Statoil Begins Testing Offshore The Faroe Islands

Statoil is to start exploratory drilling offsore the Faroe Islands this week. The well will be spudded by Transocean Sedco Forex's semisubmersible, Sovereign Explorer. Sovereign Explorer was due to reach Faroese waters at the weekend and the positioning and anchor handling at the well site were expected to take four days. The well on the so-called Longan prospect is located to the southeast of the Faroe Islands close to the British boundary. The work is scheduled to take two to three months.

In the first licensing round on the Faroe shelf, which was launched in February last year, the Faroese Ministry of Petroleum received 22 license applications from 17 oil companies. In August 2000, the ministry awarded seven offshore exploration licenses to 12 oil companies. Statoil, BP and Amerada Hess are partners in this prospect with Amerada Hess acting as operator.