From Statoil to Equinor

With the new strategy announced, one additional major change seemed to be a possibility - rebranding the company with a new name. Several executives said that they had received joshing from others in the petroleum sector, who pointed out that while the company had announced a new strategic direction, its name still said "state" and "oil." Eldar Sætre, Statoil’s president and CEO, had also heard the same comment. Renaming the company with a moniker that more accurately reflected the expanded interests of the company seemed an important step to take - at some time in the future.

But the decision to rebrand was profound. Under the name "Statoil" the company had a long history and was among the largest companies and employers in Norway. The name had been created in 1972, and earlier variations of the company had included the word Statoil. For many employees, the name had represented the company for their whole career, and any change would be emotional.^[1]  

A new name emerged as a favorite among the close-knit planning group under the leadership of CCO Reidar Gjærum. The new name – “Equinor” – combined "equi," as in equal, equality, and equilibrium, with "Nor" to represent Norway. Nonetheless, executives had much to discuss about the proposed change. The initial internal discussions at the end of 2017 were not unanimous about the decision or the timing. Some executives noted that the name change could be seen as an additional factor unsettling long-time stakeholders. Furthermore, Statoil had presented its new high-value low-carbon strategy in May 2017 and had just set up a new business area to focus on renewables. The company had announced new projects in the renewable space, but those were in the early stages of implementation. Some worried that the name change might look like "greenwashing," words with little substance behind them.

However, most executives saw a particular benefit to making the change sooner – they believed that Sætre was the right person to announce the name change. Sætre strongly supported the change, and a delay might lead to a time when the company had a new CEO, perhaps one coming in from outside, who might not have the same internal credibility as Sætre. His endorsement could reduce the risk of negative reactions or dissension within the company. 

Executive Vice President Irene Rummelhoff recalled her initial concern had been that the name change might be too early, since the company's renewable investments were just beginning. However, she quickly came to believe that the timing was appropriate, if aspirational. It signaled Statoil’s commitment to its new strategy. It was a moment when the company, the Norwegian government, and oil prices were stable. After exploring concerns and options, Statoil’s executives decided that the change was good and the time was ripe.

The discussions about a name change were very closely held. Executives wanted to present a fully developed policy and avoid any premature debate about the decision or what the name should be.

Getting Approval

Statoil’s leaders knew that they could not make the change without approval from the Norwegian government, the majority shareholder in the company. To present the change and ask for approval, Statoil’s Board Chair Jon Erik Reinhardsen, and Reidar Gjærum, Senior Vice President for Corporate Communication, met with Erna Solberg, Norway’s prime minister, and other members of the governing coalition. To avoid leaks, they had a very tight schedule. The Statoil participants gathered on March 9, Friday night, to meet with the government officials in Prime Minister Solberg's residence. After the presentation and discussion, they asked for the government’s decision by Monday morning, March 12. The government said yes. Statoil also informed the opposition parties the day before the announcement, so they would not be blindsided by the information. With government approval, the company moved quickly to announce the change. On March 15, 2018, Statoil announced that the Board had requested the name change to Equinor.

The change required formal approval through a vote by shareholders at Statoil's General Meeting on May 14, but there was no question about the outcome. Statoil's press release had already announced, "The Norwegian government, as majority shareholder, supports the proposal and will vote in favor of the resolution."^[2] 

The process had been extremely fast for such a major change. The first involvement with the board had been in October, and the change was approved by shareholders in May. As Reinhardsen, said later, "The stars were really aligned for this to happen."