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

ADNOC Gas reports a net profit of $5 billion in 2024, marking a 13% year-on-year growth. The company strengthens its position with adjusted revenues of $24.43 billion and plans strategic investments through 2029. ##
McDermott has successfully completed the transportation, installation, and commissioning of the Kikeh subsea gas lift project, awarded by PTTEP Sabah Oil Limited. Conducted in deep waters off the coast of Sabah, East Malaysia, the project was completed in under eight months.
McDermott has successfully completed the transportation, installation, and commissioning of the Kikeh subsea gas lift project, awarded by PTTEP Sabah Oil Limited. Conducted in deep waters off the coast of Sabah, East Malaysia, the project was completed in under eight months.
Facing declining interest from European companies in its gas storage capacity, state-owned operator UkrTransGaz is focusing on integrating into the European Union market and implementing measures to strengthen the competitiveness of its infrastructure despite security challenges.
Facing declining interest from European companies in its gas storage capacity, state-owned operator UkrTransGaz is focusing on integrating into the European Union market and implementing measures to strengthen the competitiveness of its infrastructure despite security challenges.
ONEOK and MPLX announce a collaboration to build an LPG export terminal on the U.S. Gulf Coast, strengthening their presence in the NGL sector.
ONEOK and MPLX announce a collaboration to build an LPG export terminal on the U.S. Gulf Coast, strengthening their presence in the NGL sector.
Baker Hughes has secured an order from Tecnicas Reunidas for six gas compression trains and six propane compressors, key elements in the third expansion phase of the Jafurah field in Saudi Arabia.
Moldova begins routing gas to Transnistria with the help of €30 million from the EU, ensuring supply until February 10 despite the energy crisis.
Moldova begins routing gas to Transnistria with the help of €30 million from the EU, ensuring supply until February 10 despite the energy crisis.
A Scottish court has overturned the licenses granted by British authorities to Shell and Equinor to develop two oil and gas fields in the North Sea, prompting a delay in their exploitation and requiring new environmental assessments.
A Scottish court has overturned the licenses granted by British authorities to Shell and Equinor to develop two oil and gas fields in the North Sea, prompting a delay in their exploitation and requiring new environmental assessments.
Baker Hughes has signed a major contract to supply modular LNG systems and a power island, while also entering into a multi-year service agreement to support phases 1 and 2 of the Plaquemines LNG project in Louisiana.
Baker Hughes has signed a major contract to supply modular LNG systems and a power island, while also entering into a multi-year service agreement to support phases 1 and 2 of the Plaquemines LNG project in Louisiana.
GRTgaz renames itself NaTran to highlight its commitment to transforming its gas networks, aiming to become a key player in the transport of decarbonized gas by 2030. This change in identity accompanies an ambitious project to address energy and climate challenges.
The separatist authorities of Transnistria accuse Chisinau of diverting the European aid of 30 million euros intended for gas purchases. Disagreements persist over the distribution of resources amid the ongoing energy crisis following the halt of Russian deliveries.
The separatist authorities of Transnistria accuse Chisinau of diverting the European aid of 30 million euros intended for gas purchases. Disagreements persist over the distribution of resources amid the ongoing energy crisis following the halt of Russian deliveries.
Saneg, in partnership with international players, transforms flared gas into a usable resource, reducing energy dependency while strengthening its position in a pressured energy market.
Saneg, in partnership with international players, transforms flared gas into a usable resource, reducing energy dependency while strengthening its position in a pressured energy market.
Morocco is investing in a 990 MW gas power plant, backed by local and international financing, to achieve strategic and economic objectives.
Morocco is investing in a 990 MW gas power plant, backed by local and international financing, to achieve strategic and economic objectives.
The Investment Promotion Agency (APIX) and the Senegalese Gas Network (RGS SA) are formalizing a key partnership to develop a gas pipeline network, a crucial step to support the exploitation of the country's natural gas reserves.
Shell has completed the acquisition of RISEC Holdings, consolidating its presence in the ISO New England market with a 609 MW combined-cycle power plant.
Shell has completed the acquisition of RISEC Holdings, consolidating its presence in the ISO New England market with a 609 MW combined-cycle power plant.
ExxonMobil and Qatar Energy begin a strategic drilling operation off the coast of Cyprus, targeting new natural gas deposits. This initiative reflects the European Union's quest to diversify its energy supply sources.
ExxonMobil and Qatar Energy begin a strategic drilling operation off the coast of Cyprus, targeting new natural gas deposits. This initiative reflects the European Union's quest to diversify its energy supply sources.
Global natural gas markets will remain tight in 2025, with rising demand meeting slower supply growth. Geopolitical tensions could further exacerbate these market pressures.
Global natural gas markets will remain tight in 2025, with rising demand meeting slower supply growth. Geopolitical tensions could further exacerbate these market pressures.
European gas reserves have dropped by more than 17% in one year, while the Title Transfer Facility (TTF) futures contract exceeds 50 euros/MWh. The European Union raises its storage targets to secure winter supply.
Algeria partners with Chevron to evaluate hydrocarbon resources in its Mediterranean waters. This collaboration could reshape the country’s energy strategy and attract significant international investments.
Algeria partners with Chevron to evaluate hydrocarbon resources in its Mediterranean waters. This collaboration could reshape the country’s energy strategy and attract significant international investments.
The American giant Chevron joins Greece's natural gas exploration sector, targeting resource-rich zones. This strategic initiative aligns with the expansion of hydrocarbon operations and strengthens Europe's energy independence.
The American giant Chevron joins Greece's natural gas exploration sector, targeting resource-rich zones. This strategic initiative aligns with the expansion of hydrocarbon operations and strengthens Europe's energy independence.
The Mozambique LNG project, led by TotalEnergies, remains frozen since 2021. The restart of this $20 billion gas mega-project depends on restoring security in the Cabo Delgado region and lifting the ""force majeure"" clause.
The Mozambique LNG project, led by TotalEnergies, remains frozen since 2021. The restart of this $20 billion gas mega-project depends on restoring security in the Cabo Delgado region and lifting the ""force majeure"" clause.
In Moldova, the end of Russian gas deliveries has plunged several villages under Moldovan control in Transnistria into a severe energy crisis, highlighting the logistical and economic challenges of an independent energy supply.
A private company partners with Pine Cliff Energy to secure natural gas supply for an off-grid data center in Alberta under a 25-year contract based on NYMEX market prices.
A private company partners with Pine Cliff Energy to secure natural gas supply for an off-grid data center in Alberta under a 25-year contract based on NYMEX market prices.
CNOOC Limited has announced the start of production at the Dongfang 29-1 gas project, located in the Yinggehai Basin, marking a major milestone for sustainable energy supply around Hainan Island.
CNOOC Limited has announced the start of production at the Dongfang 29-1 gas project, located in the Yinggehai Basin, marking a major milestone for sustainable energy supply around Hainan Island.
Liquefied natural gas (LNG) transactions observed on the Market on Close (MOC) are slowing due to high inventories and limited demand, despite the traditionally buoyant winter period.
Liquefied natural gas (LNG) transactions observed on the Market on Close (MOC) are slowing due to high inventories and limited demand, despite the traditionally buoyant winter period.

Advertising