Equinor ASA EQNR received approval from the Norway Ministry of Petroleum and Energy for new investments in the North Sea’s Oseberg oil fields to increase natural gas exports to Europe from 2026.
In November 2021, Equinor and partners submitted an application in the Oseberg license for the development and operation of the Oseberg field. The company plans to invest NOK 10 billion in infrastructure upgrades on the field.
Equinor expects the development plan to increase production at Oseberg by 31.2 million cubic meters of oil equivalent or 196 million barrels of oil equivalent. Of the total, 87% will likely be gas. Most of the gas will be delivered to the Europe markets. Equinor operates the Oseberg field with a 49.3% interest.
The latest development will enable Equinor and partners to significantly increase gas production in the Oseberg field in the future, while reducing emissions by an estimated 320,000 tons per year. The redevelopment will make Oseberg Norway’s third-largest natural gas field, measured in remaining reserves.
Oseberg is likely to become one of the primary gas producers on the Norwegian Continental Shelf. When it came online, the field was expected to produce one billion oil barrels. Equinor now expects the field to produce 3.2 billion barrels of oil.
Oseberg is anticipated to produce 100 billion cubic meters of gas by 2040. The yearly production will be equivalent to the energy volumes for about a quarter of all Norwegian hydropower production.
Shares of Equinor have underperformed the industry in the past six months. The stock has gained 2.7% compared the industry’s 5.2% growth.
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Zacks Rank & Other Stocks to Consider
Equinor currently carries a Zack Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that also presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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