4 Energy Stock Stories Sparking Mid-Week Chatter

Transocean (NYSE:RIG): Current price $57.49

Transocean’s subsidiary has awarded contracts to Oceaneering International (NYSE:OII) through which for it to supply three subsea blowout preventer control systems. These contracts will contribute more than $40 million to Oceaneering’s Subsea Products backlog. The discrete hydraulic systems will be employed on existing semi-submersible drilling rigs that Transocean is modifying in compliance with the American Petroleum Institute’s recently issued standard API 53, a rule which mandates subsea BOPs with a single shear ram are to be upgraded or replaced. These systems will be made at the Oceaneering Intervention Engineering facility in Houston with deliveries expected in the fourth quarter of 2013 and the first quarter of 2014.


Cliffs Natural Resources (NYSE:CLF): Current price $29.63

On Tuesday, the firm said that it is offering to sell 9 million of its common shares at a par value of 12.5 cents per share, up to 10.350 million shares, should the underwriters exercise their option to buy additional shares. Also being offered are 20 million of its depositary shares, each representing a 1/40th interest in a share of its new mandatory convertible preferred stock.

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Royal Dutch Shell (NYSE:RDSA): Current price $66.88

Perhaps not in 2013, but Shell and other oil firms will return to drill in northern Alaska’s seas, lured by political stability and shallow water. The companies are understandably tired of Middle Eastern turbulence, shocked by Argentina’s nationalization of the Spanish group Repsol’s assets and the Islamist siege of an Algerian gas plant, and are now focusing on unexploited parts of the Arctic. It is true that dilling in the cold, remote seas is technologically difficult and expensive, but fadling reserves elsewhere have forced oil firms to search deeper offshore. Alaskan seas now seem competitive and the prize is an estimated 13 percent of the world’s undiscovered oil and 30 percent of its gas.


Statoil (NYSE:STO): Current price $26.28

The Norwegian operator has revealed its development concept for the Skrugard and Havis discoveries in the Barents Sea, which will entail a floating production unit with pipeline connection to an onshore processing terminal. Statoil means to conduct a joint development of the finds, which contain combined recoverable oil resources of 400 million to 600 million barrels, by employing a subsea system tied into a semi-submersible platform. Oil will be brought to shore though a 280-kilometer pipeline to the proposed terminal at Veidnes, near Norway’s northernmost town of Honningsvåg, at which point it will be stored in mountain caverns before being transported by tanker.


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