Norwegian oil main Statoil says it has determined to exit its operations in Alaska because it tightens up its exploration portfolio.

The determination signifies that Statoil will exit its 16 operated leases, and its stake in 50 leases operated by ConocoPhillips, all within the Chukchi Sea. The leases had been awarded within the 2008 lease sale in Alaska and are set to run out in 2020.

Statoil will even shut its workplace in Anchorage, Alaska, the corporate mentioned.

The firm says the choice comes amid an effort to optimize its portfolio and strengthen its monetary efficiency and positioning for long-term worth.

“Since 2008 we have worked to progress our options in Alaska. Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities,” says Tim Dodson, government vp for exploration in Statoil.

Statoil’s exit comes following Shell’s failed bid to seek out recoverable oil and fuel within the Chukchi and Beaufort Seas after spending $7 billion on exploration there.

More not too long ago, the U.S. Interior Department determined to cancel the 2 remaining Arctic oil and fuel lease gross sales beneath the present five-year leasing program ending in 2017 on account of present market situations and low trade curiosity, successfully halting drilling offshore Alaska beneath the Obama administration.

Last month, the Department of Interior’s Bureau of Safety and Environmental Enforcement (BSEE) additionally denied requests from Shell and Statoil for lease suspensions, which might have prolonged the expiration date of the leases past their main phrases of ten years. The BSEE mentioned that, amongst different issues, “the companies did not demonstrate a reasonable schedule of work for exploration and development under the leases”.

Dodson added: “Our understanding of the challenges and opportunities has increased considerably over the last years. This gives Statoil a unique position and experience which the company will continue to apply going forward.”

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