Posts tagged 'Statoil'

Value-at-risk for oil and gas reserves?

How much of the oil and gas sector’s asset valuations could be at risk from climate mitigation policy?

The International Energy Agency’s latest annual World Energy Outlook, released in November, followed the popular practice in long-term forecasts of using several scenarios. One involves global policymakers moving to limit atmospheric CO2 concentration to 450 parts per million, in order to limit to 50 per cent the probability of average temperatures rising 2 degrees or more.

The problem for fossil fuel companies is that could limit their ability to utilise all their reserves. Read more

Snap news

Breaking pre-market news on Friday,

– Lloyds Banking Group warns of tough times after £3.5bn loss – statementRead more

Snap news

Breaking pre-market news on Wednesday,

– Statoil raises 2012 capex, Q4 beats forecasts – statement. Read more

European bidders vying for Anadarko’s Brazil unit

Three of Europe’s biggest oil companies are set to vie for Anadarko Petroleum’s Brazilian business, valued at more than $3bn, the FT reports, citing people with knowledge of the talks. France’s Total, the Norwegian state-controlled energy group Statoil and Denmark’s Maersk Oil are expected to bid in the first round of the US independent oil explorer’s auction later this month. All three as well as Anadarko declined to comment.  There had also initially been interest from Asian oil companies, one of the people said, but it is unclear whether any bids from that region will materialise. Bids are likely to value the Brazilian business at $3bn-$4bn.

Snap news

Breaking pre-market news on Wednesday,

– Lehman’s joint chapter 11 plan gets support from creditors holding over $160bn in claims – Reuters. Read more

Snap news

Breaking pre-market news on Friday,

– Latest Europe bailout plan: merge EFSF with the ESM — BloombergRead more

Statoil resuming North Sea development

Statoil, the Norwegian oil company, is to resume work on a large North Sea project and Centrica, the UK utility, said that it had reopened Britain’s biggest gas field following concessions by the government on taxation, the FT reports. The Treasury has said it will increase the ring fence expenditure supplement from 6 to 10 per cent, a measure that allows energy companies to offset the losses they make from investments against tax payments from future profits. The change was enough for Statoil to say that it would resume developing the Mariner oilfield, south-east of the Shetland Islands, which might hold 430m barrels. Meanwhile Centrica has reopened the UK’s largest gas field after choosing to leave it dormant for a month, a move that it linked to the tax increases in the Budget.

Statoil challenges UK on oil tax

Statoil has put on hold two oil and gas projects in UK waters worth more than $10bn in protest over the UK government’s increased tax on oil production, reports the FT. The Norwegian group said the tax rise, announced by George Osborne, UK chancellor, in last week’s Budget, was a “substantial setback” to the North Sea oil industry. It said it would “pause and reflect” on the future of its Mariner and Bressay fields near Shetland in light of the move. Osborne however defended his £2bn tax grab on the oil industry and dismissed suggestions it would hit exploration:

Thai group buys $2.3bn oil sands stake

Thailand’s largest oil company has gained a foothold in the Alberta oil sands sector by paying $2.3bn for a 40 per cent stake in a project owned by Statoil of Norway, the FT reports. PTT Exploration & Production’s deal over the project marks the biggest overseas acquisition by a Thai company, while Alberta’s oil sands may conceal the largest oil reserves outside Saudi Arabia. PTTEP, owned by Thailand’s state oil company, plans to finance the deal mostly with cash, but some analysts questioned the value of the acquisition, according to Reuters.

BP – a takeover target? Part II.

BP’s stock continued to take a battering late in London trading on Tuesday, closing down 13.1 per cent. Cue a fresh round of analysis of whether BP is in danger of a break-up, as well as discussions of just how much damage the oil spill is doing to BP’s bottom line. FT Alphaville has the details. Read more

Snap news

Breaking pre-market news on Wednesday,

– Prudential delays AIA rights issue as talks with FSA over solvency continue – statementRead more

Statoil and the Canadian sands

Statoil, the Norwegian energy group, has taken a $1.97bn chunk out of Canada’s oil sands, with an all-cash deal to take over Canada’s North American Oil Sands Corporation.

NAOSC operates 257,200 acres of oil sands leases in the Athabasca region of Alberta, the largest of three oil sands deposits in the province and the only one shallow enough to be suitable for surface mining. Despite the huge reserves in the oil sands, where crude oil, or bitumen, is mixed with sand and clay minerals, the cost of extracting the oil has historically made production unprofitable. Read more

Citigroup clashes with rivals over credit for Statoil-Hydro deal

Statoil-Hydro merger sign of future consolidation

The $29bn merger of Statoil with Hydro’s oil and gas business could be seen as a typical European move to create a national champion for Norway. But the deal also looks forward, to a time when other oil groups will be looking to huddle together for support. Even at a time of relatively high oil prices, there are still good reasons to merge. Cost-cutting is not the primary motive behind the Statoil/Hydro deal. Statoil CEO Helge Lund says the deal is “much more driven by growth and growth opportunities.” High oil prices have created shortages of skilled staff and equipment. The merged company will have greater access to those scarce resources. Size also helps in finding opportunities. However, in the next shake-up, the most likely targets will be medium-sized companies, that are big enough to make a difference to the company that buys them, but small enough not to present too many regulatory problems. 

$100bn in deals sends US equities to fresh highs

It’s just another merger Monday. More than $100bn in deals helped the S&P to a six-year high and the DJIA to another intra-day record of 12,487.9.

Express Scripts, the pharmacy benefits manager, said it had tabled an offer to buy Caremark for $26bn, after Realogy accepted a $9bn private equity bid and orthopedics company Biomet went to a private equity consortium for $10.9bn. Bankrupt auto parts maker Delphi will get $3.4bn from two private equity investors, Appalossa and Cerberus. Meanwhile investors were still awaiting confirmation that Harrah’s Entertainment would accept a $25bn private equity buyout. Read more

Oil consolidation is accelerating, says Lex

The rise of so-called national oil companies has been punctuated by the sound of doors slamming – most in the face of western energy companies, says Lex.

Consolidation is accelerating in the sector – on Monday Statoil and Norsk Hydro announced a deal to integrate their energy businesses, creating world’s largest offshore operator. With far bigger NOCs flexing their muscles, it makes little sense for Norway’s companies to compete with each other for international assets. Read more