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Statoil (STO) Submits PDO for Snefrid Nord Gas Discovery

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Statoil ASA along with its partners has agreed to develop the Snefrid Nord gas discovery in the vicinity of the Aasta Hansteen field in the Norwegian Sea.

Scheduled for commissioning in late 2019, the discovery will be tied back to Aasta Hansteen. The authorities received a supplement to the Plan for Development and Operation (PDO) of the Aasta Hansteen field specifying the Snefrid Nord development.

The supplier of subsea equipment for the Aasta Hansteen development, Aker Solutions, will provide the single-slot subsea template, a suction anchor and umbilicals for the Snefrid Nord development.

The subsea template and suction anchor fastened to the seabed will be supplied at Sandnessjoen. Aker Solutions will deliver the umbilicals in Moss.

Apart from performing installations, Subsea 7 will provide flowlines and spools. They are also the supplier for Aasta Hansteen. Statoil expects to capture synergies by using the same supplier for both projects.

All contracts are subject to MPE’s (Ministry of Petroleum and Energy) sanction of the addition to the Aasta Hansteen PDO.

Discovered in 2015, Snefrid Nord is estimated to hold recoverable reserves of about five billion cubic metres of gas. The development concept comprises one well in a single-slot subsea template. This will be tied back to the Aasta Hansteen platform through the Luva template six kilometers away.  

Snefrid Nord is expected to yield about four million cubic meters of gas per day in the plateau phase, the planned productive life being 5-6 years. The capital expenditures for the Snefrid Nord development are estimated at about NOK 1.2 billion.

Statoil is the operator of Snefrid Nord, holding an interest of 51%. Other partners include Wintershall Norge AS, OMV Norge AS and ConocoPhillips holding 24%, 15% and 10%, respectively.

Shares of the company have lost 5.4% in the last three months compared with the Zacks categorized Oil & Gas – International Integrated industry’s decline of 4.5% in the same time span.


Statoil currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same space are Delek US Holdings, Inc. (DK - Free Report) , Cheniere Energy Inc (LNG - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US Holdings delivered a positive earnings surprise of 148.48% in the preceding quarter. The company beat estimates in each of the four trailing quarters with an average positive earnings surprise of 60.68%.

Cheniere Energy delivered a positive earnings surprise of 162.16% in the preceding quarter. The company beat estimates in one of the three trailing quarters with an average positive earnings surprise of 14%.

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

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