StatoilHydro sticks to 2012 output target of 2.2 mm boepd

Norwegian oil and gas group StatoilHydro said that it estimated its capital expenditure in 2009 to be roughly $ 13.5 bn, down 15.6 % from $ 16 bn estimated for 2008.
The company noted, however, that it was continuing its strategy for growth and maintaining its ambition to increase equity production to 2.2 mm bpd of oil equivalent by 2012, despite great uncertainty in the global economy and the oil market.

The group's equity production is expected to rise from approximately 1.9 mm boepd in 2008 to 1.95 mm boepd in 2009, the company said. Exploration expenditure in 2009 is estimated to reach about $ 2.7 bn compared with $ 3.1 bn in 2008. Plans call for 65-70 exploration wells to be completed during the year, it noted.
"StatoilHydro is well positioned to get through a period of uncertainty in the world economy," CEO Helge Lund said at a strategy update in London. "We have a strong industrial platform, a solid financial position and a robust and flexible project portfolio. We are adjusting the speed, but not changing course," Lund said.

"The oil price has fallen substantially recently and the world is experiencing an economic downturn," Lund said. "At the same time, costs are at record-high levels. Our response is to make stricter priorities, cut costs, optimize plans and hold over projects which are not time critical."
StatoilHydro is planning to start up eight new projects in 2009: Yttergryta, Alve, Tyrihans, Tune South and Oseberg low pressure production -- all on the Norwegian continental shelf -- as well as Gimboa in Angola and Tahiti and Thunder Hawk in the Gulf of Mexico. On average, the new projects are profitable with an oil price of around $ 35/bbl, based on StatoilHydro's requirement for return, the company said.