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Statoil ASA (STO)

- NYSE
  • Mon, Jan. 5, 12:39 PM
    • ConocoPhillips (COP -4.8%) says it is flowing its first barrels of oil from the Eldfisk II project in the Norwegian North Sea, in the company’s second big startup off the coast of Norway since late 2013.
    • COP says its newly productive project, alongside its other Norwegian offshore wells, will boost its output by 60K boe/day by 2017, and plans to drill 40 new water-injection and oil wells at its Norwegian field over the next three years.
    • The Eldfisk field is one of four offshore oil regions that make up Norway’s Greater Ekofisk Area, operated by COP and co-owned with Total (NYSE:TOT), Eni (NYSE:E), Statoil (NYSE:STO) and others.
    | 7 Comments
  • Dec. 23, 2014, 8:21 AM
    • Southwestern Energy (NYSE:SWN) agrees to acquire an undivided 20% of Statoil's (NYSE:STO) ownership in Marcellus Shale oil and gas assets in West Virginia and Pennsylvania for $394M.
    • SWN's purchase equates to 30K net acres and increases its overall working interest in the assets to ~73%; STO's net production from the properties was 29M cfe/day of gas as of Oct. 2014.
    • When combined with the acreage just acquired from Chesapeake Energy, SWN is obtaining a total of 443K net acres.
    | 1 Comment
  • Dec. 22, 2014, 3:57 PM
    • Statoil (STO -1%) says it discovered oil at one of its wildcat wells in the North Sea, estimating the size of the discovery at 6.3M-19M barrels.
    • STO drilled the well just north of another well where a discovery was made in 2011 and a few miles southwest of the Osberg South field; it is the eighth exploration well in the production license.
    • Last week, STO said it would invest $600M-plus to develop the Rutil discovery in the Gullfaks reserve area of the North Sea.
    | 1 Comment
  • Dec. 19, 2014, 8:42 AM
    • Statoil (NYSE:STO) says it had awarded a four-year drilling and well services contract for the $7B Mariner heavy oil field off the U.K. to Schlumberger (NYSE:SLB).
    • The contract also includes options for Bressay, another heavy oil field off the U.K. which is still in an evaluation phase.
    • Drilling is planned to start in 2016 with first production in 2017, and the field is set to produce for 30 years.
    | 6 Comments
  • Dec. 16, 2014, 3:26 PM
    • A consortium led by Statoil (STO +3.3%) has submitted a development plan for the Rutil discovery in the North Sea’s Gullfaks Rimfaks Valley that will extend production from the Gullfaks A platform, providing close to 80M boe.
    • The development, one of STO's fast-track projects, will cost 4.6B kroners ($610M), and production is scheduled to begin during Q1 2017.
    • The field, which is expected to operate for 15 years, is expected to produce 31K boe/day at its peak production in 2019.
    • STO has delayed several new developments as low oil prices and high costs have hurt profits and eaten into its cash, but the Gullfaks project should keep costs relatively low by using existing infrastructure and extend the lifetime of the Gullfaks A platform.
    | Comment!
  • Dec. 15, 2014, 2:42 PM
    • The European Commission gives conditional clearance for BP (BP -3.1%) to acquire jet fuel business Statoil Fuel and Retail Aviation (NYSE:STO), subject to conditions.
    • The competition authorities say BP had committed to divesting SFRA's activities at Stockholm, Malmo, Gothenburg and Copenhagen airports to remove concerns that increased concentration there would have led to price increases of fuel for airlines.
    | Comment!
  • Dec. 9, 2014, 2:57 PM
    • Chevron (CVX +0.3%) is granted rights to explore three blocks offshore New Zealand in the Pegasus and East Coast Basins southeast of North Island, one of the country’s two main islands.
    • The license, which begins in April 2015, covers more than 6.26M acres in a frontier basin with water depths from 2,600 to 9,800 ft.
    • CVX will operate the blocks and hold a 50% stake, while Statoil (STO -0.4%) will own the remaining interest.
    | 2 Comments
  • Dec. 5, 2014, 5:38 PM
    | 18 Comments
  • Dec. 5, 2014, 12:56 PM
    • Norway's economy is getting slammed by falling oil prices, and a new survey by Statistics Norway says the country's oil companies expect to cut investment spending by 14% next year, which could drag Norwegian economic growth down to 1% from an estimated 2.6% this year.
    • Norway’s oil companies are already showing the strain: Statoil (STO -1.4%) has delayed major projects and said it will seek to cut costs by $1.3B/year from 2016, and Seadrill (SDRL +0.6%) recently canceled its dividend, sending its shares into a freefall.
