) has awarded a contract worth NOK 6.1 billion to Daewoo
Shipbuilding & Marine Engineering ("DSME") relating to the
construction of the topsides for the Dagny platform. The
construction will be carried out with Aker Solutions as a major
The scope of the contract comprises detailed design, procurement,
engineering services, construction, hook-up as well as
commissioning. Per the contract, DSME will design and build the
topsides for the platform, while Aker Solutions (with operations
in Stavanger and Oslo, Norway, and Kuala Lumpur, Malaysia) will
support the comprehensive engineering services, offshore hook-up
and commissioning work.
The construction work will begin instantly and is expected to
conclude by the first quarter of 2017. The other partners in the
) and Det Norske.
The contract, which has been awarded under widespread
international competition among pre-qualified suppliers, is
subject to approval by the Norwegian authorities. The approval is
anticipated in the first half of 2013.
The Dagny field comprises 4 licenses and is estimated to hold
recoverable reserves of about 225 million barrels of oil
equivalent and an estimated productive life of 20 years. During
the plateau phase, the yield is projected at 60,000 barrels per
day of oil and 9 million cubic meters per day (MMcm/d) of gas. In
order to enhance output, dry gas injection will be employed at a
rate of 8 MMcm/d.
Towards the end of 2012, Statoil had proposed to invest NOK 31
billion ($5.6 billion) for the development of the Dagny field,
according to the Plan for Development and Operation submitted to
the Norwegian authorities.
The Netherlands' Allsea will perform pipe-laying operations. On
the basis of design studies carried out by various Norwegian and
international suppliers, the contracts for a floating storage and
offloading unit, marine operations and tie-ins will be given by
the spring of this year.
Statoil holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
oil and gas sector -
NGL Energy Partners LP
Lehigh Gas Partners LP
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
LEHIGH GAS PTNR (LGP): Free Stock Analysis
NGL ENERGY PART (NGL): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
TOTAL FINA SA (TOT): Free Stock Analysis
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