Doubt still hangs over Statoil’s Barents Sea Johan Castberg project after the firm made an oil and gas discovery in its fifth and final exploration program around the field.
The latest well, 7220/7-3 S, was on the Drivis prospect in production license (PL) 532, 230km northwest of Hammerfest, and was the final exploration well in a 2013/2014 program around the Johan Castberg field.
The well, drilled by the semisubmersible drilling rig West Hercules, about 15km southwest of the 7220/8-1 Johan Castberg discovery, found a 68m gross gas column in the Stø formation and an 86m gross oil column in the Stø and Nordmela formations. Statoil estimates Drivis to contain 44-63MM boe recoverable, out of which 42-54 million barrels of oil.
Statoil’s exploration campaign around Johan Castberg was launched to clarify additional oil potential in the area and make the development project more robust. Last year, Statoil delayed an investment decision on Johan Castberg, citing uncertainties around the resource base, development plans, and a proposed increase in taxation by the Norwegian government.
“Over the past year we have made a significant exploration effort in the Johan Castberg area. Five wells have been drilled back-to-back, giving us important subsurface information and a good understanding of the total resource base in the area”, says Irene Rummelhoff, Statoil senior vice president for exploration on the Norwegian continental shelf.
”We are certainly glad to have an oil discovery in Drivis. However, the exploration program as a whole has not delivered on volume expectations. Out of the five wells drilled only two have resulted in oil discoveries.”
“We will now work closely with our license partners to analyze the findings of the exploration program and what those mean for the Johan Castberg development project,” says Erik Strand Tellefsen, Statoil vice president for field development northern Norway.
The Norwegian Petroleum Directorate said: “The well was not formation tested, but extensive data acquisition and sampling have been carried out. The discovery will be considered for tie-in to 7220/8-1 Johan Castberg.”
This is the seventh exploration well in production license 532, the NPD says. The license was awarded in the 20th licensing round in 2009.
Statoil is operator for production licence PL532 with an ownership share of 50%. The licence partners are Eni Norge AS (30%) and Petoro AS (20%).
The West Hercules is now due to move on to assignments outside the Norwegian shelf.
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