Statoil On Track with Mariner Project

- Statoil On Track with Mariner Project

The concept chosen for the Mariner heavy oil project on the UK continental shelf includes a production, drilling and quarter (PDQ) platform based on a steel jacket, with a floating storage unit (FSU).

Statoil expects a final investment decision in late 2012 and first oil in late 2016.

The Bressay heavy oil project on the UK continental shelf is also progressing according to plan, one year behind Mariner, to ensure transfer of learning and synergies.

The Mariner and Bressay projects were presented at a press briefing by Statoil's executive vice president for Development and Production International, Peter Mellbye, at SPE Offshore Europe 2011 in Aberdeen.

"After a period of uncertainty, I am proud to be able to say that we are back on track with the landmark Mariner and Bressay developments. To be able to once again move these projects forward is important for Statoil and its partners, as well as for the UK and for the Aberdeen region," said Mellbye.

The ultra-heavy oil projects will require pioneering technology in order to be developed. Since its discovery thirty years ago, the Mariner field has been subject to a number of development studies by different operators.

Statoil is the first company ready to put forward a development concept that will fully address the complexities of this field, in particular related to reservoir management, recovery rates and project execution.

Statoil has extensive heavy oil experience, including the successful development of the Grane field in Norway and the Peregrino field in Brazil.

Because of the low well flow rates and early water break-through there is a need for many wells, artificial lift, and a process designed to handle large liquid rates and oil-water emulsions.

A total of 145 reservoir targets for production or injection are planned for Mariner. While the number of well slots at the platforms is less, this will be solved through use of multi-branch technology, sidetracks and reuse of slots.

The Mariner and Bressay projects will entail a gross investment of roughly GBP 6 billion. Statoil estimates lasting employment of at least 700 individuals, mainly locals, directly involved in its operations, and the establishment of a new operations centre in Aberdeen. The indirect employment of numerous others in the supply and service sectors comes in addition to this.

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Statoil Makes Gas Find in North Sea

- Statoil Makes Gas Find in North Sea

Monday, August 29, 2011
Norwegian Petroleum Directorate
by SubseaIQ

Statoil Petroleum AS, operator of production license 569, is in the process of completing the drilling of wildcat well 16/7-10. The well proved gas/condensate.

The well was drilled 16 kilometers northeast of the Sleipner Øst field in the North Sea.

The purpose of the well was to prove petroleum in Paleocene reservoir rocks (the Ty formation). Only a thin gas/condensate column was encountered in a 115-meter thick reservoir with the expected reservoir quality. The licensees will evaluate the discovery together with other nearby discoveries.

The well was not formation tested, but data acquisition and sampling have been carried out.

The well was drilled to a vertical depth of 2487 meters below the sea surface and was terminated in the Shetland group in the Upper Cretaceous. The well will now be permanently plugged and abandoned.

The well is the first exploration well in production license 569, which was awarded in APA 2010.

Well 16/-10 was drilled by the Ocean Vanguard drilling facility, which will now proceed to production license 120 in the northern part of the North Sea to drill production wells at the Visund Sør field, where Statoil Petroleum AS is the operator.

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Statoil Unlocks Third Gullfaks Discovery in 2011

- Statoil Unlocks Third Gullfaks Discovery in 2011

Wednesday, August 24, 2011
Statoil
by SubseaIQ

An exploration well and a sidetrack currently being completed by Statoil near Gullfaks South have yielded the third discovery made in the Gullfaks license so far this year.

"This confirms yet again that infrastructure-led exploration is important and yields highly commercial finds which can be brought on stream quickly," said Tom Dreyer, exploration head for the northern North Sea.

"We regard the area around Gullfaks South as prospective and the find confirms our faith in the area. Even though the volumes are modest compared with the large finds made off Norway earlier, this type of discovery is important for maximizing the potential on the Norwegian continental shelf, and contributes to extending the production life of installations."

The wells were intended to prove petroleum in Middle Jurassic reservoir rocks of the Brent group, and whether communication exists with the producing structures in Gullfaks South. Wells 34/10-52 A and B were drilled by Deepsea Atlantic, which will proceed to shore for modification work after completing this operation

Oil- and gas-bearing intervals were observed in the upper part of the Brent group along both well paths, and a column about 120 meters thick with good reservoir quality was proven.

