Statoil's Aasta Hansteen Update

Zacks

Norwegian oil major Statoil ASA (STO) has awarded the contract for building the world’s largest Spar platform for the Aasta Hansteen development, off Norway, to the consortium of French engineering giant Technip and South Korea's Hyundai Heavy Industries (“HHI”).

Per the initial projections, total recoverable reserves for Aasta Hansteen, earlier known as Luva, is 47 billion standard cubic meters (scm) of gas and 0.8 billion scm of condensate.

The spar will be constructed in the shipyard of South Korea and is scheduled to be delivered in the middle of December 2015, on the world's biggest heavy-lift carrier. The work on the spar is likely to begin by mid-August 2012.

The spar would be the first of its kind in the Norwegian Continental Shelf equipped with adequate storage capacity. With the capability to store around 25,000 scm of condensate, the spar will deliver gas through the Norwegian Sea Gas Infrastructure.

Technip is responsible for the designing, procurement and supply of the Spar platform, which has been prepared to assist platform topsides in Norway. The French engineering giant is also accountable for designing as well as specification planning of the steel rigid risers and a complete mooring system. Aker Solutions has obtained the FEED facility for the project.

The total contract value for the spar, mooring systems and steel risers are estimated to be above NOK 4 billion ($656.95 million), with the first yield expected towards the end of 2016. The letter of intent will aid in designing the overall progress plan for Aasta Hansteen.

The remaining contracts for the topsides, subsea facilities, pipelines, marine operations and drilling relating to the project will be awarded during autumn 2012 and spring 2013.

The production life of the field stretches till 2040. The field lies in Production License 218, operated by Statoil. The other partners in the license are ExxonMobil Corporation (XOM) and ConocoPhillips (COP).

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 a Neutral recommendation on the stock.

 

Read the Full Research Report on COP

Read the Full Research Report on STO

Read the Full Research Report on XOM

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)

Recommended for You

  • This is what a monopoly looks like

    On Saturday, I walked into a Comcast customer service center in order to return a Comcast-owned cable modem. Comcast is the only company that offers high-speed internet access at my current address. The problem goes beyond long wait times at the customer service center.

    Vox.com
  • Buy a Used Jeep Wrangler in Your City

    auto classifieds helps you find a pre-owned Jeep Wrangler Sport for sale in our used car classified network; if you want to find a used Jeep

    AdChoicesSATHDSSponsored
  • 3 Top Dividend Stocks with Huge Yields

    Many investors seek dividends for sure, easy cash in an income portfolio. Matt Frankel: In my opinion, the best dividend stock to buy right now is Prospect Capital Corporation (NASDAQ: PSEC  ) , which yields about 13%. Thanks to an earnings miss, Prospect's share price has pulled back to just over…

    The Motley Fool from RSS
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • How Mercedes-Benz, BMW, and Lexus Powered Ahead of America's Luxury Brands in August

    The Lexus RX, which was the top-selling individual luxury vehicle in August. Lexus led the way in unit sales for the month. The luxury auto market is doing quite well on the coattails of a prospering overall auto market and improving economy.

    Motley Fool
  • Cramer: 'Compelling' stock for slowing economy

    Are you're concerned that the global economy isn't quite as perky as it had been? Cramer is, too. It's these so-called secular growers that Cramer wants individual investors to consider in the days ahead.

    CNBC
  • BP Lawyers Use Old-School Trick; Judge Not Amused

    A legal filing tied to the company's Gulf oil spill case was supposed to have been capped at 35 pages. But lawyers for BP got a little creative with the spacing.

    NPR.org from RSS
  • Lufthansa to order 25 new Airbus planes for $3.24 billion

    Germany's Lufthansa (LHAG.DE) said on Wednesday it had agreed to order 25 new Airbus (AIR.PA) planes worth 2.5 billion euros ($3.24 billion / 1.99 billion pounds) at list prices to replace older aircraft and cut fuel costs at two subsidiary airlines. Lufthansa's supervisory board agreed to buy 10…

    Reuters
  • 15 Things You Never Knew About "The Avengers"

    Even if you are an obsessive fan who has seen it a number of times, you may have missed some hidden tidbits and other less-known facts.

