Equinor To Ship First Sverdrup Oil Worth $60 Million To China

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Equinor to ship the first cargo of crude produced at Norway’s Johan Sverdrup oilfield to China, reports Reuters.

The first cargo of crude

The first cargo of crude produced at Norway’s giant Johan Sverdrup oilfield will be shipped to China later this week via the Suez Canal, field operator Equinor said.

The buyer is China International United Petroleum & Chemicals Co., Ltd. (UNIPEC), a part of the SINOPEC Group.

The value of crude 

The company said that: 

  • the first cargo will hold one million barrels of oil with a market value of around $60 million, 
  • while future cargoes are expected to contain between 600,000 and 2 million barrels.

Oil exported through pipeline

Output from Sverdrup started on Oct. 5, a month ahead of Equinor’s original schedule.

  • Oil is exported from the 2.7-billion-barrel field to the onshore Mongstad terminal via a 283-kilometre-long pipeline. 
  • Output seen rising to 440,000 barrels per day by summer 2020.
  • The field also produces associated natural gas.
  • This natural gas is exported via a separate pipeline to the Kaarstoe gas processing plant.

Annual gas production

Equinor said it expected Sverdrup’s annual gas production to total 1 billion cubic metres before its second development phase comes on stream in 2022.

In the field

  • Equinor holds a 42.6% percent stake,
  • Sweden’s Lundin Petroleum has 20%,
  • Norway’s state-owned Petoro 17.36%,
  • independent oil firm Aker BP 11.57% and
  • France’s Total 8.4%.

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Source: Reuters

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