Equinor 2022 Reserves Report 1
Equinor 2022 Reserves Report 2
2022 Oil and gas reserves report
Equinor 2022 Reserves Report 3
Introduction
About the report
This report presents Equinor`s proved oil and gas reserves as of 31 December 2022. Proved oil and gas reserves are those quantities of oil
and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—
from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—
prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain,
regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have
commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.
In alignment with industry practice and regulatory requirements, we report operational performance and supplementary oil and gas information
(unaudited). Numbers have been prepared in accordance with the reserve definitions of Rules 4-10(a) (1)-(32) of Regulations S-X of the
United States Securities and Exchange Commission (SEC). All numbers are internal estimates produced by Equinor. Estimates of reserves
should be regarded only as estimates that may change over time as further production history and additional information becomes available.
The determination of these reserves is part of an ongoing process subject to continual revision. Moreover, identified reserves and contingent
resources that may become proved in the future are excluded from the estimates of proved reserves provided in this report.
The Oil and gas reserves report may be downloaded from Equinor`s website at www.equinor.com/reports. The report is also included as
Exhibit 15.5 to the 2022 annual report on Form 20-
F.
Equinor 2022 Reserves Report 4
Operational performance
Proved oil and gas reserves
Proved oil and gas reserves were estimated to be 5,191 million boe at year end 2022, compared to 5,356 million boe at the end of
2021.
Changes in proved reserves estimates are most commonly the result of revisions of estimates due to observed production
performance or changes in prices or costs, extensions of proved areas through drilling activities or the inclusion of proved reserves in
new discoveries through the sanctioning of new development projects. These changes are the result of continuous business
processes and can be expected to continue to affect reserves in the future.
Proved reserves can also be added or subtracted through purchases and sales of reserves-in-place or factors outside management
control.
Changes in oil and gas prices can affect the quantities of oil and gas that can be recovered from the accumulations. Higher oil and
gas prices will normally allow more oil and gas to be recovered, while lower prices will normally result in reduced recovery. However,
for fields with production sharing agreements (PSA), higher prices may result in reduced entitlement to produced volumes and lower
prices may result in increased entitlement to produced volumes. These described changes are included in the revisions and improved
recovery (IOR) category in the tables that follows in this report.
The principles for booking proved gas reserves are limited to contracted gas sales or gas with access to a robust gas market.
Equinor prepares its disclosures for oil and gas reserves and certain other supplemental oil and gas disclosures by geographical area,
as required by the US Securities and Exchange Commission (SEC). The geographical areas are defined by country and continent.
These are Norway, Eurasia excluding Norway, Africa, the USA and the Americas excluding USA.
In Norway and other countries where there is a high degree of certainty that the authorities will approve the plan for development and
operation (PDO), Equinor recognises reserves as proved undeveloped reserves when the PDO is submitted to the authorities.
Otherwise, reserves are generally booked as proved undeveloped reserves when regulatory approval is received, or when such
approval is imminent. Undrilled well locations in onshore fields in the USA are generally booked as proved undeveloped reserves
when a development plan has been adopted and the well locations are scheduled to be drilled within five years.
Approximately 87% of Equinor’s proved reserves are located in the Organisation of Economic Co-Operation and Development
(OECD) countries. Norway is by far the most important contributor in this category, followed by the USA. Of Equinor's total proved
reserves, 5% are related to PSAs in non-OECD countries such as Angola, Brazil, Azerbaijan, Algeria, Nigeria and Libya. Other proved
non-OECD reserves are related to concession fields in Argentina and Brazil, representing all together 7% of Equinor's total proved
reserves.
Equinor 2022 Reserves Report 5
Equinor 2022 Reserves Report 6
Changes in proved reserves in 2022
The total volume of proved reserves decreased by 165 million boe in 2022.
Change in proved reserves
For the year ended 31 December
(million boe)
2022
2021
2020
Revisions and improved recovery (IOR)
344
596
(171)
Extensions and discoveries
278
306
131
Purchases of reserves-in-place
36
-
6
Sales of reserves-in-place
(128)
(96)
-
Total reserve additions
530
806
(34)
Production
(695)
(710)
(710)
Net change in proved reserves
(165)
96
(744)
Revisions and IOR
Revisions of previously booked reserves, including the effect of improved recovery, increased the proved reserves by
net 344 million boe in 2022. The increase is the result of 433 million boe in positive revisions and increased recovery, partially offset
by 89 million boe in negative revisions. Many producing fields had positive revisions due to better performance, new drilling targets
and improved recovery measures, as well as reduced uncertainty due to further drilling and production experience. The positive
revisions also included a direct effect of higher commodity prices, increasing the proved reserves by approximately 63 million boe
through increased economic lifetime on several fields. The negative revisions were mainly related to unforeseen events and
operational challenges resulting in reduced production potential on some fields in addition to reduced entitlement volumes from
several fields with PSAs.
Extensions and discoveries
A total of net 278 million boe of new proved reserves were added through extensions and discoveries. Continuous extension of the
proved area in the Appalachian basin together with a record number of submitted PDOs in Norway, of which Munin and Halten Øst
were the largest, are the main contributors in this category.
In addition, this category includes extensions of proved areas through
drilling of new wells in previously undrilled areas at other fields in Norway and in Argentina.
Purchases and sales of reserves-in-place
Equinor 2022 Reserves Report 7
A total of 36 million boe of new proved reserves in the Statfjord Area, which covers the Norwegian continental shelf (NCS) and UK
continental shelf, were purchased in 2022.
A
total of 128 million boe of sales of reserves-in-place are related to the exit of joint arrangements in Russia in addition to the sale of
the Ekofisk Area and a minority share in the Martin Linge field on the NCS. Equinor has no remaining proved reserves in Russia at
year end 2022.
In the fourth quarter of 2021, Equinor entered into an agreement to divest our interests in the Corrib field in Ireland. Closing is
dependent on governmental approval and is expected to take place in the first quarter of 2023. The sale will result in an estimated
reduction in proved reserves of approximately 11 million boe.
Production
The 2022 entitlement production was 695 million boe, down from 710 million boe in 2021 due to sales, natural decline and operational
challenges.
Development of reserves
In 2022, 241 million boe were matured from proved undeveloped to proved developed reserves. Continued drilling in the Appalachian
basin in the USA and on major offshore assets in addition to the production start of Askeladd (Snøhvit), Johan Sverdrup Phase 2 and
Peregrino Phase 2 contributed to the major portion of maturation of proved undeveloped to proved developed reserves in 2022.
Smaller volumes are related to individual assets world-wide. The positive revision and improved recovery of proved developed
reserves of 322 million boe is related to increased economic lifetime at some fields, increased activity levels, higher commodity prices
and implementation of improved recovery projects. Finally, 256 million boe was added to proved undeveloped reserves through
extensions and discoveries, the largest of these being Munin and Halten Øst in Norway, in addition to further development in the
Appalachian basin in the USA.
