Equinor ASA (EQNR - Free Report) recently announced plans to drill several new wells at its much-delayed Martin Linge oil and gas field located in the North Sea. As many of the old wells at the site lacks the necessary barriers, the new wells will likely ensure safe operations when production commences.
The Martin Linge project’s operatorship was taken over by Equinor in 2018 from TOTAL SE (TOT - Free Report) , which scheduled the project’s completion in 2016. Equinor bought a 51% stake in the project from TOTAL, increasing its holding to 70%. Norwegian state-run energy company, Petoro holds the remaining 30% interest in the project. The project is now expected to come online next year.
Equinor conducted in-depth analysis of the wells at the field, located 42 kilometres west of Oseberg. This led the company to take the decision of digging new wells. An independent research conducted by Petoro further supports Equinor’s claims. The wells are at a water depth of 115 meters. Notably, the company operates the field primarily from a land location, which allows it to have limited offshore workers. Around three new wells are expected to be drilled at the site for a cost of 2 billion Norwegian crowns.
As of now, the old wells are considered safe and the company will keep those plugged and under watch till the new wells reduce pressure from the formation. The field has three reservoirs, among which the main reservoir is at 1750 meters depth and is structurally complex in nature. It will be using the Maersk Intrepid drilling rig at the site.
The stock has jumped 23.8% in the past six months compared with 4.8% rise of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Currently, Equinor has a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include Royal Dutch Shell plc (RDS.A - Free Report) and Cimarex Energy Co. (XEC - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shell’s bottom line for 2021 is expected to skyrocket 113.5% year over year.
Cimarex Energy’s sales for 2021 are expected to rise 11% year over year.
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