Talisman Energy Inc.
) have put an end to the attempt to divest their joint venture (JV)
in Texas's Eagle Ford basin. The move followed when bids came in
below expectations, as per sources acquainted with the matter.
Both the parties were expecting to raise about $4 billion for the
50-50 partnership. Large exploration companies that were looking to
purchase oil-producing properties were anticipated to show interest
in these assets.
However, the offers came in lower than expected owing to the reason
that the venture produces mainly light condensate or ultralight
oil. Condensate is not preferred by some producers as its value is
lesser than that of crude oil.
According to Statoil's 2013 annual report, the company took over
operations of the eastern part of the JV last year. This region
yields 27,700 barrels of oil equivalent per day.
In recent times, Statoil has delivered strong exploration results,
adding significantly to its resource base by making several high
impact discoveries. The latest finds give the company access to new
regions of Norway, Russia, Azerbaijan, Tanzania and Australia.
These strengthen the company's position and pave the way for
Statoil aims to achieve an equity production of above 2.5 million
barrels of oil equivalent in 2020. The growth is expected to come
from new projects from 2014 to 2016 that would result in a compound
annual growth rate (CAGR) of 2% to 3% for the period 2012 to 2016.
The second stream of projects is expected within the 2016−2020
period that would likely lead to a CAGR of 3% to 4%.
Currently, Statoil carries a Zacks Rank #2 (Buy). Meanwhile, one
could consider better-ranked players in the same sector like
Magellan Midstream Partners L.P
), both of which sport a Zacks Rank #1 (Strong Buy).
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