facebook
twitter
rss
account
search
search
 

Plans for Johan Castberg oil field suspended

Decision stems for low oil resource finds for Statoil.
By Daniel J. Graeber   |   June 30, 2014 at 9:37 AM   |   Comments

| License Photo
STAVANGER, Norway, June 30 (UPI) -- Norwegian energy company Statoil said Monday it was postponing a development decision for the multi-million barrel Johan Castberg reserve area.

Statoil, along with its partners -- Italian energy company Eni and Norway's Petoro -- said it decided to review its concept for Johan Castberg reserve area in the Barents Sea.

"The companies will continue efforts to mature the technical development solution, updating the resource basis and reducing cost leading up to the summer of 2015," Arne Sigve Nylund, Statoil executive vice president for Norwegian development and production, said in a statement.

Statoil, which serves as the operator of the reserve area, said it estimated the proven reserves at Johan Castberg at between 400 million and 600 million barrels of oil.

The Norwegian company said it's carried out an extension exploration campaign in the Barents Sea field in order to prove Johan Castberg is a viable project.

"Unfortunately, the exploration campaign has proven less new oil resources in the Castberg area than expected," Nylund said. "In total, we have not proven enough resources in Castberg to make the field viable for supporting infrastructure, including a pipeline to shore and an onshore terminal on its own."

Follow @dan_graeber and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian bank boss feeling sanctions pain Russian bank boss feeling sanctions pain
2
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
3
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
4
New GenDyn mission computers for Navy F/A-18s New GenDyn mission computers for Navy F/A-18s
5
EIA: Russia diversifying energy production EIA: Russia diversifying energy production
Trending News
Video
x
Feedback