Equinor is replacing its Marketing, Midstream & Processing division with two separate units: one focused on infrastructure and operations, and the other dedicated to trading and market strategy.
The first unit will be responsible for managing midstream, processing, and infrastructure assets, including refineries, pipelines, terminals, and storage facilities. Led by Geir Sørtvedt, this unit's mission is to improve operational efficiency, reliability, and integration with upstream production, particularly from the Norwegian Continental Shelf.
The second unit, led by Irene Rummelhoff, will concentrate on trading and market-oriented activities. Its responsibilities include guiding strategic and portfolio decisions by leveraging data, digital tools, and market intelligence to enhance value capture from commodities.
CEO Anders Opedal described this move as a shift towards a more commercially driven model, emphasizing the growing importance of trading in connecting production with customer demand and optimizing returns.
The restructuring is expected to be completed by early 2027, with further reviews planned for the reporting structure.
This reorganization comes as Equinor reported strong performance for 2025, despite softer commodity prices. Benefiting from a record daily production of 2.14 million barrels of oil equivalent, the company posted an adjusted operating revenue of $27.6 billion and a net profit of $6.43 billion.
Growth was driven by new projects, including Johan Castberg in Norway and Bacalhau in Brazil, alongside continued strong performance from legacy assets such as Johan Sverdrup.
Equinor also maintained capital discipline, with organic capital expenditures of $13.1 billion and a return on capital employed of 14.5%.
This move reflects a broader shift in global energy markets, where volatility, geopolitical risks, and changing demand patterns are increasing the value of integrated trading capabilities.
European energy majors, in particular, have been expanding their trading operations to capitalize on arbitrage opportunities in gas, LNG, and power markets. Equinor's decision aligns with this trend, positioning trading as a core driver of company strategy rather than a support function.
Simultaneously, separating infrastructure operations highlights the ongoing importance of stable, cash-generating midstream assets—especially within a gas-heavy portfolio like Equinor's.
Equinor's restructuring also coincides with a realignment of its energy transition strategy. The company acknowledges that renewable and low-carbon project development has slowed due to market conditions, prompting a greater focus on profitability.
While offshore wind projects like Dogger Bank and Empire Wind continue to advance, Equinor is prioritizing capital efficiency and returns across its entire portfolio.
The company has reduced its operational emissions by 34% compared to 2015 levels and continues to target a 50% reduction by 2030, although progress toward net-zero goals is being adjusted in line with market realities.
Equinor is repositioning its organization to better monetize its production through enhanced trading capabilities while maintaining operational discipline on its infrastructure foundation, signaling a more market-driven approach in an increasingly complex energy landscape.