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.

- Advertisements -

Most Popular

Spark: spot LNG shipping rates climb to almost $200,000 per day

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet continued to rise this week as the...

Chevron: strike ends at Gorgon and Wheatstone LNG terminals

Unions representing Chevron's workers at the Gorgon and Wheatstone LNG export terminals in Western Australia have on Friday decided...

Japan’s MOL orders more LNG-powered car carriers

Japan’s shipping giant MOL has ordered two more LNG-powered car carriers at compatriot Nihon Shipyard. A spokesperson for MOL confirmed...

More News Like This

Equinor charters Furetank’s LNG-powered tanker

Swedish shipowner Furetank has chartered the 2021-built LNG-powered tanker, Fure Vinga, to Norway's Equinor. Furetank revealed the five-year charter deal...

Northern Lights JV orders third LNG-fueled CO2 carrier in China

Norway’s Northern Lights, a joint venture owned by Equinor, Shell, and TotalEnergies, has ordered the third LNG-powered liquefied CO2...

Norway’s Equinor gets OK to upgrade Hammerfest LNG terminal

Norway’s Equinor and its partners in the 4.3 mtpa Hammerfest LNG export plant have received an approval to upgrade...

Cheniere pens long-term LNG supply deal with Equinor

US LNG exporting giant Cheniere has signed a long-term supply deal with Norway’s Equinor. Under the sales and purchase agreement,...