Statoil to Spend $3B on 40 Wells in 2012

Statoil expects to spend around $3 billion as it completes approximately 40 wells during 2012, it announced Wednesday, which means the Norwegian oil major's total exploration activity level will be similar to that achieved last year.

The Oslo-listed firm, which also announced its fourth-quarter results, said that total organic capital expenditure for 2012 is estimated to be around $17 billion, including expenditures relating to new assets from its acquisition of Brigham Exploration Company in December 2011. 

Statoil said that it boosted its fourth-quarter net operating income by 42 percent to $10.5 billion (NOK 60.7 billion) compared with 4Q 2010. For 2011 as a whole, net operating income came in at $36.7 billion (NOK 211.8 billion) compared with $23.8 billion (NOK 137.3 billion) in 2010. 

Last year the firm completed 41 exploration wells, 22 of which were discoveries.

"Statoil delivered record financial results, further improved safety and made important strategic progress in 2011," said Statoil CEO Helge Lund.

"We delivered strong exploration results in 2011, adding more than one billion barrels to Statoil's resource base. Making high impact discoveries in the mature North Sea as well as in the Barents Sea reaffirms the potential of the Norwegian continental shelf."

The firm also achieved a reserve replacement ration of 1.17 during 2011, it added.

Apart from its acquisition of Brigham, Statoil said that key events since the end of 3Q 2011 included the optimization of its portfolio through the divestment of the Gassled ownership share and the streamlining of its assets in the Norwegian Continental Shelf through the farm-down of three assets through the firm's agreement with Centrica.

The firm also highlighted the 4Q 2011 award of the operatorship for pre-salt blocks 38 and 39, and a partner position in blocks 22, 25 and 40 in the Kwanza basin in Angola.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
US Houston: Division Finance & Accounting Manager
Expertise: Accounting|Financial Analyst
Location: Houston, TX
 
SharePoint Project Manager
Expertise: IT - Programming & Database|Project Management
Location: Houston, TX
 
Commercial Director - Terminals
Expertise: Business Development
Location: South Carolina, 
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours