BP may shut down Ula field
Wednesday 30 December 1998
A temporary closure of the field, which produces 30,000 barrels of oil a day, is one of a number of options being considered in an attempt to cut costs, and a decision will be taken late next month or early in February, a spokesman said. BP is the lead operator in the Ula field with a 57.5 per cent stake.
The announcement yesterday is seen by oil industry sources as an attempt to put pressure on Statoil, the Norwegian state oil company, to cut its charges for transporting oil from Ula through the Statoil pipeline to the Ekofisk distribution platform where oil is loaded for shipment to refineries.
These charges are said to be as high as $5 a barrel, according to unconfirmed reports in the Norwegian press. "We have had talks with Statoil and the matter is now with the Norwegian oil and energy ministry," a BP spokesman said.
If Ula is shut down BP will have to pay the costs of care and maintenance but Statoil's revenues will dry up immediately. Some of the 80 workers on the Ekofisk platform may also be affected, a spokesman for BP Norway said.
BP's other nearby North Sea oilfield, Gyda, which produces 40,000 barrels a day and has lower operating and transport costs, is not affected.
But other oilfield operators of marginal oilfields worldwide could be faced with similar choices if the downturn in crude oil prices shows no signs of being reversed in the next 12 months.
North Sea oil prices for delivery in February edged up 35 cents to $10.46 a barrel yesterday, but the outlook remains depressed.
BP was the most actively traded stock on the London market yesterday and prices fell by 8.5p to 908.5p.
In New York shares in Halliburton, the world's largest oil service company, fell by $2 after a profits warning.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name in favour of its Lumia brand
- 2 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Couple die within 28 hours of each other after being married for 73 years
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial – with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali 2014: What is the festival of lights and how is it celebrated?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...