Statoil Delays Norwegian Barents Sea Project

Press Release
Monday, June 10, 2013

On account of applicable Norwegian Government tax changes Statoil as operator has recommended a delay of the investment decision for the Johan Castberg project in the Norwegian Barents Sea.

Statoil has continued to mature the resource base and development plans for the project. There are still uncertainties related to the resource estimate and investment level.

"In addition, the Norwegian government has recently proposed reduced uplift in the petroleum tax system, which reduces the attractiveness of future projects, particularly marginal fields and fields which require new infrastructure. This has made it necessary to review the Johan Castberg project," says Øystein Michelsen, Statoil's executive vice president for development and production in Norway.

The license partners earlier this year selected a development concept for the project, including a new oil terminal at Veidnes outside Honningsvåg in Finnmark county, Norway.

It has been announced that the state aid regulations will be used to enable onshore landing of oil and gas in northern Norway, as in the Snøhvit project. However, these plans have not been specified and presented as part of the proposal which is now up for approval in the Norwegian parliament. State aid will require notification to and approval by ESA, which means significant uncertainty for the project at the present time.

"The updated project estimates and the new uncertainty in the tax framework has made it necessary to consider what consequences this may have for the development concept," says Michelsen.

Statoil is now drilling four exploration wells in the area around Johan Castberg. The objective is to prove additional resources to add further robustness to a potential development. This is part of a wider campaign which also includes additional exploration wells in other areas of the Barents Sea.

Johan Castberg (PL 532) is located 240 kilometres 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.

 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Kleven Shipbuilding Wins IES Pioneer Contract

Norway’s Kleven announced it has signed a shipbuilding contract with Malaysian based joint venture company IES Pioneer Ltd. The vessel is of Norwegian design

Eastern to Build Offshore Vessel for Harvey Gulf

Eastern Shipbuilding announced that on, Wednesday July 16, 2014, Harvey Gulf International Marine, Inc. (HGIM) and Eastern Shipbuilding Group, Inc. (ESG) entered

Suicide Attack Escalates Libya Violence, Oil Output Slips

Crude output slips for first time since port deal; fresh clashes in Tripoli and Benghazi. Brega oil port seen open in few days. A twin suicide bombing at a Libyan

Arctic Operations

Crystal Cruises to Sail Elusive Northwest Passage

The “World’s Best” Crystal Cruises is introducing a new expedition-style  voyage traversing the Arctic Ocean via the legendary Northwest Passage – one so mysterious

Exxon Oil Rig Enters Uncharted Waters of Russian Political Storm

An ordinary, long-scheduled journey of an oil drilling rig into Arctic waters is turning into a major political exercise, attracting international scrutiny and creating a dilemma for Exxon Mobil Corp.

Andrew Weir to Support UK Navy in Antarctica

Andrew Weir Shipping Ltd. announced that it has been awarded the contract for the support and maintenance of HMS Protector (A173), following a competitive tendering process.

Offshore Energy

DNV GL Publishes Regulatory Roadmap for Floaters in the US

DNV GL announced it has mapped out what is necessary to be in compliance with U.S. Coast Guard (USCG) requirements to operate FOIs, FSOs and FPSOs in U.S. waters.

NJ Congressmen Supports Offshore Wind Proposal

Congressman Frank Pallone has issued the following statement in response to the Department of the Interior’s announcement of the proposed lease sale for nearly 344,

Sembawang Shipyard to Convert 2 FPSOs for Kaombo Project, Angola

Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has secured a Floating Storage Production Offloading (FPSO) conversion contract worth about S$600 million from Saipem SA,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1082 sec (9 req/sec)