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Equinor Awards Contract to Aker Solutions to Modify Troll A Platform

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Equinor ASA (EQNR - Free Report) awarded Aker Solutions a significant contract to enhance the gas production capabilities of the Troll A platform as part of the ongoing Troll Phase 3 development.

The contract, valued between NOK 500 million and NOK 1.5 billion, covers engineering, procurement, construction, installation and commissioning services. This work will focus on modifications to the platform that will support the extraction of gas from the Troll West reservoir, one of Norway's largest sources of natural gas.

The Troll field, located approximately 80 kilometers northwest of Bergen in the North Sea, is a cornerstone of Norway’s gas production, accounting for 10% of Europe’s gas supply. The Troll Phase 3 project targets gas extraction from the gas cap above the Troll West oil column while continuing oil production.

As part of the contract, Aker Solutions will prepare the Troll A platform to process gas from eight new wells drilled at Troll West. The processed gas will then be routed to existing infrastructure, enabling seamless integration with the wider gas network. This follows the previous phase of the project completed in 2021, during which Aker Solutions delivered a new platform module and subsea systems.

In addition to platform modifications, Aker Solutions will install equipment required for cleaning up initial well fluids during the startup of the wells. This crucial step ensures efficient gas production as the new wells come online.

The contract will be managed across several Aker Solutions locations. The company’s Stavanger office in Norway will oversee project management, engineering, procurement and shop engineering, with support from teams in Bergen and Mumbai, India. Construction and prefabrication work will be handled at Aker Solutions' Egersund yard in Norway.

This contract award strengthens Aker Solutions' position in the Troll field, where OneSubsea (in which Aker holds a 20% stake) was previously contracted to deliver the subsea production system for the project. Work under the new contract will begin immediately and is expected to conclude by the end of 2027.

The Troll field continues to be a key asset for Equinor, which recently announced plans to partially electrify the Troll B and C platforms as part of efforts to reduce emissions from offshore operations. This latest Troll Phase 3 project development underscores the field’s critical role in supporting Europe's energy needs while aligning with Norway's sustainability goals.

Price Performance

Equinor shares have outperformed the industry in the past six months. The stock has declined 2.8% compared with the industry’s 5.7% decline.

 

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Zacks Rank & Key Picks

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

Investors interested in the energy sector may look at some better-ranked stocks like MPLX LP (MPLX - Free Report) , Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) , each currently sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.

The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days. The company has a Value Score of B.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at 95 cents. The company has a Value and Growth Score of B. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian acreage, the company’s production outlook seems bright.

The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at 65 cents. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.


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