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Equinor (EQNR) Signs Deal for Norway's Wisting Oil Development

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Equinor ASA EQNR entered an agreement with Lundin Energy, wherein the former will continue its operatorship in the operating phase of the Wisting oil development in Norway.

The latest deal follows Lundin Energy’s stake increase in the Wisting oil development by acquiring an additional 25% interest from OMV. Lundin Energy currently has a 35% working interest in the project.

Wisting will be one of the largest development projects in Norway in the coming years. The field is situated in the Hoop area of the Barents Sea, about 190 miles from the Norway mainland. Equinor has been the operator of the Wisting development phase since 2019. The other partners are Petoro and Idemitsu, holding 20% and 10% interest, respectively.

Equinor will ensure the safe and efficient operations of the Wisting field by collaborating with the license partners. EQNR will continue its Wisting operatorship following an investment decision for the project, which is expected to take place by 2022 end. Before this, the Wisting license partners are planning to complete an impact assessment in the first quarter of 2022.

The agreement strengthens the existing relationship between the companies and establishes a solid alliance for exploration activities in the areas close to the Wisting field. Lundin Energy will also serve as an operator in the exploration phase for the PL1133 and PL 1134 production licenses. Lundin Energy will collaborate with Equinor by the secondment of its employees into the crucial technical and operating positions within the project.

In November, Equinor hired Aker Solutions for the front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field. The FEED contract involves an option for engineering, procurement, construction, and integration of the topside for the FPSO. Equinor also hired several companies to work on the project.

Company Profile & Price Performance

Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.

Shares of EQNR have outperformed the industry in the past six months. The stock has gained 26.8% compared with the industry’s 2.4% 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 carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.

PetroChina Company Limited PTR is the largest integrated oil company in China. PetroChina is one of the largest producers of crude oil and natural gas in the world. The company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas.

PetroChina is expected to see an earnings growth of 411% in 2021. PTR currently has a Zacks Style Score of A for Value. In the first six months of 2021, PetroChina’s upstream segment posted an operating income of RMB 30.9 billion, nearly tripling from the year-ago profit of RMB 10.4 billion.

SM Energy SM is one of the most attractive players in the exploration and production space. It engages in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. SM’s operations are focused in the Permian basin and the South Texas & Gulf Coast region. It has a total of 443,188 net acres under its possession, of which 33.5% is developed.

SM Energy’s earnings for 2021 are expected to surge 708.7% year over year. SM currently sports a Zacks Style Score of A for both Growth and Momentum. The upstream energy player beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 126.3%, on average.

RPC, Inc. RES is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas shale plays in the United States. The company derives strong and stable revenues via diverse oilfield services, including pressure pumping, coiled tubing and rental tools.

RPC is expected to see an earnings growth of 100% in 2021. RES witnessed three upward revisions in the past 60 days. With no debt load, the company had cash and cash equivalents of $80.8 million at the third-quarter end. This reflects its strong balance sheet, which will provide the company with massive financial flexibility. It allows RPC to remain afloat during tough times.


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