Johan Castberg Begins Production, Enhancing Norway’s Energy Export Capacity

Barents Sea, March 31, 2025 – The Johan Castberg oil field officially commenced production today at 10:35 AM UTC, marking a significant milestone for Norway's energy sector. Located in the Barents Sea, the field is expected to provide a stable oil supply for the next three decades, affirming Norway's position as a reliable supplier of energy on a global scale.

Key Production Details

The Johan Castberg field can produce up to 220,000 barrels of oil per day at peak capacity, with estimated recoverable volumes ranging from 450 to 650 million barrels. Geir Tungesvik, Equinor's executive vice president for Projects, Drilling and Procurement, highlighted the importance of this development by stating, "This is a red-letter day. The Johan Castberg field will contribute crucial energy, value creation, ripple effects, and jobs for at least 30 years to come." The total investment in this project is approximately NOK 86 billion (2024), with expectations to recoup this cost within two years.

As of now, twelve of the planned thirty wells are ready for production, allowing the field to reach its expected plateau production level by the second quarter of 2025. ### Future Prospects

The Johan Castberg project not only strengthens Norway's energy output but also opens new avenues for oil recovery in the Barents Sea. Kjetil Hove, Equinor’s executive vice president for Exploration & Production Norway, indicated that additional opportunities exist within the region. He stated, “We’ve identified options to add 250-550 million new recoverable barrels that can be developed and produced over Johan Castberg.”

Economic and Local Impact

The local economy will benefit significantly from the Johan Castberg project. Over 70% of deliveries during the development phase came from Norwegian suppliers, and this is projected to rise to over 95% during the operational phase, with over 40% sourced from Northern Norway. Notably, one in three employees aboard the FPSO (Floating Production Storage and Offloading) vessel resides in Northern Norway.

Moreover, 84% of the revenue generated from the field will be directed to the Norwegian state through taxes and the state’s direct ownership stake in the project.

Operational Details

The field's supply and helicopter bases are located in Hammerfest, with operations managed from Equinor's office in Harstad. The project will continue with drilling operations through late 2026, maintaining substantial activity levels in the Hammerfest area. Throughout the project’s development, a total of 79 million hours of work have been recorded, achieving excellent health and safety results.

Tungesvik expressed gratitude towards everyone involved in bringing the project to this point, particularly to partners Vår Energi and Petoro, as well as suppliers and employees. "Johan Castberg has been a massive and challenging project, and now the field will produce for 30 years and generate substantial values," he said.

About Johan Castberg

The Johan Castberg oil field is operated by Equinor Energy AS, with participating interests held by Vår Energi ASA and Petoro AS. The field encompasses the Skrugard, Havis, and Drivis discoveries, all made between 2011 and 2014. It is situated approximately 100 kilometers north of the Snøhvit field, in water depths ranging from 360 to 390 meters.

As the second oil field in the Barents Sea and Norway's northernmost operational field, Johan Castberg is poised to play a pivotal role in Norway's energy future, demonstrating a commitment to long-term energy production and environmental sustainability.

For more information on Equinor and its projects, visit their official website.