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Equinor (EQNR) to Invest Further in Asgard Low-Pressure Project

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Equinor ASA (EQNR - Free Report) recently announced that it will make more investments in the Asgard license in the Norwegian Sea. The company, along with the partners in the license, intends to spend just below NOK 1.4 billion (around $163 million) in the field to make further developments. Moreover, the company is looking forward to implement the Asgard B low-pressure project.

The low-pressure project is expected to boost output from the current Smørbukk wells. To achieve this target, it awarded Aker Solutions with a NOK 800 million new contract, the scope of which incorporates engineering, procurement, construction and installation of new equipment for Asgard B platform modifications. In December 2019, a front-end engineering and design contract was provided to the same company.

Notably, production in the field commenced in 1999 and the company still expects to produce 400-500 million barrels of oil equivalent (Boe) therein. While the current recovery rate at the field is 50%, it is aiming to reach 60%, which will enable it to generate greater value. The low-pressure production process is crucial to ensure improved recovery from the field, which is expected to begin in 2023.

Equinor is the operator at Asgard, with a 34.57% stake. It has Petoro AS, Eni S.p.A.’s (E - Free Report) affiliate Var Energi and Total E&P Norge AS of TOTAL SE as partners in the license, with 35.69%, 22.06% and 7.68% interest, respectively.

Price Performance

Shares of Equinor have gained 24.9%, outperforming the industry’s 8% rise in the past year.

Zacks Rank & Another Stock to Consider

Equinor currently has a Zacks Rank #2 (Buy). Another top-ranked player in the energy space is ConocoPhillips (COP - Free Report) , holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

ConocoPhillips’ sales for 2021 are expected to increase 54% year over year.

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