Norwegian oil giant
) share price rose 1.2% on the announcement that it has finalized
a concept for Johan Sverdrup's first development phase along with
its partners. The development would include a field centre
consisting of four installations and power from shore.
The partners' decision to source power from the shore is aimed at
reducing total CO2 emissions from the Utsira High area by 60-70%.
The field will receive an estimated projected 80 MW of power
through a transformer on Karsto that will deliver direct current
to the riser platform.
The field development will occur in multiple phases. The first
phase is designed to yield 315,000 barrels of oil equivalents per
day (Boe/d) with expected production between 315,000 Boe/d and
380,000 Boe/d in the early phase. Pre-drilling of wells will
facilitate rapid acceleration in production. The water depth in
the area is around 120 meters.
The partners' are constantly working on reducing the investment
level for the first phase. The field centre in the initial phase
has been designed so as to aid future development and includes a
process platform, drilling platform, riser platform as well as
The export solution for oil and gas from Johan Sverdrup is based
on transport to shore through dedicated pipelines. The oil will
be carried to the Mongstad terminal in Hordaland county. The gas
will be transferred through Statpipe to Karsto in Rogaland county
for processing and transport.
Located in the North Sea, 140 kilometers west from Stavanger, the
Utsira High, is expected to receive approval for its plan for
development and operation in 2015. The field is scheduled to come
online by the end of 2019, and is anticipated to continue
producing beyond 2050.
Statoil carries a Zacks Rank #3 (Hold). However, there are
better-ranked stocks in the oil and gas sector such as
Helmerich & Payne, Inc.
Matrix Service Company
Cabot Oil & Gas Corporation
). All these hold a Zacks Rank #1 (Strong Buy).
CABOT OIL & GAS (COG): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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