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Equinor Approves Johan Sverdrup Field Expansion With $1.29B Investment
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Key Takeaways
Equinor approved a $1.29B investment for phase 3 of the Johan Sverdrup field in the Norwegian Sea.
New subsea templates and AI-optimized layouts aim to increase recoverable reserves by up to 50M boe.
Phase 3 aims to raise the recovery rate to 75% and sustain high production from EQNR's key asset.
Equinor ASA (EQNR - Free Report) , a Norwegian integrated energy company, announced that it has approved an investment of $1.29 billion (13 billion NOK) for the Johan Sverdrup field in the Norwegian Sea. The company, alongside its partners in the field, plans to develop phase 3 of the Johan Sverdrup field, which is anticipated to boost the recoverable reserves from the field by 40-50 million barrels of oil equivalent (boe).
The expansion of this field will include the installation of new subsea equipment to support the increase in recoverable reserves from Johan Sverdrup. This project shall involve two new subsea templates, one in the Kvitsøy area and the other in the Avaldsnes area. Each subsea template will include six well slots, totaling eight wells, consisting of seven oil production wells and one water injection well. The new subsea infrastructure will be tied back to the existing structures and pipelines, connecting them to the P2 platform. The extracted hydrocarbons will be processed and exported from P2. The production of the new subsea infrastructure is expected to begin in the fourth quarter of 2027.
AI-Driven Planning Yields $13M in Project Savings
Equinor mentioned that it utilized artificial intelligence for the development of the third phase of the Johan Sverdrup field. The study and analysis of field layouts and well paths were carried out using AI, which resulted in optimal usage of resources and cost savings. EQNR also mentioned that it has saved $13 million (NOK 130 million) during the development of this project.
Phase 3 to Boost Field Recovery Rate
The Johan Sverdrup field is located 160 kilometers west of Stavanger, in the North Sea. It lies within the Utsira High area, and the water is approximately 110-20 meters deep. The phase 3 project intends to raise the expected recovery rate of the field to approximately 75%. At present, the recovery rate from the field is around 66%. Equinor noted that the third phase of development at Johan Sverdrup is crucial for maintaining a high production rate from the field in the coming years.
EQNR is the operator of the field, holding a 42.6% interest. Its partners include Aker BP, Petoro and TotalEnergies EP Norge, holding 31.5733%, 17.36%, and 8.44% stakes, respectively. The partners at Johan Sverdrup have notified the Norwegian authorities as per the existing plan for development and operation, which is contingent on government approval.
EQNR stated that this project will build on the existing subsea infrastructure and technologies used in phases 1 and 2 of Johan Sverdrup. By leveraging existing infrastructure, the company aims to make the development cost-efficient and faster to bring online. Increasing recoverable volumes from the Johan Sverdrup field, western Europe’s largest producing oilfield, should also support Europe’s energy security.
Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
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Equinor Approves Johan Sverdrup Field Expansion With $1.29B Investment
Key Takeaways
Equinor ASA (EQNR - Free Report) , a Norwegian integrated energy company, announced that it has approved an investment of $1.29 billion (13 billion NOK) for the Johan Sverdrup field in the Norwegian Sea. The company, alongside its partners in the field, plans to develop phase 3 of the Johan Sverdrup field, which is anticipated to boost the recoverable reserves from the field by 40-50 million barrels of oil equivalent (boe).
The expansion of this field will include the installation of new subsea equipment to support the increase in recoverable reserves from Johan Sverdrup. This project shall involve two new subsea templates, one in the Kvitsøy area and the other in the Avaldsnes area. Each subsea template will include six well slots, totaling eight wells, consisting of seven oil production wells and one water injection well. The new subsea infrastructure will be tied back to the existing structures and pipelines, connecting them to the P2 platform. The extracted hydrocarbons will be processed and exported from P2. The production of the new subsea infrastructure is expected to begin in the fourth quarter of 2027.
AI-Driven Planning Yields $13M in Project Savings
Equinor mentioned that it utilized artificial intelligence for the development of the third phase of the Johan Sverdrup field. The study and analysis of field layouts and well paths were carried out using AI, which resulted in optimal usage of resources and cost savings. EQNR also mentioned that it has saved $13 million (NOK 130 million) during the development of this project.
Phase 3 to Boost Field Recovery Rate
The Johan Sverdrup field is located 160 kilometers west of Stavanger, in the North Sea. It lies within the Utsira High area, and the water is approximately 110-20 meters deep. The phase 3 project intends to raise the expected recovery rate of the field to approximately 75%. At present, the recovery rate from the field is around 66%. Equinor noted that the third phase of development at Johan Sverdrup is crucial for maintaining a high production rate from the field in the coming years.
EQNR is the operator of the field, holding a 42.6% interest. Its partners include Aker BP, Petoro and TotalEnergies EP Norge, holding 31.5733%, 17.36%, and 8.44% stakes, respectively. The partners at Johan Sverdrup have notified the Norwegian authorities as per the existing plan for development and operation, which is contingent on government approval.
EQNR stated that this project will build on the existing subsea infrastructure and technologies used in phases 1 and 2 of Johan Sverdrup. By leveraging existing infrastructure, the company aims to make the development cost-efficient and faster to bring online. Increasing recoverable volumes from the Johan Sverdrup field, western Europe’s largest producing oilfield, should also support Europe’s energy security.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Oceaneering International (OII - Free Report) . While both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.