this year. Since the PDO for the first phase in 2015, we have reduced the total estimated investment for Johan Sverdrup full field development by more than NOK80 billion [$9.6 billion]. The project will yield even greater value creation and larger spin-off effects than previously estimated.”
According to Equinor, the updated investment estimate for Phase 1 is now NOK86 billion ($10 billion), a reduction of 30%, amounting to NOK37 billion ($4.4 billion) since submission of the Phase 1 PDO.
Phase 1 is about 80% complete and on track to start production in November 2019, according to Margareth Øvrum, executive vice president for technology, projects & drilling in Equinor.
In connection with the development of Phase 2, Equinor and the Johan Sverdrup partnership have established a full field digitalization and technology plan to further reinforce safety and efficiency in operations, increase, value and reduce carbon emissions from the field.
Improved recovery technologies included in the plan are:
- Water alternating gas injection
- Permanent reservoir monitoring for the full field
- Stepwise implementation of fiber optics in wells
- Step-by-step development of digital twinning
- Technologies for automatic drilling control on the drilling platform
- High-speed telemetry drill pipe
- Improvements in cement quality
- Virtual rate monitoring on subsea wells.
“Johan Sverdrup will be best in class on digitalization and new technology. Digitalization will reinforce the effect of several improved recovery technologies. Together, this has allowed us to increase the resource estimate for Johan Sverdrup, while simultaneously raising the ambitions for the field’s recovery rate to over 70%. This will make Johan Sverdrup a world leader also in terms of the improved recovery,” says Øvrum.
In the Phase 2 PDO, the resource estimate for the entire Johan Sverdrup field is raised from 2.1-3.1 Bboe to 2.2-3.2 Bboe, with an expected estimate of 2.7 Bboe.