Equinor ASA | Report on the financial and geopolitical risks associated with the company’s activities in the Barents Sea at Equinor ASA

Status
Filed
AGM date
Previous AGM date
Proposal number
9
Resolution details
Company ticker
EQNR (previously Statoil)
Lead filer
WWF
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Filer type
Shareholder
Company sector
Energy
Company HQ country
Norway
Resolved clause
The shareholders request that Equinor present a clear and comprehensive assessment of the risks associated with continued exploration and expansion in the Barents Sea, including: • The financial risk related to the development of the Wisting field, a potential new gas pipeline between the Barents Sea and the Norwegian Sea, as well as new exploration activities in areas without existing infrastructure. The assessment shall include expected returns and whether the projects are expected to have a break-even price below USD 35 per barrel. • The geopolitical risk associated with Equinor’s activities in the Barents Sea, including the risk of sabotage to oil and gas infrastructure and exploration activities near international and Russian waters.
Supporting statement
In recent years, Equinor has increased its activity in the Barents Sea despite declining interest among international oil companies, weak exploration results, and persistently high-cost levels. The area is sparsely developed, with limited infrastructure and a lack of gas infrastructure for processing new gas resources, which entails significant financial and strategic risk for new projects. The shareholders draw particular attention to the following factors: • The Wisting field, where the investment decision has previously been postponed due to weak profitability. Current estimates indicate that Wisting has a break-even price of approximately USD 44 per barrel1, well above Equinor’s stated target of an average break-even price of USD 35 per barrel for new projects. • Continued exploration activity in the Barents Sea, where Equinor currently holds 37 production licenses. Estimated break-even prices for undiscovered resources in these licenses vary significantly, ranging from approximately USD 33 to USD 185 per barrel, with an average of around USD 73 per barrel, indicating a high level of financial risk. • Any potential development of a gas pipeline from the Barents Sea to the Norwegian Sea, which would require joint investment by the companies operating in the Barents Sea, including Equinor. The pipeline is estimated to have an investment cost of approximately NOK 56 billion. Combined with a long time horizon and the EU’s objectives of reduced fossil fuel dependency and net-zero emissions by 2050, this entails a significant risk of low profitability and stranded assets. • Increased geopolitical risk associated with oil and gas activities in areas close to Russian and international waters, including the risk of sabotage to critical energy infrastructure, as well as an overview of the costs associated with increased preparedness and security. On this basis, the shareholders request that Equinor explain how the company assesses the overall financial and geopolitical risks of further expansion in the Barents Sea, and how such investments are compatible with the company’s profitability requirements and long-term value creation for shareholders. The shareholders request that this assessment be made available for shareholder review no later than the Q3 reporting for 2026. 1FID breakeven based on data from Rystad Energy, assuming a 10% nominal required rate of return

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
Sampension Administrationsselskab A/SForSampension support this proposal, as we expect companies to ensure that capital allocation decisions are disciplined, economically robust, and take into account all material risks while remaining in line with global climate goals.

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