Seeking Alpha

Statoil wins deepwater oil license off Myanmar with ConocoPhillips

  • Statoil (STO) says it and 50-50 partner ConocoPhillips (COP) have been awarded a deepwater exploration block in the Myanmar waters of Bay of Bengal as part of the country's 2013 offshore bid round; STO is the operator.
  • Block AD-10 covers more than 9K sq. km, and is "a large and virtually unexplored area in a basin with a proven petroleum system and thick sedimentary deposits."
  • BG Group (BRGYY, BRGXF) wins four blocks, two as operator; others winners include Shell (RDS.A, RDS.B), Chevron (CVX), Eni (E) and Total (TOT).
Comments (11)
  • Debutant
    , contributor
    Comments (2493) | Send Message
     
    A sneak preview of the next steps:

     

    a)These oil & gas companies will get organized to actually drill those deepwater basins;

     

    b) for the "a" above they'll contract deepwater drilling equipment;

     

    c) the "b" above will translate to "New contracts / additional revenues for deepwater drilling equipment suppliers", like SDRL, ESV, RIG, ATW, ORIG, SapuraKencana, PACD, etc, depending on which company will get what contract;

     

    d) I'll be enjoying my investments in the sector.

     

    Life's good.

     

    Oops, sorry, I forgot to add:

     

    e) Good Samaritan commentators with personal agendas will continue to tell the public that offshore drilling industry is slowing down and day rates will be getting lower.

     

    Because I only think about my own good I ignore those good Samaritans and stay invested in the sector (See the news above).
    26 Mar 2014, 09:36 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2437) | Send Message
     
    Wait a minute Deb the big brokerage analysts have been telling us there is armageddon in the offshore drilling industry. Clearly these blocks won't be drilled since the big analysts are telling us that all the majors are cutting out there exploration budgets. LOL, LOL, LOL
    26 Mar 2014, 09:44 AM Reply Like
  • Debutant
    , contributor
    Comments (2493) | Send Message
     
    You know how it works:

     

    The big brokerage analysts say that there's armageddon in the sector.

     

    Their small brothers, aka good Samaritans, enter the stage with negative "commentary" on internet investment boards.

     

    Then, the big brokerage analyst changes his sector view 180 degrees, from "armageddon" to "buy".

     

    His small brother disappears from the investment board.

     

    26 Mar 2014, 10:02 AM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9672) | Send Message
     
    Good comment except you left my favorite (Dril-Quip:DRQ) off your list of potential deepwater oil equipment suppliers.
    26 Mar 2014, 03:57 PM Reply Like
  • Arthur Fisher
    , contributor
    Comments (257) | Send Message
     
    It's a big world. How many such places are there likely to be? Many, I'd guess.
    26 Mar 2014, 09:58 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2437) | Send Message
     
    Arthur if you are referring to the new possible drilling locations here are just a few.

     

    Columbia 13 new blocks in 2014
    UK 28th Seaward leasehold in April for a huge chunk of UK offshore
    Cyprus
    Saudia Arabia
    Lebanon --- maybe
    Brazil multiple areas in 2015
    the GOM just awarded last week
    Norway
    Myanmar this week
    W. Australia multiple blocks
    Morrocco
    Peru to bid 6 blocks this month
    India 56 blocks
    Russia 10 blocks at least
    26 Mar 2014, 10:48 AM Reply Like
  • Debutant
    , contributor
    Comments (2493) | Send Message
     
    In other words:

     

    - the map of possible drilling locations is huge;
    - news and hard facts like this one get less attention (and less $0.01 per page view) on internet investment boards than catchy phrases like "oil majors are cutting down on capital expenditure(!)".

     

    Ignore the propaganda, follow the facts, earn money!

     

    Disclosure: Invested heavily in offshore drilling companies.
    26 Mar 2014, 11:21 AM Reply Like
  • Veritas1010
    , contributor
    Comments (1685) | Send Message
     
    COP and STO. Let's redirect to the E&P companies and recognize companies like these that are doing it right, $$$.

     

    disc.: unabashedly long COP and STO.
    26 Mar 2014, 01:42 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9672) | Send Message
     
    I second that: two excellent companies (which I own) teaming up.
    Good Action!
    26 Mar 2014, 03:58 PM Reply Like
  • deckster8
    , contributor
    Comments (35) | Send Message
     
    Chinese have been in Myanmar for years. Seems they're not so welcome lately. There's much to be done there, including massive infrastructure upgrades and finding US state dept approved partners.
    26 Mar 2014, 06:06 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1228) | Send Message
     
    If you are invested in the oil drilling / services sectors don't ever forget NOV. They supply over 60% of the pipe and drill bits etc to the drillers. Plus NOV has fantastic management and has great things coming.
    IMO NOV is a must own.
    27 Mar 2014, 11:15 AM Reply Like
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