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Equinor (EQNR) Resumes Production at Brazil's Peregrino Field

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Equinor ASA (EQNR - Free Report) began producing oil from the Peregrino field in Brazil after more than two years since production at the offshore field was suspended.

The Peregrino Phase 1 development involves a floating production storage and offloading (FPSO) unit, which is supported by two wellhead platforms — Peregrino A and B. Equinor expects Peregrino Phase 1 to hold 180 million barrels in the remaining reserves.

In April 2020, production at the Peregrino offshore field was suspended after detecting a ruptured water-injection riser during a leak test. Since then, Equinor has carried out a major program of maintenance, upgrades and repairs on the FPSO vessel.

Located in the Campos Basin, Peregrino is the largest field operated by Equinor outside of Norway. Equinor operates the field with a 60% interest. It is the first of several major field developments in Brazil.

Equinor aims to increase production and reduce emission intensity at the Peregrino offshore field. Investments in technology, equipment and maintenance helped restart the production, increase the overall capacity of the field, and plan for the commencement of the Peregrino Phase 2 project.

Beside this, Equinor made significant investments to reduce carbon dioxide emissions from the Peregrino field, in line with its low-carbon strategy. Once operational, Phase 2 is expected to lower absolute emissions by 100,000 tons of carbon dioxide per year from the field.

Notably, Equinor plans to lower emissions by utilizing digital solutions to optimize energy consumption and gas-driven power turbines to significantly reduce and replace diesel consumption.

Equinor has also installed a wellhead platform, Peregrino C, which is part of the Peregrino Phase 2 project. The project will extend the duration and value of the field and add 250-300 million barrels. First oil from the new platform is expected in the third quarter of 2022.

Price Performance

Shares of Equinor have outperformed the industry in the past six months. The stock has gained 25.1% compared with the industry’s 6.3% growth.

 

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Zacks Rank & Other Stocks to Consider

Equinor currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eni SPA (E - Free Report) , based in Rome, Italy, is among the leading integrated energy players in the world. Eni expects its 2022 cash flow from operations, before changes in working capital at replacement cost, to grow to €16 billion.

Eni has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. Eni is expected to see earnings growth of 134.4% in 2022.

Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy firm. CVE increased the quarterly base dividend to 10.5 Canadian cents per share, suggesting a 200% increase from 3.5 Canadian cents per share.

Cenovus has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. CVE is expected to see earnings growth of 272.8% in 2022.

Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. PSX hiked its quarterly dividend to 97 cents per share, representing an increase of 5% from the prior quarter.

Phillips 66 has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. PSX is expected to see earnings growth of 154.2% in 2022.


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