Equinor Generating Billions for Norwegian Suppliers

Deliveries for exploration, development projects and operation of Equinor-operated fields and onshore facilities in Norway had a value of more than NOK 134 billion ($12.8 billion) in 2023, 94% of which were invoiced by Norwegian suppliers.

The details were conveyed in a report prepared by Kunnskapsparken Bodø (KPB) which analyzed actual purchases of goods and services for Equinor-operated fields and onshore facilities, development projects and exploration activity from Hammerfest LNG in the north to the Sleipner field in the south.

Equinor plans to maintain its oil and gas production of around 1.2 million barrels per day from the Norwegian continental shelf towards 2035. At the same time, emissions will be halved by 2030 in line with the Paris Agreement. This results in a high level of activity in Norway, and the ripple effect report shows increased activity. The largest increase is in exploration, of 26%, which reflects increased exploration activity on the Norwegian shelf.

The report was presented by Kjetil Hove, executive vice president for Exploration and Production Norway (DPN), together with the five trade unions Industri Energi, SAFE, Lederne, NITO and Tekna. Peggy Hessen Følsvik, leader LO and Ole Erik Almlid, CEO of NHO also participated.

"This year's report shows that deliveries to this industry come from the majority of Norwegian municipalities and are spread across the country. Our industry makes it possible for employees to live in places where they would not otherwise have the same job opportunities. The fact that there is activity in so many municipalities illustrates how the oil and gas industry benefits the whole country. Europe is completely dependent on energy from the Norwegian continental shelf, so it is important to maintain production," says Per Steinar Stamnes in Industri Energi on behalf of the five unions in Equinor; Industri Energi, SAFE, Lederne, NITO and Tekna.

Equinor is the largest purchaser of goods and services from the Norwegian supplier industry. After oil and gas operators, the supplier industry to the petroleum sector is Norway's second largest industry in terms of turnover.

"Equinor has a large project portfolio, and it is important to us that our activity creates ripple effects in Norway. Johan Castberg, which we plan to put on stream at the end of the year, accounts for a large share of this. We also see significant ripple effects in Norway from the electrification portfolio and projects tied back to existing infrastructure," says Trond Bokn, Equinor's senior vice president for project development.

Equinor paid NOK 280 billion in tax to the Norwegian state in 2023 and expects to pay over 210 billion in tax in 2024. Including dividends and share buybacks, the company expects to transfer more than NOK 310 billion to the state this year.