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Statoil: Unclear Whether Common Pattern to Spate of Offshore Incidents

Posted by November 3, 2016

Arne Sigve Nylund, Statoil (STO)'s head of development and production, told Reuters on the sidelines of an oil conference on Thursday:


** As yet unclear whether a recent series of incidents at oil installations off Norway could have could a common, underlying pattern and whether cost-cutting was a factor


** Nylund says: "We have had many incidents in one short period of time. We don't like that and we take it seriously. We cannot lean back and say that it is a statistical phenomenon


** "We are digging into those incidents. It is serious. We are investigating each and everyone. We are now looking to see, if in addition to the individual investigations, there is a common, underlying pattern that we need to dig deeper into."


** Asked whether Statoil had identified a pattern, Nylund said: "No, that is too early to say. We must finalise the investigation first and then we will look if there is a common pattern. We do not see this at the moment."


** Unions and the oil safety watchdog have asked Statoil to look into whether cost-cutting was a factor in those incidents. Nylund said: "At present I do not have evidence that there is a link" (to cost-cutting)


** In the course of two weeks, a Statoil offshore platform caught fire and another was shut after a gas leak. A drilling rig also struggled to contain a well, while five people were injured at an oil terminal and the country's biggest refinery was evacuated over a leak.


** Among the incidents, Statoil experienced a well control incident on Oct. 15 on the drilling rig Songa Endurance at the Troll field in the North Sea


** On Thursday, Nylund said Statoil was continuing to work on shutting down the well


** He says: "We have control over the well and have two barriers. We are working on a controlled, slow work with the well so that we can end this situation ... We need to take the time it needs."

 

(Reporting by Gwladys Fouche)

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