    AdChoicesAnswers HollywoodSponsored
  • Return of the $3 Gallon? U.S Gas Prices Are Falling Fast

    Here is the price of gasoline in the U.S. Tom Kloza, chief oil analyst at GasBuddy.com, thinks this year will bring the cheapest autumn gasoline prices since 2010. Gas prices are cheapest in the South and highest in the Northwest.

    BusinessWeek
  • How Boomers Can Play Nice With Millennials At Work

    Here, two boomers — who parent and work with Millennials — offer their take on the generation gap and how boomers can help bridge it: The anecdotes have become stereotypes: Millennials — those graduating from college from roughly 2003 to 2018 — arriving at job interviews in flip-flops, inquiring…

    Forbes
  • Play

    Valuation king says don't buy Alibaba

    Despite a fairly valued IPO, Aswath Damodaran, NYU professor of finance, explains why investors should not buy the hype of Alibaba.

    CNBC Videos
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • 30 Expert Marketers You Should Follow on LinkedIn and Twitter

    Want to stay up on the latest and greatest marketing tactics? These are the people you should be following.

    Inc Magazine from RSS
  • Crude Oil Prices Skid as Refining Slows

    Total gasoline inventories decreased by 1.6 million barrels last week and remain in the middle of the five-year average range. Total motor gasoline supplied (the EIA’s measure of consumption) averaged 9 million barrels a day for the past four weeks, up by 0.4% compared with the same period a year…

    24/7 Wall St.
  • Sept Clearance! New Fords Starting At $14,100!

    Get sensational new Ford car savings! See local offers, rebates, promotions and clearance prices!

    AdChoicesiMotors.comSponsored
  • Apple iPhone 6 Weekend Sales May Miss, No Worries, Says Bernstein

    Bernstein Research's Toni Sacconaghi today reiterates an Outperform rating on Apple (AAPL) stock, and a $108 price target, warning that Apple may miss high expectations for first-weekend sales of the iPhone 6 and 6 Plus when they go on sale this Friday, but that it may not matter much. Observes…

    Barrons.com
  • Austrian court unfreeze ex-U.S. diplomat's family assets

    Austrian court unfreeze ex-U.S. diplomat's family assetsVIENNA (Reuters) - An Austrian court has unblocked assets owned by the wife of former U.S. diplomat Zalmay Khalilzad, ruling that Vienna prosecutors overstepped their authority by having her bank

    Reuters
  • Here’s What Your Supermarket Will Look Like in 50 Years

    A New York-based food design agency has envisioned what your grocery store will look like in 2065, and you’ll only have to wait a year to find out. Whether it will focus on products resulting from sustainable agricultural practices or forgo packaging all together, two recent projects are showing…

    The Fiscal Times
  • Las Vegas Casinos Thrive at Expense of Macau Amid Probes

    China’s high-spending gamblers are looking to bet outside Macau amid a government assault on corruption and extravagance, and that’s boosting casinos from the Philippines to the Las Vegas Strip. Visitors from China are lifting gambling growth in Las Vegas while casinos in Melbourne and Manila are…

    Bloomberg from RSS
  • What to REALLY look for in Yellen's words

    On Wednesday the Town Crier- Janet Yellen -will take to the podium to announce the latest thinking from the Fed brain trust. What traders and investors should be looking for on Wednesday is any hint or change of language that gives Yellen and her compatriots the ability to interpret the data in a…

    CNBC
  • Healthy Living Style

    Living Healthy start with eating healthy.

    AdChoiceshealthyforyouSponsored
  • Cheap Oil and Expensive Oil Tankers: This Is Contango

    During the last half of 2008, as the global economy ground to a halt, the price of oil fell from an all-time high of $145 a barrel to less than $40. Thus was born the booming demand for oil tankers, or any other place to stash low-cost crude. The futures markets had entered something traders call…

    BusinessWeek