How Equinor became Norway’s largest oil producer
Equinor is the leader in the Norwegian oil industry. Until 2018, the company’s name was Statoil. It is one of the largest companies in the world in terms of revenue. The company explores and develops fields and produces oil and gas in the country.
The beginning of the business
The Norwegian government established Equinor, then Statoil, in 1972. At the time, the country was just beginning to develop the oil and gas industry and needed to regulate it. Two years later, the company discovered a large field in the North Sea and began production in 1979.
The 1980s was an excellent time for Equinor to expand its operations:
– the company extracted raw materials from large offshore fields: Statfjord, Gullfaks, Oseberg and others;
– secured lucrative contracts for the use of gas transmission systems and terminal services;
– established an extensive network of service stations in Norway and abroad.
Both domestic and foreign investors took note of the country’s prospects as an oil exporter. This encouraged the active development of the Norwegian continental shelf, fuelling the company’s expansion. 2001 was the year of Statoil’s initial public offering, with listings on the Oslo and New York stock exchanges. The funds raised enabled the company to expand beyond Norway. The company started production in the Gulf of Mexico, Africa, Azerbaijan and other countries.
An agreement with Hydro’s oil and gas business was a new stage in the company’s development. In 2007, the two companies merged. This allowed Equinor to become the world’s largest offshore operator. The deal also enabled Equinor to produce from a large field in Brazil. At the same time, the company laid pipelines at Ormen Lange and Sneevit. The multi-phase system became the longest in the world.
Recent history
Since 2010, Equinor has gradually reduced its share of the petrol station business. In 2014, 39% of total feedstock production came from overseas operations.
Four years later, the company rebranded, resulting in Statoil becoming Equinor. Today, the company has achieved the following successes:
– has become the market leader in Norway and Northern Europe;
– is a leading supplier of natural gas in Europe and oil in the global market;
– accounts for 60% of all crude oil production on the Norwegian shelf.
– has refineries in Denmark, Norway and other countries;
– has hydrocarbon reserves of over 5.4 billion barrels.
In addition to oil production, Equinor has several other businesses. These include renewable energy, drilling and refining projects.
