Equinor Cuts Its Oil And Gas Output Guidance

Norway’s energy major Equinor cut its full-year production guidance for both oil and gas, now expecting output to grow by 1.5% rather than 3% as earlier expected.

At the release of its third-quarter results, the company also noted that its gas production had been affected by planned maintenance activities and extended turnarounds.

“We continue to contribute to energy security by developing profitable oil and gas projects with low emissions from production, through the development of the Rosebank field in the UK and the start-up of the Breidablikk field on the NCS," chief executive Anders Opedal said.

Equinor produced 2.007 million barrels of oil equivalent in the third quarter which was down from 2.021 million boepd in the third quarter of 2022. Production of liquid hydrocarbons, however, went up by 12% on the year, Equinor said.

Despite the slight dip in total production and the planned and unplanned outages, Equinor’s third-quarter pre-tax earnings beat analyst expectations, totaling $8.02 billion, compared to an expected $7.59 billion. Still, due to oil and gas prices declining from a year ago, the result was much lower than the figure for Q3 2022, which stood at $24.5 billion.

The company, which has replaced Russia’s Gazprom as the biggest pipeline gas supplier to Europe, recently got the go-ahead for the biggest new oil development in the UK section of the North Sea—the Rosebank field.

The UK’s government decision to greenlight the project caused an outcry among climate activists who staged an immediate protest against the decision calling for it to be revoked.

The government, for its part, noted that it is better to produce the energy the country needs locally rather than import it.

"We will continue to back the UK’s oil and gas industry to underpin our energy security, grow our economy and help us deliver the transition to cheaper, cleaner energy," Energy Security Minister Claire Coutinho said a month ago when the Rosebank decision was announced.

By Irina Slav for Oilprice.com

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