Statoil Goes Ahead with Arctic Field After Halving Of Costs



Reuters

OSLO, Jan 19 (Reuters) – Norwegian oil major Statoil plans to go ahead with its Arctic Johan Castberg oilfield, with a decision on investments in 2017, after having cut costs by half, its chief executive said on Tuesday.

"The investment estimate is almost halved from around 100 billion crowns ($11.29 billion) to between 50 and 60 billion crowns," Chief Executive Eldar Saetre told an industry conference on Tuesday.

The firm and its partners have picked a floating production storage and offloading (FPSO) concept for the field located in the Barents Sea, he added. Possible production start would be 2022.

Partners in the field are Norway's state-owned Petoro and Italy's ENI.

($1 = 8.8544 Norwegian crowns)

(Reporting by Stine Jacobsen, editing by Alister Doyle)



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