Equinor Signs Five-Year Eneco Gas Deal, Offloads Vaca Muerta Assets for $1.1B
Equinor signed a five-year Dutch gas supply contract with Eneco and sold its Vaca Muerta onshore assets to Vista Energy for $1.1B, boosting cash flow while retaining offshore interests. It sold 30% of US gas volumes at spot prices and targets a 10% operating cost reduction in 2026.
1. Equinor Secures Five-Year Gas Supply Agreement with Eneco
Equinor has signed a five-year contract to deliver natural gas to Netherlands-based energy supplier Eneco, beginning in January 2027 and running through December 2031. Under the terms, Equinor will supply an aggregate of 150 petajoules (PJ) of pipeline gas, with minimum annual deliveries of 30 PJ. The deal strengthens Equinor’s footprint in the Benelux region and is expected to generate approximately NOK 8 billion in revenue over its duration, based on current forward curves for European gas benchmarks.
2. Q4 2025 Earnings Call Highlights Strategic Priorities
During its fourth-quarter 2025 earnings call, Equinor reported a 12% year-on-year decline in underlying operating profit, attributing the drop to weaker benchmark oil and gas prices. Management reiterated a target to reduce operating costs by 10% in 2026 versus the 2023 baseline, aiming to save NOK 6 billion annually. Capital expenditure is being trimmed by 8% to NOK 80 billion next year, with a focus on high-return projects in the North Sea and offshore Brazil. The board confirmed a 2025 full-year dividend of NOK 3.75 per share, unchanged from the prior year.
3. Divestment of Argentina Onshore Assets for $1.1 Billion
Equinor has agreed to sell its onshore Vaca Muerta assets in Argentina to Vista Energy for $1.1 billion in cash. The transaction, expected to close in Q2 2026, covers working interests in eight onshore blocks and associated infrastructure. Proceeds will be directed toward debt reduction and reinvestment in offshore exploration and production in the country. Equinor retains a minority stake in two deepwater licenses in the Argentine basin, ensuring continued exposure to the region’s high-impact offshore potential.
4. Opportunistic U.S. Gas Sales and Cost Efficiency Drive Outlook
In January’s cold snap, Equinor sold roughly 30% of its U.S. onshore gas production on the spot market, capitalizing on price spikes that pushed Henry Hub equivalent values to near $18 per MMBtu. The CFO noted that spot sales contributed an incremental $150 million in EBITDA for Q1 2026. Looking ahead, the company aims to maintain flexible sales strategies while pressing for a 10% cut in global operating costs and improving capital efficiency, targeting a return on capital employed (ROCE) of at least 12% by the end of 2027.