Norway’s Northernmost Oil Field Officially Opens

The Johan Castberg field was officially opened by Norway’s minister of energy, Terje Aasland, on August 8, the field’s operator, Equinor, announced in a statement posted on its site recently.

The official opening was attended by the crew of the Johan Castberg FPSO, leaders from Norway’s Ministry of Energy, the mayors of Hammerfest and Harstad, leaders from the Norwegian Offshore Directorate (NOD), the Norwegian Ocean Industry Authority, Equinor, Vår Energi, Petoro, Aker Solutions, and employee representatives, Equinor revealed in the statement.

The field will produce for at least 30 years, according to Equinor’s statement, which noted that “this creates great value and ripple effects and is important for Norway’s role as a reliable, long-term energy supplier”.

The field produces 220,000 barrels of oil per day and consists of the Skrugard, Havis and Drivis discoveries, which were discovered from 2011 to 2014, Equinor highlighted in the statement. The field development concept consists of a production vessel tied back to an extensive subsea field with a total of 30 wells divided on 10 subsea templates and two satellite structures, the company noted.

Every three or four days, cargoes depart from Johan Castberg, according to the statement, which said that each cargo may be worth around NOK half a billion ($48.7 million), “depending on the oil price”.

Johan Castberg is located approximately 100 kilometres (62 miles) north of the Snøhvit field in the Barents Sea in blocks 7219/9 and 7220/4,5,7, about 150 km (93 miles) from Goliat and almost 240 km (149 miles) from Melkøya, Equinor pointed out in the statement, highlighting that the water depth in the area is 360-390 meters (1,181-1,279 feet).

“This is a milestone for the petroleum industry in the Barents Sea,” Aasland said in a speech to the FPSO crew right after the opening, the Equinor statement highlighted.

“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,” he added.

“In addition, the Castberg field is a good example of the positive ripple effects that production offshore has on the mainland. With Castberg, there are three producing fields in the Barents Sea,” he continued.

“This provides secure jobs in the local business community and a basis for new assignments over a long period of time,“ Aasland went on to state.

Kjetil Hove, Equinor’s executive vice president for Exploration & Production Norway, said in the statement, “this is a red-letter day”.

“The Barents Sea is becoming increasingly important for Norway’s role as a long-term energy exporter, and Johan Castberg will produce safely and efficiently for at least 30 years,” Hove added.

“We are well underway and have already made new discoveries in the area. Throughout the field’s productive life, we will make significant investments that will create jobs and opportunities for the supply industry,” Hove continued.

A statement posted on NOD’s website on August 8 stated that the Johan Castberg field will be producing oil for many years to come, highlighting that new discoveries can be incorporated.

“The field is important for further development in the Barents Sea,” that statement said.

A statement posted on Vår Energi’s social media on August 8 stated that the Barents Sea “is a core region” for the company.

“With new oil discoveries near Goliat, active exploration, LNG export from the Snøhvit field and Johan Castberg producing at full capacity, we are excited about the future,” that statement added.

In a statement posted on Petoro’s website on August 7, Petoro CEO Kristin F. Kragseth said, “Johan Castberg, with its surrounding areas, illustrates the opportunities on the Norwegian continental shelf (NCS), even in a mature phase”.

In a statement posted on its site on March 31, Equinor announced that, on that day, the Johan Castberg oil field came on stream. At peak, Johan Castberg can produce 220,000 barrels of oil per day and recoverable volumes are estimated at between 450 and 650 million barrels, Equinor said in that statement.

In a statement posted on its site on June 20, Equinor announced that, “only three months after coming on stream, Johan Castberg is producing at peak capacity of 220,000 barrels of oil per day”.

“This increases energy deliveries from the Barents Sea by 150 percent,” the company added in that statement.

Equinor Energy AS holds a 46.3 percent operated interest in Johan Castberg. Vår Energi ASA holds a 30 percent stake and Petoro AS holds a 23.7 percent interest.

To contact the author, email andreas.exarheas@rigzone.com