The Saga Petroleum assets due to be acquired by Statoil will boost its daily production off Norway by roughly 80,000 barrels of oil equivalent.
About 80 per cent of this total will be oil and the rest gas.
"The agreement with Norsk Hydro maintains our position as the leading oil and gas company on the Norwegian continental shelf," says Statoil chief executive Harald Norvik.
"Our long-term production profile will be strengthened, with an associated cash flow. That will provide a better basis for continued profitable growth."
Mr Norvik notes that implementing the deal with Hydro will reinforce the group's position in its most important core areas off Norway. A stronger position as the largest operator on the Norwegian continental shelf provides coordination and efficiency gains on a number of major fields.
Increased reserves and production, as well as efficiency improvements, will make an important contribution to strengthening Statoil's competitive standing.
The group's position will be significantly reinforced in the Tampen Wedge area of the northern North Sea, where it is currently operator for the major Statfjord and Gullfaks fields.
Implementing the agreement would mean that Statoil takes over as operator on 1 July 2003 for Snorre and Visund. Currently operated by Saga and Hydro respectively, these Tampen Wedge fields are tied operationally to Statfjord and Gullfaks.
Taking over the operatorships for Snorre and Visund will provide a basis for further integration of Statoil's operations in the Tampen Wedge area.
A corresponding coordination will be achieved on the Halten Bank in the Norwegian Sea by becoming operator for the Kristin field.
The agreement also means that Statoil retains the strategically important position as the leading company on Troll in the North Sea, and gives it an interest in a promising deepwater block on the Gjallar Ridge in the North Sea.
See the press release.