Equinor joins other majors in slashing spending

Norwegian energy company Equinor will slash operating costs and spending to help mitigate the impact of the Covid-19 outbreak and oil price downturn.

With this move, Equinor is joining a growing number of energy companies, such as Shell and Total, doing similar measures to cope with the current situation.

The main targets of the $3 billion plan include reducing capital expenditure for 2020 to around $8.5 billion from a goal set last month of spending between $10 billion and $11 billion, Equinor said.

The company’s spending on exploration will drop to $1 billion from a planned $ 1.4 billion this year, while operating costs will be slashed by around $ 700 million.

These measures follow the suspension announced this week of Equinor’s $5 billion four-year share buyback program.

Equinor’s head Eldar Sætre said in the statement that the company was now taking actions to “further strengthen its resilience in this situation with the spread of the coronavirus and low commodity prices”.

“We have implemented measures to reduce the risk of spreading the coronavirus and have so far been able to maintain production at all our fields. Safe operations remain our first priority in this situation,” said Sætre.

Most Popular

South Korea’s Posco says first LNG carrier to start ops in H2

Posco International, a unit of South Korean steel producer Posco, plans to start shipping LNG with its first dedicated LNG carrier in the second half of this year.

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

Wilhelmshaven LNG jetty ready to welcome Excelerate’s FSRU

Dutch marine contractor Van Oord announced on Monday it had completed the new jetty for its client, state-owned LNG...

More News Like This

Norway’s Equinor shuts Hammerfest LNG plant for maintenance

Norwegian energy firm Equinor has closed its 4.3 mtpa Hammerfest liquefied natural gas (LNG) export plant for planned maintenance.

Norway’s Equinor restarts Hammerfest LNG export plant

Gassco data showed on Monday that the unplanned shutdown event ended on Sunday. A spokeswoman for Equinor also confirmed the...

Equinor extends shutdown of Hammerfest LNG export plant

Equinor decided to stop production on January 2 due to an issue on a compressor which reinjects CO2 to...

Norway’s Equinor shuts Hammerfest LNG terminal

Gassco data showed on Thursday that Hammerfest LNG will be offline until January 9, 2025. LNG Prime invited Equinor to...