STAVANGER, Norway, May 29 (UPI) -- An oil discovery near the Grane field in the North Sea could hold as much as 33 million barrels of recoverable oil, Norwegian company Statoil said.

Statoil, along with field partners that include regional subsidiaries of ConocoPhillips and Exxon Mobil, announced that it encountered a 65-foot column of oil while drilling just north of the Grane field. Statoil said the discovery holds 18 million-33 million barrels of recoverable oil.


"We are pleased with having proven new very high value resources in the Grane area," Statoil Vice President for Regional Exploration Tore Loseth said in a statement. "The oil discovery is located directly north of the Grane field and can be developed effectively."

Norway is the largest oil producer in Europe and the second-largest exporter of natural gas after Russia.

The Norwegian government last month said it was recommending the opening of southern waters in the Barents Sea to energy explorers for the first time since 1994.

The region may hold more than 1 billion cubic feet of oil equivalent.