Statoil Unlikely to Develop Snoehvit Oil
OSLO JAN 10 2006 (Dow Jones Commodities News via Comtex)
Statoil ASA (STO) is unlikely to develop the oil resources at its Snoehvit field in the Barents Sea, despite prospects being raised by the nearby Goliat oil discovery, an executive at one companies involved in the license said Tuesday.
Statoil officials say they haven't yet determined whether the project can go ahead, but said such an undertaking may be hampered by shortage of drilling rigs and an expected reduction in the pressure needed for oil extraction.
Statoil said earlier this month that Eni SpA's (E) second oil discovery on the nearby Goliat field - bringing estimated reserves there to 100 million barrels - had revived Snoehvit's prospects.
Currently, Statoil plans to develop Snoehvit's 200 billion cubic meters of natural gas and over 100 million barrels of condensate, or light oil, but hasn't decided on the crude oil there.
"We need to see if Goliat could be the trigger for us to develop Snoehvit's thin oil zone," spokesman Sverre Kojedal said Tuesday.
While higher prices make such a project more attractive, Statoil estimated that only half of the approximate 500 million barrels of oil estimated to lie in the Snoehvit field would be accessible, Kojedal added.
Statoil spokesman Kristofer Hetland said oil extraction would be further limited because gas production will begin first - reducing pressure necessary in the reservoir for crude extraction. He said actual recovery could be limited to around 25 million to 50 million barrels.
Hetland said the current tight drilling rig market would also be a hindrance.
"We have a very demanding market right now, and we would have to drill several more test wells to verify crude volumes," Hetland said.
Statoil, as Snoehvit's operator, owns a 33.53% stake. Other owners include Total SA (TOT) with 18.4%, Gaz de France (1020848.FR) with 12%, Amerada Hess (AHC) with 3.26% and RWE Dea, a unit of RWE AG (RWE.XE), with 2.81% and state-owned Petoro with 30%.
Copyright (c) 2006 Dow Jones & Company, Inc.
Operates 1 Offshore Rigs
- Statoil Takes First Bite Of Solar Market With Brazilian Joint Venture (Oct 04)
- Statoil Charters Last of Largest Oil Tankers to Hold Crude for Asia Buyers (Sep 28)
- Statoil And Partners Plan Output Capacity Expansion At Troll Gas Field (Sep 26)
Company: Total S.A. more info
- Total CEO: US Shale Oil Industry To See Wave Of Investment (Oct 18)
- Total's CEO Says Will Try To Move Ahead With Iran Gas Project (Oct 17)
- Total Expands Presence in Mexico (Oct 12)
Company: Hess Corporation more info
Operates 4 Offshore Rigs
- Hess: World Needs New Offshore Oil Investments to Avoid Shortages (Sep 28)
- Hess Slashes 2017 Capital Budget After Quarterly Loss (Jul 26)
- Suriname Signs Offshore Oil Deals with ﻿Exxon, Hess and Statoil (Jul 14)
Company: Gaz de France more info
- Grenland Group Delivers Gjoa Subsea Structures (Sep 01)
- Plexus to Supply Wellhead Systems for Mediterranean E&P Activities (Jul 20)
- ELNG Completes First Ever Health & Safety Partnership Program with GE O&G (Jul 15)
Company: Petoro more info
- Aker Solutions Secures Johan Sverdrup Phase 2 FEED Contract (Mar 21)
- NPD Grants Consent for the Expansion of Nyhamna Gas Plant (Feb 10)
- Statoil Granted North Sea Drilling Permit by NPD (Dec 21)
Company: RWE-DEA more info
- Lundin Granted Drilling Permit in PL609 (Sep 10)
- Lundin Spuds Appraisal Well on Alta Discovery (Mar 25)
- Japan's JX, GDF Suez Find New Oil in UK North Sea (Mar 13)