In 2021, 881 million boe were matured from proved undeveloped to proved developed reserves. Production start of the Troll Phase 3
project and the Martin Linge field added more than 600 million boe to the proved developed reserves. Continued drilling in the
Appalachian basin in the USA and in the Oseberg, Johan Sverdrup, and Snorre fields in Norway increased the proved developed
reserves by 180 million boe during 2021. The
remaining 100 million boe of the matured volume is related to a wide range of activities
on assets world-wide. The positive revisions of both proved developed reserves of 471 million boe and proved undeveloped reserves
of 125 million boe are related to higher commodity prices, increasing economic lifetime at some fields, as well as increased activity
levels. Undeveloped extensions and discoveries of 269 million boe are dominated by the onshore assets in the Appalachian basin and
in Argentina, together with the Bacalhau field in Brazil and the Johan Castberg field in Norway.
In 2020, 250 million boe were matured from proved undeveloped to proved developed reserves. Continued drilling in the Appalachian
basin in the USA and in the Johan Sverdrup, Ærfugl and Oseberg fields in Norway, increased the proved developed reserves by 200
million boe during 2020. The remaining 50 million boe of the matured volume was related to a wide range of activities on assets world-
wide. The negative revision of proved undeveloped reserves of 131 million boe was both related to lower commodity prices,
decreasing economic lifetime at some fields, as well as reduced activity levels and operational challenges This resulted in a reduction
of proved undeveloped reserves, particularly in the onshore assets in the USA, in fields in Brazil and in the UK.
Over the last five years, Equinor has matured 2,376 million boe of proved undeveloped reserves to proved developed reserves.
Development of proved reserves
2022
2021
2020
(million boe)
Total
proved
reserves
Developed
Undeveloped
Total
proved
reserves
Developed
Undeveloped
Total
proved
reserves
Developed
Undeveloped
At 1 January
5,356
3,818
1,538
5,260
3,222
2,038
6,004
3,679
2,325
Revisions and improved
recovery
344
322
22
596
471
125
(171)
(40)
(131)
Extensions and discoveries
278
22
256
306
37
269
131
37
94
Purchases of reserves-in-place
36
29
7
-
-
-
6
6
0
Sales of reserves-in-place
(128)
(66)
(62)
(96)
(83)
(13)
-
-
-
Production
(695)
(695)
-
(710)
(710)
-
(710)
(710)
-
Moved from undeveloped to
developed
-
241
(241)
-
881
(881)
-
250
(250)
At 31 December
5,191
3,672
1,519
5,356
3,818
1,538
5,260
3,222
2,038
Equinor 2022 Reserves Report 8
Proved developed and undeveloped reserves
As of 31 December 2022
Oil and
condensate
NGL
Natural gas
Total oil and
gas
(mmboe)
(mmboe)
(mmmcf)
(mmboe)
Developed
Norway
731
149
10,294
2,714
Eurasia excluding Norway
35
3
89
53
Africa
107
8
91
131
USA
161
51
1,921
554
Americas excluding USA
216
-
25
220
Total developed proved reserves
1,249
210
12,420
3,672
Undeveloped
Norway
562
60
2,087
994
Eurasia excluding Norway
48
0
5
50
Africa
17
0
-
17
USA
56
9
423
140
Americas excluding USA
316
-
11
318
Total undeveloped proved reserves
999
70
2,526
1,519
Total proved reserves
2,248
280
14,946
5,191
As of 31 December 2022, the total proved undeveloped reserves amounted to 1,519 million boe, 65% of which are related to fields in
Norway. The Johan Sverdrup, Snøhvit and Oseberg area fields, which have continuous development activities, together with fields not
yet in production, such as Johan Castberg and Munin, have the largest proved undeveloped reserves in Norway. The largest assets
with proved undeveloped reserves outside Norway, are Bacalhau, Peregrino and Roncador in Brazil, the Appalachian basin, Vito and
Caesar-Tonga in the USA, Mariner in the UK, and ACG in Azerbaijan. All these fields are either producing or will start production
within the next five years.
For fields with proved reserves where production has not yet started, investment decisions have already been sanctioned and
investments in infrastructure and facilities have commenced. There are no material development projects, which would require a
separate future investment decision by management, included in our proved reserves. Some offshore development activities will take
place more than five years from the disclosure date on many fields, but these are mainly related to incremental type of spending, such
as drilling of additional wells from existing facilities, in order to secure continued production.
For projects under development, the Covid-19 pandemic impacted progress due to personnel limitations on offshore as well as
onshore facilities and yards. The pandemic has delayed production start at the Johan Castberg field in Norway. The field was
originally planned to start production in 2022, four years after the field development was sanctioned. The start-up is delayed to 2024.
For our onshore assets, all proved undeveloped reserves are limited to wells that are scheduled to be drilled within five years.
In 2022, Equinor incurred USD 6.9 billion in development costs relating to assets carrying proved reserves, of which USD 5.8 billion
was related to proved undeveloped reserves.
Reserves replacement
The reserves replacement ratio is defined as the net amount of proved reserves added divided by produced volumes in any given
period.
The 2022 reserves replacement ratio was 76% and the corresponding three-year average was 62%.
The organic reserves replacement ratio, excluding sales and purchases, was 89% in 2022 compared to 127% in 2021. The organic
average three-year replacement ratio was 70% at the end of 2022 compared to 68% at the end of 2021.
Equinor 2022 Reserves Report 9
Reserves replacement ratio
For the year ended 31 December
2022
2021
2020
Annual
76%
113%
(5%)
Three-year-average
62%
61%
95%
Proved reserves by region
Proved reserves in Norway
A total of 3,708 million boe was recognised as proved reserves on the NCS, representing 71% of Equinor's total proved reserves at
year end 2022. Of these, 3,208 million boe are related to fields and field areas currently in production, 94% of which is operated by
Equinor.
Production experience, further drilling and improved recovery on many of Equinor’s producing fields contributed with positive revisions
of 318 million boe in 2022. Negative revisions totalled 43 million boe and were mainly related to operational challenges. Higher
commodity prices increased the proved reserves by 74 million boe. PDOs for several new fields have been submitted to the
Norwegian Ministry of Petroleum and Energy in 2022, contributing to extensions and discoveries which totalled 181 million boe in
2022. This increase also included the addition of new segments to some fields.
Of total proved reserves on the NCS, 2,714 million boe (73%) are proved developed reserves at year end 2022. Of the total proved
reserves in this area, 60% are gas reserves mainly related to large fields such as Troll, the Oseberg area and Snøhvit, and 40% are
liquid reserves mainly related to large fields such as Johan Sverdrup, Snorre and the Oseberg area.
Equinor 2022 Reserves Report 10
Proved reserves in Eurasia, excluding Norway
A total of 103 million boe was recognised as proved reserves in the United Kingdom, Azerbaijan and Ireland at year end 2022.
Eurasia excluding Norway represents 2% of Equinor's total proved reserves. All fields in this area are producing. The sale of our
interest in joint arrangements in Russia in 2022 resulted in a reduction of proved reserves of 86 million boe.
Of total proved reserves in Eurasia excluding Norway, 53 million boe (52%) are proved developed reserves at year end 2022. Of the
total proved reserves in this area, 84% are liquid reserves mainly related to larger fields such as ACG and Mariner, and 16% are gas
reserves mainly related to the Corrib field and the UK part of the Statfjord field.
