Statoil again delayed development of the Johan Castberg project in the Arctic Barents Sea amid disappointing exploration results and cost-cutting.
The Norwegian oil giant will look for ways to finance a pipeline to shore and an onshore terminal for the development as it over the next year implements “a number of measures in order to reduce costs,” the Stavanger-based company said in a statement. A new concept will be determined in “summer” of 2015, it said.
“The exploration campaign has proven less new oil resources in the Castberg area than expected,” said Arne Sigve Nylund, executive vice president for development and production.
“We have not proven enough resources in Castberg to make the field viable for support infrastructure.”
Statoil and partners Eni and Petoro were planning to present a decision on a new concept by the summer after postponing the project last year amid higher costs, a tax increase and uncertainty surrounding resources.
An exploration campaign over the last year that cost about 3 billion kroner ($508million), aimed at boosting volumes and making the project more profitable, uncovered crude in only two of five prospects.
Statoil in February refocused its strategy to prioritize returns over production growth amid rising costs, cutting spending plans over the next three years by $5billion.
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