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Statoil to Boost Exploration Portfolio by Exiting from Alaska

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Statoil ASASTO has decided to abandon operations in Alaska following recent exploration results in neighboring leases. This is a result of adjustment in the company's exploration portfolio to optimize returns.

Statoil does not consider the leases in the Chukchi Sea to be competitive within its global portfolio any more. Therefore, the company has decided to exit the leases and close its office in Anchorage, AK.

Since 2008, Statoil has worked very hard to progress its options in Alaska. However, given the present outlook, the company no longer finds it feasible to continue its activities in the area.

This means that the company will exit 16 Statoil-operated leases as well as its stake in 50 leases operated by ConocoPhillips COP . All these leases, which were awarded in the 2008 lease sale in Alaska, lie in the Chukchi Sea and are set to expire in 2020.

The various studies, research and activities in Alaska have enriched the company with substantial skills and expertise. The company believes that it will be able to utilize these skills in other opportunities in northern environments going forward.

Statoil's endeavor to improve recovery of resources in mature fields is 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.

Of late, Statoil has delivered strong exploration results and added significantly to its resource base by making several high impact discoveries. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania as well as Australia, thereby paving the way for long-term growth.

Statoil is continuously working towards optimizing its portfolio, strengthening financial performance, and positioning itself for long-term value creation.

Statoil currently carries a Zacks Rank #3 (Hold).

Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE and Seadrill Partners L.P SDLP . Both of these stocks sports a Zacks Rank #1 (Strong Buy).

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CONOCOPHILLIPS (COP): Free Stock Analysis Report

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

ENERGY TRAN EQT (ETE): Free Stock Analysis Report

SEADRILL PTNRS (SDLP): 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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