    • As many as 10K Norwegian and foreign oil industry workers have been laid off YTD, equivalent to more than 10% of workers employed in the sector.
    • “We’re starting to get really worried,” says the head of the union that recently threatened to strike unless the government acts to avoid job reductions in the oil industry.
    | 31 Comments
  • Dec. 5, 2014, 7:48 AM
    • Statoil (NYSE:STO) says it will suspend operations of three oil drilling rigs for longer than previously planned because of overcapacity and plunging global oil prices.
    • "When the rig contracts were signed it was challenging to ensure sufficient rig capacity. Today the activity is facing lower margins, a generally high-cost level and subsequent lower profitability," says STO's chief of procurement.
    • STO -1.7% premarket.
    | Comment!
  • Dec. 5, 2014, 4:30 AM
    • Global oil and gas exploration projects worth more than $150B are likely to be put on hold next year as plunging oil prices render them uneconomic, shows data from Oslo-based research firm Rystad Energy.
    • With rising costs of production and analysts forecasting oil to average $82.50 a barrel next year, around one third of the spending on a total of 800 oil and gas projects worth $500B, is unlikely to be approved.
    • Related tickers: CVX, TOT, STO, BP, RDS.A
    | 18 Comments
  • Dec. 2, 2014, 12:15 PM
    • Chevron (CVX +1.8%) says oil and natural gas production has begun from the Jack and St. Malo fields development project in the deepwater Gulf of Mexico, 10 years after the fields were first discovered.
    • CVX expects total production from the $7.5B project - its costliest active investment in the Americas - to ramp up to 94K bbl/day of crude and 21M cf/day of gas by 2020, with 500M boe from the two fields over their 30-year lifespan.
    • CVX has a 50% interest in the Jack field, with Statoil (NYSE:STO) and Maersk splitting the remaining half, and it owns 51% of St. Malo, with co-owners Petrobras (NYSE:PBR), Statoil, Exxon (NYSE:XOM) and Eni (NYSE:E).
    | 1 Comment
  • Dec. 1, 2014, 6:54 PM
    • Statoil (NYSE:STO) says it is postponing a decision to invest $5.7B in a new platform at the Snorre field in the Norwegian Sea that would extend the field's lifetime until 2040, needing more time to assess the project as its profitability comes under threat.
    • STO says it will decide in October next year instead of March whether to go ahead with the project, which could squeeze another 240M barrels of oil out of the field; high costs and uncertainty amid tumbling oil prices has thrown the project into doubt.
    • The company has gone into full-fledged cost-cutting mode to preserve cash for paying dividends, but some analysts believe it may be jeopardizing future production in doing so.
    | Comment!
  • Nov. 28, 2014, 10:05 AM
    • With OPEC having seemingly handed the market responsibility for removing the ~1mb/d of supply needed to achieve balance into 2015, our concern is that the lack of transparency around the price at which supply breaks and speed/scale of a non-OPEC response leaves oil equities facing a period of uncertainty," writes analyst Lucas Hermann, downgrading Statoil (STO -13.2%) to Hold.
    • On a brighter note for the oil majors, Hermann notes on a 12-month view, the sector's relative valuation is at levels last seen in 2009, maybe meaning "absolute support" for names like Shell (RDS.A -6.2%) "where we have real conviction in the solidity of distributions."
    | 4 Comments
  • Nov. 28, 2014, 9:17 AM
    | 13 Comments
  • Nov. 27, 2014, 1:51 PM
    • Arctic Securities maintains its Sell rating and lowers its price and dividend targets on Statoil (NYSE:STO).
    • Notes that “run rate” 2015 operational cash flow is currently at NOK 104B while CAPEX is currently guided at NOK 138B. Consensus dividend expectation is NOK 7.54/share, or NOK 24B. "Statoil will hence before any divestments have to borrow NOK 58B next year to bridge the funding gap."
    • "Statoil is not in a position to continue the current dividend policy." Says oil prices would need to rise to $130/bbl for 2015 and $115/bbl for 2016 to make dividend sustainable.
    • Lowers price target to NOK 115 and dividend estimate by NOK 1.75/share to NOK 5.75 and NOK 6.00 in 2015 and 2016.
    • Shares are -24.6% since Arctic first pegged STO with a Sell rating on July 23. They fell 4.75% today to NOK 142.30.
    • Previously: Crude now -7.6% on OPEC rollover
    | 7 Comments
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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.