Equinor announces significant oil and gas discoveries in the North Sea
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Should l Buy EQNR?
Source: WSJ
Equinor ASA's stock rose by 3.00% as it reached a 52-week high.
The company announced the discovery of commercially viable oil in the Troll area and gas in the Sleipner area, with estimates of 4-8 million barrels of oil equivalent and 5-9 million barrels of oil equivalent respectively. These discoveries, located in areas with well-developed infrastructure, will enhance Equinor's production capabilities and maintain high energy deliveries from the Norwegian continental shelf.
This positive development underscores Equinor's strong position in the energy market and its ability to leverage existing infrastructure for future production, contributing to its competitive edge.
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Analyst Views on EQNR
Wall Street analysts forecast EQNR stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 41.120
Low
22.00
Averages
23.89
High
25.79
Current: 41.120
Low
22.00
Averages
23.89
High
25.79
About EQNR
Equinor ASA, formerly Statoil ASA is a Norway-based international energy company. The Company’s purpose is to turn natural resources into energy. Equinor sells crude oil and delivers natural gas to the European market. It is also engaged in processing, refining, offshore wind and carbon capture and storage activities. Equinor ASA has five reporting segments: Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN). The Company has several subsidiaries such as Equinor Nigeria Energy Company Ltd, Equinor Wind Power AS, Equinor International Netherlands BV and Equinor Brasil Energia Ltda.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
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- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
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Response to U.S. Actions: Iran's leadership has issued a lukewarm response to U.S. proposals, signaling a lack of interest in compromise.
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See More
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- Rich Reserves: The Raia field is estimated to hold over 1 billion barrels of oil equivalent in recoverable reserves, with Equinor holding a 35% stake in partnership with Repsol Sinopec Brasil and Petrobras, ensuring a strategic foothold in the Brazilian market.
- Drilling Operations Initiated: Drilling operations have begun on the Valaris DS-17 drillship, with plans to drill six wells in the Raia area at a water depth of approximately 2,900 meters, laying the groundwork for future production.
- Strong Production Capacity: The project will feature a large floating production, storage, and offloading vessel capable of handling over 125,000 barrels per day of condensate and 16 million cubic meters per day of natural gas, with production expected to launch in 2028, potentially meeting 15% of Brazil's natural gas demand.
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See More
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- Project Acquisition: Equinor announced its acquisition of the 230 MW Esquina do Vento onshore wind project in Brazil, which will strengthen its integrated power portfolio in a core market, although financial terms were not disclosed, the project is expected to drive long-term growth potential for the company.
- Equipment Supply Agreement: Vestas will supply 51 turbines for the project, with installation expected to begin in March 2027 and all turbines slated for completion by year-end 2027, ensuring timely project commissioning to meet market demand.
- Long-term Service Agreement: Vestas will also be responsible for operation and maintenance under a 30-year service agreement, which not only ensures the long-term stable operation of the equipment but also provides Vestas with a continuous revenue stream, enhancing its competitive position in the market.
- Market Confidence: Vestas stated that the Esquina do Vento wind project sends a clear signal of confidence in Brazil's wind market and marks another step in the sector's recovery, with the project expected to generate enough electricity to power 520,000 homes, further promoting the adoption of renewable energy.
See More
