Statoil stops oil development work at Snohvit

Statoil AS and partners have decided to cease oil zone development work at Snohvit field in the Barents Sea as analyses show its development would not be economical.

Sept. 27, 2007

By OGJ editors
HOUSTON, Sept. 27 -- Statoil AS and partners have decided to cease oil zone development work at Snohvit field in the Barents Sea as analyses show its development would not be economical.

"This decision is final," said Geir Pettersen, senior vice-president for the Tromso Patch business cluster. Pettersen said the upcoming startup of gas production from Snohvit will prevent the oil zone being developed at a later stage.

Earlier this summer the partnership drilled an appraisal well in the Snohvit structure to confirm the presence of oil and the thickness of the oil zone in its western part. The well confirmed the presence of oil.