Equinor Makes Gas Discovery Near Huge Arctic Oilfield

Equinor has made a gas discovery close to its Johan Castberg oilfield in the Barents Sea and will assess a potential tie-in to the now fully operational Arctic field.

Equinor and its partners in the exploration and production license have hit natural gas in the Skred prospect, in a well drilled 23 kilometers (14 miles) north of the Johan Castberg field and 210 kilometers (130 miles) northwest of Hammerfest, a major gas export facility in Norway, the Norwegian Offshore Directorate said on Thursday.

Preliminary estimates put the size of the discovery at 1.9 – 3.1 million barrels of oil equivalent (boe) of recoverable gas, the regulator said, adding that Equinor will now assess the discovery with a view toward a possible tie-in to the Johan Castberg field.

Additional gas volumes from Norway, especially if fast-tracked via a tie-in, would be welcome in Europe, where the Norwegian shelf is now the single largest gas supplier, replacing Russia after 2022.

Equinor has just announced that Johan Castberg hit full capacity of 220,000 barrels per day (bpd) of crude oil production, noting that peak capacity has been reached just three months after the field in Norway’s Arctic waters came on stream.

As Norway’s newest oilfield, Johan Castberg, it will produce crude for 30 years, boost Norway’s oil exports, and bolster the role of Western Europe’s biggest oil and gas producer as a reliable and long-term supplier of energy, Equinor said.

Last month, Equinor announced it had made an oil discovery near Johan Castberg, which could boost reserves at the giant field.

Equinor plans to drill one or two exploration wells annually near Johan Castberg.

Norway expects its oil liquids production to rise by 5.2% in 2025 from 2024, also thanks to the start-up of Johan Castberg.

Yet, further exploration efforts and new discoveries would be crucial to slowing the expected decline in Norway’s oil and gas production in the 2030s, the Norwegian authorities have said.

By Tsvetana Paraskova for Oilprice.com

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