Norway’s Equinor Boosts Activity Ante in Energy Portfolio

Norway’s state-owned energy giant Equinor has set its cap on upping its activity ante in Norway within its energy portfolio, encompassing operated oil and gas fields, onshore facilities, and exploration and development projects alongside renewable power and low-carbon solutions, creating further ripple effects like the multibillion-dollar worth of goods and services procured in 2024.

A new report, prepared by Kunnskapsparken Bodø (KPB), which is responsible for analyses and reporting results conducted on an annual basis since 2019, analyzed actual purchases of goods and services from around 1,900 suppliers and several thousand sub-suppliers in nearly 300 sectors.

Aside from Equinor-operated fields and onshore facilities, the analysis has evolved to include activities within other arenas, such as exploration (from 2022), development projects (2023), and facilities for renewable and low-carbon solutions (2024).

Procurement and Impact

The latest report finds that deliveries within the exploration arena, development projects, and operation of Equinor-operated fields and onshore facilities in Norway continued to grow in 2024, thanks to the delivery of goods and services for 46 fields, 6 onshore facilities, exploration, development projects, and operation of facilities for renewable energy and low-carbon solutions.

Based on the report, Equinor procured goods and services with a total value of NOK 142.6 billion (nearly $13.5 billion) last year, an increase from NOK 134 billion (close to $12.7 billion) in 2023, with 93% of this coming from Norwegian suppliers in 260 different municipalities, which resulted in an employment effect of more than 85,000 full-time equivalents.

Union Perspective

Per Steinar Stamnes, Head of the union Styrke Norwegian Continental Shelf, on behalf of the five trade unions at Equinor – Styrke, SAFE, Lederne, NITO, and Tekna – emphasized: “Equinor’s activity generates work for suppliers all across the country, which demonstrates that this company is important for people and local communities.

“The competition to secure important contracts and long-term supplier relationships also helps develop competence and innovation throughout the entire supplier industry. We have lots of small suppliers in the Norwegian supplier industry who are the leading specialists within their respective areas. We must continue to build on our strengths as an energy nation.”

Development Projects and Future Plans

Furthermore, development projects contributed to Norwegian deliveries worth more than NOK 36 billion (over $3.4 billion) and over 20,000 full-time equivalents, with the lion’s share coming from subsea developments, which accounted for 31%.

Johan Castberg, Equinor’s largest Norwegian field development in 2024, accounted for 26%, while various electrification projects created significant ripple effects with 23%. The Norwegian giant’s exploration activity had deliveries amounting to NOK 10.8 billion (more than $1 billion), an increase of just over NOK 3 billion (around $283.9 million) from 2023.

Moreover, the 2024 analysis also encapsulates the operation of renewable energy facilities and low-carbon solutions, where the Norwegian supplier industry delivered services worth NOK 170 million (over $16.1 million) from the operation of Hywind Tampen and the development of Northern Lights.

Future Outlook

Kjetil Hove, Equinor’s Executive Vice President for EPN, highlighted: “Looking towards 2035, Equinor plans to continue to ramp up activity. On the NCS alone, we want to see 250 exploration wells, 600 more development wells, 75 subsea developments, 3000 interventions, 2500 modification projects and 50 low-pressure projects.

“This robust activity level will require a cost level that yields profitability. Together with its partners and the supplier industry, Equinor must maintain to achieve competitive solutions. If we succeed with this, we’ll be able to maintain value creation on the NCS, as well as preserve high energy deliveries to Europe over the long term.”

Equinor is also busy with multiple energy endeavors around the globe, including Great Britain, where it set the wheels in motion in December 2024 to combine its UK offshore oil and gas assets and expertise with Shell’s portfolio on the UK Continental Shelf (UKCS) to form a new company.