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Statoil Beefs Up NCS Acreage

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Norwegian giant Statoil ASA has won participating interests in 10 production licenses in the Awards in Predefined Areas 2013 (APA 2013) on the Norwegian Continental Shelf (NCS).  

The interests are part of new acreages in all three NCS provinces – Barents Sea, Norwegian Sea and North Sea. The company will operate PL765 in Barents Sea, with a 40% holding. PL765 is a relatively new license in the Hammerfest basin and holds immense potential as most of it remains largely unexplored.

Statoil will now operate PL755 with an ownership of 40% in the Norwegian Sea. The license lies to the east of Heidrun and aims to achieve optimal near-field exploration through this award. Statoil has also received a 60% ownership and operatorship in PL752 and 20% ownership in PL751 – both of which are located in the less mature Froya high/Froan basin where the company has a fresh outlook on traditional and new plays.

Moreover, in the North Sea, Statoil has gained ownership and operatorship of 30%, 50%, 50%, 20% and 77.8%, respectively, in PL745S, PL739S, PL072D, PL735S and PL333B. The company will also own 30% in PL044B, which is an additional acreage in the proximity of PL044 in the southern North Sea.

Statoil still believes that the mature areas of the NCS offer attractive exploration opportunities. The company is gradually trying to unlock the full potential of the mature area. This will result in maximizing value on the NCS.

The growth projects aim to leverage from the company’s regional knowledge and come out with new creative ideas and exploration concepts. Earlier this month, Statoil submitted its nomination of blocks for the 23rd licensing round to the authorities.

Statoil carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include NGL Energy Partners LP (NGL - Free Report) , Cheniere Energy Partners L.P. (CQP - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).

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