Equinor has announced the Johan Castberg oilfield in the Barents Sea has come onstream. The field will be producing for 30 years.
At peak, Johan Castberg can produce 220 000 bpd of oil, and recoverable volumes are estimated at between 450 and 650 million barrels.
"This is a red-letter day.The Johan Castberg field will contribute crucial energy, value creation, ripple effects and jobs for at least 30 years to come. We expect that this major field development with a price tag of NKr 86 billion (2024) will be repaid in less than two years," says Geir Tungesvik, Equinor's executive vice president for Projects, Drilling and Procurement.
12 of the 30 total wells are ready for production, and this is sufficient to bring the field up to expected plateau production in the second quarter of 2025.
"Johan Castberg opens a new region for oil recovery and will create more opportunities in the Barents Sea. We've already made new discoveries in the area and will keep exploring together with our partners. We've identified options to add 250-550 million new recoverable barrels that can be developed and produced over Johan Castberg," says Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway.
The Norwegian supplier industry has accounted for more than 70% of deliveries to the project during the development phase. In operation, this will increase to more than 95%, with a Northern Norwegian share of more than 40%. One of three employees on board the FPSO lives in Northern Norway. 84% of the revenue from the field will be transferred to the Norwegian state through tax and the state's direct participating interest.
The field's supply base and helicopter base are in Hammerfest and will be operated from Equinor's office in Harstad. A total of 30 wells will be drilled on the Johan Castberg field, and drilling operations are expected to continue towards late 2026, which will yield significant activity in Hammerfest.
"Johan Castberg has been a massive and challenging project, and I want to extend my very sincere thanks to everyone who contributed on the road leading to first oil and operation, both our partners Vår Energi and Petoro, our suppliers and our own employees. 79 million hours of work have been recorded in the project, and the HSE results are very good. Now the field will produce for 30 years and generate substantial values," Tungesvik says.
Image: The Johan Castberg FPSO on the field, credit: Equinor
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