|Bid||18.00 x 1800|
|Ask||18.50 x 4000|
|Day's Range||18.07 - 18.31|
|52 Week Range||16.24 - 26.75|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||7.32|
|Forward Dividend & Yield||1.04 (5.73%)|
|1y Target Est||23.09|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Equinor ASA (OB:EQNR...
The giant Equinor (EQNR)-operated Johan Sverdrup oil field's production is expected to hit an all high wherein it will constitute one third of the total oil produced in Norway.
Equinor (EQNR) is expected to receive EUR 500 million from the Arkona wind farm divestment, almost double of its investment in the same.
Transocean's (RIG) vital technological breakthrough via its operational and safety upgrade aims at lowering the usual fuel consumption by 14%, thereby curbing the toxic NOx and CO2 emissions.
(Bloomberg) -- The timing of Norway’s biggest oil project in decades is a bit awkward.Equinor ASA kicked off its massive Johan Sverdrup field, a rare mega-project in the aging North Sea, at a moment where the pressure on the oil industry and governments to act against the climate crisis has never been greater. The field is set to produce crude for 50 years, well beyond the time where the world’s greenhouse-gas emissions should be net zero to avoid warming of more than 1.5 degrees.“It’s understandable that it could be viewed as a paradox in times like these,” said economics professor Klaus Mohn, the rector of the University of Stavanger, the country’s oil capital. “But Norway has stubbornly maintained a separation between its oil policy on one side and climate policy on the other.”Sverdrup has already been a boon for Norway’s offshore industry, and now promises to deliver a big production boost for its owners and the country as a whole. Yet, it comes the year after Equinor changed its name from Statoil, to reflect increased investments in renewable energy, and as political debate about the post-oil era in Norway is accelerating.Equinor anticipated the apparent contradiction on its website, with the main banner reading: “We’re celebrating the opening of the Johan Sverdrup oil field. But what about the climate?” The platforms will receive electricity from Norway’s onshore grid, dominated by hydropower, meaning each barrel of oil will generate 0.67 kilos of carbon dioxide in the production phase, compared to averages of about 9kg in Norway and 18kg globally.Equinor and Norway have long used Sverdrup as a prime example of why they should be the last to stop producing oil, even betting that barrels produced with lower emissions will become a competitive advantage in a world where higher prices on carbon pollution will reduce demand for crude.Emissions from the production process account for just a fraction of the life cycle of a barrel of crude. If all of Sverdrup’s oil is burned, it could produce more than 1.1 billion tons of carbon dioxide -- more than 20 times Norway’s total annual emissions, based on a U.S. government estimate of how much CO2 is generated from burning a barrel of oil.Sverdrup’s startup is a “fantastic day for Equinor and state coffers,” economics professor Knut Einar Rosendahl said on Twitter. “Not such a fantastic day for global climate-gas emissions.”Discovered in 2010, in an area that had been disregarded by most explorers, the site started production on Saturday and is set to reach 440,000 barrels a day by next summer. That represents a 33% addition to Norway’s crude output in the first half of this year, a hike not seen since the 1980s.It’s hard to overstate the importance of Sverdrup for its owners, the Norwegian state and the country’s entire oil industry.Confidence about the field’s startup was key for state-controlled Equinor’s decision to kick off a long-awaited $5 billion buyback program in September, and Sverdrup will be a driving force in the company’s production growth in the next years. It also helped to transform Lundin Petroleum AB -- which made the initial discovery -- and Aker BP ASA into two of the most important companies in Norway’s oil industry.With as much as 3.2 billion barrels in reserves, it’s Norway’s biggest discovery since the 1970s. In an illustration of how unusually large the field is, Aker BP considered going to court over a few decimals in ownership.Equinor expects Sverdrup to contribute about $100 billion to Norway’s state coffers. The field’s timing was also perfect for the Nordic country: green-lighted in 2015, just after a historic collapse in the crude market, it offered a lifeline to the embattled oil-service industry, even if the market slump forced suppliers to cut prices.For Equinor and the other owners, the timing was even better. The discount on services and equipment allowed them to slash investments by as much as 44% compared to the highest early estimates, giving the field an overall break-even price of less than $20 a barrel.Sverdrup was originally scheduled to start production in December this year, but Equinor advanced the date to October. The field will reach maximum output of 660,000 barrels a day in its second phase in 2023.To contact the reporter on this story: Mikael Holter in Oslo at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Helen RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The cost of developing two major Norwegian oil and gas fields has increased due to the complexity of the projects, with the start of production delayed for one of them, the government and operator Equinor said on Monday. Equinor said the investment forecast for the Martin Linge field had risen to 56.1 billion Norwegian crowns (£5.01 billion) from an estimated 47.1 billion, with its start-up delayed until the third quarter of 2020 from the first quarter. "Martin Linge is a complex project, and the scope of work has increased.
