Equinor, partners greenlight $1.23bn Sverdrup expansion in Norway

Norway’s Equinor and its partners have approved a NOK13bn ($1.23bn) investment to expand the Johan Sverdrup oilfield in the North Sea, in a move that is expected to add up to 50mn barrels of oil equivalent (boe) in recoverable reserves.

The Phase 3 expansion, announced by the companies on June 30, will include the drilling of five new production wells and the installation of new subsea facilities to tie back into the existing field infrastructure. First oil from the expansion is anticipated in the fourth quarter of 2027.

The Johan Sverdrup field, one of the largest offshore oil developments in Europe in recent decades, has been producing since 2019. It currently accounts for around one-third of total Norwegian oil output and has a plateau production capacity of about 720,000 barrels per day (bpd). The field is operated by Equinor, which holds a 42.6% stake, alongside partners Aker BP (31.6%), Petoro (17.4%), and TotalEnergies (8.4%).

Equinor’s executive vice-president for projects, drilling and procurement, Geir Tungesvik, said the expansion would “maximise value creation and ensure high, long-term production” from the field. “With low operating costs and some of the lowest CO2 emissions per barrel globally, Johan Sverdrup sets a new standard for sustainable oil production,” he said.

The project has been designed to maintain Johan Sverdrup’s status as a low-emissions asset. The field has been fully electrified from shore since start-up, which reduces carbon emissions to below 1 kg of CO₂ per barrel – significantly below the industry average.

Equinor said that the decision reflects its strategic priority to optimise production from existing infrastructure rather than pursue new frontier exploration. Analysts note that such projects offer high returns with minimal new environmental impact, especially as governments intensify scrutiny of oil and gas developments.

The project approval also signals Norway’s continued commitment to oil and gas even as the country scales up its offshore wind and CCS ambitions. The Norwegian Petroleum Directorate (NPD) said in a separate note that enhanced recovery measures at Sverdrup could ultimately push the field’s total recoverable volume above 3.2bn barrels.

Equinor confirmed that the Sverdrup expansion fits within its broader capital spending plans and will not affect its dividend or share buyback programme.

Construction of subsea equipment is expected to begin later this year, with offshore installation targeted for mid-2027.