Equinor ASA EQNR and its partners have announced a major investment of over NOK 21 billion (~$2 billion) in the Fram Sør development, a new subsea oil and gas project in the North Sea. The plan for development and operation was officially submitted to Norway’s minister of Energy, Terje Aasland, marking a milestone in enhancing Europe’s energy security through increased production from the Norwegian Continental Shelf (“NCS”).
EQNR’s Fram Sør to Deliver 116 Million Barrels of Energy
Fram Sør, located around 20 kilometers north of the Troll C platform, is expected to recover approximately 116 million barrels of oil equivalent, 75% of which is oil. Production is slated to begin by the end of 2029, with oil routed to Mongstad and gas exported to Kollsnes via the Troll infrastructure.
The development consolidates several discoveries in the Troll-Fram area, notably Echino South (2019) and Blasto (2021), alongside two smaller finds. Together, they will be tied back to the existing Fram and Troll facilities, ensuring robust profitability and efficient use of infrastructure.
EQNR Touts Low Emissions and Technological Innovation
One of the standout features of Fram Sør is its ultra-low carbon footprint. The project’s CO2 intensity is estimated at just 0.5 kg per barrel of oil equivalent, far below the NCS average of 8 kg and the global industry average of 16 kg, according to IOGP 2023.
This is largely due to its host platform, Troll C, being powered from shore, significantly cutting emissions. In addition, Fram Sør will be the first development on the NCS to deploy fully electric subsea Christmas trees, eliminating hydraulic fluid usage and enhancing environmental safety and monitoring.
EQNR’s Fram Sør to Support 4,500 Jobs, NOK 18B in Contracts
The project is set to generate major economic benefits for the Norwegian supply industry. A ripple-effect analysis estimates an employment impact of 4,500 full-time equivalents during the development phase. Contracts tied to the project, valued at NOK 18 billion, are mostly awarded to suppliers with Norwegian invoice addresses, though some construction will be done abroad.
Kjetil Hove, Equinor’s executive vice president of Exploration & Production Norway, highlighted Fram Sør’s strategic importance as part of the company’s broader effort to mature new resources in the Fram and Troll area. He noted that the project reflects strong collaboration with partners and authorities, and aligns with Equinor’s plan to bring more than 50 developments onstream by 2035.
Project Location and Technical Details
The Fram Sør venture is a joint effort by Equinor Energy AS (45%), Vår Energi ASA (40%) and INPEX Idemitsu Norge AS (15%). All contracts are subject to regulatory approval.
Fram Sør lies about 120 km northwest of Bergen in waters roughly 350 meters deep. The subsea development will include four 4-slot templates with a total of 12 wells at startup, plus four slots for future development. These will be connected to Troll C for processing and export via existing infrastructure.
Fram Sør underscores Equinor's strategic commitment to secure Europe’s energy needs while maintaining a low-carbon footprint and fostering local industrial growth.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may consider a few better-ranked stocks like Subsea 7 S.A. SUBCY, W&T Offshore, Inc. WTI and Oceaneering International, Inc. OII. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
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W&T Offshore, Inc. (WTI): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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