Statoil pushes back Johan Castberg / News / The Foreigner

Statoil pushes back Johan Castberg. Norway energy giant Statoil is delaying its investment decision on the Barents Sea project. This comes following the government’s hydrocarbon tax proposals. Statoil says they have taken the move due to continued resource estimate and investment level uncertainties. “Moreover, the Norwegian government has recently proposed reduced uplift in the petroleum tax system, which reduces the attractiveness of future projects, particularly marginal fields and fields which require new infrastructure. This has made it necessary to review the Johan Castberg project,” Øystein Michelsen, Statoil's executive vice president for development and production in Norway says in a statement.

statoil, barentssea, norwayoil



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Statoil pushes back Johan Castberg

Published on Wednesday, 5th June, 2013 at 07:59 under the news category, by Michael Sandelson   .
Last Updated on 5th June 2013 at 09:19.

Norway energy giant Statoil is delaying its investment decision on the Barents Sea project. This comes following the government’s hydrocarbon tax proposals.

Skrugard concept illustration
Skrugard concept illustration
Photo: Statoil


Statoil says they have taken the move due to continued resource estimate and investment level uncertainties.

“Moreover, the Norwegian government has recently proposed reduced uplift in the petroleum tax system, which reduces the attractiveness of future projects, particularly marginal fields and fields which require new infrastructure. This has made it necessary to review the Johan Castberg project,” Øystein Michelsen, Statoil's executive vice president for development and production in Norway says in a statement.

The tax rise would be NOK 70 billion in 2013 (some USD 12 billion) between 2013 and 2050. Onshore industry would receive the same amount in tax relief

Earlier this year, the license partners decided on a development concept for the project. This includes a new oil terminal at Veidnes outside Honningsvåg in Finnmark county, northern Norway.

Officials’ plans for using state aid regulations to enable onshore landing of oil and gas in Northern Norway – such as Snøhvit – have neither been specified nor presented as part of the proposal currently up for approval in parliament, the company states.

According to Statoil, ESA will have to approve state aid, which also requires notification to ESA, meaning “significant uncertainty for the project at the present time”.

"The updated project estimates and the new uncertainty in the tax framework has made it necessary to consider what consequences this may have for the development concept," says Øystein Michelsen.

Statoil is now drilling four exploration wells in the area around Johan Castberg. The aim of his is to prove additional resources to make any development more robust.

These exploration wells are part of a wider campaign, which also includes additional exploration wells in other areas of the Barents Sea.

The Johan Castberg project (PL 532), called Skrugard until recently, is located 240 kilometers (some 150 miles) northwest of Hammerfest in Norway. The field consists of 2011’s Skrugard discovery, and Havis, discovered in 2012. Statoil says preliminary volume estimates range from 400 to 600 million barrels of oil.

Johan Castberg (1862-1926, b. Porsgrunn municipality, Telemark County) was a Norwegian politician and jurist. He represented the Labour Democrats, and was an MP between 1900 and 1909, 1913 to 1921, and 1924 to 1926.



Published on Wednesday, 5th June, 2013 at 07:59 under the news category, by Michael Sandelson   .
Last updated on 5th June 2013 at 09:19.

This post has the following tags: statoil, barentssea, norwayoil.





  
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