OSLO: Norway’s Statoil presented long-awaited investment plans for its Arctic Johan Castberg oil discovery, which is expected to cost 49 billion Norwegian crowns ($5.89 billion) to develop ahead of a 2022 production start-up.
Statoil initially estimated a cost of more than 100 billion crowns for Castberg, making the field unprofitable at current oil prices, but had vowed to work with suppliers to reduce the investment.
In June, Statoil said revised Castberg plans would be presented by the end of the year.
“This makes the Johan Castberg project the biggest offshore oil and gas development to be given the go-ahead in 2017,” the company said, adding that it would be the sixth field to come on stream off the coast of northern Norway.
Partners in Castberg, which is believed to hold between 450 million and 650 million barrels of oil equivalents, are Statoil with 50 percent, Italy’s Eni with 30 percent and Norway’s state-owned Petoro with 20 percent.
As part of the announcement, engineering company Aker Solutions won a contract worth 4 billion Norwegian crowns to build subsea systems and provide design and procurement services.
“The field is essential for continuous production growth on the Norwegian continental shelf for Statoil from 2022 onwards,” Danske Bank analyst Anders Holte said.
“The field is one of the few remaining large developments offshore Norway and as such it’s important for the long term outlook for Statoil’s liquids production.”
Statoil presents $5.9bn Castberg oilfield development plan
Statoil presents $5.9bn Castberg oilfield development plan
Closing Bell: Saudi main index rises to close at 11,341
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 12.75 points, or 0.11 percent, to close at 11,341.27.
The total trading turnover of the benchmark index was SR5.15billion ($1.37 billion), as 84 of the listed stocks advanced, while 168 retreated.
The MSCI Tadawul Index increased, up 3.84 points or 0.25 percent, to close at 1,530.98.
The Kingdom’s parallel market Nomu lost 233.47 points, or 0.97 percent, to close at 23,810.24. This comes as 31 of the listed stocks advanced, while 39 retreated.
The best-performing stock was Al Majed Oud Co., with its share price surging by 6.02 percent to SR156.80.
Other top performers included Advanced Building Industries Co., which saw its share price rise by 5.75 percent to SR42.32, and Al Kathiri Holding Co., which saw a 5.50 percent increase to SR2.11.
On the downside, the worst performer of the day was Elm Co., whose share price fell by 5.99 percent to SR699.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. and United Cooperative Assurance Co. also saw declines, with their shares dropping by 3.60 percent and 3.08 percent to SR45.02 and SR3.78, respectively.
On the announcement front, Saudi Arabian Refineries Co. has announced the completion of the issuance of the articles of association and the commercial registration of its holding company under the name Masafi Ventures Co. Holding, a wholly owned single-person limited liability company.
SARCO’s share price closed at SR51.80 on the main market, marking a 0.19 percent decrease.
In another announcement, Multi Business Group Co. has announced a project award from the National Housing Co. for the design and execution of the Al Aziziyah Sales Center.
The contract involves all construction, architectural, fit-out, and electromechanical engineering works for the new sales facility, according to a statement on Tadawul.
The company’s share price remained unchanged at SR10 on the parallel market.
