Statoil ASA STO has submitted its application for the 23rd licensing round on the Norwegian Continental Shelf (NCS) to the Norwegian officials.
The results are expected to be announced by the Norwegian Ministry of Petroleum and Energy in the latter part of the first half of 2016. This round signifies the first opening of new acreage on the NCS since 1994. Statoil’s application will substantially boost its plans for 2030 and beyond.
The acreage being awarded in this round comprises the south-east of the Barents Sea. Under the border agreement with Russia, this area has been demarcated as Norwegian territory since 2011. Acreage in the Hoop-Wisting area that opened in the 22nd round is also on offer.
Following this license round, exceptional cooperation has been witnessed within the industry. In the Barents Sea Exploration Collaboration project, 16 companies are working together to discover common solutions for exploration operations in the Barents Sea. They will also make sure that the operations are cost-effective and have good safety standards.
In 2014, Statoil was operator for a group of 33 companies collaborating on seismic surveys in areas incorporated in the licensing round. The NCS is an important part of Statoil’s portfolio and the company aims to continue production at current levels through 2025–2030 and beyond.
Statoil’s endeavors to improve recovery of resources in mature fields are commendable. The company has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the NCS. We believe that Statoil is well positioned to sustain steady production growth over the next few years on the back of its large resource base at NCS.
Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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