popular articles

Barents: Johan Castberg project key to Arctic gas development

The Johan Castberg field launches a new phase of exploration in the Arctic, vital for Europe's gas future in the face of declining resources in the North Sea.

Please share:

The Johan Castberg oil field in the Barents Sea marks a milestone in the exploration of Arctic energy resources.
With an expected capacity of 220,000 barrels per day, it becomes an essential base for future exploitation of this largely underexplored region.
The project meets Europe’s energy supply needs as the North Sea oil fields approach their decline phase.
The Castberg project is scheduled for completion in the fourth quarter of 2024, and its strategic position could accelerate other projects in the region, notably the Wisting field, even further offshore.
Interest in this region is being stimulated by new seismic imaging technologies that provide a better understanding of potential resources.
These technological advances offer more precise images, enabling new deposits to be identified, paving the way for intensified exploration.
As a major supplier of energy to Europe, it is imperative for Norway to diversify its resources and maintain its production capacity, despite the difficulties associated with Arctic infrastructure.

The Arctic gas transportation dilemma

One of the main challenges for gas development in the Barents Sea is transporting resources to European markets.
Currently, gas from the region is processed at the Melkøya liquefaction plant, but this facility is already being used to full capacity by the Snøhvit field.
In the short term, a solution must be found to transport the additional gas volumes, as Europe, particularly after 2025, will face a significant reduction in gas deliveries from the North Sea.
The project for a new gas pipeline linking the Barents Sea to the existing network in Norway, supported by pipeline operator Gassco, could be a solution, but it depends on the discovery of sufficient volumes to justify such an infrastructure.
Equinor, the main operator in the region, continues to evaluate this option while investing in exploration to maximize the region’s gas potential.
However, building new pipelines poses considerable logistical challenges, not least because of the remoteness of the facilities.

Exploration prospects despite uncertainties

Despite the difficulties, the future of exploration in the Barents Sea looks promising.
The latest seismic campaign in the region has revealed new prospects for oil and gas companies.
In contrast to the areas close to the Russian border, which have been relatively unsuccessful to date, attention is now turning to the western Barents Sea, closer to the Norwegian Sea.
Discoveries of gas or oil in this area would be decisive in motivating new investment in transport infrastructure.
However, the current situation reflects a classic “chicken and egg” problem: lack of infrastructure slows exploration investment, and lack of discovered resources slows infrastructure development.
The potential therefore remains largely untapped, despite technological advances.
Companies such as Var Energi, in partnership with Equinor, continue to play a central role in these developments, but further efforts will be needed to ensure a sustainable future for the industry in this region.

The decline of North Sea fields: a challenge for Norway

At the same time, the North Sea oil and gas sector is facing a major challenge.
Major fields such as Johan Sverdrup, due to come on stream in 2019, are approaching peak production, and the decline expected as early as the end of the year is a source of concern.
Norway, dependent on these resources for its energy exports, will have to step up its exploration efforts in other areas to compensate for this decline.
The existing infrastructure, though robust, may not be sufficient to cope with rapidly declining volumes.
The future of the export system, which supplies several European countries and the UK, may require major adjustments over the coming decades.
Gas and oil flows could be redirected, but this will take time, and the success of these adjustments will largely depend on Norway’s ability to maintain its production levels.

