Statoil still sees Arctic potential but adopts stepwise approach

After purchasing some Chukchi Sea leases in 2008 and embarking on an exploration program in the region, in 2012 Statoil placed a hold on its Chukchi drilling plans. So, with the company announcing an 8 percent cut in its capital spending, following its recent earnings results, where does the company now stand in relation to its Alaska Arctic leases and to its Arctic plans in general?

In a Feb. 14 email Knut Rostad, Statoil press spokesperson for international upstream activities, told Petroleum News that the company is scrutinizing its Arctic portfolio as part of its review of its capital spending plans but that it still sees the Arctic’s value as a source of future energy supplies. The company has no plans to drill in the Chukchi in 2014, Rostad said.

“We are taking a stepwise approach to the Arctic, not going faster than technology allows,” Rostad said. “We believe that Arctic resources in the future will become important to meeting the world’s energy demand, but at the same time Arctic operations are often technologically challenging, with high costs.”

Statoil had originally hoped to drill in the Chukchi Sea in 2014, but placed its plans on hold following delays in Shell’s Chukchi drilling efforts. Statoil cited regulatory uncertainty as a major reason for the hiatus in its plans. The company has said that incremental innovation will be needed to devise safe and effective technologies for Chukchi Sea field development and oil production.

—Alan Bailey