The fast-track development projects of Norway-based Statoil ASA (STO) are actively underway. As part of these endeavors, Statoil joined hands with FMC Technologies Inc. (FTI) to manufacture and supply subsea production equipments for the Katla development project. The contract has a value of approximately $75 million in revenues to FMC Technologies.
In June 2010, Statoil entered into a deal with technology services provider, FMC Technologies, covering subsea production equipment for the Pan Pandora field. Consequently, the Katla oil field is amongst the three additional options included in the previously announced Pan Pandora project.
Katla is an oil and gas field situated in about 310 feet (95 meters) of water in the Norwegian sector of the North Sea. Moreover, Katla is among Statoil’s four fast-track development projects that also include Pan Pandora, Vigdis North-East and Gygrid. The company’s fast-track approach seeks to reduce the time between discovery and production.
FMC Technologies will be engaged in the manufacture of three subsea trees, one manifold as well as subsea and topside control systems for Katla. Additionally, all equipment for the project will be based on a standard subsea solution by FMC Technologies, like Pan Pandora one. FMC Technologies will manufacture and assemble the equipment at its facilities in Dunfermline , Scotland and Kongsberg , Norway . Deliveries are slated for the second quarter of next year.
Statoil engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. The company also remains focused on the standardization of equipment, which in turn is expected to reduce costs as well as time for production and development. Moreover, we appreciate the company’s focus on speeding up development time, which is an important way of maintaining oil and gas production level on the Norwegian continental shelf.
Although the company’s cost-effective measures are appreciable, there have been instances of cost overruns in the completion in many of its projects. Given this track record, we remain on the sidelines and maintain our long-term Neutral recommendation for the stock.
In June 2010, Statoil entered into a deal with technology services provider, FMC Technologies, covering subsea production equipment for the Pan Pandora field. Consequently, the Katla oil field is amongst the three additional options included in the previously announced Pan Pandora project.
Katla is an oil and gas field situated in about 310 feet (95 meters) of water in the Norwegian sector of the North Sea. Moreover, Katla is among Statoil’s four fast-track development projects that also include Pan Pandora, Vigdis North-East and Gygrid. The company’s fast-track approach seeks to reduce the time between discovery and production.
FMC Technologies will be engaged in the manufacture of three subsea trees, one manifold as well as subsea and topside control systems for Katla. Additionally, all equipment for the project will be based on a standard subsea solution by FMC Technologies, like Pan Pandora one. FMC Technologies will manufacture and assemble the equipment at its facilities in Dunfermline , Scotland and Kongsberg , Norway . Deliveries are slated for the second quarter of next year.
Statoil engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. The company also remains focused on the standardization of equipment, which in turn is expected to reduce costs as well as time for production and development. Moreover, we appreciate the company’s focus on speeding up development time, which is an important way of maintaining oil and gas production level on the Norwegian continental shelf.
Although the company’s cost-effective measures are appreciable, there have been instances of cost overruns in the completion in many of its projects. Given this track record, we remain on the sidelines and maintain our long-term Neutral recommendation for the stock.
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