Located in the Norwegian part of the North Sea, the Johan Sverdrup field has a resource estimate of 2.2-3.2 billion barrels of oil equivalent
Equinor and its partners have secured consent from the Norwegian Petroleum Directorate (NPD) to start production from the Johan Sverdrup field in the North Sea.
The consent is for phase 1 of the offshore oil project, which has seen an investment of 83bn Norwegian krone (£7.56bn). Johan Sverdrup is expected to yield oil for the next four decades.
Equinor is looking to commence production at the Johan Sverdrup field this autumn, said NPD.
The resource estimate of Johan Sverdrup is 2.2-3.2 billion barrels of oil equivalent with the offshore field to be developed in two phases.
Nearly 95% of the resources at the Johan Sverdrup field is oil, 3% is dry gas, and the remaining is natural gas liquids (NGL). The offshore field has a production capacity of 105,000m3 of oil per day.
In May 2019, Norwegian authorities approved the plan for development and operation (PDO) for the NOK41bn (£3.73bn) second phase development of the Johan Sverdrup field.
NPD development and operations director Ingrid Sølvberg said: “The Johan Sverdrup field is a shining example of the possibilities and the values that can be achieved through exploration of mature petroleum provinces on the shelf.”
The phase 1 of the Norwegian oil project involved development of the processing platform, drilling platform and riser platform, accommodation and utility platform, three subsea installations, power from shore, and an export pipeline for oil to Mongstad and gas to Kårstø.
The second phase of Johan Sverdrup field development will see addition of the new processing platform to the field centre apart from modifications of the riser platform and the field centre, and addition of five subsea templates.
Expected to enter into production in the fourth quarter of 2022, the Johan Sverdrup phase 2 project will offer an additional production capacity of 220,000 barrels of oil per day.
In a related development, Equinor has completed sale of a 16% stake in Lundin Petroleum in exchange of a direct interest of 2.6% in the Johan Sverdrup field and a cash consideration of about $650m (£540.2m).
Stakeholders of the Johan Sverdrup field
Following the transaction, Equinor now holds 42.6% stake in Johan Sverdrup with its partners being Lundin Petroleum (20%), Petoro (17.3%), Aker BP (11.5%), and Total E&P Norge (8.4%).