Equinor ASA EQNR has received a permit from the Norwegian Offshore Directorate (“NOD”) to drill an exploration well in the Barents Sea. The well will be drilled in the same license zone as the Johan Castberg oilfield. The permit involves a wellbore 7220/7-CD-1 H, which lies within the production license (PL) 532. The NOD approved the permit on Feb. 7, 2025.

The drilling project on the Skred prospect will be executed using the Transocean Enabler semi-submersible rig. The Transocean Enabler rig boasts an automated drilling control technology and is well suited for operating in harsh environments, typical of the Norway Continental Shelf. The drilling activity is scheduled for April 2025. Equinor holds a 46.3% working interest in PL 532. Other partners in the block include Vår Energi, with a 30% interest, and Petoro, holding a 23.7% interest.

In its 2024 financial results, Vår Energi hinted that the Skred prospect could potentially hold an estimated 30 million barrels of oil equivalent (gross basis). The exploration well is intended to find new oil and gas reserves in the region that could contribute to the region’s energy requirements in the future, given that the development of the resources is commercially viable.

EQNR’s Zacks Rank and Key Picks

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

Some better-ranked stocks from the energy sector are Sunoco LP SUN, SM Energy SM and Archrock Inc. AROC. Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, while Archrock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The increased production, combined with the favorable oil price environment, is expected to positively contribute to its bottom line.

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.

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