Friday, November 15, 2019

First Oil From Johan Sverdrup Reaches Mongstad

October 21, 2019

Johan Sverdrup field center (Photo: Espen Rønnevik/Øyvind Gravås, Equinor)

Oil from the giant Johan Sverdrup field in the Norwegian sector of the North Sea has arrived at the Mongstad plant north of Bergen.

“This is a great day for Equinor and the Johan Sverdrup partnership, consisting of Lundin Norway, Petoro, Aker BP and Total. 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,” said Irene Rummelhoff, executive vice president for Marketing, Midstream & Processing (MMP) in Equinor.

Apprentice Sander Kjeseth Rath (left), Rasmus F. Wille, vice president of the Mongstad plant, Irene Rummelhoff, executive vice president for Marketing, Midstream & Processing in Equinor, and Kjell-Børge Freiberg, minister of Petroleum and Energy, with a sample of oil from the Johan Sverdrup field. (Photo: Jannike Steindal Nordanger)

The largest development in Norway for three decades, the mega project started up in early October, more than two months ahead of original estimates. Oil is piped 283 kilometers from the Johan Sverdrup field to the Mongstad complex, where the oil is stored in caverns and prepared for shipping to markets all over the world.

The first cargo is expected to leave for customers in Asia this week, and contains one million barrels with a market value of around $60 million, or more than half a billion NOK at the current oil price. Future cargoes are expected to contain between 600,000 and 2 million barrels.

“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. Mongstad will play an important role in realizing this value. At the same time, Johan Sverdrup triggers high activity at the plant and new opportunities for the future,” Rummelhoff said.

As Johan Sverdrup receives power from shore, oil will be produced with record-low climate gas emissions of less than one kilogram of CO2 per barrel.

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% of the total oil from the Norwegian continental shelf. Johan Sverdrup will lead to higher activity and new opportunities for Mongstad, which is an important plant for the company, and will help strengthen the importance of Equinor’s onshore activities in Norway.

Mongstad refinery (Photographer: Helge Hansen, Equinor)

Many people at Mongstad have been involved in preparing the reception of oil from Johan Sverdrup, including Equinor employees and many suppliers.

“This is a big day for everyone who has worked for a long time on preparing Mongstad for oil from Johan Sverdrup. 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,” says Rasmus F. Wille, vice president for the Mongstad complex.

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