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OIL

Equinor makes major oil find in North Sea

Norwegian state-controlled oil firm Equinor has made a major discovery in the North Sea, showing that there is still life in the more mature areas of the Norwegian continental shelf

Published: 6 November 2019 13:32 CET
Equinor makes major oil find in North Sea
An exploration well at Echino South, bear the existing Fram field, is estimated to hold recoverable resources of between 38-100m barrels of oil equivalent. 
 
“We are making one of this year’s biggest discoveries in the most mature area of the Norwegian continental shelf (NCS), not far from the Troll field,” Nick Ashton, Equinor’s senior vice president for exploration in Norway and the UK, said in a press statement. “This demonstrates the opportunities that still exist for value creation and revenue from this industry.” 
 
Equinor Energy holds 45% of the licence, ExxonMobil Exploration and Production Norway (25%), Japan's Idemitsu Petroleum Norge AS (15%) and Neptune Energy Norge AS (15%).
 
The oil and gas will probably be brought to shore by tying it back to existing oil rigs and pipelines.  
 
“After more than 50 years of geological surveys on the Norwegian Continental Shelf, we are still learning something new and finding hydrocarbons where we previously thought there were none,” Ashton said.
 
“By utilising existing infrastructure, these resources may be recovered at good profitability and with low CO2 intensity.” 
 
The discovery comes as Greenpeace, Friends of the Earth and other green groups take the Norwegian government to Norway's main appeals court over the award of ten new exploration licences in the Norwegian Arctic. 
 
 
Nick Ashton, Equinor's senior vice president for exploration in Norway and the UK. Photo: Equinor

ENERGY

Norwegian oil company doubles revenue as gas prices surge  

Norwegian energy giant Equinor said Wednesday that soaring gas prices helped it more than double its revenue in the third quarter. 

Published: 27 October 2021 10:55 CEST
A file photo showing a North Sea oil rig. Norway's state-owned oil company Equinor netted a pre-tax operating result of 9.77 billion dollars for the third quarter of 2021.
A file photo showing a North Sea oil rig. Norway's state-owned oil company Equinor netted a pre-tax operating result of 9.77 billion dollars for the third quarter of 2021. Photo: ANDY BUCHANAN / AFP

Equinor, which is 67 percent owned by the Norwegian state, said that its net profit rose to $1.4 billion between July to September this year, compared to a loss during the same period in 2020, partly due to asset write-downs.

But the profit figure was well below analyst expectations of $2 billion.

However, total revenue hit $23 billion, narrowly beating expectations of $22 billion, according to analysts surveyed by Factset.

The number was also more than twice the revenue of the same period last year, when many businesses were devastated by the Covid-19 pandemic.

Equinor’s preferred indicator — net operating profit, which excludes some one-off items, came in well above expectations at $9.8 billion.

Energy prices have surged recently as the global economy recovers from the pandemic, and the northern hemisphere heads towards winter.

Chief executive Anders Opedal said that “the global economy is in recovery, but we are still prepared for volatility related to the impact of the pandemic”.

“The current unprecedented level and volatility in European gas prices underlines the uncertainty in the market,” he said in the statement.

“Equinor has an important role as a reliable energy provider to Europe and we have taken steps to increase our gas exports to respond to the high demand.”

Equinor’s average price of oil per barrel reached $69.2 in the third quarter — up from $38.3 a year earlier.

Still largely oil-based, the company said in June it plans to invest $23 billion in renewable energy by 2026.

READ ALSO: Norway oil giant Equinor aims to be carbon neutral by 2050

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