Norway's Equinor sells first Johan Castberg crude cargo

Market: Crude oil
18/03/25

Norway's state-controlled Equinor has sold its first cargo of crude from the new Johan Castberg field in the Barents Sea to Spanish firm Repsol ahead of first oil next month, according to market sources.

Repsol will probably run the crude at its 220,000 b/d Bilbao refinery, the sources said.

The Johan Castberg field had been expected to come on stream in the final quarter of 2024, but start-up was delayed, first to January-February this year because of bad weather, and more recently to April.

Equinor delayed the first loading of Johan Castberg crude to 14-17 April from 21-24 February. The April export programme comprises four 700,000 bl cargoes, with Equinor loading three and Johan Castberg partner Var Energi loading the fourth. Three of the April cargoes are unsold, and Equinor is planning to issue separate tenders for them.

It is not immediately clear what price the first cargo fetched. Traders have said previously that the grade could be priced at a premium to sweet middle distillate-rich Norwegian grades such as Troll or Alvheim.

Johan Castberg crude will also be rich in middle distillates and have have a gravity of 34.7°API with a sulphur content of just 0.16pc when the field starts production, according to an assay. The field is expected to produce 220,000 b/d at plateau and has estimated recoverable reserves of 450mn-650mn bl.

Equinor operates Johan Castberg with a 50pc stake, Var Energi has 30pc and Norwegian state-owned Petoro has 20pc.

By Lina Bulyk and Sanjana Shivdas

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