As operator on the Snøhvit field, Statoil last night informed the Ministry of Petroleum and Energy that the cost on the Snøhvit development has increased, and the new investment estimate is now NOK 58,3 billion. This is an increase of NOK 7 billion as compared to earlier estimates.

The first gas production from the Snøhvit field is expected to begin on 1 June 2007. This is eight months later than earlier stated. According to Statoil, the project still fulfils the company’s profitability criteria.

-It is very unfortunate that the costs from the Snøhvit development increases, and that the project is delayed, says Mrs Thorhild Widvey, Norwegian Minister of Petroleum and Energy. – I expect Statoil will do what is necessary to keep the cost development and the further progress under control.

-I will inform the Storting about the development of the Snøhvit project, both written and during the submission of the National Budget for 2006, says Minister Widvey.