More reserves uncovered in Norwegian waters

A day after confirming a new discovery of natural resources in the North Sea, the Norwegian government said more oil was uncovered in the Norwegian Sea.

The Norwegian Petroleum Directorate, the nation's energy regulator, said energy company Statoil uncovered oil near an existing field in the southern waters of the Norwegian Sea while drilling a wildcat well, a well tapping into an area not previously known to contain hydrocarbons.

The NPD said that, while oil was encountered, the find was considered minor. Preliminary estimates put the size of the discovery at between 1.8 million and 18.8 million barrels of recoverable oil equivalents.

The wells drilled by Statoil were about 4 miles north of the Njord field. Faroe Petroleum is working alongside operator Statoil at the Njord field and announced the start of an exploration, appraisal and production program in August. Faroe's Chief Executive Graham Stewart said that, if successful, the opportunity would add to nearby successes and build on the company's core areas of activity.

On Monday, the NPD said a regional subsidiary of French supermajor Total discovered gas while drilling a wildcat well the northeast part of the Martin Linge field. Natural gas from the entire field, formerly known as Hild, would be shipped by pipeline to the United Kingdom while any oil extracted would be stored offshore.

Norway is a major supplier of oil and natural gas to the European economy. The government estimates production in August was lower than the previous month, but better than expected because of closures of some fields.