Equinor’s Johan Castberg oilfield in the Arctic Barents Sea officially started production on Monday, marking the end of several delays. The company’s CEO announced that the project is expected to recover its $8-billion investment in under two years.
Located about 100 kilometers north of the Snøhvit field, Johan Castberg is now Norway’s second active oilfield in the Barents Sea. The first, Vår Energi’s Goliat field, began operations in 2016.
The Johan Castberg field includes three main oil discoveries: Skrugard, Havis, and Drivis, all within production license 532. Equinor projects that the field will produce oil for the next 30 years, with an estimated 450 million to 650 million barrels of recoverable oil. Production is expected to reach 220,000 barrels per day by the second quarter of 2025.
Equinor emphasized that the Johan Castberg field will strengthen Norway’s position as a dependable long-term energy supplier. Geir Tungesvik, a senior executive at Equinor, highlighted the project’s rapid payback, noting that it is expected to recover its investment in less than two years, although he did not share additional details.
Equinor’s exploration efforts continue in the region, with several nearby discoveries. These finds are set to be incorporated into production via Castberg’s floating production, storage, and offloading (FPSO) unit.
In addition, Equinor and its partners discovered gas and condensate at the Mistral Sør exploration well in the southern Norwegian Sea, with an estimated 19-44 million barrels of recoverable oil equivalents. This discovery is strategically located near established gas infrastructure, which is crucial for Europe’s energy security.
“Norwegian gas is in high demand and vital for Europe’s energy security,” said Grete Haaland, Equinor’s senior vice president for Exploration & Production North.
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