StatoilHydro to Drop Norway Gas Project

Norwegian energy company StatoilHydro is to recommend dropping the Troll Future Development project in Norway following proposals from the country's Ministry of Petroleum and Energy.

The ministry has said that gas production permits will not be increased beyond current levels.

"The project is dependent on increased gas production permits for the Troll field. We have to take the ministry's decision into account, and have therefore recommended that the project is stopped with immediate effect," says StatoilHydro's CEO Helge Lund.

StatoilHydro says it will withdraw from the related gas network expansion (GNE) project aimed at building a new gas export pipeline from the Norwegian continental shelf to Europe.

Troll project partners include supermajors Shell, ConocoPhillips and Total.

By staff writer