Johan Sverdrup oil field exploitation

Overview:

• The Johan Sverdrup oil field is one of the five largest oil fields on the Norwegian continental shelf, with an estimated 1.7-3 billion barrels of reserves.
• Production from the field is expected to begin in 2019.
• An agreement to unitize it was reached in August 2015, sharing the field between Statoil (40%), Lundin Petroleum (22.6%), Petoro (17.36%),  Det norske oljeselskap (11.57 %) and Maersk Oil (8.44%).
• The estimated cost of Phase 1 is between kr100 billion and kr120 billion, with the total cost of the development estimated to be between kr170 and kr220 billion.
• Once up to full production, it is estimated the field will produce from 550,000 to 650,000 barrels of oil equivalent a day, about 40% of oil production on the Norwegian continental shelf.
• The estimated total production revenue from the field over a 50-year period is thought to be somewhere in the region of kr1,350 billion.
• As part of the project, Lundin Petroleum has secured a $5 billion reserve-based loan facility.
• Selmer assisted Lundin Petroleum in negotiations for the distribution of the field.
• Thommessen (Rune Solberg) advised Petoro.

Jon Moore - Journalist - EMEA