Norwegian oil and natural gas giant
) anticipates that its high impact discovery in Peregrino, offshore
Brazil, is likely to reach its peak output at around 100,000
barrels per day. This is expected to occur around mid-August as two
new wells are scheduled to come online in the coming weeks.
PETROBRAS-ADR C (PBR): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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The Oslo-based firm has faced some obstacles at Peregrino - the
largest offshore project outside Norway - with the completion of
three wells postponed due to equipment troubles at the site.
Currently, Peregrino's daily yield averages around 75,000 barrels
of heavy crude.
Statoil targets to boost worldwide company output to 2.5 million
barrels per day by 2020 from its current output level of a little
less than 2 million barrels a day. Per the company's strategy, most
of the growth is expected from international operations. Included
in its growth plan is the yield derived from Peregrino and a string
of recent offshore oil discoveries made by Statoil and its
Statoil has holdings in seven offshore exploration blocks in
Brazil. It encompasses stakes in the most coveted pre-salt region.
Statoil, the operator of the Peregrino field with a 60% stake, is
in the middle of a five-year investment plan of $5-$10 billion in
Statoil's exploration track record over the last three years
comprises eight oil discoveries in 12 wells. It intends to spud
another 5-7 new wells over the next 2 years. The company plans to
commence drilling on two wells - appraisal wells in the Espirito
Santo Basin's BM-ES-32 block and at the Peregrino South prospect in
the Campos Basin's BM-C-47 block - within the next few weeks.
Additionally, Statoil - together with Repsol Sinopec and
) or Petrobras - is likely to provide the assessment plan for the
high potential block BM-C-33 in the Campos Basin to the local
authorities in August. Initial estimates for the block, as revealed
by the companies, were for recoverable reserves of 1.24 billion
barrels of oil equivalent.
With a handful of high potential discoveries in its portfolio and
further attempts to expand its operation worldwide, Statoil is well
positioned to achieve its 2020 production target.
Statoil holds a Zacks #3 Rank, equivalent to a Hold rating for a
period of one to three months. Longer term, we maintain our Neutral
recommendation on the stock.