Equinor and its partners signed a letter of intent with Odfjell Drilling for the Deepsea Atlantic semisubmersible drilling rig to drill 12 wells during Phase 2 of Johan Sverdrup field development in the North Sea, following its Phase 1 work. Phase 2 drilling is scheduled to start at the beginning of 2022 with production expected in fourth-quarter 2022 (OGJ Online, Aug. 27, 2018).
The value of the fixed part of the agreement is estimated by Total at $150 million not including integrated services, maintenance, and options for drilling five extra wells.
Johan Sverdrup Phase 2 includes construction of a subsea production system, reconstruction of the existing riser platform and a new processing platform which will also accommodate a converter unit receiving power from shore. This unit will distribute power to other fields on the Utsira High: Edvard Grieg, Ivar Aasen, Gina Krog, and Sleipner (OGJ Online, June 9, 2020). The four existing platforms on Johan Sverdrup field are already receiving power from shore and CO2 emissions per barrel are 0.7 kg.
The Phase 2 development will increase field production capacity to 690,000 b/d from 470,000 b/d on plateau with a break-even price below $20/bbl, the company said.
Equinor is operator of the Johan Sverdrup license with 42.6267%. Partners are Lundin Energy Norway AS 20%, Petoro AS 17.36%, Aker BP ASA 11.5733%, and Total E&P Norge AS 8.44%.
Resource estimate for the field is estimated at 2.2-3.2 billion boe.
