OSLO - Norwegian oil and gas producer StatoilHydro expects the oil industry's investment spending to continue to decline in 2010 if oil prices remain steady around current levels, its CEO told Reuters on Wednesday.
Norway's oil regulator has voiced concern that once ongoing projects are completed, investment spending on the Norwegian shelf could sharply fall in 2010 after oil prices tumbled to around $50 per barrel from $147 in mid-2008.
"If the current oil price environment continues and the outlook is not significantly changed, there will be further reductions in investments in the oil sector generally, and more specifically on the Norwegian continental shelf," Helge Lund said in an interview.
Lund said it was too early to discuss more exact CAPEX plans for 2010 and would not specify the oil price needed for investment spending to remain steady next year.
StatoilHydro has forecast CAPEX spending of roughly $13.5 billion in 2009, down from $16 billion in 2008.
But he said StatoilHydro has had "constructive dialogue" with oil services providers over costs and quality. Last year Lund called on oilfield service companies to cut costs.
"We see all over the world that people have to adjust their cost base, and we have a common interest in doing this because without it, it would be hard to launch new projects," Lund said.
Lund declined to comment directly on an ongoing row between Russian companies and Norway's largest telephone group Telenor but said that Russia, like other countries, needed long-term predictability to entice foreign investors.
Telenor's has said that its legal woes in Russia, where it could use its multi-billion dollar stake in a mobile operator, should send a stark warning to would-be investors in Russia.
StatoilHydro is due to decide next year on its multi-billion dollar investment in Russia's giant Shtokman gas field in the Barents Sea. It already holds 24 percent in a company designed to develop Shtokman, in which Russia's Gazprom has 51 percent and France's Total 25 percent.
"We feel in Russia generally, and more specifically in relations with Gazprom, that StatoilHydro is a welcome partner," Lund said. "We feel that we work well with them in the partnership and that they appreciate our competence."
"I cannot comment on this (Telenor) case specifically but what I can say is that for oil and gas companies long-term predictability is extremely important, not only in Russia, but in all countries where we invest," he added.
Norway's oil regulator has voiced concern that once ongoing projects are completed, investment spending on the Norwegian shelf could sharply fall in 2010 after oil prices tumbled to around $50 per barrel from $147 in mid-2008.
"If the current oil price environment continues and the outlook is not significantly changed, there will be further reductions in investments in the oil sector generally, and more specifically on the Norwegian continental shelf," Helge Lund said in an interview.
Lund said it was too early to discuss more exact CAPEX plans for 2010 and would not specify the oil price needed for investment spending to remain steady next year.
StatoilHydro has forecast CAPEX spending of roughly $13.5 billion in 2009, down from $16 billion in 2008.
But he said StatoilHydro has had "constructive dialogue" with oil services providers over costs and quality. Last year Lund called on oilfield service companies to cut costs.
"We see all over the world that people have to adjust their cost base, and we have a common interest in doing this because without it, it would be hard to launch new projects," Lund said.
Lund declined to comment directly on an ongoing row between Russian companies and Norway's largest telephone group Telenor but said that Russia, like other countries, needed long-term predictability to entice foreign investors.
Telenor's has said that its legal woes in Russia, where it could use its multi-billion dollar stake in a mobile operator, should send a stark warning to would-be investors in Russia.
StatoilHydro is due to decide next year on its multi-billion dollar investment in Russia's giant Shtokman gas field in the Barents Sea. It already holds 24 percent in a company designed to develop Shtokman, in which Russia's Gazprom has 51 percent and France's Total 25 percent.
"We feel in Russia generally, and more specifically in relations with Gazprom, that StatoilHydro is a welcome partner," Lund said. "We feel that we work well with them in the partnership and that they appreciate our competence."
"I cannot comment on this (Telenor) case specifically but what I can say is that for oil and gas companies long-term predictability is extremely important, not only in Russia, but in all countries where we invest," he added.
