Polar Pioneer semisubmersible drilling at Johan Castberg, image (c) Harald Pettersen/Statoil
OSLO, June 30 (Reuters) – Statoil has postponed a decision on the development concept for its flagship Johan Castberg Arctic oil project until the summer of 2015 after a disappointing drilling campaign, the Norwegian oil firm said on Monday.
The project comprises two discoveries, Skrugaard and Havis, which became a breakthrough for the Barents Sea as a new oil province, with volumes estimated at 400-600 million barrels of oil.
“The Johan Castberg partners have decided to spend the time leading up to the summer of 2015 to make the final concept selection for the project,” Statoil, the field’s operator, said in a statement.
The Norwegian oil firm, which holds a 50 percent stake in the project, said the exploration campaign had found less oil than expected.
“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’s executive vice president for Development and Production Norway.
Statoil had been confident of finding more resources than the initial estimate of 400-600 million barrels. But in May the firm said the results of the latest, and final, round of drilling were disappointing.
Last year, Statoil suspended the development of the $15.5 billion Castberg project due to rising costs and a tax increase.
The firm has previously said it was looking at two options for the field’s development: building a pipeline to deliver oil to an onshore terminal, or having a floating production storage and offloading (FPSO) facility.
The latter is cheaper, and Statoil has previously said it is the more likely option, but the pipeline would provide opportunities to tie in other discoveries in the area.
Statoil’s partners in the field are Italian firm Eni with 30 percent and Norwegian state-owned Petoro with 20 percent. (Reporting by Joachim Dagenborg and Nerijus Adomaitis; Editing by Henrik Stolen and Pravin Char)
The U.S. Department of the Interior has announced a final rule that modernizes regulations governing offshore wind projects in federal waters, which could help to boost the deployment of the...
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
(Bloomberg) — The Biden administration is taking steps to jump-start the fledgling offshore wind sector, outlining a five-year leasing plan that would include turbines in the far reaches of the...
April 24, 2024
Total Views: 666
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.