Statoil Says Sverdrup Field Output May Reach 650,000 Barrels Day

Statoil ASA (STL) will develop the Johan Sverdrup field with four offshore installations initially and power it from shore, as output at Norway’s biggest find in decades may peak at as much as 650,000 barrels a day.

Investments in the first phase are estimated at 100 billion kroner ($16.4 billion) to 120 billion kroner, including the field center, wells, export solutions for oil and gas and power supply, the Stavanger-based company said today in a statement. That includes “contingencies and provisions for market adjustments” as well as measures for improved recovery, Statoil said.

The field is expected to reach an initial output of 315,000 to 380,000 barrels of oil equivalent a day and peak at between 550,000 to 650,000 barrels a day, the company said. It’s expected to be in production for 50 years. Powering from land will reduce carbon emissions from the Utsira High area by 60 percent to 70 percent, the company said.

“This is historic,” said Arne Sigve Nylund, executive vice president for development and production in Norway, in the statement. “We have not made a concept selection for a field this size since the 1980s.”

Discovered in two parts by Lundin Petroleum AB (LUPE) in 2010 and Statoil in 2011, Sverdrup renewed optimism in Norway’s oil industry after a decade of falling output from aging North Sea fields. The oil discovery could supply as much as 25 percent of Norway’s oil production 10 years from now.

Statoil estimated in December that Sverdrup holds as much as 2.9 billion barrels of oil equivalent even as it cut its resource estimate and delayed the start of output by a year. The recovery rate is seen at 70 percent, the company said today.

Other partners in the field include Det Norske Oljeselskap ASA (DETNOR), A.P. Moeller-Maersk A/S’s Maersk Oil and Petoro AS.

To contact the reporter on this story: Mikael Holter in Oslo at mholter2@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.