Bloomberg News

Statoil Sees No Need for Writedowns on U.S. Assets, Lund Says

October 07, 2013

Statoil ASA (STL), Norway’s largest energy producer, sees no need to write down the value of its portfolio of oil and gas assets in the U.S., Chief Executive Officer Helge Lund said in an interview today in Houston.

“The assets that we have there are performing well, according to plan,” Lund said. “We do regular reviews of the assets in our portfolio everywhere in the world when we do quarterly reporting. So far there has been no need for writedowns.”

BP Plc (BP/) and Royal Dutch Shell Plc (RDSA) are among European producers that have been forced to reduce the estimated value of U.S. shale formations since last year.

Stavanger-based Statoil set a goal in 2011 to reach oil and natural gas output of 2.5 million barrels a day by 2020, production that would require an investment of $21 billion a year through 2017, said Lund.

“Our portfolio can deliver that,” he said. “We need to evaluate, as we move forward, is that the best plan? We do not live on volumes and neither do the investors, so we will make sure that we do the right thing.”

To contact the reporter on this story: Bradley Olson in Houston at bradleyolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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