Between 2016 to 2021, Europe and Russia’s oil production is predicted to have highest annual growth rate of any region across the globe. Besides Russia, Norway is one of the highest oil producing nations in Europe and is currently looking to expand more in the oil market.
The latest contribution to this trend came to light when Equinor ASA, a renowned multinational energy firm headquartered in Stavanger, Norway, reportedly announced that it started oil production at its Johan Sverdrup oil field in Norway in a partnership with Petoro, Total, Aker BP and Lundin Norway.
President and CEO of Equinor, Eldar Sætre stated that Johan Sverdrup going on stream is an significant occasion for the company, its partners as well as suppliers. This oil field would be accountable for production of approximately one third of the total oil manufacturing in Norway as well as deliver valuable barrels with record reduction in emissions.
Sætre added that Johan Sverdrup is predicted to make income from production of over NOK 1400 billion of which over NOK 900 billion to the Norwegian society and state.
The Johan Sverdrup site was discovered earlier in 2010, in a region that was disregarded by most of the explorers. The site began production on Saturday, projected to produce 440,000 barrels per day by next summer. This production would add 33 percent to Norway’s oil production in the first half of 2019, an output surge not witnessed after the 1980s.
The oil production site is the biggest discovery of Norway since 1970 as it has an oil reserve of approximately 3.2 billion barrels.
Executive Vice President for Technology, projects & drilling at Equinor, Anders Opedal stated that starting the oil production months ahead of the schedule helps the company realize extra value from the site and is perfect for a project which, over the phase of development, has reinvented excellence in the project execution.
Equinor hopes Sverdrup would generate about $100 billion over 50 years for Norway’s state coffers. This was also the perfect timing of oil field production for Norway: green-lighted earlier in 2015, very soon after the historic collapse of the crude market, it proved to be a boon to the embattled oil-service market, even if the slump forced suppliers to reduce prices.