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Johan Sverdrup Crude Oil of Norway: Its History, Production, and Operation

oil refinery plant at twilight morning

Johan Sverdrup Crude Oil of Norway: Its History, Production, and Operation

Norway is home to one of the most significant oil discoveries in the world. The Johan Sverdrup oilfield is located 140 Km west of the city of Stavanger and has an estimated recoverable resource between 4.8 and 6 billion barrels of oil. 

It is considered one of the three mega oil discoveries made in Norwegian waters since 2000, along with Statfjord and Skinnfjord. In this article, we take a closer look at Norway’s Johan Sverdrup Crude Oil field – its history, location, price, production, transportation, infrastructure, and companies that own it.

 

History of Johan Sverdrup Crude Oil

In 1965, Johan Sverdrup was discovered in the North Sea by Statoil. The discovery well was drilled about 500 miles off Norway’s North Cape coast. This offshore oil field is near the North Pole and is fed by Arctic Ocean water. 

It has an estimated reserve of around 50 billion barrels, which makes it one of the largest oil fields in the world. Oil from this field can be used for various purposes, including transportation fuel and energy sources. Since its discovery in 1965, Johan Sverdrup has been producing oil at a steady rate. In 2017, over 2 million barrels were produced each day from this offshore crude field.

The first exploration well was drilled in the late 1960s but was abandoned when the structure was not confirmed. Exploration resumed in the mid-1970s, and several discoveries were made in the Sverdrup area.

Production started in 2001, and the field is expected to produce for 50 years. Construction of the production facility began in 2003, but the final investment decision was made only in 2006, with the first oil expected in 2019.

The discovery of the Johan Sverdrup oilfield was announced in October 2011. Statoil, Equinor, and Petoro discovered the field as part of the exploration drilling in the Snorre Field.

The Snorre field is an area of ​​about 60 square kilometres that have been under exploration since 2008. The Snorre field is 120 kilometres north of the Johan Sverdrup oilfield. The two fields are believed to be connected by the Draugen field, which Equinor owns.

The estimated cost of exploration and production of the Johan Sverdrup oilfield is $29 billion. The area is expected to be put into production in 2025. The output in the Johan Sverdrup crude oil field is expected to reach a daily production level of 1.2 million barrels per day, making it one of the largest oil fields in the world.

 

Location of Johan Sverdrup Crude Oil

The Johan Sverdrup crude oil field is located 130 miles north of Stavanger in the Norwegian Sea.

 

Price of Johan Sverdrup Crude Oil

The daily price of Johan Sverdrup crude oil is assessed and published by price reporting agencies.

Differentials to North Sea Dated Brent are also published and assessed in the same way, with quality adjustments to Johan Sverdrup’s price.

Please get in touch to learn more about Johan Sverdrup’s price and its impacts on the Dated Brent basket, or how our clients optimise oil data feeds and reduce procurement costs.

 

Transportation of the Johan Sverdrup Crude Oil

The transportation of the crude oil from the Johan Sverdrup field to the nearby processing plant at Norne will be done through two subsea pipelines – a 5-kilometre-long subsea pipeline connecting the Johan Sverdrup field to the Norne processing plant and a 20-kilometre-long subsea pipeline connecting the Norne processing plant to the Sture terminal.

In addition, a shuttle tanker is used to transport crude oil from the Sture terminal to the market hub.

The Norpipe pipeline transports the crude oil from the field to the Teesside processing plant in England. ConocoPhillips, Petoro, and Statoil own the Norpipe pipeline. Phillips, ConocoPhillips, and Petro-Canada joint venture owns the processing plant. The crude oil is transported by tanker to the U.S. and Canada refineries.

 

Infrastructural Development for the Johan Sverdrup Crude Oil Field

Construction of the onshore facilities for the Johan Sverdrup oil field began in 2020. The Norne processing plant will produce around 6 million tonnes of ethane, propane, butane, and natural gas liquids yearly.

The ethane and propane will be transported to the Pohjan port through the Norne gas pipeline. The butane and lighter hydrocarbons will be transported to the Sture terminal through another pipeline.

The Norne onshore terminal will be connected to the Johan Sverdrup crude oil field through a 5-kilometre-long subsea pipeline. The South Sogn oil loading station will be constructed for loading the crude oil from the Johan Sverdrup field.

The North Sogn oil loading station will receive oil from the nearby Statfjord oil field.

 

Operators at Johan Sverdrup Oil Field

The companies operating in the Johan Sverdrup oil field are Equinor, Statoil, and Petoro. Equinor is the largest oil producer in Norway. It was formed in 2005 through the merger of Statoil and Hydro.

Statoil is the third largest oil producer in Norway. Norway’s national oil company is listed on the Oslo Stock Exchange. The Norwegian government owns Petoro. Johan Sverdrup is operated by the joint venture between Equinor (formerly Statoil) and ExxonMobil.

 

Conclusion

The Johan Sverdrup Crude Oil field is one of the most significant oil discoveries made in Norwegian waters since 2000 and is expected to produce for 50 years.

The crude oil from the field is transported by the Norpipe pipeline to the Teesside processing plant in England and is owned by the joint venture between Equinor (formerly Statoil) and ExxonMobil. There are no plans for an underwater infrastructure in the Johan Sverdrup Crude Oil field.

The estimated cost of exploration and production of the field is $29 billion, with reserves of between 4 and 6 billion barrels of crude oil, making Johan Sverdrup one of the most important crude oils in the world.

Thanvir

Thanvir has 20 years of experience with some of the largest energy and financial information providers. Founder and CEO of Phycomex, where he is trusted by commodity traders, financiers, consumers, and refiners to help optimise procurement.

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