Statoil has announced plans to change the name of the company to Equinor.
The name Equinor is formed by combining “equi”, the starting point for words like equal, equality and equilibrium, and “nor”, signalling a company proud of its Norwegian origin, and who wants to use this actively in its positioning.
Norman Valentine, senior vice president, corporate analysis, at Wood Mackenzie, says, “Statoil’s rebranding to become Equinor is a bold reinforcement of the company’s shift towards new energy solutions and low carbon. Statoil’s strategy has become differentiated from the other majors under the leadership of chief executive Eldar Sætre.
“The focus on offshore wind has obvious synergies with Statoil’s legacy oil and gas business. Returns from wind power could add a steady, long-life element to the company’s cash flow outlook, offsetting the risk of decline from core oil and gas assets next decade.
“Equinor will also start life with a carbon intensity advantage. We estimate Statoil’s carbon emissions intensity is the lowest of any large oil and gas company.”
Sætre says the name Statoil has served well for almost 50 years. “Looking towards the next 50 years, reflecting on the global energy transition and how we are developing as a broad energy company, it has become natural to change our name. The name Equinor captures our heritage and values, and what we aim to be in the future.”
The world is changing, and so is Statoil, says chair of the board in Statoil, Jon Erik Reinhardsen. “The biggest transition our modern-day energy systems have ever seen is underway, and we aim to be at the forefront of this development. Our strategy remains firm. The name Equinor reflects ongoing changes and supports the always safe, high value and low carbon strategy we outlined last year,”
Statoil’s strategy presented in 2017, sets clear principles for the development of long-term value on the Norwegian continental shelf and the development of new growth options internationally. Statoil claims to be one of the world’s most carbon-efficient producers of oil and gas, and will develop its low carbon advantage further. Statoil is building a material industrial position within profitable renewable energy, and expects to invest 15-20 percent of total capex in new energy solutions by 2030.
The new name will be proposed to shareholders in a resolution to the Annual General Meeting on May 15. The Norwegian government, as majority shareholder, supports the proposal and will vote in favor of the resolution.