Equinor (EQNR) Begins Statfjord Ost Oil Production Project
Equinor ASA EQNR and its partners announced that production has begun at the Statfjord Ost life extension project in the Norwegian North Sea. The project aims to increase hydrocarbon output from the mature field by 26 million barrels of oil equivalent.
According to EQNR, despite inflation and the weakening of the Norwegian krone, the project was successfully completed with sound safety results and is anticipated to be delivered within the estimated costs, while also beginning six months earlier than expected.
Equinor’s senior vice president for Field Life Extension, Camilla Salthe said that this move proves the importance of extending the life of mature fields and maximizing value creation from the existing infrastructure on the Norwegian continental shelf. The project contributes to extending the life of Statfjord C to 2040. The profitability is high, and the value of increased production equals around NOK 20 billion at the current oil price. She added that this is a good use of resources that could provide ripple effects for Norwegian suppliers.
Per the company, three wells will be drilled in addition to the two new wells that have been drilled from the existing subsea templates. The project involves modifying Statfjord C and laying a new pipeline for gas lift to the subsea wells since Statfjord Ost is located five kilometres from Statfjord C in the Norwegian North Sea. Statfjord Ost started production in 1994.
This project is anticipated to increase the field's oil recovery rate from 58 to 63%.
Zacks Rank & Key Pick
Equinor currently has a Zack Rank #4 (Sell).
Some better-ranked players in the energy sector are USA Compression Partners, LP USAC, currently sporting a Zacks Rank #1 (Strong Buy), and Global Partners GLP and Evolution Petroleum Corporation EPM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 30 days.
Global Partners is a Delaware limited partnership, formed by affiliates of the Slifka family. The partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. GLP is one of the largest wholesale distributors of distillates. It has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 30 days.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields, and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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