Offshore staff

STAVANGER, Norway --Project delays in the Norwegian sector are constraining Statoil's oil and gas output. As a result, the company forecasts an increase in its production costs this year to over $4.965/bbl.

The problem fields are Kvitebjorn, Kristin, and Volve. Kvitebjorn had to be shut down temporarily on May 1 while two new wells were drilled. Production is due to resume this fall.
At Volve, start-up has been delayed by late arrival of the drilling rig, but first oil should flow this summer. On Kristin, progress with completions this winter was slower than expected, so the field will not reach plateau production now until the fall.

On the plus side, drilling improvement measures are paying off elsewhere, particularly on Statoil's new production wells in the Tampen area of the North Sea.

5/10/2007