Statoil and companions additional improve the worth of the Johan Sverdrup area on account of continued top quality in venture execution, good drilling effectivity and additional maturation of the useful resource base.

The Johan Sverdrup improvement is now almost 70% full, which is based on plan, and funding prices are persevering with its optimistic development.

Phase 1 of the venture is at the moment estimated at NOK 88 billion (capex numbers in nominal phrases primarily based on mounted foreign money), which quantities to a discount of NOK 35 billion or near 30% for the reason that plan for improvement and operation (PDO) was accredited in August 2015.

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Break-even is diminished to under $15/bbl for the primary part of the Johan Sverdrup venture.

“Johan Sverdrup is a world-class venture and continues to ship. There is top of the range in venture execution, the prices are lowering, and the useful resource estimate goes up. Johan Sverdrup is now much more strong and invaluable for each the companions and society. This is a results of good cooperation between Statoil, our companions and suppliers,” says Margareth Øvrum, govt V.P. for expertise, initiatives & drilling at Statoil.

“Johan Sverdrup can also be benefiting from the drilling and effectively enchancment program in Statoil. We’ve drilled extra wells than deliberate, a couple of yr forward of plan, which has contributed enormously to value reductions within the venture. The wells additionally make our manufacturing plans much more strong and have improved our data of the reservoir. Based on this, we at the moment are capable of improve the useful resource estimate for Johan Sverdrup additional,” continues Øvrum.

Since the PDO for the primary part was submitted the vary of the full-field useful resource estimate has improved from 1.7-Three.zero to now 2.1-Three.1 Bboe.

The Johan Sverdrup venture can be developed in a number of phases, and the PDO for part 2 can be submitted to Norwegian authorities within the second half of 2018. Further maturation has diminished the estimated funding prices for part 2 to under NOK 45 billion.

With this, the break-even for the full-field improvement of Johan Sverdrup has been improved to under $20/bbl.

“The standardization of kit packages, copying of fine options, and doing issues proper the primary time – in collaboration with our suppliers – has been important to the optimistic developments that we see within the first part of Johan Sverdrup. In part 2 we’re taking this one step additional, and we’re beginning to see the outcomes of this,” says Kjetel Digre, venture director for Johan Sverdrup in Statoil.

A extra streamlined operation and upkeep mannequin, mixed with elevated use of digital and automatic options, has additionally helped scale back estimated yearly working prices by almost NOK 1 billion or roughly 30% for the reason that PDO was accredited in August 2015.

“Johan Sverdrup and its 50-year lifespan is a novel alternative to assume massive and in a different way about new options. A whole lot of this – for instance sensors that measure the situation of vital tools, or fiberoptic reservoir monitoring – are applied sciences that we implement from day one. However, it’s also about equipping the sphere for doable future options that may additional strengthen security, effectivity and the worth of the sphere over time,” states Digre.

Source: www.worldoil.com

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