Johan Sverdrup, the Norwegian oil field operated by Equinor ASA EQNR is expected to come online ahead of its scheduled time. The field production start-up is likely to commence operations in October, a month earlier than planned.
Johan Sverdrup, one of the largest discoveries on the Norwegian Continental Shelf (NCS) is estimated to have supplies attributed to 2.7 billion barrels of oil equivalent.
The giant oil field’s day-to-day production is likely to be 440,000 barrels of oil per day (bpd) whereas its peak output is projected to soar 660,000 bpd, accounting for 25% of Norway’s total petroleum production. Per a trading source, the first shipment for Sverdrup oil filed will comprise 11 cargoes in the starting month, resulting in average shipping of 226,000 barrels per day.
The first phase of the Norwegian project is on the verge of completion. In the process, Johan Sverdrup may generate average employment for 3,400 people annually. Further, the project is anticipated to earn NOK 900 billion for the state of Norway during the entire lifetime of the field. The endeavor is predicted to begin the second phase of its production in late 2022.
It is believed that the start-up of Johan Sverdrup’s first phase will help Equinor revive production from its Norwegian fields that have encountered a plunging output over the past year and half due to natural decline and technical issues.
In order to lower the emissions of climatic gases offshore by 80-90%, the field will be run by electrical power, created onshore.
Equinor holds a 42.6% stake in the Johan Sverdrup development while Swedish oil producer Lundin Petroleum AB (who discovered the field in 2010) owns 20%. The remaining interests are held by European supermajors TOTAL SA and BP plc.
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Zacks Rank & Key Picks
Equinor carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include BP Midstream Partners BPMP, Dril-Quip, Inc. DRQ and World Fuel Services Corporation INT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.
Dril-Quip earnings beat the Zacks Consensus Estimate in three of the previous four quarters.
World Fuel Services earnings beat the Zacks Consensus Estimate in all the last four quarters.
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