Ripple effects from Equinor in Norway continue to grow
A new report finds that deliveries within exploration, development projects and operation of Equinor-operated fields and onshore facilities in Norway continued to grow in 2024.
Equinor procured goods and services with a total value of NOK 142.6 billion, an increase from 134 billion in 2023. 93 per cent of this came from Norwegian suppliers located in 260 different municipalities. This resulted in an employment effect of more than 85 thousand full-time equivalents.
“The report demonstrates extensive ripple effects and employment effects from Equinor’s activity in Norway. The greatest ripple effects come from operating our fields and onshore facilities, which account for more than 85 billion in deliveries. With the Norwegian continental shelf (NCS) in a mature phase, high levels of exploration activity and maturing of new oil and gas resources are important to ensure that this continues,” says Kjetil Hove, Equinor’s executive vice president for EPN.
The report was prepared by Kunnskapsparken Bodø (KPB) which analysed actual purchases of goods and services from around 1900 suppliers and several thousand sub-suppliers in nearly 300 sectors.
Development projects contributed Norwegian deliveries worth more than NOK 36 billion and more than 20 thousand full-time equivalents. The largest share of this comes from subsea developments, which accounted for 31%. Johan Castberg was Equinor’s largest Norwegian field development in 2024, and accounted for 26%. The various electrification projects also created significant ripple effects with 23%.
“Looking towards 2035, Equinor plans to continue to ramp up activity. On the NCS alone, we want to see 250 exploration wells, 600 more development wells, 75 subsea developments, 3000 interventions, 2500 modification projects and 50 low-pressure projects. This robust activity level will require a cost level that yields profitability. Together with its partners and the supplier industry, Equinor must maintain to achieve competitive solutions. If we succeed with this, we’ll be able to maintain value creation on the NCS, as well as preserve high energy deliveries to Europe over the long term,” Hove concludes.
Equinor’s exploration activity had deliveries amounting to NOK 10.8 billion, an increase of just over 3 billion from 2023.
“Equinor’s activity generates work for suppliers all across the country, which demonstrates that this company is important for people and local communities. The competition to secure important contracts and long-term supplier relationships also helps develop competence and innovation throughout the entire supplier industry. We have lots of small suppliers in the Norwegian supplier industry who are the leading specialists within their respective areas. We must continue to build on our strengths as an energy nation,” says Per Steinar Stamnes, head of the union Styrke Norwegian Continental Shelf in Equinor, on behalf of the five trade unions in Equinor; Styrke, SAFE, Lederne, NITO and Tekna.
The 2024 analysis also includes operation of renewable energy facilities and low-carbon solutions, where the Norwegian supplier industry delivered services worth 170 million from the operation of Hywind Tampen and the development of Northern Lights.
