Equinor's oil output jumps 13% on year in Q3 on Sverdrup, overseas projects

Norway's Equinor increased its oil production by 13% on the year to 1.04 million b/d in the third quarter on the back of strong performance at the Johan Sverdrup field, as well as projects around the world in the Gulf of Mexico, Brazil and UK, it said Oct. 27.

However, Equinor cut its forecast for total increase in hydrocarbon production to 1.5% for 2023 from 3% earlier, as strong oil output was offset by an 13% drop in its global gas production to 836,000 b/d of oil equivalent in the third quarter. The latter stemmed from maintenance over-running at several Norwegian fields, including Troll, Norway's largest gas producing field. Total hydrocarbon production was unchanged on the year at 1.88 million boe/d.

In oil, production was boosted by the Johan Sverdrup field, the second phase of which came onstream in December 2022. Sverdrup "operated at plateau with high, efficient production during the third quarter continuing to be the primary driver for the increase in [Norwegian] liquid production in the third quarter and year-to-date, offsetting the effects of divestments in Martin Linge and Ekofisk in the third quarter of 2022," Equinor said.

The startup of Sverdrup Phase 2 lifted the project's capacity to 755,000 b/d. The field produces medium-sour crude and accounts for roughly a quarter of all oil production in the North Sea. Platts, part of S&P Global Commodity Insights, assessed Sverdrup at a $1.60/b premium to Dated Brent on Oct. 26.

Elsewhere, Equinor got a boost from improved performance at the Peregrino heavy oil field offshore Brazil and the startup in February of the Shell-operated Vito field in the Gulf of Mexico. It also gained additional oil output with its purchase of the UK assets of Canada's Suncor. These included a 29.89% stake in the Buzzard field -- a contributor to the Forties crude blend -- and a 40% stake in the Rosebank project, approved for development in September and due on stream in 2026-27.

Elsewhere, in the midstream business, Equinor highlighted "strong results from sales and trading of oil and oil products."

Equinor's earnings fell from the third quarter 2022, with cash flow from operations down 20% at $5.24 billion, but the company remaining debt free.

CEO Anders Opedal highlighted progress on several energy transition projects, including the startup of the world's largest offshore wind farm, Dogger Bank, offshore the UK, in October, as well as onshore renewables projects in Brazil and Poland and the company's entry to a US carbon capture and storage project, Bayou Bend.