Statoil Profits Rise as Two North Sea Finds Announced

StatoilHydro has announced a rise in first quarter profits along with two oil and gas discoveries in the Oseberg area of the North Sea.

The company reported a jump in first quarter operating profit on the back of record oil prices and increased output, with net income at NOK16bn, compared to NOK 9.9bn in the first quarter of 2007.

The company says it will continue to build long-term growth through an extensive exploration programme, to which it can add two North Sea oil and gas finds.

The first discovery was made in a long-reach exploration well from the Oseberg C platform, in the Theta structure, says the company.

While work is underway to determine the "optimal production" solution for the area, exploration team leader Bjørn Inge Braathen says preliminary expected volumes are around five million barrels of oil.

The second oil and gas find is in the Delta S2 structure in the Oseberg South area, believed to contain about 16 million barrels of recoverable oil equivalents.

According to StatoilHydro, the Delta S2 discovery may be tied to the nearby Delta template within a few years, with continued exploration success in the area leading to new development solutions.

StatoilHydro has this year confirmed 15 new discoveries, 12 in Norway and three internationally.

By Ozge Ibrahim