Equinor has announced a significant expansion of its natural gas portfolio in the US by acquiring additional interests in the Northern Marcellus formation.
The deal involves Equinor purchasing 100% of EQT's remaining working interest in Northern Marcellus gas units for $1.25bn (Nkr13.64bn).
The Norwegian energy company’s working interest in the assets, primarily operated by Expand Energy, will increase from 25.7% to 40.7%.
This strategic move is expected to bolster Equinor's cash flow by adding substantial natural gas volumes with low carbon intensity emissions from production.
The acquisition, subject to closing conditions, will be effective from the end of December 2024, aligning with the acreage included in a swap agreement with EQT announced earlier this year.
Upon completion, the transaction is set to add approximately 80,000boepd to Equinor's production in the US.
This addition will enhance the company's international portfolio and contribute to its growth strategy in the region.
Equinor exploration and production international executive vice-president Philippe Mathieu said: “We continue to high-grade Equinor’s international portfolio in line with our strategy, improving robustness by adding more natural gas volumes in a core market where we produce with low break-evens and low intensity upstream emissions.
“We are well positioned in this premium acreage to capitalise on positive long-term demand indicators in the US gas market.”
Equinor's Exploration and Production (E&P) USA business has already performed strongly, delivering more than $5.5bn in adjusted operating income after tax since the beginning of 2021.
The closing of the deal is contingent upon approval from relevant authorities, ensuring compliance with regulatory standards and industry practices.
In related news, Equinor continues to advance its operations with the recent awarding of a contract to Aker Solutions for topside modifications on the Troll A platform, an integral part of the Troll Phase 3 project offshore Norway.
The EPCIC contract, valued between Nkr500m and Nkr1.5bn, is aimed at increasing gas production from the Troll West gas reservoir.
