Johan Sverdrup delays hurt, Norway says

OSLO, Norway, May 27 (UPI) -- Delays in planning for the Johan Sverdrup field off the coast of Norway left the country short of its 10-year reserve growth objectives, the government said.

The Norwegian Petroleum Directorate, the nation's energy regulator, reviewed the resource base on the continental shelf from 2005-14. By 2015, NPD set a goal of adding 5 billion barrels of oil to national reserves, but final figures were "somewhat less" than envisioned.

There were 13 new fields brought online after 2004. Had plans for Johan Sverdrup been submitted before the end of the reporting period, the regulator said the goal would've been reached "with flying colors."

Development plans for Johan Sverdrup were submitted to Norwegian Petroleum Minister Tord Lien and the NPD in February. The field is the fifth largest discovery ever made on the Norwegian continental shelf, described by the regulator as "gigantic."

Peak production is expected to be as high as 650,000 barrels of oil equivalent per day. Field operator Statoil said the field will account for 25 percent of the combined production from the Norwegian continental shelf once it's in full swing.

The company estimates Johan Sverdrup should generate $200 billion in revenues over the next 50 years. Production is slated for 2019, a year later than originally planned.

When crude oil prices were struggling to maintain levels above $50 per barrel in early 2015, the NPD said net oil, natural gas liquids and condensate production was waning. Kirsti Veggeland, assistant director general for shelf analysis at the NPD, said the outlook was positive despite recent stumbles.

"The NPD had hoped that improved recovery measures would account for a greater share of the growth in oil reserves," she said in a statement. "However, many new opportunities to improve recovery have been identified, and the potential is greater in 2015 than it was ten years ago."