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Equinor and Petoro agree to harmonise equity interests

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Equinor and Petoro have entered into a value-neutral asset swap agreement in the Haltenbanken area, marking a strategic realignment of their ownership stakes to enhance long-term value creation on the Norwegian continental shelf.

Strategic Adjustments

Through this agreement, Equinor will increase its ownership in the Heidrun field and Noatun discovery while reducing its stakes in the Tyrihans field, the Castberg field, and the Carmen and Beta discoveries. This swap aligns the ownership structure to streamline operations and promote efficient development.

Kjetil Hove, executive vice president for Exploration and Production Norway at Equinor, stated, “We have a strategy to continue the development and value creation on the Norwegian continental shelf and expect to maintain high production with lower emissions towards 2035. Alignment of ownership around the larger production hubs are important enablers for long-term value creation.”

Enhanced Ownership Stakes

Heidrun and Tyrihans are two of the largest producing fields in the Halten area of the Norwegian Sea. Heidrun is notable for its long remaining life on the Norwegian continental shelf. The agreement will result in significant changes to the ownership stakes of both companies in these fields.

Currently, Equinor holds a 13.0 percent equity interest in Heidrun, while Petoro holds 57.8 percent. In Tyrihans, Equinor’s ownership is 58.8 percent, with Petoro not holding any equity. Following the transaction, Equinor will own 34.4 percent in Heidrun and 36.3 percent in Tyrihans, while Petoro will own 36.4 percent in Heidrun and 22.5 percent in Tyrihans. Equinor’s ownership of Johan Castberg will be 46.3 percent.

Simplified Operations and Cost Efficiency

Although the swap is value-neutral, it is expected to generate additional value for both parties over time. Hove noted, “Balanced partnerships will simplify commercial agreements, lower operating costs, and accelerate new developments with added production at a lower cost.”

Regulatory Approvals and Effective Date

The swap agreement is subject to various regulatory approvals and must be approved by the Norwegian Parliament. The effective date of the agreement is set for 1 January 2025.

This strategic asset swap represents a significant step towards optimizing resource management and operational efficiency for both Equinor and Petoro, reinforcing their commitment to sustainable and value-driven development on the Norwegian continental shelf.

For more information visit www.equinor.com