BP plc (BP) sealed an estimated $9.61 billion worth of gas deal with a South Korean buyer, while ExxonMobil (XOM) signed an agreement to divest its oil and gas business in Norway for $4.5 billion.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
Natural gas company Tellurian (TELL) signed an MOU with India's Petronet to sell 18% stake in its proposed Driftwood LNG terminal and export 5 million tons of LNG a year from it for 40 years.
(Bloomberg) -- A continent-sized bay south of Australia is set to become a battleground, pitting the nation’s powerful environmental lobby against the world’s biggest offshore petroleum company in a test that could prove a watershed moment for big oil.Australia’s offshore petroleum regulator is due to decide by Nov. 14 whether to approve Norwegian energy giant Equinor ASA’s plan to drill exploration wells in the Great Australian Bight. Early estimates suggest the Bight could hold the equivalent of 1.9 billion barrels of oil, though it’s been lightly explored and experts believe the true figure could be much higher.Environmentalists argue that it makes no sense to drill more than 2 kilometers (1.2 mile) under the seabed in the notoriously rough waters of a unique marine environment while fossil fuels are rapidly being eclipsed by renewable energy.“The idea of opening up a new oil and gas field in the Bight, which wouldn’t really start delivering oil for at least 10 years if not closer to 15, is madness in today’s era of needing to reduce carbon pollution,” said Sarah Hanson-Young, a Greens Party senator and leading campaigner against Bight development.Equinor, formerly known as Statoil, has pledged its support for the Paris climate accord, and advocates for exploration in the Bight argue that the gas reserves would help reduce the need for more-polluting coal-fired energy. Environmental lobby group Carbon Tracker says an oil industry pipeline of some $50 billion in new projects isn’t compatible with the Paris agreement to limit a rise in global temperature to less than 2 degrees Celsius.“Most scenarios still show oil as being an important product for many decades to come,” Equinor said in an email. “Producing fields are being depleted, and even in a 2 degrees scenario, current discovered commercial resources still leave a gap to meet the expected future demand.” The company said its exploration activities were complemented by plans to reduce its emissions by investing in renewable energy.“If the exploration is successful, there are significant economic benefits in an environment where Australia’s oil production has been declining,” said Matthew Doman, director of external affairs at the Australian Petroleum Production & Exploration Association, an industry group, adding that APPEA supported the Paris climate targets.A study commissioned by the group in 2018 said an oil industry in the Bight could create over 2,000 jobs in South Australia and boost the country’s GDP by A$5.9 billion ($4 billion) a year. The government’s Resources Minister Matt Canavan said earlier this year that offshore oil exploration is a “national priority.”Brand DamageThe Bight has been a prospect that oil majors have struggled to understand. Some, including Chevron Corp. and BP Plc, have walked away in recent years. More than 85% of the species found in the Bight are unique to the region, which is a migratory path for the endangered southern right whale.Equinor has long experience of deep-sea drilling in the North Sea and the company acquired two exploration permits in the Bight in 2017 as part of a swap deal with BP. If it gets regulator approval, it plans to start drilling in late 2020.“Equinor has safely drilled more than 65 deepwater wells and operated for decades in stronger winds, higher waves and colder waters than the Great Australian Bight,” the company said in a 1,500-page draft environment plan released in February.The company will face strong opposition. Australia’s environmental lobby has been growing in recent years, highlighted by the long battle with India-based Adani Group over development of the massive Carmichael coal mine in Queensland. While the project was eventually approved, it was drastically reduced in size after the Indian group failed to get external financing for the development amid intense lobbying.Another Norwegian company, Petroleum Geo-Services ASA, in August postponed to 2020 seismic testing in the Bight that had been planned for this year, a move welcomed by environmental groups and the local fishing industry.Hanson-Young said it’s ironic that the charge into the Bight is being led by Norway, a strong advocate for climate change that sought to divest its sovereign wealth fund’s oil assets.“This is brand damage for Norway,” she said. “You can’t on the one hand be getting all the accolades for divesting and taking climate change seriously and then on the other hand a state-owned company goes down south and opens up a massive new carbon bowl.”Hanson-Young said Equinor has yet to fully understand the strength of community opposition and she questioned the economic benefits, noting that most of the oil and profits would likely be exported. She said most of the jobs created would be fly-in, fly-out roles for technical experts unlikely to relocate permanently to South Australia.To contact the reporter on this story: James Thornhill in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Adam MajendieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With its St.Malo waterflood project, Chevron (CVX), a leading producer in the Gulf of Mexico, is making its first appearance in the deepwater Wilcox trend.