Statoil and partners have decided to proceed with the front end engineering design (FEED) of the (DG2) Phase 2 of the Johan Sverdrup development offshore Norway.
The partners have awarded FEED contracts to Aker Solutions, Kværner and Siemens for the Phase 2 project, which is planned to come on stream in 2022.
The first phase of Johan Sverdrup development involves establishing a field centre consisting of four platforms while the Phase 2 will be based on this infrastructure, adding additional processing platform to the field centre.
Aker Solutions has been awarded a FEED contract for processing platform for the field centre, while Kværner will be responsibe for P2 Jacket and Siemens for power supply from shore.
Statoil plans to make investment decision and submit plan for development and operation (PDO) for Phase 2 in the second half of 2018.
The project, which is estimated to cost NOK40-55bn ($4.8-6.60bn), is planned to commence production in 2022.
Currently under development, the phase 1 of Johan Sverdrup field is planned to commence production in late 2019.
In total, the project is expected to have peak production capacity of 660 000 barrels of oil per day.
Statoil Johan Sverdrup project director Kjetel Digre said: “The break-even price for the full-field development is now less than $25 per barrel and with an ambition of a world class recovery rate of 70%.”
According to estimates, the Johan Sverdrup holds 2 billion to 3 billion barrels of oil equivalents.
Statoil is the operator for the Johan Sverdrup development while other partners include Lundin Norway, Petoro, Maersk Oil and Aker BP.
Image: Illustration of the Johan Sverdrup field centre. Photo: courtesy of Statoil ASA.