Environmental Challenge Halts Statoil Arctic Oil Well

Norwegian oil company Statoil has had to stop drilling at the Arctic Pingvin prospect because of an appeal against its environmental permit, North Energy, a partner in the project, said on Friday.

"The top hole on Pingvin has been drilled," North Energy said in a statement. "The timing of a resumption of drilling on the Pingvin prospect will depend on how long it takes to settle the appeal and the decision reached."

Environmental groups have challenged Statoil's plans to drill in the far north, its most ambitious Arctic exploration programme to date. The company was forced to halt work briefly at another well in May pending a review.

A challenge, brought by Greenpeace, was rejected by authorities within a few days and Statoil completed the well on the Apollo prospect in the Barents Sea without any incident.

Partners in the Pingvin licence include Statoil (40 percent), RN Nordic Oil (20 percent), Edison (20 percent) and North (20 percent).

Statoil could not immediately be reached for comment.

(Reporting by Balazs Koranyi. Editing by Jane Merriman)