Equinor ASA (EQNR Quick QuoteEQNR - Free Report) is looking to divest a 28% stake in Statfjord field, one of the largest oil fields on the Norwegian Continental Shelf, per a Reuters report.

Statfjord is an offshore oil and gas field that straddles the Norwegian and British continental shelves. The field is situated in the Tampen area of the northern North Sea. Equinor has been operating the field since January 1987.

The Statfjord area involves the main field and various satellite fields — Statfjord North, Statfjord East and Sygna. Equinor also plans to divest minority stakes in those connected fields. Notably, the value of the divestiture could reach up to $500 million.

Equinor currently has 78.6% ownership of Statfjord, 45% of Statfjord North, 43.3% of Statfjord East and 43.4% of Sygna. Following the divestiture, the company will remain a stakeholder in the fields.

Statfjord has been producing oil and natural gas for more than 40 years. The field had 107 million barrels of oil equivalent left by the end of 2021, 50% of which are gas reserves.

Per the Norwegian Petroleum Directorate’s data, Statfjord produced 38,000 barrels of oil equivalent per day (Boe/d) last year, with gas accounting for more than a third of the total production. Statfjord North, Statfjord East and Sygna produced nearly 16,000 Boe/d of mainly oil the same year.

In 2020, Equinor decided to extend production from the field toward 2040. The production at Statfjord A, scheduled for decommissioning in 2022, had been extended to 2027, while those of Statfjord B and C platforms were deferred beyond 2035. Oil from Statfjord is delivered through shuttle tankers, while gas is piped to the St Fergus terminal in Britain.

Equinor’s endeavors to improve the recovery of resources in mature fields are commendable. The company has operations across all major hydrocarbon-producing regions of the world, with a strong focus on the Norwegian Continental Shelf.

Price Performance

Shares of Equinor have outperformed the industry in the past six months. The stock has gained 21.8% compared with the industry’s 10.1% 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 presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Eni SpA (E Quick QuoteE - Free Report) is among the leading integrated energy players in the world. Eni raised its share buyback after its profits surged amid rising oil and natural gas prices. The company increased its share buyback program by €1.3 billion to an annual total of €2.4 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 and Growth, and B for Momentum. Eni is expected to see earnings growth of 165.9% in 2022.

Marathon Petroleum Corporation (MPC Quick QuoteMPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. The company repurchased shares worth $4.1 billion in the May-July 2022 period and has now completed more than 80% of its target to buy back common stock worth $15 billion.

Marathon Petroleum 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 and Growth. MPC is expected to see earnings growth of 745.7% in 2022.

Suncor Energy, Inc. (SU Quick QuoteSU - Free Report) is Canada's premier integrated energy company. The company recently hiked its dividend by 12% to 47 Canadian cents per share (after doubling it previously) and increased the buyback authorization to roughly 10% of its public float.

Suncor 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. SU is expected to see earnings growth of 214.2% in 2022.