Norwegian energy firm,
) has temporarily stopped oil production at its Snorre B platform
in the North Sea and vacated one fourth of its employees personnel
from the facility. The move followed the detection of a soil shift
under a drilling template, followed by an oil leak.
As per the Norwegian Petroleum Directorate (NPD), Snorre field in
the northern part of the North Sea is Norway's fourth-biggest oil
producer. In 2013, output from the field averaged 88,000 barrels of
oil per day.
The field has two production platforms - Snorre B and Snorre A.
Statoil declined to provide breakdown between these. Notably,
Snorre A is operating normally.
The first shutdown at Snorre B occurred on Saturday after a subsea
robot noticed a pit under the drilling template, which helps to
link the underwater site to the semi-submersible platform at the
Another shutdown took place on Monday when an oil leak was
discovered. The platform manager ordered the removal of some staff
from the platform as a precautionary measure.
Of the total 136 employees at Snorre B, about 33 were moved to an
adjacent floating accommodation facility.
Statoil holds 33.3% stake in the production license. The other
partners include state-owned Petoro,
), Idemitsu Petroleum, RWE and Core Energy, which have 30%, 17.4%,
9.6%, 8.6% and 1.1% stake, respectively.
Statoil has operations in all major hydrocarbon-producing regions
of the world, with an emphasis on the Norwegian Continental Shelf
(NCS). We believe that the company is well positioned to sustain
the steady production growth for the next few years on the back of
its large resource base at NCS.
At present, Statoil carries a Zacks Rank #3 (Hold). Some
better-ranked oil and gas stocks worth considering include
CVR Refining, LP
). All of these stocks sport a Zacks Rank #1 (Strong Buy).
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