Norway’s Equinor is looking to sell more assets in the United States and exit several other countries as part of a major global reshuffle as it tries to return to profit after writing down $25 billion of U.S. assets over the past decade, APA reports.
While the company, like other energy majors, has been hit by last year’s fall in oil and gas prices, Equinor’s new head of international business, Al Cook, said it lacked scale in the U.S. shale market and had underestimated the strength of local competition.
Equinor disposed of its operated shale assets in the Eagle Ford in 2019, and last week said it had agreed to sell its assets in the Bakken shale oil province in the states of North Dakota and Montana for around $900 million.
“All our operated onshore positions in the U.S. are under the same kind of review that we’ve done in the Bakken,” Cook, told Reuters in an interview.
“We’ve got an operated position in the Utica, we’ve got an operated position in the Austin Chalk, those are under very active review right now,” he added.
As of the second quarter of 2020, Equinor had around 232,000 net acres in the Appalachian Basin, including 27,000 acres it operates, and around 114,000 net acres in Louisiana Austin Chalk, roughly half of which is operated.
Cook said Equinor was slow to realise U.S. production was not cost effective at low oil prices as the country essentially took over OPEC’s swing producer role.
However, Equinor will keep and possibly expand its operations in the Gulf of Mexico, its large non-operated position in Appalachian gas and its wind business in the U.S. northeast – following a similar strategy to that in the UK where it is a major gas supplier and wind power producer.
Source: Azeri-Press News Agency