At a seminar in Kristiansand Monday, Vice President Vidar Birkeland revealed that the break-even cost for Statoil’s project portfolio has been reduced from 70 dollars per barrel four years ago, to 27 dollars per barrel today.
This is in part due to some projects being tied back to existing infrastructure, which reduces the project cost dramatically.
“It is also a result of a closer collaboration with our suppliers. In general, suppliers have cut costs by 15 to 20 per cent compared to a few years back, but more importantly, suppliers have helped us reengineer projects to make them smarter and more cost efficient,” said Birkeland.
The meeting in Kristiansand was part of a series of meetings in which the Norwegian oil giant aims to engage in a dialogue with the supply industry. Statoil currently has more than 10,000 contracted suppliers.
“Statoil’s ambition is to cooperate with the best performing suppliers. Our intention is to be open to new ideas and predictable,” said VP Supply Chain, Rannfrid Skjervold.
More than 80 people from 50 companies attended the seminar.