Equinor EQNR, the Norwegian energy giant, has received regulatory approval to begin exploration drilling in the North Sea using Odfjell Drilling’s Deepsea Atlantic rig. The Norwegian Ocean Industry Authority (Havtil) has granted consent for drilling in block 24/11, which falls under production license 169. This license was awarded in 1991 and remains valid until 2030.
EQNR Moves Forward With North Sea Drilling
Equinor, the operator of the license, holds a 57% ownership stake, while its partners Petoro and Vår Energi control 30% and 13%, respectively. The company plans to drill the 25/11-30 S/A well, targeting the Lit prospect at a water depth of 122 meters. The drilling will be carried out using Odfjell Drilling’s Deepsea Atlantic, a sixth-generation semi-submersible rig designed for deepwater and harsh environments.
Deepsea Atlantic's Proven Track Record With EQNR
The Deepsea Atlantic rig has already played a role in Equinor’s exploration success. It was previously used to drill the Mistral Sør prospect, located approximately 170 kilometers northwest of Kristiansund, which resulted in a discovery estimated to contain 19-44 million barrels of recoverable oil equivalent.
Built in 2009, the Deepsea Atlantic features a dual derrick, dynamic positioning, and an enhanced GVA 7500 design, making it well-suited for North Sea conditions. Under a contract extension, the rig will remain with Equinor until at least the second quarter of 2027.
Equinor’s continued investment in offshore exploration aligns with its strategy to strengthen Norway’s energy sector while expanding its hydrocarbon reserves in one of the world’s most prolific offshore regions.
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 Archrock Inc. AROC, NextDecade Corporation NEXT and W&T Offshore, Inc. WTI. While Archrock presently sports a Zacks Rank #1 (Strong Buy), NextDecade and W&T Offshore carry a Zacks Rank #2 (Buy) 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.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to capitalize on the growing export demand from the United States.
W&T Offshore leverages its strong Gulf of Mexico assets, which offer low decline rates and significant untapped reserves. The company recently expanded its portfolio with six shallow-water field acquisitions, adding substantial proven and probable reserves. Focused on high-return organic projects, WTI has maintained positive cash flows for 27 consecutive quarters.
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