Norwegian government approves Phase 1 of Johan Sverdrup
The partners in the Johan Sverdrup development have received the final approval of the Plan for Development and Operation (PDO) for Phase 1 of Johan Sverdrup from the Norwegian Ministry of Petroleum and Energy (MPE).
“We are proud to be part of the Johan Sverdrup partnership and see this project as a strong contributor to our overall North Sea portfolio of operations and developments over the coming years. The project is the biggest planned investment in the entire North Sea basin over the coming decade, illustrating that the basin still holds significant potential,” said Jakob Thomasen, CEO of Maersk Oil.
“With more than 50 years’ experience in the North Sea, Maersk Oil has a strong pedigree participating in phased developments similar to the Johan Sverdrup project. By applying the right technologies and capabilities, this important project will provide a significant contribution to Norwegian society for decades,” said Neil Cummine, Managing Director of Maersk Oil Norway.
Phase 1 of the Johan Sverdrup development, with an estimated capital expenditure of NOK 117 billion, consists of four bridge-linked platforms and three subsea water injection templates and has a production capacity of 315,000-380,000 BOED. First oil is planned for late 2019, and the expected recoverable resources are projected to be between 1.4-2.4 billion BOE.
By approving the Unit Operating Agreement (UOA), the Norwegian Ministry of Petroleum and Energy has ruled the apportionment of the Johan Sverdrup field between the partners. The apportionment in the approved UOA gives Maersk Oil 8.44%.
For the full field development, capital expenditure is estimated at approximately NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion BOE and an expected plateau production of 550,000 to 650,000 bbl/day. The Maersk Oil share of the capital expenditure for Phase 1 is $1.8 billion.
