Statoil, Total to Swap Barents Assets - Analyst Blog
14 Mai 2013 - 5:10PM
Zacks
Norwegian major Statoil
ASA (STO) and France’s Total SA (TOT)
have agreed to swap assets in the Barents Sea, subject to approval
by the Norwegian Ministry of Petroleum and Energy. Per the
agreement, Statoil will farm in 10% equity in production license
(PL) 535 while Total will acquire 10% equity in PL 395 in
exchange.
Situated on the Bjarmeland Platform in the central Barents Sea, PL
535 and PL 395, have gas resources about 20 kilometers apart proved
by both the companies. The Ververis discovery in PL395 was made in
2008 while the Norvarg discovery in PL535 was made in 2011. There
is also an ongoing appraisal well, Norvarg II, in PL535.
In Jul 2012, Norway's Petroleum and Energy Ministry had revealed
that the Norvarg gas discovery had immense potential. The license
partners expect the find to hold about 250 million barrels of oil
equivalent. The Bjarmeland area has an attractive resource
potential which is likely to become crucial for future gas
developments in the Barents Sea.
Norvarg is located about 200 miles north of the isolated Norwegian
coastal city of Hammerfest, which lies in the country's
northernmost county of Finnmark in the Arctic circle and is the
catalyst for current and future oil and gas exploration in the
Barents Sea. The area containing the two discoveries is likely to
assist in the ultimate development of the unexploited Barents
Sea.
Per the Norwegian Petroleum Directorate's (NPD) website, prior to
the asset swap deal, Total, the operator of PL 535, held 40%, while
Det norske oljeselskap, North Energy, Valiant Petroleum and Rock
Source Exploration possessed 20%, 20%, 13% and 7%,
respectively.
The NPD database also confirmed that prior to the asset swap
agreement, Statoil, the operator of PL395, held 50% while BG and
Norwegian fellow state-owned group Petoro had 30% and 20%,
respectively.
Statoil holds a Zacks Rank #3 (Hold). There are other stocks in the
sector that appear rewarding. These include Dawson
Geophysical Company (DWSN) and SM Energy
Company (SM), which are expected to perform impressively
over the next few months and carry a Zacks Rank #1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis Report
SM ENERGY CO (SM): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
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