BAKU, Azerbaijan, March 23
By Leman Zeynalova – Trend:
Proved oil and gas reserves of Norway’s Equinor were estimated to be 5,260 million boe at year end 2020, compared to 6,004 million boe at the end of 2019, Trend reports citing the company.
Approximately 89 percent of Equinor’s proved reserves are located in OECD countries. Norway is by far the most important contributor in this category, followed by USA and Canada. Of Equinor's total proved reserves, 5 percent are related to PSAs in non-OECD countries such as Angola, Algeria, Azerbaijan, Libya, Nigeria and Russia. Other non-OECD reserves are related to concessions in Argentina, Brazil and Russia, representing all together 6 percent of Equinor's total proved reserves.
Changes in proved reserves estimates are most commonly the result of revisions of estimates due to observed production performance or changes in prices or costs, extensions of proved areas through drilling activities or the inclusion of proved reserves in new discoveries through the sanctioning of new development projects.
These are the result of continuous business processes and can be expected to continue to add reserves in the future. Proved reserves can also be added or subtracted through the acquisition or divestment of assets or due to factors outside management control, such as changes in oil and gas prices. Changes in oil and gas prices can affect the quantities of oil and gas that can be recovered from the accumulations. Higher oil and gas prices will normally allow more oil and gas to be recovered, while lower prices will normally result in reductions. However, for fields with PSAs and similar contracts, increased prices may result in lower entitlement to produced volumes and lower prices may increase entitlement to produced volumes. These described changes are included in the revisions category.
---
Follow the author on Twitter: @Lyaman_Zeyn