Statoil Announces Submission Of PDO For Johan Castberg Project - Quick Facts

(RTTNews) - Statoil (STO) announced the company submitted the plan for development and operation for the Johan Castberg project on behalf of the partnership with Eni and Petoro. Capital expenditures for Johan Castberg are estimated at some NOK 49 billion. Recoverable resources are estimated at 450 - 650 million barrels of oil equivalent.

"Today we are delivering a solid PDO for a field with halved capital expenditures and which will be profitable at oil prices of less than $35 per barrel," Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling, said.

Statoil also signed a contract both for the Johan Castberg subsea system, and engineering and procurement management, both with Aker Solutions AS. The contracts have a total value about NOK 4 billion. Statoil said, on behalf of the partners in the Snorre licence, the company is also signing a letter of intent with FMC Kongsberg Subsea AS for the subsea system for Snorre Expansion Project. The letter of intent is worth slightly less than NOK 2 billion.

The Johan Castberg partnership consists of Statoil (operator 50%), Eni (30%) and Petoro (20%). First oil is scheduled for 2022.