Proved reserves in Africa
A total of 148 million boe was recognised as proved reserves in PSAs in Angola, Algeria, Nigeria and Libya at year end 2022. Angola
and Algeria are the primary contributors to the proved reserves in this area. Africa represents 3% of Equinor's total proved reserves.
All fields in this area are producing. Net positive revisions increased the proved reserves by 29 million boe in 2022, mainly related to
extended contract and longer technical lifetime on some fields, new wells and positive reservoir performance. Higher commodity
prices decreased the proved reserves in Africa by 20 million boe.
Of total proved reserves in Africa, 131 million boe (88%) are proved developed reserves at year end 2022. Of the total proved
reserves in this area, 89% are liquid reserves mainly related to large oil fields such as Agbami, In Amenas and Murzuq, and 11% are
gas reserves related to the In Salah field.
Proved reserves in the USA
A total of 694 million boe was recognised as proved reserves related to onshore operations and offshore fields in the USA at year end
2022. The USA represents 13% of Equinor's total proved reserves. All fields in this area except for Vito are in the production phase at
year end. Most of the onshore operations and offshore fields in the USA are mature and on decline. New wells extending the proved
areas in the USA onshore assets in 2022, added a total of 89 million boe in the extensions and discoveries category. The proved
reserves in the USA were also subject to a net positive revision of 49 million boe, mainly due to increased activity levels and higher
commodity prices.
Of total proved reserves in the USA, 554 million boe (80%) are proved developed reserves at year end 2022. Of the total proved
reserves in this area, 60% are gas reserves mainly related to the Appalachian basin, and 40% are liquid reserves mainly related to the
Appalachian basin and the offshore fields Caesar-Tonga and St. Malo.
Equinor 2022 Reserves Report 11
Proved reserves in the Americas excluding USA
A total of 538 million boe was recognised as proved reserves in the Americas excluding USA at year end 2022, generally at the same
level as at year end 2021. Three fields are located offshore Brazil, two fields offshore Canada and one field onshore in Argentina. The
Americas excluding USA represents 10% of Equinor's total proved reserves. All fields in this area except for Bacalhau are in the
production phase at year end.
Of total proved reserves in the Americas excluding USA, 220 million boe (41%) are proved developed reserves at year end 2022. Of
the total proved reserves in this area, 99% are liquid reserves mainly related to large oil fields such as Bacalhau, Peregrino and
Roncador, and 1% are gas reserves.
Preparation of reserves estimates
Equinor's annual reporting process for proved reserves is coordinated by a central corporate reserves management (CRM) team
consisting of qualified professionals in geosciences, reservoir and production technology and financial evaluation. The team has an
average of more than 25 years' experience in the oil and gas industry. CRM reports to the senior vice president of accounting and
financial compliance in the Chief financial officer organisation and is independent of the exploration and production business areas. All
the reserves estimates have been prepared by Equinor's technical staff.
Although the CRM team reviews the information centrally, each asset team is responsible for ensuring compliance with the
requirements of the SEC and Equinor's corporate standards. Information about proved oil and gas reserves, standardised measures
of discounted net cash flows related to proved oil and gas reserves and other information related to proved oil and gas reserves, is
collected from the local asset teams and checked by CRM for consistency and conformity with applicable standards. The final
numbers for each asset are quality-controlled and approved by the responsible asset managers, before aggregation to the required
reporting level by CRM.
The person with primary responsibility for overseeing the preparation of the reserves estimates is the manager of the CRM team. The
person who currently holds this position has a bachelor's degree in earth sciences from the University of Gothenburg, and a master's
Equinor 2022 Reserves Report 12
degree in petroleum exploration and exploitation from Chalmers University of Technology in Gothenburg, Sweden. She has 37 years'
experience in the oil and gas industry, 36 of them with Equinor. She is a member of the Society of Petroleum Engineering (SPE) and
of the UNECE Expert Group on Resource Management (EGRM).
DeGolyer and MacNaughton report
Petroleum engineering consultants DeGolyer and MacNaughton have carried out an independent evaluation of Equinor’s proved
reserves as of 31 December 2022 using data provided by Equinor. The evaluation accounts for 100% of Equinor's proved reserves
including equity accounted entities. The aggregated net proved reserves estimates prepared by DeGolyer and MacNaughton do not
differ materially from those prepared by Equinor when compared on the basis of net equivalent barrels.
A report of third party summarising this evaluation is included as Exhibit 15.3 in the annual report on Form 20-F for 2022.
Net proved reserves
Oil and
condensate
NGL/LPG
Natural gas
Oil equivalent
At 31 December 2022
(mmboe)
(mmboe)
(mmmcf)
(mmboe)
Estimated by Equinor
2,248
280
14,946
5,191
Estimated by DeGolyer and MacNaughton
2,311
289
15,252
5,318
Equinor 2022 Reserves Report 13
Operational statistics
Developed and undeveloped oil and gas acreage
Total gross and net developed and undeveloped oil and gas acreage, in which Equinor had interests at 31 December 2022, are
presented in the table below.
Total developed and undeveloped oil and gas acreage
At 31 December 2022 (in thousands of acres)
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Developed acreage
- gross
1)
903
41
846
387
259
2,437
- net
2)
370
14
267
96
63
809
Undeveloped acreage
- gross
1)
11,473
1,487
6,006
1,679
22,655
43,300
- net
2)
5,117
751
1,813
656
10,018
18,355
1) A gross value reflects the acreage in which Equinor has a working interest.
2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same acreage.
Equinor’s largest concentrations of net developed acreage in Norway are in the Troll, Oseberg Area, Snøhvit, Ormen Lange and
Johan Sverdrup fields. In Africa, the Algerian gas development projects In Amenas and In Salah represent the largest concentrations
of net developed acreage. In the USA, the Appalachian basin assets represents the largest net developed acreage.
The largest concentration of net undeveloped acreage is in Argentina, which represents 36% of Equinor’s total net undeveloped
acreage, followed by Norway and Canada.
At 31 December 2022, Equinor no longer holds acreage in Russia due to the exit of joint arrangements.
Equinor holds acreage in numerous concessions, blocks and leases. The terms and conditions regarding expiration dates vary
significantly from property to property. Work programmes are designed to ensure that the exploration potential of any property is fully
evaluated before expiration.
Acreage related to several of these concessions, blocks and leases are scheduled to expire within the next three years. Most of the
undeveloped acreage that will expire within the next three years, is related to early exploration activities where no production is
expected in the foreseeable future. The expiration of these concessions, blocks and leases will therefore not have any material impact
on our proved reserves. Any acreage which has already been evaluated to be non-profitable may be relinquished prior to the current
expiration date. In other cases, Equinor may decide to apply for an extension if more time is needed to fully evaluate the potential of
the properties. Historically, Equinor has generally been successful in obtaining such extensions.
Equinor 2022 Reserves Report 14
Productive oil and gas wells
The number of gross and net productive oil and gas wells, in which Equinor had interests at 31 December 2022, are presented in the
table below.
