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Statoil ASA (STO)

  • 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. 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
  • 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!
  • 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
  • Thu, Oct. 8, 8:26 AM
    • Statoil (NYSE:STO) -2% premarket after reporting an oil spill near its Statfjord A platform in the North Sea that has halted crude loading operations.
    • Statfjord is one of the oldest producing fields on the Norwegian continental shelf, and the largest oil discovery in the North Sea; the field's oil is loaded onto tankers and shipped to ports in northwestern Europe.
    • STO says it is too early to determine how much oil had leaked.
    | Thu, Oct. 8, 8:26 AM | 3 Comments
  • Wed, Oct. 7, 2:37 PM
    • Petrobras (PBR +3.1%) sits out an oil licensing round in Brazil for the first time, as it struggles to reduce its enormous debt load.
    • Brazil’s National Petroluem Agency sold only 37 of the 266 onshore and offshore blocks offered in the worst turnout at a Brazil auction in years, and global oil majors who operate in Brazil including Statoil (NYSE:STO), Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT) did not submit any bids.
    • The country faces many of the same struggles that hindered two oil auctions earlier this year in Mexico: slumping crude oil prices, and companies are cutting investments.
    • "Petrobras isn’t participating.. [it] is afraid about new troubles and expenses," an oil consultant and former employee at the company tells Bloomberg.
    | Wed, Oct. 7, 2:37 PM | 10 Comments
  • Tue, Sep. 29, 2:50 PM
    • Statoil (STO +2.4%) says it laid the final piece of its Polarled pipeline connecting the Aasta Hansteen natural gas field in the Norwegian Sea to processing facilities and terminals on Norway's coast.
    • Aasta Hansteen is estimated to hold 175B-300B cf of recoverable natural gas, making it one of the largest fields in the region; once it starts, an onshore processing terminal will be ready to receive natural gas through Polarled by 2017.
    • STO says Polarled was built 32% under budget for at an investment of ~$875M; the new pipeline stretches ~300 miles and can transport up to 2.4B cf/day of gas.
    | Tue, Sep. 29, 2:50 PM | 1 Comment
  • Fri, Sep. 18, 9:47 AM
    • BP (BP -2.3%) is expected to continue as operator of the ACG oil field complex after the current production-sharing deal expires, according to Azerbaijan state oil company Socar.
    • The comments signal a thawing in BP’s relations with the Azeri government, after the president three years ago blamed an unexpected decline in oil output from the ACG fields on “grave mistakes” by BP.
    • BP gets ~5% of its oil output from Azerbaijan; others in the ACG development group include Chevron (CVX -2.6%), Exxon (XOM -2.7%) and Statoil (STO -2.4%).
    | Fri, Sep. 18, 9:47 AM | Comment!
  • Tue, Sep. 1, 3:58 PM
    • Citigroup's energy analysts defend their bullish take on big oil stocks such as ConocoPhillips (COP -2.6%), Total (TOT -2.1%) and Statoil (STO -4.5%), pointing to 30-year valuation lows, upside asymmetric risk on oil prices and signs that managements are doing enough to turn the corner on better capital allocation and cost-cutting.
    • Favoring COP, TOT and STO, the firm says its sector investment criteria are (1) growth - companies that have near-term growth are less reliant on simply cutting costs; (2) better capital allocation - combined with growth, it should deliver 2-3x the ROE uplift than cost-cutting can; and (3) a strong enough balance sheet to manage the early part of the cycle.
    • Citi is staying away from Exxon Mobil (XOM -4%) because of its valuation premium to peers and low growth and from Chevron (CVX -3.2%) due to its slow response in a lower commodity world.
    | Tue, Sep. 1, 3:58 PM | 28 Comments
  • Mon, Aug. 31, 5:37 PM
    • Top gainers, as of 5.25 p.m.: TRVN +41.0%. DBVT +4.4%. SUNE +4.2%. JAKK +2.4%. NVO +1.1%.
    • Top losers, as of 5.25p.m.: ACI -8.7%. STO -4.7%. AU -3.1%. TS -3.1%. SBGL -3.0%.
    | Mon, Aug. 31, 5:37 PM | Comment!
  • Tue, Jul. 28, 9:49 AM
    • Statoil (STO +2.6%) opens with solid gains after beating Q2 estimates on the top and bottom lines, reporting Q2 earnings of NOK3.15/share vs. NOK1.62 analyst consensus and revenues of NOK138.5B vs. NOK124.8B consensus.
    • STO says it booked a one-off gain of NOK12.3B on the sale of its interest in Azerbaijan's Shah Deniz gas field.
    • STO says it is further cutting its capital expenditures by 3% to $17.5B, which already is down from $20B last year.
    • Q2 production totaled 1.87M boe/day, up 4% Y/Y, with 7% underlying production growth after adjusting for divestments.
    • While STO’s average liquids price fell to $55/bbl from $99.7 a year ago, refining margins improved to $9.6/bbl from $3.9; net operating income for its marketing and processing unit almost doubled to NOK5.1B from a year earlier.
    • STO is "sailing through with strong operating performance and visible management response on costs. Statoil’s results prove once again just how resilient its business model actually is,” says Bernstein's Oswald Clint.
    | Tue, Jul. 28, 9:49 AM | 2 Comments
  • Thu, Jul. 16, 3:32 PM
    • Statoil (STO +1.6%) is higher following an upgrade to Buy at Citigroup, which adds the stock to its short list - which also includes Total (TOT +0.9%) and ConocoPhillips (COP -0.9%) - of companies the firm believes is leading change in the industry.
    • Citi cuts its estimates for 2015 prices by 8% and 2016 prices by 10% to $58/bbl and $63/bbl, respectively; in turn, with companies’ "feet to the fire,” the firm lowers its earnings estimates by an average of 4% for this year and 9% for 2016.
    • But Citi thinks new CEO Eldar Saetre is driving deep-seated change at STO, with a core ambition to improve on self-help initiatives that already have been active over the last 12-18 months, bringing cost-efficiencies towards best-in-class within the big oil group.
    | Thu, Jul. 16, 3:32 PM | 4 Comments
  • Mon, Jun. 29, 12:31 PM
    • Construction begins at the giant Johan Sverdrup field development off Norway, as Statoil (STO -3.1%) says the first steel is cut for the jacket for the riser platform.
    • At a designed 26.5K tons, the entire jacket will be the largest in Europe when complete; a special barge, the largest of its kind in the world, will transport the structure to the drilling site when completed in 2017.
    • Johan Sverdrup is one of the five biggest oil fields ever discovered on the Norwegian continental shelf, with reserves estimated at 1.7B-3B boe.
    | Mon, Jun. 29, 12:31 PM | Comment!
  • 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.
    | Wed, Jun. 17, 2:37 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.