The Johan Sverdrup plan - a historic milestone and industrial foundation

Petoro CEO Grethe Moen:
“The plan we are submitting today for development and operation of the Johan Sverdrup field represents a milestone in Norwegian petroleum history,” says Grethe Moen, president and CEO of Petoro. “It also provides an industrial foundation for further progress on the Norwegian continental shelf. And 13 February 2015 is   without doubt also a big day for Petoro, which is responsible for managing the state’s interest in this field. That’s a task we accept with both pride and respect.”
Beyond Johan Sverdrup itself, Moen sees the development as an important basis for extended industrial activity on the NCS in general. “Such a large and significant field increases the probability of more exploration and further discoveries, continued progress with technology and new solutions, and additional development projects.”
 Investment in the first stage of Johan Sverdrup is estimated at NOK 117 billion. This phase will have a production capacity of 315 000 – 380 000 barrels of oil per day (bod). Fully developed, the field could produce 550-650 000 bod. In phase one, this represents in the range of 15-20 per cent of the production managed by Petoro on behalf of the Norwegian government. This share may increase to more than 30 per cent in phase two, depending on the production development in the portfolio at large. The Johan Sverdrup field has a production horizon of 50 years.
 “This is the most extensive field development plan we’ve been involved with,” says Moen. “It lays a solid basis for collaboration with Statoil as operator and the other partners, and the State Direct Financial Interest is through Petoro secured large revenue for many decades to come", said Moen. The Ministry of Petroleum and Energy has by a majority of the partners been asked to determine the final distribution of the Johan Sverdrup shares, based on a recommendation which will make Petoro a licensee to 17,84 per cent of the unitised field.”
 Petoro wants to see that development and operation create commercial opportunities for the supplies industry and strengthen the ability of companies to compete both at home and abroad. Estimates indicate that Johan Sverdrup will generate some 51 000 work-years during the development period of phase one, while operation in phase one could involve about 2 700 work-years for permanent employees.
 In line with its strategy, Petoro has also been concerned to incorporate lessons from mature fields in the new development in order to make provision for maximum value creation throughout Johan Sverdrup’s producing life. “We’ve learnt, for example, that the total resource base and associated well requirements have not been identified early enough for an integrated long-term development of fields,” Moen observes. “I’m very satisfied that our contribution in such areas has been taken into account in the plan for development and operation of Johan Sverdrup.”
 The plan lays a good basis for reaching the partnership’s ambition of recovering 70 per cent of the resources in the field, she adds. “A number of good examples of measures to maximise recovery and long-term value creation can be seen here. These include a development solution based on one field centre, an integrated drilling rig with good capacity, water injection from the start, and space to install equipment for advanced methods of improved recovery in later phases.”
 In addition to the significant economic gain for Norwegian society, there will be climate benefit of operating Johan Sverdrup with power from shore, because this cuts emissions of carbon dioxide by some 80-90 per cent compared with the use of offshore gas turbines.
 "Today we are embarking on a new chapter in the Norwegian petroleum history, I look forward to Petoro being a contributor to the shaping of it", said Grethe Moen.
 For more information on the Johan Sverdrup development, see the operator’s website: .
Contact in Petoro
Sveinung Sletten
Head of communication
+47 950 75 554

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