Aker BP said on Tuesday that development costs for the first phase of the Johan Sverdrup field have fallen by just over 20 percent.
The company said that costs for the first development phase at Johan Sverdrup are now estimated at $11.67 billion (NOK 97 billion).
That estimated figure is down from the $14.80 billion that was included in the field’s Plan for Development and Operation (PDO).
Johan Sverdrup is operated by Norway’s Statoil and is the one of the five largest oil fields on the Norwegian Continental Shelf.
According to Statoil, production from the field will account for 25 percent of all Norwegian petroleum production when production hits its peak.
Daily production during the field’s first phase is estimated at 440,000 bpd with peak production estimated to reach 660,000 bpd.
The field is located on the Utsira Height in the North Sea, about 100 miles west of Stavanger.
“The investment costs on the Johan Sverdrup development continues to show a positive trend,” Aker BP said.
Aker BP said the current break-even for the field is now below $20 per barrel for Phase 1, below $30 per barrel for Phase 2 and below $25 per barrel for the full field development project.
The nominal estimated costs for the full-field investment has been reduced from $25.02 billion (NOK 208 billion) in 2015 to a current estimate of between $16.48 billion to $18.28 billion (NOK 137-152 billion).
Since the PDO for the first phase was submitted, the range of the full-field resource estimate has been boosted from 1.7 to 3.0 to between 2.0 to 3.0 billion barrels of oil equivalents.
Aker BP said the update will not result in a revisions of its Johan Sverdrup reserves.
The company said its P50 reserves from Johan Sverdrup were estimated at 300 million barrels of oil equivalents in 2016.