Seeking Alpha

Statoil ASA (STO)

  • Mon, Nov. 23, 8:33 AM
    • Statoil (NYSE:STO) says it probably will drill fewer wells offshore Norway next year, expecting to drill 16 wells in the country as an operator in 2015, down from 21 last year, as it delays exploration in the Barents Sea for a second year.
    • STO has not drilled in the Barents Sea off Norway’s northern tip this year after a record campaign ended with disappointing results in 2014, but says it will return in 2017 at the earliest once it has received new acreage in upcoming licensing rounds.
    • STO will concentrate on the Krafla area in the North Sea in next year’s exploration efforts in Norway, says the company's executive VP for exploration.
    | Mon, Nov. 23, 8:33 AM | 1 Comment
  • Wed, Nov. 18, 10:48 AM
    • Statoil (STO +3.3%) says it will decide next fall on how to upgrade the Snorre oil and gas field in the North Sea, Reuters reports.
    • The Snorre 2040 extension project, which has been estimated to cost $4B, has been postponed as STO sought to lower the price of developments.
    • Snorre field reserves are estimated at 1.55B barrels of oil, and the upgrade is expected to yield an additional 300M barrels.
    | Wed, Nov. 18, 10:48 AM | Comment!
  • Tue, Nov. 17, 9:53 AM
    • Statoil (STO -0.6%) says it is exiting its Alaskan operations and closing its office in Anchorage, saying its leases in the Chukchi Sea are no longer competitive within its global portfolio.
    • The decision means STO will exit 16 operated leases and its stake in 50 leases operated by ConocoPhillips (COP -1.2%).
    • It follows Shell's September decision to pull out of controversial drilling off Alaska's Arctic cost after failing to find sufficient signs of oil and gas to make further exploration worthwhile.
    | Tue, Nov. 17, 9:53 AM | 6 Comments
  • Thu, Nov. 12, 6:34 PM
    • Statoil (NYSE:STO) is awarded two deepwater exploration licenses offshore Nova Scotia totaling C$82M by the Canada-Nova Scotia Offshore Petroleum Board.
    • STO becomes the third company interested in hunting for oil offshore Nova Scotia after Royal Dutch Shell began exploratory drilling this month and with BP planning to follow suit in 2017; the Shell and BP planned programs are much larger, with a price tag of ~$1B each.
    • The federal natural resources minister and province energy minister must still sign off on the newest licenses.
    | Thu, Nov. 12, 6:34 PM | 1 Comment
  • Wed, Nov. 4, 10:18 AM
    • An unusually high 13 rigs competing for a Det Norske drilling contract on the Alvheim oil field in the North Sea provides an illustration of how rig companies are desperate for business as producers cut spending to cope with weak crude oil prices, Blomberg reports.
    • Offshore drillers such as Transocean (NYSE:RIG), Seadrill (NYSE:SDRL) and Fred Olsen Energy (OTC:FOEAF) have been caught by falling demand for their services as well as a glut of new rigs coming into the market, while Statoil (NYSE:STO), Norway's dominant oil company, has cut the equivalent of four years of drilling by terminating and suspending rig contracts over the past 18 months.
    • Analysts say the daily rental rate for Det Norske’s rig will be lower than a recent award to Odfjell Drilling, which will get ~$300K/day to drill on STO’s Johan Sverdrup field for three years.
    | Wed, Nov. 4, 10:18 AM | 19 Comments
  • Tue, Nov. 3, 12:54 PM
    • Statoil (STO +4.3%) must make a decision to move forward with the Johan Castberg oil project in Norway’s Arctic next year after a series of delay, Norway's state-owned Petoro oil company says.
    • STO has postponed the project three times since 2013 to make it more profitable, and has managed to lower the project’s break-even price to $60/bbl from $80 and seeks to cut costs even further; a decision on the development concept is planned for H2 2016 and an investment decision for 2017.
