Equinor Awards 10 Billion Dollars in Contracts to Sustain Norwegian Oil and Gas Output

Equinor has committed approximately 10 billion dollars in contractual agreements with suppliers as the Norwegian energy major seeks to maintain elevated oil and gas production levels across its offshore Norwegian operations.

The company announced on Thursday that it has executed 12 framework agreements with seven supplier firms covering maintenance and modification work at offshore installations and onshore facilities. The contracts are valued at roughly 10 billion dollars (100 billion Norwegian crowns).

These agreements will commence during the first half of 2026 and run for an initial five-year term, with provisions for extensions of three years and two years respectively.

Kjetil Hove, executive vice president for the Norwegian continental shelf at Equinor, stated that the company’s objective centres on maintaining elevated production levels and ensuring reliable energy deliveries to Europe through 2035. He emphasised that achieving this target requires collaborative efforts with the supplier industry to identify innovative working methods that enhance competitiveness.

Equinor intends to allocate between 6 billion and 7 billion dollars (60 billion to 70 billion crowns) annually towards improved recovery techniques and new field developments on the Norwegian continental shelf. This investment programme underpins the company’s ambition to sustain production at approximately 1.2 million barrels of oil equivalent per day through 2035.

The production maintenance strategy encompasses an extensive drilling campaign. Equinor expects to complete around 250 exploration wells annually, approximately 600 wells dedicated to enhanced recovery, 300 well interventions per year, and some 2,500 modification projects. The company also plans to mature and develop more than 75 subsea developments suitable for connection to existing infrastructure.

In December, Equinor and its partners in the substantial Arctic Johan Castberg oilfield sanctioned an investment of 396 million dollars (4 billion crowns) to construct the initial tie-back of an adjacent discovery to the Castberg hub, which should increase oil production from the region.

Grete Birgitte Haaland, senior vice president for Exploration and Production North, noted that Equinor identifies opportunities to add between 250 million and 550 million new recoverable barrels through developments tied to Johan Castberg infrastructure.

Equinor and fellow Norwegian continental shelf operators are pursuing exploration prospects proximate to operational fields, aiming to utilise existing infrastructure and boost hydrocarbon production through tie-backs and tie-ins. This approach offers substantial cost advantages compared with standalone field developments.