Statoil Delivers 'Operationally Solid' 2Q

Statoil said it delivered an "operationally solid" second quarter as it announced its 2Q 2013 results Thursday. Meanwhile, Det norske oljeselskap, Statoil's partner on Norwegian production license 265, reported that the firm's exploration well on the Cliffhanger North prospect has come up dry.

"We produced as planned, delivering record production from our portfolio outside Norway. We are on track and maintain our guidance for 2013," Statoil CEO Helge Lund said in a company statement.

But Lund said that the firm's financial performance was adversely affected by lower prices for liquids and gas, as well as weak trading results.

"However, we have maintained good cost control and delivered strong earnings, particularly from out international portfolio," Lund said.

Statoil's second quarter statement noted that it ramped up several fields during the quarter, highlighting a high activity level in projects on the Norwegian continental shelf. Major field developments ongoing include Gudrun, Åsgard subsea compression and Valemon.

The firm also made five discoveries during the quarter. It added that it has also accessed further attractive exploration acreage in Norway, Russia, Azerbaijan, Tanzania and Australia.

Statoil's production in 2Q 2013 was 1,967,000 barrels of oil equivalent per day – almost exactly the same as that for 2Q 2012 (1,980,000 boepd).

Statoil's net operating income during 2Q 2013 was $5.8 billion (NOK 34.3 billion), compared with $10.5 billion (NOK 62 billion in 2Q 2012).  Net income was $731 million (NOK 4.3 billion), compared with $4.5 billion (NOK 26.6 billion) in 2Q 2012.

In a separate statement DNO, Statoil's partner on the PL265 license offshore Norway, said that Statoil's exploration well 16/2-18 S (targeting the Cliffhanger North prospect) did not find a sandstone reservoir in its primary Jurassic layer objective, although core sampling has confirmed oil shows in basement rocks in the well's secondary target. DNO is a 20-pecent partner in PL265, where Statoil is the operator.


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