    • The project encompasses the Skrugard and Havis finds, which hold as much as as 650M barrels of oil, but the frontier area in the Barents Sea lacks production infrastructure such as pipelines, making it expensive to develop the deposits.
    | Tue, Nov. 3, 12:54 PM | Comment!
  • Tue, Nov. 3, 9:59 AM
    • Statoil (STO +1.6%) says it will invest ~NOK2B ($236M) to build a floating wind farm off the Scottish coast, in what the Norwegian company says would be the first of its kind in the world.
    • STO, which has run a single floating offshore turbine for several years in Norway, is planning to build a pilot project consisting of five floating turbines, each with 6 MW of capacity, off the coast near Aberdeen.
    • STO does not disclose the forecast cost of energy from the project but says it expects to make floating offshore wind competitive without government support by 2030.
    | Tue, Nov. 3, 9:59 AM | 1 Comment
  • Mon, Nov. 2, 3:45 PM
    • Statoil's (STO +0.8%) cancellation of a contract for a Songa Offshore (OTC:SGAZF) rig four months early is the latest blow for North Sea-focused companies including Transocean (RIG +5.8%), Seadrill’s (SDRL +4.2%) North Atlantic Drilling (NADL +4.2%) unit and Fred Olsen Energy (OTC:FOEAF), which have floating rigs idling or completing offshore contracts in the country in the coming year.
    • By the time the market turns, as many as 20 units in Norway and the U.K. may be scrapped, Janne Kvernland of Nordea Markets tells Bloomberg.
    • Investment by oil companies in Norway is expected to fall 11% this year and another 8% next year, according to the Finance Ministry, and demand for offshore rigs in Norwegian waters likely will total 18-20 units next year, with the equivalent of 27 rigs available.
    | Mon, Nov. 2, 3:45 PM | 26 Comments
  • Thu, Oct. 29, 8:57 AM
    • Statoil (NYSE:STO) agrees to acquire a 35% stake in the Tugela South exploration license offshore South Africa from Exxon Mobil (NYSE:XOM), in the Norwegian company's first venture in the country.
    • Tugela South spans nearly 3,500 sq. miles off South Africa's east coast, with water depths at up to 5,905 ft.; the license is in an early exploration phase, with seismic data gathering occurring through 2017, followed by geology and geophysics studies, before any drilling starts.
    • Tugela South is operated by XOM, which acquired a 75% stake in the license in 2012 and will retain 40% following the deal with STO.
    | Thu, Oct. 29, 8:57 AM | 1 Comment
  • Wed, Oct. 28, 6:26 PM
    • Mozambique’s government awards six licenses to search for oil and gas, including three licenses for offshore blocks to Exxon Mobil (NYSE:XOM) in partnership with Rosneft (OTC:RNFTF), and one to a consortium led by Eni (NYSE:E) that includes Sasol (NYSE:SSL) and Statoil (NYSE:STO), Bloomberg reports.
    • The government says the proposed exploration programs have the potential for investments of up to $700M, with the opening of a minimum of 10 wells.
    • Mozambique hopes to attract investments to exploit huge gas finds in the offshore northern Rovuma basin that could help turn the country into the world’s third-biggest liquefied natural gas exporter in a decade.
    | Wed, Oct. 28, 6:26 PM | 1 Comment
  • Wed, Oct. 28, 7:52 AM
    • Statoil (NYSE:STO) -3.1% premarket after reporting a NOK2.8B net loss ($330.3M) on NOK112.2B in revenues, a narrower loss than a year ago but below analyst expectations for a net profit of NOK4.9B on revenues of NOK119.5B.
    • STO says it will delay the production start at the Aasta Hansteen gas field in Norway and the U.K. Mariner field to H2 2018 from 2017.
    • STO says costs had increased by ~9% at Aasta Hansteen and by more than 10% at Mariner since the planning stage, while costs had been reduced by 7% at the giant Johan Sverdrup field off Norway.
