Norway-based Statoil ASA (STO), through its subsidiary, has signed two contracts for the sale of a major part of its key onshore wind power assets. This forms a part of Statoil’s endeavors to concentrate on the offshore market.
The first contract consists of the sale of 50% holding in five energy projects on the central Norwegian coast — collectively called Sarepta Energi — to Tronder Energi Kraft AS.
The other contract is for the sale of wind power projects in Finnmark (northern Norway), comprising Arctic Wind AS and the three projects Hamnefjell, Båtsfjordfjellet and Snefjord, to Finnmark Kraft AS.
The divestiture would help Statoil to increase its investments in the development of renewable energy, and thereby helping it focus more on offshore activities. Statoil has been progressing consistently in its offshore wind projects and has shown a significant growth.
The company is a part of the consortium ‘Forewind’ with rights to develop the Dogger Bank field, off the coast of England. Dogger Bank, with 13 gigawatts potential, is on its way to becoming the world’s largest offshore wind initiative. It spreads over an area about 10 times the size of Berlin and is anticipated to produce about 9,000 megawatts of electricity by 2020.
Statoil is also in the developmental phase of a new offshore floating wind technology known as Hywind. Other major wind ventures of the company include Sheringham Shoal, which is expected to provide energy to 220,000 U.K. households going forward.
Though the company has operations in all major hydrocarbon-producing regions of the world, it has an upstream focus on the Norwegian Continental Shelf. Statoil operates in four segments: Exploration and Production Norway, Natural Gas, International Exploration and Production and Manufacturing and Marketing.
Currently, Statoil has a Zacks# 3 Rank, which translates into Hold rating for a period of one to three months. We are Neutral on the stock for the longer term. The major competitors of Statoil are BP Plc (BP) and ConocoPhillips (COP).
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