Johan Sverdrup, Statoil’s one of the largest oil field, will provide 25 percent of Norwegian production by 2025, the global consulting company Wood Mackenzie said on Friday.
After Statoil and its partners reached a final investment decision for Johan Sverdrup oil field, Wood Mackenzie’s Malcolm Dickson said that, the world class field has proven immune to the cuts in capital spending, standing out in a barren year for project sanctions.
Statoil was working on this field for five years and the Norwegian company forecasts that the field has a capacity of 2.35 billion barrels. The field will cost $31 billion to develop and will produce 600,000 barrels of oil equivalent a day at its peak.
'Johan Sverdrup is unique in the global oil industry. Oil fields of this size are not found in benign regions in shallow water any more. The FID also runs against the trend of most pre-sanction projects being pushed back to drive down costs,' said Dickson.
'This reflects not only the scale but also the quality of the asset. The value proposition is world-class, and it is not only important for the partners and supply chain, but to the whole of Norway,' he added.
Wood Mackenzie reports that by 2020, the field will provide over 10 percent of Statoil’s global oil production and over 5 percent of oil and gas output.
According to analysts from Wood Mackenzie, this field is the largest project sanction globally this year and it will be producing more oil then the UK sector in 2025.
Statoil submitted the development plan for Johan Sverdrup, the largest oil discovery field on the Norwegian continental shelf, to the Minister for Petroleum and Energy of Norway on Friday.
By Murat Temizer
Anadolu Agency
murat.temizer@aa.com.tr