Back to top

Analyst Blog

Norwegian oil and gas company Statoil ASA (STO - Analyst Report) and its partners have resolved to proceed with the Smørbukk South Extension project. The project is estimated to cost around NOK 3.5 billion.

Discovered in 1985 – the Smørbukk South Extension – is estimated to hold recoverable reserves of 16.5 million barrels of oil equivalent. Statoil has been successful in turning the discovery into a profitable project after years of experience from Aasgard and the availability of existing facilities.

The project is planned to be developed by means of a subsea tieback to the existing infrastructure in the area – Aasgard A floating production, storage and offloading vessel. The project is estimated to have a lifetime of 12 years.

Smorbukk will produce from a single multilateral well having two producing branches. It also comprises the installation of a new subsea template with available slots for future wells. The new well technology is believed to enhance recovery from the Smorbukk South reservoir. The company has made pre-investments to reduce the time from project sanction to production start-up.

The company proposes to award numerous contracts for the development, with Nexans already contracted for umbilicals in 2012. Drilling activities are likely to commence in the beginning of 2015, while production start-up is scheduled for Sep 2015. The project is expected to extend the lifetime on Asgard A and aid in the development of other projects and opportunities in the area.

Smørbukk South Extension forms part of the Åsgard unit. Statoil, the operator of Asgard, has a stake of 34.6%. The other partners in the license are Petoro AS, Eni SpA (E - Analyst Report), Total SA (TOT - Analyst Report) and ExxonMobil Corporation (XOM - Analyst Report) holding 35.7%, 14.8%, 7.7% and 7.2%, respectively.

Statoil holds a Zacks Rank #2 (short-term Buy rating).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%