news has revealed that Equinor and its partners torch much more abroad than in Norway. news’s calculations show that flaring leads to large CO₂ emissions and waste of energy equivalent to the consumption of almost 900,000 Norwegian households. – If news’s findings are correct, it is disappointing, says senior analyst Arild Skedsmo in KLP. Equinor believes that news’s flaring figures are too high, but without presenting its own figures on flaring. news has also documented that there are solutions to reduce flaring in countries such as Argentina, Algeria and Angola, which have not been put into use. Reasons that Equinor mentions are poor space in the pipes, old equipment and partners who do not agree. KLP owns 0.7 per cent of the shares in Equinor to a value of between NOK 5 and 6 billion. This makes them one of the largest shareholders in the energy giant. – We expect Equinor to use this expertise and the best available technology to minimize flaring, also when they operate abroad, says Skedsmo. CAN BE EXTINGUISHED: The torch at the Tiguentourine gas plant in In Amenas in Algeria. Photo: Reuters – Cannot dictate other countries Equinor is not an operator in these fields. This makes it more difficult to put measures in place, according to the company. Equinor says that they have proposed to reduce flaring, but that they have not been implemented. – Naturally, we cannot dictate other countries’ petroleum policy or decide on partnerships where we only have a minority share, but we see that we have achieved positive results as a result of patient and systematic work by our people in the licences, says Equinor’s press officer, Ola Morten Aanestad. Ola Morten Aanestad in Equinor. Photo: Ronald Hole Fossåskaret Arild Skedsmo in KLP understands that it is difficult, but: – If it is the case that Equinor does not get approval for using the best technology to minimize production emissions at new plants, they should find some other partners, he says . CRITICAL: Arild Skedsmo in KLP. Another major shareholder, Storebrand, says that they feel that Equinor takes climate emissions seriously and works actively to cut them. At the same time, Storebrand’s executive director of asset management, Jan Erik Saugestad, says the following: – We would like to see Equinor be a driving force to reduce the extent of flaring. There is a waste of energy and large unnecessary emissions linked to this flaring, he says. How can the partners influence the flaring? One company is often the operator of an oil or gas field, while others are partners. The operator often has the largest ownership stake and is responsible for day-to-day operations. If, for example, a partner wants to do something with the flaring, then the company must bring the operator along. Decisions are usually made by voting. The greater the stake in a field, the more heavily the votes weigh. But this can vary. In some places, all owners must agree on measures. Abroad, in 2023 Equinor was a partner in most fields in production; on 22 out of 31 fields. They were operators of nine fields. In Norway, in 2023, Equinor was a partner in seven fields, while they were the operator of 46 fields. Aanestad in Equinor says that the company is precisely a driving force. – The flaring intensity on the fields Equinor operates is one-tenth of the industry average. This includes the fields we operate outside of Norway, he says. Aanestad also highlights certain locations where, as a partner, they have reduced flaring, such as the Roncador field in Brazil, Agbami in Nigeria and Block 17 in Angola. ANGOLA: Here at Block 17, the flaring has been reduced. Photo: © Angola Image Bank / © Kostadin Luchansky | KODILU | The flame in Argentina Far out in the wasteland of Argentina we find one of the many oil fields abroad where Norwegian Equinor is a co-owner: Bajo del Toro. And then we find a big torch. FIVE YEARS: The torch in Bajo del Toro has been burning for five years, although little oil is recovered. Photo: Hilda Lishaugen Nyfløt / news Nowhere in the world does Equinor burn as much gas per barrel of oil produced as here, news’s figures show. Large amounts of CO₂ and energy go straight into the air. The figures also show that the torch has been burning for five years. – Perhaps the conclusion should be liquidate, not develop? asks Arild Skedsmo in KLP. According to Equinor, Bajo del Toro is currently in an “exploration and assessment phase”. The company has not decided whether the field will be developed. If this happens, the plant will be connected to a gas pipeline. Then flaring will be reduced and have a CO₂ intensity that is “very competitive”, according to the company. – If it is necessary to flare as much gas as news estimates over a five-year period of trial production, it should be reconsidered whether fields with shale oil and gas such as Bajo del Toro are to be developed at all, says Skedsmo. Equinor has told news that some of the gas is used for local power production, but without giving any figures for this. The company also says that news’s calculations from Argentina are too high, but that they have not received permission from the operator to show us their figures. Wants the state on the field The state is by far the largest owner in Equinor with a share of 67 per cent. Environmental organizations and certain parties therefore want the state to pressure Equinor to cut emissions from flaring. Finance professor Karin S. Thorburn at the Norwegian School of Economics (NHH) has researched corporate governance and points out that there is a limit to what the state can do. Karin S. Thorburn is professor of finance at the Norwegian School of Economics (NHH). Photo: Marit Hommedal / NHH – The state is in a dilemma, as both regulator and shareholder in a company that operates in other parts of the world. A company does not have a climate responsibility beyond adhering to laws and regulations. States and governments determine these frameworks. Many countries have privatized state-owned companies to avoid these conflicts of interest. EQUINOR OWNS 30 PERCENT: At Bandurria Sur in Argentina there are pipes to transport the gas away. Nevertheless, a lot of gas is burned. Photo: Hilda Lishaugen Nyfløt / news Thorburn says the state can introduce a tax on Equinor and other Norwegian companies’ greenhouse gas emissions abroad, but that could lead to Equinor making less money. The finance professor doubts that the market is willing to pay more for oil and gas from levied Equinor fields. Climate and Environment Minister Andreas Bjelland Eriksen (Ap) believes the state has an aggressive ownership policy. – I think Norway has the best opportunity to contribute through Equinor being able to use its technical expertise, and through us as politicians using our influence, says the minister. Lauren MacDonald from Scotland wants to stop Equinor’s Rosebank project. The environmental organization ACCR has produced a report that criticizes Equinor’s foreign investment. Published 05.09.2024, at 05.56
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– Maybe Equinor should liquidate? – news – Climate
