Equinor, Vår Energi and Petoro will invest just over NOK four billion in the first discovery tied back to the Johan Castberg field in the Barents Sea. The decision was made eight months after Johan Castberg came on stream.
Recoverable oil in the new subsea development is estimated at 46 million barrels, and start-up is planned as early as the fourth quarter of 2028.
“A rapid development is possible because we can copy standardised solutions from Johan Castberg. The reservoir is in the same licence and is similar to the discoveries we have developed previously, which means that we can copy equipment and well solutions. Johan Castberg has been developed as a future hub in the area. Isflak from 2021 is the first of several discoveries that are now being matured as additional volumes. This will have ripple effects for Norwegian suppliers," says Trond Bokn, Equinor's senior vice president for project development.
The Norwegian continental shelf (NCS) is changing. Many of the developments in the future are smaller discoveries that can quickly be tied back to existing infrastructure and larger fields. Costs and environmental footprints can thus be reduced, value creation and jobs can be extended, and Norway's role as a reliable and long-term energy supplier can be maintained.
Johan Castberg is the newest oil production hub on the NCS. Put on stream in March, the field is now producing 220,000 barrels per day. New projects and new recoverable wells will extend plateau production from Johan Castberg, which currently has estimated recoverable volumes of between 450 and 650 million barrels. It could be more:
"We see opportunities to add 250-550 million new recoverable barrels that can be developed and produced over Johan Castberg. The partnership is already planning six new wells for improved oil recovery, and we will explore more in the area," says Grete Birgitte Haaland, senior vice president for Exploration & Production North.
Earlier this year, a discovery was made in a new segment of the Johan Castberg licence, Drivis Tubåen. This discovery was made as an exploratory extension from a production well, and the partnership will now, in consultation with the authorities, assess how it can be quickly put into production.
"Equinor's ambition is to maintain the production level on the NCS from 2020 until 2035, although production from the current fields will decline. A significant part will come from new wells and projects. We are planning about 75 subsea developments in the next few years, and this project is a good example of how this can be done efficiently working closely with licence partners and authorities," says Haaland.
The development solution for the Isflak discovery consists of two wells in a new subsea template tied back to existing subsea facilities via pipelines and umbilicals, and all new infrastructure is located within the current Johan Castberg licence. Equinor has therefore applied to the Ministry of Energy for confirmation that Equinor has fulfilled the impact assessment obligation and exemption from the requirement for a plan for development and operation (PDO). Global combustion emissions have been assessed in line with new practice.
