The Johan Castberg project delivered the plan for development and operation on December 5th, 2017 and is now in the execution phase. This presentation will give highlights from the development that resulted in the remarkable turnaround from a concept with a break-even of more than 80 USD/bbl to below 35 USD/bbl. A key concept has been design-to-cost where solutions have been ranked in steps from a minimum solution to a maximum solution. Each increment is required to add value to the project at a low break even. Close collaboration between Petec, Drilling&Wells and Subsea has reduced the required number of wells, templates and total pipeline and cable lengths.
Tough KPIs on the subsea cost of each well (Perfect project) has been broken down to cost of the components. The vendors have been challenged with these targets and they have in turn been allowed to challenge all requirements, showing the potential savings. The feasible savings have been identified in close cooperation between contractors and Statoil. New methods and technologies have been utilized. A rigorous method for risk-based flowline protection has been applied to minimize the required rock-installation. New technology, DC/FO, has enabled a robust and simplified umbilical system while providing a significant capacity for future expansion and enabling future technologies. In addition, several new technology elements such as new wellhead design, 7” VXT, hybrid UTH and more have been applied.