Johan Castberg strengthens Norway as a long-term energy exporter

31 March, at 10.35, the Johan Castberg oil field in the Barents Sea came on stream. The field will be producing for 30 years and bolsters Norway’s role as a reliable and long-term supplier of energy.

At peak, Johan Castberg can produce 220,000 barrels of oil per day, and recoverable volumes are estimated at between 450 and 650 million barrels.

"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. We expect that this major field development with a price tag of NOK 86 billion (2024) will be repaid in less than two years," says Geir Tungesvik, Equinor's executive vice president for Projects, Drilling and Procurement.

12 of the 30 total wells are ready for production, and this is sufficient to bring the field up to expected plateau production in the second quarter of 2025.

"Johan Castberg opens a new region for oil recovery and will create more opportunities in the Barents Sea. We've already made new discoveries in the area and will keep exploring together with our partners. We've identified options to add 250-550 million new recoverable barrels that can be developed and produced over Johan Castberg," says Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway.

The Norwegian supplier industry has accounted for more than 70 per cent of deliveries to the project during the development phase. In operation, this will increase to more than 95 per cent, with a Northern Norwegian share of more than 40 per cent. One of three employees on board the FPSO lives in Northern Norway. 84 per cent of the revenue from the field will be transferred to the Norwegian state through tax and the state's direct participating interest.

The field's supply base and helicopter base are in Hammerfest and will be operated from Equinor's office in Harstad. A total of 30 wells will be drilled on the Johan Castberg field, and drilling operations are expected to continue towards late 2026, which will yield significant activity in Hammerfest.

"Johan Castberg has been a massive and challenging project, and I want to extend my very sincere thanks to everyone who contributed on the road leading to first oil and operation, both our partners Vår Energi and Petoro, our suppliers and our own employees. 79 million hours of work have been recorded in the project, and the HSE results are very good. Now the field will produce for 30 years and generate substantial values," Tungesvik says.

Facts about Johan Castberg

• Licensees: Equinor Energy AS (operator) 46.3%, Vår Energi ASA 30%, Petoro AS 23.7%.
• The Johan Castberg field consists of the Skrugard, Havis and Drivis discoveries, which were made between 2011 and 2014.
• Location: Johan Castberg is located approx. 100 kilometres north of the Snøhvit field in the Barents Sea in blocks 7219/9 and 7220/4,5,7 approximately 150 km from Goliat and around 240 km from Melkøya. The water depth is 360-390 metres, and Skrugard and Havis are 7 km apart.
• Johan Castberg is the second oil field in the Barents Sea and Norway’s northernmost field.
• The field development is based on a production vessel tied back to an extensive subsea field with a total of 30 wells distributed between 10 well templates and two satellite structures.

FPSO Almirante Tamandaré producing and on hire

SBM Offshore announces that FPSO Almirante Tamandaré is formally on hire as of February 16, 2025 after achieving first oil and the completion of a 72-hour continuous production test leading to Final Acceptance.

FPSO Almirante Tamandaré is the largest oil producing unit in Brazil with a processing capacity of 225,000 barrels of oil and 12 million m3 of gas per day. This FPSO has an estimated greenhouse gas (GHG) emission intensity below 10 kgCO2e/boe[1] and benefits from emission reduction technologies such as the closed flare technology which increases gas utilization, preventing it from being burnt into the atmosphere. FPSO Almirante Tamandaré is the first unit in Brazil to receive a Sustainability-1 Notation[2] certification reflecting the Company’s efforts to reduce emissions over the lifecycle of the vessel.

FPSO Almirante Tamandaré is owned and operated by special purpose companies owned by affiliated companies of SBM Offshore (55%) and its partners (45%). The FPSO will operate under a 26.25-year charter and operation services contracts with Petróleo Brasileiro S.A. (Petrobras).

FPSO Almirante Tamandaré is installed at the Búzios unitized field located in the Santos Basin, approximately 180 kilometers offshore Rio de Janeiro in Brazil. The Búzios unitized field is operated by Petrobras (88.99%) in partnership with CNODC (3.67%) and CNOOC (7.34%).

TechnipFMC Awarded Major iEPCI™ Contract for Shell’s Gato do Mato Development Offshore Brazil

TechnipFMC (NYSE: FTI) has been awarded a major(1) integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract by Shell for its Gato do Mato greenfield development offshore Brazil.

In addition to integrated execution, the project will utilize Subsea 2.0® configure-to-order (CTO) subsea production systems. Combining both offerings will enable streamlined project management through a single interface and accelerate time to first oil.

