Statoil ASA (STO) continues to maintain a high activity level in Norway. The company is planning to install subsea gas compressors to boost output and prolong production-life at the Aasgard field in the Norwegian Sea.
Statoil is initially considering this method for Midgard and Mikkel fields in the Aasgard area. Subsea gas compression has also been assessed on Gullfaks and for the Ormen Lange field together with the operator Royal Dutch Shell (RDS.A).
Midgard and Mikkel fields are being developed with seabed installations and output from these fields is piped to the gas production floater about 40–50 kilometers away. As per company analysis, pressure in the two reservoirs will become too low to sustain their production capacity toward the end of 2014.
Statoil will be able to extract 28 billion cubic meters of gas and 14 million barrels of condensate from these two fields. The company is also active on the renewable energy front. It has been focusing strongly on offshore wind turbines as part of its strategy for growth in renewable energy.
Management said the company aims to secure a leading position by using its competitive advantages in technology. Statoil will also capitalize on its 40-year experience in marine operations in the offshore sector.
We are optimistic on Statoil’s ability to development the project successfully. The company is also planning turnarounds on several oil and gas fields to improve recovery of resources in mature fields. Statoil is currently rated Neutral with the Zacks #3 Rank (Hold).
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