Category: Norway

As oil drops below $55 a barrel, speculation is growing that the central bank of western Europe ’s biggest crude producer will need to cut rates again. A 54 percent slump in Brent crude since a June high has pummeled the offshore industry in Norway , where oil and gas make up 22 percent of gross domestic product. Over the same period the krone has lost about 20 percent against the dollar and 8 percent against the euro. The OBX benchmark stock index is down about 12 percent. The central bank delivered a surprise rate cut last month it said was triggered by plunging crude prices. Since then the oil price development has proven even worse than the central bank anticipated. In an interview yesterday, Governor Oeystein Olsen said $55 oil is “clearly lower” than expected in December. At Norway’s biggest bank, DNB ASA (DNB) , economists say Olsen […]

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OSLO — This has not been a particularly good year for Statoil , the huge state-controlled oil company that has had a commanding presence in Norway ’s economy and society for more than four decades. In the spring, Statoil cut 1,000 jobs, or 4 percent of its work force. In September, it postponed a much-criticized project in the Canadian tar sands for at least three years. On Oct. 29, reflecting collapsing oil prices and a steep tumble of its stock, it reported its first quarterly loss since 2001. And in November, it announced disappointing results from the year’s program of drilling for new oil and gas in the Norwegian Arctic. But it is not just the vicissitudes of oil markets and exploratory wells that are causing difficulties for Statoil. In an era of climate change , the company — and by extension Norway’s entire oil and gas industry, which […]

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OSLO, Dec 23 (Reuters) – Norwegian energy firm Statoil has agreed to reduce its working interest in the non-operated Marcellus shale formation in the United States following a $394 million transaction with Southwestern Energy , it said on Tuesday. "The transaction reduces Statoil’s non-operated holdings at an attractive price, demonstrating the value of the Marcellus assets," head of Statoil’s U.S. onshore business, Torstein Hole, said in a statement. Statoil said it had agreed to reduce its stake in the U.S. Southern Marcellus onshore asset to 23 percent from 29. The divested share represents about 121 square km (12,100 hectares). Statoil’s third-quarter production from the Marcellus play amounted to 130,500 barrels of oil equivalent per day, of which around 4,000 barrels came from the assets included in the transaction. The transaction is expected to close in the first quarter next year, it added. (Reporting by Stine Jacobsen; Editing by Anand […]

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Oil services company Schlumberger gets drilling contract for work in Mariner field in the North Sea from Norway’s Statoil. UPI/A.J. Sisco. STAVANGER, Norway, Dec. 19 (UPI) — Norwegian energy company Statoil said Friday it awarded a drilling contract to oil services company Schlumberger for the vast Mariner field in the North Sea. Discovered in the early 1980s, production at Mariner was delayed because of technological limitations in extracting the denser type of oil. Statoil said it was bringing its experience in Canada and elsewhere to Mariner to facilitate heavy oil development. The British government expects the field to produce around 55,000 barrels of oil per day, about 5 percent of the country’s current output. Statoil said Schlumberger, for an undisclosed sum, will conduct all of the main drilling and well services for the Mariner field. "We will work side by side to meet the challenges in the market, driving […]

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Shell sheds some of its assets in Norway in cost-saving measure. UPI/Mohammad Kheirkhah Finnish fuels company ST1 acquires parts of the Norwegian downstream operations from Shell for an undisclosed sum. The company also takes a joint interest in Shell’s aviation business in Norway. Shell said the measure includes a special retail license agreement to ensure the brand remains "highly visible" in the Norwegian market. "The deal will have no impact on Shell’s other businesses in Norway," the Dutch company said in a statement. The decline in crude oil prices, nearly half of their June value, has forced some energy companies to streamline their portfolios to cope with the market stress. In October, Shell Chief Executive Officer Ben van Beurden said "the volatility in our industry" underlined the importance of keeping a tight hold on costs and spending . The Finnish company operates Shell’s retail fuel stations in Finland and […]

