Statoil might extract oil from Snohvit gas field after all - report |
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Thu, 08 Feb 2007 09:21
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OSLO (AFX) - Statoil ASA is reconsidering its decision not to extract oil from Norway's Snohvit gas field, after coming under 'massive political pressure' at both the regional and national levels, the Barents Observer is reporting.The daily newspaper says Statoil has confirmed that there talks about the issue ongoing between the various license holders and the Norwegian government.Snohvit, in the north of Norway, contains a thin oil zone and the Norwegian government wants this layer to be extracted before gas production starts this autumn.Statoil is also believed to have been in favour of extracting the oil, but co-licence holders Total, Gaz de France, Hess Corp and RWE AG have been sceptical towards the project, arguing that it cannot be done economically.It is unknown quite how much oil Snohvit contains, but estimates suggest oil resources in the field could be worth as much as 30 bln nkr.Labour unions, industrial leaders, ministries and politicians had all expressed disappointment at Statoil's recent decision not to extract the oil.alastair.reed@thomson.comar/abrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Statoil decides not to drill oil well in Norway's Snohvit gas field 