BAKU, Azerbaijan, July 27. International equity liquid and gas production by Norway’s Equinor company stood at 323 000 barrels of oil equivalent per day (mboe/day) in H1 2022, as compared to 354 mboe/day in the same period in 2021, showing a 9 percent decrease, Trend reports with reference to the company.
The daily liquid and gas production dropped by 12 percent quarter-on-quarter from 341 mboe/day to 306 mboe/day.
Entitlement liquid and gas production decreased by 13 percent year-on-year from 259 mboe/day to 224 mboe/day, while showing a contraction of 17 percent quarter-on-quarter from 239 mboe/day to 210 mboe/day.
The decrease in production was primarily due to no Russian production volumes in the second quarter of 2022 following the decision in the first quarter of 2022 to exit the country, and natural decline in several mature fields. The net effects from production sharing agreements (PSA) decreased to 95 mboe per day in the second quarter of 2022, from 97 mboe per day in the second quarter of 2021, primarily caused by the lower equity production. The main driver for the increase in revenues is the continued increase in realised liquids and gas prices for the second quarter and the first half of 2022 relative to the same periods last year. The increase is partially offset by the lower entitlement production.
Adjusted operating and administrative expenses increased in the second quarter and the first half of 2022 compared to the same periods last year, mainly due to higher operations and maintenance expenses. Increased royalties and production fees primarily driven by higher prices added to the increase for the first half of 2022. Adjusted exploration expenses decreased in the second quarter and first half of 2022 compared to the same periods last year, mainly due to lower expensed drilling costs, lower field development and lower other cost. In the first half of 2022, net operating income was negatively impacted by impairments of $1,096 million, primarily related to the exit from Russia.
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