Johan Sverdrup is the third largest oil field on the Norwegian continental shelf, and a major supplier of energy to Europe. The entire field is now on stream, and accounts for roughly a third of Norway's oil production. It also has some of the lowest CO2 emissions of any oil field in the world.
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The Norwegian Minister of Petroleum and Energy, Terje Aasland, officially opened Johan Sverdrup Phase 2 on 13 February, on board the P2 platform.
“Johan Sverdrup is a major contributor to secure energy supplies to Europe,” he said. “With 90 percent Norwegian content, the project has helped secure many jobs nationwide, and the development has meant a lot to the supply industry in a difficult period,” he added.
The Johan Sverdrup phase 2 project consists of a new platform, five new subsea systems, 28 new wells, a new module for the existing riser platform, and facilities for power to the Utsira High. The project was delivered on time and on budget despite the corona epidemic.
Barrels per day, daily production at plateau
Up to 30% of total oil production from the Norwegian continental shelf at plateau
Emissions compared to a standard development employing gas turbines
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Our Johan Sverdrup field is a pioneer in the use of new digital technologies that help us increase safety, reduce costs, maximise returns and reduce emissions.
For example, there's Echo, our "digital twin" that lets workers explore every detail of the platforms in virtual reality using Microsoft 3D Hololens technology. Then there's our Digital Field Worker app that lets offshore workers activate work permits, check equipment, and read system manuals all without going back to their desks. And a host of other exciting solutions that increase efficiency and reduce downtime, enabling our employees to do their jobs more safely and sustainably. Welcome to the digital energy company of the future.
Some people are saying we should stop producing oil altogether, for the sake of the climate. But we believe that Johan Sverdrup demonstrates that quite the opposite is true. Here’s why.
Emissions per barrel produced, compared with world average
World average emissions per barrel produced
Emissions per barrel produced at Johan Sverdrup
Less than five percent. That’s how little CO2 the Johan Sverdrup field emits compared with the world average for oil production. Thanks to largely hydroelectric power from shore, we will avoid emissions of more than 620,000 tonnes of CO2 every single year, equivalent to emissions from more than 310,000 passenger cars.
On average, around the world, there are 15 kg of CO2 emissions for every barrel of oil produced. At the Johan Sverdrup field, emissions will be a record low of 0.67 kg — or 5 % of the world average — per barrel produced.
World energy demand continues to rise, and we will still have a significant need for oil and gas in the foreseeable future. But not all barrels are created equal — and it’s important that the oil which is produced, is produced as cleanly as possible. That’s why Johan Sverdrup is a prime example of how technological innovation can provide solutions, and why Norwegian oil and gas are important in a climate perspective.
In the second phase of the development, the Johan Sverdrup field will also supply land power to other fields on the Utsira High, including Edvard Grieg, Gina Krog and Ivar Aasen.
The world must fulfil the Paris Agreement — but we still need oil, to fill the gap left by rising energy demand and declining production. The Johan Sverdrup field will supply millions of people with the energy they need to live their lives, and in its estimated 50 year lifespan it will also generate significant financial income for Norway, thanks to the 78% marginal tax rate on the Norwegian oil industry.
Oil has widespread uses, not just as a fuel — but also for medicines, plastics, textiles, technological products, as well as in the iron, steel and cement industries.
The oil and gas industry creates positive economic ripple effects, not only for the many tens of thousands of people directly employed by the oil industry, but for all Norwegians, in the form of significant tax revenues for the state.
With the help of technology developed over five decades on the Norwegian continental shelf, Johan Sverdrup will have low emissions to sea and air and a high recovery rate. Furthermore, we’re aiming for a high recovery rate of more than 70 percent, meaning that we can contribute to securing growth, jobs and industrial development for decades to come.
in the development phase
to Norwegian suppliers
in the operational phase
The development and operation of Johan Sverdrup will provide revenue and employment to new generations of Norwegians for five decades to come.
But we’re not doing the job alone. We have a whole industry with us; our partners and suppliers’ experience, and the authorities’ ambitions for the Norwegian continental shelf — enabling us to create positive ripple effects for the entire country.
The Johan Sverdrup development can generate more than 150,000 person-years of employment during the construction phase of 2015-2025. In the first phase of the development, 70% of the contracts were awarded to suppliers in Norway. And in the operational phase, Johan Sverdrup may contribute to employment of more than 3,400 people each year — as well as generating income for the Norwegian state exceeding NOK 900 billion over the lifetime of the field.