Statoil ASA STO has inked Master Service Agreements with Aker Solutions ASA and OneSubsea Processing AS pertaining to potential new EPC (engineering, procurement and construction) contracts for subsea equipment in the medium term.
The company also signed an EPC option agreement relating to subsea production system (SPS) with OneSubsea. This deal includes framework agreements for subsea operations services and subsea add-ons.
Notably, in 2015, Statoil had inked a Master Service Agreement and an EPC contract that included options for EPC project with FMC Kongsberg Subsea AS for Johan Sverdrup.
The latest agreements have made way for further collaborations of the company with the three leading subsea suppliers.
A deep focus on costs and efficiency is indispensable in today’s volatile price environment to develop several marginal prospects and discoveries.
Statoil has always cooperated closely with suppliers on technology qualification, concept development and pre-engineering studies. This, in turn, has brought cost efficiency and boosted competitiveness for the firm. The company, jointly with its partners, has delivered successful subsea projects.
Statoil aims to achieve an equity production of more than 2.5 million barrels of oil equivalent in 2020. The upside is expected to come from new projects during 2014 to 2016 that would result in a compound annual growth rate (CAGR) of 2% to 3% for the period between 2012 and 2016. The second stream of projects is expected within the 2016−2020 period that would likely lead to a CAGR of 3% to 4%. The state-controlled explorer intends to invest about $20 billion per year from 2014 to 2016, down 8% from the earlier estimates.
Statoil carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector are Enbridge Energy Management LLC EEQ, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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