Statoil Sees Larger Role for Gas

Statoil, the Norwegian energy major, announced positive figures on gas in its fourth-quarter results for 2012.

 "We... announce that Statoil's gas sales in the European markets were an all-time high in 2012, at solid prices. We see a strong outlook for the European gas markets and are well positioned to capture value as the markets develop," Helge Lund, chief executive officer, said.

Statoil also announced increased gas volumes for the Block 2 discoveries offshore Tanzania to 7-9 trillion cubic feet in total recoverable resources.

The results announcement contained a prominent section about the disastrous terrorist attack at the In Amenas gas field in Algeria last month, where a number of Statoil personnel were killed.

The international company said it has "created value from a superior gas position, by entering into a long-term gas sales agreement with Wintershall for the delivery of a total of 45 billion cubic meters (bcm) to the German and other North-West European markets".

It also reported activity in unconventional sources, noting the acquisition of around 70,000 operated net acres in the liquid-rich part of the central Marcellus area.

Reuters commented that Statoil's trend towards flexible pricing contracts on gas could squeeze Russian giant Gazprom.

"We're selling more in the UK and we're utilising more of the opportunity in hub markets and we are expanding our trading activities in the Netherlands and Germany," Statoil gas chief Eldar Saetre told the agency, discussing gas sales. Norway is Europe's second largest producer of gas.