Barents Sea gas disappoints Statoil

Oct. 2, 2012 at 6:43 AM
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STAVANGER, Norway, Oct. 2 (UPI) -- Norwegian energy company Statoil said studies of natural gas reserves in the Barents Sea concluded there wasn't enough there for gas export expansion.

Statoil said its partners -- GDF Suez, RWE Dea Norge, Total and Norwegian energy company Petoro -- at the Snohvit license area in the Barents Sea concluded natural gas discoveries there so far haven't provided a basis for capacity expansion.

The company, however, said capacity increases would be re-examined if additional natural gas discoveries are made.

Statoil said last month that construction started on a $41.6 million research center that was part of its efforts to increase recovery rates of natural resources on the continental shelf to 60 percent. The company said about half of its research budget was set aside to help improve recovery rates

The Norwegian Ministry of Petroleum and Energy announced it received applications from 47 companies for a bidding round for reserves on its continental shelf. Production in July was hurt to striking rig workers.

Natural gas from Snohvit is delivered to a liquefied natural gas production facility through an 88-mile pipeline.

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