Want to secure the resources on Johan Sverdrup

28/04/2015 On Friday, the Government submitted a proposition to the Storting for the Plan for Development and Operation (PDO) for the first development phase step on the Johan Sverdrup field in the North Sea.

The Norwegian Petroleum Directorate (NPD) has been in close dialogue with the licensees to ensure the resources are managed in the best possible manner.

Johan Sverdrup is the largest development on the Norwegian shelf since Oseberg, where the PDO was submitted in 1984. The total investments for the first development phase, as well as the transport systems, are estimated at NOK 117 billion.

The NPD has prepared a separate cost estimate, which is about 10 billion 2015-NOK higher than the estimate in the PDO. The most important reason for this is that production from the field will most likely be delayed by six months, according to the NPD's assessment. Though the cost estimate is higher, it is well within the uncertainty range of plus/minus 20 per cent as indicated in the development plan.

Start-up of Johan Sverdrup is scheduled for December 2019, and the field’s resources provide a basis for production for about 50 years. The expected recovery is 352 million standard cubic metres (Sm3) of oil and 13.1 billion Sm3 of gas. This yields an oil recovery rate of 63 per cent. The operator, Statoil, has shown that various measures can lead to improved recovery, and consequently, a higher recovery rate. The NPD has encouraged licensees to choose measures that will contribute to this, and the plan facilitates the use of alternating water and gas injection. Adding polymer to the injection water is another measure that could improve recovery, and the NPD has been eager to ensure the method can be used.

The large resource volume and the extensive geographical scope necessitate the drilling of many wells on Johan Sverdrup. The drilling platform will therefore have a considerable number of available well slots so that more wells can be drilled later on. Flexibility in the development solution was a key point of the NPD’s follow-up. In order to safeguard future possibilities, a decision was made for the facilities to have available weight and space capacity so more equipment can be installed along the way.

Johan Sverdrup is the sixth field on the Norwegian continental shelf that will have power from shore. Additional transmission capacity will be established by 2022 so that the fully developed Johan Sverdrup, as well as Gina Krog, Edvard Grieg and Ivar Aasen, can have the same solution.

The NPD is an advocate of cost-efficient measures that can reduce emissions to air and discharges to sea. Produced water will be cleaned and reinjected into the reservoir. Together with the power supply from shore, this will make Johan Sverdrup the field with the lowest emissions to air and discharges to sea per produced unit on the Norwegian continental shelf.

The proposition is scheduled to be submitted to the Storting before summer.

 

Illustration: Statoil

The field center on Johan Sverdrup
Illustration: Statoil

Updated: 27/11/2015

Latest news

Production figures December 2021
20/01/2022 Preliminary production figures for December 2021 show an average daily production of 2 108 000 barrels of oil, NGL and condensate
APA 2021: 28 companies offered ownership interests
18/01/2022 18 January 2022, 28 companies have received offers of ownership interests in a total of 53 production licences on the Norwegian Shelf in the Awards in Predefined Areas (APA) 2021.
Dry well east of the Ormen Lange field in the Norwegian Sea – 6306/9-1
17/01/2022 Lundin Energy Norway AS, operator of production licence 886, is in the process of concluding the drilling of wildcat well 6306/9-1.
Record-high revenues from the Norwegian shelf
13/01/2022 The combination of high production of oil and gas from a total of 94 fields, significant demand and high commodity prices led to a historically high level on the State's export revenues from petroleum. Much of this is due to record-high gas prices.
Follow the livestream of The Shelf 2021
12/01/2022 Thursday, 13 January 2022 from 10:00 Director General Ingrid Sølvberg gives a summary of the Shelf in 2021.
Oil discovery near the Fram field in the North Sea – 35/10-7 S and 35/10-7 A
07/01/2022 Equinor Energy AS, operator of production licence 630, has concluded the drilling of wildcat well 35/10-7 S and appraisal well 35/10-7 A.
Drilling permit for wells 25/2-23 S, 25/2-23 A and 25/2-23 B
28/12/2021 The Norwegian Petroleum Directorate (NPD) has granted Aker BP ASA a drilling permit for wells 25/2-23 S, 25/2-23 A and 25/2-23 B, cf. Section 13 of the Resource Management Regulations.
Smarter use of data can increase value creation
21/12/2021 The Norwegian Petroleum Directorate (NPD) has taken an initiative to discuss with the industry which steps can be taken to increase value creation through better use of data.
Production figures November 2021
21/12/2021 Preliminary production figures for November 2021 show an average daily production of 1 999 000 barrels of oil, NGL and condensate.
Five companies want to store CO2
16/12/2021 The Ministry of Petroleum and Energy has received applications from five companies in connection with the announcement of two areas associated with injection and storage of CO2 on the Norwegian continental shelf.