Norwegian oil giant Statoil ASA STO received four licenses offshore the Nicaraguan Pacific.
Spread across the largely unexplored region of Sandino Basin, the licenses cover an area of about 16,000 square kilometers. Statoil will operate these licenses with a holding of 85%. The remaining will be held by Empresa Nicaraguense del Petroleo (Petronic).
These license awards in Nicaragua mark the company’s entrance into a new country. The company’s planned exploration program along with its entry at an early exploration phase has placed it advantageously in the region.
The preliminary work commitments during the first phase of exploration, which is of two and a half years, comprises re-processing 2D seismic, getting new 2D seismic data as well as geology and geophysics (“G&G”) studies.
The data gathered from the initial studies and seismic survey will help Statoil decide the subsequent steps to be taken in the licenses.
These licenses are in sync with the company’s strategy of exploration access at scale. These awards have presented the company with long-term prospects, which despite high subsurface uncertainty have impact potential. These licenses, therefore, support and strengthen a wide set of options in Statoil’s long-term international portfolio.
Statoil is a Norway-based major international integrated oil and gas company. The company operates in four segments: Exploration and Production Norway, Natural Gas, International Exploration and Production and Manufacturing and Marketing. Statoil is one of the leading suppliers of natural gas in the European market and has 21.1% stake in the world’s largest offshore pipeline network – Gassled – which transports natural gas from the North Sea to the European gas transmission system.
Statoil currently carries a Zacks Rank #2 (Buy). Some other players from the same space that are worth considering include Transmontaigne Partners L.P. TLP, LRR Energy, L.P. LRE and Pembina Pipeline Corporation PBA. All these stocks sport a Zacks Rank #1 (Strong Buy).
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