Equinor has officially launched production at the Johan Castberg oilfield in Norway’s Arctic region, following months of delays caused by severe winter weather. The field is now set to produce up to 220,000 barrels of oil per day at peak production.
The start-up of the Johan Castberg field had been delayed twice, once in December and again in early March, due to challenging weather conditions.
Located in the Barents Sea, Johan Castberg is Norway’s newest oilfield. Once fully operational, it will contribute to the country’s oil exports for the next 30 years and strengthen Norway’s position as Western Europe’s leading oil and gas supplier. Equinor expects the field to add substantial volumes to the global energy market.
At its peak, the field can produce 220,000 barrels per day, with recoverable reserves estimated between 450 and 650 million barrels of oil. The total cost of developing the project is $8.2 billion (86 billion Norwegian crowns), and Equinor expects the investment to be paid back in under two years, according to Geir Tungesvik, the company’s executive vice president for Projects, Drilling, and Procurement.
“Johan Castberg opens up a new area for oil production and offers additional opportunities in the Barents Sea,” said Kjetil Hove, Equinor’s executive vice president for Exploration & Production Norway. “We’ve already made new discoveries here and will continue exploring with our partners. There is potential to add 250-550 million more recoverable barrels in the future.”
Norway anticipates a 5.2% increase in its oil production in 2025, largely driven by the start-up of Johan Castberg.
The field’s launch also contributes to the growth in oil output from non-OPEC+ countries, alongside the United States, Canada, and Brazil, as noted by OPEC.
However, to maintain long-term production levels, further exploration and new discoveries will be critical. Norwegian authorities have warned that without new field developments, the country’s oil and gas production is expected to decline in the 2030s.
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