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OIL AND GAS
Oettinger: Norway 'essential' piece of European gas puzzle
by Daniel J. Graeber
Brussels (UPI) Sep 26, 2014


Statoil finds gas in Johan Castberg field in Barents Sea
Stavanger, Norway (UPI) Sep 26, 2014 - The Norwegian government confirmed Friday a natural gas discovery was made by Norwegian energy company Statoil in the Johan Castberg field in the Barents Sea.

Statoil finished drilling a wildcat well, a well drilled into an area not previously known to contain oil or natural gas, in the Johan Castberg area of the Barents Sea.

"Preliminary estimates place the size of the discovery at between 175 billion and 500 billion standard cubic feet of recoverable gas," the Norwegian Petroleum Directorate, a national regulator, said in a statement Friday. "The discovery will be subject to further evaluation."

The well was drilled using the Spitsbergen rig, leased by Statoil from rig company Transocean.

More than a dozen Greenpeace demonstrators took part in a protest against Statoil's drilling plans for arctic waters by boarding the Transocean rig in May. Around half of them surrendered their campaign voluntarily and Statoil said the seven activists who remained behind were arrested by Norwegian police.

In terms of oil, Statoil in July said Johan Castberg had less new oil resources than expected.

Norwegian Energy Minister Tord Lien said his country has the resources and infrastructure in place to serve as a steady partner in the European energy sector.

Lien met in Brussels with European Energy Commissioner Gunther Oettinger during a bilateral energy conference.

Lien said less than 30 percent of the natural gas available on the Norwegian continental shelf has been produced, meaning Norway can be a reliable partner for the European community for decades to come.

"We have both the infrastructure and the resources to remain a stable supplier of natural gas to Europe for decades to come," he said in an address Thursday. "Our production has grown more or less uninterrupted for 20 years."

Norway last year sent 92 percent of its oil exports and at least 98 percent of its gas exports to European markets.

With Europe looking to diversify an energy sector dependent on Russia, Oettinger said Norway stands to reap the benefits.

"Norway is an essential piece in the puzzle," he said.

Norway and Russia are the top natural gas exporters to the European Union. The Norwegian government said its gas accounts for 20 percent of the European market.

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