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Statoil Contracts Rosenberg WorleyParsons for Construction

Statoil ASASTO on behalf of the Johan Sverdrup licensees has awarded the contract for the construction of three bridges and two flare towers to Rosenberg WorleyParsons AS.

The contract is worth nearly NOK 600 million. The three bridges and two flare towers will be constructed and assembled primarily in Stavanger. Other Norwegian and international sub-suppliers will also assist Rosenberg WorleyParsons in the work.

Delivery of a bridge between the riser platform and the drilling platform and one flare tower (riser platform) is expected by 2018. The remaining two bridges and one flare tower (processing platform) are scheduled for delivery in 2019.

Together the three bridges are estimated to weigh 4,700 tons and be 260 meters long. These bridges will link the four platforms that make up the phase 1 of the Johan Sverdrup field development. The two flare towers will be placed on the processing and riser platforms.

To date, the project has inked contracts worth about NOK 60 billion, of which Norwegian share exceeds 70%.

Statoil, the operator of Johan Sverdrup, holds 40.03%. The other licensees are Lundin Norway, Petoro, Detnorskeoljeselskapand Maersk Oil holding 22.6%, 17.36%, 11.57% and 8.44%, respectively.

Statoil's endeavors to improve recovery of resources in mature fields are commendable. The company 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 over the next few years on the back of its large resource base at NCS.

Currently, Statoil carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the oil and gas sector include CVR Refining, LP CVRR , Murphy USA Inc. MUSA and Braskem S.A. BAK . All these stocks sport a Zacks Rank #1 (Strong Buy).

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MURPHY USA INC (MUSA): Free Stock Analysis Report

STATOIL ASA-ADR (STO): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

CVR REFINING LP (CVRR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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