Back to top

Analyst Blog

Norwegian giant Statoil ASA (STO - Analyst Report) has hired UK-based Odfjell Drilling for drilling services for the Mariner heavy oil development in the UK waters.

Based in Aberdeen, the Odfjell Drilling will carry out drilling services, maintenance of the drilling facility and drill pipe logistics for the Mariner field development. The contract is for a period of four years beginning Nov 2016, with options for another six years.

The contract also covers casing, tubing running services and alterations to the drilling facility. The transaction value is estimated at GBP 160 million. The deal also includes alternatives for Statoil’s Bressay development, located in the UK North Sea and is expected to start after a year from Mariner.

Currently, the Mariner platform is under construction. Odfjell Drilling will supply engineering and commissioning services to Statoil under the construction and start-up phase of the field development.

The field development plan submitted by Statoil and its partners for the Mariner field has been approved by the UK government's Department of Energy and Climate Change (DECC).  The project is likely to involve investments exceeding GBP 4.7 billion.

Statoil expects the field to be commissioned by 2017 and have a producing life of about 30 years. The average yield is projected at about 55,000 barrel of oil per day over the plateau period from 2017 to 2020.

Statoil holds a Zacks Rank #3, which is equivalent to a short-term Hold rating. There are other stocks in the oil and gas industry, like Range Resources Corporation (RRC - Analyst Report), EPL Oil & Gas, Inc   and Stone Energy Corporation (SGY - Analyst Report) , which appear more promising and carry a Zacks Rank #1 (Strong Buy).

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
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%