Statoil's Rebrand a 'Bold Reinforcement' of Low Carbon Shift
Statoil’s rebranding is a bold reinforcement of the company’s shift towards new energy solutions and low carbon.
That is the view of Norman Valentine, senior vice president of corporate analysis at Wood Mackenzie, following Statoil’s announcement that it was planning on changing its name to Equinor.
“Statoil’s strategy has become differentiated from the other majors under the leadership of chief executive Eldar Sætre,” Valentine said in a company statement.
“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,” he added.
“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,” Valentine continued.
On March 15, Statoil announced that its board of directors proposed to change the name of the company to support the firm’s development as a broad energy business.
The proposal has already garnered support from all five unions representing Statoil employees, comprising Industri Energi, SAFE, NITO, Tekna and Lederne, as well as the Norwegian government, which is a majority shareholder in the company.
Statoil’s name change will be formally proposed to shareholders on May 15.
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