Equinor’s first cargo from Johan Sverdrup set for Asia trip

10/21/2019

OSLO - Oil from the giant Johan Sverdrup field in 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,” says Irene Rummelhoff, executive vice president for Marketing, Midstream & Processing (MMP) in Equinor.

Oil is piped from the North Sea Johan Sverdrup field, a distance of 283 kilometers. At the Mongstad complex 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 1 MMbbl of crude with a market value of around $60 million. Future cargoes are expected to contain between 600,000 and 2 MMbbl.

 “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,” says Rummelhoff.

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

The Mongstad plant is expected to receive up to 440,000 boepd 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 boepd.

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.

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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