Equinorand its partners have made a final investment decision (FID) to launch the $1.29 billion Phase 3 development of the North Sea’s Johan Sverdrup oil field which accounts for nearly a third of Norway’s current oil production.
The investment announced 1 July in a news release will boost recovery by 40-50 million BOE at one of the world’s most carbon-efficient oil fields by installing
- Two new subsea templates in the Kvitsøy and Avaldsnes areas with six well slots each.
- Eight new wells (seven producers and one water injection) tied back to existing templates and pipelines to the Phase 2 platform for processing and export.
- Extra well slots, spare capacity in the control cable, and opportunities for connecting additional subsea templates to support future expansion.
Additional production is expected to flow in the fourth quarter 2027 at Johan Sverdrup which is powered by electricity from shore to keep CO₂ emissions at 0.67 kg/bbl of oil produced—approximately 5% of the global average.
In March, TechnipFMC won the $530 million contract for engineering, procurement, construction, and installation for subsea development. Equinor said it expects to award contracts to modify the platform and drill eight wells later in 2025.
The Norwegian major said it used artificial intelligence to analyze field layouts and well paths, thus cutting project costs by $12.9 million and fast tracking decision-making.
Located in the Utsira High area of the North Sea, 160 km west of Stavanger and in water depths of 110 to 120 m, Johan Sverdrup boasts a production capacity of 755,000 B/D about one-third of Norway’s current oil production, according to Equinor.
Increased recovery and production
Once onstream, Phase 3 is expected to boost Johan Sverdrup’s current 66% recovery rate to 75%. The average for the Norwegian Continental Shelf is 47%, Equinor reports.
Equinor aims to maintain a high level of oil and gas production on the Norwegian continental shelf towards 2035. Johan Sverdrup Phase 3 is one of several projects targeted for FID in 2025 that supports this ambition, Equinor said in its release.
Seeking government approval, the partnership has notified authorities in accordance with the existing plan for development and operation.
“By building on the technologies, solutions, and infrastructure from phases 1 and 2 of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production,” Trond Bokn, Equinor’s senior vice president for project development, said in statement.
Equinor holds a 42.62% operator interest in Johan Sverdrup; partners include Aker BP 31.57%, Petoro (17.36%), and TotalEnergies (8.44%).
Meanwhile in the Barents Sea
On 30 June, Equinor announced it had struck an estimated 9 to 15 million bbl of oil in exploration well 7220/7-CD-1H in the Drivis Tubåen structure, on the Johan Castberg field in the Barents Sea.
The field reached plateau on 17 June at 220,000 B/D, according to Equinor.
"The Johan Castberg volume base was originally estimated at 450–650 million barrels. Our clear ambition is to increase the reserves by another 250–550 million barrels,” Grete Birgitte Haaland, Equinor's senior vice president for Exploration & Production North said in a news release.
Haaland said the company plans to drill six wells for increased oil recovery while continuing to explore and “develop Isflak as a rapid field expansion with planned start-up in 2028."
The oil was proven in a new segment called the Tubåen formation 1,769 m below the seabed at 345 m water depth. Transocean’s Enabler semi-submersible right drilled the exploration extension from a production well, Equinor reported.
The licensees will now consider a tie back to Johan Castberg.
The Barents Sea is the least explored ocean area on the Norwegian continental shelf. Going forward, two rigs will drill both production wells and new exploration wells in the areas around Johan Castberg and Goliat. Equinor will drill one to two exploration wells annually around Johan Castberg, Equinor said.
