POST Online Media Lite Edition


Statoil: Johan Sverdrup field will cost $16.3 billion

Staff writer |
The development of the Johan Sverdrup oil field off Norway is expected to cost between NOK100 billion ($16.3 billion) and NOK120 billion, Statoil said, adding that the development plan would be slightly delayed until early 2015.

Article continues below

"This is historic. We have not made a concept selection for a field this size since the 1980s," said Arne Sigve Nylund, Statoil's executive vice president for development and production in Norway. The costs will pay for a field center, wells, export solutions for oil and gas, and power supply, the company said.

Production at the Johan Sverdrup field, estimated to hold between 1.8 billion and 2.9 billion barrels, will start in 2019 and have a lifetime of 50 years, Statoil said, adding that it hoped to recover as much as 70% of the field's oil, which would be among the highest recovery rates on the Norwegian shelf. The global average recovery rate is about 35%.

The field is set to deliver between 550,000 barrels and 650,000 barrels a day on plateau. The first phase would take it to between 315,000 barrels and 380,000 barrels a day, said Statoil. The company's share of production will be about 40%.

Statoil is the operator and biggest stakeholder in the Johan Sverdrup field, and partners are Norway's state-owned Petoro AS, Swedish oil company Lundin Petroleum, Det norske oljeselskap, and Maersk Oil, the oil and gas unit of Moller-Maersk.

What to read next

Statoil buys minority shareholding in Lundin Petroleum
Almaco to build cabins for Statoil's Johan Sverdrup platform
More oil found in the Barents Sea, says Statoil