Oct 24 | 2019
New Norwegian Continental Shelf Production Begins
New output from the third-largest oilfield in the Norwegian continental shelf is set to be a “game-changer” for the sector, according to data specialist Refinitiv.
The Johan Sverdrup oilfield started production on Oct. 5, and is expected to account for more than 30 percent of Norwegian oil production once it reaches peak output.
“This is a game-changer for the North Sea and the global oil market. The expected yield is likely to be popular with complex refiners and has already attracted avid interest from Asian buyers especially from China and India,” said Ehsan Ul-Haq, Lead Oil Research Analyst at Refinitiv.
1.9 Million Bpd
As the field ramps up production it is expected to drive new breakbulk activity in the region with new platforms and infrastructure comes on-stream.
“This is a great day for Equinor and the Johan Sverdrup partnership, consisting of Lundin Norway, Petoro, Aker BP and Total. First oil to Mongstad only a few days after production start confirms that the field is producing well. This day also marks the start of a new phase as we prepare to bring Johan Sverdrup oil to the international market,” said Irene Rummelhoff, executive vice president at Equinor.
Output is expected to be up to 1.9 million barrels per day, as compared with net UK production of around 1.20 million and about 700,000 for the rest of Europe. Johan Sverdrup is expected to be popular with complex refiners, although it could also be blended with some sweeter crudes to produce IMO 2020 compliant bunker fuel.
Record-low Emissions
The new output is forecast to produce oil with “record-low climate gas emissions,” predicted to be less than one kilogram of CO2 per barrel, according to Equinor.
Powered from onshore plants, the platforms in the Johan Sverdrup field, pump oil a distance of 283 kilometers to the Mongstad complex, where it is stored in preparation for shipping to global markets.
Once the first development phase reaches peak production, the Mongstad plant is expected to receive up to 440,000 barrels of oil per day, increasing to 660,000 barrels of oil per day when the second phase is completed in 2022.
The Johan Sverdrup oilfield started production on Oct. 5, and is expected to account for more than 30 percent of Norwegian oil production once it reaches peak output.
“This is a game-changer for the North Sea and the global oil market. The expected yield is likely to be popular with complex refiners and has already attracted avid interest from Asian buyers especially from China and India,” said Ehsan Ul-Haq, Lead Oil Research Analyst at Refinitiv.
1.9 Million Bpd
As the field ramps up production it is expected to drive new breakbulk activity in the region with new platforms and infrastructure comes on-stream.
“This is a great day for Equinor and the Johan Sverdrup partnership, consisting of Lundin Norway, Petoro, Aker BP and Total. First oil to Mongstad only a few days after production start confirms that the field is producing well. This day also marks the start of a new phase as we prepare to bring Johan Sverdrup oil to the international market,” said Irene Rummelhoff, executive vice president at Equinor.
Output is expected to be up to 1.9 million barrels per day, as compared with net UK production of around 1.20 million and about 700,000 for the rest of Europe. Johan Sverdrup is expected to be popular with complex refiners, although it could also be blended with some sweeter crudes to produce IMO 2020 compliant bunker fuel.
Record-low Emissions
The new output is forecast to produce oil with “record-low climate gas emissions,” predicted to be less than one kilogram of CO2 per barrel, according to Equinor.
Powered from onshore plants, the platforms in the Johan Sverdrup field, pump oil a distance of 283 kilometers to the Mongstad complex, where it is stored in preparation for shipping to global markets.
Once the first development phase reaches peak production, the Mongstad plant is expected to receive up to 440,000 barrels of oil per day, increasing to 660,000 barrels of oil per day when the second phase is completed in 2022.
