The phase II of Johan Sverdrup project entails an investment of NOK48bn ($4.8bn) and includes a new platform, five new subsea systems, 28 new wells, a new module for the existing riser platform, and facilities
The Johan Sverdup field in the North Sea. (Credit: Lizette Bertelsen & Jonny Engelsvoll / Equinor)
Norwegian state-owned energy company Equinor has begun production from Johan Sverdrup Phase 2 project in the Norwegian portion of the central North Sea.
Located at Utsira High, 65km northeast of the Sleipner fields, in the central part of the North Sea, Johan Sverdrup is the third largest oil field on the Norwegian continental shelf.
The phase II of Johan Sverdrup project entails an investment of NOK48bn ($4.8bn) and follows phase one of the project, which became operational in October 2019.
It includes a new platform, five new subsea systems, 28 new wells, a new module for the existing riser platform, and facilities to send power from shore to the Utsira High area.
The Johan Sverdrup field will produce 720,000 barrels of oil daily, with plans to increase the production to 755,000 barrels per day.
The oil produced at the project will be transported to Mongstad through the pipeline, while the gas produced will be piped to Kårstø power plant.
Equinor projects, drilling and procurement executive vice president Geir Tungesvik said: “The entire Johan Sverdrup field is now on stream. This is a red-letter day for us and our partners, Aker BP, Petoro and TotalEnergies, but also for Norway and Europe.
“Johan Sverdrup accounts for large and important energy deliveries, and in the current market situation, most of the volumes will go to Europe.
“It has been challenging, and I would like to send a big thank you to everyone who has helped bring the project safely to the finish line, both partners, our own employees and, not least, the suppliers.”
The Johan Sverdrup project is owned by Equinor with a 42.6% stake, which is also its operator, Aker BP with 31.5%, Petoro with 17.3% and TotalEnergies holding an 8.44% stake.
Equinor said that the project has been in stable production for more than three years. Its current recoverable volumes total 2.7 billion barrels of oil equivalent (BOE).
The additional production from Phase two Johan Sverdrup project is said to address 6-7% of Europe’s daily oil demand.
The Phase two project development was completed as per the schedule, within the time frame, and project budget, regardless of the Covid-19 pandemic, said the company.
Johan Sverdrup and Martin Linge areas exploration and production vice president Marianne M Bjelland said: “In combination, this reduces CO2 emissions by a total of 1.2 million tonnes per year, equivalent to 2.5% of Norway’s annual emissions.
“Electrification is an important measure to further developing the Norwegian continental shelf (NCS) towards the goal of net zero greenhouse gas emissions by 2050.
“I am proud that we have now put the entire Johan Sverdrup field on stream in a safe and secure manner. We will deliver stable energy volumes for several decades, while contributing to Norwegian value creation for a long time to come.”