Johan Castberg decision put back to 2015

Statoil and its partners Eni and Petoro have deferred final concept selection for the Johan Castberg project in the Barents Sea until summer 2015.

Offshore staff

STAVANGER, Norway – Statoil and its partners Eni and Petoro have deferred final concept selection for the Johan Castberg project in the Barents Sea until summer 2015.

This takes in the Statoil-operated discoveries Skrugard and Havis discoveries, estimated to contain a total of 400-600 MMbbl of oil. This yearStatoil drilled exploration wells on other structures in the area to prove more oil for the development, but results fell below expectations.

“In total, we have not proven enough resources in Castberg to make the field viable for supporting infrastructure, including a pipeline to shore and an onshore terminal on its own,” said Arne Sigve Nylund, Statoil executive vice president for Development and Production Norway.

The partners are also unclear as to the level of support the Norwegian government might provide for establishing brand new infrastructure so far north.

They will now focus on three main issues:

  • Technical development solution
    Maturing a concept based on an FPSO, while continuing investigations into a semisubmersible production platform as an alternative development solution.

  • Assessing the economics of an oil terminal at Veidnes
    There are big cost differences, Statoil points out, in a concept based on bringing the oil to shore in a pipeline and one focused on offshore oil offloading.

  • Updating the resource basis and reducing costs
    Statoil will take charge of this program, working with the partners to assess the potential of the area, and to draw up plans for the Drivis oil discovery.

06/30/2014

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