Johan Sverdrup oil field set to commence production ahead of schedule

Equinor and its partners Lundin Norway, Petoro, Aker BP and Total are planning to commence production at Johan Sverdrup oil field in the Norwegian North Sea during the month of October, one month ahead of schedule, as per the latest oil and gas industry news.

Accelerated start-up schedule of the Johan Sverdrup phase 1 project is subject to the successful testing of the equipment and systems required for the full field centre to function and perform as an integrated installation.

The full field centre of the offshore Norwegian oil field, located in the Utsira High area, spans four platforms and three interconnected bridges and associated modules.

The Johan Sverdrup oil field in the North Sea

The Johan Sverdrup oil field in the North Sea. Photo courtesy of Espen Rønnevik/Øyvind Gravås – Equinor ASA.

Equinor claims that the Johan Sverdrup oil field has witnessed both cost reduction and also an acceleration in the production schedule from the original date in late December 2019 to next month. This was since the Plan for development and operation (PDO) for Phase 1 of the Johan Sverdrup project was submitted in 2015, said the Norwegian oil and gas company.

Commenting on the start-up of the Johan Sverdrup oil field, Anders Opedal – executive vice president for technology, projects and drilling, Equinor said: “Around this time last year, we accelerated the expected schedule for production start-up of Johan Sverdrup to November 2019.

“Now, as we enter the final stretch of the project, we believe it is possible to start production up to one month earlier.

“Being in the position to potentially accelerate first oil for a mega-project like this, demonstrates the high quality of execution in the Johan Sverdrup development.

“Based on the remaining known scope of work, we are increasingly confident of starting production at Johan Sverdrup soon.”

Equinor anticipates operating costs below $2 per barrel after reaching a plateau for the first phase of the Johan Sverdrup development, during the summer of 2020.

Based on a real oil price of $70 per barrel, partly as a result of the phasing of tax payments in the ramp-up phase, the operator also anticipates cash flow of approximately $50 per barrel from operations in the next year.

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