Norwegian oil company Statoil and its partners in the Snohvit partnership have concluded that the development of oil reserves associated with the Snohvit gas field, located in the Barents Sea, is not economic and so plans to exploit the feature have been abandoned.
<p>The plan for development and operation, approved in 2002, was drawn up solely around recovery of gas resources at Snohvit because it was concluded that recovery of the field's oil zone would not be economically viable. <br /><br />However, following new reservoir knowledge and technological advancements, it was decided last summer to re-evaluate the possible development of associated oil reserves. <br /><br />While oil production will now not take place, gas production from Snohvit is scheduled to commence late in 2007.</p>