StatioHydro Projects and Capital Expenditures Uneffected by Low Oil Prices

Norwegian oil and gas producer StatoilHydro claim that lower oil prices are not affecting its projects or capital expenditures.

Due to growing fears over the world economy and demand amid the credit crisis, oil prices have tumbled to near $70 per barrel - less than half of a $147 peak hit in July - and down from about $90 at the start of this year.

"There is no immediate change to any projects or capital expenditures. (Oil) prices are not dramatically lower than those at the start of the year," StatoilHydro's chief spokesman Ola Morten Aanestad said.

Aanestad told Reuters StatoilHydro had a strong funding position, virtually no debt and was looking to grow as always.

"Opportunities can come out of this for us, just like for others in our position," he said.

Aanestad said StatoilHydro was closely watching its partners and suppliers who may be affected by the credit crunch but has not seen "any substantial" impact so far.

"I am not aware of any particular challenge. Most of our key projects are with strong counterparties," Aanestad said.

Author: Jo Amey