Statoil has announced this week that it has discovered between 30 million and 80 million barrels of oil located in a prospect that was first drilled over twenty years ago in 1992 and subsequently left idle when the initial discoveries were considered too small.
The site is close to its North Sea Grane field, and the new estimate vastly exceeds the original expectations of six million barrels. The proximity to an existing asset will also minimise operational costs for Statoil and remove the need for expensive new drilling infrastructure. The company has confirmed that it is hoping to tie its fresh discovery to the existing operations at Grane.
Grane began to produce in 2003, and last year it was the third-largest oil producer in Norway, with around 95,000 barrels daily. The new find is also located close to another Statoil site that the company found to be economically enticing last year with between 18 and 33 million barrels of oil.
The news will be positive for Statoil’s shareholders, whose shares have recently been hit by falling oil prices. The company owns 57pc of the new discovery’s production licence, with Petero holding 30pc and ExxonMobil owning 13pc.Last updated on 11:50AM - 25/10/14