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Statoil's PDO of Njord and Bauge Gets Green Signal

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Statoil ASA and its partners have received approval for the plans for development and operation (PDO) of Njord and Bauge in the Norwegian Sea.

The Njord A platform and the Njord Bravo floating storage and offloading vessel (FSO) will be developed to retrieve the residual resources in the Njord and Hyme fields. Bauge is a new field development to be attached to the Njord A platform.

The residual resources on the Njord and Hyme field are estimated at 175 million barrels of oil equivalent. This is equal to the reserves produced from the Njord field since the first oil yield in 1997. Additionally, 73 million barrels of oil equivalent will be produced from Bauge.

Plans for the development and operation of the fields were submitted to Norwegian authorities on Mar 27, 2017 on behalf of the partnerships in the Njord, Hyme and Bauge licences.

The original PDO for the Njord field was submitted over two decades ago. The field is still expected to yield for another twenty years and the partnership has agreed to upgrade and reuse both the Njord A platform and the Njord Bravo FSO.

The Bauge field development concept comprises of one subsea template, two oil producers and one water inject. In 2018, the Njord partners will award the contract for upgrading the Njord Bravo FSO. First oil yield is slated for the end of 2020.

Statoil’s price chart is unimpressive. Shares of the company lost 4.1% in the last three months, while the Zacks categorized Oil & Gas – International Integrated industry registered a decline of 1.7% in the same time span.



Statoil currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include SunCoke Energy, Inc. (SXC - Free Report) , Enbridge Energy, L.P. and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy deivered a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the trailing four quarters with an average negative earnings surprise of 35.78%.

Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.

Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average negative earnings surprise of 275.46%.

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