Equinor, the Norwegian energy giant, said it is considering legal action after receiving a halt work order from the US government for its Empire Wind project, despite the project being fully permitted and under construction.
The development, set to be developed in federal waters approximately 15 to 30 miles off the coast of New York's Long Island, could deliver power to half a million New York homes, is about 30% complete and carries a gross book value of US$2.5 billion.
A halt order was issued two weeks ago.
“We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful,” said chief executive Anders Opedal.
“We seek to engage directly with the US Administration to clarify the matter and are considering our legal options.”
The comments accompanied Equinor’s first-quarter results, which showed adjusted operating income of US$8.65 billion and net income of US$2.6 billion.
Performance was underpinned by solid oil and gas production and favourable gas prices. The company confirmed it remains on track to return up to US$9 billion to shareholders this year.
Elsewhere in the quarter, Equinor started production from the Johan Castberg and Halten East fields in Norway, and made a final investment decision on the second phase of the Northern Lights carbon capture project, alongside partners Shell and TotalEnergies.
Shell and Equinor struck a deal in December to combine their respective UK North Sea assets into a new company, which will become Britain’s largest independent oil company.