Equinor to Postpone Start-Up of Some Projects on Pandemic Costs, Weak Krone
October 07 2020 - 5:13AM
Dow Jones News
By Dominic Chopping
Norwegian oil-and-gas major Equinor ASA said Wednesday that it
will postpone the start-up of three projects as the Covid-19
pandemic and a weakened Norwegian krone have driven up costs.
Quarantine rules, limited mobility for personnel, reduced
manpower and social distancing requirements have resulted in lower
activity on most construction sites, causing delays, cost increases
and consequences for further work, it said.
In addition, a weakened Norwegian currency in the past year has
driven cost increases for several of its projects under development
as several large-scale contracts, including those with Norwegian
suppliers, are priced fully or partly in foreign currency, it
added.
The Martin Linge, Johan Castberg and Njord projects have
experienced the largest cost increases since the plans for
development and operation were submitted and will now see postponed
start-ups.
Start-up at the Martin Linge North Sea project will be delayed
until the summer of 2021, Johan Castberg in the Barents Sea until
the fourth quarter of 2023 and the Njord Future project in the
Norwegian Sea until 2021.
Start-up had been planned for Martin Linge at the end of 2020,
Johan Castberg in 2022 and Njord in 2020.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 07, 2020 04:58 ET (08:58 GMT)
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