Statoil has announced that it would pull out of the Chukchi Sea off Alaska following uncompetitive exploration results.

The company’s decision comes shortly after Shell announced it was withdrawing from all Arctic drilling.

According to the company, the decision to exit the leases and close the office in Anchorage, Alaska has been taken as the leases in the Chukchi Sea are not considered to be competitive within the company’s global portfolio.

Statoil exploration executive vice-president Tim Dodson said: "Since 2008 we have worked to progress our options in Alaska. Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"Our understanding of the challenges and opportunities has increased considerably over the last years. This gives Statoil a unique position and experience which the company will continue to apply going forward."

The decision will see Statoil pulling out of 16 of its leases, in addition to its stake in 50 leases in the Chukchi Sea operated by ConocoPhillips.

"Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities."

Awarded in the 2008 lease sale in Alaska, the leases are set to expire in 2020.

In September, Shell announced that it will stop exploration activity in Arctic waters offshore Alaska following disappointing results from drilling at the Burger J exploration well in Chukchi Sea to a total depth of 6,800ft.

In a separate announcement, Statoil said it has completed its previously announced acquisition of First Oil’s 24% share in the UK licence for the Alfa Sentral field in a deal valued at $15m.

Following the transaction, the company has taken a 24% interest in UK Continental Shelf licence P312 which consists of the Alfa Sentral field along with licence PL046 on the NCS.

Image: Statoil decided to exit Alaska as the leases in the Chukchi Sea are no longer considered competitive within its global portfolio. Photo: © Statoil