Statoil confirms size of Arctic discovery

Mar 06, 2012 12:00 AM

Further test on Statoil's Skrugard and Havis oilfields in Norway's Arctic north confirmed an earlier resource estimate, the firm and the National Petroleum Directorate said.
The find, the latest major discovery in a series for Norway, the world's eighth-largest oil exporter, is estimated to hold 400 mm to 600 mm barrels of oil equivalent, in line with a January estimate when state-controlled Statoil announced the Havis find.

The find also confirms Statoil's status as one of the most successful explorers in Norway's Arctic region as its Skrugard, Havis and Snoehvit fields are among the very few big finds in the area.
"We estimate a fair value of the Skrugard and Havis discoveries at 1.0-1.8 crowns per share, assuming a mid point of 503 mm boe and 50 % owner share net to Statoil," Swedbank First Securities said in a note. "This value range does not represent any change compared to our previous estimates."

Statoil is the operator in the licence with a 50 % share, while Eni holds 30 % and state-owned Petoro has 20 %.
"We are currently considering several alternative development concepts," Statoil added. "The reservoir engineering work is mainly done in-house while we are in the process of awarding several study contracts to engineering companies for the subsea and platform installations." The company earlier said it aimed to start production from the field before the end of the decade.

Norway's oil and gas production has been declining since 2001 with finds becoming ever smaller until recently. Following the discovery of Skrugard in April, Statoil and Sweden's Lundin Petroleum discovered Johan Sverdrup in the North Sea, which together could be the third-largest biggest oil discovery made off Norway, with a potential of up to 3.3 bn boe in reserves.
Norwegian oil production is still expected to decline overall but the recent discoveries are seen slowing the trend.

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