Equinor boasts increase in purchases from Norwegian suppliers

Norwegian oil major Equinor has increased purchases of goods and services from Norwegian suppliers to 70 percent in 2019.

Equinor said on Monday that it had bought goods and services worth NOK 161.6 billion ($17.34 billion) from more than 9,000 suppliers globally during 2019.

According to the company, NOK 113 billion ($12.1 billion), i.e. 70 percent of total purchases, went to suppliers from Norway.

Peggy Krantz-Underland, Equinor’s chief procurement officer, said: “A competitive supply industry is highly important for Norway and for Equinor.

“During the last years, we have seen steady growth in the Norwegian content of our total procurement: from 61 percent in 2017 to 67 percent in 2018 and to 70 percent in 2019.

“This is a recognition of the good work done by the Norwegian suppliers to respond to the tough transition in the energy sector in recent years.”

Equinor added that its total procurements increased from NOK 141.7 billion to NOK 161.6 billion from 2018 to 2019. This is related to the high project activity, increased exploration, and new fields in production in the company.

In 2019, five Equinor operated fields were put in production, including the giant Johan Sverdrup field on the Norwegian continental shelf and the Mariner field on the UK continental shelf.

Equinor is also investing in a world-class project portfolio coming on stream towards 2026, representing 6 billion barrels to the company. The firm is also working on several projects in the renewables industry. All future projects open new opportunities for the supply industry in Norway and internationally.

Equinor’s EVP for technology, projects, and drilling Anders Opedal, said: “During the last years we have achieved important efficiency gains together with suppliers.

“We have transformed our cost base, our drilling performance and how we develop projects. This has enabled Equinor to progress and sanction new projects in a challenging downturn period, awarding contracts and giving jobs to our suppliers and sub-suppliers.

“The industry will continue to be cyclical and volatile. To minimize the cycles, we should aim for a stable and predictable activity and a sustainable cost level.”

The Norwegian major also stated that it was focused on working with suppliers in more integrated ways, as one team, to eliminate waste embedded in interfaces, empower suppliers, and increase their responsibility.

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