On March 31, 2025, the Johan Castberg oil field in the Barents Sea began production. With a total investment of 86 billion Norwegian kroner (approximately $8 billion), the field is estimated to produce up to 220,000 barrels of oil per day, with a projected lifespan of 30 years.
Importance of the Johan Castberg oil field
This project will be a victory for Equinor , the field operator, with a 46.3% stake, and its partners, Vår Energi, with a 30% stake, and Petoro, with a 23.7% stake. Both companies have been instrumental in developing the field alongside Equinor.
At its peak production stage, Johan Castberg is poised to recover between 450 and 650 million barrels of oil , a significant volume that will strengthen Norway’s energy exports in the coming years.
Advanced infrastructure and drilling projects
The field’s development includes the use of a floating production vessel (FPSO) that will store up to 1.1 million barrels of crude oil. This high-tech infrastructure is key to extracting oil from the deep waters of the Barents Sea, where depths range from 360 to 390 meters.
As operations progress, 30 wells will be drilled, 12 of which are already ready to begin production. Drilling will continue until the end of 2026 , allowing for further production increases. This approach ensures that the field will maintain optimal performance levels throughout its extended lifespan.
In addition, the company has identified new deposits in the area , opening the door to recovering an additional 250 million to 550 million barrels, which could extend the field’s productive life beyond initial expectations.
Economic impact and benefits for Norway
The impact of Johan Castberg goes beyond oil production . The project will contribute significantly to the Norwegian economy, with over 70% of deliveries during the development phase coming from local industry. This percentage will increase to over 95% during operation , and over 40% of the revenue generated by the field will be allocated to Northern Norway.
It is estimated that, thanks to this project, Equinor will generate a significant amount of direct and indirect employment, in addition to tax benefits. Approximately 84% of the field’s revenue will be transferred to the Norwegian state in the form of taxes and direct shares, highlighting the strategic importance of this project for Norway’s economic well-being.
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Source and photo: Equinor