No hydrocarbons were found in the lower Brent group. The wells have not been formation tested, but data were collected and cores taken to determine the hydrocarbon system and contacts.

Preliminary calculations indicate that 3 to 9.5 million barrels of recoverable oil equivalent are present, which are planned to be tied back to existing infrastructure in the Gullfaks area.

The two other discoveries made so far this year in the Gullfaks license are Rutil and Opal.

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Statoil Spuds Well at Aldous Major North Structure

- Statoil Spuds Well at Aldous Major North Structure

Wednesday, August 24, 2011
Lundin Petroleum AB
by SubseaIQ

Lundin announced that drilling of appraisal/exploration well 16/2-9S on the Aldous Major North structure has commenced. The well is located in license PL265 in the Norwegian North Sea.

The Aldous Major North structure is believed to be the north-westerly continuation of the Aldous Major South discovery in PL265 and the Lundin Petroleum operated PL501 Avaldsnes discovery with primary target in sandstone of Upper Jurassic age.

The planned total depth is 2,241 meters below mean sea level. The well will be drilled with the drilling rig Transocean Leader and the duration is expected to be 40 days.

Lundin Petroleum holds 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with 40 percent interest, Petoro (30 percent) and Detnorskeoljeselskap ASA (20 percent).

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Statoil Extends Eidesvik Contract

- Statoil Extends Eidesvik Contract

Friday, August 19, 2011
Eidesvik Offshore

Statoil has declared its option for one year extended period for the Time Charter party with Eidesvik, (through its subsidiary Eidesvik Shipping AS), for the environmental friendly LNG power PSV Viking Queen. The extended period starts primo November 2011. Statoil has further two optional yearly extended periods on this contract.

Statoil ASA has also declared a one month extended period for the Time Charter Party for the PSV Viking Athene.

Photo Taken by Viking Athene from Viking Queen

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Statoil Primes Bit for North Sea Drilling

- Statoil Primes Bit for North Sea Drilling

Friday, August 19, 2011
Norwegian Petroleum Directorate

The Norwegian Petroleum Directorate (NPD) has granted Statoil Petroleum AS a drilling permit for well 15/8-2, cf. Section 8 of the Resource Management Regulations.

Well 15/8-2 will be drilled from the COSLPioneer drilling facility, at position 58°24'55.1"N 01°32'49.90"E. COSLPioneer is a new drilling facility that was built in China. The facility was docked at Sandnes this summer to be prepared for its first assignment on the Norwegian shelf.

The drilling program for well 15/8-2 concerns the drilling of a wildcat well in production license 303. Statoil Petroleum AS is the operator with a 100 percent ownership interest.

The area in this license consists of a part of block 15/2 and parts of blocks 15/3, 15/5, 15/6 and 15/8. The well will be drilled about ten kilometers west of the Sleipner Vest field in the central part of the North Sea.

Production license 303 was awarded on December 12, 2003 (APA 2003). This is the seventh well to be drilled in the license area.

The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing the drilling activity.

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Statoil Granted Drilling Permit in North Sea

- Statoil Granted Drilling Permit in North Sea

Thursday, August 18, 2011
Norwegian Petroleum Directorate

The Norwegian Petroleum Directorate has granted Statoil a drilling permit for well 16/2-9 S, cf. Section 8 of the Resource Management Regulations.

Well 16/2-9 S will be drilled from the Transocean Leader drilling facility at position 58°54'46.39"N 02°26'22.80"E following completion of drilling of wildcat well 16/2-8 for Statoil in production license 265.

The drilling program for well 16/2-9 S concerns the drilling of a wildcat well in production license 265. Statoil Petroleum AS is the operator with an ownership interest of 40 percent. The other licensees are Petoro AS with 30 percent, Det norske oljeselskap ASA with 20 percent and Lundin Norway AS with 10 percent.

The area in this license consists of part of block 16/2. The well will be drilled about 12 kilometers northwest of well 16/2-8 (Aldous Major South) in the central part of the North Sea.

