) has awarded contracts valued at around NOK 4 billion ($721
million) for the construction of a new 482 kilometer Polarled
pipeline. The pipeline will export gas from the Aasta Hansteen
field in the Norwegian Sea to the Nyhamna onshore processing
plant in northern Norway.
The contracts resulted from a broad international competition
among the pre-qualified suppliers. These were awarded by Statoil
on behalf of its Polarled partners. Japan's Marubeni Itochu and
JFE secured fabrication contracts for line pipe, Malaysia's Wasco
got the coating contract, while the Netherlands' Allsea will
perform pipe-laying operations.
According to Statoil, it is the biggest pipeline running for
around 482 kilometers to be laid at a water depth of 1,265
meters. The pipeline will require 325,000 metric tons of steel.
The order for steel is worth about NOK 2 billion and includes
pipes, bends and buckle arrestors.
The coating contract is pegged at about NOK 1.2 Billion, while
the pipe-laying contract has been estimated at NOK 750 million.
The contracts are subject to regulatory approval, expected in the
second half of the year.
The preliminary engineering work has started and installation
of the pipeline is expected by 2015. Aasta Hansteen is located
around 300 kilometers off northern Norway and is projected to
hold about 47 billion cubic meters of gas.
Statoil has a stake of about 75% in the field, while OMV and
) have an interest of 15% and 10%, respectively.
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 -
Cabot Oil & Gas Corp
Memorial Production Partners L.P.
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
CABOT OIL & GAS (COG): Free Stock Analysis
CONOCOPHILLIPS (COP): Free Stock Analysis
MEMORIAL PRODUC (MEMP): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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