The gross and net number of oil wells has decreased from last year mainly due to the exit of joint arrangements in Russia and the sale
of the Ekofisk Area. The gross and net number of gas wells has increased from last year mainly due to continued drilling in the
Appalachian basin onshore assets in the USA.
The total gross number of productive wells at year end 2022 includes 319 oil wells and 12 gas wells with multiple completions or wells
with more than one branch.
Number of productive oil and gas wells
At 31 December 2022
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Oil wells
- gross
1)
776
163
467
75
231
1712
- net
2)
335
37
71
24
68
536
Gas wells
- gross
1)
225
6
115
2421
0
2767
- net
2)
97
2
44
469
0
613
1) A gross value reflects the number of wells in which Equinor owns a working interest.
2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.
Equinor 2022 Reserves Report 15
Net productive and dry oil and gas wells drilled
The following table presents the number of net productive and dry exploratory and development oil and gas wells drilled and
completed or abandoned over the past three years. Productive wells include exploratory wells in which hydrocarbons were
discovered, and where drilling or completion has been suspended pending further evaluation. A dry well is a well found to be
incapable of producing sufficient quantities to justify completion as an oil or gas well. Dry development wells are mainly injector wells,
but does also include drilled and permanently abandoned wells.
Number of net productive and dry oil and gas wells drilled
1)
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Year 2022
Net productive and dry exploratory wells drilled
6.7
-
0.3
0.5
5.1
12.6
- Net dry exploratory wells
4.5
-
0.2
0.5
2.1
7.3
- Net productive exploratory wells
2.2
-
0.1
-
3.0
5.3
Net productive and dry development wells drilled
35.4
5.4
4.0
27.6
12.3
84.7
- Net dry development wells
6.4
1.8
0.9
-
0.1
9.2
- Net productive development wells
28.9
3.6
3.1
27.6
12.2
75.5
Year 2021
Net productive and dry exploratory wells drilled
7.4
0.5
-
-
0.6
8.5
- Net dry exploratory wells
4.0
0.5
-
-
0.6
5.0
- Net productive exploratory wells
3.5
-
-
-
-
3.5
Net productive and dry development wells drilled
38.8
26.6
2.0
19.7
8.5
95.6
- Net dry development wells
8.3
8.6
0.4
-
0.4
17.8
- Net productive development wells
30.5
18.0
1.5
19.7
8.1
77.8
Year 2020
Net productive and dry exploratory wells drilled
8.2
2.0
-
1.1
2.7
14.0
- Net dry exploratory wells
4.7
1.0
-
0.4
0.9
6.9
- Net productive exploratory wells
3.6
1.0
-
0.7
1.8
7.0
Net productive and dry development wells drilled
27.6
22.1
1.6
48.2
8.7
108.2
- Net dry development wells
4.0
3.9
-
-
0.7
8.6
- Net productive development wells
23.6
18.2
1.6
48.2
8.0
99.6
1) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.
Equinor 2022 Reserves Report 16
Exploratory and development drilling in process
The following table presents the number of gross and net exploratory and development oil and gas wells in the process of being
drilled, or drilled but not yet put on stream at 31 December 2022.
Number of wells in progress
At 31 December 2022
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Exploratory wells
- gross
1)
4.0
-
-
1.0
-
5.0
- net
2)
2.2
-
-
0.3
-
2.4
Development wells
- gross
1)
36.0
5.0
7.0
9.0
8.0
65.0
- net
2)
15.7
1.2
2.0
4.0
1.8
24.8
1) A gross value reflects the number of wells in which Equinor owns a working interest.
2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.
Delivery commitments
Equinor is responsible for managing, transporting and selling the Norwegian State's oil and gas from the NCS on behalf of the
Norwegian State's direct financial interest (SDFI). These reserves are sold in conjunction with Equinor’s own reserves. As part of this
arrangement, Equinor delivers gas to customers under various types of sales contracts. In order to meet the commitments, a field
supply schedule is utilised to ensure the highest possible total value for Equinor and SDFI's joint portfolio of oil and gas.
Equinor’s and SDFI's delivery commitments under bilateral agreements for the calendar years 2023, 2024, 2025 and 2026 expressed
as the sum of expected gas off-take, are equal to 43.3, 26.4, 20.2 and 10.6 bcm, respectively. Delivery commitments under bilateral
agreements is declining over time as our customers are increasingly requesting more and more short-term contracts and increased
volumes are traded on the spot market.
Equinor’s currently developed gas reserves on the NCS are more than sufficient to meet our share of these commitments for the next
four years.
Any remaining volumes after covering our delivery commitments under the bilateral agreements, will be sold through trading activities
at the hubs.
Equinor 2022 Reserves Report 17
Entitlement production
The following tables present Equinor's Norwegian and international entitlement production of oil, condensate, NGL and natural gas for
the periods indicated. The stated production volumes are the volumes to which Equinor is entitled, pursuant to conditions laid down in
licence agreements and PSAs. The production volumes are net of royalty oil paid in-kind, and of gas used for fuel and flaring.
Production is based on proportionate participation in fields with multiple owners and does not include production of the Norwegian
State's oil and gas. NGL includes both LPG and naphtha. For further information on production volumes see section Terms and
abbreviations.
Equinor 2022 Reserves Report 18
Entitlement production
Consolidated companies
Equity accounted
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Subtotal
Eurasia
excluding
Norway
Americas
excluding
USA
Subtotal
Total
Oil and condensate (mmboe)
2022
188
11
32
33
23
287
1
3
4
291
2021
200
15
32
37
19
303
5
2
7
310
2020
193
15
39
48
25
320
1
1
2
322
NGL (mmboe)
2022
34
0
2
8
-
45
-
-
-
45
2021
38
0
3
9
-
49
-
-
-
49
2020
40
0
3
11
-
54
-
-
-
54
Natural gas (mmmcf)
2022
1,608
23
28
346
7
2,012
0
2
3
2,015
2021
1,500
20
41
396
8
1,966
3
1
5
1,971
2020
1,425
26
42
373
9
1,874
3
1
3
1,878
Combined oil, condensate, NGL and natural gas (mmboe)
2022
508
16
40
103
24
691
1
3
5
695
2021
505
18
42
117
20
703
6
2
8
710
2020
486
20
49
126
26
708
2
1
3
710
The Troll field in Norway is the only field containing more than 15% of total proved reserves based on barrels of oil equivalent.
Troll entitlement production
2022
2021
2020
Troll field
Oil and condensate (mmboe)
7
8
9
NGL (mmboe)
2
2
2
Natural gas (mmmcf)
427
403
378
Combined oil, condensate, NGL and natural gas (mmboe)
85
82
79
Equinor 2022 Reserves Report 19
Supplementary oil and gas information (unaudited)
In accordance with the US Financial Accounting Standards Board Accounting Standards Codification "Extractive Activities - Oil and
Gas" (Topic 932), Equinor is reporting certain supplemental disclosures about oil and gas exploration and production operations.
