Norwegian energy giant Equinor ASA (EQNR.US) has signed contracts valued at approximately 100 billion Norwegian kroner (equivalent to $99 billion), aimed at sustaining its current levels of oil and gas production in Norway for at least the next decade. The company's Chief Executive Officer, Anders Opedal, described the Norwegian continental shelf as Equinor's "backbone," emphasizing its critical importance to European energy security. Since the escalation of the Russia-Ukraine conflict, this Nordic nation has remained Europe's largest natural gas supplier for three consecutive years. The Norwegian continental shelf is the natural extension of Norway's landmass into the ocean, encompassing the entire natural prolongation of its land territory beyond the territorial sea, extending to the seabed and subsoil of the submarine areas to the outer edge of the continental margin, and is rich in natural resources. According to a statement released on Thursday, the agreements Equinor reached with companies including Aker Solutions ASA and Aibel AS are expected to formally commence in the coming months. These contracts cover maintenance, repair, and modification work for both onshore and offshore facilities. The contracts have a duration of five years and include options for extension. Kjetil Hove, Equinor's Executive Vice President for Exploration and Production in Norway, stated, "The continental shelf is entering a mature phase, which requires new solutions from us. Our goal is to maintain high production levels until 2035 and ensure stable energy deliveries to Europe." The company plans to achieve a production level of approximately 1.2 million barrels of oil equivalent per day by the middle of the next decade, a target consistent with its output over the past five years. Equinor plans to invest up to 70 billion Norwegian kroner annually, targeting the drilling of 250 exploration wells and 600 wells for improved oil recovery.
Simultaneously, Equinor's CEO Opedal stated on Wednesday that the company would not consider returning to the Venezuelan market, which it exited years ago. Recent events, including the capture of Nicolás Maduro by US forces, have sparked intense discussion within the oil industry about the prospects for Western, particularly US, oil companies in Venezuela. It is important to note that Venezuela holds the world's largest proven oil reserves, estimated at approximately 303 billion barrels. On the sidelines of a business event in Oslo, Opedal said, "At the moment, this is not on our radar." The executive further explained, "Our exit from Venezuela was based on a decision to reallocate capital." Equinor had been operating in Venezuela since the 1990s, actively involved in both onshore and offshore projects, with investments totaling billions of dollars in the country. However, as the company recalibrated its business priorities and shifted its strategic focus, the Norwegian firm exited its operations in Venezuela in the early 2020s. In 2021, Equinor completed the sale of its 9.67% non-operated interest in the onshore Petrocedeño project to Venezuela's state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA). At the time, Equinor stated that the transaction aligned with its corporate strategy to "focus on international core areas and prioritized geographical areas where Equinor can leverage its competitive advantages." Although Equinor has clearly stated it has no intention of returning, other major Western companies could potentially be drawn back to Venezuela if security conditions and legal frameworks permit. Former US President Donald Trump has long expressed a desire for major American oil companies to return to Venezuela and invest in rebuilding the country's oil infrastructure. On Monday, Trump suggested in an interview that US oil companies could be "up and running" in Venezuela's oil sector within 18 months. According to estimates from several analysts, total investment over the next decade could reach as high as $100 billion. On Tuesday, President Trump claimed that Venezuela would "deliver" 30 to 50 million barrels of oil.
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