Deepsea Atlantic drilling rig returning to Johan Sverdrup

July 7, 2020 10:12 CEST
Photo of the Deepsea Atlantic drilling rig
The Deepsea Atlantic drilling rig. (Photo: Marit Hommedal / Equinor ASA)

Equinor and its partners have signed a letter of intent with Odfjell Drilling for the Deepsea Atlantic rig to drill 12 wells during phase 2 of the Johan Sverdrup field development, following its work on phase 1.

The value of the fixed part of the agreement is estimated at around USD 150 million at the current USD exchange rate. The costs of integrated services, maintenance and options for drilling five extra wells are not included in the estimated value. The total contract value will depend on the efficiency of the well deliveries.

The Johan Sverdrup licence partners are Equinor (operator), Lundin, Petoro, Aker BP and Total.

“Johan Sverdrup phase 2 is the next stage in the development of the giant Johan Sverdrup field and a project that strongly impacts activities and spinoffs in Norway. With this contract, Norwegian suppliers have been awarded more than 90 per cent of the project contracts,” says Geir Tungesvik, Equinor’s senior vice president for project development.

Photo of Geir Tungesvik (left) and Erik G Kirkemo
Geir Tungesvik (left), Equinor’s senior vice president for project development, and Erik G. Kirkemo, Equinor’s senior vice president for drilling and well operations.

The drilling period is scheduled to start at the beginning of 2022.

“Deepsea Atlantic drilled the Johan Sverdrup phase 1 wells with excellent results, so we are pleased to secure the rig for phase 2 as well. The rig is already on a continuing contract with Equinor, and our ambition is to keep it busy until Johan Sverdrup phase 2 comes on stream at the end of 2022. Odfjell has a high safety standard and the rig is one of the most efficient rigs we have,” says Erik G. Kirkemo, Equinor’s senior vice president for drilling and well operations.

Johan Sverdrup phase 2 includes the construction of a subsea production system, reconstruction of the existing riser platform and a new processing platform, which will also accommodate a converter unit receiving power from shore. This unit will distribute power to other fields on the Utsira High: Edvard Grieg, Ivar Aasen, Gina Krog and Sleipner. The four existing platforms on the Johan Sverdrup field are already receiving power from shore and CO2 emissions per barrel are 0.7 kg.

The phase 2 development will increase the field production capacity from 470,000 to 690,000 barrels per day on plateau. The break-even price will be below USD 20 per barrel, making Johan Sverdrup a highly profitable field with a very low CO2 footprint.

Related pages and downloads

Johan Sverdrup phase 2

  • CAPEX estimate: NOK 41 billion (nominal terms based on fixed currency)
  • Production start expected Q4 2022

Full field (Phase 1 + Phase 2)

  • Includes both phase 1 and phase 2 of the Johan Sverdrup development
  • Resource estimate in the range of 2.2-3.2 billion barrels of oil equivalent
  • Licence owners:  Equinor Energy AS: 42.6267% (operator), Lundin Energy Norway AS: 20%, Petoro AS 17.36%, Aker BP ASA: 11.5733% and Total E&P Norge AS: 8.44%