Equinor Makes Barents Sea Oil Find

Norway's Equinor and its partners Var Energi and Petoro have struck oil in Norway's Barents Sea, following a string of exploration failures in the frontier region over the past year.

The companies drilled a well at production licence 532 near to Equinor's Johan Castberg oil project, the operator reported on March 10. The well encountered 109 m of oil in the Sto and Nordmela formations, with the top reservoir found at a vertical depth of 1,788 m below sea level. It did not encounter an expected gas cap.

The find is estimated to be 31-50mn barrels of recoverable oil in size, Equinor said.

The exploration success comes after Equinor and others drilled a series of dry holes in the Barents Sea over the past year, dimming prospects for its further development. The discovery could be tied back to Castberg, Equinor said, which would improve the project's economics. The 400-650mn barrel Castberg field is on track to start up in 2023, a year behind schedule and above budget.

"Succeeding in the Barents Sea requires perseverance and a long-time perspective," Equinor's senior vice president for exploration in Norway, Nick Ashton, commented. "This discovery strengthens our belief in the opportunities that exist, not least around the Castberg, Wisting, Snohvit [a gas field] and Goliat areas." The company intends to drill three more Barents Sea wells this year.