Norway Inaugurates Johan Castberg Field in Barents Sea

 

Equinor and its government partners have officially inaugurated the Johan Castberg FPSO, the northernmost oil field in Norway. The pioneering Barents Sea project came on stream in March, and should continue to produce energy for the next 30 years, according to Equinor. 

Johan Castberg is already producing at its maximum rated capacity of 220,000 barrels per day, drawing on the Drivis, Hvis and Skrugard formations. On startup, its production alone more than doubled oil output from the Barents Sea. 

The FPSO loads about two tankers per week, generating mlllions of dollars in revenue for owners Equinor, Var Energi and Petoro AS (and the Norwegian state, Equinor's majority  shareholder). Recoverable oil volume is estimated at about 450-650 million barrels, with potential for expansion with other nearby discoveries. 

"We've identified options to add 250 MM to 550 MM new recoverable barrels that can be developed and produced over Johan Castberg," said Equinor EVP Kjetil Hove earlier this year. 

The subsea development infrastructure for the FPSO is extensive, incorporating 30 wells and two satellite platforms. Development took 14 years from first discovery to first production, and cost about $8 billion. At current oil prices, Equinor expects that it will pay for itself within two years. 

Norwegian energy minister Terje Aasland headlined an official opening ceremony for Johan Castberg on August 8, accompanied by executives from Aker, Equinor, Var Energy, local mayors, and government ministry leaders. 

"With Castberg on stream, the Barents Sea now has both our second largest producing oil field, our second largest gas field and the largest discovery being considered for development," Aasland said. "This provides secure jobs in the local business community and a basis for new assignments over a long period of time."