Equinor ASA EQNR and Var Energi are evaluating the feasibility of tying back a recent oil discovery to the existing Goliat floating production, storage, and offloading (FPSO) unit in the Barents Sea. This decision came after the appraisal well 7122/8-2 S confirmed oil reserves in the Countach discovery area near the Goliat field, offering potential synergies with established infrastructure.

The well, drilled by the COSL Prospector semi-submersible rig, encountered a 35-meter oil column in the Kobbe Formation and a 217-meter oil column in the Klappmyss Formation. As per initial resource estimates, there are recoverable volumes of 10-52 million barrels of oil equivalent (boe). Though the well was not formation-tested, extensive data acquisition highlighted the reservoir's potential, marking a significant find in the region.

Located near the discovery, the Goliat FPSO has been a key hub for regional oil production since its start in 2016. Oil from the FPSO is offloaded to shuttle tankers for market transport. Plans include gas exports via the Snohvit pipeline to the Melkoya LNG facility. The proposed tie-back would leverage existing infrastructure to minimize development costs and extend the field's operational life, aligning with Equinor and Vår Energi's strategy for sustainable resource development.

Both companies are actively exploring the Barents Sea, with ongoing efforts in production licenses 229 and 1131. The area has yielded promising discoveries, including Rodhette and earlier findings in the Countach area, complementing the broader portfolio. Meanwhile, the Johan Castberg FPSO project, another Barents Sea initiative involving Equinor and Vår Energi, is nearing completion with a revised start-up timeline for early 2025.

With the Countach discovery, Equinor and Var Energi reinforce their commitment to maximizing Barents Sea resources. The collaboration reflects a balanced approach, blending technological expertise with efficient use of infrastructure, as it aims to meet the growing energy demand while maintaining a focus on sustainability. The decision to proceed with the tie-back will likely depend on detailed economic and technical assessments.

This development highlights the potential of the Barents Sea as a critical area for Norway's energy ambitions, supported by partnerships between leading industry players.

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 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. It focuses 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.

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