The partners in the Johan Sverdrup development have received the final approval of the Plan for Development and Operation (PDO) for Phase 1 of Johan Sverdrup from the Norwegian Ministry of Petroleum and Energy (MPE).
“We are proud to be part of the Johan Sverdrup partnership and see this project as a strong contributor to our overall North Sea portfolio of operations and developments over the coming years. The project is the biggest planned investment in the entire North Sea basin over the coming decade, illustrating that the basin still holds significant potential,” says Jakob Thomasen, CEO of Maersk Oil.
“With more than 50 years’ experience in the North Sea, Maersk Oil has a strong pedigree participating in phased developments similar to the Johan Sverdrup project. By applying the right technologies and capabilities, this important project will provide a significant contribution to Norwegian society for decades,” says Neil Cummine, Managing Director of Maersk Oil Norway.
Phase 1 of the Johan Sverdrup development, with an estimated Capital Expenditure of NOK 117 billion, consists of four bridge-linked platforms and three subsea water injection templates, and has a production capacity of 315,000-380,000 barrels of oil equivalent per day. First oil is planned for late 2019 and the expected recoverable resources are projected to be between 1.4 – 2.4 billion barrels of oil equivalent.
By approving the Unit Operating Agreement (UOA), the Norwegian Ministry of Petroleum and Energy has ruled the apportionment of the Johan Sverdrup field between the partners. The apportionment in the approved UOA gives Maersk Oil 8.44%.
For the full field development, capital expenditure is estimated at approximately NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion barrels of oil equivalent and an expected plateau production of 550,000 to 650,000 barrels per day. The Maersk Oil share of the capital expenditure for phase 1 is USD 1.8 billion.
The Maersk Oil-operated Culzean project in the UK is expecting government approval in the second half of 2015. With capital investments in the North Sea exceeding USD 5 billion, Maersk Oil is cementing its aim to become a top 5 North Sea producer by first half of the next decade.
About Maersk Oil
Maersk Oil is an international oil and gas company with operated production of 550,000 barrels of oil equivalent per day. Our production comes from Denmark, the UK, Qatar, Kazakhstan, the US Gulf of Mexico, Algeria and Brazil. Exploration activities are on-going in Angola, Norway, Greenland, Kurdistan Region of Iraq and in the producing countries. Turning complex and challenging fields into commercial successes has been the cornerstone of Maersk Oil’s business since 1962. Maersk Oil focuses on pioneering technologies and harnessing talent to continue to operate safely and successfully, creating value for partners and host governments.
Maersk Oil is a fully-owned subsidiary of the global conglomerate, the Maersk Group.