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Equinor Submits Breidablikk Development Plan in North Sea

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Equinor ASA (EQNR - Free Report) recently announced that it has decided to develop the Breidablikk oil discovery, located in the North Sea. The investment in the Norwegian field is expected to amount to NOK 18.6 billion (around $1.95 billion). The plan for development and operation of the Breidablikk field was expected to be submitted on Sep 28 to the Minister of Petroleum and Energy.

To preserve jobs during the pandemic, the Norwegian parliament introduced tax reliefs for the oil sector in June. Following this, several oil and gas investments were announced.

Markedly, Equinor touted the Breidablikk field to be one of the largest undeveloped oil finds in the Norwegian continental shelf. The company expects the field to contain 200 million barrels of oil. It has Petoro AS, ConocoPhillips (COP - Free Report) and VårEnergi AS — a unit of Eni S.p.A. (E - Free Report) — as partners in the project.

Instead of traditional platforms, the Breidablikk field will likely have only subsea installations. The company is expected to use remote-control technology at the field to reduce costs. It will take advantage of the existing Grane oil platform and its infrastructure through tie-back options. The produced oil from Breidablikk will be processed at the Grane platform, and then reach to the Sture terminal for storage as well as shipping through the Grane oil pipeline.

Importantly, the Breidablikk field will likely help the company to decrease carbon dioxide intensity of the Grane field. At a water depth of 130 meters, the Breidablikk field is situated northeast of the Grane field. The pipelaying contract for the Breidablikk project was won by TechnipFMC plc (FTI - Free Report) in early 2020.

Notably, production from the Grane field is declining. As such, the commencement of production from the Breidablikk field will enable it to maintain activity level on the Grane oil platform. Production from the field is expected to come online in first-half 2024. The development plan for the Breidablikk field includes the drilling of 23 oil-producing wells from four subsea templates, which are controlled from Grane.

Price Performance & Zacks Rank

The stock has jumped 26.7% in the past six months compared with 14.4% rise of the industry it belongs to. Currently, Equinor has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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