BAKU, Azerbaijan, Oct.27
By Leman Zeynalova – Trend:
Liquids and gas production by Norway’s Equinor for 2021 is estimated to be around 2 percent above 2020 level, Trend reports with reference to the company.
Equinor’s ambition is to keep the unit of production cost in the top quartile of its peer group. Scheduled maintenance activity is estimated to reduce equity production by around 45 mboe per day for the full year of 2021.
Organic capital expenditures are estimated at around USD 8 billion for 2021, at an annual average of USD 9-10 billion for 2021-2022 and around USD 12 billion annual average for 2023-2024.
Total equity liquids and gas production was 1,996 mboe per day in the third quarter of 2021, compared to 1,994 mboe per day in the third quarter of 2020. The increase was mainly due to higher flexible gas off-take, ramp-up and positive contributions of fields on the Norwegian continental shelf, offset by the divestment of an unconventional US onshore asset in the previous quarter, expected natural decline and the shutdown at the Hammerfest LNG plant. Total entitlement liquids and gas production was 1,855 mboe per day in the third quarter of 2021, down 1 percent compared to 1,865 mboe per day in the third quarter of 2020.
The production was negatively influenced by the factors mentioned above in addition to lower entitlements under production sharing agreements (PSA) as a result of higher prices. The net effect of PSA and US royalties was 141 mboe per day in total in the third quarter of 2021 compared to 129 mboe per day in the third quarter of 2020.
Follow the author on Twitter: @Lyaman_Zeyn