) has teamed up with ABB to develop solutions for subsea
electrical power transmission and distribution for
electrification of fields off Norway and in other parts of the
world. The project is likely to involve investments of around
$100 million over a five-year period.
The jointly funded program, led by Statoil and participation by
other oil companies, will have ABB as its technology partner. It
will be in the form of a cost-shared joint industrial programme
The project will entail development of technologies to supply
electrical power for subsea pumps and gas compressors as well as
provide power conversion systems for water depth of about 3,000
meters and over long distances.
The JIP is the outcome of an extensive subsea electrification
study performed by Statoil and ABB. The main objective behind the
development effort is to provide a cost-efficient and reliable
solution using a single cable to control subsea equipment over
long distances, rather than multiple cables for each component.
The Norwegian state-owned company also aims to provide new field
developments off Norway with electricity supplies from land
rather than using more pollutive gas-fired turbines on platforms.
The solutions are expected to boost utilization of the oil and
gas resources through higher recovery rates, reduced production
costs as well as facilitate deepwater production.
Statoil's management believes that this project is likely to
decrease capital expenditures by over $500 million on a power
distribution system supplying to eight subsea installations 200
kilometers from the shore.
The technology is believed to be the key element for supplying
power to Statoil's so-called "subsea factory", with the target of
putting the entire processing system on the seafloor by 2020.
The solution will be mostly applicable in remote fields like
the Arctic, where electrical transmission needs to be executed
over long distances to develop remote fields, and deepwater
regions such as the Gulf of Mexico.
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Statoil carries a Zacks Rank #4 (Sell). However, other Zacks
Ranked #1 (Strong Buy) stocks -
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China Petroleum & Chemical Corp
) - appear more attractive for the short term.