Statoil hails major North Sea oil find

NORWEGIAN energy giant Statoil yesterday announced a "high-impact oil discovery" in the North Sea, raising hopes that the area has a much longer life-span than previously estimated.

The firm said the prospect, Aldous Major South, could produce 200 million to 400 million barrels of oil equivalent (boe) and said there were signs that it may form part of a wider area offering even more potential.

These early estimates suggest the prospect could be just as important, if not more, than the last major North Sea find, the Catcher prospect. Catcher was discovered last year and was hailed as the biggest North Sea find since the Buzzard reservoir in 2001. Initial estimates suggested it could hold more than 300 million barrels of oil.

Statoil's senior vice-president for exploration, Gro Haatvedt, said of Aldous Major Smith: "The North Sea is quite a basin - it never stops delivering. This may not be an elephant field, but on an international scale it is a significant discovery." She added: "We are considering a new, stand-alone production hub."

Oil analyst Endre Storloekken of Danske Bank said the find would not amount to a renaissance for the North Sea, but it would substantially extend the life of the area.

"It demonstrates that although the North Sea in general is quite mature, it's still possible to make decent finds there," he said. "I wouldn't call it new life. I would probably describe it as a life extension."