Equinor Posts Deep 2020 Loss, Sells US Assets
Umer Jamshaid 2 months ago Wed 10th February 2021 | 02:50 PM
Oslo, (UrduPoint / Pakistan Point News - 10th Feb, 2021 ) :Norwegian energy giant Equinor reported Wednesday a deep loss for 2020 as the coronavirus pandemic slashed demand and prices and announced it was divesting its loss-making US assets.
Equinor said it was selling off its interests in the Bakken oil field straddling the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments, for around $900 million.
"By divesting our Bakken position we are realising proceeds that can be deployed towards more competitive assets in our portfolio," he added.
Analysts at RBC Europe questioned the timing of the operation.
"Given the weak performance from its US assets in recent years, and multiple rounds of impairments, we believe the company was under pressure to retrench from its international expansion efforts," they said in a note.
"Clearly it is not a good time to be selling upstream assets," they added.
Oil prices even fell into negative territory at one point early last year as the pandemic saw governments worldwide impose harsh lockdown restrictions.
In the last few months however prices have recovered steadily, with Brent crude now back above $60 after producers cut output and the global economy shows signs of a rebound.