Equinor notes 2% YOY drop in Q1 oil and gas output, terms US wind project halt 'unlawful'

Equinor's oil and gas production fell slightly year over year to 2.123 million boe/d in the first quarter, but the Norwegian energy giant continues to expect a 4% full-year boost in 2025 despite current "market uncertainties," it said April 30.

Posting its quarterly results, state-run Equinor said production had been "solid," despite falling from the 2.164 million boe/d achieved in Q1 2024.

Liquids production was 1.045 million b/d, down from 1.118 million b/d over a similar period the previous year, due partly to international divestments, while gas output ticked up 32,000 boe/d year over year for the quarter.

Strong operational performance from the Norwegian continental shelf, including the Johan Sverdrup and Troll fields, almost offset the negative production impact from the shut-in at Sleipner B following a fire in Q4, as well as maintenance at its Hammerfest LNG project, the company added.

Output in the US increased year over year following transactions that increased Equinor's ownership stake in onshore gas assets, while international upstream production took a hit from divestments from Nigeria and Azerbaijan in 2024, including a stake in the huge offshore Agbami field in the former, which was sold to local player Chappal Energies.

Equinor said it had produced 1.4 TWh of power across its portfolio, including 0.76 TWh from its renewable portfolio, which was essentially flat year over year.

Despite the slight production drop, Equinor posted strong adjusted operating income of $8.65 billion for the quarter, up from $7.53 billion last year, on higher gas prices and output, it said, having overtaken Russia's Gazprom as Europe's biggest natural gas supplier following the war in Ukraine.

The Platts-assessed Dutch TTF day-ahead contract gas price hit almost Eur60/MWh in early February, due to colder-than-expected winter weather, increased demand for heating, and ongoing supply constraints, but has since retreated to Eur31.86/MWh.

"I am pleased to see the good operational performance and solid production capturing higher gas prices," said CEO Anders Opedal. "With the current market uncertainties, Equinor's core objective is safe, stable, and cost-efficient operations and resilience through a strong balance sheet."

He highlighted the start-up of the Johan Castberg field, which came online on March 31 following a string of delays, marking a major milestone for the company. The field's production is expected to "plateau" at around 220,000 b/d in the first half of 2025 thanks to numerous wells already drilled, Equinor said previously.

Opedal said the project "strengthens Norway's role as a reliable energy exporter to Europe. The field opens a new region in the Barents Sea and is expected to contribute to energy supply, value creation, and ripple effects for at least 30 years to come."

Production also started at the Halten East development in the Norwegian Sea, with estimated recoverable reserves of 100 million boe. In Brazil, the company's Bacalhau FPSO is already on site in the Santos Basin, with first oil expected this year.

For 2025, Equinor expects 4% production growth across its portfolio of oil and gas assets, it said, and has earmarked $13 billion for organic capex. Organic capex for the first quarter was $3 billion.

'Unlawful' project halt

The Norwegian company also took aim at US President Donald Trump's administration for halting the multi-billion dollar Empire Wind offshore power project in its results April 30.

Equinor received a "halt work order" from the US government in April for the project, which was permitted in 2024 and could deliver power to half a million homes in New York, according to the company.

It was approximately 30% completed when interior secretary Doug Bergum decided that the previous administration of Joe Biden had not conducted sufficient environmental analysis.

"We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful," said Opedal. "This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals."

He added, "We seek to engage directly with the US administration to clarify the matter and are considering our legal options."