Equinor launches $5 billion share buy-back program

Equinor is launching a share buy-back program of up to $5 billion over a period until the end of 2022. Equinor has, on behalf of the partners of the Northern Lights project. Equinor and Lundin have completed both parts of the transaction announced on 7 July 2019. Three Norwegian companies participate in the programme. The first tranche of the program of around $1.5 billion is commencing. Enova has approved an application for funding of up to NOK 2.3 billion.

It will end no later than 25 February 2020. Vice president for Exploration, Tim Dodson, and YPF’s CEO Daniel Gonzalez have signed an agreement. The consortium is currently launching the development of a 200MW floating wind farm. It have over the last years built a strong financial position with solid credit ratings. Equinor has, on behalf of the Oseberg partners, made a profitable oil discovery related to Oseberg Vestflanken.

Eldar Saetre, president and CEO of Equinor ASA says “Equinor is committed to capital distribution to our shareholders”.

The upcoming start-up of the world-class Johan Sverdrup field, combined with several other new fields in production. Equinor and its partners Ineos E&P and Faroe Petroleum have made an oil and gas discovery. Equinor, in cooperation with its partners Shell and Total, is studying the possibilities for developing a CO₂ storage. It follows all transaction conditions being met, including government and regulator approvals.

It provide additional confidence in our outlook for production growth and increased cash generation capacity. The Northern Lights project includes transport, reception and permanent storage of CO₂. The overall result is that Equinor has divested a 16 percent shareholding in Lundin. A good position to increase capital distribution, while continuing to invest in high-quality project portfolio. Equinor and its partners are considering the possibility of supplying electricity from a floating offshore wind farm.

“Following strong operational improvements over recent years, we increased the quarterly dividends by 13% this year”, Equinor’s chief financial officer, Lars Christian Bacher said.

Utilizing share buy-backs as an additional tool to strengthen capital distribution is aligned with dividend policy. The ten start-up companies have been selected from hundreds of applicants across 42 countries. The licences have received for the Hywind Tampen project demonstrates. The preliminary agreement was signed at Equinor’s office in Oslo. The share buy-back program of up to $5 billion, including shares to be redeemed from the Norwegian State.

The consortium will carry out a feasibility study for the wind farm. The well was drilled by the Askepott rig and the discovery will soon be put on stream. It intended to be executed in the market until the end of 2022. With the support company have taken an important step forward in realising the project. On 4 September 2019 the full program represents around 292 million shares or around 8.7 % of the share capital.

The storage project is part of the Norwegian State’s demonstration project «Full-scale CO₂. The well had two different reservoir targets. The purpose of the share buy-back program is to reduce the issued share capital of the company. It will seek to accelerate their solution by tapping into a global network of experts. It delighted with opportunity to continue and expand close partnership. The consortium will start constructing a floating offshore wind farm in 2022.

All shares repurchased as part of the program will be cancelled. The first part, Sparebank1 Markets’ acquisition of around 54.5 million shares in Lundin Petroleum. Earlier the Business Sector’s NOx Fund decided to support the Hywind Tampen project. YPF in Argentina. Currently are partners in two offshore blocks in the same area. According to an agreement between Equinor and the Norwegian State, represented by the Ministry of Petroleum and Energy.

It’s very pleased to be member of the partnership involved in realising the first floating offshore wind. The Norwegian State will participate in share buy-backs on a proportionate basis. The Hywind Tampen project will contribute to further developing floating offshore wind technology. The share buy-back program will be structured into tranches where Equinor will buy back a certain USD value. The energy industry is changing fast, and these companies are at the forefront of that change.

The execution of further tranches of the program will be notified to the market. It included in the Oseberg Vestflanken phase 2 project. The conditional upon future annual general meetings renewing the authorization to buy back own shares. The second part, Equinor Energy’s acquisition of a 2.6 percent interest in the Johan Sverdrup field. The dividend policy outlines that Equinor might buy back shares as part of total distribution of capital to shareholders.

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