Statoil says it is disappointed after drilling on one of the prospects near the massive Johan Castberg field turned up only gas, not oil.
The Iskrystall discovery, drilled by the West Hercules rig, has turned up a gas column thought to be between 6 and 25million barrels of oil equivalent.
But the company admits the findings were not what it hoped to uncover, as it looks to establish more oil resoirces around the Castberg field.
“Our main goal was to find oil in Iskrystall, but unfortunately it did not materialize,” says Statoil exploration senior vice president Gro Haatvedt.
“We still believe we can prove more oil resources in the Johan Castberg area and will continue our exploration effort with two more wells in the Skavl and Kramsnø prospects.”
The well, the second of four prospects near Castberg, sits around 30km southwest of the field in the Barents Sea and 240km north of Hammerfest.
Statoil and the Castberg partners are looking to establish the scope of the area around the field, which it is thought could contain up to 600million barrels of oil, before finalising investment plans for the project.
Earlier this year the company delayed a decision on the £10billion development because of tax increases by the Norwegian government.