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Equinor ASA EQNR, the Norwegian integrated energy firm, announced that the company has begun oil and gas production at the Halten East development in the Norwegian Sea. The company had received the approval for this development just two years prior from the Norwegian authorities. The Halten East development is being developed as a tie-in, leveraging the infrastructure and processing capacity at the Åsgard B platform.
The Halten East tie-in development includes six gas discoveries. Furthermore, the development also covers three additional prospects that may be developed in the future using the existing infrastructure at Åsgard B. The Norwegian authorities greenlighted the plan for development and operation (PDO) for Halten East in February 2023.
Following the approval, the first well Gamma came online just two years later and began gas production, per the production plan. The first phase of the project comprises six wells from five discoveries. The second phase of the project which shall include a sidetrack well and the possibility of drilling three additional wells is planned for 2029. The total cost for this development, including both phases,is estimated to be approximately $843 million (NOK 9 billion).
The Halten East development is located within the Kristin-Åsgard area. The discovery suggests that it holds recoverable reserves of approximately 100 million barrels of oil equivalent (boe). Halten East reserves mainly hold gas and condensate. The gas extracted from the wells will be transported to Kårstø from the Åsgard B platform. From Kårstø, the gas will be exported to the European markets through pipelines.
Equinor is the operator of Halten East holding a 69.5% stake in the field. The other partners in the field include Vår Energi holding a 24.6% stake and Petoro with 5.9%. Equinor noted the Halten East project has been launched amid a high-demand scenario for piped gas in Norway. The project is expected to contribute to regional energy security. The company highlights that the Halten East project is being developed per schedule and within the expected cost estimates in an inflationary market environment. This underscores the company’s strong project management capabilities, required to deliver energy solutions under budget and on time.
EQNR’s Zacks Rank and Other Key Picks
EQNR currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and NextDecade Corporation NEXT. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and NextDecade carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.