The Johan Svedrup oil field is the largest production project in Norway since the 80s. At the same time, it is considered one of the most important industrial investments in Europe. It turns out that the resources of this field were underestimated, while the extraction costs were overestimated. This information was provided by Equinor during a press conference.
“Johan Svedrup” oil field – high profitability
During the conference, Equinor provided journalists with information about the second phase of the development of the “Johan Svedrup” oil field. It turns out that the costs will be much lower than originally expected. As a result, the profitability of the project after its launch will also increase. Moreover, this profitability will occur even if the price of a barrel on global markets drops to $20.
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Cheaper and more effective
Investment forecasts for the expansion of mining infrastructure are NOK 6 billion lower compared to February last year. Overall, the total investment costs have already been reduced by CZK 2015 billion since 80. According to the company's management board, it is planned that daily production will oscillate around 660 barrels of crude oil.
Impact on jobs
During the conference, Equinor representatives also informed about the impact of this investment on the development of the local labor market. The mining facility will be located approximately 140 km from Stavanger and this region will mainly benefit from the implementation of the project. During the first and second stages of construction, approximately 150 people will be employed. employees in 2015-2025. However, during the exploitation phase, approximately 3400 employees will work in the Johan Svedrup oil field annually.
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Lower greenhouse gas emissions
The investor also managed to reduce greenhouse gas emissions. Compared to preliminary estimates, it will be lower by 460. tons of carbon dioxide per year. This is the same as it emits 230 thousand. passenger cars per year. In the context of expected profits and benefits for the local labor market, it will not be a significant pollution. In this respect, it is a more environmentally friendly investment than other facilities of this type.
