The drilling period is scheduled to start at the beginning of 2022. The value of the fixed part of the agreement is estimated at around US$150 million. The costs of integrated services, maintenance and options for drilling five extra wells are not included in the estimated value.
Johan Sverdrup phase 2 includes the 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. The four existing platforms on the Johan Sverdrup field are already receiving power from shore and CO2 emissions per barrel are 0.7 kg.
The phase 2 development will increase the field production capacity from 470 000 to 690 000 bpd on plateau. The break-even price will be below US$20/bbl, making Johan Sverdrup a highly profitable field with a very low CO2 footprint.
“Johan Sverdrup phase 2 is the next stage in the development of the giant Johan Sverdrup field and a project that strongly impacts activities and spinoffs in Norway. With this contract, Norwegian suppliers have been awarded more than 90% of the project contracts,” said Geir Tungesvik, Equinor’s senior vice president for project development.
“Deepsea Atlantic drilled the Johan Sverdrup phase 1 wells with excellent results, so we are pleased to secure the rig for phase 2 as well. The rig is already on a continuing contract with Equinor, and our ambition is to keep it busy until Johan Sverdrup phase 2 comes on stream at the end of 2022. Odfjell has a high safety standard and the rig is one of the most efficient rigs we have,” said Erik G. Kirkemo, Equinor’s senior vice president for drilling and well operations.
The Johan Sverdrup licence partners are Equinor (operator), Lundin, Petoro, Aker BP and Total.
Image of Deepsea Atlantic drilling rig courtesy of Equinor.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07072020/deepsea-atlantic-rig-to-drill-12-wells-at-johan-sverdrup/