Statoil submits formal plans for mega Barents Sea oil field

6 Dec 2017   Norway

By cutting the break-even cost by more than half, Norwegian major Statoil said it’s decided on a development plan for the mega Johan Castberg oil field. Johan Castberg is located in the Norwegian waters of the Barents Sea and holds at least 450 million barrels of oil equivalent. Statoil said Tuesday it submitted a plan for development and operation to the Norwegian government that outlines an annual cost of operation of $138 million. Margareth Øvrum, Statoil’s executive vice president for drilling, said that with capital costs of more than $12 billion and a break-even price of more than $80 per barrel, developing Johan Castberg wasn’t viable until now. “We have been working hard together with our suppliers and partners, changing the concept and finding new […]

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