Statoil and its partners have awarded FEED contracts to Aker Solutions, Kværner and Siemens for the Phase 2 development of Johan Sverdrup field in the North Sea.

Currently, Phase 1 of Johan Sverdrup is under development and expected to deliver the first oil in late-2019.

Johan Sverdrup partners have opted to advance with Phase 2 of the project to take the investment decision and submit the plan for development and operation (PDO) scheduled in the second half of next year. Phase 2 is expected to come on-stream in 2022.

Statoil’s project director for Johan Sverdrup Kjetel Digre said: “We must take a generational perspective on the Johan Sverdrup development.

“Working closely with partners and government authorities, we now have a plan for Phase 2 that maximizes value for society, industry and the licensees.”

Statoil has implemented multiple programmes for development of Johan Sverdrup phase 2.

Capital expenditure for development of phase 2 is estimated to be Nkr40bn-Nkr55bn ($4.71bn-$6.48bn).

Digre said: “The quality of Phase 1 and the improvement work we have performed with our partners and suppliers for Phase 2 has enhanced profitability.

“The break-even price for the full-field development is now less than $25 per barrel and with an ambition of a world-class recovery rate of 70%.”

The partnership of the field has decided to establish a field centre of four platforms in the first phase under the agreed development concept. In the second phase, another processing platform will be added to the field centre. This will enable processing of 660,000bpd of oil.

"The break-even price for the full-field development is now less than $25 per barrel and with an ambition of a world-class recovery rate of 70%."

Under the awarded contracts, Aker Solutions will develop processing platform while Kværner received the contract for Jacket. Siemens will provide power to the field.

Phase 2 also includes development of the satellite areas that comprise Avaldsnes (east), Kvitsøy (south) and Geitungen (north).

In the Phase 2 development, 28 new wells have been planned to be drilled.

Planning of the Phase 2 concurrently with the development of Phase 1 will ensure a consistent full-field solution for the partners.

Johan Sverdrup is estimated to have a field-life of 50 years.

Image: Johan Sverdrup field illustration. Photo: courtesy of Statoil.