The Norwegian oil and gas company Statoil has released its 2017 results. Hydrocarbon production rose by more than 5%, from 1,978 kboe/d in 2016 to 2,080 kboe/d in 2017, thanks to an increased flexible gas production, a higher US onshore production and the start up and ramp up of new fields. Gas production grew by nearly 13%, from 834 kboe/d to 941 kboe/d, while liquid production remain stable at around 1,140 kboe/d. The reserve replacement ratio (RRR) was 150% in 2017.
The 2018 production growth is expected to reach 1-2%/year in 2018 and will amount 3-4%/year for the total 2017-2020 period. As of December 2017, Statoil had completed 28 exploration wells with 14 commercial discoveries. New project start-ups should add around 170 kboe/d in 2018, 300 kboe/d in 2019, 90 kboe/d in 2020, 150 kboe/d in 2021 and 300 kboe/d in 2022. One of Statoil's core assets, the 3.1 mboe Johan Sverdrup field, is currently under development and 70% complete. The project's plan for development and operation (PDO) for the second phase will be submitted to the Norwegian government in the second half of 2018 and the field should start producing in 2019.
In 2017, Statoil invested US$9.4bn (€7.6bn). The group will raise its investments and exploratory spendings in 2018 and 40 exploration wells will be drilled during the year at a total cost of US$1.5bn (€1.2bn). Besides, Statoil also confirmed it has set itself ambitious CO2 emission reduction targets. By 2030, approximately 15-20% of its total capital expenditures will be dedicated to new energy solutions.