• 3 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 6 minutes Forecasts for Natural Gas
  • 14 minutes NordStream2
  • 15 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 14 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 1 hour China's aggression is changing the nature of sovereignty.
  • 16 hours Delta variant in European Union
  • 3 days Ukrainian Maidan after 8 years
  • 23 hours President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 4 days OPEC+ Expects Large Oil Glut In Early 2022
  • 2 days Сryptocurrency predictions
  • 4 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 4 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 4 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
California Is Addicted To Oil From The Amazon

California Is Addicted To Oil From The Amazon

California is regarded as America’s…

Statoil Plans $6B Development At Huge Arctic Oil Field

Norway’s oil major Statoil submitted to authorities on Tuesday the plan for developing and operating the Johan Castberg oil field that is expected to take capital expenditures of US$5.89 billion (49 billion Norwegian crowns) and become the northernmost oil field development on the Norwegian Continental Shelf.

Recoverable resources at Johan Castberg in the Barents Sea are estimated at 450 million – 650 million barrels of oil equivalent, which makes the Johan Castberg project the biggest offshore oil and gas development to be given the go-ahead in 2017, Statoil said, adding that first oil is scheduled for 2022.

“The project was not commercially viable due to high capital expenditures of more than NOK 100 billion and a break-even oil price of more than USD 80 per barrel. We have been working hard together with our suppliers and partners, changing the concept and finding new solutions in order to realize the development,” Margareth Øvrum, Statoil’s executive vice president for Technology, Projects and Drilling, said.

“Today we are delivering a solid PDO for a field with halved capital expenditures and which will be profitable at oil prices of less than USD 35 per barrel,” Øvrum added.

Statoil is the operator of the Johan Castberg partnership with a 50-percent stake, while Eni has 30 percent, and Petoro the remaining 20 percent.

Related: Don’t Count On A Utah Shale Boom

Commenting on the plan, the Norwegian Petroleum Directorate (NPD) said that it was a “milestone for the Barents Sea” and that Johan Castberg “will become the first infrastructure in this petroleum province and will thus become an important building block for future activity in the Barents Sea southwest and further north.”

Both Statoil and the NPD have voiced concerns that in a few years’ time, Norway’s production will drop off unless new discoveries are made. Statoil will focus on exploration in the North Sea and the Norwegian Sea next year. After 2025, oil production and drilling activity are expected to significantly drop off unless there are new discoveries, according to Statoil.

“The field is essential for continuous production growth on the Norwegian continental shelf for Statoil from 2022 onwards,” Danske Bank analyst Anders Holte told Reuters on Tuesday, commenting on the Johan Castberg development plan submitted today.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News