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Equinor expects output to be above 2021 this year

Oil&Gas Materials 27 July 2022 12:49 (UTC +04:00)
Equinor expects output to be above 2021 this year
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, July 27. Production by Norway’s Equinor company for 2022 is estimated to be around 2 percent above 2021 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 40 mboe per day for the full year of 2022. Organic capital expenditures are estimated at an annual average of around USD 10 billion for 2022-2023 and at an annual average of around USD 12 billion for 2024-2025.

Total equity liquids and gas production for the second quarter of 2022 has remained stable compared to the same period last year. Positive contributions from the new field Martin Linge on the NCS, and less impact from maintenance and turnaround activities compared to the same quarter last year, supported further increased production levels of gas for the quarter from E&P Norway, up 18 percent compared to same quarter last year, as focus on energy security and supply of gas to Europe continues.

E&P International and E&P USA production decreased in the second quarter relative to the second quarter of 2021, impacted by Equinor’s exit from Russia in the first quarter of 2022 and the divestment of a US onshore asset in the second quarter of 2021.

Significantly higher realized prices for the period relative to 2021 contributed to the increase in net operating income and adjusted earnings in the second quarter and the first half of 2022 compared to the same periods last year.

Strong results were recorded from European gas and power optimization and trading, Danske Commodities as well as high refining margins in the quarter resulted in a significant increase in net operating income for the Marketing, Midstream and Processing segment, positively contributing to the overall business results in the quarter and first half of 2022 relative to the same periods in the prior year. Operating cost increased compared to the second quarter of 2021, impacted by the ramp-up of new fields, increased field costs, high electricity prices and environmental taxes offset by significant currency effects due to the strengthening of the USD against the NOK and the EUR.

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