While this information is developed with reasonable care and disclosed in good faith, it is emphasised that some of the data is
necessarily imprecise and represents only approximate amounts because of the subjective judgement involved in developing such
information. Accordingly, this information may not necessarily represent the present financial condition of Equinor or its expected
future results.
For further information regarding the reserves estimation requirement, see note 12 Property, plant and equipment - Estimation
uncertainty regarding determining oil and gas reserves and Estimation uncertainty; Proved oil and gas reserves in the annual report
on Form 20-F for 2022.
No events have occurred since 31 December 2022 that would result in a significant change in the estimated proved reserves or other
figures reported as of that date.
Proved oil and gas reserves
Equinor's proved oil and gas reserves have been estimated by its qualified professionals in accordance with industry standards under
the requirements of the US Securities and Exchange Commission (SEC), Rule 4-10 of Regulation S-X. Statements of reserves are
forward-looking statements. Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known
reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which
contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether
deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or
the operator must be reasonably certain that it will commence the project within a reasonable time.
The determination of these reserves is part of an ongoing process subject to continual revision as additional information becomes
available. Estimates of proved reserve quantities are dynamic and change over time as new information becomes available.
Moreover, identified reserves and contingent resources that may become proved in the future are excluded from the estimates of
proved reserves.
Equinor's proved reserves are recognised under various forms of contractual agreements, including PSAs where Equinor's share of
reserves can vary due to commodity prices or other factors. Reserves from agreements such as PSAs are based on the volumes to
which Equinor has access (cost oil and profit oil), limited to available market access. At 31 December 2022, 5%
of total proved
reserves were related to such agreements, representing 10% of the oil, condensate and NGL reserves and 1% of the gas reserves.
This compares with 6% and 5% of total proved reserves for 2021 and 2020, respectively. Net entitlement oil and gas production from
fields with such agreements was 44 million boe during 2022, compared to 49 million boe for 2021 and 59 million boe for 2020. Equinor
participates in such agreements in Algeria, Angola, Azerbaijan, Brazil, Libya and Nigeria.
Equinor is recording, as proved reserves, volumes equivalent to our tax liabilities under negotiated fiscal arrangements (PSAs) where
the tax is paid on behalf of Equinor. Reserves are net of royalty volumes in the USA and net of royalty paid in-kind in PSA fields.
Proved reserves does not include quantities consumed during production.
Rule 4-10 of Regulation S-X requires that the estimation of reserves shall be based on existing economic conditions, including a 12-
month average price determined as an unweighted arithmetic average of the first-of-the month price for each month within the
reporting period, unless prices are defined by contractual arrangements. Volume weighted average prices for the total Equinor
portfolio, and the Brent blend price, are presented in the following table:
Equinor 2022 Reserves Report 20
Volume weighted average prices at 31 December
Brent blend
Oil
Condensate
NGL
Natural gas
(USD/boe)
(USD/boe)
(USD/boe)
(USD/boe)
(USD/mmbtu)
2022
101.24
100.30
90.79
56.23
30.66
2021
69.22
67.61
65.02
47.17
11.89
2020
41.26
40.60
33.99
23.72
3.18
Higher commodity prices affected the profitable reserves to be recovered from accumulations, resulting in increased proved reserves.
The positive revisions due to higher price are in general a result of later economic cut-off. For fields with a PSA the effect of higher
prices is to some degree offset by reduced entitlement to the reserves. These changes are all included in the revision category, giving
a net increase of Equinor’s proved reserves at year end.
From the NCS, Equinor is responsible for managing, transporting and selling the Norwegian State's oil and gas on behalf of the
Norwegian State's direct financial interest (SDFI). These reserves are sold in conjunction with the Equinor reserves. As part of this
arrangement, Equinor delivers and sells gas to customers in accordance with various types of sales contracts on behalf of the SDFI.
In order to fulfil the commitments, Equinor utilises a field supply schedule which provides the highest possible total value for the joint
portfolio of oil and gas between Equinor and the SDFI.
Equinor and the SDFI receive income from the joint gas sales portfolio based upon their respective share in the supplied volumes. For
sales of the SDFI gas, to Equinor and to third parties, the payment to the Norwegian State is based on achieved prices, a net back
formula calculated price or market value. All of the Norwegian State's oil and NGL is acquired by Equinor. The price Equinor pays to
the SDFI for the crude oil is based on market reflective prices. The prices for NGL are either based on achieved prices, market value
or market reflective prices. The regulations of the owner's instruction may be changed or withdrawn by the Equinor ASA's general
meeting.
Topic 932 requires the presentation of reserves and certain other supplemental oil and gas disclosures by geographic area, defined
as country or continent containing 15% or more of total proved reserves. At 31 December 2022, Norway is the only country in this
category, with 71% of the total proved reserves. The USA contains close to 15% of the total proved reserves at 31 December 2022
and has been close to this level for several years. Management has therefore determined that the most meaningful presentation of
geographical areas in 2022 would be Norway, the USA, and the continents of Eurasia excluding Norway, Africa, and Americas
excluding USA.
Proved reserves movements
The largest relative changes in the proved reserves within a geographic area compared to the previous year for each of the last three
years, are summarised below. All changes in the Net proved reserves (in million boe) table that represent 10% or more of the net
proved reserves in million boe at the beginning of each year are discussed.
Proved reserves movements 2022
Eurasia excluding Norway
The net decrease of 14 million boe in revisions and improved recovery in Eurasia excluding Norway is the combined effect of mainly
negative revisions based on reduced production potential, and reduced entitlement volumes resulting from higher commodity prices.
Purchase of the UK part of the Statfjord field is the main reason for the increase of 15 million boe through purchases of reserves-in-
place in this area. Exit from our Russian joint arrangements reduced the proved reserves in both consolidated (10 million boe) and
equity accounted (76 million boe) companies and is included as a sales of reserves-in-place.
Africa
The net effect of revisions and improved recovery of 29 million boe in Africa is the combined effect of 46 million boe in positive
revisions resulting from both longer economic lifetime with higher commodity prices as well as extended contract and longer technical
lifetime on some fields, and negative revisions of 17 million boe related to reduced entitlement volumes with higher commodity prices.
USA
The increase of 89 million boe in extensions and discoveries in the USA is the result of new wells drilled in previously unproven areas
in our onshore developments in the Appalachian basin assets.
Americas excluding USA
The increase of 9 million boe in extensions and discoveries in the Americas excluding USA is the result of new wells drilled in
previously unproven areas in our onshore developments in Argentina.
Proved reserves movements 2021
Norway
Equinor 2022 Reserves Report 21
The increase of 465 million boe in revisions and improved recovery in Norway was the combined effect of positive revisions following
increased certainty in the ultimate recovery at many fields, prolonged economic lifetime at several fields due to higher commodity
prices, and decisions to install low pressure production facilities increasing the future recovery at the Oseberg and Ormen Lange
fields.
Eurasia excluding Norway
The net decrease of 16 million boe in equity accounted assets in the revisions and improved recovery category was related to proved
reserves in Russia, where negative revisions of 35 million boe due to reduced production potential in some areas was partially offset
by positive revisions based on increased certainty in the expected ultimate recovery in other areas.
