Statoil's exploration campaign around the suspended Johan Castberg project has failed to yield the resource the company had hoped, despite an oil find on the latest well, the company said on Friday.
Statoil suspended the $15.5 billion Castberg development last year because it grew too expensive after an oil tax hike and the company said it would look for new resources to make the project economically viable.
"We are certainly glad to have an oil discovery in Drivis. However, the exploration programme as a whole has not delivered on volume expectations. Out of the five wells drilled only two have resulted in oil discoveries," said Irene Rummelhoff, Statoil senior vice president for exploration on the Norwegian continental shelf.
Statoil is expected to decide later this year whether it would go ahead with the project.
(Byy Balazs Koranyi)