No need for writedowns on U.S. assets, Statoil CEO says

10/8/2013

No need for writedowns on U.S. assets, Statoil CEO says

BY BRADLEY OLSON

HOUSTON (Bloomberg) -- Statoil ASA sees no need to write down the value of its portfolio of oil and gas assets in the U.S., CEO Helge Lund said in an interview in Houston on Monday.

“The assets that we have there are performing well, according to plan,” Lund said. “We do regular reviews of the assets in our portfolio everywhere in the world when we do quarterly reporting. So far there has been no need for writedowns.”

BP Plc and Royal Dutch Shell Plc are among European producers that have been forced to reduce the estimated value of U.S. shale formations since last year.

Stavanger-based Statoil set a goal in 2011 to reach oil and natural gas output of 2.5 million barrels a day by 2020, production that would require an investment of $21 billion a year through 2017, said Lund.

“Our portfolio can deliver that,” he said. “We need to evaluate, as we move forward, is that the best plan? We do not live on volumes and neither do the investors, so we will make sure that we do the right thing.”

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