Statoil Project Needs More Money

Norway?s state oil company Statoil announced a new cost overrun projection Thursday for its Kristin natural gas field development in the Norwegian Sea, but stressed that the expense does not threaten the project's economic viability.

Statoil?s investment is now expected to increase by $226 million to $3.35 billion.

The new total also includes the use of an additional 500 million kroner ($80 million, euro 59.94 million) Statoil had set aside as a project reserve due to uncertainty about future costs, the company said.

"Kristin is the most demanding reservoir ever developed on the Norwegian continental shelf," said Terje Overvik, executive vice president for Statoil's exploration and production in Norway