Statoil is cutting costs by more than US$1 billion (NOK 9 billion) for the first phase of its giant Johan Sverdrup development in the North Sea, partner Det Norske said.
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Illustration of Johan Sverdrup. From Statoil. |
An updated preliminary capex estimate shows a 7.3% decrease to $13.3 billion (NOK 114 billion), from nearly US$14.4 billion (NOK 123 billion) in nominal terms. The plan for development and operations was submittedto the Ministry of Petroleum and Energy on 13 February 2015 and was approved on 20 August.
The Johan Sverdrup field, located on the Utsira High about 155km west of Stavanger, and at 110-120m water depth, covers an area of approximately 200sq km, and the reservoir lies at around 1900m. It is one of the five biggest oilfields on the Norwegian continental shelf and has expected resources of between 1.7-3 billion boe. First oil is planned for late 2019.
Phase one of the multi-phase project includes four bridge-linked platforms, three subsea water injection templates, a field center, wells, oil and gas export solutions, and power from shore. The authorities also approved associated plans for the installation and operation for transportation pipelines and power supply from shore.
Daily production from phase one is estimated at 315,000-380,000 b/d. Full production is estimated at 550,000-650,000 boe/d, which will account for about 40% of total Norwegian Continental Shelf oil production. The ambition is a recovery rate of 70%, allowing for advanced technology for increased oil recovery (IOR) in future phases.
Statoil and its partners have awarded several million dollars worth of contracts for the development of Johan Sverdrup, of which the majority are suppliers in Norway.
Last week, FMC Technologies inked a $172 million engineering, procurement, and construction (EPC) contract that includes subsea trees, subsea wellheads, manifolds, and control systems integration. In addition, a frame agreement for add-on systems and a frame agreement for subsea service offerings have also been signed.
Also last week, IKM Ocean Design was awarded an EPC contract for the Johan Sverdrup gooseneck spool and retrofit hot-tap tee.
Earlier this month, the partnership awarded Kværner Verdal a contract for the delivery of the steel jacket for the drilling platform, marking the execution of the letter of intent singed by the two companies for the delivery of the two jackets.
ABB also bagged a $90 million contract to supply a two-cable high-voltage system to power, from shore, for the field.
The Johan Sverdrup field partners include Statoil 40.0267% (operator), Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.
Read more:
FMC awarded Johan Sverdrup subsea work
Kværner bags second Johan Sverdrup gig
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