We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equinor's Sverdrup Field Elevates Plateau Production Target
Read MoreHide Full Article
Equinor ASA (EQNR - Free Report) -operated Johan Sverdrup oil field in Norway, which came online ahead of schedule in October 2019, saw growth in its oil production to around 430,000 barrels per day (bpd) by March-end.
With this solid surge in production, the giant oil field hopes to achieve plateau production in the first phase during the first half of May ahead of schedule. Its phase one plateau production target of 440,000 bpd, which was earlier projected for this summer, is now modified to be 470,000 bpd. Also, its anticipated maximum output of 660,000 bpd in the second phase is improved to 690,000 bpd. The company aims to attain a recovery factor of a minimum 70%.
The aforementioned good news comes with WTI crude price plunging to $20.09 yesterday, marking the lowest settlement since February 2002. However, this Norway-based company’s lower production cost of less than $2 a barrel together with the breakeven price of less than $20 for full-field development of Johan Sverdrup makes it resistant to vulnerable oil prices.
Per partner Lundin Petroleum, Equinor commenced drilling the first of its two new production wells in January 2020 to attain the first-phase plateau after witnessing output from its eight pre-drilled wells in 2019.
The oil field, which is one of the largest discoveries on the Norwegian Continental Shelf (NCS), makes the North Sea field western Europe’s largest oil production hub. The output is generated from the vast swathes across Equinor’s Troll and ConocoPhillips’ (COP - Free Report) Ekofisk fields in Norway besides Britain’s Buzzard, which is operated by a unit of China’s CNOOC Limited (CEO - Free Report) .
It is believed that this start-up of Johan Sverdrup’s opening phase is helping Equinor revive the spurt in production from its Norwegian fields that suffered a massive setback over the past year and half due to natural decline and technical issues.
In order to check the toxic emissions offshore by 80-90% while delivering valuable barrels, the field will be run by onshore-regulated electrical power.
Equinor currently has a Zacks Rank #3 (Hold) and a 42.6% stake in the Johan Sverdrup development process while Swedish oil producer Lundin Petroleum AB (who discovered the field in 2010) owns 20% interest. Remainder of the shares is held by TOTAL SA , Aker BP and Petoro. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Equinor's Sverdrup Field Elevates Plateau Production Target
Equinor ASA (EQNR - Free Report) -operated Johan Sverdrup oil field in Norway, which came online ahead of schedule in October 2019, saw growth in its oil production to around 430,000 barrels per day (bpd) by March-end.
With this solid surge in production, the giant oil field hopes to achieve plateau production in the first phase during the first half of May ahead of schedule. Its phase one plateau production target of 440,000 bpd, which was earlier projected for this summer, is now modified to be 470,000 bpd. Also, its anticipated maximum output of 660,000 bpd in the second phase is improved to 690,000 bpd. The company aims to attain a recovery factor of a minimum 70%.
The aforementioned good news comes with WTI crude price plunging to $20.09 yesterday, marking the lowest settlement since February 2002. However, this Norway-based company’s lower production cost of less than $2 a barrel together with the breakeven price of less than $20 for full-field development of Johan Sverdrup makes it resistant to vulnerable oil prices.
Per partner Lundin Petroleum, Equinor commenced drilling the first of its two new production wells in January 2020 to attain the first-phase plateau after witnessing output from its eight pre-drilled wells in 2019.
The oil field, which is one of the largest discoveries on the Norwegian Continental Shelf (NCS), makes the North Sea field western Europe’s largest oil production hub. The output is generated from the vast swathes across Equinor’s Troll and ConocoPhillips’ (COP - Free Report) Ekofisk fields in Norway besides Britain’s Buzzard, which is operated by a unit of China’s CNOOC Limited (CEO - Free Report) .
It is believed that this start-up of Johan Sverdrup’s opening phase is helping Equinor revive the spurt in production from its Norwegian fields that suffered a massive setback over the past year and half due to natural decline and technical issues.
In order to check the toxic emissions offshore by 80-90% while delivering valuable barrels, the field will be run by onshore-regulated electrical power.
Equinor currently has a Zacks Rank #3 (Hold) and a 42.6% stake in the Johan Sverdrup development process while Swedish oil producer Lundin Petroleum AB (who discovered the field in 2010) owns 20% interest. Remainder of the shares is held by TOTAL SA , Aker BP and Petoro. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>