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Norwegian oil giant Statoil ASA (STO - Analyst Report) has halted operations on its Troll C platform in the North Sea.

The stoppage of production on the platform on Aug 17 followed after a scheduled inspection program discovered corrosion damage on a tank in the glycol system, an auxiliary system for treating gas linked to the oil export system.

The damaged pipe will likely be replaced and this requires shutdown for a week.

Troll C, which has an equity production of about 58,000 barrels of oil per day, also exports 8 million cubic meters of gas. Moreover, about 34,000 barrels of oil and 2 million cubic meters of gas are carried from the Fram field through the Troll C platform.

Troll field, which has three platforms, is one of Norway's key oil and gas fields. In 2011, it produced 568,450 barrels of oil equivalent a day, or about 15% of Norway's total production of 3.8 million barrels a day.

Statoil holds 30.58% interest in Troll C and 45% in Fram. The other partners in Troll are Petoro, Norske Shell, Total SA (TOT - Analyst Report) and ConocoPhillips (COP - Analyst Report), which have 56%, 8.1%. 3.69% and 1.62% stake, respectively. Other partners in Fram are Idemitsu Petroleum Norge, GDF Suez E&P Norge, and ExxonMobil Corp. (XOM - Analyst Report) holding 15%, 15% and 25% interest, respectively.

Statoil has operations in all major hydrocarbon–producing regions of the world. It has an upstream focus on the Norwegian Continental Shelf. The company boasts a strong balance sheet, as it has exited low-profit generating operations and broadened its international asset base. The addition of new projects is expected to produce a CAGR growth rate of 2%–3% annually during the 2014 to 2016 period.

Currently, Statoil carries a Zacks Rank #3 (Hold).

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