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Equinor's Gas Discovery at Gullfaks South to Boost NCS Resource Base
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Key Takeaways
Equinor discovers natural gas at Gullfaks South, potentially strengthening its resource base on the NCS.
EQNR estimates the discovery holds 3.3-10.3M barrels of recoverable oil equivalent.
Equinor's sidetrack well discovery may extend Gullfaks' productive life and support 2026 output growth.
Equinor ASA (EQNR - Free Report) , along with its partners, has made a natural gas discovery at the Gullfaks South field. The field is located approximately 190 kilometers northwest of Bergen, Norway. The exploration well, 34/10-D-4 BH, was drilled as a sidetrack, alongside an existing production well. A sidetrack well involves drilling a wellbore from an existing well rather than drilling an entirely new well. This helps the company reduce costs and shorten timelines associated with exploratory drilling.
The discovery is anticipated to accelerate Equinor’s production growth from the Norwegian Continental Shelf (“NCS”). EQNR, the Norwegian integrated energy company, noted that the gas discovery may contain 0.5-1.6 million standard cubic meters of recoverable oil equivalent. This equates to 3.3-10.3 million barrels of oil equivalent. The company has a strong operating history in the NCS and is developing tie-back projects to increase production from the region. Notably, EQNR expects oil and gas production to grow 3% in 2026.
An Equinor spokesperson highlighted that making hydrocarbon discoveries through this cost-effective exploration effort is a positive development for the company. The additional volumes from the discovery could help extend the productive life of the Gullfaks field. The discovery lies within the existing Gullfaks production license. EQNR is the operator of the Gullfaks field, with a 51% stake. Its partners in the field include Petoro and OMV.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins.
Valero Energyis a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that the refineries can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.
View the Zacks #1 Rank List
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Equinor's Gas Discovery at Gullfaks South to Boost NCS Resource Base
Key Takeaways
Equinor ASA (EQNR - Free Report) , along with its partners, has made a natural gas discovery at the Gullfaks South field. The field is located approximately 190 kilometers northwest of Bergen, Norway. The exploration well, 34/10-D-4 BH, was drilled as a sidetrack, alongside an existing production well. A sidetrack well involves drilling a wellbore from an existing well rather than drilling an entirely new well. This helps the company reduce costs and shorten timelines associated with exploratory drilling.
The discovery is anticipated to accelerate Equinor’s production growth from the Norwegian Continental Shelf (“NCS”). EQNR, the Norwegian integrated energy company, noted that the gas discovery may contain 0.5-1.6 million standard cubic meters of recoverable oil equivalent. This equates to 3.3-10.3 million barrels of oil equivalent. The company has a strong operating history in the NCS and is developing tie-back projects to increase production from the region. Notably, EQNR expects oil and gas production to grow 3% in 2026.
An Equinor spokesperson highlighted that making hydrocarbon discoveries through this cost-effective exploration effort is a positive development for the company. The additional volumes from the discovery could help extend the productive life of the Gullfaks field. The discovery lies within the existing Gullfaks production license. EQNR is the operator of the Gullfaks field, with a 51% stake. Its partners in the field include Petoro and OMV.
EQNR’s Zacks Rank & Other Key Picks
Equinor currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are PBF Energy (PBF - Free Report) , Valero Energy (VLO - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . PBF Energy and Valero sport a Zacks Rank #1 (Strong Buy), and Galp Energia carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins.
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that the refineries can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.