Mon, Jan. 5, 2:21 PM
- Statoil (STO -5.2%) says it has started production of natural gas and condensate from the Valemon field in North Sea and expects to recover up to 192M boe over the field's lifetime.
- STO says the high pressure and high temperature field will cost ~$3B once all production wells are in operation.
- STO owns a 53.7% stake in Valemon.
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.
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.
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.
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).
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."
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
Oct. 28, 2014, 3:59 PM
- Total (TOT +2.9%) earlier today said it agreed to sell a minority stake in the Gina Krog field near Norway and three additional North Sea fields to PGNiG Upstream International for $317M.
- The deal includes an 8% ownership stake in Gina Krog, now under development and scheduled for a 2017 production start; through a subsidiary, TOT will retain a 30% interest in the project expected to produce ~60K barrels of oil and 9M cm/day of natural gas per day, while Statoil (NYSE:STO) is the majority partner with a 58.7% interest.
- Also included are interests in three minor fields in the Norwegian North Sea.
Oct. 21, 2014, 6:58 AM
- Statoil (NYSE:STO) says it has found up to 80M barrels of recoverable oil in a prospect first drilled more than two decades ago and abandoned because the initial discovery was too small.
- The find is located near the company's operating Grane field in the North Sea, and is well above the 6M barrels estimated when the prospect was explored by Norsk Hydro in 1992.
- Statoil owns 57% of the production license for the new discovery. State holding firm Petoro has 30% and ExxonMobil (NYSE:XOM) has 13%.
- STO +2.2% premarket
Oct. 16, 2014, 9:13 AM
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. 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.
Jul. 25, 2014, 12:30 PM
- Statoil (STO -3.2%) says it took a writedown of NOK4.3B ($694M) on its assets in the Bakken, Marcellus and Eagle Ford plays, as a lack of pipeline capacity has hindered the company from selling its output to regions where it can fetch a higher price.
- CEO Helge Lund says it had taken longer than expected for pipelines to be built to take gas from STO's fields to higher paying markets; in the meantime, STO has to sell most of its gas from Bakken and the southern Marcellus, where gas prices are low due to excess supply.
- The writedown strengthens the perception that STO overpaid for the assets in first place.
Jul. 25, 2014, 8:18 AM
- Statoil (NYSE:STO) -2.5% premarket after Q2 earnings before interest and taxes totaled NOK32B, missing analyst expectations of NOK37.7B, and oil and gas production fell 9% Y/Y.
- STO gained NOK3.6N from farming down in the Shah Deniz field in Azerbaijan and the South Caucasus Pipeline, but the gain was offset by NOK4.3B in impairments in its U.S. onshore business.
- Q2 production fell to 1.79M boe/day on the natural decline of mature fields, asset sales, redetermination and lower gas sales as prices in Europe decreased.
- Says programs to reduce cost and improve capital efficiency are on track, with staff cuts of ~1,000 already implemented.
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, and North America.
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