Statoil ASA STO, on behalf of its license partners, has awarded contracts valued at about NOK 1.6 billion for the Oseberg Field Centre.

The scope of the contract includes marine operations, marine construction, engineering, procurement and construction (EPC) of an unmanned wellhead platform as well as modifications at the Oseberg Field Centre.

The plan for development and operation (PDO) of Oseberg Vestflanken 2 was submitted toward the end of Dec 2015. The contracts to be awarded are, however, subject to government approval of the PDO.

Resources worth 110 million barrels of oil equivalent are estimated to be produced as a result of the field development. Work of the field is expected to be profitable even amid the low oil price scenario.

The contracts for pipe laying at Johan Sverdrup and Oseberg Vestflanken 2 have been given to Technip Norway A/S. The contract is valued at about NOK 400 million.

Contracts for marine construction and installation at Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog have been awarded to Ocean Installer. The combined contract is valued at about NOK 200 million.

The contract for engineering, procurement and construction (EPC) of the unmanned wellhead platform at Oseberg Vestflanken 2 has been awarded to Hereema Fabrication Group. The firm will also be in charge of the transport and installation of the platform. The combined contract value is about NOK 800 million.

Aibel received the contract for engineering, procurement, construction and installation (EPCI) on the Oseberg Field Centre. It will equip the platform for the receipt of the well stream from Oseberg Vestflanken 2. This contract is valued at about NOK 200 million.

Along with the reuse of two existing subsea wells, the Oseberg Vestflanken 2 development will consist of an unmanned wellhead platform with 10 well slots. The well stream will be directed to the Oseberg Field Centre through a new pipeline and the wells will be remote-controlled from the Field Centre.

Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same sector are Cheniere Energy Partners LP. CQP, Braskem S.A. BAK and Enviva Partners, LP EVA. All these stocks sport a Zacks Rank #1 (Strong Buy) and appear more rewarding for the short term.

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