Equinor Launches $5bn Share Buyback

Norway’s Equinor has initiated a $5bn share buyback programme, ahead of the launch of its flagship Johan Sverdrup oil project in the North Sea.

The programme will continue until the end of 2022, Equinor said in a September 5 statement. Its first tranche of $1.5bn has started and will end no later than February 25 2020, it said.

The buyback launch follows Equinor’s recent closure of deal that slashed its stake in Swedish player Lundin Petroleum while consolidating its control over Sverdrup. Hailed as one of the biggest oil finds off Norway in history, Sverdrup is slated to produce 440,000 b/day at peak capacity. Lundin announced separately on September 5 that the field would start up in October, a month earlier than scheduled.

“We have over the last years built a strong financial position with solid credit rating and a net debt ratio of 20%,” Equinor said. “The upcoming start-up of the world-class Johan Sverdrup field, combined with several other new fields in production, provides additional confidence in our outlook for production growth and increased cash generation capacity.”