StatoilHydro calls for acreage access on NCS

Norway's politicians are blocking operators from accessing areas not yet matured on the Norwegian Continental Shelf (NCS), which is preventing its full potential from being realized, according to StatoilHydro's Chief Executive Helge Lund.

Jan. 23, 2009

2 min read

Uchenna Izundu
International Editor

LONDON, Jan. 23 -- Norway's politicians are blocking operators from accessing areas not yet matured on the Norwegian Continental Shelf (NCS), which is preventing its full potential from being realized, according to StatoilHydro's Chief Executive Helge Lund.

Speaking at the oil industry policy seminar in Sandefjord, Lund said acreage access was politically sensitive. "It would be an enormous historical act of negligence if the industry did not point out the possibilities it sees on the NCS. It is up to the government and the Storting (parliament) to decide whether they will act on these possibilities."

StatoilHydro is particularly interested in Nordland 6 and 7 off western Norway, and Troms II, which it believes holds significant resources. Nordland 6 and 7 are estimated to hold 270 million tonnes of oil equivalent. This year, it plans to drill 5-6 strategically important wells with big potential on the NCS.

This will end StatoilHydro's drilling program in nonmatured areas. Lund said, "For a major player like StatoilHydro it is crucial that we have a balanced portfolio of opportunities."

Over the past year, average oil prices have fallen by $100 to $40/bbl, which has impacted heavily on the costs of operations on the NCS where, although there has been a high discovery rate, this has resulted in small volumes. Overall on the NCS has seen a steep drop in production.

StatoilHydro said the outlook was very uncertain but was hopeful that prices would recover in the longer term.

Lund said the financial crisis meant reducing costs with suppliers. "Our ambition is to maintain our production at 1.5 million boe/d for 10 years."

Contact Uchenna Izundu at [email protected].