Crude production starts at Johan Sverdrup phase 2

Market: Crude oil, Natural gas
15/12/22

Norwegian state-controlled Equinor has started production from the second phase of its giant Johan Sverdrup field in the country's North Sea, as planned.

The entire field is now on stream, Equinor said today, reiterating that at plateau it will produce 720,000 b/d, with an aim to boost output to 755,000 b/d. The 440,000 b/d phase 1 came on stream in October 2019.

Johan Sverdrup has 2.7bn bl of oil equivalent (boe) in recoverable volumes, according to Equinor, which operates the field with a 42.6pc stake. Lundin Energy holds 20pc, state-owned Petoro 17.4pc, independent Aker BP 11.6pc and TotalEnergies has 8.4pc.

"Johan Sverdrup accounts for large and important energy deliveries, and in the current market situation, most of the volumes will go to Europe," said Equinor's executive vice president for projects, drilling and procurement Geir Tungesvik.

Freight programmes for December showed the start-up of Johan Sverdrup phase 2 boosting North Sea crude loadings to their highest in more than a year. Loadings from the field were scheduled up by 9pc on the month at 640,000 b/d.

Crude from Johan Sverdrup is transported by pipeline to Mongstad, and its gas goes to Norway's 97.6mn m³/d Karsto processing plant. The entire field development has a breakeven price of less than $15/bl, Equinor said.

The firm expects CO2 emissions of 0.67kg/bl throughout the life of the field, as five platforms receive power from shore. Equinor said this will help to reduce CO2 emissions by 1.2mn t/yr, which equates to 2.5pc of Norway's annual emissions. Electrification is an important measure to develop the Norwegian continental shelf (NCS) towards net zero greenhouse gas emissions by 2050, said Marianne M. Bjelland, Equinor's vice president, exploration and production for the Johan Sverdrup and Martin Linge areas.

By Caroline Varin

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