    • STO's overall production for Q3 rose 4% Y/Y to 1.9M boe/day.
    • Says its capex for the current year will total $16.5B, down from a previous forecast of $17.5B, and that it is seeking to save $1.7B/year through a cost-cutting plan that includes thousands of job cuts.
    | Wed, Oct. 28, 7:52 AM | Comment!
  • Wed, Oct. 28, 6:51 AM
    • Statoil (NYSE:STO): Q3 EPS of -NOK0.89 may not be comparable to consensus of NOK0.16.
    • Revenue of NOK112.2B (-23.9% Y/Y)
    • Press Release
    | Wed, Oct. 28, 6:51 AM | Comment!
  • Mon, Oct. 19, 9:48 AM
    • Total (TOT -2%) agrees to sell a 15% stake in the Gina Krog field in Norway to a unit of Sequa Petroleum for NOK1.4B, or ~$170M, as part of an asset sale program aimed at improving cash flow.
    • The Gina Krog project is currently under development in the Norwegian North Sea and is expected to start up in 2017.
    • TOT, which sold an 8% stake in Gina Krog last year, will retain a 15% stake in the field; Statoil (STO -2.7%) is the operator with a nearly 59% stake.
    | Mon, Oct. 19, 9:48 AM | 2 Comments
  • Fri, Oct. 16, 4:46 PM
    • The Obama administration today closed off two avenues for new oil drilling in the Arctic Ocean, weeks after Royal Dutch Shell (RDS.A, RDS.B) said it was abandoning the area.
    • The Interior Department said it was canceling scheduled auctions of drilling rights in the Chukchi and Beaufort seas, citing low industry interest, and it formally rejected bids by Shell and Statoil (NYSE:STO) for more time to search for crude under their existing Arctic leases.
    • The decision to deny lease suspension requests from Shell and Statoil mirrors a similar rejection of a ConocoPhillips (NYSE:COP) request for more time on its own Arctic leases; COP has challenged the decision before an Interior Department appeals board, and settlement talks are underway.
    | Fri, Oct. 16, 4:46 PM | 37 Comments
  • Fri, Oct. 16, 10:38 AM
    • Executives of 10 of the world's largest oil and gas companies declare their support for a climate agreement to be reached at an upcoming UN summit in Paris, but are unable to agree on a common position for carbon pricing.
    • Producers including BP, Total (NYSE:TOT) and state-run Saudi Arabian and Mexican companies agree to support policies consistent with the goal of keeping the increase in average global temperatures to within 2 degrees Celsius (3.6 degrees Fahrenheit).
    • The group also included BG Group (OTCQX:BRGXF, OTCQX:BRGYY), Eni (NYSE:E), Reliance Industries, Repsol (OTCQX:REPYF, OTCQX:REPYY), Royal Dutch Shell (RDS.A, RDS.B) and Statoil (NYSE:STO).
    | Fri, Oct. 16, 10:38 AM | 8 Comments
  • Tue, Oct. 13, 12:54 PM
    • Statoil (STO -1%) is looking to make a decision to go ahead with its Hywind floating wind power farm offshore Scotland within the six next weeks, the company's senior VP for wind power projects tells Bloomberg.
    • The Hywind park, which will consist of five 6 MW floating turbines, is a pilot project designed to demonstrate the technology on a commercial scale and is the company's first such commitment since creating a separate renewable energy unit.
    • "Offshore wind has a strong potential" along the coast of the U.K., the exec says while declining to provide a spending estimate; STO plans construction to start as early as next year with final commissioning in 2017.
    | Tue, Oct. 13, 12:54 PM | 2 Comments
Company Description
Statoil ASA is an integrated oil and gas company. It explores, produces, transports, refines, and markets petroleum and petroleum-derived products. It has operations in Norway, rest of Europe, North America, Africa, Asia and South America.