Statoil (STO) Halts Troll C Production on Detecting Pipe Damage - Analyst Blog

Norwegian oil giant Statoil ASA ( STO ) has halted operations on its Troll C platform in the North Sea.

The stoppage of production on the platform on Aug 17 followed after a scheduled inspection program discovered corrosion damage on a tank in the glycol system, an auxiliary system for treating gas linked to the oil export system.

The damaged pipe will likely be replaced and this requires shutdown for a week.

Troll C, which has an equity production of about 58,000 barrels of oil per day, also exports 8 million cubic meters of gas. Moreover, about 34,000 barrels of oil and 2 million cubic meters of gas are carried from the Fram field through the Troll C platform.

Troll field, which has three platforms, is one of Norway's key oil and gas fields. In 2011, it produced 568,450 barrels of oil equivalent a day, or about 15% of Norway's total production of 3.8 million barrels a day.

Statoil holds 30.58% interest in Troll C and 45% in Fram. The other partners in Troll are Petoro, Norske Shell, Total SA ( TOT ) and ConocoPhillips ( COP ), which have 56%, 8.1%. 3.69% and 1.62% stake, respectively. Other partners in Fram are Idemitsu Petroleum Norge, GDF Suez E&P Norge, and ExxonMobil Corp. ( XOM ) holding 15%, 15% and 25% interest, respectively.

Statoil has operations in all major hydrocarbon-producing regions of the world. It has an upstream focus on the Norwegian Continental Shelf. The company boasts a strong balance sheet, as it has exited low-profit generating operations and broadened its international asset base. The addition of new projects is expected to produce a CAGR growth rate of 2%-3% annually during the 2014 to 2016 period.

Currently, Statoil carries a Zacks Rank #3 (Hold).

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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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