Equinor Delays Arctic Oilfield Startup to Early 2025

Equinor ASA EQNR announced a delay in the start-up of its Johan Castberg oilfield in the Barents Sea, pushing the timeline to January or February 2025 due to adverse weather conditions. Originally scheduled to commence operations by the end of 2024, the project has faced setbacks despite nearing its completion phase.The Johan Castberg oilfield is one of Equinor’s most significant Arctic projects, with recoverable volumes estimated to be in the range of 450-650 million barrels of crude oil. Developed from the discoveries of Skrugard, Havis and Drivis, the field is poised to produce for 30 years. At its peak, it is expected to deliver 220,000 barrels per day (bpd) of crude oil.The production will be carried out using a Floating Production, Storage, and Offloading vessel, which was anchored at the site in September 2024 and hooked to the subsea facility. Despite these advancements, weather challenges have delayed final preparations.Equinor’s executive vice president for Projects, Drilling, and Procurement, Geir Tungesvik, emphasized the company's commitment to addressing the delays. He noted that operations had been impacted by adverse weather conditions and confirmed that the Johan Castberg project is on track to begin in early 2025, targeting January or February.Equinor, alongside partners Var Energi and Petoro, has drilled 14 wells at Johan Castberg, 12 of which are already prepared for production. This readiness is sufficient to bring the field to its plateau production capacity.The Johan Castberg project is expected to enhance Norway’s oil production significantly. The Norwegian Petroleum Directorate anticipates a 5.2% increase in oil liquids production in 2025, partly attributed to Johan Castberg’s contribution.Equinor views this field as a gateway to further opportunities in the Barents Sea, opening new avenues for oil recovery in the Arctic. However, Norwegian authorities stress the importance of additional exploration to counterbalance an anticipated decline in oil and gas production in the 2030s.The delay underscores the complexities of operating in Arctic conditions but highlights Equinor’s resilience in advancing critical energy projects.EQNR’s Zacks Rank & Key PicksEQNR currently carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.Only $1 to See All Zacks' Buys and SellsWe'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, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TechnipFMC plc (FTI): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks