Statoil ASA (NYSE: STO) and its partners submitted the plan for development and operation (PDO) of the Johan Sverdrup Field to the Norwegian Ministry of Petroleum and Energy, the company said Feb. 13.
The PDO was given to Tord Lien, Norwegian petroleum and energy minister, by CEO Eldar Sætre, Statoil added.
Johan Sverdrup’s development will be in several phases, and Phase One consists of four bridge-linked platforms and three subsea water injection templates. The desired recovery rate is 70%. Phase One development’s production capacity will range between 315,000 bbl/d and 380,000 bbl/d.
The capex for Phase One are estimated at NOK [kroner] 117 billion. Full field development capex are estimated at roughly 220 billion kroner.
Expected recoverable resources for Phase One might range between 1.4 Bboe and 2.4 Bboe. Full field development’s expected recoverable resources might range between 1.7 Bboe and 3 Bboe.
First oil is planned for late 2019, Stavanger, Norway-based Statoil said.
The partnership is between Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. Statoil is the operator.
The majority of the partnership asked the Norwegian Ministry of Petroleum and Energy to determine the final allocation of resources in Johan Sverdrup. The majority proposed an allocation of:
- Statoil- 40.0267%
- Lundin Norway- 22.12%
- Petoro- 17.84%
- Det norske oljeselskap- 11.8933% and
- Maersk Oil 8.12%.
"This is a great day. We are delivering the PDO for the largest oil discovery on the Norwegian Continental Shelf since the 1980s. Johan Sverdrup will generate value of great importance to Norway through several decades. The field’s economy is robust also at current oil prices," said Sætre.
Statoil also will submit two plans for installation and operation for pipeline transportation and the development of power from shore solution.
Recommended Reading
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Beth McDonald Appointed SM Energy COO
2024-09-09 - Beth McDonald joins SM Energy as its new executive vice president and COO, bringing with her about 20 years of experience as an executive at Pioneer Natural Resources.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.