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Equinor (EQNR) SLB & Subsea7 Join Forces for Offshore Projects

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Equinor ASA (EQNR - Free Report) , the Norwegian state-owned energy giant, has announced a strategic collaboration with SLB (SLB - Free Report) and the Subsea Integration Alliance, including OneSubsea and Subsea7 (SUBCY - Free Report) , to advance exploratory efforts in Norway's Wisting field and Canada's Bay du Nord field.

The agreement, which was signed in Stavanger, Norway, marks a significant step forward in the development of these offshore projects. It lays the groundwork for early information exchange, technological innovation and collaborative advantages crucial for ensuring the economic viability of subsea ventures.Once the final investment decision is made, the agreement stipulates that the engineering, procurement, construction and installation work would be directly contracted to the partners.

The central focus of this partnership lies in the dedication to conducting collaborative concept studies for both the Wisting and Bay Du Nord projects. These studies will leverage the collective expertise of Equinor, SLB and the Subsea Integration Alliance to explore innovative approaches and solutions tailored to the unique challenges posed by each project.

Wisting, Norway's most significant untapped oil discovery, and Bay du Nord were both found over a decade ago, with each estimated to hold approximately 500 million barrels of recoverable oil reserves, as stated by Equinor. However, market dynamics and cost concerns led to the postponement of Bay du Nord development in May 2023.

Despite delays, Equinor remains committed to the maturation of the Wisting project, with a target decision expected by the end of 2026.

Zacks Rank & Key Pick

Equinor, SLB and Subsea 7 currently carry a Zacks Rank #3 (Hold) each.

A better-ranked stock in the energy sector is Hess Corporation (HES - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.

The Zacks Consensus Estimate for HES’ 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.


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