In the first auction for offshore drilling rights in the Gulf of Mexico's prolific central region following the BP plc (BP) oil spill in 2010, Norwegian energy giant Statoil ASA (STO) has emerged as the highest bidder on 26 leases.
Through the auction, the first one since March 2010, Statoil retains its leadership leaseholder position in the region with control over 350 leases. The lease sale was carried out by the Bureau of Ocean Energy Management (:BOEM). Statoil’s winning bids are subject to appraisal and the final consent of the BOEM that may require up to 90 days.
Currently, Statoil has six fields under production while development work is in progress on eight fields. The company is spudding the Bioko prospect in the central Gulf of Mexico region, at present. It intends to drill two to three additional wells offshore Gulf of Mexico within the next 12 months, while also take part in two to three wells drilled by its partners.
Statoil has a brilliant record with respect to environment and security and has retained the operatorship of 3 of 2011’s 10 leading oil and gas findings worldwide. With 25 years of presence in North America and over 6 years of operations, Statoil has built a vast portfolio of offshore and onshore assets in Canada and the U.S.
The company’s continuous efforts to build a strong resource portfolio are aimed at increasing production through increased exposure to large energy resources with a long reserve life. Statoil’s portfolio is further boosted by the addition of theses leases, which allows it to follow its strategy of extending its exploration operations in the Gulf of Mexico, considered to be the most coveted basin.
Statoil has vast experience in developing new discoveries in the region such as, Jack, St. Malo, Julia, Vito and Logan and it holds a key position among the world’s largest offshore operators and in subsea technology.
Statoil holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain our Neutral recommendation on the stock.Read the Full Research Report on BP
More From Zacks.com