Statoil Ready to Boost Spending Again After Slashing Costs

Statoil ASA, Norway’s biggest oil company, is ready to increase investment again as it reaps the benefit of drastic cost reductions it pushed through after oil’s collapse — cuts that it vowed to deepen even further.

After slashing investments by half in two years to $10 billion in 2016, the company plans to spend $11 billion in 2017 and $12 billion to $14 billion in each of the three following years, Chief Financial Officer Hans Jakob Hegge said in an interview at the company’s capital markets day in London. The increase will come even as Statoil lowered its long-term oil-price assumptions and warned that market volatility will continue in the short term.

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