Statoil delivers bang for the buck

by on September 26, 2012 3:48 pm GMT

Spending on M&A by the Norwegian state oil company
accounted for about a third of the estimated Nkr70 billion outlay in 55 such
transactions by fellow multinationals including Shell, ExxonMobil and Total,
Statoil stated in its latest quarterly review cited by newspaper Stavanger

A large chunk of this was spent by the company on its $4.4
billion acquisition of US tight oil player Brigham Exploration, while it has
also been divesting assets including its Statoil Fuel & Retail division and
some North Sea interests as part of a streamlining of its portfolio.

Statoil’s strategic shift to focus on high-impact
exploration aimed at yielding big discoveries through early entry into frontier
areas has also been paying off, with big finds both on home turf and abroad set
to exceed last year’s stellar effort that yielded the Johan Sverdrup and
Skrugard strikes.

Exploration chief for Norway, Gro Gunleiksrud Haatvedt said
the company is “approaching a new record year” after its finds in the first
eight months have so far yielded more oil and gas than those in the whole of

The Norwegian discoveries include Havis in the Barents Sea
and King Lear in the mature North Sea, while it has hit the jackpot off Brazil
with Pao de Acucar (Sugar Loaf) and also off Tanzania with the Zafarani gas
find, followed up by the Lavani hit.

The two Tanzanian finds have combined resources of around 9
trillion cubic feet, more than the volume of the entire Snohvit gas field in
the Barents.