Production license 265 was awarded on April 24, 2001 (North Sea Awards 2000). This is sixth well to be drilled in the license.

The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.

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Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

- Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

Tuesday, August 16, 2011
Statoil

The partners in the Åsgard licenses have submitted a plan for development and operation (PDO) of subsea gas compression to maintain production from the Mikkel and Midgard reservoirs.

Øystein Michelsen, Statoil's executive vice president for Development and Production Norway (DPN), presented the PDO to Ola Borten Moe, Norway's minister for petroleum and energy.

"The decision to improve recovery from Åsgard is one of the most important we are taking this year to sustain output on the Norwegian continental shelf," said Michelsen.

"This solution has been made possible through an innovative partnership on the Åsgard license."

The PDO represents a quantum leap in technological terms, which could contribute to a substantial boost in recovery factor and production life for a number of gas fields.

Subsea compression on Åsgard is expected to improve recovery from the Mikkel and Midgard fields by some 278 million barrels of oil equivalent.

That makes the project one of the most important contributors to new volumes, and provides future opportunities for improved recovery from a number of fields.

Quantum leap

Natural pressure in Midgard and Mikkel will become too low over time to maintain stable flow and a high production profile from the Åsgard B platform in the Norwegian Sea.

To compensate for this decline, Statoil intends to install seabed compressors near the wellheads and so increase the pressure. Wellstreams will be piped in a common line to Åsgard B.

"This represents a quantum leap in subsea technology, and an important step in realizing our vision of a complete underwater plant," said Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"The technology has a substantial potential for improving recovery," she added, and emphasized that it is important for future field development in deep water and Arctic regions.

"Testing and qualifying new solutions is vital to the success of our technological developments," Øvrum noted. "We have already come a long way, but know that the remaining stretch will be a demanding one.

"Developing technology is always challenging, but we have surmounted technological obstacles before and are confident that we will succeed in doing so again on Åsgard together with our partners."

She adds that substantial synergy exists between technological qualification on Åsgard and the work being done by Statoil together with operator Shell on the Ormen Lange gas field.

Åsgard's bright future

Åsgard is a crucial hub on the Halten Bank and a key factor in the Norwegian Sea. Subsea compression from Mikkel and Midgard will safeguard future production from the field, said Michelsen.

Statoil is working continuously on other measures to improve recovery in the same area – including reducing processing pressure, drilling and maintaining wells, and applying innovative solutions.

Åsgard is an important hub in a prospective area, and spare processing capacity which becomes available in its facilities can also be offered to others.

"Our vision is a field which is still producing in 2050 with a recovery factor among the best in the world," said Michelsen.

The subsea compression development will also expand capacity in the Åsgard Transport pipeline, which carries gas from Norwegian Sea installations to the Kårstø plant north of Stavanger.

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Statoil Boosts Estimates at N. Sea Find

- Statoil Boosts Estimates at N. Sea Find

Tuesday, August 16, 2011
Statoil

Communication between the Aldous and Avaldsnes oil discoveries in the North Sea has now been confirmed. In combination these discoveries may represent an oil structure of between 500 million and 1.2 billion barrels of recoverable oil equivalent.

If the upper part of the interval strikes pay dirt, the discovery will be one of the ten largest oil finds ever on the Norwegian continental shelf (NCS). Statoil has a 40% stake both in license PL 265, where Aldous was discovered, and in PL 501, where the Avaldsnes discovery was made.

"Aldous/Avaldsnes is a giant oil discovery, and according to our estimates the combined discovery may make the top 10 list of NCS oil discoveries. Norway has not seen a similar oil discovery since the mid-eighties," said Tim Dodson, Statoil's executive vice president for Exploration.

This is the third "high-impact discovery" for Statoil as an operator in 2011. In April of this year the 250 million barrel Skrugard oil discovery was made in the Barents Sea, and the 150-300 million barrel Peregrino South oil field was discovered offshore Brazil.

"The discoveries are a result of Statoil's exploration strategy of prioritizing high-impact opportunities, while focusing on our established core areas," said Dodson.

