Statoil decides not to drill oil well in Norway's Snohvit gas field |
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Thu, 18 Jan 2007 11:38
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OSLO (AFX) - Statoil ASA said it has decided not to go ahead with the possible drilling of an oil well in Norway's Snohvit gas field because a recent reassessment of the situation has shown it not to be economically viable.Snohvit, located in the Barents Sea off the north coast of Norway, contains a thin oil zone that the Norwegian oil directorate has said it would like to extract before gas production starts later this year.Statoil has reassessed the viability of doing this, but said today that it has concluded that the costs of doing so would outweigh the likely returns, and as a result, it will not pursue any further appraisal activities.Gas production from Snohvit is scheduled to start in late 2007.Statoil is operator for the development and operation of the field, with a 33.53 pct stake.Other licensees include Petoro AS with 30 pct, France's Total with 18.4 pct and Gaz de France with 12 pct.alastair.reed@thomson.comar/vlbCOPYRIGHTCopyright 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 awards well services framework agreements worth 80-100 mln usd 