An evolving regulatory framework

Norway’s regulatory framework has also adapted to environmental concerns, restricting new exploration licenses to areas already known under the “pre-definition” regime, rather than the classic numbered license cycles, which used to be more extensive.
This restriction is currently holding back exploration in more remote areas, but some observers predict a return to more open cycles after the 2025 elections.
Despite these developments, the Norwegian industry remains on a solid footing, with committed exploration and development players such as Aker BP and Harbour Energy seeking to maximize the opportunities offered by existing resources.
In the long term, however, Norway will need to reassess its strategy if it is to remain a key supplier of energy to Europe, as demand continues to grow.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.
The Republic of Congo enhances its gas capabilities with the floating platform Nguya, which will add 2.4 million annual tonnes of liquefied natural gas (LNG), solidifying its position in the global market starting in 2025.
The Republic of Congo enhances its gas capabilities with the floating platform Nguya, which will add 2.4 million annual tonnes of liquefied natural gas (LNG), solidifying its position in the global market starting in 2025.
TotalEnergies welcomed the launch of a criminal investigation in Mozambique into allegations of crimes committed by security forces near its suspended gas project in Cabo Delgado province.
TotalEnergies welcomed the launch of a criminal investigation in Mozambique into allegations of crimes committed by security forces near its suspended gas project in Cabo Delgado province.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Algeria announces an ambitious goal to increase its annual natural gas production to 200 billion cubic meters within five years, supported by significant investments and strategic infrastructure projects aimed at the international market.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.
The global liquefied natural gas engine market is expected to double by 2033, fuelled by energy diversification policies, growing refuelling infrastructure and demand for cost-effective transport solutions.
The global liquefied natural gas engine market is expected to double by 2033, fuelled by energy diversification policies, growing refuelling infrastructure and demand for cost-effective transport solutions.
The $4.7bn financing granted by the US Exim Bank to the Mozambique LNG project reignites tensions in the United States over foreign energy policy and national interests.
The $4.7bn financing granted by the US Exim Bank to the Mozambique LNG project reignites tensions in the United States over foreign energy policy and national interests.
A study by Wood Mackenzie concludes that liquefied natural gas exported from the United States to Europe generates on average half the emissions of imported coal, when considering the full lifecycle.
Slovak Prime Minister Robert Fico acknowledged on 20 March significant technical difficulties obstructing a proposed gas swap deal with Azerbaijan, while reaffirming the urgency of restoring Russian gas transit through Ukraine.
Slovak Prime Minister Robert Fico acknowledged on 20 March significant technical difficulties obstructing a proposed gas swap deal with Azerbaijan, while reaffirming the urgency of restoring Russian gas transit through Ukraine.
The Canadian government is financially backing the Cedar LNG project, a gas infrastructure led by the Haisla Nation and Pembina, with an investment of up to $200mn.
The Canadian government is financially backing the Cedar LNG project, a gas infrastructure led by the Haisla Nation and Pembina, with an investment of up to $200mn.
In 2025, Europe faces gas reserves well below usual levels, leading to rising prices and increased pressure on industrial competitiveness amid geopolitical and climatic tensions.
In 2025, Europe faces gas reserves well below usual levels, leading to rising prices and increased pressure on industrial competitiveness amid geopolitical and climatic tensions.
Alpha Generation, LLC plans to add 450 MW of power generation capacity across four existing sites in Maryland, New Jersey, and Ohio. This initiative aims to meet the growing energy demand under PJM’s Reliability Resource Initiative.
Equinor has begun gas production at Halten East, a NOK 9 billion project in the Norwegian Sea, two years after receiving approval from Norwegian authorities.
Equinor has begun gas production at Halten East, a NOK 9 billion project in the Norwegian Sea, two years after receiving approval from Norwegian authorities.
Siemens Energy has secured a $1.6 billion contract to supply technologies for the Rumah 2 and Nairyah 2 gas power plants in Saudi Arabia. These facilities will add 3.6 gigawatts to the national grid and include 25-year maintenance agreements.
Siemens Energy has secured a $1.6 billion contract to supply technologies for the Rumah 2 and Nairyah 2 gas power plants in Saudi Arabia. These facilities will add 3.6 gigawatts to the national grid and include 25-year maintenance agreements.
BP has confirmed the cessation of a gas leak at the offshore Grand Tortue Ahmeyim field, located between Senegal and Mauritania. The incident, identified on 19 February at one of the site’s wells, required technical interventions to restore the integrity of the installations.
BP has confirmed the cessation of a gas leak at the offshore Grand Tortue Ahmeyim field, located between Senegal and Mauritania. The incident, identified on 19 February at one of the site’s wells, required technical interventions to restore the integrity of the installations.
The United States reactivates a major loan for TotalEnergies' Mozambique LNG project, stalled since 2021 due to a jihadist attack. The funding should enable a market-anticipated restart by 2030.
ExxonMobil has signed a 20-year contract with ARC Resources for LNG supply from the Cedar LNG project, linked to JKM. The deal marks a significant step in global LNG pricing.
ExxonMobil has signed a 20-year contract with ARC Resources for LNG supply from the Cedar LNG project, linked to JKM. The deal marks a significant step in global LNG pricing.
Facing a drop in domestic production, Egypt plans to lease a floating natural gas liquefaction unit in Germany to secure its energy supply.
Facing a drop in domestic production, Egypt plans to lease a floating natural gas liquefaction unit in Germany to secure its energy supply.
Africa will experience the fastest growth in natural gas demand by 2050, driven by urbanisation and the need to address the energy deficit, according to the Gas Exporting Countries Forum (GECF) in its report of March 10, 2025.
Africa will experience the fastest growth in natural gas demand by 2050, driven by urbanisation and the need to address the energy deficit, according to the Gas Exporting Countries Forum (GECF) in its report of March 10, 2025.
In the context of growing trade tensions with the United States, the European Union strengthens its imports of American liquefied natural gas (LNG) to diversify its energy sources and reduce its dependence on Russian gas.
Qatar has started supplying natural gas to Syria via Jordan in order to alleviate electricity shortages and support the rebuilding of the country's energy infrastructure.
Qatar has started supplying natural gas to Syria via Jordan in order to alleviate electricity shortages and support the rebuilding of the country's energy infrastructure.
Cameroon has announced the upcoming construction of two gas-fired power plants totaling 500 MW in Bekoko and Douala under public-private partnerships, contingent upon gas supply assurances from the National Hydrocarbons Corporation.
Cameroon has announced the upcoming construction of two gas-fired power plants totaling 500 MW in Bekoko and Douala under public-private partnerships, contingent upon gas supply assurances from the National Hydrocarbons Corporation.
NextDecade signs agreement with Baker Hughes for equipment supply and maintenance services related to five new liquefaction units at Rio Grande LNG terminal, significantly boosting U.S. liquefied natural gas export capacity.
NextDecade signs agreement with Baker Hughes for equipment supply and maintenance services related to five new liquefaction units at Rio Grande LNG terminal, significantly boosting U.S. liquefied natural gas export capacity.

Advertising