Statoil takes tighter hold on North Sea assets

French supermajor Total said Monday it agreed to sell off its entire 51 percent stake in the Martin Linge field to Statoil. The Norwegian company said the field's infrastructure was modern and production costs would be low.

"This transaction adds competitive growth assets to our portfolio on the Norwegian continental shelf," Arne Sigve Nylund, Statoil's executive vice president for development and production, said in a statement.

A May accident during construction of Martin Linge infrastructure at a South Korean shipyard left six people dead and more than 20 others injured. Less than a week before the accident, the Petroleum Safety Authority of Norway said the results of an audit found serious deficiencies that could impede the start of operations at Martin Linge. Some of the equipment, the PSA said, was left exposed to dust, particles and other impurities.

Nevertheless, Statoil said operations could begin during the first half of 2019 and some of the components for Martin Linge were already in place in the North Sea. The field holds an estimated 300 million barrels of oil equivalent and production could extend into the 2030s.

Other components of the deal included Statoil's acquisition of the 40 percent stake held by Total in the Garantiana discovery in the North Sea. The Norwegian company said the reserve potential is in a range between 50 million and 70 million barrels of oil equivalent and a development concept was already under review.

Norway is a main oil and gas producer for the European economy. The Norwegian government owns shares Statoil, though the country's central bank warned recently of the risk of holding too much stock in oil and gas assets.

Statoil reported adjusted earnings after tax for the third quarter at $2.3 billion, more than double the amount from the same period last year.