Wed, Jun. 24, 10:31 AM
- Statoil (STO +0.8%) says it is canceling a contract with the COSL Pioneer drilling rig 13 months before it expires, as the company had failed to find work for it amid an overcapacity of rigs.
- The rig was suspended last October following the plunge in oil prices; two other rigs also were suspended during the fall, and STO said in December the rigs would be kept idle longer than expected.
- STO is working to cut costs by $1.7B/year from 2016 to boost project profitability, and said last week it would cut up to 1,500 permanent jobs and hundreds of consultants in Norway.
Wed, Jun. 17, 2:37 PM
- A Statoil (STO +1.9%) senior VP says he is optimistic the company will be able to reach an agreement with the government of Canada's Newfoundland on terms to develop the 600M barrel Bay du Nord discovery in the north Atlantic off the province's coast, but is not yet ready to say when he expects to reach a deal.
- The exec says STO is excited about the potential for production in the Flemish Pass Basin but cautions that many challenges must be overcome, including oceans depths, distance, logistics and harsh weather conditions.
- The comments came in response to a surprising statement yesterday by Newfoundland and Labrador Premier Paul Davis that the province is just "weeks away" from signing a term sheet with STO for development of Bay du Nord.
Tue, Jun. 16, 6:55 AM
- Statoil (NYSE:STO) has launched the next phase of its efficiency program, announcing it would cut between 1,100-1,500 permanent employees by the end of 2016 as it looks to increase efficiency and strengthen competitiveness.
- The company initiated a cost improvement and capital expenditure program in 2013 to address industry-wide cost and competitiveness challenges, aiming to save $1.7B annually from 2016.
- Previously: Report: Statoil to eliminate another 2,000 jobs (Jun. 12 2015)
Mon, Jun. 15, 12:56 PM
- Europe’s biggest oil groups are extending business deals with their Russian energy partners despite continued western sanctions, as FT reports BP is close to a deal to acquire a 20% stake in the Taas-Yuriakh oil field in Siberia from Rsoneft (OTC:RNFTF) that could be worth $700M.
- Also, Eni (NYSE:E) and Statoil (NYSE:STO) have received approval from the their respective governments to continue work on their joint ventures with Rosneft, and Shell (RDS.A, RDS.B) continues to work on its Salym joint venture with Gazprom and has applied for approval from the Dutch government for other projects, according to FT.
- One western energy official in Moscow says European companies are "keeping the plate warm” for when sanctions are eventually lifted.
Fri, Jun. 12, 7:51 AM
- Statoil (NYSE:STO) is set to cut another 2,000 jobs from its global workforce in its biggest manpower reduction to date as part of a cost-cutting drive amid the oil industry slowdown, according to a local report.
- STO already has pared nearly 2K workers since last year, and many others have accepted severance pay packages and left voluntarily.
- The new round of cuts comes even after STO moves forward with the development of the Johan Sverdrup oil field in the North Sea.
Wed, Jun. 10, 7:55 AM
- Statoil (NYSE:STO) selects board member Oystein Loseth as its new Chairman and Roy Franklin as Deputy Chairman, effective July 1.
- Loseth has been a STO board member since October, while Franklin was a member of the StatoilHydro board from 2007 and later STO's board during 2009-13.
- Current Chairman Svein Rennemo earlier had said he did not wish to stand for re-election in 2015.
Tue, Jun. 9, 11:30 AM
- Repsol (OTCPK:REPYF, OTCQX:REPYY) joins its European peers in calling for governments to agree on carbon pricing at a UN climate summit later this year, expanding the group of energy companies seeking a voice at the meeting.
- Repsol signs the letter that BP, Eni (NYSE:E), Royal Dutch Shell (RDS.A, RDS.B), Statoil (NYSE:STO), Total (NYSE:TOT) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) released earlier this month - and that the top U.S. companies avoided - asking for a global price for carbon.
- Gas now accounts for ~55% of Repsol's total output following its acquisition of Talisman Energy in December.
Tue, Jun. 9, 8:32 AM
- Statoil (NYSE:STO) says it made a gas discovery in the Gymir prospect that lies within the Aasta Hansteen area of the Norwegian Sea, the third such find in three months.
- STO estimates total volumes of the three discoveries - Snefrid Nord, Roald Rygg and Gymir - amount to 75M-120M boe, equating to about a third of the Aasta Hansteen recoverable volumes.
- Aasta Hansteen, one of the main projects in STO's portfolio, will be the largest SPAR platform in the world and is the biggest ongoing field development project in the Norwegian Sea.
Mon, Jun. 8, 8:40 AM
- Tanzania’s known natural gas reserves have increased by up to 18% in the last 12 months to 55T cf, up from 46.5T cf last June, following a number of discoveries in blocks off the country’s southeastern coast, the energy and minerals ministry says.
- Also, the 532-km gas pipeline connecting the offshore oilfields to the port city of Dar Es Salaam is complete and will be commissioned in September, the minister says.
- Companies including Exxon Mobil (NYSE:XOM), Statoil (NYSE:STO), Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) have made a series of finds off the coast of Tanzania and Mozambique in recent years, making the region a hotspot for energy investors; more than 100T cf of natural gas already have been discovered in Mozambique alone.
