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Equinor (EQNR) Gets Permission to Increase Gas Exports to Europe

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Equinor ASA (EQNR - Free Report) and partners obtained permission from Norway to increase gas exports from two offshore fields amid shortage concerns of Europe gas supplies.

The Norway government increased the production permits for the Oseberg and Troll fields by a combined two billion cubic meters (bcm). The increase represents nearly 2% of Norway's annual pipeline gas exports. As a result, production in the Oseberg field will increase to six bcm from five bcm, while Troll production will increase to 37 bcm from 36 bcm.

Equinor is the operator in both fields. Other energy companies with interests in both fields are TotalEnergies (TTE - Free Report) , ConocoPhillips (COP - Free Report) and state-owned energy firm Petoro. Royal Dutch Shell plc holds a stake in only Troll.

In June, Equinor took an initiative to determine and develop concepts to increase production and exports to the Europe market. This resulted in the enhanced production permits from the Ministry of Petroleum and Energy for both fields.

About half of the gas is still unutilized even after 25 years of exports from Troll. To further develop the area, Equinor completed the Troll phase 3 project, which is estimated to have recoverable reserves of 347 bcm of gas. The total recoverable gas volume remaining in Troll is estimated to be 715 bcm.

Following the Phase 3 project completion, Equinor is increasing production and expects to reach plateau production from Oct 1. The Troll phase 3 project will extend the life of the Troll A platform and the Kollsnes processing plant beyond 2050 as well as the plateau production period by 5-7 years.

The production permits will enable Equinor to produce more gas from the fields to supply the tight Europe market. The company is working to increase exports from its fields on the Norwegian Continental Shelf.

Company Profile & Price Performance

Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.

Shares of the company have outperformed the industry in the past six months. Its stock has gained 23.7% compared with the industry’s 3.4% growth.2

 

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Zacks Rank

The company currently has a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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