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Statoil: Johan Sverdrup To Cost Up To $20 Billion

|Includes:Statoil ASA (STO)

Statoil announced that the development cost of the Johan Sverdrup oil field will range between NOK 100-120 billion (US$16-20 billion).

Discovered in 2010, the field is estimated to contain between 1.8-2.9 Bbbl of oil. Statoil reported that the production from the field could peak to 550-650 Mbbl/d.

Source: Reuters

Statoil and the partners in the Johan Sverdrup field have also decided on a concept for the first development phase. The partners have agreed on a field centre consisting of four installations and power from shore.

Statoil's EVP Arne Sigve Nylund commented: "This is historic. We have not made a concept selection for a field of this size since the 1980s."

In January 2014, Norwegian Petroleum Directorate granted Statoil permit for the Johan Sverdrup appraisal well.

In December 2013, Statoil announced that the decision regarding concept selection for Johan Sverdrup will be made in early 2014.

Stocks: STO