Equinor expects coronavirus to impact its business for a long time

Oil&Gas Materials 20 March 2020 13:45 (UTC +04:00)
Equinor expects coronavirus to impact its business for a long time

BAKU, Azerbaijan, Mar. 20

By Leman Zeynalova - Trend:

The outbreak of the coronavirus and the sharp drop in oil prices are impacting industries and companies around the world and are expected to impact Equinor for a long time, said Eldar Sætre, President and CEO of Norway’s Equinor ASA, Trend reports citing the company.

“We are a robust company with a strong balance sheet, and we are now really benefitting from the improvements made in recent years. Through those efforts, we are better prepared to handle volatile markets and unexpected events,” he said.

Jon Erik Reinhardsen, Chair of the board said that the company expects a strong equity production growth in 2020 of around 7 percent and a 3 percent annual average production growth from 2019 to 2026.

“New projects coming on stream in 2019 had an average breakeven oil price of around $30 per barrel. Equinor is also set for a value driven growth in renewables, developing as a global offshore wind major. In 2026 the production capacity is expected to be 4-6 GW1 , which is around 10 times current capacity,” he said.

He went on to add that the company is also further developing its international portfolio and strengthening its presences in core areas. “The international portfolio is delivering high value and we expect production to increase by more than 3 percent annually for 2019 to 2026.”

“In our updated climate roadmap, we recognise the need for significant changes in the energy markets, which means that also Equinor`s portfolio will have to change accordingly to remain competitive. We will produce less oil in a low carbon future, but value creation will still be high. Oil and gas production with low greenhouse gas emissions will be an even stronger competitive advantage for us. In addition, profitable growth in renewables gives significant new opportunities to create attractive returns.”


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