Equinor to start Johan Sverdrup production ahead of schedule

Equinor and its partners are preparing for production start from the world class Johan Sverdrup field. Equinor and its partners Ineos E&P and Faroe Petroleum have made an oil. Equinor and its partners will disclose datasets from the Sleipner field. Equinor also presents updated operating costs and strong cash flow estimates. Company is launching a share buy-back programme of up to USD 5 billion. The Johan Sverdrup development continues to progress well through the final stages of preparation for operations.

Equinor last week announced the second class of global start-up companies. Tim Dodson, and YPF’s CEO Daniel Gonzalez have signed an agreement. The shares purchased by DNB on behalf of Equinor. Equinor and its partners Lundin Norway, Petoro, Aker BP. The Bureau of Ocean Energy Management has approved Equinor. Since the Plan for development and operation (PDO) for Phase 1 of the Johan Sverdrup project was submitted in 2015. Equinor reports adjusted earnings of USD 3.15 billion and USD 1.13 billion.

Anders Opedal, executive vice president for Technology says “Around this time last year, we accelerated the expected schedule for production”.

The project has seen both a significant cost reduction as well as an acceleration in the start-up schedule. The well had two different reservoir targets. Company believe it is possible to start production up to one month earlier. Three Norwegian companies participate in the programme. The preliminary agreement, which was signed at Equinor’s office in Oslo, Norway. The demonstrates the high quality of execution in the Johan Sverdrup development. Upper drilling target containing 2-12 million barrels of oil equivalent (boe) of gas.

This is to a large extent due to the close collaboration with company partners. The first tranche of the programme of around USD 1.5 billion. The current focus of the Johan Sverdrup project is on completing the testing of the equipment. It will enable both companies to expand their alliance and move forward with the exploration process. On 20 August 2019 been distributed to the employees in accordance with their savings amount. Equinor is committed to capital distribution to shareholders.

Systems needed for the full field centre, spanning four platforms and three interconnected bridges. It have over the last years built a strong financial position with solid credit ratings. It delighted with this opportunity to continue and expand close partnership. Assuming all testing can be completed without encountering any issues with critical equipment. Shell’s transaction announced in May 2019, whereby Equinor exercised its preferential right.

IFRS net operating income was USD 3.52 billion. Equinor and Barra Energia (“Barra”) have completed their transaction announced on 4 July 2018. Start-up of production should be ready to commence during the month of October. The ten start-up companies have been selected from hundreds of applicants across 42 countries. Currently the partners in two offshore blocks in the same area. Company acquire 22.45% interest in the Caesar Tonga oil field from Shell Offshore Inc.

Opedal says “Based on the remaining known scope of work, we are increasingly confident of starting production”.

At the same time, given the very size of the Johan Sverdrup development. A lower target with an estimated volume of 1-48 million barrels of recoverable oil equivalent. Through an intensive 13-week programme, it will seek to accelerate their solution. There will always be a risk that found in final testing phase come across unforeseen issues. The energy industry is changing fast and these companies are at the forefront of that change.

Ultimately it will only start producing when it is safe and prudent to do so. The upcoming start-up of the world-class Johan Sverdrup field, combined with several other new fields in production. The transaction demonstrates Equinor’s ambition to grow and strengthens the portfolio. This was of course what hoped for, and it isn’t given that find both oil and gas in the same well. After reaching plateau for the first phase of the Johan Sverdrup development, expected during the summer of 2020.

Equinor expects operating costs below USD 2 per barrel. The volumes are broadly estimated, and operational challenges prevented side-tracking. Company looking forward to collaborate closely with YPF on this new exploration opportunity. Equinor has a broad portfolio in the Gulf of Mexico, with active exploration activity. The project will produce and create substantial value for decades to come. The operator also expects cash flow from operations of around USD 50 per barrel in 2020.

The share buy-back programme of up to USD 5 billion, including shares to be redeemed from the Norwegian State. Equinor strengthens its position offshore Argentina. Equinor has extensive US onshore operations with a total equity production of nearly 300,000 boe/d. The Empire Wind project marks a milestone in the development of global offshore wind portfolio. Based on a real oil price of USD 70 per barrel, partly as a result of the phasing of tax payments in the ramp-up phase.

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