Norway's Statoil decides to withdraw from oil exploration in Alaska

Norwegian oil and gas company Statoil said on Tuesday it has decided to withdraw from oil exploration in Alaska, echoing a recent move by Royal Dutch Shell to pull out of the Arctic area.

The leases in the Chukchi Sea are no longer considered competitive within Statoil's global portfolio, so the decision has been made to exit the leases and close the office in Anchorage, Alaska, the Norwegian company said in a statement.

"Since 2008 we have worked to progress our options in Alaska. Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities," Tim Dodson, executive vice president for exploration in Statoil, was quoted as saying.

The decision means Statoil will exit 16 leases in the Chukchi Sea operated by itself and also its stake in 50 leases operated by ConocoPhillips in the same area. The leases were awarded in the 2008 lease sale in Alaska and expire in 2020.

Statoil said the studies, research and activities that have taken place in Alaska have given the company significant skills and expertise that can be leveraged in other opportunities in northern environments in the future.

"Our understanding of the challenges and opportunities has increased considerably over the last years. This gives Statoil a unique position and experience which the company will continue to apply going forward," Dodson said.

Shell announced in September that it decided to stop its exploration activity in Alaska as its discoveries were insufficient to warrant further exploration. Endit