Norway Goverment 1st Barents Sea Oil Field

OSLO (AP) — The Norwegian government on Friday gave its go ahead to the development of the first offshore oil field in the Arctic waters of the Barents Sea, the Goliat field off the country's northern tip.

The estimated 28 billion kroner (4.34 billion) project still requires parliament's approval, which is seen as assured since the three-party coalition government controls a majority in the legislature.

"Goliat is the first oil field in the Barents Sea that will be developed. Goliat is the biggest industrial project to ever be undertaken in northern Norway," said oil Minister Terje Riis-Johansen.

The field is being developed by Eni Norge AS, the Norwegian branch of Italy's Eni group, with a 65 percent stake, and state-controlled Norwegian oil company StatoilHydro ASA, with 35 percent.

The field was discovered in 2000 and is about 40 miles (70 kilometers) off the northern town of Hammerfest, which will be its land base.

The field is expected to reach a peak production of about 100,000 barrels of oil plus natural gas per day. Eni plans to start production in 2013, and keep the field running for at least 15 years.