Statoil to build new platform to squeeze more oil from Snorre field

|About: Statoil ASA (STO)|By:, SA News Editor

Statoil (STO) says it plans to build a new platform at its Snorre field in the North Sea to extract another 300M barrels of oil and extend the project's lifetime to 2040.

The $6.79B project has been in doubt since Norway's government decided in May to increase taxes, but STO has managed to increase recoverable reserves and its chief partner in the project, state holding firm Petoro, has lobbied hard for the new platform.

The third platform at Snorre will increase the recovery rate to 55%, well above the industry's typical recovery rate of 30%-35%.

Exxon Mobil (XOM) also holds a 17.4% stake in the license.