BAKU, Azerbaijan, Apr.30
By Leman Zeynalova – Trend:
Scheduled maintenance activity is estimated to reduce Equinor’s equity production by around 50 mboe per day for the full year of 2021, Trend reports with reference to the company.
Production for 2021 is estimated to be around 2 percent above 2020 level. Organic capital expenditures are estimated at an annual average of $9-10 billion for 2021-2022.
Equinor intends to continue to mature its attractive portfolio of exploration assets and estimates a total exploration activity level of around USD 0.9 billion for 2021, excluding signature bonuses, accruals 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 2020–2026, production growth is expected to come from new projects resulting in around 3 percent CAGR (Compound Annual Growth Rate) based on current forecast.
“We continue to monitor the impact of Covid-19 on our operations. Deferral of production to create future value, production cuts, gas off-take, timing of new capacity coming on stream, operational regularity, the ongoing impact of Covid-19 and activity level in the US onshore 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 still unable to predict the ultimate impact of this event, including impact on general economic conditions worldwide. 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,” said the company.
---
Follow the author on Twitter: @Lyaman_Zeyn