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Statoil aims for 2.5 million boepd production by 2020

Exploration & Production

Statoil expects to raise production from around 1.9mn bpd of oil equivalent in 2010 to more than 2.5 million boepd in 2020.

Statoil said that to realise the project portfolio Statoil increased investments for 2011 to US$16 billion and expected the investments in 2012 to be at around the same level.

Statoil said it grew production at a compound annual growth rate of 3 per cent in the past decade, excluding the merger of the oil assets of Norsk Hydro. Production was expected to continue growing at the same rate over the next 10 years, reaching a level of above 2.5 million boepd in 2020, the company said in a statement

CEO Helge Lund, outlining the company's growth strategy, said that the Norwegian Continental Shelf (NCS) still had a lot of potential going forward.

"The NCS has a significant potential and continues to yield long term, superior value creation opportunities in an investment friendly environment. The NCS remains a very attractive and globally competitive province for future oil and gas activities," Lund added.

Statoil said the expanded production would be the result of a run of new projects progressively coming on stream.

The offshore business clusters include Gulf of Mexico, Brazil, Angola, the Caspian region and Arctic outside the NCS.

The company said it would also benefit from many new projects internationally, including offshore Brazil.

Statoil expects to drill 20 – 25 high impact wells in the years 2011 – 2013. “Our recent performance marks an early indication that our sharpened exploration strategy is working. This reaffirms that our competence and experience allow us to pursue an exploration strategy emphasising early access at scale and priority to high impact opportunities,” added Helge Lund.