The Johan Sverdrup oil field on Norway's continental shelf will proceed with further development plans, Lundin Petroleum announced on Tuesday.

Johan Sverdrup is one of Norway's five largest offshore oil fields, and contains an estimated 3 billion barrels of oil. Statoil calls the location one of the most important industrial projects for Norway over the next 50 years, adding the assets will be powered using onshore electrical generators.

Statoil is the majority owner of the project, holding 40 percent working interest. Lundin Norway holds 22.6 percent of the venture, while remaining partners Petoro and Maersk Oil hold 17.36 percent and 8.44 percent, respectively.

Phase 1 of the field's development is currently underway, with the first deliveries expected to begin in late 2019. Industrial partners will begin moving forward with Phase 2 in the second half of 2018, the company said.

According to Lundin Petroleum, the follow-up operation will build on existing infrastructure with an additional processing platform, increasing processing capacity to 660,000 barrels per day.

The estimated capital cost for Phase 2 is between $4.75 billion and $5.9 billion. Phase 1 is expected to cost industrial partners $11.5 billion.

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