) and its partners have agreed to invest around NOK 2.1 billion
($344.6 million) relating to the construction of Edvard Grieg
Pipeline - a new oil export pipeline in the Utsira High area, off
The planned 43 kilometer, 28-inch pipeline will facilitate the
development of the Edvard Grieg and Ivar Aasen fields, as well as
other future projects in the area. The new artery will link the
Edvard Grieg field - operated by Lundin Petroleum - to the
existing Grane oil pipeline for onward export to the Sture
The plan for the installation and operation of the
Statoil-operated pipeline has been submitted to Norway's
Petroleum & Energy Ministry. The approval is expected by this
autumn. The construction of Edvard Grieg Pipeline was recommended
by pipe infrastructure agency Gassco.
The pipe is scheduled to be installed in the summer of 2014
with tie-in work targeted in 2015, in line with the planned
production start in the third quarter of 2015 from Grieg. Grieg
is being jointly developed with Det Norske Oljeselskap's nearby
Ivar Aasen field due to be commissioned in 2016.
The partners have awarded JP Kenny the contract for detail
engineering on the pipeline while Allseas will be in charge for
installation. The pipe will have a design life of 30 years.
Located between the producing Sleipner and Grane fields in an
area with well-established infrastructure - Utsira High - also
hosts the massive Johan Sverdrup discovery that is being
Statoil, the operator in the pipeline joint venture, has a
stake of 20%. The other partners Lundin Norway, Wintershall Norge
AS, Det norske oljeselskap ASA, OMV Norge AS and Bayerngas Norge
AS have a share of 30%, 18%, 14%, 12% and 6%, respectively.
Statoil carries a Zacks Rank #4 (Sell). However, there are
other Zacks Ranked #1 (Strong Buy) stocks -
PetroQuest Energy Inc.
Ocean Rig UDW Inc.
Hornbech Offshore Services, Inc.
) - that are expected to perform impressively over the short
HORNBECK OFFSHR (HOS): Free Stock Analysis
OCEAN RIG UDW (ORIG): Free Stock Analysis
PETROQUEST ENGY (PQ): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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