Johan Sverdrup: Don’t Decline?

Equinor is deploying three world-class technologies to mitigate Johan Sverdrup’s decline rates, based on reviewing c115 of the company’s patents and dozens of technical papers. Our new 15-page note outlines how its efforts may unlock an incremental $3-5bn of value from the field, as production surprises to the upside.

Pages 2-3 provide the context of the Johan Sverdrup field, its implied decline rates and how their variability will determine the field’s ultimate value.

Page 4 re-caps the concept of decline rates and how they should be measured.

Pages 5-7 recount the history of Digital Twin technologies, the cutting edge of their application offshore Norway and evidence for Equinor’s edge, as it deploys the technology at Sverdrup.

Pages 8-11 illustrate the upside in Permanent Reservoir Monitoring, comparing Equinor’s plans versus prior achievements deploying the technology off Norway.

Page 12-14 show the cutting-edge technology that excites us most: combining two areas where Equinor has established a leading edge. This opportunity can improve well-level production rates by c1.5x.

Page 15 ends by touching upon other technologies that will be applied at Sverdrup, quantifying Equinor’s offshore patent filings versus other listed Majors’.

Digital Deflation: How Hard to Save $1/boe?

A typical offshore operator can very readily save $1/boe via continued, digital deflation; which is tantamount to $1bn per annum at a c3Mboed Oil Major.

Our numbers are derived from a case study by Cognite, which is among the leaders in oilfield digitization, collaborating with cutting-edge E&Ps, as described below.

Digitization remains the most promising opportunity to improve offshore economics. But the gains are granular and can only be seen by delving into the detail…

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