Norwegian state oil firm Statoil has found oil in the Falcon structure in the Norwegian Sea with estimated recoverable reserves of about 60 million barrels of oil, offshore weekly Upstream said yesterday.

"Statoil has struck oil with its Falcon exploration wildcat, 20 kilometres northeast of the Norne field off mid-Norway," Upstream said. Oil authorities declined to confirm the report, saying Statoil had not yet completed drilling.

"Statoil is still drilling. We are awaiting a statement from the company," Jan Hagland, a spokesman for the Norwegian Petroleum Directorate, told Reuters. He said Statoil would probably complete drilling in the Falcon area in about a week. Company officials declined to comment.

The Falcon area is located near Statoil's Swallow oil find, estimated to hold new reserves of about 100 million barrels. A source close to the project, who declined to be named, confirmed a find but
said, "It is unclear how big the (Falcon) find is, but it is probably smaller than the Swallow find."

Statoil operates Falcon and Swallow with a 40 per cent stake. Norsk Hydro holds 13.5 per cent, Agip 11.5 per cent, Enterprise 10 per cent, while the Norwegian State's Direct Financial Interest (SDFI) holds the remaining stake.

Meanwhile, Statoil said yesterday that companies representing 10 offshore licences have applied to deliver natural gas under Norwegian long-term gas delivery contracts. "A total of 10 Norwegian offshore licences have applied to the Gas Supply Committee for allocation to existing gas sales contracts," Statoil said in a statement.

Statoil chairs the Gas Supply Committee, which recommends to the Oil and Energy which will in turn cover Norway's long-term gas supply commitments. "A final recommendation will be handed over to the ministry on April 5, 2001," said Elisabeth Aarrestad, who heads the committee's secretariat. "Our recommendation will be based on extensive analysis," she told Reuters.

She said at least 3.8 billion cubic metres would be awarded for the 2001-02 gas year, but exactly how much would be allocated in the coming round was unclear. Norway is so far committed to deliver a total of 1,460 billion cubic metres of gas under long-term contracts in 2001-2029, of which 350 billion cubic metres remain unallocated to supply fields.

Statoil said new fields on offer included Statoil's Kristin, which would start delivery in 2005, and BP Amoco's Skarv with an estimated delivery start in 2004-06 - both located in the Norwegian Sea. Other new fields included ExxonMobil's Sigyn and Norsk Hydro's Oseberg Delta, both in the North Sea, which would be able to deliver from 2002.

Also, Statoil's Heidrun, Norne, Sleipner, Troll Gas and Aasgard as well as Hydro's Oseberg have applied to supply additional volumes. Statoil said 10 other licences had reported to the committee that they have volumes available for later allocation rounds, including Statoil's Dagny, Heidrun, Norne, Tyrihans and Gullfaks fields, Hydro's Ormen Lange, Klegg, Njord and Visund projects and TotalFinaElf's Skirne/Bygve.