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Statoil Working to Squeeze Profit From Arctic Deposit at $50 Oil

  • Castberg break-even price already cut to $60 a barrel from $80
  • Floating production unit seen as cheapest way to develop field
Updated on

Statoil ASA is working to reduce the break-even price of its delayed Johan Castberg oil field in the Barents Sea to below $50 a barrel as it seeks to squeeze profit from the project after crude markets collapsed.

Norway’s biggest oil company has already cut the price at which it recoups its costs from the Arctic field to $60 a barrel from $80, it said last month. Now it has “significantly higher ambitions,” Erik Strand Tellefsen, vice president for field development in northern Norway, said Monday.