Conoco to Acquire Equity in Grane Field

Conoco Inc. said its Norwegian affiliate Norske Conoco will strengthen the company's significant holdings in the North Sea by acquiring equity in the giant Grane Field. The 6.4 percent interest in the field will be purchased from Statoil for about $60 million (NOK 555 million).

The acquisition will be effective January 1, 2001, and is expected to close in first quarter 2001, subject to Norwegian government approvals. It is expected to add reserves of 51 million barrels of oil equivalent (BOE) over the next several years, 90 percent of which is oil.

The Grane field is located in the Norwegian sector of the North Sea, 115 miles west of Stavanger, in water depth of 417 feet.

"The Grane field, with estimated reserves of 800 million gross BOE, is the largest oil field in Norway currently under development. The gross development cost will be about $2 billion, or about $120 million net to Conoco over the next two to three years," said Tony Gordon, Norske Conoco president and managing director. "The project recently has been approved for development by the Norwegian Parliament and major contracts are now being awarded. The field, which is expected to produce for 30 years, is planned to begin production in 2003, and at plateau, will add more than 13,000 net barrels of oil per day to Conoco's Norwegian production."

"This acquisition is of the size and quality that we're interested in because it will strengthen what is already a very important business area for Conoco and add significant production with strong performance metrics," said Rob McKee, Conoco executive vice president, exploration and production.

"It adds to Conoco's already significant holdings in Norway, and will join other legacy assets such as the Heidrun, Statfjord, and Troll fields, which are the major contributors to Norske Conoco's current production of 100,000 net BOE's per day. Conoco's production in Norway is projected to grow 30 percent to 130,000 BOE's per day by 2002," he said.


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