Equinor : Increased value creation, more resources and greater ripple effects from Johan Sverdrup

'The continued high quality of project execution is a result of close cooperation with our suppliers and partners. Together, we have managed to reduce the estimated investments for Phase 1 by an additional NOK two billion,' says Øvrum.

The updated investment estimate for Phase 1 is now NOK 86 billion (nominal NOK, project exchange rate), a reduction of 30 per cent, amounting to NOK 37 billion since submission of the Phase 1 PDO.

'We have worked systematically to make the second phase of the Johan Sverdrup development even more profitable and robust. We have taken the good solutions and experience gained from Phase 1 and have optimised the development concept for Phase 2 in cooperation with our partners and suppliers. In the Phase 2 PDO, we have reduced the investment estimate to NOK 41 billion (nominal NOK, project exchange rate), and the break-even price for Phase 2 is now less than USD 25 per barrel. Throughout the entire history of this industry, I don't think we have ever seen a project that has been improved as much as Johan Sverdrup has over the last 3 years,' says Øvrum.

Production start-up for the Phase 2 development is planned for Q4 2022.

Digitalisation and technology increase the resource estimate for Johan Sverdrup

In connection with the development of Phase 2, Equinor and the Johan Sverdrup partnership have established a full field digitalisation and technology plan to further reinforce safety and efficiency in operations, increase value and reduce carbon emissions from the field.

A number of improved recovery technologies are included in the plan:

• Water alternating gas injection (WAG)
• PRM (permanent reservoir monitoring) for the full field
• Stepwise implementation of fibre optics in wells
• Step-by-step development of digital twinning
• Technologies for automatic drilling control on the drilling platform
• High-speed telemetry drill pipe
• Improvements in cement quality
• Virtual rate monitoring on subsea wells

'Johan Sverdrup will be best in class on digitalisation and new technology. Digitalisation will reinforce the effect of several improved recovery technologies. Together, this has allowed us to increase the resource estimate for Johan Sverdrup, while simultaneously raising the ambitions for the field's recovery rate to over 70 per cent. This will make Johan Sverdrup a world leader also in terms of the improved recovery,' says Øvrum.

In the Phase 2 PDO, the resource estimate for the entire Johan Sverdrup field is raised from 2.1-3.1 billion barrels of oil equivalent to 2.2-3.2 billion barrels, with an expected estimate of 2.7 billion barrels.

'The sheer size and the field life of more than 50 years make Johan Sverdrup an exciting place to develop the solutions of the future. We are now working to mature technology for automatic production optimisation, a number of new pipe and seabed technology solutions, and a gradual development of a digital twin of Johan Sverdrup that will give us the opportunity to model and visualise key parts of the field even before we start production for Phase 2 in 2022,' says Øvrum.

The media is invited to a press conference about Johan Sverdrup phase 2 at the ONS on Monday 27 August, 2018.

Participants: Eldar Sætre, CEO and Margareth Øvrum, Executive vice president for Technology, projects & drilling.
Time: 09.00 am
Place: ONS press centre, Hall 10
Media contact: Eskil Eriksen. [e-mail], [phone]

Submission of the PDO for Johan Sverdrup Phase 2 to the Minister of Petroleum and Energy, Terje Søviknes, will take place at Equinor's stand (Hall 8 stand 8000) at the ONS on Monday 27 August, 2018 at 10.00 am.