Norwegian oil giant Statoil ASA (STO) announced the commencement of production in the fast-track fields, Fram H-North and Svalin C located in North Sea. Commissioning of Fram H-North and Svalin C represents the eighth and ninth fast-track development projects for Statoil.
Located in the Troll area, Fram H-North is estimated to hold about 10 million barrels of recoverable oil equivalent. Svalin C is located in the Grane area that is estimated to contain over 30 million barrels of oil equivalent.
Svalin C’s plan for development and operation (PDO) submitted in Jun 2012 received approval from the Norwegian Ministry of Petroleum and Energy in November in the same year. The projects were complete on time, within budget and without serious injuries.
In the last six months, the activity level in Grane has been particularly high. Owing to good planning and follow-up by both the suppliers and operator, these activities were executed without any serious HSE incidents.
Statoil set lofty goals with respect to development time. However, the Fram H-North and Svalin C projects took longer than expected. The drilling and well activities for Fram H-North turned out to be more demanding. Meanwhile, Svalin C ran into difficulties related to shipment of the control system for the subsea template, which resulted in a delay in production start-up.
Fram H-North can accommodate four wells and is a standard subsea template. It is linked by around five kilometers of pipeline and umbilicals to the existing subsea template on Fram West A2. Located about six kilometers southwest of the Grane platform, Svalin C comprises a subsea facility with two wells.
With a combination of standardized subsea development solutions and utilization of infrastructure in a manner that helps extend the lifetime of existing fields, Statoil’s fast-track development projects are increasing the company’s and partners’ oil and gas production.
Currently, Statoil carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Cameron International Corporation (CAM), Valero Energy Partners LP (VLP) and Sunoco Logistics Partners L.P (SXL). All of these stocks sport a Zacks Rank #1 (Strong Buy).
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