Equinor ASA EQNR received 39 production licenses on the Norwegian Continental Shelf (“NCS”) from the Norway Ministry of Energy in the most recent Awards in Predefined Areas round.
Of the total,18 production licenses are located in the North Sea, 13 in the Norwegian Sea and eight in the Barents Sea. Equinor operates 14 of the licenses that were awarded and is a partner in 25.
The licenses will provide fresh opportunities for Equinor and its partners to further develop the NCS as an essential energy region. The awarded licenses are crucial for sustaining long-term activity and contributing to energy security in the European and the U.K. energy transition.
Equinor is engaged in operating or participating in 20-30 exploration wells on the NCS. The company focuses about 80% of its exploration efforts in areas near existing infrastructure and in well-understood geological areas. The rest are dedicated to developing new ideas, leveraging the continuous evolution of geological understanding in offshore areas.
Norway has granted 62 licenses for exploration acreage in its offshore seas as part of its efforts to sustain natural gas production. These licenses were distributed among 24 different companies and 16 of them were given operatorships for the permits. Among the licenses, 29 are situated in the North Sea, 25 in the Norwegian Sea and eight in the Barents Sea.
Equinor operates 35 offshore platforms in Norway, which are known for low production emissions. The existing infrastructure, which includes processing and export facilities, is largely paid off. This allows for cost-effective and swift development of discoveries with minimal greenhouse gas emissions.
Equinor is aligning with the energy transition by updating its NCS infrastructure. EQNR’s strategy involves electrification and continuous efforts to decrease greenhouse gas emissions. The exploration of discoveries in brownfield areas is not anticipated to raise production and transportation emissions. Equinor is committed to incorporating low-emission technological solutions in development projects.
The company’s commitment aligns with the Paris Agreement’s goals, ensuring that the addition of production aligns with their broader energy transition plan. These recently acquired production licenses underscore EQNR’s commitment to sustainable energy development, innovative exploration, and its contribution to the energy security of Europe and the U.K.
Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP SUN is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. Sunoco has a core competency in terms of its history of disciplined expense management.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.
Oceaneering International, Inc. OII is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.
Enbridge Inc. ENB is a leading energy infrastructure company. The company plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.
The Zacks Consensus Estimate for ENB’s 2023 and 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.