Eni postpones Arctic project

The operator of the Goliat oil field in the Barents Sea experiences delays and surging costs.


One of the first offshore oil fields to be put in production in the Arctic, the Goliat field, will not be launched before in the third quarter of 2014, project operator Eni Norway informs. Originally, the field production was to start in the fourth quarter of 2013.

The postponement is linked with delays with the production platform, a unit under construction at the Hyunday Heavy Industries, a press release from the company reads. 

“The project has met some unpredicted challenges”, the company admits.

The postponement alone gives Eni Norway an extra 2,5 billion NOK of extra costs.  The total project costs now exceed the original budget with six billion NOK (€140 million) bringing the total cost of the project to 36,7 billion NOK (€5.2 billion).

As previously reported, Eni will in October this year drill an appraisal well at the field with the drilling rig “Scarabeo”. The drilling operations is due to last for about 50 days. The well is one of 22 wells planned drilled at the structure.

When ready, Goliat will produce an annual of 170 million barrels of oil over a 15 years period.

For the Italian oil company, the Goliat project is a major test in Arctic drilling. Experiences from the project are believed to be of key importance when the company takes on operations in the previously disputed Norwegian-Russian waters, in joint projects with Russian state oil company Rosneft.