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Statoil (STO) Discovers Oil in Campos Basin, Offshore Brazil

Norwegian oil giant Statoil ASA STO, along with partners Repsol Sinopec and Petrobras, has discovered oil in Campos Basin, offshore Brazil.

The appraisal well has found a hydrocarbon column of 175 meters and reached a total depth of 6,230 meters. The well was successfully tested and produced about 16 million standard cubic feet of gas and 4,000 barrels per day of oil.

This is the fourth well to be appraised in the license following the Seat, Gavea and Pão de Açucar (PdA) discoveries. The Seat-2, PdA-A1 and PdA-A2 appraisal wells were drilled and tested by the consortium during 2013–15.

The appraisal activities in BM-C-33 have been finalized by the consortium after Gavea A1. The consortium will now examine the sub-surface data and evaluate lean and cost-saving development concepts.

Currently, Statoil holds 35% stake in BM-C-33, while Repsol Sinopec Brasil is the operator with a stake of 35% and Petrobras holds 30% equity interest. Beginning from the third quarter of 2016, Statoil will take over the operatorship of the license, subject to the approval from Brazilian authorities ANP. Repsol Sinopec Brasil is a joint venture of Spain's Repsol and China's Sinopec.

In recent times, Statoil has delivered strong exploration results and added significantly to its resource base by making several high impact discoveries. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania as well as Australia, thereby paving the way for long-term growth.

Currently, Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, FutureFuel Corp. FF and Suncor Energy Inc. SU. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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SUNCOR ENERGY (SU): Free Stock Analysis Report
 
STATOIL ASA-ADR (STO): Free Stock Analysis Report
 
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
 
FUTUREFUEL CORP (FF): Free Stock Analysis Report
 
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