Norwegian major Statoil ASA STO has contracted Coor Service Management for offshore facility services on the Statfjord and Snorre fields. The contract is valued at about NOK 1.1 billion over a five-year period.
The contract is scheduled to commence on Jul 1, 2015 and will extend over a period of five years. The contract also contains provision for a three-year extension.
Statoil looks forward to its association with Coor Service Management for the administration and further development of the facility management services on the five Statfjord and Snorre platforms
Statoil’s endeavors to improve the recovery of resources in mature fields are commendable. The company operates in all major hydrocarbon-producing regions of the world, with an emphasis on the Norwegian Continental Shelf (NCS). We believe that Statoil is well-positioned to sustain its steady production growth over the next few years on the back of its large resource base at NCS.
Recently, Statoil delivered strong exploration results by making several high impact discoveries, which have added significantly to its resource base. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania as well as Australia, paving the way for long-term growth.
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 during 2014–2016 that would result in a compound annual growth rate (CAGR) of 2–3% for the period between 2012 and 2016. The second stream of projects is expected within the 2016−2020 period that would likely lead to a CAGR of 3–4%. The state-controlled explorer intends to invest about $20 billion per year from 2014 to 2016, down 8% from earlier estimates. The lower investment plans reflect increased capital efficiency.
Statoil currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks from the oil and gas sector include Valero Energy Partners L.P. VLP, Western Gas Equity Partners, L.P WGP and Hallador Energy Company HNRG. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
STATOIL ASA-ADR (STO): Free Stock Analysis Report
WESTERN GAS EP (WGP): Free Stock Analysis Report
HALLADOR ENERGY (HNRG): Free Stock Analysis Report
VALERO EGY PTNR (VLP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research