Statoil Announces Minor Discovery, Plans to Recover More from Åsgard Field

Norway’s Statoil announced on Tuesday a minor discovery, a plan to recover 282 million extra barrels from the Åsgard field, and other deals to increase cash to invest despite difficult market conditions due to relatively low oil prices. 

‘The installation of the modules that collectively constitute Åsgard subsea gas compression has commenced on the Åsgard field. Innovative technology at a depth of 300 metres will create 282 million extra barrels from the Åsgard field’ reads a note released by Statoil on Tuesday.

The activities, which include the installation and the connection of 22 modules including two identical compressor trains weighing 1,500 tonnes each, will be carried out during the summer. 

‘During the summer this unique technology will be put in place in the large subsea frame that was installed on the field in summer 2013.’ 

Also on Tuesday, Statoil announced a minor discovery.

‘Statoil Petroleum AS has concluded the drilling of wildcat well 6706/11-2. The well encountered gas. The well was drilled about 20 kilometres west of the Aasta Hansteen field in the northern part of the Norwegian Sea’ the Norwegian Petroleum Directorate reported, adding that preliminary estimates place the size of the discovery between one and three billion standard cubic metres (Sm3 ) of recoverable gas.

Finally, the Norwegian company entered into an agreement with Colony Capital, Inc. for sale of the company’s head office building at Forus (Stavanger, Norway), while signing a 15-year lease agreement with an extension option. 

Meanwhile, experts, lobbyist and think tank call on government to adjust upstream fiscal terms in response to the current market conditions. 

‘Fiscal policy-makers around the world are reviewing their upstream fiscal terms and we've already witnessed changes to terms by a handful of governments since the price began to fall in 2014. For some governments, the impact of the lower price has been devastating for public spending plans, especially those forged on oil price expectations of US$100 a barrel ($/bbl), forcing them to slash spending with significant economic and political fallout’ Graham Kellas, VP Global Fiscal Research for Wood Mackenzie explained in a communiqué.