Reuters: Statoil needs more time for Johan Castberg concept

Norwegian oil giant Statoil is yet to decide on the concept for the development of the Johan Castberg field in the Barents Sea.

As reported by Reuters today, Statoil’s CEO Helge Lund said that the company needs more time mature the concept adding it will not take long before Statoil reveals more information on the project.

Statoil, the operator of the project located in the production licence PL 532, last year decided to postpone the final investment decision due to uncertainties related to the resource estimate and investment level.

The license partners Eni and Petoro, together with Statoil, had selected development concept for the project, including a new oil terminal at Veidnes outside Honningsvåg in Finnmark county, Norway, before they decided to delay the investment decision.

Since then, an option to develop the field using an offshore floating unit, without the onshore terminal, has also been taken into consideration. In August 2013, Statoil awarded Aker Solutions, a Norway-based provider of oilfield services, a contract to conduct an extended concept study for the floater for the Johan Castberg oilfield.

Also, earlier this month, Wood Mackenzie, a consultancy group, said that Johan Castberg  partners would be better off discarding the 280km pipeline and onshore terminal, in favour of an FPSO development.

Johan Castberg (PL 532) is located 240 kilometers north-west of Hammerfest in Norway. The field consists of the Skrugard discovery from 2011 and Havis which was discovered in 2012. Preliminary volume estimates are in the range of 400-600 million barrels of oil.