$32 Million to Remove the Word Oil From Company Name? | OutPut by Rig Lynx

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Brought to you from OutPut by Rig Lynx – Norway’s biggest petroleum company, will change its name to Equinor as it seeks to broaden its energy reach beyond oil and gas production.

“The world is changing, and so is Statoil,” said Chairman Jon Erik Reinhardsen in a statement. “The biggest transition our modern-day energy systems have ever seen is underway, and we aim to be at the forefront of this development.”

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Statoil said its strategy presented in 2017 set clear principles for the development of a distinct and competitive portfolio, which includes about 15 percent to 20 percent of its investments to be in “new energy solutions” by 2030. Since Chief Executive Officer Eldar Saetre took over the company in 2014, the company has increased investments in offshore wind power, and recently entered solar energy.

The rebranding costs are estimated at between 230 million kroner ($30 million) and 250 million kroner, a person familiar with the matter said. The Equinor name is currently held by an Oslo-registered veterinarian, but that company is changing its name shortly, it said on its website. 

“Equi” is supposed to express Statoil’s emphasis on all types energy resources while “nor” maintains the company’s roots in Norway and its strengths in the North Sea.

Although publicly traded on the New York Stock Exchange with a sizable presence in Houston, Statoil remains majority owned by the Norwegian government. Statoil’s shareholders are expected to vote on the name change at the May 15 annual meeting. The Norwegian government already supports the change.

The new name will be proposed to shareholders in a resolution to the Annual General Meeting on May 15. The change is supported by the Norwegian government, as well as Statoil’s five unions, the company said.

Statoil was formed by the government more than 45 years ago to take advantage of Norway’s oil and gas resources offshore in the North Sea.

Statoil shares rose 0.6 percent to 179.5 kroner a share as of 9:44 a.m. in Oslo.

More so than their American counterparts, the biggest European energy companies like Statoil, Royal Dutch Shell, BP and Total are pushing the need to reduce their carbon emissions, lower their investments in crude oil and work to help meet the goals of the Paris climate accord, even as they acknowledge the world isn’t on track to meeting them. The U.S. is pulling out of the accord under the Trump administration.

“The Norwegian continental shelf will remain the backbone of our company, and we will use our Norwegian heritage in our positioning as we continue growing internationally within both oil, gas and renewable energy,” Chief Executive Officer Eldar Saetre said.

Brought to you from OutPut by Rig Lynx

 

 

 

 

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