The Johan Sverdrup field is located 155 km west of Stavanger. The field was discovered in 2010 with the discovery on the Avaldsnes prospect in PL501 by Lundin Norway followed by the discovery of Aldous in PL265 by Statoil in 2011. The discovery of Johan Sverdrup was a direct result of the Edvard Grieg discovery made by Lundin Norway in 2007, as the Johan Sverdrup play concept was modelled on the same basis as that for Edvard Grieg.
The Plan of Development and Operation (PDO) for the giant Johan Sverdrup field was submitted to the Norwegian Ministry of Petroleum and Energy (the Ministry) in February 2015. Following Norwegian Parliament approval in June 2015, the PDO for Phase 1 was given final approval by the Ministry in August 2015.
Reserves and production
Following the execution of the Johan Sverdrup unit operating agreement and the approval of the PDO, Lundin Petroleum has booked net 2P reserves of 515 MMboe for the full field development, based on Lundin Petroleum's 22.60 percent working interest. The gross 1P and 3P reserves for the full field development are estimated to be 1.65 and 3.02 billion boe respectively. These volumes expressed in boe include oil, gas and natural gas liquids and comprise approximately 95 percent oil. The reserves have been independently audited by ERC Equipoise Ltd.
The oil and gas production capacity for the full field is expected to be in the range of 550,000 - 650,000 barrels of oil equivalent per day. This makes Johan Sverdrup one of the five largest fields ever discovered on the Norwegian continental shelf. When the full field plateau production is reached, Johan Sverdrup is likely to represent around 25 percent of all Norwegian oil and gas production.
The Johan Sverdrup field will be developed in several phases and with multiple fixed platform installations. Phase 1 of the development consists of four bridge linked platforms as well as three subsea installations. The gross capital expenditures for Phase 1 is estimated at NOK 117 billion (real 2015) which includes oil and gas export pipelines, development wells as well as power supply from shore.
Phase 1 is scheduled to start production in late 2019 with a forecast gross production level of between 315,000 and 380,000 barrels of oil per day. Phase 1 will consist of 35 production and injection wells of which 14 to 15 wells will be drilled prior to first oil.
Phase 2 of the Johan Sverdrup development is expected to commence production in 2022. Whilst the development concept for the full field development has not yet been approved by the partnership, the current estimated full field capital costs, including Phase 1 costs, are in the range of NOK 170 to NOK 220 billion (real 2015).
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.
Lundin Norway has a 22.60 percent working interest in the Johan Sverdrup field. Statoil is operator with 40.0267 percent and the remaining partners are Maersk Oil with 8.44 percent, Petoro with 17.36 percent and Det norske oljeselskap with 11.5733 percent working interest.
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