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Norwegian regulator shows oil production down about 5 percent year-on-year. (Photo: Shell) OSLO, Norway, Dec. 17 (UPI) — Production figures from Norway show average daily oil production down about 5 percent year-on-year, a national regulator said in Wednesday report. The Norwegian Petroleum Directorate released production figures for November , showing an average daily production of 1.46 million barrels of oil. "The oil production is 5 percent below the NPD’s prognosis for November and 5 percent below the oil production in November last year," the agency said in its report. Major oil companies from BP to Marathon have trimmed back their expectations as oil prices continue to lose value. The price of oil, nearly 50 percent below June values, is at a point where some drillers may no longer be able to make a profit. Noreco, a Norwegian energy company focused on North Sea oil operations, said Monday its financial […]

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Statoil still spending on North Sea developments despite volatility in the crude oil market. UP/ICasey J. Ranel/USCG STAVANGER, Norway, Dec. 17 (UPI) — A week after signaling a slowdown, Norwegian energy company Statoil said it was investing more than $600 million to develop a North Sea discovery. Statoil holds the majority interest in the Rutil discovery in the Gullfaks reserve area of the North Sea alongside its Norwegian state-owned counterpart Petoro and Austrian energy company OMV. Statoil said it would invest $610 million to develop the discovery using existing infrastructure. "By using existing infrastructure and standardized solutions we are able to create great value for our owners," Ivar Aasheim, a senior vice president for field development on the Norwegian continental shelf, said in a statement Tuesday. Statoil procurement head Jon Arnt Jacobsen said last week the company was suspending contracts for four rigs because of lower profitability. Analysis from […]

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As oil prices keep falling, BP Plc (BP/) is among Norwegian oil producers having to take a hard look at whether to kill off aging offshore fields earlier than planned because squeezing out the last barrels might not be worth it. BP is currently deciding on plans for the five fields it operates in Norway in a study to be completed in the first half, said Jan Erik Geirmo, a Stavanger-based spokesman. “Falling oil prices, lower production and more demanding operations, in addition to significant costs for shutting down and removing old installations and platforms, are continuous challenges that may have an impact on the lifetime of some of our fields,” Geirmo said in an e-mailed reply to questions. What goes for BP also goes for an industry hit by squeezed margins even as the government demands it meet commitments to keep investing to ensure resources are exploited in […]

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Norwegian oil company Statoil said its suspending rig operations in a tough investment climate. UPI/A.J. Sisco.. STAVANGER, Norway, Dec. 5 (UPI) — Current market conditions are making it difficult to sustain drilling operations in Norwegian territorial waters, a procurement director at Statoil said Friday. The bear market for crude oil has forced some in the industry to scale back on their near-term investment forecasts. Brent crude oil prices traded near the $69 per barrel mark Friday for the January contract. Statoil procurement head Jon Arnt Jacobsen said the company was suspending contracts for four rigs because of lower profitability . "This situation is unfortunate, and we are doing what we can to minimize the extent of the suspensions," he said in a statement. The company last month suspended operations for rigs working in the Barents Sea through the end of the year, including Transocean Spitsbergen, which has a day […]

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A drilling rig in the Skaanevik fjord in western Norway. Oil’s price plunge is forecast… ENLARGE A drilling rig in the Skaanevik fjord in western Norway. Oil’s price plunge is forecast to drag down Norway’s economic growth to 1% this year. Associated Press OSLO—A sharp drop in oil prices since the summer is creating a heap of trouble for Norway. Big investments in the oil sector have helped keep the Nordic country’s economy humming along in recent years while many of its European peers faced sluggish growth or even recession. But signs are piling up that one of the world’s wealthiest petro-economies is in for a significant slowdown. A survey by Statistics Norway on Thursday said oil companies expect to reduce investment spending by 14% next year, which it said could drag the country’s economic growth down to 1% from an estimated 2.6% this year. The dire forecast comes […]

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