Statoil ASA(STO)- NYSE
  • Tue, Sep. 27, 9:45 PM
    • Australia’s oil and gas regulator is expected to rule this week on BP’s proposal to begin deepwater exploration drilling in the Great Australian Bight, a pristine stretch of ocean that is a sanctuary for whales and other protected species.
    • BP, Statoil (NYSE:STO) and Chevron (NYSE:CVX) are among several companies with permits to explore the area, which could contain up to 1.9B boe.
    • Critics warn that BP's presence would risk another “Deepwater Horizon-style” oil spill; Australia’s oil and gas regulator already has twice denied BP’s environmental plan for the area.
    • But even as the oil majors have de-emphasized high-risk deepwater frontier exploration wells in favor of lower-risk opportunities close to existing infrastructure, BP is under pressure to find new resources after underperforming peers in terms of booking new oil reserves during recent years, and the Great Australian Bight is one of the world's largest untested deepwater basins.
    | Tue, Sep. 27, 9:45 PM | 5 Comments
  • Tue, Sep. 27, 10:27 AM
    • North American Drilling (NADL -4.1%) is sharply lower after Statoil (STO -2%) canceled its drilling contract for NADL's West Epsilon jack-up about two months before expiration; Seadrill (SDRL -2.2%), which owns ~70% of NADL, also is lower.
    • NADL says it will receive an $11M lump sum payment because of the early termination.
    • The rig's dayrate is $247K, so the cancellation means ~$14M in lost backlog; NADL's total backlog is now an estimated $370M.
    | Tue, Sep. 27, 10:27 AM | 9 Comments
  • Wed, Sep. 21, 10:21 AM
    • More than 300 Norwegian oil service workers are on strike after wage talks broke down, hitting operations of subcontractors to the country's oil and gas industry including Schlumberger (SLB +1%), Halliburton (HAL +2.3%), Baker Hughes (BHI +2%) and Oceaneering (OII +1.5%).
    • The conflict will force oil companies to halt drilling of some wells on Norway's continental shelf and later could cut into the country's production of ~2M bbl/day of oil, condensate and natural gas liquids; state-controlled Statoil (STO +0.8%) is Norway's largest oil firm.
    • Brent crude recently was 1.6% higher at $46.58/bbl and WTI had jumped 2.1% to $45, sparked by the strike and API data showing a surprise drop in U.S. crude inventories.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Wed, Sep. 21, 10:21 AM | 15 Comments
  • Wed, Sep. 21, 8:58 AM
    • Statoil (NYSE:STO) celebrates the extraction of 5B barrels of crude from the North Sea Statfjord field, where production began in 1979.
    • STO originally had hoped to recover 40% of the oil at the field, but Statfjord so far has reached a record high of 67%.
    • Statfjord’s productive life is not over yet and the operators plan to pump oil from it until 2025; there are 451 wells currently functioning, with 70 more planned to be drilled.
    | Wed, Sep. 21, 8:58 AM | 1 Comment
  • Tue, Sep. 13, 2:33 PM
    • Total (TOT -3.5%) is considering selling down its 51% stake in the Martin Linge offshore oil and gas field in Norway’s North Sea, Bloomberg reports.
    • TOT's holding is worth ~$1B, and the company also is offering some smaller producing assets to potential buyers as part of the deal, according to the report.
    • The field is scheduled for first production in 2018; TOT is the operator, while the remaining stake is held by Statoil (STO -3.9%) and state-owned Petoro.
    | Tue, Sep. 13, 2:33 PM | 2 Comments
  • Tue, Sep. 13, 7:53 AM
    • Statoil (NYSE:STO) -2.1% premarket after warning that the giant Johan Castberg oil project in the Barents Sea off the Norwegian coast could become unfeasible or face delays if parliament requires it to run on power via cable from the mainland rather than cheaper but more polluting gas power.
    • STO says it would cost up to 12B kroner ($1.46B) to prepare the field to run on clean hydro power via cable from the mainland, due to long distances in the Arctic basin as well as technical challenges.
