Norwegian oil company Statoil ASA (STO) said Thursday
that the partners in the Kristin gas export project have decided to terminate
the project due to unsustainable economics caused by increased investment costs
and increased risk to volume availability.
MAIN FACTS:
-The
Kristin gas export project (KGEP) - a pipeline connection between the Kristin
field and Polarled - was sanctioned by the partners (Statoil 53.4%, Petoro
35.6% and GdFS 11%) in conjunction with the Polarled project sanction late
2012.
-KGEP represented less than 5% of the Polarled volumes and the termination does
not influence the Polarled project execution.
-KGEP included Kristin platform modifications and a 30-kilometre pipeline to
tie into the Polarled pipeline. The opportunity for the future connection of
the Kristin field to the Polarled pipeline is maintained as necessary
connection points continue to be part of the project.
-At 1141 GMT, Statoil shares were down 0.4% at NOK148 against a 0.5% rise in
the wider
Oslo
market.