As the company announced on August 8, a minimum 65-meter oil column has been confirmed in Aldous Major South well 16/2-8 in the North Sea. The discovery was made in Jurassic sandstone in a very good quality reservoir consisting of coarse-grained, unconsolidated sand.

The well has also established common oil/water contact between the Aldous and Avaldsnes structures, and according to preliminary estimates the combined discovery in the two licenses (PL 265 and PL 501) totals between 500 million and 1.2 billion barrels of recoverable oil equivalent. Between 200 and 400 million barrels of these resources have been discovered in well 16/2-8, with strong indications from well data of another 200 to 400 million barrels of recoverable oil equivalent in the same structure, whereas a resource base of 100 to 400 barrels previously has been estimated in the Avaldsnes structure (PL 501).

The well was drilled by the Transocean Leader drilling rig, which soon will spud Aldous Major North well 16/2-9 (PL265) to clarify the further potential and any communication with Aldous/Avaldsnes. In addition the partners plan further appraisal drilling in license PL 265 next year to clarify the full volume potential for a future development solution.

"As we said at the Capital Market Day event in New York in June, the NCS is a world-class petroleum province. The Aldous/Avaldsnes discoveries are evidence that the NCS is still attractive. Making a discovery of this size in a mature area shows that exploration is all about perseverance, creativity and obtaining new knowledge," said Dodson.

Aldous Major South is located in license 265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin (10%).

Avaldsnes is located in license 501. Lundin is the operator and has a 40% interest, whereas partners Statoil and Mærsk have 40% and 20% interests, respectively.

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Statoil, Partners Hit Significant Oil Pay in North Sea

- Statoil, Partners Hit Significant Oil Pay in North Sea

Monday, August 08, 2011
Statoil

Statoil and partners Petoro, Det norske and Lundin have made a high-impact oil discovery on the Aldous Major South prospect (PL 265) in the North Sea.

Well 16/2-8, drilled by the Transocean Leader drilling rig, has identified an approximately 65-meter oil column in Jurassic sandstone. The acquired data confirm that this is a reservoir of excellent quality.

Statoil has previously described the well as a high-impact well, and the result confirms Statoil's belief in the exploration potential on the Norwegian continental shelf in line with what was communicated at the Capital Markets Day event in New York in June.

Preliminary volumes are estimated to be between 200 and 400 million barrels of oil equivalent (boe) for this part of the structure in PL 265, and Statoil expects additional upside in the license both north and south of the discovery.

Aldous Major South is located west of Lundin's Avaldsnes discovery (license PL 501), where Statoil has a 40% stake, and some 35 kilometers south of the Statoil-operated Grane field.

Well 16/2-8 indicates the same oil-water contact as in the Avaldsnes discovery well, which suggests the likelihood of communication between the two structures. The Avaldsnes discovery encountered a 17-meter oil column. Statoil will update its total resource estimate for the area when the wells are completed and the data analyzed.

"Aldous Major South is a considerable oil discovery in one of Statoil's core areas. Together with the Avaldsnes discovery this may allow for a new stand-alone development in the North Sea. As the largest resource owner our priority is to find the optimal solution for the area, adding maximum value to all partners," said Gro G. Haatvedt, Statoil's senior vice president for Exploration on the Norwegian continental shelf.

After completing this well Transocean Leader will start drilling the Aldous Major North well. This well also has a considerable volume potential.

The partnership is planning two appraisal wells in PL 265 next year and Statoil has secured rig capacity for this.

The result of the ongoing drilling of the Lundin-operated well (well 16/2-7) in the Avaldsnes structure will help further clarify the area’s potential.

Aldous Major South is located in license 265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin (10%).

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Statoil Wraps Up First Phase at Gudrun Platform

- Statoil Wraps Up First Phase at Gudrun Platform

Wednesday, August 03, 2011
Statoil

The steel support structure for the Gudrun platform is now in place on the North Sea field, completing the first phase of the extensive installation work being carried out there.

"The entire operation has been carried out according to plan and in a secure manner," reported Anders Opedal, senior vice president for projects in Statoil's Technology, Projects and Drilling business area.

