Statoil ASA STO, on behalf of its license partners, recently announced the decision to exercise an option for the engineering, procurement, construction and installation (EPCI) of a gas module. The company and its partners will use the option to enhance gas processing capacity on the Troll B platform.
The contract is valued at about NOK 370 million. The aforesaid option is part of a front-end engineering and design (FEED) contract awarded to Aker Solutions in Jan 2016.
Aker Solutions will execute the engineering work in Bergen, while module construction will commence at the company’s yard in Egersund in 2017. The module is expected to weigh only a little more than 500 tons and is scheduled to be lifted onto Troll B in the spring of 2018. The troll is expected to become operational in the third quarter of 2018.
The gas module will help in recovering as much of the remaining resources as possible toward the tale end of production. From the time the module is commissioned in the autumn of 2018 until Troll B is shut down in 2025 it will escalate recovery by about 4.7 million barrels of oil.
Statoil is a Norway-based major international integrated oil and gas company. The company operates through four segments – Exploration & Production Norway, Natural Gas, International Exploration and Production, and Manufacturing & Marketing. Statoil is one of the leading suppliers of natural gas in the European market.
Statoil’s endeavors to improve recovery of resources in mature fields are commendable. The company has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the Norwegian Continental Shelf (NCS). We believe that Statoil is well positioned to sustain its steady production growth over the next few years on the back of its large resource base at NCS.
Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Enbridge Inc ENB, NGL Energy Partners LP NGL and Murphy USA Inc. MUSA. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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