BAKU, Azerbaijan, Oct.29
By Leman Zeynalova – Trend:
Total equity liquids and gas production of Norway’s Equinor was 1,994 mboe per day in the third quarter of 2020, up 4 percent compared to 1,909 mboe per day in the third quarter of 2019 mainly due to new fields on the NCS and UKCS, Trend reports citing the company.
“Increased flexible gas production added to the increase, partially offset by expected natural decline mainly on the NCS, production halt in Brazil and divestment of the Eagle Ford asset in the E&P USA segment in the fourth quarter of 2019.
“Total entitlement liquids and gas production was 1,865 mboe per day in the third quarter of 2020, up 7 percent compared to 1,745 mboe per day in the third quarter of 2019. In addition to the factors mentioned above, production was positively influenced by lower effects from production sharing agreements (PSA), and lower US royalty volumes. The net effect of PSA and US royalties was 129 mboe per day in total in the third quarter of 2020 compared to 164 mboe per day in the third quarter of 2019.
“Net operating income was negative USD 2,019 million in the third quarter of 2020, compared to negative USD 469 million in the third quarter of 2019. The decrease was mainly due to lower liquids and gas prices in addition to net impairments3 primarily related to reduced price assumptions4 and negative reserve updates. Strong results from liquids trading in the MMP segment in addition to lower operational and administrative expenses, especially in the MMP segment, partially offset the decrease.
“In the third quarter of 2020, net operating income was negatively impacted by net impairments3 of USD 2,928 million and provisions of USD 108 million. Changes in fair value of derivatives and inventory hedge contracts of USD 352 million partially offset the decrease. In the third quarter of 2019, net operating income was negatively impacted mainly by net impairments of USD 2,794 million, provisions of USD 560 million and changes in fair value of derivatives and inventory hedge contracts of USD 444 million and positively affected by gain from sale of assets of USD 849 million,” the company said.
---
Follow the author on Twitter: @Lyaman_Zeyn