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Statoil and Kraemer Maritime Sign NCS Supply Agreement

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Statoil ASA recently inked a contract with Kraemer Maritime. According to the deal, Kraemer will be supplying provisions for the installation operations of the former on the Norwegian Continental Shelf (NCS).

Per the accord, Kraemer is expected to provide food, cleaning products, kiosk merchandise, disposables and other associated products and services. It is a four-year contract with an extension option for two to three years. The deal, which will is scheduled on Jan 1, 2017, is valued at $28 million per year.  

Separately, Statoil announced the commencement of drilling for the world's hottest geothermal well in Iceland. The operation is aimed to extract high temperature water from deep reservoirs for producing power. In details, the company intends to deepen the geothermal well by drilling to a depth of 5 kilometers and thereafter bring super-heated steam at 400 to 500 degrees Celsius to the surface of the land. The super-heated steam will then be utilized for generating electricity in steam turbines.  

Statoil is a Norway-based major international integrated oil and gas company. We commend the energy integrated player’s endeavors to improve recovery of resources in mature fields. The company has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the NCS. We believe that Statoil is well positioned to sustain its steady production growth over the next few years on the back of its large resource base at NCS.

However, the weakness in oil prices is still dragging the company’s upstream performance. Although the commodity recovered from the mid-February lows, it is still way below the level in mid-2014. This remains a huge impediment for profitability.

Currently, Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include Matador Resources Company (MTDR - Free Report) , China Petroleum & Chemical Corp. and NGL Energy Partners LP (NGL - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

STATOIL ASA-ADR Price

 

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