Business | Oil & Gas

Statoil to pay $700m for Gulf of Mexico assets

Norwegian energy group Statoil agreed to pay $700 million for rights to two Gulf of Mexico deepwater discoveries and one exploration prospect from US oil producer Plains Exploration & Production.

  • Reuters
  • Published: 00:00 September 19, 2006
  • Gulf News

Oslo: Norwegian energy group Statoil agreed to pay $700 million for rights to two Gulf of Mexico deepwater discoveries and one exploration prospect from US oil producer Plains Exploration & Production.

The deal, which includes rights of first negotiation for acquiring other PXP deepwater Gulf of Mexico assets, strengthens Statoil's presence in the region.

Earlier this month Statoil, along with US firms Chev-ron and Devon Energy announced a "record-setting" deepwater find at an appraisal well in the Gulf of Mexico located close to the Norwegian company's new assets.

"We don't disclose the size of production from this acquisition but our goal is that Gulf of Mexico will contribute 100,000 barrels of oil per day after 2012," Rannveig Stangeland, public affairs manager at Statoil, said.

"This acquisition is important to achieving that target," she said. Statoil is well placed to take advantage of Gulf of Mexico fields with its deepwater expertise gained from its core activities on the Norwegian Continental Shelf, officials say.

Statoil shares were up 1.9 per cent to 161 crowns at 1002 GMT, valuing the company at around 348.7 billion Norwegian crowns ($53.45 billion), and just above the 1.0 per cent rise on the Dow Jones oil and gas index.

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