“Net operating income was impacted by net impairment charges of $0.8 billion, mainly related to an unconventional onshore asset in North America of $0.9 billion, triggered by lower than expected production,” Statoil said in a statement.
Statoil did not name the asset.
Over the past year the company has been trying to turn around its operations in North America, which mostly consist of offshore production in the Gulf of Mexico, as well as shale oil and gas in Texas, North Dakota, Pennsylvania, Ohio and New York.
Statoil said its year-on-year results were up due to higher prices for both oil and gas, high production levels and strong refinery margins.
Like other oil companies, Statoil has been slashing costs in order to cope with a 50 percent drop in crude prices since 2014.
“With an oil price below $52 per barrel, we have generated $3.6 billion in free cash flow so far this year …. This has further strengthened our financial position,” CEO Eldar Saetre said in a statement.
