20-F

Equinor 2023 Annual Report on Form 20-F 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM

20-F

(Mark One)

☐

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF

1934

OR

☒

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended

December 31, 2023

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

OR

☐

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

Commission file number

1-15200

Equinor ASA

(Exact Name of Registrant as Specified in Its Charter)

N/A

(Translation of Registrant’s Name Into English)

Norway

(Jurisdiction of Incorporation or Organization)

Forusbeen 50

,

N-4035

,

Stavanger

,

Norway

(Address of Principal Executive Offices)

Torgrim Reitan

Chief Financial Officer

Equinor ASA

Forusbeen 50

,

N-4035

Stavanger

,

Norway

Telephone No.: 011-

47

-

5199-0000

Fax No.: 011-47-

5199-0050

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange On Which

Registered

American Depositary Shares

EQNR

New York Stock Exchange

Ordinary shares, nominal value of NOK

2.50

 each

EQNR

New York Stock Exchange

*

*Listed, not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the

requirements of the Securities and Exchange Commission

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

 None

Equinor 2023 Annual Report on Form 20-F 2

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the

period covered by the annual report.

Ordinary shares of NOK 2.50 each

2,944,733,144

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☒

 Yes 

☐

No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to

Section 13 or 15(d) of the Securities Exchange Act of 1934.

☐

 Yes 

☒

 No

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934 from their obligations under those Sections.

☒

Yes 

☐

No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit and post such files)

☒

Yes 

☐

No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company”

in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer 

☐

Non-accelerated filer 

☐

Emerging growth company 

☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if

the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting

standards† provided pursuant to Section 13(a) of the Exchange Act 

☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards

Board to its Accounting Standards Codification after April 5, 2012. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 762(b))

by the registered public accounting firm that prepared or issued its audit report.

☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements. 

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive

based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to

§240.10D-1(b). 

☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing:

U.S. GAAP 

☐

International Financial Reporting Standards

 as issued

by the International Accounting Standards Board 

☒

 Other 

☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the

registrant has elected to follow.

Item 17 

☐

Item 18 

☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2

of the Exchange Act).

☐

Yes 

☒

 No

Equinor 2023 Annual Report on Form 20-F 3

TABLE OF CONTENTS

INTRODUCTION

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FORWARD-LOOKING STATEMENTS

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

A. Directors and Senior Management

B. Advisers

C. Auditors

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

A. Offer Statistics

B. Method and Expected Timetable

ITEM 3. KEY INFORMATION

A. [Reserved]

B. Capitalization and Indebtedness

C. Reason for the Offer and Use of Proceeds

D. Risk Factors

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

B. Business Overview

C. Organizational Structure

D. Property, Plant and Equipment

ITEM 4A. UNRESOLVED STAFF COMMENTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

B. Liquidity and capital resources

C. Research and development, Patents and Licences, etc.

D. Trend information

E. Critical Accounting Estimates

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

B. Compensation

C. Board Practices

D. Employees

E. Share Ownership

F.

Disclosure of a registrant’s action to recover erroneously awarded compensation.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major shareholders

B. Related Party Transactions

C. Interests of Experts and Counsel

ITEM 8. FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

B. Significant Changes

ITEM 9. THE OFFER AND LISTING

A. Offer and Listing Details

B. Plan of Distribution

C. Markets

D. Selling Shareholders

E. Dilution

F.

Expenses of the Issue

ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

B. Memorandum and Articles of Association

C. Material Contracts

D. Exchange controls

Equinor 2023 Annual Report on Form 20-F 4

E. Taxation

F.

Dividends and Paying Agents

G. Statement by Experts

H. Documents on Display

I. Subsidiary Information

J. Annual Report to Security Holders.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

B. Warrants and Rights

C. Other Securities

D. American Depositary Shares

PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 15. CONTROLS AND PROCEDURES

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

ITEM 16B. CODE OF ETHICS

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

ITEM 16G. CORPORATE GOVERNANCE

ITEM 16H. MINE SAFETY DISCLOSURE

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 16J. INSIDER TRADING POLICIES

ITEM 16K. CYBERSECURITY 

PART III

ITEM 17. FINANCIAL STATEMENTS

ITEM 18. FINANCIAL STATEMENTS

ITEM 19. EXHIBITS

CONSOLIDATED FINANCIAL STATEMENTS

Equinor 2023 Annual Report on Form 20-F 5

INTRODUCTION

Unless otherwise indicated, all references herein to “we”, “our”, the “company”, the “group” or “Equinor” are references to Equinor ASA

and its consolidated subsidiaries.

