Norwegian oil major Statoil ASA’s (STO) gas field development is progressing as per schedule, with drilling expected to begin in the first half of 2016.
The development of Aasta Hansteen and its Polarled pipeline is considered by Statoil as a major and most complex industrial project in Europe. For the first time, the company is taking Norwegian gas infrastructure northward into the Arctic Circle through this project.
Located 183 miles off the coast of Norway, the Aasta Hansteen discovery is estimated to hold an estimated 1.66 trillion cubic feet of natural gas and some condensate.
Statoil is building the largest SPAR platform in the world and is setting a new depth record of 1,300 meters for a field development and pipeline on the Norwegian continental shelf (NCS). There is a total investment of NOK 57 billion in Aasta Hansteen and the Polarled pipeline.
With the plan for development and operation having received approval in 2013, the project is currently under development in several parts of the world.
The hull and the topside are being constructed in South Korea, while the equipment packages and subsea facility as well as pipeline equipment are delivered globally.
Offshore work began in the summer of 2014 and comprised the laying of a fiber-optic cable on the seabed and installation of rocks on the seabed for the pipeline.The project is scheduled to commence production in the third quarter of 2017.
Currently, Statoil carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Weatherford International plc (WFT), Sunoco Logistics Partners L.P (SXL) and Sanchez Energy Corp (SN). All of these stocks sport a Zacks Rank #1 (Strong Buy).