Another international oil and gas producer, Statoil, has announced its early exit from Alaska’s Arctic exploration leases.
The Norwegian company announced Tuesday that the leases it holds in the Chuckchi Sea “are no longer considered competitive within Statoil’s global portfolio”.
Executive Vice President for Statoil exploration, Tim Dodson issued a statement saying, “Since 2008 we have worked to progress our options in Alaska. Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities.”
The company will exit the leases which were awarded in 2008 and end in 2020, as well as close the Alaskan office in Anchorage.
Governor Bill Walker responded with disappointment, “We are disappointed in Statoil’s decision to not pursue further offshore development in the Chukchi, and understand it is largely tied to Shell’s decision to terminate its offshore drilling efforts in Alaska as well. This further emphasizes the need to develop our onshore opportunities, such as the 1002 section of ANWR.”
The decision means Statoil will exit 16 Statoil-operated leases, and its stake in 50 leases operated by ConocoPhillips, all in the Chukchi Sea.
This announcement follows Royal Dutch Shell’s September 28 resolution to cease Arctic offshore exploration after reportedly disappointing results from one well.
In October Statoil announced that falling oil prices have taken a worse toll on profits than expected, with their third quarter adjusted operating profit almost halved compared to the same period last year.
*Photo of 1984: Statfjord C slepes til Vats., courtesy of Leif Berge, Statoil