This document is our annual report on Form 20-F for the year ended 31 December 2023 (“

2023 Form 20-F

”). Reference is made to

our Norwegian Integrated Annual Report for 2023 which is attached hereto as Exhibit 15.4 (the “

2023 Annual Report

”), our 2023 Oil

and Gas Reserves Report which is attached hereto as exhibit 15.5 (the “

2023 Oil and Gas Reserves Report

”), our 2023

Remuneration Report which is attached hereto as exhibit 15.6 (the

“2023 Remuneration Report

”), and our 2023 Board of

Governance Report which is attached hereto as exhibit 15.7 (the “

2023 Corporate Governance Report

”). Only (i) the information

included in this 2023 Form 20-F, (ii) the information in the 2023 Annual Report, the 2023 Oil and Gas Reserves Report, the 2023

Remuneration Report and the 2023 Corporate Governance Report that is incorporated by reference in this 2023 Form 20-F (excluding

any page references incorporated in the incorporated material unless specifically noted otherwise), and (iii) the other exhibits to this

2023 Form 20-F shall be deemed to be filed with the Securities and Exchange Commission (“

SEC

”) for any purpose, including

incorporation by reference into the Registration Statement on Form F-3 filed on May 4, 2023 (File No. 333-271647), and Registration

Statement on Form S-8 filed on February 9, 2022 (File No. 333-262601) and any other documents filed by us pursuant to the

Securities Act of 1933, as amended, which purport to incorporate by reference the 2023 Form 20-F. Unless otherwise indicated,

references to major headings include all information under such major headings, including subheadings, unless such reference is a

reference to a subheading, in which case such reference includes only the information contained under such subheading. Any other

information shall not be deemed to be so incorporated by reference. 

In addition to the information set out below, the information set forth under the heading “Other definitions and abbreviations” in Section

5.7 of Chapter 5 on pages 306 – 309 of the 2023 Annual Report is incorporated herein by reference.

The 2023 Annual Report contains references to our website (https://www

.

equinor.com). Information on our website or any other

website referenced in the 2023 Annual Report is not incorporated into this document and should not be considered part of this

document.

The SEC maintains an Internet website that contains reports and other information regarding issuers that file electronically with the

SEC. Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov.

The information about Equinor’s competitive position in this 2023 Form 20-F (including the information in the 2023 Annual Report that

is incorporated by reference herein) is based on several sources such as investment analyst reports, independent market studies, and

internal assessments of market share based on publicly available information about the financial results and performance of market

players.

Equinor 2023 Annual Report on Form 20-F 6

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Since 2007, Equinor has been preparing its audited consolidated financial statements in accordance with International Financial

Reporting Standards (IFRS® Accounting Standards) as adopted by the European Union (EU) and as issued by the International

Accounting Standards Board. IFRS Accounting Standards have been applied consistently to all periods in our audited consolidated

financial statements as of 31 December 2023 and 2022, and for the three years ended 31 December 2023 included in this 2023 Form

20-F (the “Consolidated financial statements”).

Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or

included in the comparable measures calculated and presented in accordance with generally accepted accounting principles: (i.e,

IFRS Accounting Standards in the case of Equinor). The following financial measures included in this 2023 Form 20-F may be

considered non-GAAP financial measures:

a)

 Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital

employed ratio adjusted

b)

 Return on average capital employed (ROACE)

c)

 Organic capital expenditures

d)

 Gross capital expenditure (gross capex)

e)

 Cash flows from operations after taxes paid (CFFO after taxes paid)

f)

 Net cash flow (previously named Free cash flow)

g)

 Adjusted earnings and adjusted earnings after tax

For more information on the calculation and reconciliation of these non-GAAP financial measures, see “Item 5. Operating and

Financial Review and Prospects—B. Liquidity and capital resources—Use and reconciliation of non-GAAP financial measures.”

Equinor 2023 Annual Report on Form 20-F 7

FORWARD-LOOKING STATEMENTS

This 2023 Form 20-F F (including information incorporated herein from the 2023 Integrated Annual Report) contains certain forward-looking

statements that involve risks and uncertainties, in particular in the sections incorporated by reference in Item 4 of this 2023 Form 20-F. In

some cases, we use words such as "aim", "ambition", "anticipate", "believe", "continue", “commit”, "could", "estimate", "expect", "intend",

