Equinor and the Johan Sverdrup partnership consisting of Lundin Norway, Petoro, Aker BP and Total, said that they started production from the giant field in the North Sea, more than two months ahead of schedule.
Johan Sverdrup has expected recoverable reserves of 2.7 billion barrels of oil equivalent and the full field can produce up to 660,000 barrels of oil per day at peak.
“Johan Sverdrup coming on stream is a momentous occasion for Equinor, our partners and suppliers. At peak, this field will account for around one third of all oil production in Norway and deliver very valuable barrels with record low emissions. Johan Sverdrup is expected to generate income from production of more than NOK 1400 billion of which more than NOK 900 billion to the Norwegian state and society,” says Eldar Sætre, president and CEO of Equinor.
The break-even price for the full-field development is less than US$20 per barrel. After reaching plateau for the first phase, anticipated during the summer of 2020, expected operating costs are below US$2 per barrel.
"This is a milestone for Aker BP. The production from this giant oil field will be a major contributor to Aker BP’s production and earnings growth in the years to come," says Karl Johnny Hersvik, CEO of Aker BP.
“Starting production months ahead of schedule helps realize additional value from the field and is fitting for a project that over the development phase has redefined excellence in project execution,” says Anders Opedal, executive vice president for Technology, projects & drilling in Equinor.
The Plan for development and operation (PDO) for Johan Sverdrup phase 1 set an ambition for production start-up in late December 2019. Since the PDO was approved in August 2015, investment costs for the first phase of the development have been reduced by NOK 40 billion to now NOK 83 billion.
The Johan Sverdrup field is developed in two phases. Phase II of the development was approved by Norwegian authorities in May 2019 with production start-up expected in Q4 2022.