Equinor ASA EQNR has signed a Memorandum of Understanding (MoU) with Sonatrach to strengthen the cooperation of the two parties in the exploration and production (E&P) of oil and gas in Algeria and around the world.
The MoU involves opportunities for cooperation in greenhouse gas emissions, carbon management and industrial safety management. In particular, it should continue to strengthen the existing partnership between businesses.
In addition, the companies will explore opportunities for implementing technologies to improve oil recovery and developing flexible operating models to drive oil operations to the highest level. However, no financial information regarding the transaction was revealed.
Several companies have signed memoranda of understanding with state-owned energy company Sonatrach after Algeria enacted its new petroleum law, aimed at increasing the country’s benefits from oil and gas production. Last year, the country approved a new energy law that prompts foreign entities to attract investors who have remained on the sidelines due to an unfavorable business environment.
Equinor has been operating in Algeria since 2004. The company with BP plc BP and Sonatrach are actively involved in the development and production of two of the country’s largest gas fields, namely In Salah and In Amenas. In particular, each of the gas fields has a production capacity of nine billion cubic meters per year.
In addition, Equinor has developed an exploration partnership in the Timissit permit of 2,730 km2 in the Illizi-Ghadames basin in south-eastern Algeria.
For its part, the company is actively engaged in developing ways to produce low carbon hydrogen from natural gas. The oil giant is effectively realigning its business strategy by generating adequate energy from wind farms to power more than one million homes in Europe as part of its ambition to achieve global carbon neutrality. by 2030.
Company Profile and Price Performance
Based in Stavanger, Norway, Equinor is one of the world’s leading integrated energy companies.
The company’s shares have outperformed the industry for the past six months. Its stock rose 36.2% compared to the industry’s 22.2% growth.
Zacks ranking and actions to consider
The company currently has a Zack Rank # 3 (Hold).
Some better ranked players in the energy space are Suncor Energy Inc. SU, currently sporting a Zacks # 1 rank (strong buy), and China Petroleum & Chemical Corporation SNP, carrying a Zacks Rank # 2 (Buy). You can see The full list of current Zacks # 1 Rank stocks here.
In the past 60 days, Zacks’ consensus estimate for Suncor’s earnings for 2021 has been increased by 71.6%, while that of China Petroleum has been increased by 23.9%.
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