JPT Statoil Plans Leaner, $6-Billion Arctic Project 

Statoil has submitted a plan for development and operation to Norwegian authorities for its Johan Castberg project--the northernmost development on the Norwegian Continental Shelf--after cutting its expected capital expenditure and break-even cost by at least half. Oil production is expected to start in the fourth quarter of 2022 and last 30 years. Located in the Barents Sea 240 km northwest of Hammerfest and 100 km north of Snohvit field, the Johan Castberg development will utilize a floating production, storage, and offloading (FPSO) facility and a subsea production system consisting of 30 wells with vertical subsea trees, wellheads, control systems, 10 templates and manifolds, two satellite structures, and tooling. The $6-billion project's estimated recoverable resources range from 450 million to 650 million BOE, mostly oil. Operating costs for the field are estimated at about $140 million/year.