Statoil to start new survey of Johan Sverdrup

STAVANGER, Norway, Oct. 10 (UPI) -- A petroleum regulator in Norway gave consent to Statoil to start new surveys in the Johan Sverdrup field, one of the larger new developments in the region.

The Petroleum Safety Authority said Statoil can proceed with new drilling in the North Sea field.

"The PSA has given Statoil consent to drill four survey wells in order to obtain information about the reservoir conditions in the field," the organization said in a statement.

Norway is one of Europe's lead suppliers of oil and gas. Developed over a series of phases, operator Statoil said the Johan Sverdrup oil field should account for up to 25 percent of total Norwegian petroleum production once at peak capacity.

Statoil and its partners at Johan Sverdrup, Maersk Oil and Lundin Petroleum, in early 2014 outlined the development plan for the field using multiple phases. The field will be developed using four fixed facilities and some production is slated to begin in late 2019.

By its latest estimate, Statoil said the project will be competitive so long as crude oil prices hold above the $30 per barrel mark. Brent crude oil sold for around $52 per barrel in early Monday trading.

In terms of production, Statoil said efficiency measures in part meant more was expected from the field than initially thought. Some of the final investment decisions, however, were pushed back by at least a year.

Drilling for the four survey wells is scheduled to start Nov. 1 and will last about four months, the safety regulator said.