Equinor and its partners have announced a Nkr13bn ($1.2bn) investment for the Johan Sverdrup Phase III project in the Norwegian North Sea, to enhance recovery by an estimated 40 to 50 million barrels of oil equivalent (mboe).
The company’s partners include Aker BP, Petoro, and TotalEnergies EP Norge.
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The Johan Sverdrup oil field covers 200km² and lies at depths of 110m to 120m. Currently, the field’s production capacity stands at 755,000 barrels per day (bpd), representing approximately one-third of Norway’s total oil output.
Production from the third phase is expected to begin in the fourth quarter of 2027.
The project’s development plan includes the installation of two new subsea templates, which will be integrated with the existing infrastructure through new pipelines.
The third phase of development is designed to enable future expansion by incorporating additional well slots and the potential for connecting more subsea templates.
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By GlobalDataAI played a pivotal role in optimising the field layouts and well paths, expediting decision-making processes and achieving cost savings of Nkr130m for this phase of the project.
TechnipFMC has secured the engineering, procurement, construction, and installation (EPCI) contract for the subsea development, valued at Nkr5.3bn.
Further contracts for platform modifications and drilling of eight wells are expected to be awarded later this year.
Equinor project development senior vice-president Trond Bokn said: “By building on the technologies, solutions, and infrastructure from phases I and II of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production.
“The project increases the recovery rate and value creation from Johan Sverdrup, one of the world’s most carbon-efficient oil and gas fields. At the same time, it contributes to stable energy supplies to Europe.”
The phase three development is a strategic move towards achieving an ambitious recovery rate of 75%, significantly higher than the Norwegian continental shelf’s average of 47%.
The Johan Sverdrup Phase III project is integral to Equinor’s plan of sustaining substantial oil and gas production on the Norwegian continental shelf until 2035. Several projects, including this phase, are slated for investment decisions this year to support this objective.
The partnership has formally notified the authorities in line with the existing plan for development and operation (PDO), awaiting governmental approval.
Johan Sverdrup vice-president Marianne Bjelland said: “In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field.
“Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase III is an important contribution to maintaining high production from Johan Sverdrup in the years to come.”
