Statoil cuts 2007 production forecast

Norwegian oil and gas producer Statoil cut its 2007 production forecast by 7.7 to 11.5 per cent to 1.15-1

Norwegian oil and gas producer Statoil cut its 2007 production forecast by 7.7 to 11.5 per cent to 1.15-1.20 million barrels of oil equivalent per day.

Statoil shares were down 1.5 per cent to 169.00 crowns earlier this morning. The company had flagged the reduction last month, when it announced a shutdown of its Kvitebjoern gas field in the North Sea for at least five months this year.

Norwegian energy and metals group Norsk Hydro, which partners Statoil in many North Sea fields and is in the process of selling its oil and gas assets to Statoil, said it will review its own 2007 target after Statoil's move.

Norsk Hydro shares were off 1.4 per cent to 209.00 crowns.

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In February Norsk Hydro affirmed its 2007 production target of 605,000 boed on a stand-alone basis.

Analysts said the reduction was not dramatic for Statoil.