Development concept decided for the Johan Sverdrup field

The partners in the Johan Sverdrup field have decided a development concept for Phase 1. The giant field will start producing in 2019, and is one of the largest fields ever on the Norwegian shelf. The anticipated life of the field is 50 years.

Øyvind Bratsberg, Chief Operating Officer of Det norske, says that the concept selected for the development of the Johan Sverdrup field is good and robust.

- This is a unique field and one that will create significant value for society. Field production will represent approximately a quarter of all Norwegian oil production once it has reached plateau production. We are proud to participate in this development.

The resource estimate for the Johan Sverdrup field is between 1.8 to 2.9 billion barrels of oil. The field will be developed in several phases. The first phase is forecast to have a production capacity of between 315,000 and 380,000 barrels of oil equivalents per day. Pre-drilling of wells will contribute to a rapid production ramp-up. More than 70 per cent of the total resources in the field can be produced with the facilities installed in the first phase.

All included
Investment in the first phase is estimated at between NOK 100 and 120 billion. This includes the entire field centre, wells, export of oil and gas, and power supply. The estimate also includes contingencies and allowances for market adjustments. In addition, the first phase will facilitate capacity for enhanced oil recovery measures, says Øyvind Bratsberg.

– Det norske is of the opinion that it is possible to increase the recovery factor significantly; up to 70 per cent.

The partnership works continuously to lower the level of investment in the first phase.

Large capacity
The field centre in the first phase will consist of a processing platform, drilling platform, riser platform, and living quarters, and has been designed so as to facilitate capacity for future development. The platforms are installed on steel jackets linked by bridges. They will be installed at a water depth of approximately 120 metres. The field centre in the first phase is robust and flexible. Future development phases shall ensure good utilisation of the areas that constitute the Johan Sverdrup field. For future phases, a number of concept selection decisions will be made before the final field development concept is in place. Fully developed, the field is anticipated to reach a plateau production of 550,000 to 650,000 barrels of oil equivalents from the entire field. From both a technical and an economic perspective, the expected life of the Johan Sverdrup field is approximately 50 years. 

New infrastructure
The export solution for oil and gas from the Johan Sverdrup field is transportation to shore via dedicated pipelines. The oil will be transported to the Mongstad terminal in the county of Hordaland. The gas will be transported via the Statpipe system to Kårstø in the county of Rogaland for processing and onward transportation. Johan Sverdrup Phase 1 will be supplied with power from shore, with a converter at Kårstø supplying direct current to a converter on the riser platform, ensuring a 80 megawatt supply to the field centre.

The partnership
The Johan Sverdrup field consists of three production licences. Det norske has a 20 per cent interest in PL 265 and a 22.22 per cent interest in PL 502. Partners in PL 265 are Statoil 40 per cent (operator), Petoro 30 per cent, and Lundin Norway with a 10 per cent interest. PL 502 partners are Statoil, with a 44.44 per cent interest (operator), and Petoro with a 33.33 per cent interest. Lundin Norway has a 40 per cent interest in PL 501 (operator), Statoil has a 40 per cent interest, and Maersk Oil holds a 20 per cent interest. 

Contact:
Knut Evensen, VP Investor Relations, tel.: + 47 950 77 622. 

About Det norske:
Det norske oljeselskap ASA (DETNOR) is an active exploration company on the Norwegian Continental Shelf. Det norske’s headquarters is in Trondheim. The company also has offices in Oslo and Harstad. Det norske is listed on the Oslo Stock Exchange with the ticker "DETNOR".

More about Det norske at www.detnor.no/en