Equinor ASA EQNR, the Norwegian energy major, has obtained a key drilling permit for an exploration well in the Norwegian North Sea, signaling continued momentum in offshore energy activity. The permit, granted by the Norwegian Offshore Directorate, allows the company to drill wellbore 35/11-31 S within production license 090.

The drilling operation will be carried out using the COSL Innovator, a semi-submersible rig operated by COSL Drilling Europe. This unit, built in 2012, is capable of operating in water depths of up to 750 meters and is scheduled to begin drilling in June 2025.

EQNR to Drill Under Long-Term COSL Contract

Equinor awarded COSL Drilling Europe a two-year contract for the Innovator rig in August 2023, with operations set to begin in the second quarter of 2025. The contract also includes options for a three-year extension, underlining EQNR’s longer-term offshore drilling plans.

EQNR has a 45% operating stake in the license, while Vår Energi and Inpex Idemitsu Norge holding 40% and 15%, respectively. The license, initially awarded in March 1984, is valid through the end of 2040.

EQNR Expands Exploration as Norway Backs More Activity

This permit follows another recently awarded license to Equinor for the wellbore 7220/5-4, which will be drilled using the COSL Prospector rig next month. The approvals reflect Norway’s push for expanded exploration and production. The Norwegian government recently announced additional acreage for the upcoming APA 2025 licensing round, building on last year’s offering and supporting the country’s long-term energy strategy.

With robust government backing and access to advanced offshore rigs, Equinor continues to solidify its role as a key player in the evolving North Sea energy landscape.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Energy Transfer LP ET and RPC Inc. RES. Subsea 7 sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.

Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer’s systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line.

Story Continues

The Zacks Consensus Estimate for ET’s 2025 EPS is pegged at $1.44. The company has a Value Score of A.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.

The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.

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