Norwegian energy giant Statoil ASA (STO - Free Report) announced that it has started operating the Hyme oil field. The field is located in the southern portion of the Norwegian Sea and is one of the company’s latest generation fast-track developments.
The project came online on Feb 25, 2013, a month ahead of schedule. The development is the second of the 12 fast-track projects planned by Statoil.
Statoil has spent more than $790 million for the development of the oil field. Management expects the field’s capacity to be roughly 30 million barrels of recoverable reserves, the majority of which is crude oil with some natural gas. Management revealed that the field is expected to produce oil and natural gas beyond 2020.
The Hyme oil field was discovered in 2009, 19 kilometres north east of the Njord A platform. The project is now using part of the Njord A infrastructure.
Management stated that the Hyme oil field development has taken more than two years to come online, from the date Statoil decided to use Njord A’s platform. The experience gained from this project will help the company to speed up its other fast-track endeavors so that they can start producing within 30 months of a field’s discovery.
Statoil as operator holds a 35% stake in the Hyme oil field, whereas Core Energy, VNG, Faroe Petroleum, E.ON E&P and GDF Suez hold a respective 17.5%, 2.5%, 7.5%, 17.5% and 20% ownership.
Statoil is a major international integrated oil and gas company. The company operates in four segments: Exploration and Production Norway, Natural Gas, International Exploration and Production and Manufacturing and Marketing.
Statoil is one of the leading suppliers of natural gas in the European market and has a 21.1% stake in the world’s largest offshore pipeline network, Gassled, which transports natural gas from the North Sea to the European gas transmission system.
Statoil currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
In the energy sector, Total SA (TOT - Free Report) , Range Resources Corporation (RRC - Free Report) and Breitburn Energy Partners LP display better fundamentals and currently carry a Zacks Rank #2 (Buy).