Norway Grants $610 Million To Develop İts Gas Fields

Despite falling oil demand and low oil prices, Statoil is proceeding with North Sea developments, according to director of Climate and Energy Program at the Stockholm Environment Institute in Tallinn Centre on Thursday.



Norway's energy giant Statoil decided to spend $610 million to develop its Gullfaks Rimfaksdalen gas and condensate field in the North Sea, the company announced on Tuesday.



"Statoil is considered among the top 20 global oil and gas companies by the size of its assets while the majority of its shares are state-owned," Lahtvee said adding that the company is strong enough to continue with its investment plans despite the unstable oil market. 



Statoil and its partners decided to develop the Gullfaks Rimfaksdalen valley in the North Sea and the company plans to provide close to 80 million barrels of oil equivalent for the field when operational.



 According to Lahtvee, falling demand and low oil prices hit Statoil as severely as all the oil and gas sector companies resulting in losses, and the company began selling some overseas assets of its less lucrative projects.



"Statoil's commencement of North Sea developments like the Gullfaks Rimfaks Valley is just the company's implementation of its previously agreed investment plans as these were smaller risk projects compared to the non-conventional projects within their investment portfolio," he said.



Additionally, Thomas Sterner, professor of environmental economics from the University of Gothenburg said that Statoil will still make some investments although these will be less in quantity than if the oil price had been higher.



Statoil suspended two rigs because of overcapacity in the rig portfolio on the Norwegian continental shelf, on Nov. 6, 2014, and afterwards, the company shelved its three rigs in the Norwegian continental shelf in December for the same reason. 



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