BAKU, Azerbaijan, May 5. Strong production and continued high deliveries of energy to Europe Equinor delivered a total equity production of 2,130 mboe per day for the first quarter, up from 2,106 mboe per day in the same quarter of 2022, Trend reports via the company.
As such, the company’s equity production rose by 1.14 percent year-on-year.
Reportedly, the growth was driven by the ramp-up of new fields and wells, and fields back in production, such as Johan Sverdrup phase 2 and Snøhvit in Norway and Peregrino in Brazil. Short-term operational issues at Johan Sverdrup early in the quarter impacted the increase.
“Gas production on the Norwegian continental shelf (NCS) remained high and stable, contributing to European energy security. Production from renewable energy sources was 524 GWh in the quarter, slightly up from the same quarter last year, driven by good availability for the offshore wind farms and production from the floating wind farm Hywind Tampen on the NCS. Including gasto-power production in the UK, total power production for the quarter ended at 1,163 GWh,” said Equinor.
The company said solid operational performance and production growth in the first quarter of 2023 provides strong results despite a lower price environment compared to 2022.
“Snøhvit, which restarted in June 2022, and Johan Sverdrup phase two, which came on stream in December 2022, were the main drivers for increased production on the NCS relative to the same quarter last year. Peregrino in Brazil contributed significantly towards increased production from the international portfolio. Improved levels from Caesar Tonga in the USA following technical improvements, and a reduction in downtime compared to the prior year also added to the improvement in production. Secure gas production to Europe remains a continued focus in 2023, representing 55% of NCS production for the quarter
Increased operational capacity and activity in the quarter have contributed to an increased cost base. In addition, rising environmental costs together with inflationary pressures were evidenced by an increase in upstream operating expenditure compared to the prior year. An increase in proved reserves during the year 2022 contributed towards a downward trend in depreciation, partially offsetting the increase in operating expenditure. The strengthening of the USD against the NOK impacts the visibility of these increases in the reported costs. In the first quarter of 2022, total operating expenses were negatively impacted by impairments of USD 1,080 million related to Equinor’s exit from Russia,” reads the report.
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