Norwegian oil and gas company
) and its partners have resolved to proceed with the Smørbukk
South Extension project. The project is estimated to cost around
NOK 3.5 billion.
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Discovered in 1985 - the Smørbukk South Extension - is estimated
to hold recoverable reserves of 16.5 million barrels of oil
equivalent. Statoil has been successful in turning the discovery
into a profitable project after years of experience from Aasgard
and the availability of existing facilities.
The project is planned to be developed by means of a subsea
tieback to the existing infrastructure in the area - Aasgard A
floating production, storage and offloading vessel. The project
is estimated to have a lifetime of 12 years.
Smorbukk will produce from a single multilateral well having two
producing branches. It also comprises the installation of a new
subsea template with available slots for future wells. The new
well technology is believed to enhance recovery from the Smorbukk
South reservoir. The company has made pre-investments to reduce
the time from project sanction to production start-up.
The company proposes to award numerous contracts for the
development, with Nexans already contracted for umbilicals in
2012. Drilling activities are likely to commence in the beginning
of 2015, while production start-up is scheduled for Sep 2015. The
project is expected to extend the lifetime on Asgard A and aid in
the development of other projects and opportunities in the area.
Smørbukk South Extension forms part of the Åsgard unit. Statoil,
the operator of Asgard, has a stake of 34.6%. The other partners
in the license are Petoro AS,
) holding 35.7%, 14.8%, 7.7% and 7.2%, respectively.
Statoil holds a Zacks Rank #2 (short-term Buy rating).