) has been ordered to improve the working condition at its
Heimdal platform. The directive came from the country's safety
watchdog - Norwegian Petroleum Safety Authority (PSA).
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The basis of this order can be traced back to the May 2012
accident that released around 3,500 kilograms of gas. It was a
serious gas emission that produced a potentially combustible
cloud around the facility.
After an investigation of the Heimdal platform by the PSA,
several regulatory breaches by Statoil were revealed that led to
The leak took place during the examination of two emergency
shutdown valves on the Heimdal drilling, production and
accommodation platform. The PSA considers it one of the most
serious gas emissions off Norway, in recent years.
The Norwegian company has already worked on its shortcomings.
Yet, the safety agency has condemned it for failing to correctly
execute the improvement measures taken up since the leak.
The Heimdal order, with a March 1 deadline, entails Statoil to
establish the reasons for the ineffective corrective measures. It
also mandates the effectiveness of future measures and requires
Statoil to ensure that other facilities are not disturbed by
Statoil is a major international integrated oil and gas company.
Though the company has operations in all major
hydrocarbon-producing regions of the world, it has an upstream
focus on the Norwegian Continental Shelf. Due to its strong
offshore exposure, Statoil is a leader in subsea production.
Statoil holds a Zacks Rank #3, which is equivalent to a Hold
rating for a period of one to three months. However, other stocks
in the oil and gas sector, like
Breitburn Energy Partners LP
Penn Virginia Corporation
Memorial Production Partners LP
), hold a Zacks Rank #1 (Strong Buy) and are expected to perform