"likely", "objective", "outlook", "may", "plan", "schedule", "seek", "should", "strategy", "target", "will", "goal" and similar expressions to identify

forward-looking statements. All statements other than statements of historical fact, including: the commitment to develop as a broad energy

company and diversify our energy mix; the ambition to be a leading company in the energy transition; ambition to reach net zero by 2050 and

expectations regarding progress on our energy transition plan; our ambitions regarding reduction in operated emissions and net carbon

intensity and allocation of gross capex* to renewables and low carbon solutions; our ambitions and expectations regarding decarbonisation;

our ambition to maintain value in oil and gas, focus on high value growth in renewables and contribute to maturing CCS and hydrogen

markets; ambition to attain a leadership position in the European CCS market and expectations regarding market share for storage and

hydrogen; aims, expectations and plans for renewables production capacity and power generation, investments in renewables and low-carbon

solutions and the balance between oil and gas and renewables production; our expectations with respect to net carbon intensity, operated

emissions, carbon and methane intensity and flaring reductions; our internal carbon price and other financial metrics for investment decisions;

break-even considerations and targets; robustness of our portfolio; aims and expectations regarding Equinor’s resilience across different

climate scenarios; future levels of, and expected value creation from, oil and gas production, scale and composition of the oil and gas portfolio,

and development of CCS and hydrogen businesses; plans to develop fields; our intention to optimise and mature our portfolio; future

worldwide economic trends, market outlook and future economic projections and assumptions, including commodity price assumptions;

expectations and plans regarding capital expenditures; future financial performance, including earnings, cash flow, liquidity and return on

average capital employed (ROACE)*; the ambition to grow cash flow and returns; expectations regarding cash flow and returns from our oil

and gas portfolio and renewables and low carbon solutions portfolio; organic capital expenditures for 2024; expectations and estimates

regarding production and execution of projects; the ambition to keep unit of production cost in the top quartile of our peer group; scheduled

maintenance activity and the effects thereof on equity production; business strategy and competitive position; sales, trading and market

strategies; research and development initiatives and strategy, including ambitions regarding allocation of research and development capital

towards renewables and low carbon-solutions; expectations related to production levels, unit production cost, investments, exploration

activities, discoveries and development in connection with our ongoing transactions and projects; our ambitions, expectations and plans

regarding diversity and inclusion, employee training and supporting a just energy transition; plans and expectations regarding completion and

results of acquisitions, disposals and other contractual arrangements and delivery commitments; plans, ambitions and expectations regarding

recovery factors and levels, future margins and future levels or development of capacity, reserves or resources; planned turnarounds and

other maintenance activity; expectations regarding growth in oil and gas, , including for volumes lifted and sold to equal entitlement production,

and renewable power production; estimates related to production and development, forecasts, reporting levels and dates; operational

expectations, estimates, schedules and costs; expectations relating to licences and leases; oil, gas, alternative fuel and energy prices,

volatility, supply and demand; plans and expectations regarding processes related to human rights laws, corporate structure and

organizational policies; digitization, technological innovation, implementation, position and expectations; expectations regarding role and

composition of the board and our remuneration policies; our goal of safe and efficient operations; effectiveness of our internal policies and

plans; our ability to manage our risk exposure, our liquidity levels and management of liquidity reserves; future credit ratings; estimated or

future liabilities, obligations or expenses; expected impact of currency and interest rate fluctuations; projected outcome, impact or timing of

HSE regulations; HSE goals and objectives of management for future operations; our ambitions and plans regarding biodiversity (including our

aim to develop a net-positive impact approach for projects) and value creation for society; expectations related to regulatory trends; impact of

PSA effects; projected impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation

laws); projected impact of legal claims against us; plans for capital distribution, share buy-backs and amounts and timing of dividends are

forward-looking statements.

You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in

the forward-looking statements for many reasons, including the risks factors incorporated in Item 3.D of this 2023 Form 20-

F.

Forward-looking statements are not guarantees of future performance. They reflect current views about future events, are based on

management’s current expectations and assumptions and are, by their nature, subject to significant risks and uncertainties because they

relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and

developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product

supply, demand and pricing, in particular in light of significant oil price volatility; unfavourable macroeconomic conditions and inflationary

pressures; exchange rate and interest rate fluctuations; levels and calculations of reserves and material differences from reserves estimates;

regulatory stability and access to resources, including attractive low carbon opportunities; the effects of climate change and changes in

stakeholder sentiment and regulatory requirements regarding climate change; changes in market demand and supply for renewables; inability

to meet strategic objectives; the development and use of new technology; social and/or political instability, including as a result of Russia’s

invasion of Ukraine and the conflict in the Middle East; failure to prevent or manage digital and cyber disruptions to our information and

operational technology systems and those of third parties on which we rely; operational problems, including cost inflation in capital and

operational expenditures; unsuccessful drilling; availability of adequate infrastructure at commercially viable prices; the actions of field partners

and other third-parties; reputational damage; the actions of competitors; the actions of the Norwegian state as majority shareholder and

exercise of ownership by the Norwegian state; changes or uncertainty in or non-compliance with laws and governmental regulations; adverse

changes in tax regimes; the political and economic policies of Norway and other oil-producing countries; regulations on hydraulic fracturing

