Statoil Cuts CAPEX for Johan Sverdrup Development
Capital spending on the first phase of the Johan Sverdrup field development will be less than previously expected after its operator, Statoil, presented a preliminary capital expenditures (CAPEX) estimate the Johan Sverdrup partners, Det norske oljeselskap reported Friday.
The latest CAPEX estimate for the first phase has been reduced by NOK 9 billion to NOK 123 billion in nominal terms. The original plan for development and operations (PDO) submitted to the Ministry of Petroleum and Energy in February 13, 2015 was for NOK 123 billion.
Statoil has been mindful of the need to keep costs down at Johan Sverdrup and these have been significant factors in the company's awards to companies from Aker Solution to FMC Technologies for work on the field development. Earlier this month, FMC announced that it had won a $172 million contract with Statoil for subsea trees, subsea wellheads, manifolds and control systems integration at Johan Sverdrup.
The first phase of Johan Sverdrup field development was approved by Norway's Ministry of Petroleum and Energy on August 20. Phase one will consist of four bridge-linked platforms in addition to three subsea water-injection templates. First oil from the field is planned for late 2019 and average production during the first phase is expected to be between 315,000 and 380,000 barrels per day.
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