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Equinor bought worth NOK 141,7 billion goods and services from Norwegian suppliers in 2018

Gasoil News - Published on Thu, 07 Mar 2019

Image Source: norwaytoday.info
In 2018 Equinor purchased goods and services worth NOK 141,7 billion from more than 9000 suppliers globally. NOK 95,2 billion of this went to suppliers with a Norwegian billing address, i.e. 67% of total purchases. Peggy Krantz-Underland, Equinor’s chief procurement officer, said that “A competitive supply industry is highly important for the Norwegian continental shelf (NCS) and Equinor. Over the last year the Norwegian content of our total procurements has increased from 61% to 67%. The Johan Sverdrup project is the largest ongoing industrial project in Norway. In the first phase of the project Norwegian suppliers secured more than 70% of the contracts and in the second phase the Norwegian content is even higher. This is an indication of the the adaptability of the Norwegian supplier industry.”

Whereas Equinor’s total procurements declined from NOK 144,4 billion to NOK 141,7 billion from 2017 to 2018, the company increased its purchases from Norwegian suppliers by NOK 6,5 billion in the same period, from NOK 88,7 billion to NOK 95,2 billion.

Equinor’s executive vice president for Technology, Projects and Drilling, Anders Opedal, said that “The transition in the energy sector in recent years has been tough for many, but essential to ensuring long-term activity. The suppliers deserve credit for the way they have responded. The current level of activity on the NCS would have been lower without the successful cost reductions achieved by the supplier industry. This has enabled us to sanction new projects in a challenging period. The result is more value creation and important ripple effect.”

Equinor and the licence partners have sanctioned more than 20 large projects since 2016.

Mr Opedal said that “We are pleased to see optimism return in the industry. What matters now, is sticking to and building on the right things. Of everything we do, safety is most important. A holistic approach to safety, from design, through development and into operations is central to succeeding with a continuous improvement of our safety performance."

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Posted By : Rabi Wangkhem on Thu, 07 Mar 2019
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