StatoilHydro to Boost R&D

Norway's Statoilhydro has announced it will boost spending on research and development, investing NKr2.14bn this year.

The 2008 R&D budget is 20% higher than the amount spent separately by Statoil and Norsk Hydro on research in 2007 prior to the merger, says the company.

StatoilHydro will divide its research and development portfolio into five programmes: exploration, increased oil recovery, new development solutions, oil and gas value chain, and new energy including cooperation with universities and colleges.

The group hopes the investment will work towards forming a new technology strategy, currently being developed for application from 2009 onwards.

Norwegian companies have so far accounted for 80% of the research and development for work on the Norwegian Continental Shelf (NCS), by developing 'internationally competitive technology', says StatoilHydro.

"Much of the growth in the time ahead will however occur outside Norway, and for this reason the technology we develop must be competitive internationally.

"On the NCS, the development will involve activities in deeper waters further north. At the same time, StatoilHydro will also be involved in similar challenges internationally," says Svenn Ferry Utengen.

By Ozge Ibrahim