Johan Sverdrup is the largest oil field project on the Norwegian continental shelf since the 1980s. The field is located in an area at Utsira Hight in the North Sea, 160 km west of Stavanger. The water depth in the area of the deposit is 110-120 m. The oil-bearing capacity of the field is associated with the deposits of the Jurassic period, which lie at a depth of about 1900 m.
The recoverable reserves of the field are estimated at 2.7 billion barrels of oil. During the peak production period, this field will account for about 1/3 of all oil production in Norway.
The field was discovered in 2010 and includes two production licenses and consists of two fields called Avaldsnes at production license 501 (2010, Lundin Petroleum as operator) and Aldous Major South at production license 265 (2011, Equinor as operator).
When it turned out that these two deposits form a single deposit, it was named Johan Sverdrup after the founder of Norwegian parliamentarism.
Avaldsnes was discovered by well 16 / 2-6 and includes Aldous Major South and Aldous Major North.
Aldous Major South was discovered in August 2011 by well 16 / 2-8, which was drilled to a depth of 2083 m, where an oil string was discovered with an interval of 65 m.
Aldous Major North is a small field discovered by well 16 / 2-9S, which was drilled to a depth of 2,047 m in September 2011. Lundin Petroleum drilled a well to confirm northward expansion of the southern field.
Productive deposits are Lower Cretaceous / Jurassic sand reservoirs with high levels of porosity and permeability.
The project is being implemented by Equinor (42.6%, project operator), with the participation of Lundin Norway (20%), Petoro (17.36%), Aker BP (11.57%) and Total (8.44%).
What Do We Know about Equinor?
A year ago, the Norwegian national company changed its name, focusing on the active development of renewable energy projects and the continuation of oil and gas production. Equinor is now launching major oil and gas development projects on the Norwegian shelf, as well as a number of large-scale renewable energy projects, mainly abroad. In March this year, Norway’s National Wealth Fund announced a $ 7.5 billion sale of oil and gas stocks to mitigate the risks of shifting from fossil fuel development to renewable energy. At the same time, within the country, the authorities and the national production company are aimed at the fullest possible use and monetization of the remaining undeveloped oil and gas resources.
Johan Sverdrup Field Development Phases
The development of the field is divided into 2 phases, the 1st of which started on October 5, 2019, 2 months ahead of schedule.
The initial development plan for the first phase of the field assumed that production would begin at the end of December 2019, but then the date was gradually shifted to closer dates.
The first phase of the development of the Johan Sverdrup field includes 4 platforms (drilling platform, oil and gas treatment platform, housing module, and riser block.), 3 subsea water injection units, power supply system, pipelines for oil and gas transportation.
Oil from the field has to be delivered to the Mongstad terminal in the Hordaland region in Norway.
The gas has to be transported via the Statpipe gas pipeline to the Gas Processing Plant (GPP) in North Rogaland.
A feature of the project is the power supply from the shore, due to which the field has a record low CO2 emissions – 0.67 kg / barrel.
The break-even price for full development of the field is less than $ 20 / barrel.
After the first phase of the field reaches the production shelf in summer 2020, the expected operating costs will be below 2 USD / barrel, which is a record low for an offshore project.
The production capacity of the first phase of the Johan Sverdrup field is 440 thousand barrels per day of oil. In the second phase, capacity will increase by 220 thousand barrels per day to 660 thousand barrels per day. For this, the construction of the 5th technological platform, modification of the riser block, and the field control center are planned.
After 2022, the Johan Sverdrup field will also participate in the onshore energy supply to other fields in the Utsira High area, incl. Edvard Grieg, Ivar Aasen and Gina Krog.
Phase 2 CAPEX of the field is estimated at US $ 4.5 billion and is expected to start in April 2022.
Johan Sverdrup is one of the world’s largest ongoing offshore projects with high efficiencies and the best levels of minimization of emissions (less than 1 kg CO2 per barrel). This is achieved by supplying electricity from shore instead of traditional field gas turbines.
The power supply for the field is provided by an onshore hydroelectric power plant (HPP), which will reduce overall greenhouse gas emissions by 80-90%, compared to the standard development procedure, which includes gas turbines commonly used on the Norwegian shelf. Also, energy-efficient solutions are prioritized in order to reduce overall energy consumption.
The expected life of the Johan Sverdrup oil field is over 50 years.