Yahoo Finance Transocean (RIG) to Support Equinor's Barents Sea Endeavours
Transocean Limited RIG owned semi-submersible rig, Transocean Enabler, has received the green light from the Norwegian regulator to be used by Equinor ASA EQNR for production drilling/completion and exploration drilling in the Barents Sea. Equinor has received the permission from the Norwegian Ocean Industry Authority (Havtil) to proceed with drilling operations at Johan Castberg field.
The Transocean Enabler rig, which is responsible for the execution of the project, is a CAT D (GVA 4000 NCS) type rig. It was built in 2016 at the Daewoo Shipbuilding & Marine Engineering in South Korea and can accommodate up to 130 people. The rig has been used by Equinor for drilling activities for several years.
The latest award to the Transocean Enabler semi-submersible rig involves a 19-well contract, along with eight additional well options. The estimated total contract value is $415 million, out of which $295 million has been allotted to the fixed part of the contract.
Johan Castberg is an offshore field, situated approximately 100 kilometers northwest of the Snøhvit field in the Barents Sea. It encompasses three discoveries, Skrugard, Havis and Drivis, which were proven between 2011 and 2013.
The plan for development and operation of these discoveries was approved in 2018, as all of them will be developed together. The development approach involves deploying a Floating Production, Storage, and Offloading vessel, with additional subsea solutions, which include 18 horizontal production wells and 12 injection wells. Production from the field is expected to start this year.
Zacks Rank and Key Picks
Currently, both RIG and EQNR carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy SM and Hess Corporation HES, which presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
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