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Equinor (EQNR) to Boost Johan Sverdrup Crude Oil Production

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Equinor ASA (EQNR - Free Report) recently announced plans to boost crude oil from its leading Johan Sverdrup field. The company intends to increase output from the field to 500,000 barrels of oil per day (bpd) by 2020-end, indicating a rise of 60,000 bpd from its initial capacity.

The company tested the plant capacity this month for a potential production increase, which yielded positive results. The execution of the latest plan will mark the second output capacity increase from the field. Notably, the current production capacity at the site stands at 470,000 bpd. The Johan Sverdrup is a field with low emissions and operating costs. The full-field development break-even price is under $20 per barrel.

The phase two development of the field is on schedule, which is expected to commence production in fourth-quarter 2022. A total production capacity of 720,000 bpd will be attained from the Johan Sverdrup field. To ensure high recovery of reserves, Equinor is using water injection at the site. Moreover, it expects higher water injection capacity to enable the company to boost output to more than 500,000 bpd by mid-2021.

Notably, Johan Sverdrup is expected to have resources of 2.7 billion barrels of oil equivalent. It is marked as the third-largest oil field in the Norwegian continental shelf. While Equinor holds a 42.6% operating stake at the field, Lundin Energy Norway and Petorohave 20% and 17.36% interests, respectively. The remaining stake in the field is held by Aker BP and TOTAL SE .

Price Performance

Equinor’s stock has increased 0.2% in the past six months compared with 8.8% rise of the industry it belongs to.

Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) and Global Partners LP (GLP - 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.

Antero Resources’ bottom line for 2021 is expected to rise 30.5% year over year.

Global Partners’ bottom line for 2020 is expected to rise 150.5% year over year.

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