Equinor ASA’s shares took a dip in premarket trading on Tuesday despite the company announcing a new gas and condensate discovery in the Norwegian Sea. The discovery was made in development well 6406/2-L-2 H, located 260 kilometers southwest of Brønnøysund. This well is part of the Lavrans discovery, currently in the development stage.
The Transocean Spitsbergen rig successfully drilled the well in production license 199 within the Haltenbanken Vest Unit in the Norwegian Sea. Preliminary estimates suggest the discovery holds between 2-4 million standard cubic meters (Sm3) of recoverable oil equivalent.
This discovery comes amidst Equinor’s ambitious plans to invest heavily in offshore oil and gas projects in Norway. The company has pledged to invest between 60-70 billion Norwegian crowns ($5.7-$6.7 billion) annually until 2035. This ambitious plan includes drilling 20-30 exploration wells annually over the next decade and supplying 40 billion cubic meters of gas to Europe annually until 2035.
However, the company’s recent decision to cancel its investment in Vietnam’s offshore wind sector has raised eyebrows and dealt a blow to the nation’s green energy aspirations. This move highlights the complex balancing act that energy companies face as they navigate the transition to a cleaner energy future.
Investors interested in gaining exposure to Equinor can consider the SGI Enhanced Global Income ETF (GINX) and Keating Active ETF (KEAT).
Despite the new discovery, Equinor shares are down 0.48% at $24.83 premarket at the last check. This decline suggests that investors are cautiously evaluating the company’s long-term strategy and the potential impact of its recent decisions on its future growth.
