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Statoil ASA (STO)

- NYSE
  • Tue, Apr. 14, 5:26 PM
    • The price of oil will recover but not back to triple-digits, Citigroup says, leading the firm to recommend ConocoPhillips (NYSE:COP), Devon Energy (NYSE:DVN), Total (NYSE:TOT) and Statoil (NYSE:STO) while downgrading BP.
    • Many companies have not left enough headroom to deal with a lower oil price environment after the hot pursuit of growth in recent years, the firm says, believing those most challenged in the new paradigm are players focused on liquefied natural gas and heavy oil, as well as most of the big oil names.
    • Citi says “shale is the core of the survivors' party,” and that investors can get "good value exposure” by buying COP and DVN; self-help also will be part of surviving $60-$75 oil, pointing to TOT and STO as having the most potential.
    • The firm cuts BP to Neutral because it thinks all its potential self-help has been priced into the stock.
    | 9 Comments
  • Tue, Apr. 14, 12:21 PM
    • Statoil (STO +3.6%) says it made another gas find near its Aasta Hansteen field in the Norwegian Arctic, further raising the gas resource in one of its biggest ongoing projects.
    • STO says it found 2B-7B cm of gas that, together with a discovery announced earlier this year, increased the field's resource by about a quarter.
    • Separately, the company reportedly plans to cut as many as 2,400 engineers in a new round of redundancies as it tries to cut costs in the face of lower crude prices.
    | Comment!
  • Thu, Apr. 9, 12:22 PM
    • Statoil (STO +0.4%) says it made an oil discovery at its Miocene Yeti prospect in the deepwater Gulf of Mexico, but is still determining the size of the discovery in order to consider future appraisal options.
    • STO says its drilling efficiency on Yeti is among the best of any well drilled in Walker Ridge, achieving a rate of 400 ft./day.
    • STO is the Yeti operator with 50% interest, partnering with Anadarko Petroleum (NYSE:APC) with a 37.5% stake and Samson Oil owning 12.5% (NYSEMKT:SSN).
    | 3 Comments
  • Mon, Mar. 30, 8:24 AM
    • Statoil (NYSE:STO) says it has made another natural gas discovery at the Mdalasini-1 exploration well offshore Tanzania.
    • STO says the discovery of an additional 1T-1.8T cf of natural gas at the well brings the total of in-place volumes to ~22T cf in Block 2.
    • STO believes more discoveries can be made in the area, but that it will now concentrate on appraising one of its previous seven discoveries.
    • Unlike the previous discoveries in the block, where Exxon Mobil participated with a 35%, STO says it had paid 100% of the cost for the latest well.
    | Comment!
  • Tue, Mar. 24, 9:16 AM
    • Statoil (NYSE:STO) appoints Anders Opedal as COO, a new position created to drive the company's operational efficiency and improvement programs as it ramps up cost cutting amid lower oil prices.
    • Opedal, a STO employee since 1997, is currently senior VP of projects in the Technology, Projects and Drilling segment, supervising the company's ~300B kroner ($38.1B) project portfolio; he will begin his new position on April 1.
    • Last month, STO increased its cost-cutting plans by 30% with the aim of lowering costs $1.7B/year by 2016; so far, it has saved ~$500M.
    | Comment!
  • Wed, Mar. 18, 4:35 PM
    • Chevron (NYSE:CVX), Royal Dutch Shell (RDS.A, RDS.B), Exxon Mobil (NYSE:XOM) and Statoil (NYSE:STO) led the way in today's government auction of Gulf of Mexico offshore oil and gas leases.
    • Lease Sale 235 drew 195 bids on 169 blocks from 42 companies, with the sum of apparent high bids totaling $539M, vs. last year’s Lease Sale 231 that received 380 bids on 326 blocks from 50 companies, resulting in $850M in high bids.
    • CVX all companies with $78.6M in total apparent high bids after submitting 11, including the second and third single highest bids, while Shell led in total apparent high bids at 17, totaling $37.9M.
    • The single largest bid, however, was $52.2M from a group owned by the Southern Ute Indian Tribe of Southwest Colorado.
    • BP submitted only four apparent high bids totaling $4.4M vs. last year's 24 high bids totaling $41.6M.
    | 5 Comments
  • Wed, Mar. 18, 11:31 AM
    • Statoil (STO +0.1%) says it expects to drill four wells in Russia with Rosneft (OTC:RNFTF), ramping up its involvement in the country despite international sanctions.
    • STO is planning to drill two wells at a heavy oil pilot project in western Siberia this year and two offshore wells in the Sea of Okhotsk in 2016.
    • The projects need clearance from Norwegian authorities to make sure they are in compliance with sanctions, but the company believes the proposals lie outside the scope of sanctions.
    | 3 Comments
  • Wed, Mar. 18, 6:45 AM
    • Statoil (NYSE:STO) has announced a new gas discovery near the Aasta Hansteen field in the northern part of the Norwegian Sea.
    • "The Snefrid Nord discovery increases the resource base for the Aasta Hansteen field development project by around 15%," Irene Rummelhoff, Statoil's senior vice president of exploration Norway.
