Statoil struck oil

Norwegian oil and gas giant, Statoil has made a huge discovery. The company announced it has found a new field that holds massive amounts of recoverable oil and gas near the 30 year old Valemon field.

The majority state owned company estimated it could retrieve between 20 and 75 million barrels of oil and natural gas. Although the margin is very large, the actual field is huge and Statoil did not get to test the new area.

“We are very satisfied with making a new discovery in the close proximity of the Valemon gas and condensate field currently under development. By this discovery we can only add value to the Valemon field development,” said Statoil's vice president for exploration, Irene Rummelhoff.

The Valemon field was discovered in 1985 in the Norwegian Sea. The gas and oil field lies thousands of meters beneath the sea. Although found decades ago, first production from the field is expected later this year. 34/10-23 well drilled from the Kvitebjorn platform at more than 7,000 meter deep and found the massive field. It was the deepest high pressure and temperature well Statoil ever attempted.

Statoil is the seventh largest oil company in Europe and eleventh in the World. Last year, the majority state owned Norwegian company reported an income exceeding 110 billion US dollars.