Statoil Puts Snohvit On Hold

Statoil and it's other partners agreed not to submit development plans for Snohvit and associated fields in the Barents Sea to the authorities at this time. This decision is based on the lack of clarification over government terms relating to the division of revenues and taxes between offshore and land-based facilities. The partners had aimed to submit plans this summer for development and operation (PDO) and installation and operation (PIO) covering Snohvit. Snohvit will require the early investment of roughly NOK 40 billion, with revenues to be earned over 25 years. Statoil will continue its dialogue with the authorities to find a solution which allows it to submit development and operational proposals for the fields to the other licensees. Plans have called for Snohvit to start production in late 2005 or early 2006. Subsea installations would be linked by pipeline to a gas treatment plant outside Hammerfest in northern Norway. Partners in Snohvit are Statoil with 22.29 percent, Petoro with 30 percent, TotalFinaElf with 18.4 percent, Gaz de france with 12 percent, Norsk Hydro with 10 percent, Amerada Hess with 3.26 percent, RWE-DEA with 2,81 percent and Svenska Petroleum with the remaining 1.24 percent.