Norwegian oil and gas firm,
) has entered into an agreement to farm out 5% of its participating
) operated block 15/06 offshore Angola to Sonangol, Angola's
national oil and gas company.
The transaction effective Jan 1, 2013, is valued at $200 million
and likely to close within six months. The announcement follows
) divested a 15% stake in the same block.
The aforementioned deal is part of Statoil's strategy to capitalize
on its core assets through continued optimization by maximizing
value and focusing on financial as well as organizational
capabilities. The company aims to spend more capital and increase
financial flexibility, going forward.
Located 350 kilometers northwest of Luanda, block 15/06 spans
nearly 3,000 square kilometer with a water depth of 220 meters to
1,700 meters. In 2013, Angolan assets produced about 200,000
barrels of oil per day. The Angolan continental shelf is the
largest contributor to Statoil's oil production outside Norway and
forms a major part in Statoil's international production.
Statoil also holds interests in several other Angolan licenses
including exploration blocks in the Kwanza basin. Earlier in 2014,
Statoil had stated its intention to emphasize on value over
volumes. In consistence with this, the company reduced its planned
capital expenditure by 8% a year through 2016. This has pushed its
former output target of 2.5 million barrels a day by three to four
years to 2020.
In recent times, Statoil has delivered strong exploration results,
adding significantly to its resource base by making several high
impact discoveries. The latest finds have given the company access
to new regions of Norway, Russia, Azerbaijan, Tanzania and
Australia. These have strengthened the company's position and made
way for long-term growth.
At present, Statoil carries a Zacks Rank #3 (Hold). Another oil and
gas stock worth mentioning is
), which 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
ENI SPA-ADR (E): Free Stock Analysis Report
ENCANA CORP (ECA): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis
TOTAL FINA SA (TOT): Free Stock Analysis Report
To read this article on Zacks.com click here.