Equinor Gas Production Issues Pulling Down 2023 Hydrocarbon Production Forecasts

Norway’s 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 bpd of oil equivalent in Q3.

• Gas production has been hit by over running maintenance at several fields – including the largest in Norway, Troll.
• On oil, 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.
• Sverdrup stage 2, completed late last year, brought its capacity up to 755,000 bpd.
• Crude from Sverdrup has benefitted from global heavy crude tightness and the desire for more distillate producing barrels globally. It was priced at a $1.60/bbl premium over dated Brent October 26 based on Platts assessment.
• Due to energy security concerns driven by a lack of Russian supply, Norwegian production plans are of much greater interest for European energy markets. It is the single biggest gas supplier for the region now.