Equinor (EQNR) Commences Production From Norway's Bauge Field
Equinor ASA EQNR commenced production from the Bauge subsea field in the southern Norwegian Sea.
Bauge is one of two satellite development projects planned to feed into the recently upgraded Njord facilities. The Bauge satellite project came online after delaying for more than a year.
The Bauge field is tied back to the Njord platform, with estimated recoverable reserves of 50 million barrels of oil equivalent. The Bauge field involves two oil producers in a subsea template, pipelines and an umbilical connecting the wells to the Njord A platform. Equinor operates the field with a 42.5% interest.
Bauge was discovered in 2013. The plan for the field’s development and operation was approved in June 2017. The Norwegian content of the Bauge project is well more than 90%. The project was delivered within the budget of NOK 4.6 billion.
Oil produced from the Bauge field is carried from the Njord A platform to the Njord Bravo floating storage and offloading unit. From there, it is transported to the market by tankers. Then again, the gas from the field is supplied to the Asgard Transport System through a pipeline from Njord A to the Karsto terminal.
After six years of upgradation activities, Equinor resumed production at the Njord field at the end of 2022. The upgrade was initially expected to be completed two years ago. However, it has turned out to be more challenging than expected partly due to the pandemic.
Per Equinor, Njord will produce for another 20 years, intending to produce another 250 million barrels of oil equivalent over the field’s lifetime. Notably, Bauge shows how a minor discovery can become a profitable development.
Price Performance
Shares of EQNR have underperformed the industry in the past six months. The stock has declined 14.2% against the industry’s 11.1% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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