    • Preliminary calculations put the find at between 5B-9B standard cubic meters of recoverable gas.
    | Comment!
  • Mon, Mar. 16, 10:17 AM
    • Street chatter says Statoil (STO -2.8%) may be pursuing EOG Resources (EOG +0.5%) in a merger or acquisition that could exceed $50B.
    • Analysts say the deal would make sense for STO, which is seeking to expand its U.S. shale presence; STO also has been mentioned as one of several companies showing interest in Whiting Petroleum (WLL -8%).
    • Color Raymond James analyst Andrew Coleman skeptical, saying that a 25% premium over EOG's recent $85 share price - suggesting an offer near $60B - would be needed just to get a returned phone call.
    | 15 Comments
  • Mon, Mar. 16, 10:15 AM
    | 1 Comment
  • Fri, Mar. 13, 3:58 PM
    • Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
    • Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
    • WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
    • WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
    | 33 Comments
  • Wed, Mar. 11, 5:41 PM
    • The widening corruption probe into Petrobras (NYSE:PBR) is likely to delay by at least one year four major offshore oilfield projects, Portuguese partner Galp Energia (OTC:GLPEF) says, in a first sign of strain on foreign investors.
    • Galp, which is involved in nearly 30 onshore and offshore oil and gas projects in Brazil, eyes a one-year delay in the building of production ships for the Lula Sul, Lula Norte, Lula Extremo Sul and Lula Oeste fields, which it is developing with PBR.
    • The uncertainty is expected to lead to delays in the delivery of four locally-made FPSO units after contractors have either gone bankrupt or been banned from receiving money from PBR due to the corruption scandal.
    • Galp's forecast comes before PBR issues its own guidance on project development in light of the investigation.
    • Other major oil companies producing in Brazil include XOM, RDS.A, RDS.B, STO, CVX, BP, OTCQX:REPYY, OTCPK:REPYF, OTCPK:BRGXF, OTCQX:BRGYY.
    | 2 Comments
  • Mon, Mar. 9, 3:35 PM
    • Analysts are mostly positive on Whiting Petroleum (WLL +10.8%) after WSJ's report that the company is looking to sell itself, particularly seeking out Statoil (STO -1.7%) to make a bid.
    • WLL is a prime takeover candidate, given its attempt to sell itself in 2012, BofA Merrill says as it maintains its Buy rating and $45 price target, adding that the scale of WLL's assets has increased significantly because of its Kodiak acquisition and could attract large energy companies with strong balance sheets such as Exxon (NYSE:XOM), Chevron (NYSE:CVX) and Hess (NYSE:HES).
    • WLL could get a strong price because of its rich assets in the Bakken Shale; on the other hand, investors have become particularly concerned about E&P companies that are heavily focused on a single region, as WLL is in the Bakken.
    • UBS analyst Betty Jiang points out some hurdles to a potential deal, including a wide price differential between buyers and sellers, and potential acquirers' apparent preference for buying land in areas that are cheaper than the Bakken.
    | 6 Comments
  • Mon, Mar. 9, 8:18 AM
    • Whiting Petroleum (NYSE:WLL) +10.2% premarket after WSJ reported Friday night that the company is for sale, citing unidentified sources.
    • Reuters reports that a person familiar with the board's thinking said he was not aware of any such plan.
    • Bloomberg reports that WLL has hired a bank to pursue a possible sale and has reached out to potential buyers including Statoil (NYSE:STO).
    | 6 Comments
  • Fri, Mar. 6, 9:13 AM
    • Statoil (NYSE:STO) says it is postponing key decisions on development of its Johan Castberg and Snorre 2040 projects off Norway, citing the need for extra time to find more cost-effective solutions for the two major oil projects.
    • Statoil is delaying the concept selection for the Arctic Johan Castberg project by more than a year to H2 2016, while a similar decision on extending the lifetime of the Snorre 2040 field is delayed into 2017.
    • Analysts say Castberg, with up to 650M boe, could cost more than $70/bbl to develop while the Snorre expansion could cost more than $80/bbl.
    • STO +0.4% premarket.
    | Comment!
  • Thu, Mar. 5, 2:51 PM
    • The Obama administration will decide soon whether to grant Royal Dutch Shell’s (RDS.A, RDS.B) request for extra time to hunt for oil in Arctic waters, Interior Secretary Sally Jewell said yesterday.
    • Without action, Shell’s oil and gas leases in the Beaufort Sea will begin expiring in 2017, followed by its drilling rights in the neighboring Chukchi Sea two years later; the same fate awaits Chukchi Sea leases sold in 2008 to Statoil (NYSE:STO) and ConocoPhillips (NYSE:COP), which have made similar appeals for more time, citing regulatory uncertainty, legal challenges and other obstacles.
    • The companies’ bids for “suspensions of operation” would effectively stop the clock ticking on their 10-year leases.
    • STO and COP have no active plans to drill in U.S. Arctic waters, but Shell is preparing to resume exploration in the Chukchi Sea this summer.
    | Comment!
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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.