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Lund sets sights on Lofoten play

StatoilHydro head Helge Lund today called on Oslo to decide whether it wants to tap the "full potential" of the Norwegian continental shelf, repeating his call for the government to open up Nordland VI, Nordland VII and Troms II, off the Lofoten and Vesteraalen islands, for exploration.

The region is currently off limits to E&P because it is an important breeding ground for fish and lies close to shore in an area with an extensive tourist industry. However, oil companies regard it as Norway's most promising unexplored area.

Lund capped a presentation at an oil industry policy seminar, held in Sandefjord, by telling Norwegian politicians it was time to reassess the oil industry's access to the region.

"The future of the activity on the Norwegian continental shelf and the government's petroleum income depends on choices that are to be made in 2009 and 2010," Lund told the seminar.

"Increasing our resources is a challenge for the industry and for Norway as a nation. The politicians must decide whether they want to make use of all the resources on the Norwegian continental shelf."

In a release, he said: "We have made no secret of the fact that we believe the best opportunities are in Nordland VI and VII and Troms II and we still believe that."

The Norwegian giant plans to drill five or six strategically important wells off Norway this year. After that, the company will have completed its drilling plans for the frontier acreage it currently holds.

"For a large player like StatoilHydro, having a balanced portfolio of opportunities is crucial," Lund said.

"Our responsibility is to point at the opportunities we see, and we are particularly pointing at the areas outside Nordland and Troms, and the northern part of the Barents Sea.

"I understand that high polarisation makes the discussion of acreage politically complex territory, but it would be an enormous historical act of negligence if the industry did not point out the possibilities it sees on the (shelf).

"It is up to the government and the Storting (parliament) to decide whether they will act on these possibilities," he added.

At present, Troms II, Nordland VI and Nordland VII are off limits to exploration until the management plan for the Barents Sea is revised next year.

Lund also reiterated that StatoilHydro is committed maintain production at about 1.5 million barrels of oil equivalent per day for the next 10 years.

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