Oil Daily | Johan Castberg Oilfield Boosts Norway's Exports; Iran Adjusts Strategy Amid Middle East Tensions

【Global Oil Supply and Demand】

The Johan Castberg oilfield in Norway's Arctic has reached a full capacity of 220,000 barrels per day. Equinor expects the project to recover its $8 billion investment in less than two years. As Norway's newest oilfield, it will produce crude for 30 years, bolstering Norway's oil exports.

Norway's oil liquids production is expected to rise by 5.2% in 2025 due to the Johan Castberg start-up. However, further exploration is crucial to slow the expected decline in Norway’s oil production in the 2030s.

【Oil-Producing Countries Dynamics】

Iran is maintaining crude oil supply by loading tankers one at a time and repositioning floating storage closer to Asia to secure revenue amid Israeli attacks. This strategy helps maintain oil export flows despite logistical challenges and geopolitical risks.

Namibia is considering incentives and financing options for oil majors as it seeks to develop its offshore oil resources. The country aims to attract international investment for production projects and hopes to emulate Guyana's success as a major oil exporter.

Russia suggests potential collaboration with Saudi Arabia and the U.S. to stabilize oil markets if necessary. This follows past cooperation during the 2020 oil demand crash. Current Middle East tensions could impact oil prices.

【Latest Oil Policies】

Japan is implementing measures to prevent gasoline price spikes due to the Israel-Iran conflict. Japan relies heavily on Middle East oil imports and aims to keep average gasoline prices stable amidst potential disruptions in supply.

【Industry News】

The Mozambique government is ready to lift the force majeure on TotalEnergy’s LNG project as security improves. The $20 billion project, the largest in Africa, was suspended due to violence but is now poised to resume operations.

China has eased restrictions on rare earth exports by approving some export licenses. This move may improve global supply chains, particularly in the automotive and defense industries, which rely on these materials for production.

【Company News】

Canada’s Strathcona Resources supports MEG Energy in exploring merger options after rejecting a $4.4 billion takeover bid. Strathcona, MEG's large shareholder, encourages market-testing the offer against other proposals to seek better alternatives.

Chevron is inviting non-binding bids for its 50% stake in a Singapore refinery as part of an asset streamlining initiative. Chevron seeks to reduce costs and focus on core assets, with potential sales of additional assets in Asia.

【Others】

SpaceX's Starship prototype exploded during a test, highlighting challenges in space energy logistics. The failure affects key energy infrastructure development and raises questions about SpaceX's high-energy approach compared to competitors.