Deep plowing Norway, rejecting Venezuela: Equinor (EQNR.US) invests billions to safeguard Europe's "energy lifeline"

Norwegian energy giant Equinor (EQNR.US) has signed a contract worth about 100 billion Norwegian kroner (equivalent to 99 billion US dollars) to help maintain its current levels of oil and gas production in Norway for at least the next decade. The company's CEO Anders Opedal described the Norwegian continental shelf as the "backbone" of Equinor and emphasized its significance for European energy security. Since the escalation of the Russia-Ukraine conflict, this Nordic country has become Europe's largest gas supplier for three consecutive years. The Norwegian continental shelf is the natural extension of Norway's land into the ocean, covering all of its natural extension areas beyond its territorial waters, extending to the seabed and subsoil of the seabed outside the continental shelf, with abundant natural resources. According to a statement released on Thursday, the transactions reached with companies such as Aker Solutions ASA and Aibel AS by Equinor are expected to officially start in the coming months. These transactions involve maintenance, repair, and modification of onshore and offshore facilities. The contracts have a term of five years and the possibility of renewal. Kjetil Hove, Executive Vice President of Exploration and Production at Equinor responsible for Norway, said, "The shelf is entering a mature phase that requires us to come up with new solutions. Our goal is to maintain high production levels by 2035 and ensure stable energy supply to Europe." The company plans to achieve a daily production equivalent of about 1.2 million barrels of oil by the middle of the next decade, which is consistent with the production levels of the past five years. Equinor plans to invest up to 70 billion Norwegian kroner per year for the next decade, drilling 250 exploration wells and 600 wells to improve recovery rates. Equinor has no intention to return to Venezuela At almost the same time, Equinor's CEO Opedal also said on Wednesday that the company would not consider returning to the Venezuelan market from which it withdrew years ago. Recent attention has been drawn to the capture of Nicolas Maduro by the US military, sparking discussions in the oil industry about the prospects of Western, particularly US, oil companies in Venezuela. Venezuela has the largest proven oil reserves in the world, estimated at around 303 billion barrels. During a business event in Oslo, Opedal said, "It is not currently in our considerations." He further explained, "We withdrew from Venezuela for the sake of reallocating funds." In the 1990s, Equinor operated in Venezuela, investing billions of dollars in onshore and offshore projects in the country. However, as the company realigned its business priorities and strategic focus, this Norwegian company exited its operations in Venezuela in the early 2020s. In 2021, Equinor completed the sale of its 9.67% non-operating interest in the Petrocedeo onshore project in Venezuela to the Venezuelan state-owned oil company, PDVSA. At the time, Equinor stated, "This transaction aligns with Equinor's corporate strategy, which focuses on international core areas and geographies of priority where Equinor can leverage its competitive advantages." Although Equinor has explicitly stated its lack of intention to return, other large Western companies may still be attracted back to Venezuela if the security situation and legal framework allow it. US President Donald Trump has been hoping for large US oil companies to return to Venezuela and invest in rebuilding the country's oil infrastructure. On Monday, Trump said in an interview that US oil companies could be "operational" in Venezuela's oil sector within 18 months. According to multiple analysts, total investments in the next decade could reach up to 100 billion US dollars. On Tuesday, President Trump claimed that Venezuela would "deliver" 30 to 50 million barrels of oil.