By OGJ editors
HOUSTON, Sept. 29 -- Statoil ASA is modifying its target for oil and gas production in 2007 by about 3% because its 2006 production is expected to be 3% lower than the earlier prognosis. However, the Norwegian company nevertheless forecasts a 14% production growth from 2006 to 2007.
The revised forecast does not represent any change in Statoil's oil and gas reserves but entails postponed production. Output in 2006 is expected to be 1.14 million boe/d.
The production target for 2007 is being reduced to 1.3 million boe/d. This includes an anticipated 1.06 million boe/d from the Norwegian continental shelf and 240,000 boe/d internationally. The targets are based on an oil price of $60/bbl for 2005-07.
Because of reduced production, production costs per boe will increase for both 2006 and 2007, Statoil said. In July, the company said complex technical challenges in demanding reservoirs meant postponements having a negative effect on production estimates.
Stepping up production in Kristin field will be further deferred. Running up the wells has to be done cautiously to ensure reservoir stability, Statoil said. Plateau production is expected in first quarter 2007, assuming that completion during the winter season goes as planned.
Technical and capacity challenges within drilling and well areas at some established oil fields will lead to deferred production both in 2006 and 2007. This applies mainly to parts of the Tampen area.
In order to complete the highly complex Gulltopp well, it is necessary to strengthen the drilling facility on Gullfaks A, Statoil said. It estimates that production will start on Gulltopp in second quarter 2007.
Gas sales this year are expected to be lower due to reduced gas offtakes. For 2006 and 2007, a somewhat lower utilization has been assumed for the Troll, Kvitebjørn, and Visund fields.
