Equinor May Have to Shut Johan Sverdrup

If the ongoing strike on the Norwegian Continental Shelf (NCS) continues until October 14, the Johan Sverdrup field in the North Sea will have to close production until further notice.
That’s what the field’s operator, Equinor (NYSE: EQNR), said in a statement posted on its website. The warning comes after Equinor revealed earlier this week that it had conducted a “controlled closure” of the Gudrun, Gina Krog, Kvitebjorn and Valemon fields after the Lederne trade union stepped up its strike on the NCS. The strike escalation also saw Neptune’s Gjoa field shut down, as well as the associated Vega field, which is operated by Wintershall Dea Norway.
The Lederne union has already taken out 43 members at Johan Sverdrup, although production at the field has not been affected so far, Equinor highlighted.
“This situation would change if the strike continues into October 14,” Equinor stated.
“This is due to the scheduled rotation of personnel as there would not be sufficient capacity and competence in key operational functions at Johan Sverdrup,” Equinor added.
“We hope that in the intervening period there may be a settlement between The Norwegian Oil and Gas Association and the union,” the company continued.
The strike is said to be the result of a breach of mediation in the negotiations between employer organization Norwegian Oil and Gas Association and Lederne.
Johan Sverdrup, which came on stream in October 2019, is the third largest oil field on the NCS, with expected resources of 2.7 billion barrels of oil equivalent. Daily production at the field is approximately 470,000 barrels per day (bpd). This figure is expected to increase to 690,000 bpd at plateau.
Equinor holds a 42.6 percent operated interest in Johan Sverdrup, with Lundin Norway holding a 20 percent stake, Petoro holding a 17.36 percent stake, Aker BP holding an 11.5733 percent stake and Total holding the remaining 8.44 percent stake.
To contact the author, email andreas.exarheas@rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- FID For $13.2B Louisiana LNG Project
- African LNG Projects To Look Out For
- UK Slaps 25 Percent Windfall Tax on Oil and Gas Profits
- Equinor Submits Plan For Halten East Subsea Developments
- Most UKCS Operators Paying Invoices Promptly
- Bankrupt Sri Lanka Still Seeking More Oil and Fuel Imports
- EU Plan To Escape Russian Fossil Fuels May Fall Short Of Objectives
- Shell Completes Sale of Russian Assets to Lukoil
- Markets Remain Tight Nearly 3 Months into Ukraine War
- EU Forms Task Force To Support Departure From Russian Fossil Fuels
- ADNOC Announces 650MM Barrel Oil Find
- Finland Loses Main Gas Supply
- Oil Inventories Down to Dangerously Low Point
- USA Fuelmakers Shifting Into Higher Gear
- Brent-WTI Oil Price Spread Inverts
- ExxonMobil Selling Shale Assets for $750MM
- Shots Fired During Tanker Loading
- 6 Power Generating Facilities in Texas Just Tripped
- NPD Grants Slew of Drilling Permits
- BlackRock Told Texas It Will Still Invest In Oil And Gas
- Russian Oil Producers Start Using Tankers the World Did Not Want
- ADNOC Announces 650MM Barrel Oil Find
- Finland Loses Main Gas Supply
- This Is Where the Oil Price Would Be Without the War
- Ban on Excessive Gasoline Prices Heading for Vote
- Oil and Gas Discovery Confirmed at Hamlet
- Top Headlines: Be Prepared to Pay More at the Pump from June
- Oil Inventories Down to Dangerously Low Point
- Gas Prices Could Rocket in the Near Term
- Exxon Does It Again - Three More Discoveries Offshore Guyana