Norway’s Statoil is the latest European oil major to reach record-high production in 2017, posting growth of more than 6% as efficiency increased and production costs declined, Kallanish Energy learns.
The state-owned oil firm produced 2.08 million barrels of oil-equivalent per day (MMBOE/d) last year, compared to 1.97 MMBOE/d the year before. A record was also registered in the October-December quarter, when production reached 2.13 MMBOE/d vs. 2.09 MMBOE/d in Q4 2016.
The growth was mainly due to higher flexible gas production to capture higher prices, increased output in U.S. onshore and ramp-up of new fields, Statoil’s chief financial officer, Hans Jakob Hegge, said Tuesday.
Gas production alone rose 13% in the year, to 941,000 BOE/d, compared to 834,000 BOE/d, while the group’s liquids production remained unchanged at 1.14 MMBOE/d.
Hegge added 2017's total production was 10% higher than in 2013, but at a 25% lower unit production cost. The average number of days per well dropped 45% since 2013, increasing drilling efficiency of meters per day by 85%.
Meanwhile, the sanctioning of new projects and positive reserve revisions on existing fields put the company's reserve replacemet ratio at 150% last year.
For 2018, Statoil forecasts CAPEX of $11 billion, of which $1.5 billion will go into exploration. Production should grow by 1-2% this year, rising to 3-4% per year until 2020.
Its next generation portfolio, due to come online in 2022, is expected to reach an average breakeven of $21 per barrel, with the flagship Johan Sverdrup field estimated to breakeven at Phase 1 at below $15/Bbl.