Equinor 2023 Annual Report on Form 20-F 8

and low-carbon value chains; liquidity, interest rate, equity and credit risks; risk of losses relating to trading and commercial supply activities;

an inability to attract and retain personnel; ineffectiveness of crisis management systems; inadequate insurance coverage; health, safety and

environmental risks; physical security risks to personnel, assets, infrastructure and operations from hostile or malicious acts; failure to meet

our ethical and social standards; non-compliance with international trade sanctions; and other factors discussed elsewhere in this 2023 Form

20-F.

The achievement of Equinor’s climate ambitions depends, in part, on broader societal shifts in consumer demands and technological

advancements, each of which are beyond Equinor’s control. Should society’s demands and technological innovation not shift in parallel with

Equinor’s pursuit of its energy transition plan, Equinor’s ability to meet its climate ambitions will be impaired. The calculation of Equinor’s net

carbon intensity presented in this report includes an estimate of emissions from the use of sold products (GHG protocol category 11) as a

means to more accurately evaluate the emission lifecycle of what we produce to respond to the energy transition and potential business

opportunities arising from shifting consumer demands. Including these emissions in the calculations should in no way be construed as an

acceptance by Equinor of responsibility for the emissions caused by such use.

The reference to any scenario in this report, including any potential net-zero scenarios, does not imply Equinor views any particular scenario

as likely to occur. Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their respective authors, not

Equinor, and their use by Equinor is not an endorsement by Equinor of their underlying assumptions, likelihood or probability. Investment

decisions are made on the basis of Equinor’s separate planning process. Any use of the modeling of a third-party organization within this

report does not constitute or imply an endorsement by Equinor of any or all of the positions or activities of such organization.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future

results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes

responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks only as of the date

on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any of these statements

after the date of this 2023 Form 20-F, either to make them conform to actual results or changes in our expectations.

Equinor 2023 Annual Report on Form 20-F 9

Part I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

A. Directors and Senior Management

Not applicable.

B. Advisers

Not applicable.

C. Auditors

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

A. Offer statistics

Not applicable.

B. Method and Expected Timetable

Not applicable.

ITEM 3. KEY INFORMATION

A. [Reserved]

B. Capitalization and Indebtedness

Not applicable.

C. Reason for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

The information set forth under the heading “

Risk Factors

” in section 5.2 of chapter 5 on pages 264– 270 of the 2023 Annual

Report is incorporated herein by reference.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

Equinor ASA was incorporated on 18 September 1972, is a public limited liability company organised under the laws of Norway

and is subject to the provisions of the Norwegian Public Limited Liability Companies Act. Equinor’s head office is located at Forusbeen

50, 4035 Stavanger, Norway. The telephone number of its principal place of business is +47-5199-00 00.

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

Equinor 2023 Annual Report on Form 20-F 10

●

 Progress on our Energy transition plan in 2023 on pages 20 – 23;

●

 Our History in Section 1.2 of Chapter 1 on page 11;

●

 Investments in Section 2.2 of Chapter 2 on page 98;

●

 Key events in Section 3.1 of Chapter 3 on page 125;

●

 The information in the fifth paragraph under the heading “Exploration & Production Norway” in Section 3.1 of

Chapter 3 on page 125;

●

 Key events in Section 3.2 of Chapter 3 on page 131;

●

 The information in the fifth paragraph and under the sub-headings “Brazil” and “UK” under the heading “Exploration

& Production International in Section 3.2 of Chapter 3 on page 130;

●

 Key events 2023 in Section 3.3 of Chapter 3 on page 138;

●

 Strong project pipeline in Section 3.3 of Chapter 3 on page 137;

●

 Key events in Section 3.4 of Chapter 3 on page 144;

●

 Overview in Section 3.5 of Chapter 3 on page 149;

●

 Key events in Section 3.5 of Chapter 3 on page 150; and

●

 Overview in Section 3.6 of Chapter 3 on pages 153 – 154.

The information set forth in the third and fourth paragraphs of the section entitled “

Introduction

” of this 2023 Form 20-F is also

incorporated herein by reference. See also notes 5 Segments and 6 Acquisitions and disposals to the Consolidated financial

statements.

