Norway deal expected to ease path for Statoil's Johan Sverdrup project

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

Statoil (STO) +2.1% premarket after Norway's government and opposition lawmakers reach a compromise to start electrification of three North Sea oil fields by 2022, which should reduce the risk of further delays in starting the giant Johan Sverdrup project.

A majority in parliament had demanded that STO and other energy companies include three more fields in their power plan for Sverdrup as part of broader efforts to cut greenhouse gas emissions; the companies would have needed to start laying cables to the other fields in Sverdrup’s start-up phase, which STO said would delay the 2019 output start and lead to losses of as much as $3.3B.

STO says the compromise means full electrification will not happen in the first phase, as the second phase will start some time in 2022.