In addition, two plans for installation and operation (PIO) of transport pipelines and facilities for power from shore were given the green light.
“Approval of the PDO for Johan Sverdrup is an important milestone in Norwegian oil history,” says Grethe K Moen, chief executive of Petoro.
“This field will be highly significant for Norway as a nation. In the short term, development and construction of all the platforms will be important for the supplies industry.
“We’ll be paying close attention to this project, and making an active contribution to ensuring maximum value creation for the State’s Direct Financial Interest (SDFI).”
Operator Statoil is now working to implement the PDO, and the first component in the development – the predrilling template – was installed on the field last week. Construction has also started with the first platform jacket at Kværner Verdal.
This is the most extensive PDO which Petoro has been involved with. The Johan Sverdrup oil field will be developed in several phases, and the first of these comprises four platforms linked by bridges as well as three subsea templates for water injection.
The ambition is to achieve a recovery factor of 70 per cent, and account has been taken of installing advanced technology for improved recovery in later phases.
Production capacity in the first phase will be in the order of 315-380 000 barrels per day. This stage is scheduled to come on stream in late 2019.
The Johan Sverdrup partnership comprises Petoro, Lundin Norway, Det norske Oljeselskap, Maersk Oil and Statoil, with the last of these as operator for all development phases.
• Johan Sverdrup is located on the Utsira High in the North Sea, 155 kilometres west of Stavanger
• At a water depth of 110-120 m, the reservoir lies at approx. 1900 m depth covering an area of 200 km2
• The field will be developed in phases, the first phase including a field centre, wells, oil and gas export solutions, and power from shore
• Oil from the field will be piped to the Mongstad terminal in Hordaland
• The gas will be transported to Statpipe, and from there to the Kårstø processing plant in North Rogaland
• Daily production during Phase 1 is estimated at 315,000 – 380,000 barrels
• Full production is estimated at 550,000 – 650,000 barrels of oil equivalent per day, accounting for some 40% of total oil production from the Norwegian continental shelf
�� According to the impact assessment: total production revenues of NOK 1,350 billion over 50 years and corporation tax payable to the Norwegian state is estimated at NOK 670 billion
• The development of Phase one is estimated to generate some 51,000 man-years - 22,000 man-years of which are expected to be delivered by suppliers, and some 12,000 man-years by their sub-suppliers
• An average year is estimated to generate 2,700 man-years in the operating phase, and 3,400 man-years during full field development