Statoil sell-off to be reinvested off Norway

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Gains on the sale of some Statoil assets in the North Sea will be reinvested in other major Statoil projects on the Norwegian continental shelf, chief executive Helge Lund said this week. Much of it will be used for development of the huge Johan Sverdrup oil discovery.

Statoil announced Monday that it was selling parts of its Gullfaks and Gudrun oil fields to OMV of Austria. OMV will also take over Statoil’s stakes in the Schiehallion and Rosebank oil fields in the British sector of the North Sea.

Statoil will earn around NOK 15.7 billion on the deal, freeing up capital to invest in development of new major oil discoveries off Norway. “The sales will give us better capacity to invest in, among other projects, Johan Sverdrup,” Lund told newspaper Aftenposten.

He noted that Statoil has been among the best oil companies in finding new sources of oil on the Norwegian continental shelf. Enormous amounts of capital are needed, however, to bring the oil discoveries into production, so Statoil is keen to cash in on some assets to develop others. Statoil’s stock rose on the news on Monday.

newsinenglish.no staff