(STO) Statoil ASA Invests for More Oil

March 17th, 2010

Statoil ASA (STO), a Norwegian state-owned integrated oil and gas company, said that it will invest 20 billion kroner ($3.41 billion) for further development of Norway’s largest gas field, Troll. The development includes more wells and pipelines.

The company also said that the main purpose of this investment is to increase oil production from this field. Management is targeting an oil recovery rate of 50% by 2020 from the current 39%.

Troll is a natural gas and oil field in the Norwegian sector of the North Sea. Though this is primarily a natural gas field, it also possesses significant quantities of oil.

Statoil is the operator of the block and holds a 30.6% interest. Other partners are Norway’s state-owned Petoro (with a 56% interest), Royal Dutch Shell ((RDSA), 8.1%), France’s Total ((TOT), 3.7%) and ConocoPhillips ((COP), 1.6%).

Though Statoil is the second largest supplier of natural gas in Europe, management has taken a conservative approach for gas this year, given the uncertainty regarding European industrial gas demand.

Despite maintaining a positive long-term view on the future competitiveness of gas, Statoil is wary of an uncertain outlook in the short term. Keeping this in mind, the company has focused on the strategy of delivering value through more oil. This investment for oil is a case in point. Price of Statoil ADRs rose nearly 2% to $23.20 at Tuesday’s closing.

Zacks Investment Research

More on this topic (What's this?)
2012 Oil Price Outlook: How to Profit From $150 Oil (Money Morning, 1/6/12)
Congress’ Next Bad Idea Would Destroy the Shale Boom (Money Morning, 1/27/12)
The Five Factors Moving Oil Prices This Year (Investment U, 1/10/12)
Oil Exploration Companies (Wealth Daily, 1/24/12)
Read more on STATOIL ASA, Oil at Wikinvest

Related Posts:

  1. (STO) Statoil ASA to Spin off Retail ArmThe Board of Directors of Norwegian oil major Statoil ASA (STO) has decided to spin...
  2. (STO) Statoil ASA Invests in Iraqi West Qurna Phase 2 Oil FieldStatoil ASA (STO), the Norwegian oil major, has decided to invest $1.4 billion in the...
  3. (STO) Statoil ASA Enters Agreement Raising Stake in Iraqi Oil FieldNorwegian oil major Statoil ASA (STO) has increased its ownership stake in the Iraqi super...
  4. (STO) Statoil ASA Gaining Impetus at SnorreStatoil ASA (STO) plans to achieve its goal of stable NCS (Norwegian Continental Shelf) volumes...
  5. (STO) Statoil ASA – Bull of the DayStatoil ASA (STO) is gaining momentum with the start-up of operations on several new oil...
  6. (STO) Statoil ASA Slips, but Volumes upStatoil ASA (STO) reported its third quarter results of 38 cents per share, compared to...


Search Posts by Tag: | | | | | | | | Basic Materials | Oil & Gas Drilling & Exploration

RSS Feeds by Tag: ConocoPhillips | COP | RDSA | Royal Dutch Shell Plc | StatoilHydro ASA | STO | TOT | Total SA | Basic Materials | Oil & Gas Drilling & Exploration |

Other Posts by: | RSS Feed for this author