Statoil Submits Development Plan for $6.1 Billion Johan Castberg Project
December 05 2017 - 2:59AM
Dow Jones News
By Dominic Chopping
Norway's Statoil ASA (STO) on Tuesday submitted its plan for the
development and operation of the Johan Castberg project in the
Barents Sea, a 49 billion Norwegian kroner ($5.9 billion) project
that is thought to hold recoverable resources of between 450
million and 650 million barrels of oil equivalent.
"The project is [a] central part of the further development of
the northern regions, and will create substantial value and
spinoffs for Norway for 30 years," said Margareth Ovrum, Statoil's
executive vice president for technology, projects and drilling.
First oil from the field is expected in 2022.
The project hadn't previously been commercially viable due to
high capital expenditure of more than NOK100 billion and a
break-even oil price of more than $80 a barrel. However, Statoil
said it has worked with suppliers and partners, changed the concept
and found new solutions, halving capital expenditure and making the
project profitable at oil prices of less than $35 per barrel.
As part of the plan submitted today, Statoil, along with its
partners in the field--Eni SpA (E) and Petoro--have awarded a NOK4
billion contract to Aker Solutions ASA (AKSO.OS) for subsea
systems, engineering and procurement management.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
December 05, 2017 02:44 ET (07:44 GMT)
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