Bloomberg News

Statoil Prepares for Luva Gas Development, Sees 2016 Output

December 13, 2011

(Updates with company comment in fourth paragraph.)

Dec. 13 (Bloomberg) -- Statoil ASA, Norway’s biggest oil and natural-gas producer, moved a step closer to developing the 34 billion-kroner ($5.8 billion) Luva gas field as it presented a program for an environmental and community impact assessment.

Statoil plans to develop Luva, 140 kilometers (87 miles) north of the Norne field in the Norwegian Sea, using a floating production unit attached to seven sea-floor wells, the Stavanger-based company said today in a website statement. It expects to start production at the field in 2016.

Norway, the world’s biggest gas exporter after Russia, has sought to develop a production hub in the Norwegian Sea that would also include the Linnorm and Zidane finds. The country is seeking to raise gas output as North Sea oilfields are depleted after 40 years of operation. The Scandinavian nation has almost doubled gas output in the past decade.

Statoil expects to make a “concept decision” in January before beginning work on the impact assessment and a development plan, Ola Anders Skauby, a company spokesman, said today by telephone from Stavanger.

Luva, in production license 218, has an estimated 47 billion standard cubic meters of gas and 800 million cubic meters of condensate in recoverable reserves, Statoil said. Norway pumped about 106 billion cubic meters of gas last year, according to the Norwegian Petroleum Directorate.

Statoil operates the production license and holds a 75 percent stake, while Exxon Mobil Corp. owns 15 percent and ConocoPhillips has 10 percent, the directorate’s website shows.

A separate impact study into an export pipeline will be carried out by Gassco AS, the operator of Norway’s gas-export network, Statoil said.

--Editors: Amanda Jordan, Alastair Reed

To contact the reporter on this story: Stephen Treloar in Oslo at streloar1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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