StatoilHydro Sets Sights on First Oil at Peregrino in 2011

LONDON (Dow Jones), Oct. 21, 2009

Norwegian oil company StatoilHydro ASA Wednesday said it plans to start drilling at its heavy oil field Peregrino offshore Brazil in the first half 2010 and expects first oil early in 2011.

Plateau production of 100,000 barrels of oil equivalent a day from the field will be reached within a year, company spokeswoman Mari Dotterud told Dow Jones Newswires.

Peregrino is located 85 kilometers offshore in the Southern Campos Basin. The first phase of the project includes two drilling and wellhead platforms which will be tied back to a floating production, storage and offtake unit. Recoverable reserves from the field are estimated at between 300-600 million barrels of oil.

StatoilHydro owns 100% of the field, which it bought in December 2008.

"Peregrino is a world class assets with about 2.3 billion barrels of oil in place within the sanctioned area, and we expect to recover about 20% of the resources," Dotterud said. "There are additional upsides in the Southwest that was proven in 2006 with new seismic and an appraisal well."

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