Statoil: Building Growth in the US Gulf of Mexico

Statoil and Anadarko Petroleum have signed an agreement whereby Statoil will acquire two of Anadarko's US Gulf of Mexico (GoM) discoveries and one prospect. Statoil will pay Anadarko US $901 million.

The assets included in the transaction are the following:

--The Nexen-operated Knotty Head discovery in which Statoil will acquire a 25% working interest.

--The Chevron-operated Big Foot discovery in which Statoil will hold a 27.5% working interest, including the 12.5% acquired in a prior transaction.

--The Chevron-operated Big Foot North prospect in which Statoil will hold a 27.5% working interest, including the 12.5% acquired in a prior transaction.

"This deal is an excellent strategic fit with our deepwater GoM portfolio, building on our recent acquisition of assets from Plains," says Statoil's president and CEO, Helge Lund.

In September this year, Statoil acquired working interests in Big Foot, Big Foot North and Caesar from Plains Exploration & Production (NYSE:PXP). These assets are located in the Greater Tahiti and Walker Ridge areas. The assets acquired from Anadarko are also in these areas.

"In less than two years we have developed a strong deepwater position in the GoM," Mr. Lund underscores. "Our experience and strong technology base from the Norwegian continental shelf are great assets in tackling future developments in the GoM. We are a leading subsea operator and have a strong track record in increased oil recovery, which will add value in our GoM operations."

"We are well positioned in key deepwater areas, with working interest in 11 discoveries, including the current development of the Tahiti field," says Řivind Reinertsen, senior vice president for GoM activities. "With this acquisition, we'll add an interesting new discovery to our portfolio and will gain a solid foothold in Big Foot and Big Foot North."

The Knotty Head discovery is close to the Chevron-operated Tahiti and Tonga discoveries, where Statoil holds a 25% working interest in both fields. It is also located close to the Shell-operated Caesar discovery, in which Statoil holds a 17.5% working interest.

Located in the same geological trend as Tahiti and Caesar, the Big Foot discovery lies in the Walker Ridge area near the Jack and St Malo discoveries operated by Chevron. Statoil holds a 25% working interest in Jack and a 6.25 % working interest in St. Malo.

Pending field development solutions, Big Foot and Knotty Head are expected to be in production post 2010.

The transaction is expected to close in the first quarter of 2007, subject to applicable pre-emption rights of co-owners in the subject leases and other customary closing conditions. In lieu of a sale, the parties are discussing the possibility of a joint venture arrangement to effect the transaction.

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