The partners in the Johan Sverdrup development have Thursday 20 August received the final approval of the Plan for Development and Operation (PDO) for Phase 1 of Johan Sverdrup from the Norwegian Ministry of Petroleum and Energy (MPE).

Phase one of the multi-phase project consists of four bridge-linked platforms, three subsea water injection templates, a field center, wells, oil and gas export solutions, and power from shore. First oil on the field is planned for late 2019 and daily production during the first phase is estimated to be between 315,000 to 380,000 barrels.

Once in full swing, the field, the fifth largest ever discovered off the Norwegian coast, should account for as much as 25 percent of all Norwegian petroleum production.

The first phase of operations at the field will represent $15 billion in investments.

Contracts worth 40 billion kroner have already been awarded, the group said. “Focused efforts are now underway in the partnership to ensure that the opportunities and enormous values in the Johan Sverdrup field are captured”, says Arne Sigve Nylund, executive vice president for Development and Production Norway. Statoil estimates Johan Sverdrup should generate $200 billion in revenues over the next 50 years. “The project activities will now be stepped up, and more contracts will be awarded in the autumn”, Øivind Reinertsen, senior vice president for Johan Sverdrup said.

Last week, Heerema Marine Contractors’ crane vessel Thialf completed the installation of the 280-tonne pre-drilling template, which measures in at 32m-long and10m-high, in the North Sea.

The government, under pressure from rising unemployment in oil-related industries as many companies cut back on investments, has also been eager to get the project started.

Statoil holds 40.03 percent of the project, Swedish group Lundin 22.60 percent, Norwegian state-owned group Petoro 17.36 percent, private Norwegian group 11.57 percent and Denmark’s Maersk 8.44 percent.

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