USA
The increase of 78 million boe in revisions and improved recovery was the combined effect of positive revisions following increased
certainty in the ultimate recovery, and prolonged economic lifetime at several fields mainly due to higher commodity prices. Sales of
reserves-in-place of 89 million boe was a result of the divestment of our interests in the Bakken assets which was completed in 2021.
Americas excluding USA
The increase of 62 million boe in revisions and improved recovery was mainly related to proved reserves in Brazil and is the combined
effect of positive revisions following increased certainty in the ultimate recovery, and prolonged economic lifetime due to higher
commodity prices. The increase of 210 million boe in extensions and discoveries was the result of sanctioning of the Bacalhau
development in Brazil, and the 14 million boe of equity accounted additions in the same category represent drilling of new wells in
previously unproven areas at the Bandurria Sur development in Argentina.
Proved reserves movements 2020
Africa
The net increase of 40 mill boe in revision and improved recovery was mainly due to positive revisions on several fields with PSAs in
Angola, Algeria, Nigeria and Libya.
USA
The net decrease of 118 million boe in revisions and improved recovery included a negative revision of 110 million boe related to our
onshore developments. This was mainly due to reduced activity levels as well as shorter economic field lifetime caused by lower oil
and gas prices. The lower prices have also affected some of our Gulf of Mexico fields negatively. The increase of 101 million boe in
extension and discoveries was the result of new wells drilled in previously unproven areas in our onshore developments.
Americas excl USA
The net decrease of 55 million boe in revisions and improved recovery was mainly due to shorter economic lifetime for fields in Brazil
caused by lower oil prices. The equity accounted increase of 6 million boe in purchases of reserves-in-place is in Argentina.
The following tables reflect the estimated oil, condensate, NGL and natural gas proved reserves at 31 December 2019 through 2022
and the changes therein.
Equinor 2022 Reserves Report 22
Consolidated companies
Equity accounted
Net proved oil and condensate
reserves
(in million boe)
Norway
Eurasia
excludin
g
Norway
Africa
USA
America
s
excludin
g USA
Subtotal
Eurasia
excludin
g
Norway
America
s
excludin
g USA
Subtotal
Total
At 31 December 2019
1,463
168
137
383
369
2,518
56
-
56
2,575
Revisions and improved recovery
32
(12)
33
(55)
(57)
(58)
(5)
-
(5)
(63)
Extensions and discoveries
27
2
-
7
-
36
0
-
0
36
Purchases of reserves-in-place
-
-
-
-
-
-
-
5
5
5
Sales of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Production
(193)
(15)
(39)
(48)
(25)
(320)
(1)
(1)
(2)
(322)
At 31 December 2020
1,329
143
131
287
287
2,177
50
5
55
2,232
Revisions and improved recovery
153
(15)
18
23
61
240
17
0
17
257
Extensions and discoveries
14
0
-
1
210
225
2
12
14
239
Purchases of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Sales of reserves-in-place
-
-
-
(57)
(6)
(63)
-
-
-
(63)
Production
(200)
(15)
(32)
(37)
(19)
(303)
(5)
(2)
(7)
(310)
At 31 December 2021
1,296
114
116
217
533
2,276
64
15
79
2,355
Revisions and improved recovery
133
(15)
40
32
3
192
0
(0)
(0)
192
Extensions and discoveries
67
-
-
1
-
68
-
7
7
75
Purchases of reserves-in-place
10
5
-
-
-
15
-
-
-
15
Sales of reserves-in-place
(25)
(10)
-
-
-
(35)
(62)
-
(62)
(97)
Production
(188)
(11)
(32)
(33)
(23)
(287)
(1)
(3)
(4)
(291)
At 31 December 2022
1,292
83
123
217
513
2,228
-
19
19
2,248
Proved developed oil and
condensate reserves
At 31 December 2019
691
44
124
278
254
1,392
5
-
5
1,396
At 31 December 2020
654
54
110
217
202
1,237
8
5
13
1,249
At 31 December 2021
702
47
104
161
205
1,218
22
10
31
1,249
At 31 December 2022
731
35
107
161
203
1,236
-
12
12
1,249
Proved undeveloped oil and
condensate reserves
At 31 December 2019
772
123
13
104
115
1,127
52
-
52
1,178
At 31 December 2020
676
88
21
70
86
940
42
0
42
982
At 31 December 2021
594
67
13
56
328
1,058
42
5
47
1,105
At 31 December 2022
562
48
17
56
309
992
-
7
7
999
Equinor 2022 Reserves Report 23
Consolidated companies
Equity accounted
Net proved NGL reserves
(in million boe)
Norway
Eurasia
excludin
g
Norway
Africa
USA
America
s
excludin
g USA
Subtotal
Eurasia
excludin
g
Norway
America
s
excludin
g USA
Subtotal
Total
At 31 December 2019
254
-
18
65
-
337
-
-
-
337
Revisions and improved recovery
(7)
0
2
(8)
-
(13)
-
-
-
(13)
Extensions and discoveries
0
-
-
7
-
8
-
-
-
8
Purchases of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Sales of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Production
(40)
(0)
(3)
(11)
-
(54)
-
-
-
(54)
At 31 December 2020
208
0
17
53
-
278
-
-
-
278
Revisions and improved recovery
31
0
(1)
14
-
44
-
-
-
44
Extensions and discoveries
1
-
-
4
-
5
-
-
-
5
Purchases of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Sales of reserves-in-place
-
-
-
(17)
-
(17)
-
-
-
(17)
Production
(38)
(0)
(3)
(9)
-
(49)
-
-
-
(49)
At 31 December 2021
202
0
14
45
-
261
-
-
-
261
Revisions and improved recovery
13
0
(3)
13
-
23
-
-
-
23
Extensions and discoveries
26
-
-
10
-
37
-
-
-
37
Purchases of reserves-in-place
4
3
-
-
-
7
-
-
-
7
Sales of reserves-in-place
(3)
-
-
-
-
(3)
-
-
-
(3)
Production
(34)
(0)
(2)
(8)
-
(45)
-
-
-
(45)
At 31 December 2022
209
3
8
60
-
280
-
-
-
280
Proved developed NGL reserves
At 31 December 2019
175
-
15
49
-
240
-
-
-
240
At 31 December 2020
141
0
15
47
-
204
-
-
-
204
At 31 December 2021
160
0
12
37
-
209
-
-
-
209
At 31 December 2022
149
3
8
51
-
210
-
-
-
210
Proved undeveloped NGL
reserves
At 31 December 2019
78
-
3
16
-
97
-
-
-
97
At 31 December 2020
66
(0)
2
6
-
74
-
-
-
74
At 31 December 2021
42
-
2
8
-
52
-
-
-
52
At 31 December 2022
60
0
0
9
-
70
-
-
-
70
Equinor 2022 Reserves Report 24
Consolidated companies
Equity accounted
Net proved natural gas reserves
(in billion cf)
Norway
Eurasia
excludin
g
Norway
Africa
USA
America
s
