Statoil says 70% oil recovery is achievable

HOUSTON, May 6, 2014 /CNW/ - Statoil (OSE: STL, NYSE: STO) executive vice president for its North American operations Bill Maloney said today that the company has set a goal of recovering an average of 70% of the oil in its Johan Sverdrup field in the Norwegian continental shelf.

"We've set a very large goal for oil recovery for Johan Sverdrup," says Maloney. "With the right technology and ingenuity, we believe 70% is achievable over the life of the field for this giant development in Norway."

As the world's largest offshore operator, Statoil has earned a worldwide reputation for its technical excellence, safety record and environmental performance, he adds. But by focusing its attention carefully on increasing oil recovery, the company has steadily improved the recovery rates and longevity of the large fields it develops.

"While every situation is unique, we believe that the right technology can shift the economics in the right way," said Maloney. He noted that Statoil has been able to change the economic picture in many of its international operations, including Brazil with the application of technology in its heavy oil offshore fields.

The typical expected recovery rate for Gulf of Mexico Paleogene Wilcox fields is 6-10%, although production in these fields is in early days and data is limited. Statoil believes that with both cost-efficient technology and policies that encourage long-term investment, operators may be able to double this rate to 20% or higher, which means longer field life and more efficient resource management.

Statoil is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. Statoil is headquartered in Norway with 23,000 employees worldwide, and is listed on the New York and Oslo stock exchanges. More information on www.statoil.com.

Media Contact: Jim Schwartz, [phone], [email protected]

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SOURCE: Statoil

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