Norway: Statoil’s 1Q Operating Income at 10 Billion

Norway’s state controlled oil company, Statoil, reported first quarter 2012 net operating income of NOK 57.9 billion (USD 9.98 billion) , a 14% increase compared to NOK 50.8 billion (USD 8.76 billion) in the first quarter of 2011.

“Statoil grew production by 11% and realised high oil and gas prices in the first quarter of 2012, generating strong financial results for the period. Production was as expected, and we maintain our guidance for 2012,” says Helge Lund, Statoil’s president and CEO.

Lund continues: “We continued to start up new fields and ramp up production, delivering record international production. On the Norwegian continental shelf (NCS), we increased gas production in line with our strategy of gas optimisation. We also delivered stable oil production, as a result of our successful Improved Oil Recovery efforts.”

In the first quarter of 2012, Statoil completed 12 exploration wells, eight of which were discoveries, a 67% success rate.

During the quarter, Statoil announced three high-impact discoveries offshore Norway, Tanzania and Brazil, continuing the exploration success from 2011. Over the past 12 months a total of six high-impact discoveries have significantly added to the company’s resource base, bolstering the reserve replacement going forward.

“Since the previous quarter, Statoil has signed a co-operation agreement with Rosneft, to jointly explore frontier areas of Russia and Norway. We have preaccepted a cash offer for our shares in Statoil Fuel & Retail ASA, reinforcing our position as a technology-focused upstream company. We continue to leverage our competitive strengths towards delivering on the production outlook of above 2.5 mmboe per day for 2020,” says Lund.

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Offshore Energy Today Staff, May 8, 2012