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Strengthening positions on NCS

February 3, 2005, 09:00 CET

Statoil has concluded two agreements with Shell concerning licence transactions in different areas of the Norwegian continental shelf (NCS).

One is a swap deal which expands the group’s holdings in Snorre and Norne. Located in the North and Norwegian Seas respectively, these fields are both operated by Statoil.

In addition, the group has increased its interests in discoveries and prospects in the Norne area as well as the Alve discovery in the Norwegian Sea.

For its part, Shell is acquiring a share of the Statoil-operated Kvitebjørn licence in the North Sea.

“This transaction strengthens our operatorship of Snorre as part of the harmonisation of licence interests in the Tampen area of the North Sea,” says Terje Overvik, executive vice president for Statoil’s Exploration & Production Norway business area.

“At the same time, we are securing access to more reserves and exploration prospects around our Norne development. That will help to strengthen our long-term output with a net production contribution.”

The agreement means that Statoil is primarily swapping gas production for oil output.

A deal has also been reached with Shell under which Statoil is selling 10 per cent interests in production licences 251, 322 and 327.

This deepwater acreage is located in the Norwegian Sea, and plans call for exploration wells to be drilled on two of the licences during the present year.

The agreement strengthens existing collaboration between the two companies in this part of the NCS.

Due to take financial effect from 1 January this year, both agreements are subject to approval by the Ministries of Petroleum and Energy and of Finance.

The swap transaction is presented in the table below:

Interests being transferred From Statoil To Statoil Statoil's share after swap
PL 193 (incl Kvitebjørn)
6.45%
-
43.550%
Kvitebjørn Oil Transport
6.45%
-
43.550%
PL 057 (incl part of Snorre)*
-
4.90%
16.300%
PL 128/128B (Norne)
-
6.00%
31.000%
PL 128 (excl Norne)
-
10.00%
50.455%
Norne Gas Transport
-
6.00%
31.000%
PL 159B (incl Alve)
-
25.00%
75.000%
* Corresponds to an increase of 1.8 per cent in Snorre, making Statoil's share of the unitised field 15.577 per cent.

The sale of exploration licences is presented in the table below:

Interests being transferredFrom StatoilStatoil's share after sale
PL 25110%90%
PL 32210%90%
PL 32710%70%