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Oil & Gas

Norwegian oil company to cut costs for 2009

January 14, 2009
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State-controlled Norwegian oil company StatoilHydro ASA has announced plans to cut its 2009 costs by $215 million to adjust to weaker market conditions amid the world economic downturn and lower crude prices, the Associated Press reported. The key player on Norway''s offshore oil fields said in a stock market announcement that the cuts will mainly be made in staff functions, business development, information technology and administration. Crude prices have slipped from a peak of $147 per barrel in July to under $40. StatoilHydro said it plans eight new projects this year, largely profitable with an oil price over $35 per barrel. Five are off the Norwegian coast, with the others located in Angola, Tahiti and the U.S. Gulf of Mexico. The company met its 2008 production target of 1.9 million barrels per day worldwide, and expects to average 1.95 million barrels this year and grow to 2.2 million barrels in 2012.

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