Statoil To Plough In Over $642M In Askeladd Field Project
Zacks Investment Research | Mar 13, 2018 10:33PM ET
Statoil (OL:STL) ASA (NYSE:STO) recently announced its decision to invest more than NOK 5 billion or $642 million for development purposes of its Askeladd field, located in the Barents Sea. The produced gas and condensate will be provided from the Askeladd field development, the second phase of the multi-phased Snøhvit development, to the liquefied natural gas (LNG) plant at Melkøya in Hammerfest, one of the world’s most energy-efficient LNG facilities.
Partners in the Field
Statoil is the operator of the Snøhvit development and has a stake of 36.79%. It has Petoro, TOTAL S.A. (NYSE:TOT) , Neptune Energy Norge and DEA Norge as partners in the development owning 30%, 18.40%, 12% and 2.81% stakes, respectively.
About the Project
Two million cubic meters of condensate and 21 billion cubic meters of gas will be supplied from the Askeladd field to the Melkøya LNG plant. Production from the field is expected to begin by 2020-end. The development plan so far includes three wells through two new subsea templates. Enough space is there in the field so that more wells can be dug at the site later. The company is also expected to install an infrastructure that will link the Askeladd development, located south west of Snøhvit facility, to the existing Snøhvit infrastructure.
Importance of Askeladd
Statoil’s senior vice president for project development, Torger Rød said, "Askeladd will help maintain a plateau production rate at the Hammerfest LNG plant until 2023 and is a profitable investment that will help secure jobs and ripple effects in the region.” Moreover, the LNG plant needs profitable gas volumes in the coming years till 2050, which will be supported by the new development. In early 2018, Aker Solutions received an engineering, procurement and construction (EPC) contract for the Askeladd field. The Snøhvit development, Barents Sea’s first petroleum development, already receives supply from the Snøhvit and Albatross fields, which came online in 2007.
About the Company
Statoil is a Norway-based major international integrated oil and gas company. The company has operations in all major hydrocarbon-producing regions of the world. It has an upstream focus on the Norwegian Continental Shelf. Due to strong offshore exposure, Statoil is a leader in subsea production. The company operates in four segments — Development and Production Norway, Development and Production International, Marketing, Midstream and Processing, as well as Other.
Price Performance
Statoil has gained 36.8% in the last year compared with 9.9% growth of its Zacks Investment Research
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