Johan Sverdrup: The Final Lap of a True North Sea Giant

Abstract

The second phase of Johan Sverdrup came on stream in December 2022. This paper focuses on the execution of Johan Sverdrup phase 2 and describes the assessments and investments for improved oil recovery (IOR) from one of the largest oil fields in Norway. The Johan Sverdrup field development has been called Equinor's ‘digital flagship’, and this paper includes the proof of concept for the digital initiatives after more than three years of operation. Despite the Covid-19 pandemic Johan Sverdrup phase 2 has been able to deliver on schedule, under budget, and with an excellent safety record. The paper includes experiences from the concept development and engineering phase to the global contracting strategy, through the construction on multiple building sites in Norway and globally, and until the end of the completion phase offshore Norway. Johan Sverdrup is the third largest oil field on the Norwegian Continental Shelf (NCS), and with recoverable reserves estimated at 2.7 billion barrels of oil equivalents, has the resources to be a North Sea Giant. Start-up of the Johan Sverdrup phase 2 extends and accelerates oil and gas production from the NCS for another five decades. This paper aims to highlight what it took to make Johan Sverdrup a true North Sea Giant, fit for the 21st century: a safe and successful execution of a mega-project, with next-generation facilities adapted to a more digital way of working, with an ambition to profitably recover more than 70% of the resources, while limiting carbon emissions from production to a minimum. In many ways the Johan Sverdrup development has set a new standard for project execution in Equinor. The impact of different variables made during the execution of the project, such as the Covid-19 pandemic, market effects, procurement strategies, value improvement initiatives, execution performance and reservoir characteristics is addressed, as well as describing assessments and investments for improved oil recovery (IOR). Data acquisition, Permanent Reservoir Monitoring (PRM), fibre-optic monitoring of wells, innovative technologies, and digitalization, as well as new ways of working are included. Equinor´s digital strategy was established in 2017, and Johan Sverdrup was highlighted as a digital flagship at that time and a frontrunner in applying digital solutions to improve safety and efficiency from the development to the operational phase. What has been implemented so far together with experiences will be shared.