) has given out contracts for the construction and operation of
two tailor-made jack up rigs. These rigs will be utilized for
drilling at Gullfaks and Oseberg oil fields offshore Norway and
will be owned by the license holders.
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Samsung Heavy Industries Co. Ltd. will be responsible for the
construction of the rigs. The new category J rigs will be
equipped to function in water depths of 70-140 meters in harsh
environments and drill wells up to a depth of about 10,000
meters. These rigs, which are based on proven technology, will be
optimized for drilling and completing subsea wells more
On the other hand, KCA Deutag Drilling Norway AS will carry out
drilling services and maintenance as the rigs' operator. The
operating and staffing framework is similar to that of leased
rigs in conventional drilling contracts.
The initial operations contract is valued at $900 million for a
period of eight years, which can later be extended by 4*3 years.
The operations are expected to commence in 2016-2017.
The inclusion of new Cat J rigs is part of Statoil's long-term
strategy of revitalizing its rig fleet, securing long-term rig
capacity as well as lowering drilling costs to boost NCS recovery
rates. Statoil has set an aggressive goal of an average 60%
recovery from the NCS assets that can be attained by enhancing
the number of wells drilled.
Both the fields - Gullfaks and Oseberg - are assumed to have a
long-term rig demand. Hence, these new rigs are expected to
operate at these fields for a long period and simultaneously
reduce drilling costs. This is primarily due to the ownership
model, which will strengthen the drilling targets and even add
targets that would not have been profitable otherwise.
Gullfaks was brought online in 1986 and currently produces about
39,000 barrels of oil per day. The license partners of Gullfaks
are Statoil and Petoro AS with a stake of 70% and 30%,
Oseberg has been producing since 1988 with a current yield of
about 59,000 barrels of oil per day and natural gas plus gas
liquids of 8.1 million standard cubic meters per day. The
partners in the field are Statoil, Petoro,
), which have a share of 49.3%, 33.6%, 14.7% and 2.4%,
Statoil carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1
) appears more attractive as it is expected to outperform over
the next few months.