Norway's Johan Sverdrup Phase 2 output shut on 'minor' power supply issue

Norway's flagship Johan Sverdrup oil field has suffered a power outage leading to the shutdown of production from the Phase 2 development facilities that came on line in December, state-controlled Equinor said Jan. 12.

In an emailed comment, a spokesperson said the Sverdrup field continued to produce from its primary facilities, which have a capacity of 535,000 b/d.

The Phase 2 facilities, which came on stream on Dec. 15 and are expected to raise overall capacity to 720,000 b/d, have been undergoing testing and commissioning work. The Sverdrup development generally relies on a 200 km power cable from the Norwegian mainland, sourcing renewable power, although backup facilities are available.

Occasional power outage disruptions have occurred previously with the Phase 1 facilities.

"We have some technical issues (minor) with one of the two power supplies from shore to the Johan Sverdrup installations. This does not affect the Phase 1 production, which is producing normally, but the Phase 2 production is currently down," the spokesperson said.

Johan Sverdrup is more heavy and sour than typical North Sea grades, however, prices for the grade have been supported by sanctions on Russia and curbs on buying Russia's Urals sour crude.

Sverdrup crude was assessed at a $1.5/b discount to North Sea benchmark Dated Brent on Dec. 11 by Platts, which is part of S&P Global Commodity Insights.