There is still ‘considerable’ potential in undiscovered resources in the Barents Sea, said Torgeir Stordal, director general of the Norwegian Petroleum Directorate, encouraging more exploration at a conference in Hammerfest Apr. 25.
Only 6% of resources have been produced in the Barents Sea, while the discovered resources are estimated at just over 30% of the total, he said.
"There are still considerable resources in the Barents Sea, both in fields, discoveries and in exploration opportunities," Stordal said.
Equinor-operated Snøhvit and Var Energi-operated Goliat fields are the foundation for current Barents Sea activity and production. With Johan Castberg field expected onstream next year, new opportunities arise, he said, as new discoveries surrounding Goliat and Johan Castberg can generate value as subsea tiebacks.
Foundational fields, gas export
Snøhvit gas field lies about 140 km northwest of Hammerfest. On stream since 2007, it is the first field to be developed in the Barents Sea. A subsea development, the well stream from is transported into the Hammerfest LNG plant (HLNG) at Melkøya Island in northern Norway for processing. LNG is transported from HLNG by ship to the market. Based on production from Snøhvit field, HLNG capacity will be fully utilized until around 2040, according to a recent Gassco report on export solutions for gas from the Barents Sea.
Goliat is an oil field with a gas cap that was developed and started producing in 2016. The field lies about 50 km southeast of Snøhvit field. Today, the oil is transported to the market by shuttle tankers. “A gas transport solution is necessary for flexibility for accelerated and improved oil recovery and thus better resource utilization of the field,” according to Gassco’s report. Concept selection for gas transport is expected this year, with a final investment decision expected next year.
Work is also under way on a new development solution on [Equinor-operated] Wisting—the largest discovery on the Norwegian shelf yet to be developed, Stordal said.
The Equinor-operated Wisting oil discovery—some 230 km northeast of Snøhvit field—was proven in 2013. Wisting needs transport capacity for associated gas, and in December 2022, the project partners decided to postpone final investment decision until 2026. The plan is to transport gas by pipeline via Johan Castberg, then by pipeline to HLNG and exported from there with current capacity or with a new increased transport capacity.
As additional fields come onstream, the Barents Sea can increase Norway’s contribution as an energy supplier to Europe.
Stordal also addressed the Gassco report on Barents Sea gas export solutions.
"A new profitable gas export solution could provide more incentive for exploration," he said.
In the report, Gassco cited the Norwegian Petroleum Directorate's estimate for southern Barents Sea resource potential in its assessment that it would be economically profitable to develop new gas transport capacity from the Barents Sea. Of the options considered, a DPCU with pipeline transport provides the best shelf economy, Gassco said.
The report, too, notes the need for increased focus on exploration activity “to prove increased gas resources,” strengthening the basis for new gas infrastructure in the Barents Sea.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.