Statoil Buys Tullow Oil Stakes; Looks to Maintain Future Output

   By Kjetil Malkenes Hovland

OSLO--Norway's Statoil ASA (STO) said Tuesday it had agreed with the U.K.'s Tullow Oil PLC (TLW.LN) to acquire stakes in four oil drilling licenses off Norway, including a 20% stake in the Wisting discovery in the Barents Sea, at an undisclosed price.

The acquisition makes Statoil the biggest stakeholder in Wisting with a 35% stake. Wisting, operated by OMV AG (OMVKY), is estimated to hold 241 million barrels of oil equivalent and is situated in the Hoop area deep into the Arctic, more than 300 kilometers (186 miles) north of Hammerfest on the northern tip of Norway's mainland.

The 67% state-owned oil and gas producer said the deal would increase its stake in another license in the Hoop area to 55% from 35% and that it would also take over a 40% stake in a license in the southern Barents Sea as well as boosting its ownership in a license in the Norwegian Sea.

Statoil said last week it had increased its stakes in five Barents Sea licenses in recent months, through deals with DEA, OMV, ConocoPhillips and Point Resources. The company is planning a major exploration campaign in the Barents Sea next year in a bid to add more resources to maintain output in the next decade.

"New, substantial discoveries are required to maintain the production on the Norwegian continental shelf, and resource additions from Northern Norway are central in reaching this target," Statoil said.

Write to Kjetil Malkenes Hovland at kjetilmalkenes.hovland@wsj.com

(END) Dow Jones Newswires

September 06, 2016 03:37 ET (07:37 GMT)

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