Corporate News Blog - Statoil’s Gas Production from Troll Field Projected to Exceed Expectations
ACCESSWIRE
LONDON, UK / ACCESSWIRE / July 18, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Statoil ASA (NYSE: STO), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=STO. The Company announced on July 14, 2017, that the gas production from its Troll field is projected to exceed expectations. The record gas production is attributed to the permit received from the Norwegian government to increase gas output from its Troll field by 3 billion cubic meters (bcm) for the gas year 2017. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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In late June 2017, the Norwegian Government had given Statoil the permit to raise gas output from 33 bcm to 36 bcm for the current gas year. The gas year started from October 01, 2016.
Gas Production from Troll field geared to meet increased demand from Europe and UK
The increase in production comes at a very opportune time for Statoil. The demand for gas from Europe, especially UK has increased. The supply of gas has been greatly affected by the decline in supply from North Sea and the Netherlands. The matter gets more complicated as UK's Centrica PLC plans to close its Rough gas storage facility permanently. As the winter approaches, UK will need to import more gas to meets its increased domestic demand. UK has been focused on phasing out coal and other fossil fuel based energy production to lower its carbon footprint. This has further increased the demand for gas for power generation. The demand for gas has also increased from other European countries including Germany, the Netherlands, France, Spain, and Italy.
The higher production from Statoil's Troll field would be easily able to meet this increased demand. Although, the increase in production was not planned in response to Europe and UK's demand, but it was done after careful evaluation by the Norwegian Government. Production from Troll field would be more than enough to meet around 40% of UK's annual demand for gas. The permit to increase production has already resulted in a boost in gas production by more than 10% in the current year. Statoil expects that this gas production output would be further increased by another 9% in the next gas year.
As per the data from gas system operator Gassco AS and shared by news agency Bloomberg, Norwegian exports to the UK in H1 2017 were approximately 8%. This figure is much higher than the Norwegian exports to UK in the same period in FY16.
Gas production from Troll field has still enough room to further boost production. The site has been updated with new equipment in 2015 and can easily accommodate increased volumes as and when required. Also, there are no major restrictions on increasing output.
About Troll field
The Troll field is located in the northern part of the North Sea, around 65 kilometers west of Kollsnes, near Bergen. The Troll field is the largest gas find in North Seaand has 40% of Norway's gas reserves. It is one of the largest oil fields on the Norwegian continental shelf and produces more than 400,000 barrels a day. The enormous gas reservoirs lying 1,400 meters below sea level are expected to produce for at least another 70 years. The field is developed into three main platforms Troll A, B, and C. All the three platforms are operated by Statoil. Troll A mainly produces gas whereas Troll B and C produce oil.
Troll A produced enough gas to meet energy requirements of more than 10 million households in Europe. Troll A started production in 1996.
About Statoil
Stavanger, Norway based Statoil is an international energy Company. It started operations in 1972 and has been a key player and operator in the oil and gas business in the Norwegian continental shelf. At present, the Company has grown to become the number one offshore operator in the world and the second largest supplier of natural gas to the European market. It is also consciously moving towards becoming a carbon-efficient oil and gas producer as well as focus on other forms of energy, such as offshore wind and carbon capture and storage. It has operations spread across more than 30 countries including Europe, Africa, North America, and Brazil. It is supported by a global team of approximately 20,500 employees.
Last Close Stock Review
On Monday, July 17, 2017, Statoil ASA's stock closed the trading session at $17.18, slightly rising 0.06% from its previous closing price of $17.17. A total volume of 1.44 million shares was exchanged during the session. Shares of the Company have a dividend yield of 5.12% and currently have a market cap of $55.48 billion.
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