Equinor and its partners have decided to invest $1.3 billion (13 billion Norwegian crowns) in the Phase 3 expansion of the Johan Sverdrup oilfield in the North Sea, Western Europe’s biggest oil-producing field.
The Phase 3 development plan includes two new subsea templates, which will be tied into existing infrastructure via new pipelines. The investment will increase recoverable volumes from the field by 40–50 million barrels of oil equivalent (boe), with production expected to start in late 2027, Equinor said on Tuesday.
Last year, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field, the Norwegian major said.
“Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come,” says Marianne Bjelland, vice president for Johan Sverdrup.
Johan Sverdrup began pumping crude in 2019. The peak production level is seen at 755,000 barrels daily, which is significantly higher than initial peak output expectations of 660,000 bpd. The peak output was hit for the first time in September 2024 when Johan Sverdrup produced 756,000 bpd. The field’s output alone accounts for a third of Norway’s total oil production.
Johan Sverdrup is estimated to have reserves of 2.7 billion barrels of oil equivalents, and the entire field is now in production. Phase One of Johan Sverdrup was put online in October 2019, and Phase Two came on stream in December 2022.
Thanks to high levels of electrification, Johan Sverdrup has some of the lowest CO2 emissions of any oilfield in the world, according to Equinor.
The Norwegian energy major aims to maintain a high level of oil and gas production on the shelf towards 2035. Johan Sverdrup Phase 3 is one of several projects receiving an investment decision this year that supports this ambition, Equinor said today.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- The Permian Basin is Fueling America’s Electric Future
- U.S. Sits on Billions of Untapped Oil Barrels
- UK Scraps $34 Billion Morocco-Linked Subsea Power Cable Megaproject
