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Statoil Cuts Johan Sverdrup Oilfield Development Cost Again
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Norwegian oil and gas company Statoil ASA recently announced a reduction in its estimated cost for developing Norway's Johan Sverdrup oilfield. Notably, this is the third time that the company has lowered its cost estimates. The company also awarded contracts for the final construction phase.
The company had predicted the cost to be around NOK220 billion at an early stage of the development. However, the estimates were lowered to a range of NOK 140–NOK170 billion in during Aug 2016. The overall development cost of the oilfield is now expected in the range of NOK137–NOK152 billion. The oilfield, which is the largest North Sea discovery in decades, is anticipated to have a peak production level of 660,000 barrels of oil per day.
German supplier Siemens AG (SIEGY - Free Report) and Norwegian engineering firms Kvaerner and Aker Solutions have won the contracts for the second construction phase of development. Statoil is no likely to announce its formal investment decision until the second half of 2018.
The other partners in the Johan Sverdrup oilfield development are Lundin Petroleum, A.P. Moeller-Maersk, and Aker BP.
Statoil is the operator of the Johan Sverdrup oilfield development. The other partners are Lundin Petroleum, A.P. Moeller-Maersk, and Aker BP.
About the Company
Statoil, an integrated oil and gas company, is one of the world's biggest sellers of crude oil. It is also a major supplier of natural gas in the European market and has substantial industrial operations. The company is one of the world's most environmentally-efficient producers and transporters of oil and gas. It is headquartered in Stavanger, Norway.
Price Performance
Statoil’s price performance for the last six months is impressive. During this period, Statoil’s shares have gained 11.04% while the Zacks categorized Oil & Gas-Intl Integrated industry registered an increase of 6.56%.
Zacks Rank and Stocks to Consider
Statoil presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Alliance Holdings GP, L.P. and Abraxas Petroleum Corporation (AXAS - Free Report) . Alliance Holdings sports a Zacks Rank #1 (Strong Buy), while Abraxas Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Holdings is expected to grow 2017 sales by 15.67% year over year. The partnership had an average positive earnings surprise of 5.50% in the last four quarters.
Abraxas Petroleum estimates year-over-year sales growth for the current year of 135.26%. In fourth-quarter 2016, the company had a positive earnings surprise of 200%.
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Statoil Cuts Johan Sverdrup Oilfield Development Cost Again
Norwegian oil and gas company Statoil ASA recently announced a reduction in its estimated cost for developing Norway's Johan Sverdrup oilfield. Notably, this is the third time that the company has lowered its cost estimates. The company also awarded contracts for the final construction phase.
The company had predicted the cost to be around NOK220 billion at an early stage of the development. However, the estimates were lowered to a range of NOK 140–NOK170 billion in during Aug 2016. The overall development cost of the oilfield is now expected in the range of NOK137–NOK152 billion. The oilfield, which is the largest North Sea discovery in decades, is anticipated to have a peak production level of 660,000 barrels of oil per day.
German supplier Siemens AG (SIEGY - Free Report) and Norwegian engineering firms Kvaerner and Aker Solutions have won the contracts for the second construction phase of development. Statoil is no likely to announce its formal investment decision until the second half of 2018.
The other partners in the Johan Sverdrup oilfield development are Lundin Petroleum, A.P. Moeller-Maersk, and Aker BP.
Statoil is the operator of the Johan Sverdrup oilfield development. The other partners are Lundin Petroleum, A.P. Moeller-Maersk, and Aker BP.
About the Company
Statoil, an integrated oil and gas company, is one of the world's biggest sellers of crude oil. It is also a major supplier of natural gas in the European market and has substantial industrial operations. The company is one of the world's most environmentally-efficient producers and transporters of oil and gas. It is headquartered in Stavanger, Norway.
Price Performance
Statoil’s price performance for the last six months is impressive. During this period, Statoil’s shares have gained 11.04% while the Zacks categorized Oil & Gas-Intl Integrated industry registered an increase of 6.56%.
Zacks Rank and Stocks to Consider
Statoil presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Alliance Holdings GP, L.P. and Abraxas Petroleum Corporation (AXAS - Free Report) . Alliance Holdings sports a Zacks Rank #1 (Strong Buy), while Abraxas Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Holdings is expected to grow 2017 sales by 15.67% year over year. The partnership had an average positive earnings surprise of 5.50% in the last four quarters.
Abraxas Petroleum estimates year-over-year sales growth for the current year of 135.26%. In fourth-quarter 2016, the company had a positive earnings surprise of 200%.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>