Oct. 16, 2014, 9:13 AM
Oct. 15, 2014, 4:54 PM
- Sliding global oil prices puts projects under heavy pressure, executives at Chevron (NYSE:CVX) and Statoil (NYSE:STO) tell an oil industry conference today in Venezuela.
- The current scenario places projects in Venezuela "under big pressure," says CVX Latin America Managing Director Kelly Hartshorn; CVX and state oil company PDVSA operate the Petroboscan heavy crude joint venture in the western part of the country.
- Statoil Venezuela official Luisa Cipollitti says at the conference that mega-projects globally are under threat, and estimates that more than half the world's biggest 163 oil projects require a $120 Brent price for crude.
Oct. 15, 2014, 4:37 AM
- Statoil(NYSE:STO) Chief Executive Helge Lund has left the Norwegian energy company after ten years in the post to take the top position at U.K. peer BG Group (OTCPK:BRGXF), which has been without a CEO since March.
- BG Chairman Andrew Gould hailed Lund's track record. "He has built a world-class exploration and production portfolio at Statoil," Gould said. During his tenure, Statoil's market capitalization increased to over over 500B Norwegian kroner ($85B) from 189B kroner.
- Lund will start his new position in March.
- Statoil has appointed company veteran Eldar Sætre as acting CEO with immediate effect.
- Statoil's shares are -2.6% in Oslo, while BG Group is +1.2% in London.
- Statoil PR, BG Group PR
Oct. 14, 2014, 7:42 AM
- Statoil (NYSE:STO) says it has discovered 1.2T cf of natural gas, or 216M boe, in the Giligiliani-1 well of the Block 2 area offshore Tanzania.
- STO is the operator of the license, on behalf of the Tanzania Petroleum Development Corp., with a 65% working interest, while partner Exxon Mobil (NYSE:XOM) holds 35%.
- It is the joint venture's seventh discovery in the Block 2 area.
Oct. 13, 2014, 3:50 AM
- Norway's Statoil (NYSE:STO) has sold its remaining 15.5% holding in the Shah Deniz gas project in Azerbaijan and other assets to Malaysia's Petronas (OTC:PNADF) for $2.25B.
- The transaction also includes stakes in a South Caucasus pipeline company and two other firms.
- The deal is the latest in a series of sales by Statoil and other major oil companies, and since 2010, the Norwegian firm has offloaded $20B worth of assets.
- "(The) Shah Deniz divestment is yet another sign of credible strategy, (and is) positive," says Swedbank analyst Teodor Sveen Nilsen.
- The Shah Deniz field is operated by BP (NYSE:BP), with other partners including Lukoil. (PR)
Oct. 10, 2014, 9:53 AM
- Statoil (STO -1.3%) is preparing to drill a final exploration well in the Barents Sea this year after disappointing results in its efforts to unlock Arctic resources.
- STO will move the Transocean Spitsbergen rig to the Saturn prospect after its Isfjell well resulted in a relatively small gas discovery; Isfjell is estimated to hold 1B-2B cubic meters of natural gas.
- Most Barents Sea gas finds are considered uncommercial as the area lacks infrastructure to bring the fuel to market.
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Oct. 9, 2014, 9:56 AM
- Global oil producers open broadly lower as oil prices continue to slide on concerns about high supplies and weak global economic growth (also): RDS.A -2.7%, STO -2.7%, TOT -2.5%, HES -2%, APC -1.7%, BP -1.6%, CVX -1.5%, COP -1%, XOM -0.8%.
- Brent prices slump to $91/bbl, approaching two-year intraday lows, and Nymex crude tumbles to $86.67/bbl to an 18-month intraday low.
- The EIA said yesterday that U.S. crude supplies rose by a more than expected 5% last week, while gasoline and distillate inventories unexpectedly grew as well.
- Barclays is cutting its oil price forecasts: It now sees U.S. crude averaging $85/bbl in Q4 and $89 in 2015, down from previous estimates of $98 in Q4 and $100 next year, and Brent crude averaging $93/bbl in Q4 and $96 in 2015, down from a respective $106 and $107 previously.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Sep. 30, 2014, 3:07 PM
- Royal Dutch Shell (RDS.A, RDS.B) and Statoil (NYSE:STO) say they won blocks in an Algerian oil and gas bidding round, the first since a deadly terrorist attack at a gas plant in Jan. 2013.
- A consortium between Shell, Algeria's state-owned Sonatrach and Spain's Repsol (OTCQX:REPYY, OTCPK:REPYF) - the operator - won an oil and gas exploration license, while STO was awarded another block, also in partnership with Shell and Sonatrach.
- Algeria has struggled to attract foreign investment to its oil sector in recent years amid security fears; a French hostage was killed in the country just last week.
Sep. 29, 2014, 11:19 AM
- West Virginia is ready to let companies drill for oil and natural gas deep beneath 14 miles of the Ohio River, as state officials opened bids Friday as it seeks a substantial revenue stream at a time of tight budgets.
- Environmentalists re alarmed at the proposal, since it would allow drilling a mile beneath a river that provides drinking water to millions of people.
- Magnum Hunter (NYSE:MHR), Noble Energy (NYSE:NBL), Gastar Exploration (NYSEMKT:GST) and Statoil (NYSE:STO) submitted bids with 20% royalty rates; state officials plan to pick winners in the next week or two.
Sep. 26, 2014, 8:53 AM| 2 Comments
Sep. 25, 2014, 5:38 PM
- Statoil (NYSE:STO) says it is postponing work on its Corner field project in the Canadian oil sands by at least three years, citing rising costs.
- STO says the decision does not affect its Leismer operations, with capacity of 20K bbl/day.
- Alberta oil sands producers have struggled with rising costs because of labor shortages and difficulties in getting equipment.
Sep. 24, 2014, 8:55 AM
- Masdar Abu Dhabi Future Energy agrees to buy half of Statoil’s (NYSE:STO) stake in the 402 MW Dudgeon wind project off the coast of eastern England.
- The purchase will leave Masdar with a 35% stake in the project valued at £525M ($860M); STO, which will operate the plant, retains a 35% stake.
- Britain is the biggest offshore wind market, with more installed turbines at sea than the rest of the world put together.
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.
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.
STO vs. ETF Alternatives
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.
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