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21

Statoil outlined the «ripple effect» of the Johan Castberg project

Statoil proposed impact assessment programme for the largest field yet to be developed on the Norwegian continental shelf.

Statoil outlined the «ripple effect» of the Johan Castberg project Statoil outlined the «ripple effect» of the Johan Castberg project


Statoil reported on September 13, 2016, that the company proposed impact assessment programme for the largest field yet to be developed on the Norwegian continental shelf.

 

Operations at one of the largest fields on the Norwegian continental shelf will create economic ripples, though market vulnerabilities remain, Statoil said.

The Norwegian operator noted the expected value creation in Norwegian supplies of goods and services to Johan Castberg amounts to NOK* 29 billion – more than half of the project’s total investments.

Based on a spin-off report from Agenda Kaupang the Johan Castberg project, value creation in North Norway during the development period is estimated to be NOK* 1.7 billion.

 

«The Johan Castberg field will be producing for more than 30 years, and the major project spin-offs will be created in the long-lasting production phase,» said Arne Sigve Nylund, executive vice president for Development and Production Norway.

«Castberg will trigger much activity for suppliers in North Norway and have ripple effects throughout Norway, both in the development phase and the operating phase. In a normal year of operation the Johan Castberg field will generate 1200 man-years in Norway, of which 300 are expected to be in North Norway.»

He added: «The Johan Castberg project may be a central project for further development of the NCS and in the far north. The field will provide significant tax income. The field development and operation will also create new opportunities for the industry throughout Norway and in North Norway in particular.»

The proposed impact report is the precursor to Johan Castberg’s final development plan, which is expected to be submitted in 2017.

«During our improvement work we have created new opportunities for the Johan Castberg field in the far north. We have changed the concept and found new solutions that allow us to realise the project. But we are still vulnerable to increasing costs and a continued low oil price,» said Margareth Øvrum, executive vice president for Technology, Projects and Drilling in Statoil.

 

The report will be sent to consultative bodies today to allow them to submit any issues for discussion during the consultation process for the project.

Johan Castberg has between 450 million and 650 million proven barrels of oil. It will provide 125 billion in taxes, rates and dues to the Norwegian state.

The total investment for the development is expected to total 60 billion.

 

*1.00 USD = 8.2 NOK (Norwegian Krone)

Source : Neftegaz.RU