Statoil aims to double gas output by 2015

Norwegian oil group Statoil plans to double its annual natural gas output to 50 billion cubic metres by 2015 and said today it…

Norwegian oil group Statoil plans to double its annual natural gas output to 50 billion cubic metres by 2015 and said today it was on track to meet production and financial goals for 2007.

"An ambition to raise equity production of gas towards 50 billion cubic metres by 2015 is being presented," it said in a statement before a capital markets day in Stavanger, west Norway.

"This represents a doubling from the present level, and corresponds to an average annual growth of eight per cent in 2004-15," it said.

Chief executive Helge Lund called the gas goal "very ambitious", adding: "The gas market is expanding rapidly, and much of our core competence lies in the gas value chain."

READ MORE

Energy producers off Norway, the world's number three oil exporter, are increasingly shifting to gas because big oil finds are becoming scarce.

Statoil said it would focus on liquefied natural gas (LNG), develop new fields and search for more gas both off Norway and abroad.

It was also considering a second phase for its Snoehvit LNG field in Arctic Norway, due to come on stream in late 2006.

Statoil reiterated its forecast that 2005 oil and gas output would rise to 1.175 million barrels of oil equivalent per day (boed) from 1.106 million boed in 2004.

Along with rival producers, Statoil has enjoyed booming prices for oil and gas this year.

It also said that it was raising its long-term price forecast, guiding future investments, to $25-30 per barrel in 2005 money from $22 a barrel.

"Financial and operational targets for 2007 are being upheld," Statoil said.