Oil and Gas Company Profile: Equinor
About
Equinor ASA, founded in Norway, on September 18, 1972 (former Statoil). The headquarters of Equinor is in Stavanger, Norway. The country owns 67% of the company Equinor is the leader in operatorions on the Norwegian continental shelf and has other international substantial activities in North and South America, Africa, Asia, Europe, and Oceania. The Exploration and Production International segment covers offshore and onshore operations in the USA, Mexico. Equinor is working in sectors, like, exploration, development, and production of oil and gas, as well in solar and wind energy. Their line of work focus on implementation in existing and new value chains: optimizing production from existing and near field resources, low carbon solutions for oil and gas, discovering and developing prolific basins and deep-water areas, unlock low recovery reservoirs and develop renewable energy opportunities. These methods are possible with in-house research and development, cooperation with academia, research institutes and suppliers, project-related development as part of field development activities, direct investment in technology start-up companies, and with invitations to open innovation challenges (Equinor website).
Performance
- Total revenues: 64,357 USD million (2019)
- Total assets: 118,063 USD million (2019)
- Equity oil and gas production/day: 2.074 million boe (2019)
Strategy
- Always safe, high value, low carbon, committed to long-term value creation in a low carbon future.
2019 Report
Segment performance in USD million of the Equinor group:
- Total revenues and other income = 64,357
- Net operating income/(loss) = 9,299
- Non-current segment assets = 80,691
Exploration & Production Norway:
- Total revenues and other income = 18,832
- Net operating income/(loss) = 9,631
- Non-current segment assets = 33,795
Exploration & Production International
- Total revenues and other income = 10,325
- Net operating income/(loss) = (800)
- Non-current segment assets = 37,558
In May 2019, according to the Equinor official, the company was expected to remain a viable offshore oil and gas play for many years to come. The executive vice president said that technology, projects, and drilling for Equinor noted that the Norwegian Continental Shelf had been an active E&P province for the past 50 years. But according to him, the future will be quite different. Existing and untapped reserves in the region are dispersed, smaller, and remote, although the company is ready for that. Making smaller fields profitable will be the primary challenge, Opedal said. He noted that Equinor did have 3,000 new wells planned for the Norwegian Continental Shelf over the near term, but new technologies will be needed to advance these drilling plans. Other key challenges include keeping the Norwegian Continental Shelf competitive from a cost point of view while maintaining a commitment to worker and environmental safety.“Equinor wants to be the world’s most efficient energy producer. It will include the removal of gas turbines from some platforms and the advancement of offshore wind energy systems. “But the world still needs hydrocarbons,” said the executive vice president. In the next 10 years, Equinor will be increasing its use of remote operations capabilities “everything will be controlled from land,” The company will also increase its use of ROVs and AUVs, and subsea boosting and processing systems to advance and develop standalone and marginal fields. (Offshore, 2019). In July of 2020, Equinor made a discovery of gas and condensate in an exploration well situated in the North Sea. According to the company, it was estimated between 19 and 63 barrels of oil. Back in April, Equinor announced an oil discovery in the U.S. Gulf of Mexico. According to the company, the main development projects are in Algeria, Angola, Azerbaijan, Brazil, Canada, Ireland, Norway, the UK, and the U.S (Rigzone, 2020).
Finance
Due to the Covid-19 pandemic, Equinor unveils a $3bn action plan to strengthen financial resilience in 2020, to handle with the market volatility. Although, the CEO granted that Equinor has the financial strength to deal with the impact of the pandemic in the economy. The main elements of the action plan for 2020 are: reducing organic capex, reducing exploration activity; reducing operating costs for 2020 (Refining&Petrochemicals, 2020).
Company announcement
Equinor acquired 5,2% of Scatec Solar in December of 2019. In this way, Equinor strengthens its position in the renewable energy industry (Equinor, 2019).
Some of the company media
References
(Access 15/07/2020)
- About us. Equinor.
- 2019 annual report. Equinor.
- 2019 sustainability report. Equinor.
- Andreas Exarheas. Equinor Makes North Sea Discovery. Rigzone. July 8, 2020.
- Martin Menachery. Covid-19 impact: Equinor unveils $3bn action plan to strengthen financial resilience in 2020. Refining&Petrochemicals. March 29, 2020.
- Equinor increases its ownership in Scatec Solar. Equinor December 19, 2019.
- Offshore. OTC 2019: Equinor official describes future challenges, opportunities of Norwegian Continental Shelf. May 9, 2019.