Norwegian oil giant Statoil ASA(ADR) (NYSE:STO) has more than doubled the reserves at its Oseberg field, off Norway, through its increased recovery efforts.
Statoil ASA(ADR) (NYSE:STO) has invested over NOK 45 billion ($7.2 billion) over the last 10 years in developing its Oseberg reserves. The company has been able to boost recovery in the main reservoir to 2.6 from 1.1 billion barrels of oil. Earlier, 25-year-old Oseberg was estimated to produce till 2017. The field life has also been extended to 2040. To date, the field has yielded 1.7 billion barrels.
Statoil ASA(ADR) (NYSE:STO) also has a competitive recovery rate of 69% at Oseberg field versus its average rate of 50% off Norway and 35% for the rest of the world. In 2012, the operator replaced the entire produced volumes with fresh reserves in the Oseberg area.
The widespread use of new drilling technology and gas injection has assisted in improving both the recovery rate as well as the expected lifetime of the field. Per the Norwegian Petroleum Directorate, the subsea gas injection has produced over 400 million barrels of additional oil volumes.
Currently, Statoil ASA(ADR) (NYSE:STO) is performing an upgrade of the Oseberg B drilling platform. This forms part of the field centre and is scheduled for completion in spring 2014.
A Category J newbuild jackup has also been contracted by the company to perform further production drilling as well as exploration. This is expected to further augment recoverable reserves at the Oseberg field.
Statoil ASA(ADR) (NYSE:STO) currently has a Zacks Rank #4 (Sell). However, stocks worth considering in the industry include Helmerich & Payne, Inc. (NYSE:HP), Enbridge Energy Management, L.L.C. (NYSE:EEQ) and Matador Resources Co (NYSE:MTDR). All these stocks carry a Zacks Rank #2 (Buy).
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