Harbour Energy Receives Permit for Havstjerne Carbon Storage Project

Zacks03-19

Harbour Energy plc HBRIY, an independent oil and gas company based in the United Kingdom, has been granted a permit by the Norwegian Offshore Directorate to drill a well in the Norwegian Sea. The permit has been given for wellbore 9/6-1, which lies within the production license (PL) EXL006. The exploratory well is part of the carbon storage exploration license at PL EXL006, also known as the Havstjerne development.

Harbour Energy is the operator of PL EXL006, which holds a 60% stake. The remaining 40% stake is owned by its partner in the license, Stella Maris CCS. The company was awarded the production license in May 2023. The Havstjerne development is situated approximately 100 km to the southeast of Egersund in the southern part of the Norwegian Sea.

Per the permit conditions, HBRIY’s work commitment includes drilling the exploratory well by the first quarter of 2025. The well will be drilled using the Deepsea Nordkapp semi-submersible rig operated by Odfjell Drilling. Following its completion, the concept selection for the development of the carbon storage unit will take place.

Harbour Energy mentions that the concept for the development of the saline aquifer storage unit is slated to be finalized by 2025. After the finalization of the concept, the company should submit a field development plan to the Norwegian Energy Ministry. In addition to this, the company will also be required to apply for an exploitation license.

The Havstjerne development appraisal plans include an assessment of the transport and injection methods to be used for the storage of carbon dioxide. The company plans to evaluate unique ship-based transport to be used for transferring CO2 to an offshore injection unit. HBRIY is aiming for a 5 mtpa injection rate for the storage of CO2.

If successfully executed, Harbour Energy’s saline aquifer storage reservoir at the Havstjerne development will contribute to Norway’s carbon capture and storage initiatives while helping reduce emissions from its operations.

HBRIY’s Zacks Rank and Other Key Picks

HBRIY 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.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. The company's proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean burning fuel continues to grow, and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.

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