Wedoany.com Report-Apr 1, Norwegian state-owned energy giant Equinor has successfully started production at the Johan Castberg field in the Barents Sea, marking a significant milestone in the region. The field, which is expected to produce for 30 years, began operations on March 31, 2025. Equinor, along with Vår Energi and Petoro, operates the field, with Vår Energi holding a 30% stake. CEO Nick Walker of Vår Energi expressed excitement, stating that the start of production is a historic moment for the region and the companies involved. He highlighted the field's potential to contribute to long-term energy supply and create value, with a payback period of less than two years.
Johan Castberg FPSO heading for the field in Barents Sea
Equinor aims to achieve 66,000 barrels of oil per day (kbopd) at plateau levels, positioning the field as a key driver for the company's growth target of reaching over 400,000 barrels of oil equivalent per day (kboepd) by the end of Q4 2025. The field is strategically located 100 kilometers northwest of the Snøhvit field and consists of three discoveries: Skrugard, Havis, and Drivis. It is developed using a FPSO unit, which reached its destination in September 2024 after departing Aker Solutions' Stord yard in June 2024.
Vår Energi estimates the Johan Castberg field to have a gross recoverable volume of between 450 and 650 million barrels of oil. At full production, it is expected to generate 220,000 barrels of oil per day. The FPSO unit, measuring 313 meters in length, 55 meters in width, and 120 meters in height, is designed to store up to 1.1 million barrels of oil. The field development is expected to continue with additional drilling and exploration activities, including Cluster 2, which is progressing through near-field exploration.
Equinor's executive vice president for Projects, Drilling and Procurement, Geir Tungesvik, emphasized the field's significance, stating that it will provide energy, value creation, and ripple effects for at least 30 years. The project, costing NOK 86 billion (2024), is expected to be repaid in less than two years. With 12 of the 30 planned wells already ready for production, Equinor is confident the field will reach plateau production by Q2 2025, with drilling continuing through late 2026.
Kjetil Hove, Equinor's Executive Vice President for Exploration & Production Norway, noted that the Johan Castberg field opens new opportunities for oil recovery in the Barents Sea and creates additional exploration prospects. The field has already led to new discoveries and will continue to be explored, with the potential to develop an additional 250-550 million barrels of oil. This development underscores Equinor's commitment to long-term reliability and its role as a key player in the region's energy future.
