Back to top

Image: Bigstock

Equinor Gets Green Light for Norwegian Sea Drilling With Transocean Rig

Read MoreHide Full Article

Key Takeaways

  • Equinor gained clearance to drill exploration well 6407/1-B-2 H in the Norwegian Sea.
  • Drilling will start in October 2025 using Transocean Encourage's advanced rig.
  • Operations will cover Tyrihans, Verdande, Andvare, and Vigdis, linking to Norne field.

Equinor ASA (EQNR - Free Report) ), the Norwegian state-owned energy giant, has received official clearance to commence new drilling operations in the Norwegian Sea next month, utilizing Transocean Ltd’s (RIG - Free Report) advanced semi-submersible rig, Transocean Encourage, per an Offshore Energy report. This initiative marks a significant step in Norway’s continued exploration and development of its offshore resources.

Drilling Permit

The Norwegian Offshore Directorate has granted Equinor a permit for exploration well 6407/1-B-2 H under production license 1121. This license, first awarded in April 1982, remains valid until the end of 2029, ensuring long-term prospects for the project. Equinor operates this license and holds a leading 36.247% stake, with the remainder held by TotalEnergies EP Norge (29.143%), Petoro (22.52%), and Vår Energi (12.09%).

Rig Deployment

Drilling is scheduled to begin in October 2025, with operations led by the sixth-generation, fully winterized Transocean Encourage rig — an automated, harsh environment platform delivered in 2016 and capable of hosting up to 130 personnel. Transocean Encourage secured a nine-well contract for the Norwegian Continental Shelf in 2023, with six additional option wells, reinforcing its key role in this region’s offshore industry.

Field Coverage and Future Connections

The current assignment will target several fields, including Tyrihans, Verdande, Andvare, and Vigdis, with plans to integrate Verdande and Andvare into the Norne field infrastructure. These efforts are part of Equinor’s strategic push to unlock new hydrocarbon resources on the Shelf.

Technical Innovations

Transocean Encourage’s GVA 4000 NCS design incorporates advanced automation and winterization features tailored for challenging North Sea conditions, underscoring both safety and operational efficiency for upcoming exploration campaigns.

Through strategic partnerships and cutting-edge technology, Equinor’s latest campaign aims to strengthen the Norwegian Sea’s role as a hub for energy innovation and production.

EQNR’s Zacks Rank and Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Global Partners LP (GLP - Free Report) , Antero Midstream Corporation (AM - Free Report) and Enbridge, Inc. (ENB - Free Report) . While Global Partners and Antero Midstream sport a Zacks Rank #1 (Strong Buy) at present, Enbridgecarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners, a Delaware limited partnership established by affiliates of the Slifka family, operates one of the most extensive terminal networks for refined petroleum products in New England. The company ranks among the region’s largest wholesale distributors of distillates, including home heating oil, diesel, kerosene, gasoline, residual oil, and bunker fuel, catering to wholesalers, retailers, and commercial customers throughout New England.

GLP’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 345.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 23.2% year-over-year increase.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term take-or-pay contracts, which protect it from price swings or changes in shipping volumes.

ENB’s earnings beat estimates in three of the trailing four quarters and met in the remaining one, delivering an average surprise of 5.61%.

Published in