Norway's StatoilHydro has confirmed that it is on course to increase production rates to 2.2 million barrels of oil per day, thanks to a number of recent discoveries.

The state-owned oil and gas exploration and production firm expects its daily production rates to average some 1.9 million barrels per day in 2008, with two new oil and gas discoveries in the North Sea and the Norwegian Sea to help it to achieve its expansion plans.

"We are delivering on our 2008 objectives," Statoil chief cxecutive Helge Lund told a news conference on Monday.

"We will grow our production from 1.9 million (boed) in equity production to 2.2 million (boed) in 2012, making us one of the few oil and gas companies of our size that is growing at such as pace."

The comments come on the back of news of the company's find at the Dagny prospect, close to the Sleipner field in the North Sea.

Initial tests at the site point to an estimated 100 to 125 million barrels of oil, representing "one of the biggest discoveries in years in the North Sea".

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