Statoil Set To Build The World's First Floating Wind Farm

Norwegian energy giant Statoil ASA (NYSE:STO) is on track to proceed with the construction of the world’s first floating offshore wind farm, Hywind, as it has been granted a lease to use the seabed off the east coast of Scotland.

Five 6-megawatt turbines will be part of the Hywind project. Per a statement issued by the company, the turbines will float on steel tubes secured against the seabed about 25 kilometers away from the town of Peterhead.

Statoil was awarded the lease to commence construction by the U.K.’s Crown Estate. Thoughonshore and near-shore works are intended to start later this year, the turbines will be installed in 2017.

Floating turbines facilitate the installation of offshore wind farms in deeper waters, thereby opening up the industry to areas such as Japan and Mediterranean countries. In 2009, a floating turbine was set up by Statoil off the coast of Norway for tests. Notably, the Hywind project will be the first multi-turbine array.

Statoil is a Norway-based major international integrated oil and gas company. The company operates in four segments: Exploration and Production Norway, Natural Gas, International Exploration and Production and Manufacturing and Marketing.

Statoil’s endeavor to improve recovery of resources in mature fields is commendable. The company has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the Norwegian Continental Shelf (NCS). We believe that Statoil is well positioned to sustain its steady production growth for the next few years on the back of its large resource base at NCS.

Currently, Statoil carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the oil and gas sector include CVR Refining, LP (NYSE:CVRR) , Transocean Partners LLC (NYSE:RIGP) and Braskem S.A. (NYSE:BAK) . All these sport a Zacks Rank #1 (Strong Buy).


TRANSOCEAN PTN (RIGP): Free Stock Analysis Report

STATOIL ASA-ADR (STO): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

CVR REFINING LP (CVRR): Free Stock Analysis Report

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