Oslo - Norwegian state-controlled energy group Statoil Hydro plans further cost cuts by 1.5 billion kroner (211 million dollars) due to "macroeconomic changes," the group said Wednesday.

Statoil Hydro said it expected to produce more oil and gas in 2009, estimating production at 1.95 million barrels of oil equivalent (boe) per day compared to some 1.9 million boe per day in 2008.

The estimates and outlook were to be presented at a meeting with analysts in London later Wednesday.

The October 2007 merger of Statoil and Norsk Hydro's gas and oil business had in 2008 achieved half of the anticipated synergy gains of 12 billion kroner, the group said.

The group planned to drill some 65-70 exploration wells this year of which about half were on the Norwegian continental shelf. In 2008, the group reported 79 exploration and appraisal wells.

It expected slightly lower exploration costs of 2.7 billion dollars this year, compared to 3.1 billion dollars for 2008.

Chief executive Helge Lund said in a statement that the group was "adjusting the speed, but not changing course," and was confident in its business strategy.

By 2012, the group planned to reach daily production of 2.2 million boe per day.

Commenting on the impact of the recent drop in oil prices and global economic downturn while other costs were increasing, Lund said Statoil Hydro would "make stricter priorities, cut costs, optimise plans and hold over projects which are not time critical.

"We are prepared for strong fluctuations in the oil price at a relatively low level in the short and medium term and we are ready to meet a situation where it for periods could be considerably lower than it is today," Lund said. (dpa)