Some 18-20 Oil, Gas Fields off Norway in Danger of Shutting Output Early

Some 18-20 oil and gas fields off Norway are in danger of shutting output earlier than planned due to low oil prices, but the impact on the overall output outlook would be limited, the head of the Norwegian oil directorate told Reuters on Tuesday.

 

"There are about 18-20 fields that lie in the danger zone," Bente Nyland, the head of the agency tasked with managing the country's oil and gas resources, told Reuters.

 

"Those ... fields, which include (Statoil (STO)'s) Veslefrikk field, represent about one percent of total production," she said.

 

"Put altogether, it is not a big crisis, but clearly every field delivers cash, so it is important to ensure that profitable resources are extracted," she said on the sidelines of an industry conference.

 

Nyland added oil companies were working on a number of development plans of new oil and gas fields, but more would be known around May-June. Statoil said earlier it expected to present plans for two fields this year, for Trestakk and Utgard.

 

Asked whether there was potential for more than these two development plans to be presented to authorities this year, Nyland said: "Yes there is."


(Reporting by Stine Jacobsen, editing by Gwladys Fouche)