• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 min The Downside of Political Correctness
  • 45 mins In the Event of WW3, Oil and/or Renewables?
  • 2 hours Main Stream Media falls into depressed mood today after hearing of the record May jobs report UP 2.5 MILLION JOBS !
  • 1 hour George Floyd’s History
  • 1 hour US and Australia Sign SPR Lease Agreement
  • 14 hours Rioting and Protesting
  • 1 hour Trump waves a Bible
  • 1 hour China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 13 hours Let's try to link the recent events back to the situation with oil production and pricing
  • 1 day Healing, Not Hatred
  • 8 hours Coronavirus hype biggest political hoax in history
  • 6 hours World’s First Integrated Hydrogen Power-to-Power Demonstration Launched
  • 19 hours China’s Oil Thirst Draws an Armada of Tankers
  • 7 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 day Trumps Oil Industry....
OPEC+ Could Hold Its Next Meeting This Week

OPEC+ Could Hold Its Next Meeting This Week

The next OPEC+ meeting may…

Why The World’s Largest Asset Manager Has Seen Its Shares Soar

Why The World’s Largest Asset Manager Has Seen Its Shares Soar

Blackrock, the world’s largest asset…

Norwegian Oil Giant Issues $5 Billion In Debt To Tackle Crisis

Norway's Equinor has raised $5 billion in fresh debt to reduce the adverse impact of the oil crisis, the company said. The maturities of the bonds range between 2025 and 2040.

"Equinor is in a strong position to handle market volatility and uncertainty. In combination with our USD 3 billion action plan to reduce cost, this transaction will further strengthen our financial resilience and flexibility going forward, and ensure liquidity to prioritised projects," chief financial officer Lars Christian Bacher said.

The Norwegian heavyweight earlier this year announced a capital and cost cut program of $3 billion. It also announced a postponement of its $5 billion share buyback program, in line with the actions of its peers, which have also been cutting spending plans and suspending share buybacks.

As part of its cost-cut program, Equinor said it would cut organic capital expenditure to $8.5 billion from $10-11 billion. The company said it would also reduce its exploration budget for this year to $1 billion from $1.4 billion. Operating costs for the year, Equinor said, would be cut by $700 million.

"Equinor is in a strong financial position to handle market volatility and uncertainty. Our strategy remains firm, and we are now taking actions to further strengthen our resilience in this situation with the spread of the coronavirus and low commodity prices," chief executive Eldar Saetre said at the time.

Equinor may be in a strong position, but the current market volatility is being called unprecedented by many. The oil price slide has been steep and quick and has occurred in an environment of severely depressed demand, which is indeed unusual and has sparked fears that unless radical measures are taken quickly, prices could fall a lot further.

 At the time of writing, Brent crude, the North Sea benchmark, was trading at $26.39 a barrel, with West Texas Intermediate at $21.42, both closing higher on Wednesday following remarks by U.S. President Trump that he expected Russia and Saudi Arabia to close a new production deal over the next few days.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News