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Johan Sverdrup onstream
Equinor (42.6%) and partners Lundin Norway (20%), Petoro (17.36%), Aker BP (11.5733%) and Total (8.44%), started production from the giant Johan Sverdrup field in the Norwegian North Sea on 5 October 2019, more than two months ahead of schedule and NKr40bn ($4.31bn), or 30%, below the original estimate in the plan for development and operation (PDO).
Johan Sverdrup has expected recoverable reserves of 2.7bn boe and will produce up to 660,000 b/d at peak, accounting for around one third of all oil production in Norway. Powered with electricity from shore, the field has record-low CO2 emissions of well-below 1 kg/b, reports Equinor.
The break-even price for the full Johan Sverdrup development is less than $20/b, according to the company. After reaching plateau for the first phase, anticipated during the summer of 2020, expected operating costs are below $2/b. The operator also expects cash flow from operations of around $50/b in 2020, based on a real oil price of $70/b, partly as a result of the phasing of tax payments in the ramp-up phase.
Investment in digital solutions and new ways of working to boost oil recovery, optimise production and improve field operations, contributed to the field coming onstream before the December 2019 date outlined in the orginal PDO.
The first phase of Johan Sverdrup development, with a production capacity of 440,000 b/d, comprises four platforms (accommodation and utility platform, processing platform, drilling platform, riser platform), three subsea installations for water injection, power from shore, and export pipelines for oil (Mongstad) and gas (Kårstø). Phase 2 includes development of another processing platform (P2), modifications of the riser platform and the field centre, five subsea templates, in addition to the power-from-shore supply to the Utsira High (including the Edvard Grieg, Ivar Aasen and Gina Krog fields). Due onstream in 4Q2022, phase 2 production capacity will be 220,000 b/d.