Jonathan Landes, President, Subsea at TechnipFMC commented: “Throughout our 30-year partnership with Shell, we have built an overwhelmingly strong record of delivery. Our success in integrating and industrializing innovative solutions gives us the utmost confidence in providing the schedule certainty Shell requires for this flagship project offshore Brazil.”

TechnipFMC Awarded Large iEPCI™ Contract for Equinor’s Johan Sverdrup Phase 3 Offshore Norway

TechnipFMC (NYSE: FTI) has been awarded a large integrated Engineering, Procurement, Construction, and Installation contract by Equinor for the Johan Sverdrup Phase 3 development in the Norwegian North Sea.

The Johan Sverdrup field, which originally began production in 2019, is now one of the largest developments in the region. This latest phase will increase production by tying in additional wells to the current infrastructure, which is powered by low-emission resources onshore.

Jonathan Landes, President, Subsea at TechnipFMC commented: “It is a privilege to contribute once again to the development of this field, where we delivered subsea production systems for each of the previous phases. We are excited to leverage our integrated execution model to further enhance this world-class offshore asset.”

This direct award follows an integrated Front End Engineering and Design study. TechnipFMC will design, manufacture, and install subsea production systems, umbilicals, and rigid pipe that will tie new templates into the existing Johan Sverdrup field center.

Shell starts up new facility in UK North Sea, restoring production from the Penguins field

Shell has restarted production at the Penguins field in the UK North Sea with a modern floating, production, storage and offloading (FPSO) facility (Shell 50%, operator; NEO Energy 50%). The previous export route for this field was via the Brent Charlie platform, which ceased production in 2021 and is being decommissioned.

Peak production is estimated at around 45,000 barrels of oil equivalent per day (boe/d) and currently has an estimated discovered recoverable resource volume of approximately 100 million boe. Although primarily oil production, Penguins will also produce enough gas to heat around 700,000 UK homes per year.

The new FPSO will have around 30% lower operational emissions compared with Brent Charlie and is expected to extend the life of this important field by up to 20 years.

“Today, the UK relies on imports to meet much of its demand for oil and gas,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “The Penguins field is a source of the secure domestic energy production people need today, and the FPSO is a demonstration of our investment in competitive projects that create more value with less emissions.”

Although oil will be transported by tanker to refineries outside of the UK, these include ones that supply refined products like petrol and diesel back to the UK because of its limited refining capacity.

Natural gas will be transported through the existing pipeline to the St Fergus gas terminal in the north-east of Scotland, which supplies the UK’s national gas network.

The redevelopment of the Penguins field has involved drilling additional wells, which are tied back to the new FPSO. The field is in 165 metres (541 feet) of water depth, around 150 miles north-east of the Shetland Islands. Discovered in 1974, the field previously produced oil and gas between 2003 and 2021.

Notes to editors

• The Penguins FPSO is operated by Shell U.K. Limited, which is a subsidiary of Shell plc. As announced on December 5 2024, Shell U.K. Limited and Equinor UK Ltd are to combine their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%). The joint venture will take on Shell’s equity interests in Penguins.
• The Penguins FPSO was built by Sevan – a technology, design and engineering company based in Norway – and is the first new Shell-operated facility in the UK North Sea for over 20 years. It is a compact facility with a cylindrical hull design, providing more efficiency and flexibility. It has a flareless system, which recycles vapour back into the tanks and reduces emissions.
• According to the UK regulator, the North Sea Transition Authority, production of oil and gas has declined by 11% in the last year (Source: NSTA) and UK production is falling faster than demand (Source: DESNZ).
• The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
• Current estimated discovered recoverable resource volumes of this development are approximately 100 million boe. The estimate of resource volumes is currently classified as 2P (the sum of proved reserves plus probable reserves) and 2C (the best estimate scenario of contingent resources) under the Society of Petroleum Engineers’ Resource Classification System.
• On Shell’s Capital Market Day in 2023, Shell committed to deliver upstream and integrated gas projects coming on stream between 2023 to 2025 with a total peak production of greater than 500,000 barrels of oil equivalent per day. Penguins is expected to contribute to this commitment.
• Our target is to become a net-zero emissions energy business by 2050. By the end of 2023, we had achieved more than 60% of our target to halve emissions from our operations (Scopes 1 and 2) by 2030, compared with 2016.

ONGC and bp sign contract to enhance production from Mumbai High

Oil and Natural Gas Corporation Limited (ONGC) and bp have signed a contract under which bp will serve as the Technical Services Provider (TSP) for the Mumbai High field, India’s largest and most prolific offshore oil field.

ONGC will retain ownership and operational control of the field. Under the terms of the contract, bp will receive a fixed fee for a period of two years for its deployed personnel, followed by a service fee linked to incremental oil and gas production. bp will work in close collaboration with ONGC to stabilize the field’s current production decline and restore it to a robust growth trajectory.

