Equinor to cut exploration staff by 30 per cent

Norwegian energy giant Equinor has decided to reduce its exploration staff by 30 per cent as the Covid-19 pandemic reduces oil demand.

In a statement sent to Offshore Energy, a spokesperson for Equinor said the planned reduction in positions in Equinor’s exploration organisation is around 30 per cent and it will affect both international locations and Norway.

Over a period of several years, and in line with industry trends, Equinor has considerably focused its global exploration efforts.

Global exploration spending has been reduced and Equinor is today spending about 1/3 on exploration compared to what it did 6-7 years ago.

The spokesperson said that Equinor’s exploration strategy entails a sharper focus on Norway, Brazil, US and some other well-established international markets for the oil and gas industry.

For 2020, Equinor expects to drill around 30-40 wells globally, and this announcement does not affect the planned activity level for 2020 and 2021.

“We will continue to deliver on a strong well program, both on the NCS and internationally”, the spokesperson concluded.

When it comes to spending, Equinor in March said it would reduce organic capex for 2020 from $10-11 billion to around $8.5 billion, a reduction of around 20 per cent, reduce exploration activity for the year from $1.4 billion to around $1 billion, and reduce operating costs by around $700 million compared to original estimates.