Equinor Suspends Offshore Construction Activities
As the result of a halt work order from the US government, Empire Offshore Wind LLC, part of Equinor, has decided to safely pause the offshore construction in the outer continental shelf waters for the Empire Wind project. This decision was made to comply with regulatory directives while prioritizing the safety of all personnel involved.
Understanding the Halt Work Order
On April 16, Empire Offshore was informed by the Bureau of Ocean Energy Management (BOEM) about the mandatory pause in activities on the outer continental shelf. This halt remains effective until BOEM completes its thorough review of the project. In light of this situation, Empire is actively engaging with the relevant authorities to clarify the circumstances surrounding this order and is also exploring potential legal remedies, including an appeal.
Empire Wind Project Overview
The Empire Wind project entered into a federal lease agreement with the US Administration in 2017. Currently, Empire Wind 1 has successfully secured all required federal and state permits and is undergoing construction. This project plays a crucial role in aiming to provide a new, substantial source of electricity for New York State. The construction project has created over 1,500 jobs within the US and has the capacity to supply power to approximately 500,000 homes in New York.
Commitment to Safety and Compliance
As responsible stewards of energy resources, Empire Offshore Wind is committed to adhering to the order that impacts all ongoing project activities. In response to the received notice, immediate actions were initiated by Empire and its contractors to halt any relevant marine activities, emphasizing the safety of both workers and the surrounding environment.
Financial Aspects of Empire Wind
As of March 31, 2025, the Empire Wind project holds a gross book value close to USD 2.5 billion, which includes the South Brooklyn Marine Terminal. Equinor’s stake in the project is maintained through Equinor Wind US LLC. The total amount drawn against the project finance term loan facility as of the same date was approximately USD 1.5 billion. The team at Empire is currently assessing how this order might affect the overall project and its financial arrangements.
Equinor's Role in Project Finance
Equinor US Holdings Inc has provided crucial guarantees that support the equity commitment for the project financing. In the event that the project faces a full stop, the earmarked USD 1.5 billion will need to be repaid from the equity commitments made towards the project finance lenders, which could subject Empire Offshore Wind LLC to termination fees with its suppliers.
Equinor's Presence in the Energy Market
With a rich history spanning over 35 years in the US energy landscape, Equinor has continuously demonstrated its commitment to sustainable energy initiatives. The company has so far invested in excess of USD 60 billion within the US across various sectors, including oil, gas, and renewable energies, reinforcing its position as a leading energy provider.
Contact for More Information
If you have inquiries regarding the Empire Wind project or the company's activities, please reach out to the following contacts:
Investor relations:
Bård Glad Pedersen, Senior Vice President Investor Relations,
Phone: +47 918 01 791
Media relations:
Sissel Rinde, Vice President Media Relations,
Phone: +47 412 60 584
Frequently Asked Questions
What triggered the suspension of construction activities?
The US government's halt work order mandated the suspension, leading Empire Offshore Wind to pause construction for compliance and safety assurance.
How is Equinor addressing the halt work order?
Equinor is engaging with relevant authorities to clarify the situation and is considering legal remedies, including the possibility of an appeal.
What is the potential impact on local jobs?
The pause in construction may affect the employment of over 1,500 workers currently involved in the project, which has created significant job opportunities.
What is the overall value of the Empire Wind project?
As of March 31, 2025, the Empire Wind project is valued at approximately USD 2.5 billion.
How will Equinor manage financial obligations due to the pause?
Equinor has provided guarantees for equity commitments in the project financing, and any repayment obligations will be addressed in light of the financial assessments.
