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Statoil ASA (STO)

  • Sep. 22, 2014, 6:12 PM
    • Six global energy companies - including Southwestern Energy (NYSE:SWN), Statoil (NYSE:STO), Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) - reportedly have agreed to work to reduce emissions of methane in partnership with more than a dozen national governments through a new United Nations framework.
    • Officials from the UN and governments that back curbing emissions are increasingly looking to push companies and emerging economies to take voluntary steps to reduce emissions, since the international community has failed to adopt strict binding regulations.
  • Sep. 22, 2014, 5:42 PM
    • Norway's government says it will outline plans next spring regarding the electrification of the $20B Johan Sverdrup oil field in the North Sea.
    • But it does not say what it would propose about the timetable for providing power from land to the field, after the Norwegian oil directorate agreed with joint operator Statoil (NYSE:STO) in saying it would not be possible to provide power from land to the giant field before it starts producing oil in 2019 without significantly delaying its development.
    • The project was thrown in doubt earlier this year when opposition political parties called for the use of electricity from shore rather than generating it on the platforms with natural gas or diesel.
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  • Sep. 17, 2014, 9:49 AM
    • Statoil (STO -0.4%) says overcapacity in its rig portfolio will cause it to temporarily suspend the COSL Pioneer rig in Q4.
    • The rig is currently carrying out an assignment on the Visund field, where it is scheduled to complete work at the end of this month.
    • STO says the move will have no impact on its production targets or planned exploration activity on the Norwegian shelf, where STO still expects to drill 20-25 exploration wells in 2014.
    | 1 Comment
  • Sep. 12, 2014, 4:54 AM
    • Statoil (NYSE:STO) is selling stakes in a number of oil and gas fields and a pipeline project to Germany's Wintershall (OTCQX:BASFY) for $1.25B in cash, plus another $50M if certain goals are met.
    • "This transaction focuses our Norwegian continental shelf portfolio and further improves our capacity to invest in core areas," says Statoil President Arne Sigve Nylund.
    • Statoil has divested more than $18B in assets since 2010, and plans to invest $20B annually between 2014 and 2016.
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  • Sep. 10, 2014, 5:56 PM
    • Statoil (NYSE:STO) says it will expand the use of technology that allows it to power equipment with natural gas that it otherwise would burn off, in an effort to address an ongoing challenge facing producers in the Bakken.
    • When Bakken producers extract crude oil from the ground, they also get natural gas, but they often flare the gas instead of trying to ship it or sell it because gas prices are low and transportation infrastructure in the area is lacking.
    • STO says the expanded program will enable it to capture 3M-5M cf/day of natural gas.
    • STo is working with GE and others in developing the technology, which has been tested in North Dakota for eight months; the companies say the expansion marks the first step toward wider commercial adoption across the energy industry.
  • Sep. 10, 2014, 5:32 PM
    • The U.S. and EU are said to be close to imposing the toughest round of energy sanctions yet, which would hit both Russia's energy industry and companies such as Exxon Mobil (NYSE:XOM) that are working with Rosneft (OTC:RNFTF) and other state-controlled companies.
    • The sanctions reportedly would ban U.S. and European companies from working with Russia on future oil exploration in the Russian Arctic, deep seas and shale rock formations; the move would go beyond previously reported proposals to widen curbs on technologies for the oil industry.
    • The sanctions would not affect current oil production but could imperil the future of existing partnerships, including a deal between XOM and Rosneft to drill in the Arctic Ocean; other vulnerable oil majors would include BP, Shell (RDS.A, RDS.B), Statoil (NYSE:STO) and Total (NYSE:TOT).
  • Sep. 8, 2014, 2:17 PM
    • Statoil's (STO -1.9%) first well off Norway with Russia's Rosneft (OTC:RNFTF) may be delayed following a Greenpeace complaint that says the well is too close to the Bear Island nature reserve and the polar ice cap.
    • Drilling can’t start on the Statoil-operated Pingvin prospect in the Barents Sea until the appeal has been handled this week by Norway's environment regulator.
    • The complaint comes as Rosneft, which owns a 20% stake in license 713 where Pingvin is located, faces sanctions due to Russia’s involvement in the Ukraine conflict.
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  • Sep. 5, 2014, 4:42 PM
    • Statoil (NYSE:STO) reported late Thursday that it has signed farm-in agreements with Repsol (OTCPK:REPYF, OTCQX:REPYY) to acquire stakes in two licenses offshore Colombia - a 10% share in the Tayrona license and 20% in the Guajira Offshore-1 license.
    • Petrobras (NYSE:PBR) operates Tayrona with a 40% stake, and Repsol retains 20% of the license after its farm-down to STO; the remaining 30% is held by Ecopetrol (NYSE:EC).
    • Repsol operates Guajira Offshore-1 and retains 30%, with EC holding the remaining 50%.
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  • Sep. 4, 2014, 4:56 PM
    • Tanzania's government says it plans to review all contracts signed with investors in its natural gas and mining sectors, in a drive to tighten control and raise greater revenue from its expanding natural resource industry.
