Statoil took writedown on U.S. onshore operations, CEO says

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

Statoil (STO -3.2%) says it took a writedown of NOK4.3B ($694M) on its assets in the Bakken, Marcellus and Eagle Ford plays, as a lack of pipeline capacity has hindered the company from selling its output to regions where it can fetch a higher price.

CEO Helge Lund says it had taken longer than expected for pipelines to be built to take gas from STO's fields to higher paying markets; in the meantime, STO has to sell most of its gas from Bakken and the southern Marcellus, where gas prices are low due to excess supply.

The writedown strengthens the perception that STO overpaid for the assets in first place.