Norwegian energy company Equinor has received approval to begin drilling a major oil exploration well in the Barents Sea, while also securing a new offshore license to develop carbon dioxide storage.
The Deimos well — which could potentially hold up to 245 million barrels of oil equivalent — will be drilled using the COSL Prospector semi-submersible rig. Its location lies approximately 144 kilometers (90 miles) southwest of the Johan Castberg field and 146 kilometers west of the Snøhvit gas field.
Drilling is expected to commence as early as July 2025. The anticipated resource type in the target reservoir is Havis-grade oil.
Block PL 1238 is operated by Equinor, holding a 40% stake. Its partners — Vår Energi, Aker BP, and Petoro — each own 20%. Notably, the name of the prospect has appeared under several variations, including “Daemos” and “Daimos,” though Norwegian authorities list it as “Deimos.”
In parallel, Equinor’s low-carbon arm has been offered a new CO2 storage license — EXL014 — located in the southern North Sea between the Ekofisk and Yme fields. This marks the 14th license granted by Norway for offshore CO2 storage.
The license comes with a six-year work program, requiring a test exploration well to be drilled after the initial two years.
Relevant: Equinor Working On Promising Carbon Storage Potential Beneath North Sea
Norwegian Minister of Energy Terje Aasland stated, “The government is making it possible for Norway to receive large quantities of CO2 from Europe. The storage will take place on commercial terms, where those with emissions pay for the storage.
“This will be the 14th licence for CO2 storage on the Norwegian continental shelf. This shows that there is interest in offering safe and secure storage of CO2 captured in Europe.”
These developments reflect Norway’s dual strategy of advancing its traditional energy production while accelerating carbon management infrastructure to meet climate goals.
Read more: UK And Norway To Collaborate On Renewable Energy And Cross-Border CO2 Capture
