Statoil produced 1.9 billion barrels of crude in 2016

statoil

Norway’s frontline oil company, Statoil said it produced a total of 1,978 million barrels of crude oil in 2016, the group made the disclosure in its annual sustainability report.

The group said while international oil price went below USD30 per barrel, Statoil’s average realised liquids price was still below USD 40 per barrel for the year as a whole.

Commenting on the report, CEO of Statoil ASA, Eldar Sætre in a letter to shareholders said that:

The company’s organic capex for 2016 was USD 10.1 billion, a USD 3 billion reduction from the original guiding. Statoil completed 23 exploration wells in 2016 and continued to replenish the portfolio, adding close to 25,000 square kilometres of acreage for new opportunities going forward.

“We had a contractor fatality during construction work in South Korea, and on 29 April we lost 13 colleagues when a helicopter crashed on its way from Gullfaks B to Bergen. For the year as a whole, the serious incident frequency came in at 0.8, an increase from the two previous years”.

“We are not satisfied with this development and have taken several steps to reinforce safety measures throughout the company,”

“We delivered our cost improvement programme above target. The next step will be to go from project mode to a culture of continuous improvements, and we have set a target of achieving USD 1 billion in additional cost improvements in 2017,”

“We believe a low carbon footprint will make us more competitive in the future. We also believe there are attractive business opportunities in the transition to a low carbon economy. Statoil intends to be part of this transformation in order to fulfil our purpose of turning natural resources into energy for people and progress for society. Our climate roadmap explains how we plan to achieve this and how we will develop our business, supporting the ambitions of the Paris climate agreement”.

“By reworking solutions from reservoir to market, we have transformed our opportunity set. The break-even price for our ‘Next generation’ portfolio of projects is now at USD 27 per barrel of oil equivalents”, he said.

Statoil is also present in Nigeria in Agbami field, 110 kilometres off the Nigerian coastline. The company started started producing oil on 29 July 2008.

The field has an average daily equity production of 48,000 barrels of oil equivalent per day. Total field reserves are estimated at around 1 billion barrels of oil equivalent. Statoil has a 20.21% stake in Agbami, while Chevron is the operator with 67.30% interest and Petrobras holds the remaining 12.49%.