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Equinor expects production growth from new projects in 2019–2026

Oil&Gas Materials 8 May 2020 16:47 (UTC +04:00)

BAKU, Azerbaijan, May 8

By Leman Zeynalova - Trend:

Norway’s Equinor company expects production growth from new projects in 2019–2026, Trend reports citing the company.

Organic capital expenditures are estimated at around $8.5 billion for 2020, around $10 billion for 2021, and around $12 billion annual average for 2022-2023

Equinor intends to continue to mature its attractive portfolio of exploration assets and estimates a total exploration activity level of around $1 billion for 2020, excluding signature bonuses and field development costs.

Equinor’s ambition is to keep the unit of production cost in the top quartile of its peer group. For the period 2019–2026, production growth is expected to come from new projects resulting in around 3 percent CAGR (Compound Annual Growth Rate) based on current forecast.

Scheduled maintenance activity is estimated to reduce equity production by around 25 mboe per day for the full year of 2020.

“These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. We continue to monitor the impact of Covid-19 on our operations,” said the company.

Deferral of production to create future value, production cuts, gas off-take, timing of new capacity coming on stream, operational regularity, impact of Covid-19, activity level in the US onshore, as well as uncertainty around the closing of the announced transactions represent the most significant risks related to the foregoing production guidance. There has been considerable uncertainty created by the Covid-19 pandemic and we are unable to predict the impact of this event.

“Our future financial performance, including cash flow and liquidity, will be impacted by the extent and duration of the current market conditions, the development in realised prices, including price differentials and the effectiveness of actions taken in response to the pandemic. We cannot predict how long current supply and demand imbalances will last or what the ultimate impact of Covid-19 will be on general economic conditions worldwide,” said Equinor.

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