(CercleFinance.com) – Equinor announced on Tuesday an upward revision of the cost of its Johan Castberg oil field project, in the Barents Sea, citing ‘more complex’ work than initially planned.
The cost of the project is now estimated at around 80 billion Norwegian crowns (around seven billion euros), compared to an initial estimate of 57 billion crowns in 2017.
Hygiene measures and staff shortages linked to the Covid-19 pandemic also impacted project costs, explains Equinor, whether in Singapore, where the equipment was manufactured, or at the current assembly site. , where around 2000 people are working in Stord on the finalization of the FPSO floating unit.
Discovered in 2011, Johan Castberg has a potential of 190,000 barrels per day, with proven reserves of between 450 and 650 million barrels.
The project’s break-even point is set at $35 per barrel, while Brent is trading today at almost $95.
The start of production on Johan Castberg is still planned for the end of 2024.
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