Statoil turns to Lundin to make Arctic development profitable

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

Statoil (STO +0.7%) is seeking talks with Lundin Petroleum (OTCPK:LNDNF) to link the Gohta discovery to STO's Johan Castberg field to determine whether developing the Arctic fields together will make both projects viable by reducing the cost of connecting them to shore via a pipeline.

The talks are still at a “working level” and aimed at finding a joint solution for infrastructure, Lundin CEO Ashley Heppenstall says.

In June, STO again postponed a development decision for Johan Castberg after an exploration campaign aimed at boosting volumes and making the project more profitable uncovered crude in only two of five prospects.