Statoil has signed a contract with SBM Offshore for delivery of the turret mooring system on the floating production ship (FPSO) for the Johan Castberg field. The contract is an exercise of an option in connection with the conclusion of a FEED contract with the same company.
– This is a specialized delivery that only a few suppliers internationally have the competence to deliver. We look forward to continuing the good cooperation with SBM Offshore, to ensure a safe and efficient delivery of the turret, says Torger Rød, head of project development in Statoil.
Statoil delivered plans for development and operation (PDO) for Johan Castberg to Norwegian authorities earlier this week. All contracts are subject to final approval of the PDO.
The investment costs for Johan Castberg will be approximately 49 billion. Expected recoverable resources are estimated at 450-650 million barrels of oil equivalents. This makes the Johan Castberg project the largest offshore oil and gas project in the world that is being sanctioned in 2017. The planned start-up of the field is 2022.
The partnership in Johan Castberg consists of Statoil (Operator 50%), Eni (30%) and Petoro (20%).
Statoil today submits the PDO for the Johan Castberg project on behalf of the partnership with Eni and Petoro.
How did the Norwegian oil industry manage to cut costs so far that the break-even price fell to USD 27?
The Johan Castberg (formerly Skrugard) field is situated approximately 100 kilometres north of the Snøhvit-field in the Barents Sea.