The PDO will be handed over from Statoil’s chief executive officer Eldar Sætre to Norwegian petroleum and energy minister Tord Lien.
"This is a great day. We are delivering the PDO for the largest oil discovery on the Norwegian continental shelf since the 1980s. Johan Sverdrup will generate value of great importance to Norway through several decades. The field’s economy is robust also at current oil prices," says Sætre.
The capital expenditures for phase one are estimated at NOK 117 billion (2015 value) and the expected recoverable resources are projected at between 1.4-2.4 billion barrels of oil equivalent.
For the full field development, capital expenditures are estimated at some NOK 170-220 billion (2015 value) with recoverable resources of between 1.7-3.0 billion barrels of oil equivalent.
The Johan Sverdrup oil field is planned to be developed in several phases, Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates.
The ambition is a recovery rate of 70%, with advanced technology for increased oil recovery (IOR) in future phases taken into account. The development in phase one has a production capacity in the range of 315,000-380,000 barrels per day. First oil is planned for late 2019.
The partnership, consisting of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil, has recommended Statoil as the operator for all phases of the field development and operation.
The majority of the partnership has asked the Norwegian Ministry of Petroleum and Energy to determine the final allocation of resources in Johan Sverdrup, based on the following proposal: Statoil 40.0267%, Lundin Norway 22.12%, Petoro 17.84%, Det norske oljeselskap 11.8933% and Maersk Oil 8.12%. The majority’s proposal for the allocation of resources is valid until the Norwegian Ministry of Petroleum and Energy decides the final allocation.
"The partnership has submitted a very good basis for further proceedings to the ministry," says Øivind Reinertsen, senior vice president for the Johan Sverdrup project.
"The Johan Sverdrup development will create ripple effects for the whole society. We look forward to a continued good cooperation with our partners, the authorities and with a competent and competitive supply industry. The field will need the contribution of many suppliers, like a complex jigsaw puzzle where all pieces must be in place before we cross the finish line. We are excited about getting started,” he concludes.
In addition to the PDO the project will also submit two plans for installation and operation (PIO) for pipeline transportation and the development of power from shore solution.
Date: Feb 13, 2015