Momentum builds behind giant Norwegian oil field

OSLO, Norway, July 2 (UPI) -- Delineating which company holds what percentage of the interest in Norway's giant Johan Sverdrup field boosts development potential, executives said.

Partners to Johan Sverdrup, the fifth largest oil field ever discovered on the Norwegian continental shelf, asked the government to determine the final share allocation when they submitted formal development plans in February.

Maersk Oil, which takes the lowest stake at 8.4 percent, said the determination is a watershed moment for the offshore field.

"We are pleased that we now have clarity on the ownership," Morten Jeppesen, managing director for Norwegian operations, said in a statement. "It allows the partner companies to focus on moving forward and develop this giant field in the best possible way."

Though the share is low, Maersk said Johan Sverdrup is its first development project in the Norwegian waters of the North Sea, adding significant production volumes to its portfolio while at the same time stimulating the industry as a whole.

For the economy, Statoil, the field's operator and the company with the largest share, estimates Johan Sverdrup could generate $200 billion in revenues over the next 50 years. Once in full swing, the field should account for as much as 25 percent of all Norwegian petroleum production.

Peak production is expected to be as high as 650,000 barrels of oil equivalent per day.

Apart from Maersk, operator Statoil holds a 40 percent stake, Sweden's Lundin Petroleum takes 22.6 percent and Norwegian companies Petoro and Det norske oljeselskap combine for the rest.

The 2019 start date is a year later than originally planned and the government in April said the delay left the country short of its 10-year reserve growth objectives.