21. March 2017

The Johan Sverdrup partnership has decided to proceed with (DG2) Phase 2 of the Johan Sverdrup development.

[Attachment] Phase 1 of Johan Sverdrup is under development, with first oil scheduled for late 2019. The partners will now proceed with maturing Phase 2 for the investment decision and submission of the plan for development and operation (PDO) in the second half of 2018. Phase 2 is scheduled to come on stream in 2022.

Phase 1 of the development establishes a field centre consisting of four platforms on the field. Phase 2 builds on this infrastructure, adding another processing platform to the field centre. Overall this will result in a processing capacity of 660 000 barrels of oil per day.

Capital expenditures for Phase 2 are now estimated at between NOK 40 - 55 billion (NOK billion nominal, fixed currency and excluding IOR), halving the estimate since the PDO was submitted for Phase 1 of Johan Sverdrup.

For further information and contract awards please refer to the Statoil press release dated 21 March 2017.

The Johan Sverdrup partnership:

  • Statoil (operator): 40.0267%
  • Lundin Norway: 22.6%
  • Petoro: 17.36%
  • Aker BP: 11.5733%
  • Maersk Oil: 8.44%

Johan Sverdrup Phase 1:

  • Includes the development of four platforms, three subsea installations for water injection, power from shore, export pipeline for oil (Mongstad) and gas (Kårstø).
  • Under development. Approx. 40 % of the development is completed.
  • More than NOK 60 billion worth of contracts awarded. More than 70 % of the suppliers with a Norwegian billing address.
  • CAPEX estimate: NOK 97 billion.
  • Break-even Phase 1: Below USD 20 per barrel.
  • Production start: late 2019.

Johan Sverdrup Phase 2:

  • Includes development of another processing platform for the field centre + the Avaldsnes, Kvitsøy and Geitungen satellite areas, in addition to power from shore to the Utsira High in 2022.
  • Made the DG2 decision to proceed with the development
  • Investment decision (DG3) and submission of the plan for development and operation: Second half of 2018.
  • Investment estimate: NOK 40 - 55 billion.
  • Break-even price: Below USD 30 per barrel.
  • Production start: 2022.

Full field (Phase 1 + Phase 2):

  • Includes both Phase 1 and Phase 2 of the Johan Sverdrup development.
  • Resource estimate: 2.0 - 3.0 billion barrels of oil equivalent.
  • Break-even price: Below USD 25 per barrel.

Det norske oljeselskap ASA published this content on 21 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 March 2017 07:41:11 UTC.

Original documenthttp://www.akerbp.com/en/proceeding-with-phase-2-of-the-johan-sverdrup-development/

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