By Adam Whittaker

Equinor plans to spend more on oil and gas projects as it seeks to grow production and increase shareholder returns, including a doubling of its 2026 share buyback to $3 billion.

The Norwegian energy major said Tuesday that the strategy reflects a higher for longer demand outlook for oil and gas. The plan mirrors similar efforts by its peers: focusing spending on higher-returning fossil-fuel assets in a bid to grow cash that can be funneled into returns for shareholders.

Equinor is seeking to capitalize on rising energy demand stemming from artificial intelligence and electrification efforts, while conflicts in the Middle East and Ukraine highlight the importance of energy security.

The company said it would target production of 2.3 million barrels of oil equivalent a day by 2030, with output from the Norwegian continental shelf driving much of the growth. In 2025, Equinor produced a record high 2.14 million barrels of oil equivalent a day.

More than half of its capital expenditure will be spent on the Norwegian shelf, production from which has become a lifeline for Europe as it weaned itself off Russian gas in the wake of the country's invasion of Ukraine.

The company will allocate around a third of its capital expenditure to international exploration and production. It currently holds positions in the U.S., Brazil, Angola, U.K. and Canada.

Equinor is the first energy major in recent times to formally increase upstream spending, with medium-term expenditure slightly higher than market watchers had expected, RBC Capital Markets Analysts Biraj Borkhataria and Adnan Dhanani write.

It will also expand its marketing and trading activities in a bid to grow the division's adjusted earnings by 25% by 2030. It comes as some of its European peers reported bumper first-quarter profits after traders capitalized on the closure of the Strait of Hormuz and subsequent volatility across energy markets.

Equinor hopes the plan will help deliver an annual share buyback of between $2 billion and $4 billion from 2027. The actual payment will be dependent on oil and gas prices, as well as macroeconomic conditions and the strength of its balance sheet.

The company is targeting above 5% annual growth in quarterly cash dividend per share.

In European midday trade, shares were largely unchanged.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

June 16, 2026 07:51 ET (11:51 GMT)

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