Statoil acquires EnCana assets

Norway’s Statoil today signed an agreement to acquire EnCana’s Deepwater US Gulf of Mexico portfolio for $2.0 billion.

Statoil said in a statement that the portfolio is comprised of a number of high quality discoveries and exploration opportunities, with the potential to deliver 30,000 net barrels oil equivalent per day by 2008/9, increasing to more than 100,000 net barrels after 2012.

The acquired properties contain expected discovered resources of 334 million net barrels oil equivalent, and expected total resources in excess of 500 million net barrels.

The portfolio comprises an average 40% working interest in 239 gross blocks, covering 1.4 million acres (5665 Km2). The core of the portfolio is the Tahiti development and the Tonga, Fox, Jack, St Malo and Sturgis discoveries. Statoil will hold a 25% interest in the ChevronTexaco operated Tahiti development, which is planned to deliver first oil in 2008.

“This acquisition creates a new international core area for Statoil,” commented said Statoil’s Peter Mellbye, Head of International Exploration and Production. “US production, with its attractive fiscal regime and stable political environment, provides an attractive balance to our overall international portfolio.”