Statoil Exits Alaska In Critical Moment for Operations in the Arctic

Norway’s Statoil decided to exit Alaska following recent exploration results in neighbouring leases, in a moment of increasing skepticism about Arctic oil and gas potential. 

‘The leases in the Chukchi Sea are no longer considered competitive within Statoil’s global portfolio, so the decision has been made to exit the leases and close the office in Anchorage, Alaska’ reads a statement released on Tuesday.  

Last month, Statoil and its partners decided to accept a delayed timetable for the commencement of production from the Aasta Hansteen and Mariner fields from 2017 to the second half of 2018. Aasta Hansteen is in the Arctic circle. 

Also on Tuesday, a Russian Natural Resources Ministry official reportedly said the country will sell Erginskoye oilfield, its last large oilfield in West Siberia, early next year. Moscow aims at fetching as much as $1 billion. 

Last month, Royal Dutch Shell reported a third quarter loss of $7.4 billion, as it is proceeding with corporate reorganisation and cancelling projects, including drilling in Alaska.

On Monday, Royal Dutch Shell said in an internal memo that four senior executives from BG Group should be retained after the merger between the two oil and gas groups completes next year. According to commentators, this reinforces the idea that the new company should run its natural gas business independently from other divisions.