Investing.com - Oslo-listed shares in Equinor (OL:EQNR) rose in early trading on Tuesday after the Norwegian energy company said the U.S. had agreed to lift a work stoppage order on a major offshore wind facility planned off the coast of New York.
In a statement, Equinor said that its subsidary Empire Offshore Wind had been informed by the U.S. Department of the Interior that construction activities on the project can resume.
CEO Anders Opedal said the company "appreciated" the decision, adding that the Empire Wind project "underscores our commitment to deliver energy while supporting local economies and creating jobs".
Opedal thanked U.S. President Donald Trump in particular, saying the removal of the work stoppage will save "thousands of American jobs" and provide for continued investments in energy infrastructure in the U.S. New York Governor Kathy Hochul was also thanked for playing a key role in getting the project back on track, while officials in Norway first raised the issue with the Trump administration, Opedal noted.
Equinor flagged that it will provide an updated economic assessment in the second quarter and push to have the site operating commercially by 2027.
Work was first halted on the $5 billion Empire Wind project in April, an order that Equinor said would potential cost it billions of dollars and sent shudders through the wider offshore wind industry. At the time, Interior Secretary Doug Burgum said the Biden administration may have rushed its approval process.
Analysts noted the U.S. decision is particularly positive for Equinor-peer Orsted (CSE:ORSTED), which, like much of the sector, was grappling with the implications of the work stoppage order on the future of fully permitted developments.
"We see a positive read-across here for Orsted as the Empire Wind stop-work order significantly raised market concerns about permitting/cancellation risks around Orsted’s under-construction portfolio," analysts at Jefferies said in a note to clients, adding that they expect to see a "relief rally" in the stock.
Orsted (CSE:ORSTED) shares surged by more than 13% following Equinor’s announcement.