Norwegian operator Statoil ASA STO recently evacuated the Karsto processing plant in Norway after there were reports of a gas leak.
An emergency response organization has been set up and the emergency services as well as authorities have been informed about the situation.
The essential job of the emergency response organization is to get an overview of the situation and mobilize the resources vital to manage the situation.
As of now, the pressure is already decreasing and efforts to depressurize the facility are still in progress. The gas leak happened in the Statpipe-facility where gas pipelines connect to the facility for processing. The reason of the incident remains unknown as yet.
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 Norwegian Continental Shelf (NCS). We believe Statoil is well positioned to sustain its production growth through the next few years on the back of its large resource base at NCS.
Statoil aims to achieve an equity production of above 2.5 million barrels of oil equivalent in 2020. The growth is expected to come from new projects in effect from 2014 through 2016 that would result in a compound annual growth rate (CAGR) of 2% to 3% for the period 2012 to 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 earlier estimates. The lower investment plan reflects increased capital efficiency.
Statoil presently 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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