OSLO – Equinor ASA (EQNR.OL) has announced its decision to exit Suriname, transferring its stakes in the deepwater Block 59 exploration license to Hess Corp (HES.N). This move aligns with Equinor’s strategic shift towards concentrating its operations in key regions and increasing its investments in renewable and low-carbon energy.
Details of the Transaction
Transaction Overview: Equinor and Exxon Mobil Corp (XOM.N) have transferred their interests in Block 59 to Hess Corp in a non-financial deal. Equinor confirmed that no monetary exchange took place in this transaction.
Exxon’s Position: Exxon, which led the consortium in Suriname, has handed over operational control of Block 59 to Hess but remains active in the region with its interests in Block 52.
Equinor’s Strategy: The Norwegian company stated it will not seek further exploration opportunities in Suriname and has decided to withdraw from the block. This decision is part of Equinor’s broader strategy to streamline its focus to core areas such as Norway, the U.S. Gulf of Mexico, and Brazil.
Strategic Shift and Historical Context
Previous Exits: Over the past six years, Equinor has exited about 20 countries, including South Africa, Mexico, Turkey, and Nicaragua. The company also divested its assets in Russia following the invasion of Ukraine and has sold its producing assets in Nigeria and Azerbaijan.
Geographical Focus: As of now, Equinor operates in fewer than 10 countries outside Norway. This shift marks a significant departure from its international expansion strategy under former CEO Helge Lund, who led the company’s global growth after its partial privatization in 2001.
Current Operations and Future Goals
Production Statistics: In 2023, Equinor produced 34% of its total oil and gas output outside Norway, with the U.S. contributing more than half of this international output. Other significant contributors included Angola, Brazil, and Algeria.
Future Outlook: Despite reducing its geographical footprint, Equinor aims to increase its international output by 15% between 2024 and 2030, targeting 800,000 barrels of oil equivalent per day from new fields in Brazil, the U.S., and Britain. The company is also exploring opportunities in renewable energy sectors, such as offshore wind, and has entered new markets including Japan.
Reporting by: Nerijus Adomaitis in Oslo and Sabrina Valle in Houston
Editing by: Terje Solsvik, Rod Nickel, and Matthew Lewis
This strategic focus reflects Equinor’s commitment to consolidating its operations in regions where it sees the most potential for growth and return on investment while also investing in sustainable energy solutions.
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