Goliat Arctic Oil Field Value Slashed By ENI

Published at 05:39PM - 06/06/16

Oil supermajor Eni has reportedly written down the value of its Goliat offshore Arctic oil field by 6.6 billion NOK (£558.68 million), Norwegian online newspaper EDGAR.NO reported.

The Italian operator took the decision based on falling crude prices and its impact on the three-year delayed project at the northernmost offshore oil field.

“The main reason is the low price of oil. We expect lower earnings from the field than we have previously assumed and therefore, we have written it down”, said Eni Norge head of communications Andreas Wulff, as quoted by EDGAR.NO.

Goliat Arctic Oil Field Value Slashed By ENI

It has been a bumpy ride for Goliat, with the field meant to start production in 2013 but suffered a delay of three years.

First, the Norwegian Petroleum Safety Authority (PSA) found repeated safety breaches, even after it granted approval for the field to start production by the end of February 2016. Still in February, PSA found that Eni had not rectified the issues raised in a previous audit and production start-up had to be postponed once again.

As well as this, there were also delays at the Hyundai shipyard in South Korea but in March 2016, the field finally started producing from what its operator claims to be the world’s largest and most advanced cylindrical floating production storage offloading (FPSO) vessel.

Goliat To Produce 100,000 bpd

Goliat was the first oil field to start production in the Barents Sea. It is located in an ice-free region, 53 miles northwest of Hammerfest.

The field has estimated reserves of around 180 million barrels of oil equivalent and is expected to produce 100,000 barrels of oil per day (bpd) once it reaches full production.

 

Eni holds a 65% interest in the production licence, while Statoil holds 35%.

Last updated on 10:46AM - 07/06/16