Yahoo Finance Equinor (EQNR) Plans to Raise Sverdrup Output Post Capacity Test
Equinor ASA EQNR and the Johan Sverdrup field partners revealed that the North Sea field is capable of producing up to 755,000 barrels per day (b/d). This production volume was confirmed via a capacity test conducted recently.
According to Equinor, the Utsirahyden area field, located 160 km west of Stavanger at a depth of 110-120 meters, achieved a record-high output, which is equivalent to 6-7% of daily oil consumption in Europe.
Equinor’s vice president, exploration and production for Johan Sverdrup, Marianne Bjell and stated that the process capacity test confirms technically very robust facilities and was safely performed with no unwanted incidents.
According to the operator, Equinor and partners Aker BP, Petoro, and TotalEnergies intend to keep oil production around record levels going forward.
Johan Sverdrup has 2.7 billion barrel of oil equivalent (boe) in reserves. The first phase began operations in October 2019, while the second phase in December 2022.
At plateau, the field was initially projected to produce 720,000 b/d of oil, or nearly one-fourth of current Norwegian oil output. The 200 sq. km. field, which yields 31,500 barrels of oil equivalent per day of gas, has some of the lowest CO2 emissions of any oil field, 80-90% below the global average.
Zacks Rank & Key Picks
Equinor currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Sunoco LP SUN, Murphy USA Inc. MUSA and Dril-Quip, Inc. DRQ. While Sunoco sports a Zacks Rank #1 (Strong Buy), both Dril-Quip and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past seven days.
Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector. DRQ’s balance sheet has zero debt, highlighting a sound financial position.
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