Equinor, Vår Energi and Petoro have agreed to invest just over Nkr4bn ($400m) in the first discovery to be tied-back to the Johan Castberg oilfield in the Barents Sea.
The project partners reached the investment decision eight months after the field came on stream.
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This new subsea development, known as Isflak, was identified in 2021 during the ongoing Johan Castberg development.
It is estimated to hold 46 million barrels (mbbl) of recoverable oil, with start-up set to begin in the fourth quarter of 2028.
The development plan for the Isflak discovery involves drilling two wells in a new subsea template, which will be connected to existing subsea facilities through pipelines and umbilicals. All new infrastructure will be situated within the boundaries of the current Johan Castberg licence area.
The Johan Castberg project is located in production licence 532 (PL 532).
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By GlobalDataThe Isflak discovery under development is within the same licence.
Equinor project development senior vice-president Trond Bokn said: “A rapid development is possible because we can copy standardised solutions from Johan Castberg.
“The reservoir is in the same licence and is similar to the discoveries we have developed previously, which means that we can copy equipment and well solutions. Johan Castberg has been developed as a future hub in the area.
“Isflak from 2021 is the first of several discoveries that are now being matured as additional volumes. This will have ripple effects for Norwegian suppliers.”
The Johan Castberg field comprises the Skrugard, Havis and Drivis discoveries made between 2011 and 2014.
Situated in the Barents Sea, the field lies approximately 240km from Hammerfest and around 100km north of the Snøhvit field.
The development of Johan Castberg involves a floating production, storage and offloading vessel (FPSO) connected to subsea infrastructure totalling 30 wells across ten subsea templates and two satellite structures.
The Johan Castberg production vessel was towed to the field in August 2024 and production started in June this year.
Equinor has submitted an application to the Ministry of Energy seeking confirmation that it has fulfilled its impact assessment obligations and requesting an exemption from the requirement to submit a plan for development and operation.
Johan Castberg is the latest oil production hub to come online on the Norwegian Continental Shelf (NCS).
Equinor operates the field with a 46.3% stake, while Vår Energi holds 30% and Petoro 23.7%.
Having begun operations in March, Johan Castberg is currently producing 220,000 barrels per day.
New recoverable wells will extend plateau production from Johan Castberg.
Presently, the field has estimated recoverable volumes of between 450mbbl and 650mbbl.
Equinor North exploration and production senior vice-president Grete Birgitte Haaland said: “The partnership is already planning six new wells for improved oil recovery, and we will explore more in the area.
“Equinor’s ambition is to maintain the production level on the NCS from 2020 until 2035, although production from the current fields will decline. A significant part will come from new wells and projects.
“We are planning about 75 subsea developments in the next few years, and this project is a good example of how this can be done efficiently working closely with licence partners and authorities.”
Recently, Equinor started production from the Verdande subsea oilfield in the Norwegian Sea, tying it back to the Norne FPSO vessel.
