Norwegian integrated oil and gas player,
) has struck a new source of oil in the country. The prospect is
located about 7 km north of Grane field and 150 km west of
Stavanger, Norway. Being in the vicinity of existing
installations, the source has chances of being developed without
Statoil and its partners are extensively drilling exploration
well 25/11-27 in the prospect. The well is estimated to contain
18-33 million barrels of recoverable oil.
Located in the Grane Unit in the North Sea, the ownership of
25/11-27 is spread out among Statoil (36.7%), Norwegian state
owned Petoro AS (28.9%),
) (28.2%) and
Statoil 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 its steady production growth for the next
few years on the back of its large resource base at NCS.
We believe production growth from operations is a key
component for the company's overall annual upstream growth plans
over the next few years. Statoil has made progress on various
projects and expects to make significant additions to its
resource base in the coming years. This is evident from the
company's estimated compound annual growth rate of 3% to 4%
during 2016-2020. Hence, Statoil's progress on the new prospect
is a significant move.
Statoil is an integrated oil and gas company. One of the
world's biggest sellers of crude oil, the company is also a major
supplier of natural gas in the European market and has
substantial industrial operations. Statoil has service stations
in the Scandinavian countries, Ireland, Poland, the Baltic States
and Russia. The company is one of the world's most
environmentally-efficient producers and transporters of oil and
Statoil holds a Zacks Rank #3, which is equivalent to a Hold
rating for a period of one to three months. In the near term, we
would advise investors to focus on Zacks Rank #2 (Buy)
) among the international oil integrated players.
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