Continuing with Kvitebjørn

October 3, 1999, 14:00 CEST

Efforts to clarify the profitability of a Kvitebjørn development will be continued by operator Statoil and its partners in the North Sea field.

A well earlier this year in the Gamma structure near this gas and condensate discovery, which lies east of Statoil's Gullfaks field, gave disappointing results.

Had the outcome been more positive, it could have helped to make a Kvitebjørn project more robust in financial terms.

A team has been evaluating the reservoir on the basis of the Gamma well, and its preliminary findings show that estimated reserves in the field must be reduced.

On the basis of revised estimates submitted by Statoil to the steering committee for the licence on 2 November, agreement was reached with partners Norsk Hydro and Elf to re-assess the economics of a development.

This work aims to clarify whether Kvitebjørn is sufficiently profitable to justify an application to Norway's Gas Supply Committee in December for allocation of the field to a gas sales contract.

In addition, the review will determine whether a plan for development and operation should be submitted to the authorities later this year.