• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 11 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 10 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 1 hour Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 11 hours Total nonsense in climate debate
  • 11 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 5 mins Theresa May to Step Down
  • 14 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 15 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 11 hours Apple Boycott in China
  • 7 hours Australian Voters Reject 'Climate Change' Politicians
Washington Targets Russia With Yet More Sanctions

Washington Targets Russia With Yet More Sanctions

Washington is preparing yet another…

Statoil Aims For Top Dog In Deepwater Drilling

Deepwater

Statoil has won 13 exploration licenses in the Gulf of Mexico, saying this marks a reset of its campaign in the area. The Norwegian company first entered the Gulf of Mexico in 2004 and to date, is the operator of six producing fields, two under development and one in exploration phase.

The combined value of Statoil’s bids in the latest Central Lease Sale stood at $44.5 million, beating bidders including Hess Corporation, Exxon, and Chevron, and coming second to Shell. The company plans to boost its Gulf of Mexico daily output from the 60,000 barrels it pumped last year to almost 120,000 bpd by 2020, which would rank it among the five biggest producers in the area.

Statoil has made deepwater developments a priority recently. In addition to the Gulf of Mexico, it is also actively working on projects in its native waters, in the North Sea with the giant Johan Sverdrup field, where commercial production is slated to begin in two years, and in the Barents Sea, where it is partnering with other energy majors on several discoveries, including a potentially massive Korpfjell field near the Norwegian-Russian maritime border.

The Norwegian state oil company is also active in Brazil’s deepwater exploration. Last year, amid the price crisis, it paid $2.5 billion for a 66-percent interest in the Carcara field, one of the biggest recent discoveries in the Brazilian shelf, and it is eyeing even more acquisitions in the country.

Related: Busting A Myth: U.S. Dollar Impact On WTI

At the same time, Statoil is working on cost reductions that will make future production from the new fields commercially viable even in a lower oil price environment. Earlier this year the company boasted that it had managed to bring the production costs at Johan Sverdrup to below $30 a barrel, aiming to lower this further to below $25 per barrel.

This cost-cutting has allowed it to revise its drilling plans for this year at lower levels of expenditure than last year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News