StatoilHydro expects 1.9 million boe/d in 2008

Uchenna Izundu
International Editor

LONDON, Dec. 10 -- StatoilHydro ASA said it expects to produce 1.9 million boe/d in 2008 and to receive an entitlement of 1.75 million boe/d from its international projects.

The figures differ because of the effects of production-sharing agreements, StatoilHydro explained.

Problems with domestic projects will affect production in 2008, the company added, referring to Hammerfest LNG, Ormen Lange, and Kvitebjorn. Hammerfest suffered a seawater leakage in a heat exchanger, and production has been stopped to repair it. Gas production is expected to restart in early January.

StatoilHydro tentatively expects to see an equity average of 25,000–30,000 boe/d. "The challenges associated with the start-up of the gas liquefaction plant will, however, entail a slower escalation of production than originally assumed," the company said.

StatoilHydro will repair the rich gas pipeline from Kvitebjorn to Kollsnes, which was most likely damaged by a ship's anchor. StatoilHydro will lose gas and condensate from Kvitebjorn and about 18,000 boe/d of the 30,000 boe/d of the gas exported from Visund. Production from all three will be "slightly lower" than the estimated 1,735, 000 boe/d given on Nov. 12.

Production from Ormen Lange field is ramping up, StatoilHydro reported, but slower-than-expected drilling progress is expected to affect production in 2008, it said.

The company is behind in drilling new production wells in 2006-07, which is expected to have a knock-on effect on 2008's hydrocarbons output. StatoilHydro has budgeted 18 billion kroner for its exploration program, in which 70 exploration wells are expected to be completed. In 2007 exploration expenditure is expected to be 15-16 billion kroner.

Capital expenditure for 2008 is estimated at roughly 75 billion kroner compared with 65 billion kroner in 2007.

StatoilHydro said: "Planned turnarounds and well workovers on the Norwegian continental shelf in 2008 are estimated to reduce production with 15,000-20 000 boe/d compared to 2007."


Contact Uchenna Izundu at uchennai@pennwell.com

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