Aug. 13 (UPI) -- There's been no luck in an effort to find new reserves near a multimillion-barrel prospect in the Barents Sea, the Norwegian government stated Monday.
The Norwegian Petroleum Directorate, the nation's energy regulator, released data from a wildcat effort carried out by the regional subsidiary of Spirit Energy about 75 miles north of the Johan Castberg field in the Barents Sea.
Probing the so-called Kolje formation, a wildcat well is one drilled into an area not previously known to contain hydrocarbons.
"No reservoir rocks were encountered in the Kolje formation," the NPD stated. "The well is dry."
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Oil was first discovered at Johan Castberg in 2011, but its future was in doubt when the price of crude oil collapsed in early 2016 and Norwegian major Equinor, the operator, was envisioning a break-even cost above $80 per barrel. New solutions since then have improved the economics for a field with a recoverable reserve estimate of between 450 million and 650 million barrels of oil equivalent.
The price for Brent crude oil was near $73 per barrel on Monday.
Norway is an important energy player as it designates nearly all of its offshore oil and natural gas production for exports to the European market. Closer to home, the development of Johan Castberg, which enters into production in 2022, could create about 47,000 man-hours of work for the Norwegian economy.
Without new discoveries and commercial production, particularly in the Barents Sea, the government sees gradual production declines beyond 2025, however. What's thought to be left offshore corresponds to about 40 Johan Castberg fields.
