Equinor To See Johan Sverdrup Oil Production Before Time
Zacks Investment Research | Sep 01, 2019 10:31PM ET
Johan Sverdrup, the Norwegian oil field operated by Equinor ASA (NYSE:EQNR) is expected to come online ahead of its scheduled time. The field production start-up is likely to commence operations in October, a month earlier than planned.
Johan Sverdrup, one of the largest discoveries on the Norwegian Continental Shelf (NCS) is estimated to have supplies attributed to 2.7 billion barrels of oil equivalent.
The giant oil field’s day-to-day production is likely to be 440,000 barrels of oil per day (bpd) whereas its peak output is projected to soar 660,000 bpd, accounting for 25% of Norway’s total petroleum production. Per a trading source, the first shipment for Sverdrup oil filed will comprise 11 cargoes in the starting month, resulting in average shipping of 226,000 barrels per day.
The first phase of the Norwegian project is on the verge of completion. In the process, Johan Sverdrup may generate average employment for 3,400 people annually. Further, the project is anticipated to earn NOK 900 billion for the state of Norway during the entire lifetime of the field. The endeavor is predicted to begin the second phase of its production in late 2022.
It is believed that the start-up of Johan Sverdrup’s first phase will help Equinor revive production from its Norwegian fields that have encountered a plunging output over the past year and half due to natural decline and technical issues.
In order to lower the emissions of climatic gases offshore by 80-90%, the field will be run by electrical power, created onshore.
Equinor holds a 42.6% stake in the Johan Sverdrup development while Swedish oil producer Lundin Petroleum AB (who discovered the field in 2010) owns 20%. The remaining interests are held by European supermajors TOTAL SA and BP plc (LON:BP).
Equinor ASA Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.