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Equinor (EQNR) to Invest in Statfjord Ost, Boost Oil Recovery
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Equinor ASA (EQNR - Free Report) recently announced plans to boost recovery by 23 million barrels of oil equivalent from the North Sea Statfjord Øst field. Equinor, along with its license partners in the field, will likely invest NOK 3 billion (around $344.2 million) in the project.
Notably, the company submitted the changes in the Plan for Development and Operation of the field to the regulatory authority on Dec 16. The move is expected to boost profitable production from the site and increase value creation for investors. It will also enhance the company’s overall activities in the Norwegian continental shelf, thereby positively impacting the suppliers.
The field is tied back to the Statfjord C platform, which will incorporate some modifications. The new plan requires Equinor to drill four new wells from the existing subsea templates at the site, which will likely take place in the 2022-2024 period. Moreover, a new pipeline will likely be installed for gas lifting. Notably, the move is expected to boost the life of the field to 2040.
The company expects the recovery factor at the site — located 5 kilometers northeast of Statfjord C — to increase to 62% from 56%, following the adoption of the new project. Importantly, the Statfjord Øst field’s original volume was estimated at 415 million barrels of crude oil and it came online in 1994. New production is expected to commence in 2024.
While Equinor has nearly 31.7% stake in the Statfjord Øst Unit, Petoro and a subsidiary of Eni S.p.A. (E - Free Report) hold 30% and 20.6% interest, respectively. The remaining stakes are owned by Spirit Energy Norway, Idemitsu Petroleum Norge and Wintershall Dea Norge.
Price Performance
Equinor’s stock has increased 11.6% in the past six months compared with the 14.3% rise for the industry.
Covanta Holding’s bottom line for 2021 is expected to rise 93% year over year.
Canadian Natural Resources’ sales for 2021 are expected to rise 18% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Equinor (EQNR) to Invest in Statfjord Ost, Boost Oil Recovery
Equinor ASA (EQNR - Free Report) recently announced plans to boost recovery by 23 million barrels of oil equivalent from the North Sea Statfjord Øst field. Equinor, along with its license partners in the field, will likely invest NOK 3 billion (around $344.2 million) in the project.
Notably, the company submitted the changes in the Plan for Development and Operation of the field to the regulatory authority on Dec 16. The move is expected to boost profitable production from the site and increase value creation for investors. It will also enhance the company’s overall activities in the Norwegian continental shelf, thereby positively impacting the suppliers.
The field is tied back to the Statfjord C platform, which will incorporate some modifications. The new plan requires Equinor to drill four new wells from the existing subsea templates at the site, which will likely take place in the 2022-2024 period. Moreover, a new pipeline will likely be installed for gas lifting. Notably, the move is expected to boost the life of the field to 2040.
The company expects the recovery factor at the site — located 5 kilometers northeast of Statfjord C — to increase to 62% from 56%, following the adoption of the new project. Importantly, the Statfjord Øst field’s original volume was estimated at 415 million barrels of crude oil and it came online in 1994. New production is expected to commence in 2024.
While Equinor has nearly 31.7% stake in the Statfjord Øst Unit, Petoro and a subsidiary of Eni S.p.A. (E - Free Report) hold 30% and 20.6% interest, respectively. The remaining stakes are owned by Spirit Energy Norway, Idemitsu Petroleum Norge and Wintershall Dea Norge.
Price Performance
Equinor’s stock has increased 11.6% in the past six months compared with the 14.3% rise for the industry.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Covanta Holding Corporation and Canadian Natural Resources Limited (CNQ - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covanta Holding’s bottom line for 2021 is expected to rise 93% year over year.
Canadian Natural Resources’ sales for 2021 are expected to rise 18% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>