The first oil pumped from the giant Johan Sverdrup field in the North Sea has reached Mongstad, Norway where it will be prepared for shipping to markets around the world.
The first cargo of around one million barrels is expected to leave for customers in Asia this week. The cargo has market value of around USD 60 million, or more than half a billion NOK at the current oil price, according to Equinor.
Future cargoes are expected to contain between 600,000 and 2 million barrels.
“This is a great day for Equinor and the Johan Sverdrup partnership, consisting of Lundin Norway, Petoro, Aker BP and Total,” said Irene Rummelhoff, executive vice president for Marketing, Midstream & Processing at Equinor.”First oil to Mongstad only a few days after production start confirms that the field is producing well. This day also marks the start of a new phase as we prepare to bring Johan Sverdrup oil to the international market.”
Sanctioned in 2015, Johan Sverdrup is the largest development on the Norwegian Continental Shelf in three decades. At peak production, Johan Sverdrup will produce up to 660,000 barrels of oil per day.
Equinor brought the first phase of the field development on stream earlier this month.
Oi from the Johan Sverdrup field is piped over a distance of about 175 miles to the Mongstad complex, just north of Bergen, where it is stored in caverns and prepared for shipping.
“Oil from Johan Sverdrup is expected to provide revenue of more than NOK 1400 billion for the next 50 years, of which more than NOK 900 billion will go to the Norwegian state and society,” says Rummelhoff. “Mongstad will play an important role in realising this value. At the same time, Johan Sverdrup triggers high activity at the plant and new opportunities for the future.”
The Mongstad plant is expected to receive up to 440,000 barrels of oil per day from Johan Sverdrup when the first development phase reaches peak production. When the second phase is completed in 2022, Mongstad will receive up to 660,000 barrels of oil per day.
When Johan Sverdrup is operating at full capacity, Mongstad will receive more than 30 percent of the total oil from the Norwegian continental shelf.
“This is a big day for everyone who has worked for a long time on preparing Mongstad for oil from Johan Sverdrup,” commented Rasmus F. Wille, vice president for the Mongstad complex. “It has been a major effort involving plant modifications and completion of pipes. The work has been carried out properly and efficiently. As head of Mongstad I am proud of the great effort leading up to this day.”