EQNR's North Sea Wells Indicate Strong Potential for Carbon Storage

Equinor ASA EQNR, a Norwegian integrated energy company, has drilled two wells, namely 32/7-1 and 32/4-4, in the North Sea. The appraisal wells are located approximately 20 kilometers to the east of the Troll platform. Equinor Low Carbon Solutions, a division of Equinor, mentioned that the drilling results show signs that the reservoir is well-suited for injecting and storing carbon dioxide (CO2).

Equinor used the DeepSea Stavanger drilling rig to conduct drilling operations. DeepSea Stavanger, part of Odfjell Drilling’s rig fleet, is a sixth-generation semi-submersible drilling rig, suitable for deepwater and harsh environmental conditions. The two wells, 32/7-1 and 32/4-4, were drilled in the Gamma and Alpha regions, respectively. The company noted that these two wells could potentially become a carbon storage unit for EQNR’s Smeaheia project.

The company has acquired vast amounts of data from these two wells, along with sample collections from the reservoirs and cap rocks. Four injection tests have been conducted for each of the two wells, yielding positive preliminary results. The data gathered will be analyzed in detail, and the results will be carefully evaluated. The results will play a crucial role in making future investment decisions on the Smeaheia storage project.

The 32/7-1 and 32/4-4 wells were the first ones to be drilled in exploration licence EXL 002, which was awarded to the Norwegian integrated energy firm in June 2022. These are also the second and third wells drilled in the Norwegian Continental Shelf to understand and evaluate the feasibility of commercial CO2 storage in the region. The wells have been permanently plugged and abandoned.

EQNR’s Zacks Rank and Key Picks

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

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