Oil major
BP Plc
(
BP
) has finally commenced oil production from its new facilities at
the Valhall field in the southern part of the Norwegian North
Sea.
The redevelopment project at Valhall is expected to extend the
life of the veteran field by another 40 years and build a
capacity to operate 120,000 barrels of oil and 143 million cubic
feet of gas per day.
The British operator now intends to boost the capacity at the
field to about 65,000 barrels of oil equivalent per day in the
second half of 2013, after adding new facilities to enhance its
handling capacity.
The expansion comprises a new production, utilities and
accommodation platform installed on a fixed steel jacket, an
external system of bridges and walkways connecting the new
platform to the existing Valhall complex, as well as an
integrated operating environment linking onshore and offshore
personnel.
Along with the new platform, the Valhall field complex now
comprises six separate manned platforms as well as two unmanned
flank facilities - each about six kilometers from the main
facilities.
The upgrade of the field is the first of its kind offshore Norway
and in BP's portfolio to be powered completely from shore. A
294-kilometer cable from Lista is used for the electrification of
the field, which will result in almost zero emissions from the
field.
The Valhall field was discovered in 1975 and was brought online
in 1982, while the redevelopment is likely to extend yield from
the field to 2050. The work at Valhall has proved to be an
expensive affair, as numerous delays increased costs by 86% last
year.
BP, the operator of Valhall, has a 35.9% interest, while
Hess Corporation
(
HES
) holds the remaining 64.1%.
BP holds a Zacks Rank #3, which is equivalent to a Hold rating
for a period of one to three months. However, there are other
stocks in the oil and gas sector -
Enbridge Energy Management LLC
(
EEQ
) and
Sunoco Logistics Partners LP
(
SXL
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
perform better.
BP PLC (BP): Free Stock Analysis Report
ENBRIDGE ENERGY (EEQ): Free Stock Analysis
Report
HESS CORP (HES): Free Stock Analysis Report
SUNOCO LOGISTIC (SXL): Free Stock Analysis
Report
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