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Statoil in 'US well sell-off'

Statoil is reportedly set to sell off about 230 onshore wells in the US as it looks to shed gas producers following a plunge in North American natural gas prices.

The Norwegian state oil company aims to dispose of the oil and gas wells, located in the Anadarko basin in Oklahoma and along the US Gulf Coast in Louisiana and Texas, in a 14 November auction, company spokesman Morten Aanestad told Dow Jones.

The tally will include 180 onshore natural gas wells that Statoil gained through its $4.4 billion acquisition of US unconventional player Brigham Exploration last year.

The crash in North American gas prices, resulting from a supply glut due to the boom in shale production, has rendered such assets unprofitable with regional producers cutting back on their gas exposure.

Statoil will also put up for sale “shortly” another two packages, including natural gas wells spread over 7500 gross acres in Brooks County, Texas, and 10,000 gross acres in the Permian basin area of West Texas, Aanestad said.