LONDON Nov 22 U.S. oil company Chevron
said on Friday the development of its North Sea Rosebank project
was not currently economically attractive, raising doubts about
a resurgence of the North Sea oil industry as fears rise over
Chevron said Rosebank, located west of Shetland in the UK
North Sea, did not "currently offer an economic value
proposition" to justify such a large investment.
Chevron declined to comment on the projected cost of
Rosebank, though estimates of up to $8 billion were circulating
in news reports over the past year.
Statoil sold its stake in the oil and gas
development earlier this year to OMV of Austria.
Chevron's hesitation is a blow for the prospects west of
Shetland, a region crucial to plans to revive production in the
British North Sea.
It is also a setback for Cameron International Inc
and its newly formed OneSubsea joint venture with Schlumberger
, which recently won a $540 million award from Chevron
for equipment work at Rosebank.
Cameron said on Friday its total 2014 revenue from Rosebank
was estimated at $30 million, and its shares fell 1.5 percent.
The project remains in the initial engineering phase, with a
final investment decision planned for 2014, and Chevron said it
would continue to work with partners OMV and Denmark's Dong
to improve its viability.
Chevron is now finalising its budget for 2014, which will be
an investment-heavy year as it completes its huge liquefied
natural gas export project at Gorgon in Australia, as well as
three Gulf of Mexico projects due to start up next year that
total $14 billion in cost. The budget is due out in December.