Statoil to review Snorre recovery project, as capex cuts, new taxes weigh

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

Statoil (STO -0.7%) says it may delay an investment decision on its Snorre recovery project in the North Sea after announcing plans last year to build a new drilling and processing platform at the field to extract an extra 300M barrels of oil and extend output until ~2040.

"We have to revisit the project," CFO Torgrim Reitan says without further explanation, but STO last year postponed its Johan Castberg oil project in the Barents Sea, citing among other reasons a Norway tax change limiting deductions companies can make.

STO has since cut planned spending by 8% for the next three years and said it would be more selective about which projects to invest in.