Equinor Begins Drilling at Raia, Strengthens Brazil's Gas Supply

Equinor ASA EQNR has commenced drilling at its largest project under execution, the Raia project in Brazil’s pre-salt Campos Basin, marking a major milestone as the project advances toward its 2028 launch.

Equinor has invested nearly $9 billion in the Raia project, where EQNR and Repsol Sinopec Brasil each own 35%, with Petrobras holding the remaining 30%. This project is expected to create up to 50,000 direct and indirect jobs over the next 30 years.

Based on experience gained from the Bacalhau field, the Valaris DS-17 initiated drilling on March 24, focusing on six wells in the Raia region, located roughly 200 km offshore Brazil in 2,900 meters of water. The initiative contributes to the development of a significant gas project in Brazil, where recoverable reserves surpass one billion barrels of oil equivalent (BOE).

Raia will utilize a floating production, storage and offloading unit (FPSO) connected to production wells to treat oil, condensate and gas, with natural gas transported through a 200-kilometer pipeline to Cabiúnas. At 6 kg of carbon dioxide (CO2) per barrel, significantly lower than the 17 kg industry benchmark, the FPSO is expected to be highly carbon-efficient on a global scale.

Upon the commencement of operations, the project may export up to 16 million cubic meters of gas daily, supplying nearly 15% of Brazil’s gas demand and supporting Equinor’s long-term growth and energy security goals.

EQNR, currently sporting a Zacks Rank #1 (Strong Buy), is enjoying a favorable business environment with West Texas Intermediate crude prices trading above $90 per barrel, according to Oilprice.com, as it has a presence in the upstream operations. Forecasts from the U.S. Energy Information Administration suggest a price increase for 2026 from that reported in 2025, indicating a continued favorable business environment for players having a presence in upstream operations like Eni S.p.A. E and OMV Aktiengesellschaft OMVKY. 

Since 2014, discoveries by Eni have surpassed 11 billion barrels of oil equivalent, with about 900 million barrels of oil equivalent added in 2025. E sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

OMV Aktiengesellschaft’s upstream portfolio is spread across Norway, Central and Eastern Europe (CEE), Mediterranean and North Africa. In 2025, OMVKY achieved production of 305,000 BOE per day from these assets. OMVKY also sports a Zacks Rank #1 at present.   

Another player in the energy space whose business model is vulnerable to crude price volatility is TechnipFMC plc FTI. Being an oil and gas equipment and service provider, FTI’s business model is heavily reliant on capital spending from upstream companies, which are currently enjoying a favorable business environment. FTI currently sports a Zacks Rank #1.

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