Energy markets have evolved over the last years, with demand for broader and more integrated energy solutions.
Equinor is establishing two new business areas to position the company for safe, efficient operations and increased value creation.
The two new business areas, which will replace the existing Marketing, Midstream and Processing (MMP) business area, are established to better capture market opportunities and increase long-term value creation as a reliable provider of energy.
'This is about setting Equinor up for success in the future. I want to create the best possible conditions for safe and efficient operations of our onshore plants, while ensuring that we become better at identifying and pursuing opportunities in the market,' says Anders Opedal, CEO of Equinor.
'We have identified a clear value potential we can deliver through strengthening our trading business. This part of our business also ties together all our production and products, and will ensure that market insights and future customer demand will more actively drive strategy, portfolio decisions and business models for Equinor,' he continues.
The two business areas will be:
A new business area for midstream, processing and infrastructure
This area will be responsible for the onshore refinery, operated terminals, pipelines, storages and processing plants. The goal is to ensure safe, secure, efficient and reliable operations, while creating value through increased flexibility and closer collaboration with the business area Exploration and Production Norway (EPN). The business area will be led by Geir Sørtvedt.
A new business area to drive and accelerate Equinor's market orientation
This area will focus on developing and growing value from trading and capture value across different products, supported by innovative digital solutions. This will set Equinor up for even better insight into market developments and customer demand, and turning that insight into better commercial decisions across the company. The trading and marketing activities will sit in this business area and will play an important role in this change and will build on the updated commercial strategy MMP has developed. The business area will be led by Irene Rummelhoff.
The separation into two business areas enables a closer integration between strategy, operating model and organisational setup, with clearer accountability and better use of assets, insights, data and capabilities across Equinor.
A project is ongoing to further mature operating model and organisational structure. Potential changes to reporting segments or other impact will be assessed as part of the project. The ambition is to have a final solution ready before summer, with the new organisation to be operational in early 2027.
Source: Equinor