"We've passed an important milestone for coming on stream at the right time and to budget. With the jacket solidly positioned on the seabed, we'll be able to start drilling in the fourth quarter as planned."

Installation of the steel structure began on July 24, and the job of attaching it to the seabed was completed on August 2 when the last of 12 60-meter piles was driven home.

Saipem 7000, the world's second-largest crane vessel, has been used to carry out the installation work on Gudrun.

Weighing some 7,000 tonnes all told, the traditional jacket comprises two main structures of almost 2,300 tonnes each, tied together by six horizontal frames and various bracings.

Important contribution

"Gudrun is the first of a number of new installations in an area of the Norwegian North Sea which is both highly interesting and mature," observes Ivar Aasheim, senior vice president for field development in the Development and Production Norway business area.

"By exploiting existing infrastructure for processing and transport, we're ensuring production from new fields. Gudrun will also make an important contribution to maintaining high production levels going forward."

The next development milestone is the start of pre-drilling production wells on the field. These will be tied back to the platform for partial processing and oil and gas export.

Final processing of Gudrun's output will take place on Sleipner A, with the gas piped to the adjacent Sleipner T platform for carbon dioxide removal.

In addition, electricity to operate the Gudrun installation once it comes on stream in two years' time will be supplied from Sleipner A.

Gudrun ranks as one of Statoil's largest development projects on the Norwegian continental shelf, and contains some 127 million barrels of oil equivalent.

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Statoil's 2Q Earnings Soar in 2011

- Statoil's 2Q Earnings Soar in 2011

Thursday, July 28, 2011
Statoil

Statoil's second quarter 2011 net operating income was NOK 61.0 billion, a 129% increase compared to NOK 26.6 billion in the second quarter of 2010. The quarterly result was mainly affected by a 32% increase in the average prices for liquids measured in NOK, a 28% increase in average gas prices, a NOK 8.8 billion gain related to the 40% Peregrino divestment and an 18% decrease in lifted volumes, when compared to the same period last year.

"Statoil delivered record net income in the second quarter of 2011, reflecting an operational performance in line with expectations, the value-creating Peregrino transaction and strong oil and gas prices throughout the period. Production was mainly impacted by previously announced extensive maintenance activities and seasonal variability in gas off-take. We continued to make progress within exploration and project developments in the quarter, staying on track to deliver future growth," says Helge Lund, Statoil's chief executive officer.

Net income in the second quarter of 2011 was NOK 27.1 billion ($5.01B) compared to NOK 3.1 billion in the same period last year. This result reflected higher prices for both liquids and gas, a gain on sale of asset of NOK 7.5 billion net of tax, reduced exploration expenses and higher net financial income, partly offset by reduced liftings. The tax rate for the quarter was 56%.

Adjusted earnings in the second quarter of 2011 were NOK 43.6 billion, compared to NOK 36.5 billion in the second quarter of 2010.

Adjusted earnings after tax were NOK 12.8 billion in the second quarter of 2011. Adjusted earnings after tax exclude the effect of tax on net financial items, and represent an effective adjusted tax rate of 71% in the second quarter of 2011.

Total equity production was 1,692 mboe per day in the second quarter of 2011 compared to 1,957 mboe per day in the second quarter of 2010.

Highlights since first quarter 2011:

• The sale of 40% of the Peregrino offshore field in Brazil was completed and a gain of NOK 8.8 billion before tax is recorded.
• Successful exploration drilling activities in Norway and internationally.
• The approval of the Plan for development and operation (PDO) for the Hyme field (formerly Gygrid) on the NCS.
• The approval of the Plan for development and operation of the Valemon gas and condensate field on the NCS.
• The announcement of the divestment of a 24.1% interest in the Gassled joint venture to Solveig Gas Norway AS.
• The approval of the Plan for development and operation for Visund South fast track on the NCS.
• Statoil awarded the contract for construction of two new specially designed category D drilling rigs.
• First shipment of Peregrino crude.
• Strengthened position in Eagle Ford through acquiring new leases.

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Statoil to Spin Bit at Visund Sor

- Statoil to Spin Bit at Visund Sor

Monday, July 25, 2011
Petroleum Safety Authority Norway

Statoil has received consent to use the Ocean Vanguard mobile facility in the northern part of the North Sea.

