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Norwegian energy firm Statoil ASA’s (STO - Analyst Report) stock price rose 1.8% for three consecutive sessions on the announcement that it has awarded Siemens plc with two contracts. However, it surprised with a 1.4% drop in the fourth trading session.

The contracts, valued at about GBP 516 million, relate to the engineering, supply, assembly, commissioning and service of 67 wind turbine generators for the Dudgeon Offshore Wind Farm project.

The scope of the wind turbine generator (WTG) supply contract includes engineering, procurement, assembly and offshore commissioning. Each turbine (6.0 MW) comprises a tower section, a nacelle and three separate rotor blades (154-meter rotor diameter).

The engineering work, which will contribute to design development of the project’s foundation and electrical infrastructure, is slated to start this month. The first batch of turbines for load out and installation is expected to be ready by Jan 2017.

The service contract consists of operations and maintenance of WTGs in the first two years after installation. Thereafter, for the next three years, Siemens plc will supply Dudgeon with technicians and other services agreed upon.

The execution of the Dudgeon Offshore Wind Farm project is subject to the final investment decision in third quarter 2014. The wind farm will offer renewable energy to about 400,000 households in the UK market once it gets functional.

The Dudgeon offshore wind farm is owned by two Norwegian companies, Statoil and Statkraft, holding 70% and 30%, respectively. The latest project follows a successful partnership in developing the Sheringham Shoal Offshore Wind Farm off the coast of North Norfolk.

Statoil carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include NGL Energy Partners L.P. (NGL - Snapshot Report), Cheniere Energy Partners L.P. (CQP) and Pembina Pipeline Corporation (PBA - Snapshot Report). All these stocks hold a Zacks Rank #1 (Strong Buy).

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