Statoil strengthens positions on NCS

Statoil has concluded two agreements with Shell concerning license transactions in different areas of the Norwegian continental shelf (NCS).

One is a swap deal, which expands the group's holdings in Snorre and Norne. Located in the North and Norwegian Seas respectively, Statoil operates both fields.

In addition, the group has increased its interests in discoveries and prospects in the Norne area as well as the Alve discovery in the Norwegian Sea.

For its part, Shell is acquiring a share of the Statoil-operated Kvitebjørn license in the North Sea.

"This transaction strengthens our operatorship of Snorre as part of the harmonization of license interests in the Tampen area of the North Sea," says Terje Overvik, executive vice president for Statoil's Exploration & Production Norway business area. "At the same time, we are securing access to more reserves and exploration prospects around our Norne development. That will help to strengthen our long-term output with a net production contribution."

The agreement means that Statoil is primarily swapping gas production for oil output.

A deal has also been reached with Shell under which Statoil is selling 10% interests in production licenses 251, 322, and 327.

This deepwater acreage is in the Norwegian Sea, and plans call for exploration wells to be drilled on two of the licenses this year.

The agreement strengthens existing collaboration between the two companies in this part of the NCS.

Due to take financial effect from Jan. 1, both agreements are subject to approval by the Ministries of Petroleum and Energy and of Finance.

The swap transaction is presented in the table below: