Norwegian Equinor and American EQT Corporation Exchanged Assets
Equinor has entered into a deal to swap its onshore US assets in the Marcellus and Utica shale formations in Ohio for an unexploited stake in the Northern Marcellus formation of US energy company EQT Corporation, a hydrocarbon exploration and pipeline operator with operations in Pennsylvania, West Virginia and Ohio. Equinor will also pay EQT a cash consideration of $500 million to balance the overall transaction.
Under the agreement, Equinor will sell 100% of the equity and will be the operator of its onshore asset in the Appalachian Basin located in southeast Ohio in exchange for EQT’s 40% unoperated working interest in the Northern Marcellus shale formation in Pennsylvania.
Following the transaction, Equinor will increase its average ownership interest from 15.7% to 25.7% in certain Northern Marcellus gas fields operated by Chesapeake. To cover pre-existing gas sales obligations, Equinor will enter into a gas repurchase agreement with EQT.
Equinor’s U.S. business has generated $11 billion in revenue since 2020. Prior to this transaction, the Appalachian Basin operating position was the last remaining operator operation owned by Equinor onshore in the United States. The move means the Norwegian company will no longer operate any onshore assets in the US.
Final completion will be subject, among other things, to the approval of the relevant authorities.