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The world’s biggest offshore wind park planned off the coast of England will probably in the next decade generate power cheaper than by burning coal.A number of offshore wind projects won contracts to sell power at guaranteed prices in a U.K. auction Friday. The price of 39.65 pounds per megawatt-hour ($49.70) was 31% below the level in a similar auction two years ago.The plunge highlights how offshore wind, which only a few years ago was a niche technology more expensive than nuclear reactors, is changing the economics of energy around the world. Both utilities and, increasingly, energy majors, are planning to spend $448 billion through 2030 on an eightfold capacity increase, according to BloombergNEF.Projects from developers including SSE Plc, Equinor ASA and Innogy SE won offshore wind power-purchase contracts that will have the capacity to generate as much as 5.5 gigawatts of power, the government said. That includes a joint SSE-Equinor project off England’s east coast to build the biggest single offshore wind park in the world.“The auction results today show offshore wind is in line with current power prices - it is already competitive with existing fossil fuel plants, let alone new fossil fuels,” said Deepa Venkateswaran, an analyst at Sanford C. Bernstein & Co. in London. “In the next auction in 2021 we will see costs go well below that of existing fossil fuel plants.”One of the winning areas, known as Dogger Bank, is off the coast of Yorkshire. Three projects by Equinor and SSE were approved in the zone for a total generation of 3.6 gigawatts. Another 1.4 gigawatt project developed by Innogy was also approved in the same area.Equinor’s success at the auction is a key step in its transition to becoming a broader energy company than just an oil and gas major. The state-controlled Norwegian company has a target of investing as much as 20% of its capital in new energy solutions by 2030.“Dogger Bank, together with the recent award for Empire Wind in the U.S., positions Equinor as an offshore wind major,” said Pal Eitrheim, Equinor’s executive vice president for new energy solutions. “These projects provide economies of scale and synergies, making us an even stronger competitive force in offshore wind globally.”Equinor Races Ahead of Big Oil Pack in Bet on Offshore WindSSE winning capacity will accelerate its shift away from a traditional utility to an energy company focused on renewable power and grids. The Scottish company has agreed to sell its U.K. domestic supply business to Ovo Energy Ltd.The agreements give the projects a guaranteed buyer through what’s known as a contracts-for-difference mechanism. If the wholesale rate is lower than the set price, the government pays the developer the difference. If it’s higher, the company pays it back. U.K. month-ahead power is trading at 42.05 pounds per megawatt-hour, down 34% this year.Even as wind power moves away from a reliance on government subsidies, the contracts could still play an important role going forward. The guarantee helps developers secure financing and also make the assets more attractive to institutional investors who want reliable returns. The next U.K. auction round is set to take place in 2021.The Crown Estate said Thursday it plans to open the first contest in a decade for sites around the British coast that could draw as much as 20 billion pounds of investment in offshore wind.For SaleThe contracts also open up a track for investors to take stakes in some of these projects. Earlier this year, Iberdrola sold a stake in its 714-megawatt East Anglia One project to Macquarie Group Ltd. for 1.63 billion pounds. Projects that have the backing of government-supported purchase agreements are often more attractive to investors who favor the guaranteed prices.Innogy will likely sell a stake in it 1.4 gigawatt Sofia Offshore Wind Farm development in the Dogger Bank Area, according to Richard Sandford, the company’s director of offshore investment and asset management. The company hasn’t decided how big of a stake it will sell, but plans to make a final decision sometime next year. SSE also said it will look to sell equity in a 454-megawatt project in Scotland that it won a contract for in the auction.(Updates with analyst comment in fifth paragraph.)\--With assistance from Mikael Holter.To contact the reporter on this story: William Mathis in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Lars Paulsson, Rob VerdonckFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Under Orn discovery, Equinor ASA (EQNR) is expected to hold 40% interest while its partners Aker BP and Wellesley will own 30% stake each.
Equinor ASA's (EQNR) Mariner Blend crude production is likely to generate 70,000 barrels of crude per day in the short term while the production on average is envisioned to be roughly 55,000 bpd.
Norway's Equinor has begun cleaning up an onshore oil spill at its South Riding Point terminal in the Bahamas, which was damaged by Hurricane Dorian, and said on Thursday it will step up the operation in the coming days. Equinor had previously said aerial surveillance spotted a suspected spill in open waters 70 to 80 km (43 to 49 miles) northeast of the terminal, where 1.8 million barrels of oil equivalent were being stored at the time the hurricane hit. A spill response team has started to recover oil from the ground and move it into tank storage, with recovery expected to be stepped up over the coming days, Equinor said in a statement.
Output from Equinor ASA's new Johan Sverdrup oil field in the North Sea will rise to 660,000 barrels per day (bpd) by 2022, from 440,000 bpd by early 2020, a company executive said on Monday. Output from the field will start up in October and the company is in the process of issuing a sales tender for crude from the field this week, Equinor's Senior Vice President of Marketing and Trading Tor Martin Anfinnsen told reporters on the sidelines of the Asia Pacific Petroleum Conference.