Statoil Statfjord Leak Fixed - Analyst Blog
January 02 2014 - 03:50PM
Zacks
Norwegian oil giant Statoil
ASA???s (STO) share price saw a marginal drop of 0.2% in
the trading session that followed the announcement of an oil and
gas leak on the Statfjord A platform in the North Sea. However, the
share price rose 0.8% in the next trading session to close at
$24.13 per share.
Statfjord A was depressurized and shut down after the leakage was
reported.?? After the site of the leak was found, around 168
personnel on board were evacuated. During the incident, no one was
injured. Output at the field resumed the day after the leakage was
stopped.
Located around 180 kilometers (110 miles) off Norway's coast and
overlapping British-Norwegian waters, the Statfjord field is one of
the largest in the North Sea.
Statfjord was discovered in 1974 by ExxonMobil
Corporation (XOM). Statoil got the operatorship of the
field in Jan 1987.
We appreciate Statoil???s endeavor to improve recovery of resources
in mature fields. The company has operations in all major
hydrocarbon-producing regions of the world, with an emphasis on the
Norwegian Continental Shelf. We believe that Statoil is well
positioned to sustain its production growth for the next few years
on the back of its large resource base at NCS.
Statoil aims to achieve an equity production of above 2.5 million
barrels of oil equivalent in 2020. The growth is expected to come
from new projects between 2014 and 2016 that would result in a
compound annual growth rate (CAGR) of 2% to 3% for the period 2012
to 2016. The second stream of projects is expected within the
2016???2020 period that would likely lead to a CAGR of 3% to
4%.
Statoil carries a Zacks Rank #4 (Sell). Some better-ranked stocks
in the oil and gas sector include Blueknight Energy
Partners, L.P (BKEP) and Tesco Corp.
(TESO). Both these stocks hold a Zacks Rank #1 (Strong Buy).
??
BLUEKNIGHT EGY (BKEP): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis Report
TESCO CORP (TESO): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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