    • The move likely will test relations between the government and multinational corporations such as Exxon Mobil (NYSE:XOM), Statoil (NYSE:STO), Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY), which are implementing multi-billion dollar projects to exploit gas fields in the region.
    • E&P companies have discovered nearly 50T cf of natural gas in Tanzania and more than 180T cf in neighboring Mozambique.
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  • Sep. 4, 2014, 7:45 AM
    • Statoil (NYSE:STO) announces disappointing results as it completes drilling two wells, with the Martin prospect in the Gulf of Mexico not considered a commercial discovery, while the Dilolo well in the Kwanza basin in Angola failed to encounter hydrocarbons.
    • The Martin well has been drilled efficiently and plug and abandonment operations are now ongoing, while the Dilolo-1 exploration well in Block 39 offshore Angola provided a valuable calibration for other prospects in the area.
  • Sep. 3, 2014, 7:56 AM
    • Norway's oil and gas investments are seen falling 13.9% Y/Y in 2015, more than earlier forecasts, Reuters reports; companies are now expected to invest 185B Norwegian crowns ($29.8B) in the sector, vs. 215B crowns in 2014.
    • Norway has been one of the best-performing economies through Europe's slowdown, but it has struggled in recent quarters due to weak exports and consumption; the country's fortunes could sour further as its energy firms, which account for nearly 25% of the economy, cancel or delay some of their biggest projects.
    • Related: RDS.A, RDS.B, STO.
  • Aug. 27, 2014, 2:13 PM
    • Statoil (STO +0.7%) says its Aasta Hansteen gas development in the northern Norwegian Sea is on schedule for drilling in H1 2016 and production start-up in Q3 2017.
    • STO considers development of Aasta Hansteen and its Polarled pipeline as the most complex industrial project in Europe, as the company is taking Norwegian gas infrastructure northward into the Arctic Circle for the first time.
    • STO expects to invest ~NOK57B on the project, which will include the largest SPAR platform in the world, which is expected to set a new depth record of 1,300 meters for a field development and pipeline on the Norwegian continental shelf.
    • Aasta Hansteen is estimated to hold ~1.66T cu. ft. of natural gas.
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  • Aug. 27, 2014, 9:19 AM
    • BG Group (OTCPK:BRGXF, OTCQX:BRGYY) says it has produced higher than expected flows of gas from a test well off the coast of Tanzania, boosting the financial viability of its planned liquefied natural gas export terminal in the country.
    • Test flows at BG's Mzia-3 well off the southern part of Tanzania's coast reached a maximum rate of 101M cf/day, nearly double the flow rate measured at Mzia-2 last year.
    • BG and partners Statoil (NYSE:STO), Exxon Mobil (NYSE:XOM) and Ophir Energy plan to build a two-train LNG export terminal, with operations expected to start in the early 2020s and a final investment decision set for 2016.
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  • Aug. 26, 2014, 12:44 PM
    • Statoil (STO +0.6%) says its activity level is at its highest ever, with 100-plus projects in planning or execution, and says it aims to maintain its current oil and gas production in coming years.
    • STO is heading 61 projects in the execution phase, with capex totaling 205B kroner ($33.2B), a bill that will be shared with its project partners; the portfolio also includes eight mega projects, defined as exceeding a cost of 12B kroner or being highly complicated.
    • STO's 2013 oil and gas output totaled 1.94M bbl/day, up 5.5% from 2007, but targets flat output in Norway in the coming years as mature giant fields are fading, so it plans to make up the difference by increasing its international output.
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  • Aug. 26, 2014, 11:57 AM
    • Norway is open to Rosneft (OTC:RNFTF) deepening its involvement in the country, as western Europe’s largest oil and natural gas producer seeks to counter a slowdown in investments and output.
    • Norway is struggling to sustain oil production which has been cut by more than half since its 2000 peak as producers including Statoil (NYSE:STO) and Royal Dutch Shell (RDS.A, RDS.B) have postponed projects and cut planned investments.
    • Rosneft in partnership with Statoil is currently drilling its first well in Norway's Barents Sea, has signed deals to explore blocks in Russia’s Barents Sea and the Sea of Okhotsk, and plans pilot projects for heavy oil in Siberia and shale oil in the Samara region.
    • Norway's energy minister says European sanctions against Russia will not be relevant for foreign companies’ participation in petroleum activities or licensing rounds offshore Norway.
  • Aug. 25, 2014, 5:51 PM
    • Statoil (NYSE:STO) says it will only slightly increase its U.S. shale oil and gas production in the near term due to reduced spending, well below a potential for a 50% surge.
    • STO, which produces ~10% of its oil and gas from its U.S. shale operations in the Bakken, Eagle Ford and Marcellus formations, also is cutting back investments in the area, as shale projects are competing for capital within the company, said its head of U.S. onshore activities.
    • STO abandoned its 2020 production target earlier this year and cut its capex budget, saying it needs to save cash and return more to shareholders after a decade of ramping up spending.
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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, and North America.