Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Norwegian oil giant Statoil ASA (STO - Analyst Report) – along with its partners – has upgraded and confirmed that the pre-salt block BM-C-33 in the Campos basin offshore Brazil holds over 1.24 billion barrels of oil equivalent.

The Brazilian discoveries – Seat, Gávea and Pão de Açúcar – are estimated to hold reserves of 700 million barrels of light crude and 3 trillion cubic feet of gas or 540 million barrels of oil equivalent

The significant potential of the block BM-C-33 also increases Statoil’s outlook for its acreage in pre-salt Kwanza basin in Angola, which has similar geological characteristics.

These wells are considered more complex and dangerous to drill than conventional offshore wells, as they lie under a thick layer of salt at huge water depths. Under these conditions, it also becomes difficult to predict the location of the reservoir.

In particular, the high-impact Pao de Acucar discovery – located 195 kilometers off Rio de Janeiro– came across a hydrocarbon column of about 500 meters.

Repsol Sinopec, a joint venture between Spain’s Repsol YPFSA and China Petroleum & Chemical Corp. (SNP - Analyst Report) operates pre-salt block BM-C-33, with an interest of 35%. Statoil and Brazil's state-run energy giant Petrobras (PBR - Analyst Report) hold 35% and 30%, respectively. Output is distributed to each company as per their holdings in the block.

Statoil’s continuous effort to build a strong resource portfolio is aimed at increasing production through increased exposure to large energy resources with a long reserve life.

Statoil holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain our Neutral recommendation on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVESTMENT T ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%