Mr Helge Lund CEO of Norwegian oil and gas producer StatoilHydro as saying that, the company expects the oil industry’s investment spending to continue to decline in 2010 if oil prices remain steady around current levels.

Mr Helge Lund said “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. He said that 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 USD 13.5 billion in 2009 down from USD 16 billion in 2008. But he said StatoilHydro has had constructive dialogue with oil services providers over costs and quality. Last year Mr Lund called on oilfield service companies to cut costs.

Mr Lund said “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.”

Mr 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. He said that “We feel in Russia generally, and more specifically in relations with Gazprom, that StatoilHydro is a welcome partner. We feel that we work well with them in the partnership and that they appreciate our competence.”

He added that “I cannot comment on this 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.”

source : Reuters

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