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Equinor's Johan Sverdrup project starts production 2 months ahead of schedule

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Equinor's Johan Sverdrup project starts production 2 months ahead of schedule

Initially expected to begin operations in December, Equinor ASA and its partners started oil production at its Johan Sverdrup project more than two months ahead of schedule.

The Johan Sverdrup, which is the largest field development since the 1980s, has recoverable reserves of 2.7 billion barrels of oil equivalent and is expected to produce up to 660,000 barrels of oil per day, according to the company's Oct. 5 news release. In addition, the project also has low carbon dioxide emissions of less than 1 kilogram per barrel of oil due to its power coming from electricity from the shore.

"Johan Sverdrup is expected to generate income from production of more than NOK 1400 billion of which more than NOK 900 billion to the Norwegian state and society," Equinor President and CEO Eldar Sætre said.

Since the project's operation and development plan approval in August 2015, investment costs have been reduced by NOK 40 billion, amounting to NOK 83 billion. Meanwhile, the price for the full-field development is expected at less than $20/bbl, while operating costs are expected to equal below $2/bbl, after the first phase's plateau period around the summer of 2020.

The Johan Sverdrup field is being developed in two phases. Phase II of the development was approved by Norwegian authorities in May with production start-up expected in the fourth quarter of 2022.

Other partners in the Johan Sverdrup project include Lundin Norway AS with a 20% interest, Petoro AS with a 17.36% stake, Aker BP ASA with an 11.57% interest and Total SA, which holds an 8.44% stake.