Equinor ASA and its companions on Monday achieved first oil on the Johan Castberg subject within the Barents Sea, rising Norway’s manufacturing capability by 220,000 barrels per day (bpd) at peak.
“The Johan Castberg subject will contribute essential power, worth creation, ripple results and jobs for at the least 30 years to come back”, Geir Tungesvik, Equinor govt vp for tasks, drilling and procurement, mentioned in a web based assertion by the corporate.
“We anticipate that this main subject growth with a price ticket of NOK 86 billion (2024) will likely be repaid in lower than two years”.
- Advertisement -
Recoverable volumes are estimated to be 450-650 million barrels, the bulk state-owned power main mentioned.
“Johan Castberg opens a brand new area for oil restoration and can create extra alternatives within the Barents Sea”, added Kjetil Hove, Equinor govt vp for exploration and manufacturing in Norway. “We have already made new discoveries within the space and can preserve exploring along with our companions.
“We have recognized choices so as to add 250-550 million new recoverable barrels that may be developed and produced over Johan Castberg”.
It’s the third subject developed on Norway’s facet of the Barents Sea after Snøhvit, which went on-line 2007, and Goliat, which started manufacturing 2016. The Nordic nation’s northernmost subject, Johan Castberg sits about 100 kilometers north of Equinor-operated Snøhvit, in response to the operator.
Twelve of Johan Castberg’s 30 wells “are prepared for manufacturing”, sufficient to realize the anticipated peak quantity within the second quarter, Equinor mentioned. It plans to proceed drilling till late 2026.
The event consists of three discoveries. Drivis, Havis and Skrugard had been confirmed between 2011 and 2013. The federal government authorised the mission 2018.
Johan Castberg has a median water depth of 360-390 meters (1,181.1-1,279.53 toes) in response to Equinor.
“Johan Castberg has been a large and difficult mission”, famous Tungesvik.
Equinor operates the sector with a 46.3 p.c stake. Vår Energi ASA owns 30 p.c. State-owned Petoro AS holds 23.7 p.c.
Norwegian provides obtained over 70 p.c of supply contracts for the mission. “In operation, this can improve to greater than 95 p.c, with a Northern Norwegian share of greater than 40 p.c”, Equinor mentioned.
“84 p.c of the income from the sector will likely be transferred to the Norwegian state via tax and the state’s direct taking part curiosity”, it added.
To contact the creator, electronic mail jov.onsat@rigzone.com
What do you suppose? We’d love to listen to from you, be a part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all power professionals to Communicate Up about our trade, share information, join with friends and trade insiders and have interaction in knowledgeable group that may empower your profession in power.
