Drilling for oil at Snoehvit after all

Up to now it has been considered unprofitable to bring up the oil, which is located in a thin layer below the large gas sub sea resources.
However, the partners in the Snoehvit organisation have now decided to drill an appraisal well to map the resources in the Barents Sea field's structure more closely.

They say the appraisal well will provide further data on Snoehvit's recoverable oil reserves and better map gas reserves in the western part of the field's structure. The partners will assess whether to continue with the project when the results from the appraisal well are ready.

An appraisal well at Snoehvit must be drilled by the summer of 2007 if potential oil production is to begin before the field's gas pressure becomes too low.

The benefits associated with a potential coordination with the Goliat oil find development, where Eni is operator, are among the options under consideration. A coordination with Goliat was studied earlier with a negative result. Drilling of the appraisal well is dependent on available rig capacity in the area.

Environmental organizations have strongly criticised the new decision to drill for oil.

Statoil is operator for development and oeoperation of Snøhvit with a 33.53% share. The other partners are Petoro (30.00%), Total E&P (18.40%), Gaz de France (12.00%), Amerada Hess Norge (3.26%) and RWE Dea Norge (2.81%).

(c) Statoil