Investment costs on the massive Johan Sverdrup development have been further reduced to US$11.64 billion, from $14.76 billion, when the plan for development and operation was submitted.
Break-even costs on the project have also fallen to below $20/bbl for Phase 1, below $30/bbl for Phase 2, and below $25/bbl for the full field development project.
The figures have been reported by operator Statoil at its capital markets day today.
Johan Sverdrup, 155km west of Stavanger, Norway, is one of the five biggest oil fields on the Norwegian Continental Shelf, with expected resources of 1.7-3 billion boe. The field was discovered in 2011.
The estimate for the full-field investment has been improved from $24.96 billion (NOK 208 billion) nominal in 2015 to a current estimate of $16.44-$18.24 billion (NOK 137-152 billion) nominal.
Since the PDO for the first phase development was submitted, the range of the operator’s full-field resource estimate has also improved from 1.7-3 billion boe to 2-3 billion boe.
Aker BP says the update does not result in a revision of Aker BP’s reserves estimate in Johan Sverdrup, at 300 MMboe (P50) in 2016.
Ocean Installer has recently completed the first permanent subsea installation at the Johan Sverdrup field, marking the kick-off of the Johan Sverdrup offshore work.
The offshore campaign took place late January, in line with project plans and schedule, and involved the installation of a subsea template for water injection.
The template weighed 290-ton and was installed using the construction support vessel Normand Vision.