Arctic: Energy Daily - Offshore Drilling Sector Report, EQNR, BWO, ++

Research evidence excerpt

Arctic: Energy Daily - Offshore Drilling Sector Report, EQNR, BWO, ++

Equinor (Buy, NOK 380): Maturing Johan Sverdrup phase 4

Equinor and its partners are progressing Johan Sverdrup Phase 4 following successful appraisal

drilling at the Tonjer and Geitungen discoveries in the Johan Sverdrup area. Preliminary estimates

indicate combined recoverable resources of 20–30 mmboe, which are planned to be developed

via a subsea tie-back to existing Johan Sverdrup infrastructure. Although profitable barrels, the

gross resources added represent ~1% of Johan Sverdrup’s original recoverable resources (~2,700

mmboe). An investment decision is being matured with a potential start-up targeted for 2029.

BW Offshore (Buy, NOK 39): BW Opal achieves Interim Performance Test milestone

The test confirms that key production, processing and utility systems on the FPSO are operating

in an integrated manner and are capable of delivering stable performance under production

conditions. Following the restart of production in early May, BW Opal has continued gas production

and export. BWO remains focused on the completion of remaining commissioning activities and

progress towards practical completion, which will mark the commencement of the long-term firm

contract period.

Shearwater: Equity injection and easing of bank covenants

On Friday, Shearwater announced that it has secured USD 40m of shareholder support in the form

of new equity or subordinated shareholder loan, deferral of USD 25m of already postponed bank

instalments to April 2029, and material bank covenant relief. The minimum cash covenant steps

down to USD 40m immediately and USD 30m from Q3 2026 (bonds USD 30m), the equity ratio

covenant is reduced to 30% (bonds 30%), and leverage testing is suspended for two years before