• 50 mins Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 11 hours Conflicting News Spurs Doubt On Aramco IPO
  • 12 hours Exxon Starts Production At New Refinery In Texas
  • 13 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 1 day UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Statoil Cuts Sverdrup Oil Field Development Costs By $2.9B

offshore rig night

Norway’s Statoil (NYSE:STO) said on Monday that it had reduced its estimated development costs of the first phase of its giant Johan Sverdrup oil field in the North Sea by US$2.89 billion (24 billion Norwegian kroner) since the authorities approved its plan for development and operation (PDO) in August last year.

Statoil, which is operator of the Johan Sverdrup with a 40-percent interest, has also reduced the break-even to below US$25 per barrel for phase 1.

Johan Sverdrup will be developed in several stages and the estimate for the full-field investment has been reduced to US$16.86 billion-US$20.47 billion (140–170 billion Norwegian kroner) from a previous range of US$20.47 billion-US$26.49 billion (170-220 billion Norwegian kroner). Statoil attributed the reduced development costs mostly to optimization and simplification of the development concept for the next phases.

Optimization also encouraged the Norwegian company to raise current estimates for the phase 1 production capacity to 440,000 barrels of oil per day, from originally expected 315,000-380,000 bopd.

The partners in the project – Statoil, Lundin Norway, Petoro, Det norske oljeselskap, and Maersk Oil – agree on expanding production capacity with an extra processing platform, which will increase the capacity on the Johan Sverdrup full-field to 660,000 bopd, from previously expected 550,000–650,000 bopd.

Statoil has also lifted the lower end of the resource estimate range to 1.9-3.0 billion barrels of oil equivalents from 1.7-3.0 billion barrels of oil equivalents.

The higher reserves estimate and increased capacity expectation, along with lowered investment costs, has enabled Statoil to reduce the break-even for Johan Sverdrup’s full-field development to below US$30 per barrel. Full-field production is expected to begin in 2022.

Regarding investments not only the North Sea, Statoil agreed last month to buy a 66-percent stake in an offshore Petrobras field in the pre-salt layer in a deal worth US$2.5 billion. Most recently, the Norwegian group is said to be willing to expand its operations in Brazil by entering a second phase of exploration at the Peregrino offshore oilfield.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News