Equinor starts up $8B Johan Castberg oil project offshore Norway

Equinor has brought onstream the Johan Castberg oil field in the Barents Sea, Norway’s northernmost offshore production complex.

The location is 150 km from the Goliat field center, 100 km north of the Snøhvit gas-condensate field and 240 km from the Melkøya LNG complex outside Hammerfest.

The development features a 313-m-long FPSO with a storage capacity for 1.1 MMbbl of crude, capable of producing up to 220,000 bbl/d.

Geir Tungesvik, Equinor's executive vice president (EVP) for Projects, Drilling and Procurement, said the company expected to recover the NOK86 billion (US$8.14 billion, 2024 estimate) cost of the development in under two years. The facilities are designed to sustain production for the next 30 years.

The Johan Castberg field comprises the Skrugard, Havis and Drivis discoveries made between 2011 and 2014, in water depths of 360 m to 390 m. Following the first phase of development drilling, 12 of the 30 planned wells are ready for production, which should allow plateau production to be attained during the second quarter.

The wells are distributed among 10 subsea templates and two satellite structures. Drilling operations for Phase 2 should continue through late 2026.

"Johan Castberg opens a new region for oil recovery and will create more opportunities in the Barents Sea,” said Kjetil Hove, Equinor's EVP for Exploration & Production Norway. “We've already made new discoveries in the area and will keep exploring together with our partners. We've identified options to add 250 MM to 550 MM new recoverable barrels that can be developed and produced over Johan Castberg."

The field's supply base and helicopter base in Hammerfest are both operated from Equinor's office in Harstad, northen Norway.

Other partners in the development are Vår Energi and state-owned Petoro.