The consent relates to drilling of three production wells on Visund Sør. The plan is to partially complete all three wells, 34/8-V-4 BY1H/BY2H, 34/8-V-3 H, 34/8-V-1 BY1H/BY2H, with Ocean Vanguard.

Visund Sør is located approx. nine kilometers southwest of the Visund field, and approx. 125 kilometers from land, Værlandet in Askvoll, Sogn og Fjordane.

The earliest possible start date for the operation on Visund Sør is in the beginning of August 2011. The operation has an expected duration of 300 days.

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Statoil Gets Green Light to Drill N. Sea Block 15/8

- Statoil Gets Green Light to Drill N. Sea Block 15/8

Thursday, July 21, 2011
Petroleum Safety Authority Norway

Statoil has secured consent to conduct exploration drilling in the central part of the North Sea using the COSLPioneer mobile facility.

The consent relates to the drilling of exploration well 15/8-2 in production license 303. The well is located about 250 kilometers southwest of Stavanger. The consent also covers the drilling of a potential sidetrack.

The well has the following geographical coordinates: N 58° 24' 55.08", E 01° 32' 49.89" Water depth at the site is approx. 119 meters.

Drilling is scheduled to start in late July/early August 2011. The expected duration of the activity is about 79-124 days, depending on potential discoveries.

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Statoil Spuds Appraisal Offshore Norway

- Statoil Spuds Appraisal Offshore Norway

Tuesday, July 19, 2011
Lundin Petroleum AB

Lundin announced that drilling of appraisal/exploration well 16/2-8 on the Aldous Major South structure has commenced. The well is located in license PL265 in the Norwegian North Sea.

The Aldous Major South structure is believed to be the western continuation of the Lundin Petroleum operated PL501 Avaldsnes discovery into PL265, with primary target in sandstone of Upper and Middle Jurassic age. Secondary targets are the Cretaceous Shetland Group chalk and the Triassic Skagerrak Formation.

The planned total depth is 2,085 meters below mean sea level. The well will be drilled with the drilling rig Transocean Leader and the duration is expected to be 45 days.

Lundin Petroleum holds 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with 40 percent interest, Petoro (30 percent) and Det norske oljeselskap ASA (20 percent).

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AGR Receives Contract Extension from Statoil

- AGR Receives Contract Extension from Statoil

Thursday, July 14, 2011
AGR Group ASA

AGR Field Operations has been awarded an extension worth approximately NOK 60 million by Statoil for Inspection and Certification of non-complex lifting equipment. The services will cover Statoil's operations on the NCS, from Snøhvit in the North to Sleipner in the South.

The contract covers 30 offshore installations and 4 onshore facilities. The duration of this extension is 24 months with an option for a further 24 month period worth approximately NOK 60 million in revenue. Including the remaining option, AGR Field Operations estimates the total value to be around 120 MNOK.

Åge Landro, Executive Vice President commented, "We are very pleased with the continued trust shown in our technology and services from Statoil. We have had a successful long term partnership with Statoil across a range of products and services and view this extension as an affirmation of the value we bring to their operations. The geographical coverage and breadth of the workscope under this contract has been challenging and we feel we have managed to deliver both quality and a high standard of service to our customer."

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Songa Offshore Semisub Selected for Statoil's Troll Field

- Songa Offshore Semisub Selected for Statoil's Troll Field

Monday, July 11, 2011
Songa Offshore SE

Songa Offshore announced that its 100% owned subsidiary, Songa Rig AS, has received a Letter Of Award (LOA) from Statoil for the use of Songa Trym for a 3 years firm plus 2x1 year option Drilling Contract on the Norwegian Continental Shelf. The LOA is conditional to mutual agreement of contract terms between the parties which is anticipated to be concluded within 30 days. The firm part of the contract has an aggregated revenue value of approximately USD 462 million inclusive a rig upgrade element and an associated yard stay prior to contract commencement.

The yard stay and contract with Statoil will commence in direct continuation of the rig's current commitment and subsequent demobilization from Statoil Troll license mid-2012.