    • STO estimates proven reserves at Johan Castberg at 400M-600M barrels of oil.
    | Tue, Sep. 13, 7:53 AM | 1 Comment
  • Mon, Sep. 12, 11:51 AM
    • Statoil (STO +0.5%) says it has started to drill the world's hottest geothermal well on Iceland to explore if high temperature water can be extracted from deep reservoirs for power production.
    • STO is a partner in the Iceland Deep Drilling Project, an international research project designed to explore the potential of deep, high-enthalpy geothermal resources, especially supercritical hydrothermal fluids, as energy sources.
    • The drilling operation seeks to deepen an existing geothermal well to 5 km (3.1 miles), where super-heated steam can be brought to the surface at 400-500 degrees Celsius and used for efficient generation of electricity in steam turbines.
    | Mon, Sep. 12, 11:51 AM | 3 Comments
  • Thu, Sep. 8, 11:37 AM
    • Plans by Norway’s government to open up new areas for oil exploration near fish spawning grounds and one of the most picturesque parts of the Arctic has attracted widespread outrage and dismay in the country, Financial Times reports.
    • Statoil (STO +0.5%) has been one of the most vocal proponents of opening up the area around the Lofoten islands - home to the world’s largest cold water coral reef - for development, arguing that Norway’s oil production would otherwise continue to decline.
    • The dispute could become a political problem for Conservative prime minister Solberg, who needs the support of the Liberal and Christian Democrat parties - both of which oppose drilling in the new areas - for the coalition government to have a majority in parliament.
    • The outcry also comes as the one oilfield producing in the Norwegian Arctic - the Goliat platform run by Eni (E +1.2%) - is under criticism from regulators after a series of mishaps; production is stopped for now until the company can convince the regulator on safety.
    | Thu, Sep. 8, 11:37 AM | 4 Comments
  • Tue, Sep. 6, 10:59 AM
    • Statoil (STO +1.7%) says it plans to push deeper into the Arctic, shopping for Barents Sea drilling licenses in an attempt to add resources and maintain production over the coming decades.
    • STO said it had acquired stakes in four licenses in Norway's far north from Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY), after entering or boosting its holdings in five other Arctic licenses in the past months, through deals with companies including OMV and ConocoPhillips, at undisclosed prices.
    • As part of the deal with Tullow, STO raised its stake in the 241M-barrel Wisting discovery in the Hoop area of the Barents Sea to 35% from 15%, enlarging its footprint in one of the most promising provinces in Norway's far north, Jez Averty, STO's head of exploration in Norway and the U.K., tells WSJ.
    | Tue, Sep. 6, 10:59 AM | 1 Comment
  • Tue, Aug. 30, 9:19 AM
    • Petrobras (NYSE:PBR) signs a partnership deal with Norway's Statoil (NYSE:STO) to co-operate on opportunities in producing Brazilian oil fields.
    • The companies say the agreement allows for the evaluation of joint participation in future tenders for exploration areas and to increase upstream collaboration in producing fields in the Santos and Campos offshore basins.
    • PBR CEO Pedro Parente points out that STO boasts high levels of oil recovery in its producing fields; STO CEO Eldar Saetre says the agreement reflects the company's long-term commitment to Brazil and PBR.
    | Tue, Aug. 30, 9:19 AM | 4 Comments
  • Tue, Aug. 30, 8:32 AM
    • Statoil (NYSE:STO) says its Gullfaks Rimfaksdalen project has come onstream four months ahead of schedule and cost more than 1B kroner ($120M) less than original costs estimates of 4.8B kroner.
    • "We have re-used infrastructure that we maybe hadn't considered before, we have boosted drilling efficiency, and adapted solutions that were more fit for this project," STO's head of Norwegian operations says.
    • STO recently has announced a string of cost cuts at its biggest projects, including the giant Johan Sverdrup field in the North Sea; the company says it has lowered the average breakeven price of upcoming projects to below $41/bbl on average, from $70/bbl three years ago.
