X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR - "Naked Short Selling: The Truth Is Much Worse Than You Have Been Told"
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 4 hours Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 23 hours Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 1 day NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 5 hours Retired RAF pilot wins legal challenge over a wind farm
  • 8 hours Speaker Pelosi, "Tear Down This Wall"
  • 8 hours Disaster looming in UK offshore wind power
  • 7 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 5 hours Minerals, Mining and Industrial Ecology
  • 7 hours The latest GOP nonsense on Texas shows us the future Republicans want
  • 9 mins U.S. Presidential Elections Status - Electoral Votes
  • 7 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 10 hours Pipeline vs Train vs Ship to Transport Crude Oil.
Texas Refinery Restarts Could Take Until April

Texas Refinery Restarts Could Take Until April

Texas' largest refineries are restarting…

Norway Approves Equinor’s $6.1B Arctic Oil Project

The Norwegian Parliament has approved the development plan for the Johan Castberg oil project in Arctic waters of the Barents Sea, which will cost US$6.1 billion (49 billion Norwegian crowns) and is scheduled for first oil in 2022, project operator Equinor said on Tuesday.

Recoverable resources at Johan Castberg are estimated at 450-650 million barrels of oil equivalent, Equinor (formerly Statoil), said. The field development consists of a production vessel and a comprehensive subsea system, including a total of 30 wells distributed over 10 templates and 2 satellite structures. Johan Castberg—discovered in 2011—is currently the largest subsea field under development globally, according to Equinor.

After the oil price crash in 2014, Equinor and its partners in Johan Castberg—Eni Norge and Petoro—changed the plan concept and tried different solutions to halve the initial capital expenditures of more than US$12.4 billion (100 billion Norwegian crowns) and to make the project profitable at below US$35 a barrel of oil, compared to the original breakeven oil price of above US$80 a barrel, Equinor said.

Equinor submitted the development plans to the Norwegian Petroleum Directorate (NPD) at the end of last year. Following the approval by the directorate and by the Parliament, the project is now up for approval by the Ministry of Petroleum and Energy, which is considered a formality.

Johan Castberg is expected to boost the economy of Norway’s Arctic region, creating thousands of jobs and reviving the local oilfield services sector.

Related: China Closes The Door On Vietnam’s Oil And Gas Ambitions

The project in the Barents Sea will also help Norway’s oil production to offset recent declines—together with the giant Johan Sverdrup oilfield in the North Sea where the production start for phase one is planned for late 2019. Johan Sverdrup has resources of between 2.1 billion and 3.1 billion barrels of oil equivalents, and will be one of the most important industrial projects in Norway in the next 50 years.

Norway will be able to sustain its oil and gas production until 2023, mainly thanks to the Johan Sverdrup field. However, without major new oil discoveries, authorities fear that the industry is set for a lasting decline after 2023.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News