E&P Highlights: June 30, 2025

Equinor and partners have made an oil discovery in the Barents Sea, preliminarily finding between an estimated 9 MMbbl and 15 MMbbl of oil in what it calls the least explored ocean on the Norwegian Continental Shelf.

Oil was found in the Tubåen formation about 1,769 m below the seabed in 345 m of water, Equinor said June 30. Exploration well 7220/7-CD-1H was drilled by the Transocean Enabler in the Drivis structure, as an extension from a production well, about 12 km southwest of the discovery well on the Johan Castberg Field.

The exploration well encountered a 52-m oil column in sandstone with 139 m total of “good and very good reservoir quality,” according to the Norwegian Offshore Directorate. Equinor and partners Vår Energi and Petoro will consider a tie-in of the discovery to the Johan Castberg field.

“Only a short time after Johan Castberg came on stream and is producing at full capacity, we have made a new discovery that can provide additional reserves for the field,” said Grete Birgitte Haaland, Equinor’s senior vice president for E&P North. “The Johan Castberg volume base originally estimated at 450–650 million barrels. Our clear ambition is to increase the reserves by a another 250–550 million barrels.”

The operator and partners plan to drill six new increased oil recovery wells and continue exploration activity. They also will develop Isflak as a rapid field expansion, targeting startup in 2028, Haaland said.

“With the Johan Castberg’s production facilities in place, it becomes more attractive to explore the neighboring areas,” Equinor said. “Going forward, two rigs will drill both production wells and new exploration wells in the areas around Johan Castberg and Goliat. Equinor will drill one to two exploration wells annually around Johan Castberg.”

Equinor last week said the Johan Castberg FPSO reached peak production capacity of 220,000 bbl/d.

Exploration

BOEM to Offer 15,000 Blocks in Gulf Oil, Gas Lease Sale

The Bureau of Ocean Energy Management (BOEM) published on June 25 a notice for an oil and gas lease sale in the Gulf of America (GoA) covering roughly 80 million acres.

Lease Sale 262 will offer 15,000 unleased blocks ranging in water depths of 3 m to 3,400 m (9 ft to 11,115 ft). The blocks are 3 miles to 231 miles offshore across the Gulf’s Western, Central and Eastern planning areas.

The sale, in the body of water formerly known as the Gulf of Mexico, is the first of three planned lease sales in the Gulf under the 2024–2029 Outer Continental Shelf Oil and Gas Leasing Program. The lease sale bid reading is proposed for Dec. 10, 2025.

“To support robust industry participation, lower production costs, and unleash the full potential of the Gulf of America’s offshore energy reserves, BOEM is proposing a royalty rate of 16 ⅔ percent for both shallow and deepwater leases—the lowest rate for deepwater since 2007,” said BOEM’s Acting Regional Director for the GoA Laura Robbins.

BOEM royalty rates for oil and gas leases in federal waters. BOEM has set a 12.5% royalty rate for shallow water leases (water depths less than 200 m) and a 18.75% royalty rate for deepwater leases (water depths of 200 m or more).

BOEM is also in the process of developing a new National Outer Continental Shelf Oil and Gas Leasing Program that will include additional leasing opportunities.

Planning for Sale 262 was announced in late December 2023 by the Interior Department.

The Gulf of America Outer Continental Shelf spans approximately 160 million acres and is estimated to contain around 48 Bbbl of undiscovered, recoverable oil and 141 Tcf of natural gas.

Following a 60-day comment period for the affected state governors and local governments, BOEM will issue a final notice of sale in the Federal Register at least 30 days before the scheduled public bid reading, which will be live streamed via Zoom.

National Ocean Industries Association President Erik Milito said Lease Sale 262 is a timely step that reaffirms the U.S.’s commitment to offshore energy leadership.

“It underscores the vital role the Gulf of America plays in providing affordable, reliable energy, supporting hundreds of thousands of good-paying jobs, and reinforcing our national security,” he said.

Field development

TotalEnergies Acquires Stake in Block 53 Offshore Suriname

Spain-headquartered Moeve, formerly CEPSA, has agreed to sell its 25% interest in Block 53 offshore Suriname to TotalEnergies, the companies said June 27.

Financial details of the transaction were not disclosed.

TotalEnergies will join operator APA, which holds a 45% stake, and Petronas (30%) in the license. The block is east of Block 58, where TotalEnergies and partners APA are developing the GranMorgu project containing the Sapakara and Krabdagu oil discoveries.

“This acquisition brings new resources to the development of our low-cost and low-emission GranMorgu project,” said Javier Rielo, senior vice president of Americas E&P at TotalEnergies. “It also proves how TotalEnergies will leverage GranMorgu infrastructure to develop profitably additional resources and extend its production plateau, strengthening the position of the company in the offshore of Suriname.”