excludin
g USA
Subtotal
Norway
Eurasia
excludin
g
Norway
America
s
excludin
g USA
Subtotal
Total
At 31 December 2019
14,330
111
241
2,371
8
17,060
-
295
-
295
17,355
Revisions and improved
recovery
(195)
(36)
29
(311)
8
(505)
-
(28)
-
(28)
(534)
Extensions and discoveries
4
-
-
485
-
488
-
-
-
-
488
Purchases of reserves-in-
place
-
-
-
-
-
-
-
-
4
4
4
Sales of reserves-in-place
-
-
-
-
-
-
-
-
-
-
-
Production
(1,425)
(26)
(42)
(373)
(9)
(1,874)
-
(3)
(1)
(3)
(1,878)
At 31 December 2020
12,714
49
227
2,171
7
15,169
-
264
3
267
15,436
Revisions and improved
recovery
1,576
46
(23)
231
7
1,837
-
(183)
1
(182)
1,656
Extensions and discoveries
23
-
-
313
-
337
-
-
11
11
348
Purchases of reserves-in-
place
-
-
-
-
-
-
-
-
-
-
-
Sales of reserves-in-place
-
-
-
(87)
-
(87)
-
-
-
-
(87)
Production
(1,500)
(20)
(41)
(396)
(8)
(1,966)
-
(3)
(1)
(5)
(1,971)
At 31 December 2021
12,813
75
163
2,233
6
15,289
-
78
14
92
15,381
Revisions and improved
recovery
720
3
(44)
23
11
713
-
0
6
6
720
Extensions and discoveries
494
-
-
434
-
928
-
-
9
9
937
Purchases of reserves-in-
place
41
40
-
-
-
81
-
-
-
-
81
Sales of reserves-in-place
(79)
-
-
-
-
(79)
-
(78)
-
(78)
(157)
Production
(1,608)
(23)
(28)
(346)
(7)
(2,012)
-
(0)
(2)
(3)
(2,015)
At 31 December 2022
12,380
94
91
2,344
10
14,920
-
-
26
26
14,946
Proved developed natural
gas reserves
At 31 December 2019
9,417
111
217
1,645
8
11,398
-
67
-
67
11,465
At 31 December 2020
7,863
49
199
1,681
7
9,799
-
123
3
126
9,926
At 31 December 2021
11,145
75
145
1,845
5
13,217
-
19
9
28
13,244
At 31 December 2022
10,294
89
91
1,921
8
12,403
-
-
17
17
12,420
Proved undeveloped natural
gas reserves
At 31 December 2019
4,912
0
23
726
-
5,662
-
228
-
228
5,889
At 31 December 2020
4,851
0
28
490
-
5,369
-
141
0
141
5,510
At 31 December 2021
1,667
-
17
387
0
2,072
-
59
5
64
2,136
At 31 December 2022
2,087
5
-
423
2
2,517
-
-
9
9
2,526
Equinor 2022 Reserves Report 25
Consolidated companies
Equity accounted
Net proved reserves
(in million boe)
Norway
Eurasia
excludin
g
Norway
Africa
USA
America
s
excludin
g USA
Subtotal
Eurasia
excludin
g
Norway
America
s
excludin
g USA
Subtotal
Total
At 31 December 2019
4,270
187
198
870
370
5,895
109
-
109
6,004
Revisions and improved recovery
(9)
(18)
40
(118)
(55)
(161)
(10)
-
(10)
(171)
Extensions and discoveries
28
2
-
101
-
131
0
-
0
131
Purchases of reserves-in-place
-
-
-
-
-
-
-
6
6
6
Sales of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Production
(486)
(20)
(49)
(126)
(26)
(708)
(2)
(1)
(3)
(710)
At 31 December 2020
3,802
151
189
727
289
5,158
97
5
102
5,260
Revisions and improved recovery
465
(6)
13
78
62
611
(16)
1
(15)
596
Extensions and discoveries
19
0
-
61
210
290
2
14
16
306
Purchases of reserves-in-place
-
-
-
-
-
-
-
-
-
-
Sales of reserves-in-place
-
-
-
(89)
(6)
(96)
-
-
-
(96)
Production
(505)
(18)
(42)
(117)
(20)
(703)
(6)
(2)
(8)
(710)
At 31 December 2021
3,781
127
159
660
534
5,261
77
18
95
5,356
Revisions and improved recovery
275
(14)
29
49
4
343
0
1
1
344
Extensions and discoveries
181
-
-
89
-
269
-
9
9
278
Purchases of reserves-in-place
21
15
-
-
-
36
-
-
-
36
Sales of reserves-in-place
(42)
(10)
-
-
-
(52)
(76)
-
(76)
(128)
Production
(508)
(16)
(40)
(103)
(24)
(691)
(1)
(3)
(5)
(695)
At 31 December 2022
3,708
103
148
694
514
5,167
-
24
24
5,191
Proved developed reserves
At 31 December 2019
2,544
64
178
621
255
3,663
17
-
17
3,679
At 31 December 2020
2,196
63
161
564
203
3,187
30
5
35
3,222
At 31 December 2021
2,847
60
141
527
206
3,782
25
12
36
3,818
At 31 December 2022
2,714
53
131
554
205
3,656
-
16
16
3,672
Proved undeveloped reserves
At 31 December 2019
1,725
123
20
250
115
2,233
92
-
92
2,325
At 31 December 2020
1,606
88
28
163
86
1,971
67
0
67
2,038
At 31 December 2021
934
67
18
133
328
1,479
53
6
59
1,538
At 31 December 2022
994
50
17
140
310
1,510
-
9
9
1,519
The conversion rates used in this table are 1 standard cubic meter = 35.3 standard cubic feet, 1 standard cubic meter oil equivalent =
6.29 barrels of oil equivalent (boe) and 1,000 standard cubic meter gas = 1 standard cubic meter oil equivalent.
Standardised measure of discounted future net cash flows relating to proved oil and gas reserves
Equinor 2022 Reserves Report 26
The table below shows the standardised measure of future net cash flows relating to proved reserves. The analysis is computed in
accordance with Topic 932, by applying average market prices as defined by the SEC, year end costs, year end statutory tax rates
and a discount factor of 10% to year end quantities of net proved reserves. The standardised measure of discounted future net cash
flows is a forward-looking statement.
Future price changes are limited to those provided by existing contractual arrangements at the end of each reporting year. Future
development and production costs are those estimated future expenditures necessary to develop and produce year end estimated
proved reserves based on year end cost indices, assuming continuation of year end economic conditions. Pre-tax future net cash flow
is net of decommissioning and removal costs. Estimated future income taxes are calculated by applying the appropriate year end
statutory tax rates. These rates reflect allowable deductions and tax credits and are applied to estimated future pre-tax net cash flows,
less the tax basis of related assets. Discounted future net cash flows are calculated using a discount rate of 10% per year.
Discounting requires a year-by-year estimate of when future expenditures will be incurred and when reserves will be produced. The
standardised measure of discounted future net cash flows prescribed under Topic 932 requires assumptions as to the timing and
amount of future development and production costs and income from the production of proved reserves. The information does not
represent management's estimate or Equinor's expected future cash flows or the value of its proved reserves and therefore should not
be relied upon as an indication of Equinor’s future cash flow or value of its proved reserves.
