SHARE
Image courtesy of Ole Jørgen Bratland/- Statoil ASA.

Sweden-based Lundin Petroleum saw its stake in the giant Johan Sverdrup project tick up to 22.6 percent on Thursday after the Norwegian Ministry of Petroleum and Energy determined the allocation of resources for the $29 billion project.

The Johan Sverdrup partners submitted their plan of development and operation for phase 1 at the North Sea license to the ministry in February and asked the ministry to determine the final allocation of resources.

Ludin will now hold a 22.6 percent unitised interest in the project, up from the 22.12 percent interest initially included in the development plan.

Norway’s Statoil will operate the project with a a 40.0267 percent unitised interest.

Denmark-based Maersk Oil will hold an 8.44 percent, Norway’s Petoro will hold a 17.36 percent stake and Det norske oljeselskap holds a 11.5733 percent stake.

Earlier this week, Statoil awarded the final platform deck contract for the project to South Korea-based Samsung in a deal worth about $890 million

Norway’s Statoil gave the go ahead in earlier this year to develop the giant Johan Sverdrup field despite disagreements over ownership stakes with fellow Norwegian upstream Det norske.

Production at the field is expected to start by 2019 and has a projected break even point of under $40 per barrel.

Johan Sverdrup is expected to produce up to 3 billion barrels of oil equivalents over 50 years.

Operating costs are projected to be under $5 per barrel once the project gets off the ground.