Equinor and its partners are set to invest NOK13bn ($1.3bn) in the third phase of the Johan Sverdrup oil field in the Norwegian North Sea, with an aim to boost its recovery by 40–50 million barrels of oil equivalent (boe).
The development involves the installation of two new subsea templates, which will be connected to existing infrastructure via new pipelines, thereby increasing the recoverable volumes from the field.
Production from this new phase is anticipated to commence in Q4 2027.
According to Equinor, the phase 3 project aims to elevate Johan Sverdrup’s recovery rate from 66% towards a target of 75%, compared to the average of 47%. on the Norwegian continental shelf.
Equinor project development senior vice president Trond Bokn said: “By building on the technologies, solutions, and infrastructure from phases 1 and 2 of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production.
“The project increases the recovery rate and value creation from Johan Sverdrup, one of the world’s most carbon-efficient oil and gas fields. At the same time, it contributes to stable energy supplies to Europe.”
Earlier this year, TechnipFMC was awarded a contract for engineering, procurement, construction, and installation (EPCI) for the subsea development at a value of approximately NOK5.3bn ($530m). Further contracts, including those for platform modifications and drilling eight wells, are expected to be awarded later this year.
Equinor said that it employed artificial intelligence (AI) for optimising resource utilisation for the phase 3 project. This was through analysing field layouts and well paths, which is said to have led to quicker decision-making and cost savings of NOK130m ($12.9m) for this development phase of the Johan Sverdrup field.
The phase 3 development also prepares for future value creation by adding extra well slots and opportunities for additional subsea templates.
The Johan Sverdrup field, which began production in October 2019, is located in the Utsira High area, about 160km west of Stavanger. It operates within water depths ranging from 110 to 120m across an area of 200km2.
The field’s production capacity stands at 755,000 barrels per day, accounting for roughly one-third of Norway’s oil output.
Johan Sverdrup vice president Marianne Bjelland said: “In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field.
“Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come.”
Equinor Energy holds a 42.62% stake as operator in the Johan Sverdrup field. Its partners include Aker BP (31.57%), Petoro (17.36%), and TotalEnergies EP Norge (8.44%).
