Statoil Greenlights $6B Flagship Arctic Oil Project

6 Dec 2017   Norway

Statoil gave the final go-ahead to a flagship Arctic oil project after slashing costs by half. (Bloomberg) — Statoil ASA gave the final go-ahead to a flagship Arctic oil project after slashing costs by half. While expected, the move by Norway’s biggest oil company is a boost to a region seen as key to arresting a decline in the country’s production. In a striking illustration of how oil companies have adapted to lower prices, Statoil cut estimated investments at the Johan Castberg project to about 49 billion kroner ($6 billion) from an initial forecast of more than 100 billion kroner, it said on Tuesday, reiterating a figure given in June. The field in the Barents Sea is due to start production in 2022. Castberg is the world’s biggest offshore oil project to get the go-ahead this year, with resources of 450 million to 650 million barrels, according to Statoil. […]

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