ENI & STATOIL: DELAY STARTAP

Italy's Eni SpA said Friday it and partner Statoil AS decided to further delay the startup of the Goliat oil field in the Barents Sea to mid-2015, following technical challenges and significant cost overruns.

Eni said the Goliat project was currently estimated to cost NOK45 billion ($7.6 billion), compared with an original estimate of NOK30.9 billion in the operator's development plan from 2009.

The field was set to start producing in the fourth quarter of this year, but a much work still remains to finish the rig at the Hyundai Heavy Industries yard in Korea, according to an audit report from Norway's Petroleum Safety Authority.

"The license determined that conditions to depart [from South Korea] at the end of June 2014, and complete commissioning in Norway in the fourth quarter of 2014, were not in place," Eni said Friday.

The Goliat field is the first oil field in the Norwegian part of the Barents Sea, and the rig is specifically tailored for Arctic conditions. Eni said oil industry costs have increased substantially since the development plan was presented in 2009, and the project's unique nature required additional activities.

"Production startup is targeted for mid-2015. A fast ramp-up to steady production is expected, given the opportunity to test and fine-tune the FPSO before it leaves South Korea," Eni said.

Eni is the operator of the Goliat field with a 65% ownership stake. Statoil owns 35%.

wsj.com