Equinor (EQNR) Commences Massive Troll Phase 3 Gas Production
Equinor (EQNR), with its extended Troll A life span, is now well placed to generate massive profits from natural gas production.
Equinor ASA EQNR recently announced that offshore Troll phase 3 production has commenced in the North Sea. The field came online in 1995. With the commencement of the third phase, the Troll A platform and Kollsnes processing facility’s production life is expected to extend beyond 2050.
Equinor labels the Troll phase 3 as one of its most profitable projects as it has a breakeven price of $10 per barrel. Also, its low carbon dioxide emissions of less than 100 grams per barrel of oil equivalent are praiseworthy. The company has managed to reduce emissions from the project as the Troll A platform is powered by electricity from shore.
The phase three will produce from the Troll West gas cap and it has a recoverable resource of 347 billion cubic metres of gas. The gas cap is placed over the oil column in Troll West. Oil and gas production from the site will continue simultaneously. The project includes eight wells, divided into two templates, which are connected to the Troll A platform through an umbilical.
The company expects investment for the project to amount to NOK 8 billion (around $920.8 million). Troll is one of the largest gas fields of Norway that caters to almost 8% of the European Union’s gas consumption. As economies are looking for emission reduction, the demand for natural gas is expected to rise over the coming years. Equinor, with its extended Troll A life span, is well placed to generate massive profits from natural gas production.
The project, which was earlier scheduled to commence in the second quarter, faced delays due to the coronavirus pandemic. Equinor is the operator with a 30.58% stake in the third phase. It has Petoro AS, and subsidiaries of Royal Dutch Shell plc (RDS.A), TotalEnergies SE TTE and ConocoPhillips COP as partners in the project with 56%, 8.10%, 3.69% and 1.62% interest, respectively.
Price Performance & Zacks Rank
Shares of the company have gained 12.9% compared with the industry’s 1.3% growth in the past six months.
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough 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
ConocoPhillips (COP): Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
Equinor ASA (EQNR): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research