Norwegian oil giant Statoil ASA???s (STO) share price saw a marginal drop of 0.2% in the trading session that followed the announcement of an oil and gas leak on the Statfjord A platform in the North Sea. However, the share price rose 0.8% in the next trading session to close at $24.13 per share.
Statfjord A was depressurized and shut down after the leakage was reported.?? After the site of the leak was found, around 168 personnel on board were evacuated. During the incident, no one was injured. Output at the field resumed the day after the leakage was stopped.
Located around 180 kilometers (110 miles) off Norway's coast and overlapping British-Norwegian waters, the Statfjord field is one of the largest in the North Sea.
Statfjord was discovered in 1974 by ExxonMobil Corporation (XOM). Statoil got the operatorship of the field in Jan 1987.
We appreciate Statoil???s endeavor to improve recovery of resources in mature fields. The company has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the Norwegian Continental Shelf. We believe that Statoil is well positioned to sustain its production growth for the next few years on the back of its large resource base at NCS.
Statoil aims to achieve an equity production of above 2.5 million barrels of oil equivalent in 2020. The growth is expected to come from new projects between 2014 and 2016 that would result in a compound annual growth rate (CAGR) of 2% to 3% for the period 2012 to 2016. The second stream of projects is expected within the 2016???2020 period that would likely lead to a CAGR of 3% to 4%.
Statoil carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the oil and gas sector include Blueknight Energy Partners, L.P (BKEP) and Tesco Corp. (TESO). Both these stocks hold a Zacks Rank #1 (Strong Buy).