Statoil to drill appraisal well in Norway's Snohvit gas field |
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Wed, 14 Feb 2007 13:05
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OSLO (AFX) - Statoil ASA said it is to drill an appraisal well in Norway's Snohvit gas field in order to map the oil and gas resources in the structure more closely.According to Statoil, the appraisal well will provide further data on Snohvit's recoverable oil reserves and better map gas reserves in the western part of the field's structure.Once the well is completed, Statoil said the projects partners would then assess whether to continue with the project or not.Despite having already announced that extraction of the gas field's oil layer is not economically feasible, Statoil is believed to have been coming under 'massive political pressure' at both the regional and national levels to re-assess the situation.Snohvit, in the north of Norway, contains a thin oil zone which the Norwegian government wants 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 about the project, arguing that it cannot be done economically.It is unknown quite how much oil Snohvit contains, but industry estimates suggest oil resources in the field could be worth as much as 30 bln nkr.alastair.reed@thomson.comar/twCOPYRIGHTCopyright 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 