The development partners in the Johan Castberg project, Equinor, Vår energi and Petoro, have today updated the costs for the project in the Barents Sea. Investment costs have increased by nearly NOK 13 billion from last year. In 2022, the ship was transported from Singapore to Stord to be completed. When news followed the construction earlier this year, we could tell that the project may have lost over NOK 100 billion. Now the price tag has also skyrocketed. Equinor points to the work at Stord as the reason for the increased investment costs. Here the ship stands at the Aker Solutions shipyard in Stord. Photo: Olav Røli / news Extensive, complicated and expensive – The amount of work transferred to Stord has been more extensive and complicated than estimated. Progress has also not been as expected, the company writes on its website. It is also pointed out that cost trends in the market have increased for marine operations, drilling and completion. The plan to start production from the field at the end of 2024 remains unchanged, writes Equinor. – Johan Castberg is another good project with solid finances, and the project breaks even with an oil price of USD 35 per barrel, says Geir Tungesvik, executive vice president for projects, drilling and acquisitions at Equinor. Johan Castberg is still a good project, says Geir Tungesvik in Equinor. Photo: Erik Waage / news Increased by NOK 23 billion since the start When the plan for development and operation was delivered in 2017, the cost estimate was NOK 57 billion, writes Equinor. Today, the cost estimate is NOK 80 billion. The increase of NOK 23 billion is due to NOK 15.5 billion in costs for the project, in addition to a currency effect of approximately NOK seven billion.
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Johan Castberg will be 13 billion more expensive – news Vestland
