Giant Johan Sverdrup project 70% complete

Statoil announced on February 7, 2018, that the Johan Sverdrup Phase 1 development in the Norwegian North Sea is nearly 70% complete.

Phase 1 of the project is currently estimated at NOK 88 billion ($11.21 billion), which amounts to a reduction of NOK 35 billion or close to 30% since the plan for development and operation (PDO) was approved in August 2015. Break-even is reduced to below $15 per barrel for the 1st phase of the Johan Sverdrup project.

Since the PDO for the 1st phase was submitted the range of the full-field resource estimate has improved from 1.7-3.0 to now 2.1-3.1 billion barrels of oil equivalents.

The Johan Sverdrup project will be developed in several phases, and the PDO for phase 2 will be submitted to Norwegian authorities in the 2nd half of 2018. Further maturation has reduced the estimated investment costs for phase 2 to below NOK 45 billion.

With this, the break-even for the full-field development of Johan Sverdrup has been improved to below $20 per barrel.

A more streamlined operation and maintenance model, combined with increased use of digital and automated solutions, has also helped reduce estimated yearly operating costs by nearly NOK 1 billion or approximately 30% since the PDO was approved in August 2015.