STAVANGER, Norway – The Norwegian Ministry of Petroleum and Energy has approved the Phase one plan for development and operation (PDO) for the Johan Sverdrup oil and gas field in the central Norwegian North Sea.
It has also approved associated plans for installation and operation for transportation pipelines and the supply of power from the shore.
Øivind Reinertsen, Statoil’s senior vice president for Johan Sverdrup, said the pace of the project will now ramp up, with further contracts to be awarded during the fall.
To date Statoil and its partners have issued contracts with a total value of more than NOK 40 billion ($4.87 billion), 75% of which went to suppliers with Norwegian invoice addresses, Reinertsen added.
Phase one of the project calls for four bridge-linked platforms and three subsea water injection templates, with production capacity of 315-380,000 b/d after first oil in 2019.
The partners are targeting a long-term recovery rate of 70%, allowing for advances in technology for increased oil recovery in future phases.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap, and Maersk Oil.
Maersk Oil said it also expects UK government approval later this year for its three-platform Culzean project in the UK central North Sea.
The company said its current capital commitments in the North Sea of more than $5 billion should help it become one of the top five producers in the region by the first half of the next decade.