Due to the Covid-19 pandemic and weakened Norwegian krone, Equinor has announced cost increases and postponed start-up at the Martin Linge, Johan Castberg and Njord projects on the Norwegian Continental Shelf. The costs related to Martin Linge have increased by 96% since the plans for development and operation (PDO) in 2012. The project, which holds a recoverable potential of 300 Mboe, is expected come on stream in the summer of 2021. The Johan Castberg’s start-up is delayed by one year to 2023. The field’s resources are estimated 450-650 Mboe. The Njord Future, which will recover remaining resources totalling 175 Mboe, has seen its costs surging by 53% since the PDO in 2017 and its planned start-up is delayed to 2021.
According to forecasts (January 2020) from the Norwegian Petroleum Directorate (NPD), Norway’s crude oil production will rise from 1.41 mb/d in 2019 to 1.76 mb/d in 2020 and 2.02 mbd/d in 2024 (+44%), as major oilfields Sverdrup and Castberg will progressively enter production. Total liquids production should increase by more than 34% between 2019 (1.74 mboe/d) and 2024 (2.33 mb/d). Norway’s natural gas output is expected to increase by 3% in 2020 and by 5% over the 2019-2024 period.