Songa Offshore will undertake full rig management and operations responsibility of the Songa Trym from current Odfjell Drilling Management at time of transition between contracts.

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Statoil Gets Go-Ahead to Drill Aldous Wells

- Statoil Gets Go-Ahead to Drill Aldous Well

Wednesday, July 06, 2011
Det norske oljeselskap ASA

Statoil has as operator of production license 265, received the Petroleum Safety Authority Norway's consent for drilling two exploration wells on the prospects Aldous Major and Aldous North. Det norske has a 20 percent share in the license.

Det norske has expectations for the Aldous wells, as there is a chance that the prospects are an extension of Lundin's major discovery on Avaldsnes in 2010.

There have been several encouraging discoveries in this area in the North Sea.

In PL 265 a promising gas discovery at Ragnarrock was made 2009. In wellbore 16/2-4 Statoil discovered both oil and gas in the license, in 2007.

The wells 16/2-8 and 16/2-9S are two of four planned wells in the area in 2011, to define the discoveries in both PL 265 and Avaldsnes.

Expected start of the first well is in week 28. The second well will be drilled immediately after. The whole operation is expected to take around 75 days. The wells will be drilled by the semisubmersible drilling rig Transocean Leader.

Licensees in production license 265:

• Statoil (operator) 40 percent
• Petoro 30 percent
• Det norske 20 percent
• Lundin 10 percent

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Statoil to Resume N. Sea Project Following Tax Decision

- Statoil to Resume N. Sea Project Following Tax Decision

Tuesday, July 05, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

Statoil said it will resume development of the Mariner and Bressay field projects in the U.K. North Sea after the Treasury announced it would increase a tax allowance to companies investing in marginal fields.

"We welcome and are encouraged by the positive steps made by this announcement. The negative impact from the tax increase announced in March has been neutralized for the Mariner investment and the project is back on track," said Statoil spokesman Bard Glad Pedersen.

He added that the company is "working diligently with both the Mariner and Bressay projects toward a final investment decision. But it is with Mariner we expect the final investment decision by the end of 2012."

The U.K. government Tuesday offered a concession to the oil and gas industry by raising one tax allowance that applies to North Sea fields. The Ring Fence Expenditure Supplement will rise to 10%, from 6% previously, allowing companies to offset a greater amount of their expenses against their taxes and, "support investment in marginal fields," the U.K. Treasury said in a statement.

Statoil, Norway's largest oil producer, in March postponed development of the projects following the government's decision to raise to 32% from 20% the supplementary charge levied in addition to corporation tax on profits from U.K. oil and gas production.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Songa Snatches New Semisub Gig from Statoil

- Songa Snatches New Semisub Gig from Statoil

Tuesday, July 05, 2011
Songa Offshore SE

Songa Offshore's 100% owned subsidiary, Songa Rig AS, has received and accepted a Letter of Award (LOA) from Statoil for two new build "Cat-D" semisubmersibles with firm terms of 8 years each, and options that could extend this period to 20 years. The firm part of the contract has an aggregated revenue value of approximately USD 2.5 Billion, inclusive of mobilization, with a higher contract value upon program commencement due to escalation provisions taking effect from 2011. Statoil has awarded the contract for the two new build Cat D rigs on behalf of the participants in the Troll-license.

Statoil has an option to award contracts for two additional rigs to Songa.

Mobilization of the units to Statoil will take place in direct continuation of the rigs' delivery from Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME) in 1Q and 3Q 2014. The fixed price, inclusive of yard's project management and commissioning, is USD 565 million per unit with 20/80 payment terms staggered by delivery schedule. The construction cost is expected to be funded from a combination of ongoing cash flows in addition to bank debt.

Asbjørn Vavik, CEO of Songa Offshore SE, said, "We are pleased to secure a contract for two new build high specification semisubmersibles for mid-water harsh environment in the Norwegian North Sea, which is consistent with our strategy of fleet renewal. We consider this an excellent opportunity to further strengthen our relationship with Statoil and manifest our position as a leading provider of offshore rigs for the Norwegian North Sea region. The contract value for the fixed 8 years contracts represents a significant increase in our backlog and earnings visibility."

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