North Sea Johan Sverdrup partners OK third phase of development

Equinor and its partners have agreed to a NOK13-billion ($1.29-billion) Phase 3 development of the Johan Sverdrup Field in the Norwegian North Sea.

The additional planned subsea infrastructure should increase recovery by 40 MMboe to 50 MMboe. It will include two new subsea templates, both tied into existing infrastructure via new pipelines.

Phase 3 production is set to begin in late 2027.

According to Equinor, the project team used artificial intelligence to help optimize field layouts and well paths and to speed up decision-making. This led to cost savings for the project of NOK130 million ($12.92 million).

The development will also add extra well slots, with further opportunities for connecting additional subsea templates.

TechnipFMC has a NOK5.3-billion ($527-million) EPC contract for the subsea development, with other contracts due to follow later this year, notably for platform modifications and drilling of eight new wells.

At present, Johan Sverdrup’s projected recovery rate is 66%, but the partners are now targeting 75%. These figures compare with an average across the Norwegian Continental Shelf of 47%, Equinor claimed.

Last year, Johan Sverdrup established a new oil production record for any field offshore Norway of 260 MMbbl, the company added.

The partners have issued a notification to the authorities in accordance with the existing plan for development and operation.