A Statoil led consortium won approval on Thursday from the Norwegian government to kick off the first phase of its development plan for the giant Johan Sverdrup field on the Norwegian continental shelf.
In addition, the associated plans for installation and operation for transportation pipelines and power supply from shore were approved.
The offshore Johan Sverdrup oil field will be developed in several phases.
Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates, a field center, wells, oil and gas export solutions and power from shore Norway’s Statoil said.
Daily production during Phase 1 is estimated to reach between 315,000 and 380,000 barrels of oil equivalent per day.
Full production is estimated at 550,000 to 650,000 barrels of oil equivalent per day, accounting for about 40 percent of total oil production from the Norwegian continental shelf.
First oil is planned for late 2019.
Johan Sverdrup is located on the Utsira High in the North Sea, 96 miles west of Stavanger in water depths of 360 to 393 feet.
Several of the contracts for the field’s first phase have already been awarded, including all four topside contracts, a riser platform and processing platform fabrication contract and a procurement and engineering contract for the riser and processing platforms.
“We are on schedule in the Johan Sverdrup development. The project activities will now be stepped up, and more contracts will be awarded in the autumn,” Statoil senior vice president for Johan Sverdrup Øivind Reinertsen said.
Last week, Statoil completed the installation of a 104 foot long, 32 foot high pre-drilling template at Johan Sverdrup.
The pre-drilling template contains eight well slots that allow production wells to be pre-drilled before the drilling platform is installed in 2018 and production starts at Johan Sverdrup in late 2019.
Statoil is operator with 40.0267 percent working interest. Lundin Norway has a 22.60 percent working interest, Petoro holds a 17.36 percent interest, Maersk Oil holds a 8.44 percent interest and Det norske oljeselskap holds a 11.5733 percent working interest.