Equinor ASA (EQNR - Free Report) has achieved another milestone by commissioning the Visund Nord IOR (improved oil recovery) project two months ahead of schedule. In addition, it has commissioned the project well below the estimated budget.
Moreover, the project did not report any serious Health, Safety and Environment (HSE) incidents. It has been successfully brought online within 21 months of the license partners choosing the concept. The costs, which were initially estimated at NOK 1.5 billion when the investment decision was made, got reduced to NOK 1.3 billion during the execution phase.
The Visund field receives 13.3 million new barrels of oil from the project, up 6% from the initial estimate. Visund Nord IOR, a fast-track development, remained focused on consistency and continued upgradation throughout the project. It also provides synergies as the existing infrastructure is used to pipe the oil. The new template is similar to the Visund C template, located 70 meters away.
Visund C was delivered by TechnipFMC plc (FTI - Free Report) , which was also responsible for everything on the seabed through the EPCI contract. This also implies that the company has been in charge of engineering, procurement, construction and installation.
Odfjell Drilling’s Deepsea Atlantic drilling rigs were used to drill the two wells.
Equinor is the operator of the Visund license, holding 53.2%. The other partners include Petoro A/S, ConocoPhillips (COP - Free Report) and RepsolNorge A/S holding 30%, 9.1% and 7.7%, respectively.
Notably, Visund Nord IOR has set an example for such future projects on the Norwegian continental shelf, which are delivered at lower costs, but provide longer field life and jobs on the existing fields.
Over the past year, Equinor’s shares have surged 30% compared with the industry’s 20% rise.
Zacks Rank & Stocks to Consider
Equinor currently carries a Zacks Rank #3 (Hold).
Another better-ranked player in the same sector is Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
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