The FINANCIAL -- 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, according to Statoil.
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%).
FACTS ABOUT JOHAN CASTBERG
The field is being expanded with a production vessel and extensive subsea construction, with a total of 30 wells spread over 10 base frames and two satellite structures.
The development costs for Johan Castberg are estimated at approximately NOK 49 billion. National employment under development is estimated at almost 47,000 full-time equivalents, and just under 1800 of these will be in Northern Norway.
The Johan Castberg project will constitute a significant part of the investment level on the NCS 2018-2022.
Statoil, together with the other operators of oil deposits in the Barents Sea, is investigating the possibilities for finding a profitable oil terminal solution at Veidnes.