Statoil confirms commitment to N.L. oil industry after Alberta oilsands sale

Statoil says its Alberta sell-off doesn't signal that it plansto sell assets in Newfoundland and Labrador's offshore oil industry too.

The Norwegian oil giant has announced a deal worth hundreds of millions of dollars to sell itsnorthern Alberta oilsands operations to Calgary-based Athabasca Oil Corp.

• Statoil sells oilsands assets to Athabasca Oil in deal worth up to $832 million

"This is partof our global portfolioadjustment. We continuallyoptimizeour portfolio and focus our capital on our core activities," saidStatoil'sCanadian president Paul Fulton.

"Newfoundland and Labrador is an important part of our global portfolio. We continue to work with our assets in the province," said Fulton, adding a word of caution.

"This doesn't represent any view on the province. We continue to develop our assets in Newfoundland but this will not trigger additional spending in the province that depends on how well we are able to develop the assets there."

'Significant investment' in Flemish Pass

In St. John's, the Newfoundland & Labrador Oil & Gas Industries Association (NOIA) said it'sconfident the Alberta sale isn't bad news for the offshore oil industry.

Statoil very committed to our offshore.- Bob Cadigan

"Statoilhas pointed toNewfoundlandand Labrador asone of its key strategic areas to invest and to explore and we understand that that commitment is still solid," said NOIA president Bob Cadigan.

"They've made adjustments in their Canadian operations butStatoil hasa significant investment in the Flemish Pass and I think they share, along with the otherinvestors on the parcels, close to a billion dollars in exploration commitments. So, certainly they are very committed to our offshore."

Cadigansaidthat as oil projects go theoilsandsare much greater carbon producers than offshore projects.

He saidthat may be playing intoStatoil'sdecision to continue focusing on projects here and shift away from Alberta.

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"So we've got what are perceived to be very high quality resourcethat really doesfit even in a world moving away from carbon resources over time," said Cadigan.