Statoil delays Barents project as it looks to cut costs

Crude uncovered in only two of five prospects which makes venture less profitable

Helge Lund, chief executive officer of Statoil. Photograph: Andrey Rudakov/Bloomberg

Helge Lund, chief executive officer of Statoil. Photograph: Andrey Rudakov/Bloomberg

Tue, Jul 1, 2014, 16:42

Statoil, Norway’s largest t energy company, again delayed a development decision for the Johan Castberg project in the Arctic Barents Sea as it considers a possible joint venture to lower costs.

Statoil will look for ways to finance a pipeline to shore and a terminal for the development as it implements “a number of measures in order to reduce costs” over the next year, the company said.

“The exploration campaign has proven less new oil resources in the Castberg area than expected,” said Arne Sigve Nylund, executive vice-president for development and production.

An exploration campaign that cost about three billion kroner (€358m), aimed at boosting volumes and making the project more profitable, uncovered crude in only two of five prospects. – (Bloomberg)