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Statoil Awards Drilling & Service Contracts for 2 Cat J Rigs
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Statoil ASA recently announced its decision to award contracts for integrated drilling and well services on the Cat J rigs Askepott and Askeladden to Baker Hughes Inc. and Schlumberger Ltd. (SLB - Free Report) .
The rigs will be utilized to carry out operations at Oseberg and the Gullfaks. The contracts are for a four-year period but have the provision for two two-year extensions. The contracts involve cementing and pumping, completion, drilling and completion fluids as well as integrated drilling services.
Currently, Schlumberger is providing integrated drilling and well services at Mariner, while Baker Hughes at Johan Sverdrup. Both these companies, which have their Norwegian head offices in Stavanger, are important suppliers for Statoil across the drilling and well disciplines.
Oseberg Cat J will support the continuous development of the Oseberg area. The rig will drill wells for the Vestflanken 2 project from autumn 2017. Subsequently, the rig might be used for further development of the area in the Oseberg Future Development, phases 2 and 3.
The Gullfaks field has seen significant investments and upgrading in the past four years. In 2016, approval for extending the field life to 2034 was granted. Notably, this is almost 30 years past the original PDO estimate of the year 2005. The Cat J rig will be vital for the continued development of the Gullfaks field.
Owned by the Gullfaks and Oseberg licenses, the Cat J jack-up rigs are customized to cope with the conditions in the North Sea. The rigs are likely to be installed in the summer and autumn of 2017, respectively.
The Cat J rigs are specially equipped to carry out efficient drilling operations on subsea development solutions alongside conventional surface drilling from fixed platforms.
The rigs have derrick, permitting 40-meter pipe joints to be put together to enhance the operations. These rigs feature automatic pipe handling and the prospect to execute parallel operations – constructing pipe while drilling.
They will be crucial in ensuring that the licenses recover all profitable reserves, and may also be used for exploration.
The introductory Askeladden drilling program emphasizes on proven reserves and gas blowdown wells on one of the Gullfaks satellite fields. Askepott will mainly drill through the unmanned wellhead platform at Vestflanken 2, which is part of Oseberg.
Investor confidence on the Statoil stock is reflected in its price chart. Shares of the company appreciated 59.2% in the last one year, while the Zacks categorized Oil & Gas-International Integrated industry gained 31.3% in the same time span.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It had an average earnings surprise of 40.55% in the four trailing quarters.
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Statoil Awards Drilling & Service Contracts for 2 Cat J Rigs
Statoil ASA recently announced its decision to award contracts for integrated drilling and well services on the Cat J rigs Askepott and Askeladden to Baker Hughes Inc. and Schlumberger Ltd. (SLB - Free Report) .
The rigs will be utilized to carry out operations at Oseberg and the Gullfaks. The contracts are for a four-year period but have the provision for two two-year extensions. The contracts involve cementing and pumping, completion, drilling and completion fluids as well as integrated drilling services.
Currently, Schlumberger is providing integrated drilling and well services at Mariner, while Baker Hughes at Johan Sverdrup. Both these companies, which have their Norwegian head offices in Stavanger, are important suppliers for Statoil across the drilling and well disciplines.
Oseberg Cat J will support the continuous development of the Oseberg area. The rig will drill wells for the Vestflanken 2 project from autumn 2017. Subsequently, the rig might be used for further development of the area in the Oseberg Future Development, phases 2 and 3.
The Gullfaks field has seen significant investments and upgrading in the past four years. In 2016, approval for extending the field life to 2034 was granted. Notably, this is almost 30 years past the original PDO estimate of the year 2005. The Cat J rig will be vital for the continued development of the Gullfaks field.
Owned by the Gullfaks and Oseberg licenses, the Cat J jack-up rigs are customized to cope with the conditions in the North Sea. The rigs are likely to be installed in the summer and autumn of 2017, respectively.
The Cat J rigs are specially equipped to carry out efficient drilling operations on subsea development solutions alongside conventional surface drilling from fixed platforms.
The rigs have derrick, permitting 40-meter pipe joints to be put together to enhance the operations. These rigs feature automatic pipe handling and the prospect to execute parallel operations – constructing pipe while drilling.
They will be crucial in ensuring that the licenses recover all profitable reserves, and may also be used for exploration.
The introductory Askeladden drilling program emphasizes on proven reserves and gas blowdown wells on one of the Gullfaks satellite fields. Askepott will mainly drill through the unmanned wellhead platform at Vestflanken 2, which is part of Oseberg.
Investor confidence on the Statoil stock is reflected in its price chart. Shares of the company appreciated 59.2% in the last one year, while the Zacks categorized Oil & Gas-International Integrated industry gained 31.3% in the same time span.
Statoil currently has a Zacks Rank #4 (Sell). A better-ranked player in the same space is Suncor Energy, Inc. (SU - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It had an average earnings surprise of 40.55% in the four trailing quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>