    • STO also says it plans to conduct a major exploration campaign in several parts of the Barents Sea in 2017, and is working on obtaining approval from partners and authorities for an exploration campaign covering 5-7 wells.
    | Tue, Aug. 30, 8:32 AM | 2 Comments
  • Tue, Aug. 30, 4:30 AM
    • Chevron (NYSE:CVX) has signed a 10-year term supply deal with China's ENN to supply up to 650K metric tons per annum of LNG, which could boost the formation of a spot market for the fuel in Asia.
    • More gas is coming on board from Statoil (NYSE:STO) after its Gullfaks Rimfaksdalen field started production four months ahead of schedule.
    • KKR-backed Samson Resources has reached a new agreement with creditors that aims to bring the company out of Chapter 11 under the ownership of its second-lien lenders.
    | Tue, Aug. 30, 4:30 AM | 1 Comment
  • Mon, Aug. 29, 2:59 PM
    • Norwegian energy safety officials are asking Italy's Eni (E -0.1%) to present plans on how to avoid power disruptions at its Goliat oil platform in the Barents Sea, after production at Norway's only Arctic oil field was shut on Friday due to loss of power supply from shore, prompting a partial evacuation, and a similar shutdown occurred in May after the field's startup in March.
    • The government wants Eni to present the plan by Sept. 5, and calls on Eni, which holds a 65% stake in the license, and partner Statoil (STO +0.9%) to meet officials to discuss the planned measures.
    • The field in the Barents Sea is estimated to contain ~180M barrels of oil, and was currently produces ~72K bbl/day of oil.
    | Mon, Aug. 29, 2:59 PM | 2 Comments
  • Mon, Aug. 29, 7:53 AM
    • Statoil (NYSE:STO) lowers development costs for the start-up of its giant Johan Sverdrup oilfield by 24B kroner ($2.9B) to 99B kroner ($11.96B), with total spending including a second phase of investment and capacity expansion now projected at 140B-170B kroner from an earlier outlook for 170B-220B kroner.
    • After successful work on “optimizing the processing facility,” STO also is raising phase 1 production capacity to 440K bbl/day of oil, up from an original estimate of 315K-380K bbl/day, and says later phases in the project that will add a processing platform on the field center will increase full production capacity to 660K bbl/day, up from a previous estimate of 550K-650K.
    • STO now estimates the price of oil at which the project will be profitable at below $25/bbl, down from a previous forecast of less than $30/bbl given in February and below $40/bbl a year ago.
    • The Sverdrup field holds as much as 3B barrels of crude and is expected to contribute ~40% of Norway’s total crude oil output in the 2020s.
    | Mon, Aug. 29, 7:53 AM | 2 Comments
  • Thu, Aug. 25, 2:16 PM
    • Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to the United Nations' International Seabed Authority if they drill far offshore, Reuters reports, citing an internal government memo.
    • Statoil's (STO +0.1%) proposed Bay du Nord project, 270 miles offshore Newfoundland and Labrador, likely would be the first to trigger such payment obligations, although payments would not be due until five years after production, according to the report.
    • STO has said that Bay du Nord has at least 300M barrels of oil, worth more than $14B at current prices; fees could total as much as 7% of the annual production value.
    | Thu, Aug. 25, 2:16 PM | 4 Comments
  • Thu, Aug. 25, 9:58 AM
    • Statoil (STO +0.1%) says it will expand its operations in Brazil by entering a second phase of exploration at the Peregrino offshore oilfield, adding ~250M barrels of recoverable reserves.
    • The next phase of exploring at STO's largest non-Norwegian offshore operation, which is expected to include the drilling of 22 new wells, will be done with Chinese partner Sinochem.
    • STO is pushing ahead even as Norwegian oil experts warn that oil prices will need to rise to $70-$80/bbl for the company to profit off the BM-S-8 site.
    | Thu, Aug. 25, 9:58 AM | 6 Comments