Shell, Partners Boost Gas Production at Norway’s Ormen Lange Field

Subsea compression to boost production has started at the Shell-operated Ormen Lange gas field in the Norwegian Sea, partner Vår Energi said June 27.

Goals are to increase field recovery from 75% to 85% with the help of two subsea compression stations, targeting an additional 30 Bcm to 50 Bcm of gas from the field.

Holding a 17.8% stake, Shell is the operator of the field. Partners include Vår Energi (6.3%), Petoro AS (36.5%), Equinor Energy AS (25.3%) and Orlen Upstream Norway AS (14%).

Vår Energi Starts Up Jotun FPSO at Balder Field Offshore Norway

Vår Energi has marked the start of a new era for the Balder Field, with first oil reached via the Jotun FPSO, the company said June 23.

The milestone extends the life of the Norwegian Continental Shelf’s first production license.

With all 14 production wells complete, production is expected to increase by approximately 80,000 boe/d during the next three to four months, the company said.

“Vår Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400 kboepd [thousand barrels of oil equivalent per day] in the fourth quarter of this year,” said Vår Energi CEO Nick Walker. “Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area.

Current production is already at about 30,000 boe/d through the Balder FPU and Ringhorne facilities. Estimated gross proved plus probable recoverable reserves from the project are 150 million boe, the company said.

Vår Energi serves as operator, holding a 90% stake in the Balder Field. Its partner Kistos Energy Norway AS holds the rest.

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Technology

Salunda Deploys Latch Monitoring System Offshore Americas

Salunda on June 26 said the company has deployed its Latch Hawk monitoring system on a semi-submersible rig offshore the Americas, marking the technology’s rollout in the deepwater region.

The technology, which is integrated with a rig’s drilling control system, provides real-time feedback on the status of fingerboard latches in the drilling derrick, serving as a safety barrier to DROPS (Dropped Objects Prevention Scheme) incidents on drill floors.

The company said the system confirms the status of each latch and gives a warning if latches are stuck or out of specification.

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Business

Petrobras Awards Fugro Inspection, Monitoring Contracts

Fugro has secured four multi-year contracts valued at $340 million from Petrobras to inspect and monitor critical subsea infrastructure in Brazil, according to a June 27 news release.

Three of the four-year contracts with one-year extension options replace existing contracts that will expire later this year. The fourth contract is new, Fugro said. The contracts, which will begin in fourth-quarter 2025, will put the company’s remote operations expertise, including remote ROV piloting, to use.

“These new contracts from Petrobras demonstrate the deep value of our long-standing partnership in Brazil’s offshore energy sector,” said Céline Gerson, Fugro’s group director in the Americas and president of Fugro USA. “Being selected for this crucial work, which will extend through the decade, fuels our continued drive for innovation and unwavering commitment to excellence as we work collaboratively to ensure a responsible and resilient energy future in the region.”

Exail Lands Contract to Equip FPSOs with Real-Time Measurement Technology

Brazilian offshore service company Mitang has awarded Exail a contract for real-time monitoring technology that will be used aboard four FPSO units operated by Petrobras.

Exail on June 30 said it will deliver 30 Quadrans Attitude and Heading Reference Systems, which provide pitch, roll and heading measurements in real time. The technology monitors platform stability and aims to ensure safe, uninterrupted operations during offshore activities, the company said.

“This collaboration with Exail reinforces our commitment to operational excellence and safety in Brazil’s offshore sector,” said Mitang CEO Diego Fernandes. “By integrating Quadrans technology on Petrobras FPSOs, we are enhancing real-time monitoring capabilities that are critical for managing complex rig moves with greater confidence and precision.”

Ashtead, OSC Partner to Strengthen Environmental Compliance for Offshore Energy

Subsea technology provider Ashtead Technology and Ocean Science Consulting (OSC) on June 26 announced their partnership to streamline delivery of environmental monitoring, mitigation solutions and compliance services for the offshore energy sector.

As part of the agreement, Ashtead will manage and deliver the subsea technology and solutions to monitor and mitigate the environmental impact of subsea operations, according to a news release. OSC will provide key compliance strategies, underwater noise monitoring, data analysis and effective regulatory reporting.

The services target oil, natural gas and offshore wind energy developers operating offshore.

“Our clients in offshore wind and oil and gas are under growing pressure to deliver low-impact operations that meet stringent environmental expectations,” said Ross MacLeod, head of asset integrity at Ashtead Technology. “Together with OSC, we’re removing the complexity from marine compliance—delivering an unrivalled integrated offering to protect marine ecosystems.”

Hart Energy Staff contributed to this report.