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Statoil: Johan Castberg development delivered.

(CercleFinance.com) - Statoil today delivered the plan for development and operation (PDO) for the Johan Castberg field in the Barents Sea, a project that is designed to still be profitable at oil prices of under 35 dollars per barrel.

First, the project developed by the Norwegian oil firm was not commercially viable due to a break-even oil price of over 80 dollars per barrel and high capital expenditures of more than 100 billion Norwegian kronor (around 10 billion euros).

However, capex has now been reduced to some 49 billion Norwegian kronor.

The Johan Castberg field - which will have a supply and helicopter base in Northern Norway's Hammerfest and an operations organisation in Harstad - can boast operating coasts at some 1.15 billion Norwegian kronor per year (around 120 million euros).

First oil is scheduled for 2022. It is estimated that Johan Castberg will be producing for over 30 years.

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