Statoil to Head Oil Exploration Cooperation in Barents Sea

By Kjetil Malkenes Hovland

OSLO--Norway's Statoil ASA (STO) said Tuesday it will take the lead in a five-company cooperation effort to explore the Barents Sea, a move to reduce the cost of operations in the frontier Arctic area after an oil price plunge since last year.

The cooperation is set to last for at least three years, and initially includes Eni SpA (E), Lundin Petroleum AB (LUPE.SK), OMV AG (OMV.VI) and GDF Suez SA (GSZ.FR), companies that have licenses in the area or that have already made discoveries there, Statoil said.

Crude oil is trading slightly above $60 a barrel, compared with over $100 a barrel a year ago, and the lower prices are encouraging oil companies to cut costs, but they are also an incentive to explore for additional resources near existing discoveries to boost their profitability.

The companies are setting up working groups to share data and address topics such as weather and ice conditions, oil spill response, logistics, emergency preparedness, mobile drilling rigs and working environments, Statoil said.

Write to Kjetil Malkenes Hovland at [e-mail]

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