Equinor 2022 Reserves Report 27
At 31 December 2022
(in USD million)
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Consolidated companies
Future net cash inflows
620,024
11,225
13,955
35,382
50,744
731,330
Future development costs
(15,595)
(1,795)
(1,012)
(1,388)
(3,830)
(23,620)
Future production costs
(60,837)
(4,356)
(3,706)
(8,736)
(19,807)
(97,442)
Future income tax expenses
(449,351)
(1,725)
(3,864)
(5,402)
(5,122)
(465,465)
Future net cash flows
94,241
3,348
5,374
19,855
21,984
144,803
10% annual discount for estimated timing of cash flows
(36,714)
(954)
(1,275)
(7,124)
(10,633)
(56,701)
Standardised measure of discounted future net cash flows
57,527
2,394
4,099
12,731
11,351
88,102
Equity accounted investments
Standardised measure of discounted future net cash flows
-
-
-
-
316
316
Total standardised measure of discounted future net cash
flows including equity accounted investments
57,527
2,394
4,099
12,731
11,667
88,418
At 31 December 2021
(in USD million)
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Consolidated companies
Future net cash inflows
287,382
8,705
9,619
21,486
35,236
362,429
Future development costs
(10,999)
(1,947)
(685)
(1,112)
(4,186)
(18,928)
Future production costs
(53,251)
(4,196)
(3,380)
(7,269)
(16,782)
(84,878)
Future income tax expenses
(178,370)
(352)
(2,138)
(2,686)
(2,979)
(186,525)
Future net cash flows
44,763
2,209
3,416
10,420
11,289
72,097
10% annual discount for estimated timing of cash flows
(18,051)
(652)
(707)
(3,406)
(5,842)
(28,658)
Standardised measure of discounted future net cash flows
26,711
1,557
2,709
7,014
5,447
43,439
Equity accounted investments
Standardised measure of discounted future net cash flows
-
224
-
-
126
350
Total standardised measure of discounted future net cash
flows including equity accounted investments
26,711
1,782
2,709
7,014
5,573
43,789
At 31 December 2020
(in USD million)
Norway
Eurasia
excluding
Norway
Africa
USA
Americas
excluding
USA
Total
Consolidated companies
Future net cash inflows
107,618
6,610
7,234
14,892
10,685
147,039
Future development costs
(11,209)
(2,489)
(682)
(1,351)
(1,534)
(17,265)
Future production costs
(42,410)
(3,622)
(3,170)
(8,020)
(7,568)
(64,790)
Future income tax expenses
(35,236)
(209)
(1,262)
(965)
(336)
(38,008)
Future net cash flows
18,763
290
2,119
4,556
1,248
26,976
10% annual discount for estimated timing of cash flows
(6,937)
(80)
(505)
(1,269)
24
(8,768)
Standardised measure of discounted future net cash flows
11,826
210
1,614
3,286
1,272
18,209
Equity accounted investments
Standardised measure of discounted future net cash flows
-
(32)
-
-
22
(10)
Equinor 2022 Reserves Report 28
Total standardised measure of discounted future net cash
flows including equity accounted investments
11,826
178
1,614
3,286
1,294
18,199
Equinor 2022 Reserves Report 29
Changes in the standardised measure of discounted future net cash flows from proved reserves
(in USD million)
2022
2021
2020
Consolidated companies
Standardised measure at 1 January
43,439
18,209
35,173
Net change in sales and transfer prices and in production (lifting) costs related to future production
231,555
126,974
(52,527)
Changes in estimated future development costs
(4,739)
(5,915)
(1,547)
Sales and transfers of oil and gas produced during the period, net of production cost
(91,580)
(43,998)
(15,180)
Net change due to extensions, discoveries, and improved recovery
15,928
7,734
265
Net change due to purchases and sales of minerals in place
386
(2,280)
-
Net change due to revisions in quantity estimates
34,325
17,080
3,263
Previously estimated development costs incurred during the period
6,691
6,619
6,558
Accretion of discount
15,063
4,078
9,087
Net change in income taxes
(162,965)
(85,062)
33,117
Total change in the standardised measure during the year
44,663
25,230
(16,965)
Standardised measure at 31 December
88,102
43,439
18,209
Equity accounted investments
Standardised measure at 31 December
316
350
(10)
Standardised measure at 31 December including equity accounted investments
88,418
43,789
18,199
In this table each line item presents the sources of changes in the standardised measure of value on a discounted basis, with the
accretion of discount line item reflecting the increase in the net discounted value of the proved oil and gas reserves due to the fact that
the future cash flows are now one year closer in time.
The standardised measure at the beginning of the year represents the discounted net present value after deductions of both future
development costs, production costs and taxes. The line item Net change in sales and transfer prices and in production (lifting) costs
related to future production is, on the other hand, related to the future net cash flows at 31 December 2021. The proved reserves at 31
December 2021 were multiplied by the actual change in price, and change in unit of production costs, to arrive at the net effect of
changes in price and production costs. Development costs and taxes are reflected in the line items Change in estimated future
development costs and Net change in income taxes and are not included in the Net change in sales and transfer prices and in
production (lifting) costs related to future production.
Equinor 2022 Reserves Report 30
Terms and abbreviations
Organisational abbreviations
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Measurement abbreviations etc.
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Equivalent measurements are based upon
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Miscellaneous terms
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●
Natural gas volumes are converted to barrels on the basis of energy content.
●
pressure – also called natural gasoline or naphtha.
●
natural gas fields.
●
that correspond to Equinor's percentage ownership in a particular field. Entitlement volumes, on the other hand, represent Equinor's
share of the volumes distributed to the partners in the field, which are subject to deductions for, among other things, royalties and the
host government's share of profit oil. Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally
increase with the cumulative return on investment to the partners and/or production from the licence. The distinction between equity and
entitlement is relevant to most PSA regimes, whereas it is not applicable in most concessionary regimes such as those in Norway, the
United Kingdom, Canada and Brazil. The overview of equity production provides additional information for readers, as certain costs
described in the profit and loss analysis were directly associated with equity volumes produced during the reported years.
●
expected value at a certain reference point in time. IOR comprises both of conventional and emerging technologies.
●
Equinor 2022 Reserves Report 31
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LPG is shipped in special vessels.
●
containing some ethane and smaller quantities of heavier hydrocarbons (also called sales gas) and 2) wet gas, primarily ethane, propane
and butane as well as smaller amounts of heavier hydrocarbons; partially liquid under atmospheric pressure.
●
temperature.
●
hydrogen (H) and carbon (C). The proportion of different compounds, from methane and ethane up to the heaviest components, in a
petroleum find varies from discovery to discovery. If a reservoir primarily contains light hydrocarbons, it is described as a gas field. If
heavier hydrocarbons predominate, it is described as an oil field. An oil field may feature free gas above the oil and contain a quantity of
light hydrocarbons, also called associated gas.
●
existing economic and political conditions and using existing technology. They are the only type the US Securities and Exchange
Commission allows oil companies to report.