Norwegian oil giant Statoil ASA STO has given out contracts for the Mariner field to Asco UK Limited on behalf of its Mariner co-venturers. The contracts comprise supply base and warehousing services for the Mariner field. Its share price, however, has been trending downward post-announcement and has shown a 0.6% fall.
Aberdeen-based Asco is an international oilfield support services company. The company will now operate the supply base and warehousing facility for Mariner from Peterhead, north of Aberdeen.
The scope of the award comprises provision of supply base services, covering personnel, local transportation, marine gas oil, quayside services and a nearby warehousing facility. Scheduled to commence operations during the first quarter of 2016, Asco will carry out the services for the Mariner field under two five-year contracts. The contracts contain two 2-year extension options as well.
Located about 150 kilometers east of the Shetland Isles, the Mariner field is currently under development. The field is expected to start production in 2017.
The concept for its development includes a production, drilling and quarters (PDQ) platform based on a steel jacket and a floating storage unit (FSU). Drilling will be performed from the PDQ drilling rig, with the assistance of a jack-up rig for the initial years.
During the period when both the PDQ and the jack-up are drilling Mariner wells, the field will need at least five sailings a week from the Peterhead supply base.
Statoil operates the Mariner field with 65.11% equity. Other co-venturers are JX Nippon Exploration and Production (U.K.) Limited and Dyas Mariner Ltd. holding 28.99% and 6%, respectively.
Statoil currently carries a Zacks Rank #5 (Strong Sell). Other stocks in the oil and gas sector such as Valero Energy Partners L.P. VLP, Sunoco LP SUN and Hallador Energy Co. HNRG with a Zacks Rank #1 (Strong Buy) are expected to outperform.
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