Leveraging its extensive experience in managing some of the world’s largest oil fields, bp will optimize oil recovery at Mumbai High by conducting comprehensive reviews of sub-surface models, implementing system optimizations, and enhancing reservoir management practices. This partnership is anticipated to significantly boost domestic oil and gas production, thereby increasing revenue for ONGC and benefiting the people of India, while also yielding higher service fee returns for bp.

bp will assemble a team of technical experts to commence work by March 2025. In support of this initiative, both companies have already established a Senior Management Team and a Joint Management Team to ensure seamless project execution.

Honourable Minister of Petroleum and Natural Gas (MoPNG) Shri Hardeep Puri, in whose office the signing took place, said: “India’s quest towards energy self-sufficiency under the dynamic leadership of Hon’ble PM Narendra Modi Ji gets a massive boost as ONGC onboards its energy partner bp as Technical Service Provider for the Mumbai High Field, landmark field which has been providing energy security to us since 1974. While ONGC continues to retain the ownership of the field, this unique technology collaboration with BP’s expertise in managing complex mature reservoirs and implementing advanced recovery technologies and best operational practices will help in enhancing the production from this iconic field.”

Reflecting on the strategic importance of the collaboration, Secretary, Ministry of Petroleum and Natural Gas, Government of India, Shri Pankaj Jain, said: “This strategic engagement represents a critical step in leveraging global best practices and cutting-edge technologies to optimize production at Mumbai High. I am confident that through this collaboration, we will reinforce our commitment to energy self-reliance and sustainable growth, ensuring a brighter future for India’s energy landscape.”

Shri Arun Kumar Singh, Chairman and CEO, ONGC, said “By engaging a TSP, ONGC aims to realize the enhanced potential of the Mumbai High field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India's energy landscape.”

Kartikeya Dube, Head of country and Chairman bp India said, “We are extremely proud and privileged to be selected as a partner by ONGC and look forward to bringing our international experience and technical expertise to the Mumbai High field. This opportunity further underpins our commitment to exploration and the production of oil and gas in India, creating value for both companies and helping support the country’s vision for energy independence and security.”

bp and Iraq reach final agreement for redevelopment in Kirkuk

bp today reached agreement on all contractual terms with the Government of the Republic of Iraq to invest in several giant oil fields in Kirkuk providing for the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration. The agreement is subject to final governmental ratification.

Execution of the agreement will follow upon endorsement by the Council of Ministers, after which bp will work closely under the guidance of the Government of Iraq in setting up the new operator, which will be an unincorporated organization comprising predominantly personnel from the North Oil Company (NOC) and North Gas Company (NGC), but also with secondees from bp. The new operating organization will take over operations at Kirkuk from NOC. Subsequent to this agreement, bp expects to form a standalone incorporated joint venture to hold its interests in the operator.

The agreement follows a memorandum of understanding between bp and Iraq signed in July 2024 – of which technical terms were agreed in December and the majority of commercial terms agreed in January – together with previous work bp has done on the fields in Kirkuk from 2013 to 2019.

The agreement is for an initial phase and includes oil and gas production of more than three billion barrels of oil equivalent. It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields – Bai Hassan, Jambur and Khabbaz – in Federal Iraq, all of which are currently operated by the NOC.

The wider resource opportunity across the contract and surrounding area is believed to include up to 20 billion barrels of oil equivalent.

bp executive vice president William Lin said: “This agreement builds on our longstanding and strategic relationship with the Government of Iraq and delivers access to a material new resource opportunity, within one of the world’s most prolific hydrocarbon provinces. It will enable us to bring our experience of managing giant fields to realise the potential of this important asset for Iraq, working alongside and in close partnership with NOC and NGC. This opportunity is fully in line with our priority of pursuing new growth opportunities for bp as we strengthen and high-grade our portfolio across the world. We thank the Government of Iraq for the trust and privilege to deepen our cooperation in-country.”

Under the terms of the agreement, bp will work with NOC, NGC and the new operator to stabilize and grow production. Work will include a drilling programme, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects.

Under the agreement, bp’s remuneration will be linked to incremental production volumes, price and costs. bp will be able to book a share of production and reserves proportionate to the fees it earns for helping to increase production.

Investment in the project has the potential to bring opportunity and economic growth into the Kirkuk region – creating tangible benefits for the local population, improving supply chain capability alongside job creation.

The project is fully accommodated within bp’s disciplined financial framework and exceeds bp’s investment returns hurdles. bp expects the project to commence in 2025.