Equinor ASA raised $5 billion through debt offerings on April 1 as part of the Norwegian oil company’s plan to weather the current oil market downturn.
“Equinor is in a strong position to handle market volatility and uncertainty,” CFO Lars Christian Bacher said in a statement on April 1.
Since the collapse in oil prices last month, Equinor has announced plans to cut costs and investments by around $3 billion, which included postponing U.S. onshore drilling. The company also suspended its $5 billion share buyback program.
“In combination with our $3 billion action plan to reduce cost, this transaction will further strengthen our financial resilience and flexibility going forward, and ensure liquidity to prioritized projects,” Bacher added in his statement.
The debt transactions consisted of five separate tranches of notes with maturities ranging between five and 30 years. Proceeds will be used for general corporate purposes, including the possible repayment of existing debt, according to the company release.
Recommended Reading
US Geothermal Sector Gears Up for Commercial Liftoff
2024-04-17 - Experts from the U.S. Department of Energy discuss geothermal energy’s potential following the release of the liftoff report.
Devon Energy Leads $244MM Funding Round for Fervo Energy
2024-02-29 - The funds will finance Fervo Energy’s next phase of growth as it puts to use oil and gas technology and techniques to scale geothermal energy.
Oil, Gas Drilling Tech Transfer Boosts Fervo’s Geothermal Prowess
2024-02-14 - Geothermal company Fervo Energy is learning from oil and gas drilling and completion techniques to improve geothermal well costs and drill times.
Quaise Energy Raises $21MM Toward Deep Geothermal Operations
2024-03-12 - Quaise Energy will utilize a technique to vaporize rock using high-power microwaves to achieve deep geothermal energy globally.
Sinopec Completes Drilling of China’s Deepest Geothermal Well
2024-04-11 - Sinopec said the Fushen-1 Well was drilled to a depth of 5,200 meters.