Eni’s Norway subsidiary announces plans to increase Barents Sea exploration activity
- September 4, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Oil & Gas
Eni’s Norwegian subsidiary, Vaar Energi, has announced plans to increase exploration activities in the Arctic Barents Sea to boost its oil and gas production in the region. Vaar Energi currently operates Goliat, the only producing oilfield in the Barents Sea, and is a partner in Equinor’s Johan Castberg oilfield project, which is expected to begin production at the end of 2024. The company intends to focus its drilling program in the Barents Sea on discovering additional resources around these two fields over the period 2024-2026.
Environmentalists have criticized oil companies’ plans to explore in the Barents Sea, citing concerns about the impact on the environment and climate change. However, Norway’s Supreme Court rejected a motion to halt Arctic drilling in 2020.
Vaar Energi has hired the COSLProspector offshore drilling rig from China Oilfield Services (COSL), a subsidiary of China National Offshore Oil Corporation (CNOOC), for its drilling program in the Arctic. Equinor, another Norwegian energy company, has also awarded COSL contracts for two additional rigs, COSLPromoter and COSLInnovator, for drilling exploration and production wells. Equinor plans to drill many production and exploration wells in the coming years but has not specified the locations.
Exploration in the Barents Sea is seen as crucial for discovering new oil and gas resources that could support the development of new infrastructure in the region, particularly for gas exports. Currently, gas from the only producing gas field in the Barents Sea, Snoehvit, is exported by tankers after liquefaction at the Hammerfest liquefied natural gas (LNG) plant.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Global wind power growth to slow in 2024 amid rising costs and policy uncertainty
Global wind power growth is anticipated to decelerate this year due to various challenges such as escalating costs, inadequate infrastructure, and policy ambiguity. Installations are projected to increase by nearly 6% in 2024, a significant slowdown compared to the nearly 35% surge observed in 2023…
Europe builds an economic security hub to stop being the battleground
Brussels is trying to harden the EU’s economic backbone before it gets crushed between Washington and Beijing. The new plan the European Commission just unveiled is less about free trade in the old sense and much more about survival in a weaponised global economy.
At the core of the proposal is the creation of an “economic security hub” inside the EU system, meant to act as a nerve centre linking policymakers, regulators and companies. The goal is to spot risks early, coordinate responses and help firms navigate an environment where tariffs, export controls and sanctions are now routine tools of statecraft.
Weaker Q1 results for US and European oil companies as natural gas prices decline
The first quarter of this year saw weaker results for both U.S. and European oil companies, primarily due to a significant decline in natural gas prices compared to the same period last year. This decline contrasts with the record levels seen in 2022, which were driven by increased demand following the…