StatoilHydro ASA (STO), a Norwegian oil company, on Wednesday provided its production outlook for 2012. The company also said it has agreed to sell its wholly-owned subsidiary IS Partner A/S to EDB Business Partner ASA for NOK 1192 million at a net debt-free basis.The company said it expects equity oil and gas production to increase from 1.9 million barrels of oil equivalents per day or boepd in 2008 to 2.2 million boepd in 2012.The company also forecasts an increase both in Norwegian continental shelf or NCS production levels and from its international upstream portfolio. The company anticipates NCS production at around 1.5 million boepd for the next ten years, reaching 1.55 million boepd in 2012, while it expects International equity production to grow to 0.65 million boepd in 2012.In 2012, the company expects 75% of its international production to be subject to various types of production sharing agreements or PSA. At an oil price of US$75 per barrel, PSAs are assumed to have an effect on entitlement production of around 150,000 boepd in 2008 and 240,000 boepd in 2012.The company said that high oil prices increase the profitability and speed of cost recovery. However, they also increase taxation in kind and reduce the volumes entitled to the company. The merger between Statoil and Hydro's oil and energy business is expected to deliver annual synergies at around 6 billion NOK before tax, 2 billion NOK higher than previously estimated.StatoilHydro estimates a capital expenditure of about NOK 75 billion in 2008 and about NOK 80 billion in 2009.In a separate release, StatoilHydro said it has agreed to sell its wholly-owned subsidiary IS Partner A/S to EDB Business Partner ASA for NOK 1192 million at a net debt-free basis. The company expects to complete the sale during the first quarter of 2008, subject to the approval of Norwegian competition authorities. IS Partner is based on Hydro's IT unit and has been an independent legal entity since 2003. StatoilHydro acquired all shares of IS Partner when the merger between Hydro's oil and gas activities and Statoil was implemented on October 1, 2007.STO is currently trading at $30.28, down 47 cents or 1.53%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.