NEW YORK, June 20, 2012 /PRNewswire/ -- Statoil's oil and gas production in North America continues to show strong growth. In the last decade, Statoil's North American portfolio had a Compound Annual Growth Rate (CAGR) of more than 20% and the company projects a strong growth rate also going forward.
"Average production from our US and Canadian fields in the first quarter 2012 was 149,000 barrels of oil equivalent (boe) per day – up as much as 75% compared to the corresponding quarter in 2011. We are on track to reach our ambition of producing above 500,000 boe per day in 2020," says Executive Vice President Bill Maloney, head of Statoil's business area for Development and Production in North America.
At its US investor day in New York today, 20 June 2012, Statoil executives presented achievements and ambitions for the North American upstream activities.
Solid resource base"We have a well-rounded portfolio and growth potential in all our business clusters. The resource base in North America has grown well above six billion boe, representing around 30% of Statoil's total resource base," says Maloney. Successful start-up of the Statoil operated Leismer project in Canada and continued ramp-up of production in US shales and tight oil plays are key components behind Statoil's recent production growth. "Safe and responsible development of new US onshore resources is strongly underpinning the growth strategy. We now have production from more than 1000 wells and hold more than one million net acres in three of the best US plays," says Maloney. "The acquisition of Brigham Exploration last year has provided us with first class tight oil assets in North Dakota and Montana and valuable organizational capacity. The integration process is progressing well and according to plan. In parallel, we are moving forward on the development of an operational organization in Houston for our Eagle Ford operatorship, commencing early 2013." Progressing projects and maturing discoveries Offshore, Statoil has equity in several major development projects that are planned to come on stream this decade, like Jack/St.Malo, Big Foot and Julia in the US Gulf of Mexico and Hebron offshore Newfoundland and Labrador in Canada. Onshore Canada, Statoil is progressing its plans for the Leismer Expansion and Corner projects. In the US Gulf of Mexico, Statoil last year made a discovery in a Paleogene prospect called Logan in Walker Ridge. There are significant quantities of oil in place. However, the recovery potential is uncertain. Evaluation is ongoing, and an appraisal well will be drilled in 2013. "As an operator, Statoil has a strong track record of using innovative technologies to enhance oil recovery. Our ambition is to apply technology and experience from the Norwegian Continental Shelf to the deeper and more complex reservoirs in the Gulf of Mexico. Over several years, we have worked on a technology program called "Crack the Paleogene". We hope elements from this technology tool kit will help us profitably develop the Logan discovery," says Maloney. Active exploration program Offshore Canada, activity is also aimed at maturing Statoil-operated developments. Recoverable volumes from the company's Mizzen discovery in the Flemish Pass are now estimated at 100-200 million barrels. In 2012-2013 the company plans to drill two to three exploration wells in nearby acreage, to determine the resource potential in the Flemish Pass Basin.