) share price rose 0.9% before dropping 0.4% and 0.1% in the next
two trading sessions following the announcement of farm-down of
part of its stake in the
) operated Shah Deniz project off Azerbaijan.
Notably, Statoil raised $1.45 billion from the sale and transfer of
Statoil offloaded 10% stake in the Shah Deniz production sharing
agreement and South Caucasus Pipeline Company to BP and SOCAR.
Staoil's interests in the Caspian Sea project is now 15%, after BP
and SOCAR obtained 3.33% and 6.67% interests, respectively.
Statoil's disposal of assets is part of its strategy to restructure
the asset portfolio based on rigid project prioritization. It aims
to focus on value creation over production volumes since higher
costs has weighed on its profit margins.
Apart from its 15.5% interests in the Shah Deniz project and South
Caucasus Pipeline, Statoil's Azerbaijan portfolio comprises 8.56%
interests in Azeri-Chirag-Guneshli and 8.71% interests in
Baku-Tbilisi-Ceyhan Pipeline. Statoil also has a 20% stake in Trans
Adriatic Pipeline AG that will transfer the gas from the second
phase of Shah Deniz to European markets.
Apart from BP, SOCAR and Statoil that have 28.8%, 16.7% and 15.5%
interests, respectively, other licensees in Shah Deniz include
) and TPAO holding 10%, 10%, 10% and 9% interests, respectively.
Statoil's endeavors to improve recovery of resources from mature
fields is noteworthy. The company has operations in all major
hydrocarbon-producing regions of the world, with an emphasis on the
Norwegian Continental Shelf (NCS). We believe that Statoil is well
positioned to sustain the steady production growth for the next few
years on the back of its large resource base at NCS.
Currently, Statoil carries a Zacks Rank #3 (Hold). Another oil and
gas stock worth mentioning is
), which sports a Zacks Rank #1 (Strong Buy).
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