Mon, Jun. 8, 8:20 AM
- Statoil (NYSE:STO) awards a contract worth 6.7B Norwegian kroner (~$843M) to a joint venture between KBR and Norway's Kvaerner (OTC:KVAEF) to construct the utility and living quarter platform at its Johan Sverdrup project in the North Sea.
- The engineering, procurement and construction contract is considered particularly vital for Kvaerner, whose order book was dwindling after energy companies had stopped or canceled many projects amid the oil price slump.
- Sverdrup is the costliest North Sea project ever at nearly $30B and holds up to 3B boe; once it is fully running in the first half of the next decade, it could account for a quarter of Norway's oil and gas output.
Thu, Jun. 4, 12:28 PM
- Statoil (STO -1.5%), one of the European oil companies that this week called for a global carbon emission pricing plan, says the most aggressive steps to cut carbon dioxide emissions will lead to the best results for the global economy.
- STO estimates the world can achieve global growth averaging 2.9%/year through a "renewal" scenario in which emissions are cut by 39% by 2040, and that in other scenarios in which the world fails to meet a target of limiting the rise in temperature to 2 degrees Celsius, economic growth would average as low as 2%/year.
- "The 2 degree goal is achievable, but... it implies much higher carbon prices, very strict requirements for energy efficiency in the transportation sector," says STO's chief economist.
Tue, Jun. 2, 12:24 PM
- Europe's largest oil companies have come out forcefully against coal, while they tout their rising production of natural gas to help reduce carbon emissions and lessen the world's reliance on coal for heating homes and creating electricity.
- Royal Dutch Shell (RDS.A, RDS.B), BP, Total (NYSE:TOT), Statoil (NYSE:STO) and Eni (NYSE:E) sent a joint letter to the U.N. this week calling for measures to push up the cost of burning coal, either by taxing carbon emissions directly or reducing the supply of carbon emission credits to make those credits pricier on the secondary market.
- Financial Times notes the "more prosaic reason for the energy companies' enthusiasm" is that half of their proven reserves are in natural gas; "with a UN Climate Conference approaching in December, there is every reason for these companies to promote the use of natural gas over coal, which emits roughly twice the carbon for each unit of energy," FT says.
- Shell now produces more gas than crude oil and is set to solidify its position on top of the LNG market with its $70B deal to buy BG Group; roughly half of BP's production is natural gas, which could rise to 60% by the end of the decade.
Tue, Jun. 2, 9:55 AM
- Statoil (STO +3.8%) opens higher after saying it agrees to significantly boost gas supplies to the U.K.’s SSE under an expansion of their existing supply agreement.
- STO says it will begin supplying 2.5B cm/year to SSE in October, up from the original annual volume of 500M cm/year under the six-year deal signed by the pair in October last year.
- STO’s long-term supply deals with SSE and Centrica represent nearly 15% of the U.K.’s 70B cm/year demand for gas.
Mon, Jun. 1, 5:33 PM
- Firefighters report some progress fighting wildfires in Alberta's oil producing region but a number of oil sands projects remain shut down, keeping ~10% of total oil sands production offline.
- The number of fires has dropped to 35 from 42 on Friday, with five considered out of control.
- The wildfire hazard in the Lac la Biche region, where Cenovus Energy (NYSE:CVE) and Canadian Natural Resources (NYSE:CNQ) evacuated their respective Foster Creek and Primrose projects more than a week ago, was downgraded today to “moderate” from “extreme” by Alberta's government.
- CVE also evacuated workers from its non-producing Narrows Lake site last week due to a different fire, and says that blaze is now under control.
- Statoil (NYSE:STO) had evacuated non-essential staff from its Leismer oil sands project with no impact to production, and now says it hopes to remobilize evacuated workers this week.
- A wildfire burning near MEG Energy’s (OTCPK:MEGEF) Christina Lake site also remains out of control.
Mon, Jun. 1, 3:58 PM
- Teekay Offshore Partners (TOO -1.1%) says it has signs new long-term contracts with a consortium of energy companies to provide shuttle tanker services for oil production activities on Canada's east coast.
- TOO says it will construct three Suezmax-size, DP2 shuttle tanker newbuildings with a South Korean shipyard for a fully built-up cost of ~$365M, with an option to order a fourth vessel if needed; the three firm vessels are expected to be delivered in Q4 2017 through H1 2018.
- The group of companies include Chevron (NYSE:CVX), Husky Energy (OTCPK:HUSKF), Murphy Oil (NYSE:MUR), Statoil (NYSE:STO) and Suncor Energy (NYSE:SU).
Mon, Jun. 1, 3:06 AM
- Europe's six largest oil and gas groups have united together in seeking help from the United Nations to stop global warming and create a global carbon pricing system.
- "We owe it to future generations to seek realistic, workable solutions to the challenge of providing more energy while tackling climate change," the companies' executives said in a letter to the FT.
- The step comes as nearly 200 countries prepare to sign a global climate pact at a U.N. conference in December.
- Companies involved: Shell (RDS.A, RDS.B), Total (NYSE:TOT), BP, BG Group (OTCQX:BRGYY), Statoil (NYSE:STO) and Eni (NYSE:E).
- Previously: Europe's oil giants look to add unified voice to climate debate (May. 20 2015)
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.
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