The Johan Sverdrup discovery is located south of Grane, northeast of Sleipner and 140 kilometres west of Stavanger. The discovery extends over three production licences, PL501, PL265 and PL502.
Lundin Norway proved the Johan Sverdrup discovery with exploration well 16/2-6, drilled in 2010 on the Avaldsnes structure in PL501. The Johan Sverdrup discovery was a result of the Edvard Grieg discovery in 2007. Edvard Grieg opened up the possibility of a continuous oil-water contact on the southern part of the Utsira High, called the Haugaland High.
An extensive appraisal program is now substantially complete with 20 appraisal wells drilled and several of the wells having been side-tracked and production-tested. Two additional wells will be drilled in 2014 for further mapping and delineation of this major discovery.
Final concept selection for Phase 1 of the field development has been chosen by the Johan Sverdrup partnership and front end engineering for Phase 1 is currently ongoing. A plan of development for Phase 1 will be submitted for approval by the Norwegian government in early 2015.
The full field gross recoverable contingent resource range of 1,800 to 2,900 MMboe, announced by the pre-unit operator Statoil, makes Johan Sverdrup one of the five largest fields discovered on the Norwegian Continental Shelf and when the field has reached forecast plateau production of 550,000 to 650,000 boepd, field production is likely to represent around 25 percent of all Norwegian oil production.
Phase 1 - Field centre
Due to Johan Sverdrup’s size and lateral extension the field will be developed in several phases and with multiple fixed platform installations. Phase 1 of the development will contain the field centre of four fixed platform installations as well as additional subsea installations. The field centre will consist of one processing platform, one riser platform, one wellhead platform with drilling facilities and one living quarter platform. The platforms, which will be installed in 120 metres of water, will be installed on steel jackets and will be bridge-linked.
The first phase of the development is scheduled to start production in late 2019 and is forecast to have a gross production capacity of between 315,000 and 380,000 boepd. It is anticipated that between 40 and 50 production and injection wells will be drilled to support Phase 1 production, of which 11 to 17 wells will be drilled prior to first oil with a semi-submersible rig to facilitate Phase 1 plateau production.
The gross capital investment for Phase 1, which includes oil and gas export pipelines as well as a power supply from shore, is estimated to between NOK 100 to 120 billion, including contingencies and certain market allowances for potential future increases in market rates. The Phase 1 field centre will also facilitate certain spare capacity for future phases and potential enhanced recovery. The licence partners are continuously working to lower the level of investment for Phase 1.
The Johan Sverdrup oil and gas production will be transported to shore via dedicated oil and gas pipelines. A 274 km 36”oil pipeline will be installed and connected to the Mongstad oil terminal on the west coast of Norway. A 165 km 18” gas pipeline will be installed and connected to the Kårstø gas terminal for processing and onward transportation.
The Johan Sverdrup resources not developed as part of Phase 1 will be developed through subsequent development phases. The scope and costs of further development phases has not yet been addressed by the Johan Sverdrup partners and will form the basis of later investment decisions.
Lundin Norway is the operator of PL501 with a 40% interest, and has a 10% interest in PL265. The PL501 partners are Statoil Petroleum AS with a 40% interest and Maersk Oil Norway AS with a 20% interest. The PL265 partners are Statoil Petroleum AS, operator of PL265, with a 40% interest, Det norske oljeselskap ASA with a 20% interest and Petoro AS with a 30% interest. Lundin Norway has no interest in PL502. The PL502 partners are Statoil Petroleum AS, operator of PL502, with a 44.44% interest, Petoro AS with a 33.33% interest and Det norske oljeselskap ASA with a 22.22% interest.
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