Statoil hails Arctic deal as production edges up
STATOIL yesterday gave an upbeat assessment of its new Arctic oil exploration deal in Russia yesterday as it reported forecast-beating first quarter production figures.
The Norwegian oil and gas company said it was optimistic about a new tie-up with Rosneft to drill for oil in the Arctic, although it said the project was high risk.
Statoil will be a minority partner with Rosneft in the firm’s latest venture in the region. The firm has been drafted in to lend industry know-how to the search for fuel in Russian Arctic waters, where there is an estimated 2bn tonnes of oil. Chief executive Helge Lund said: “This fits our exploration strategy like a glove.
“It is a high risk [project] in terms of geology and technology, but the upside is big if we succeed. We have been [in Russia] for a long time so we know how to operate there.”
Meanwhile the company reported a higher-than-expected increase in production from offshore Norway, where it generated 80 per cent of its quarterly profit.
International production also rose with operations in Brazil and Angola performing strongly.
Oil and gas output in the first quarter rose to 1.97m barrels of oil equivalent per day (boed).
Production was expected to rise to 1.881m boed this quarter, compared with 1.765m boed in the same quarter last year.