B. Business Overview

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

●

 Key figures for 2023 on page 5;

●

 Key figures by segment on page 5;

●

 We are Equinor in Section 1.1 of Chapter 1 on page 10;

●

 Our Business in Section 1.3 of Chapter 1 on pages 12 – 14;

●

 The world in which we operate in Section 1.4 of Chapter 1 on pages 15 – 16;

●

 Our Strategy in Section 1.5 of Chapter 1 on pages 17 – 19;

●

 The safety, sustainability, and ethics committee (SSEC) in Section 1.9 of Chapter 1 on page 27;

●

 Sustainability approach and Sustainability governance in Section 2.2 of Chapter 2 on pages 56 – 57;

●

 Safe and secure operations, excluding Major accident framework, in Section 2.2 of Chapter 2 on pages 62 – 69;

●

 Management approach in Section 2.2 of Chapter 2 on pages 71 – 72;

●

 Performance evaluation in Section 2.2 of Chapter 2 on page 76;

●

 Management approach in Section 2.2 of Chapter 2 on page 78;

●

 Performance evaluation in Section 2.2 of Chapter 2 on page 81;

●

 Management approach in Section 2.2 of Chapter 2 on pages 82 – 84;

●

 Performance evaluation in Section 2.2 of Chapter 2 on pages 88 – 89;

●

 Portfolio composition under Management approach in Section 2.2 of Chapter 2 on pages 91 – 92;

●

 Procurement and employment that enable growth and opportunities in Section 2.2 of Chapter 2 on page 103;

●

 Performance evaluation in Section 2.2 of Chapter 2 on page 105;

●

 Management approach in Section 2.2 of Chapter 2 on pages 106 – 107;

●

 Performance evaluation in Section 2.2 of Chapter 2 on page 109;

●

 Exploration & Production Norway in Section 3.1 of Chapter 3 on pages 124 – 129;

●

 Exploration & Production International in Section 3.2 of Chapter 3 on pages 130 – 136;

●

 Exploration & Production USA in Section 3.3 of Chapter 3 on pages 137 – 141;

●

 Marketing, Midstream & Processing in Section 3.4 of Chapter 3 on pages 142 – 147

●

 Renewables in Section 3.5 of Chapter 3 on pages 148 – 152; and

●

 Other group in Section 3.6 of Chapter 3 on pages 153 – 155.

See also notes 5 Segments and 7 Total revenues and other income to the Consolidated financial statements.

The information about Equinor’s competitive position in the sections of the 2023 Annual Report that are incorporated by

reference herein is based on several sources such as investment analyst reports, independent market studies, and internal

assessments of market share based on publicly available information about the financial results and performance of market players.

Applicable laws and regulations

Equinor operates in around 30 countries and is exposed and committed to compliance with numerous laws and regulations

globally. The first graphic in Section 1.3 (‘Our Business’) on page 12 in Chapter 1 and the risks set forth under the heading ‘Policies

and legislation’ in Section 5.2 on page 267 of Chapter 5 of the 2023 Annual Report are also incorporated herein by reference.

Equinor 2023 Annual Report on Form 20-F 11

This section gives a general description on the legal and regulatory framework in the various jurisdictions where Equinor operates and

in particular in the countries of Equinor’s core activities.

Regulatory framework for upstream oil and gas operations

Currently, Equinor is subject to two main regimes applicable to petroleum activities worldwide:

●

 Corporate income tax regimes; and

●

 Production sharing agreements (PSAs)

Equinor is also subject to a wide variety of laws and regulations concerning its products, operations and activities, including

without limitations laws and regulations relating to health, safety and environmental (HSE). Relevant laws and regulations include inter

alia jurisdiction specific laws and regulations, international regulations, conventions or treaties, as well as EU directives and

regulations.

Concession regimes

Under a concession regime, companies are granted licences by the government to extract petroleum. This is similar to the

Norwegian system described below. Typically, the licences are offered to pre-qualified companies following bidding rounds. The

criteria for the evaluation of bidding offers under these regimes can be the level of offered signature bonus (bid amount), minimum

exploration programme, and local content. In exchange for those commitments, the successful bidder(s) receive a right to explore,

develop and produce petroleum within a specified geographical area for a limited period of time. The terms of the licences are usually

not negotiable. The fiscal regime may entitle the relevant jurisdiction to royalties, profit tax or special petroleum tax.

PSA regimes

PSAs are normally awarded to the contractor parties after bidding rounds announced by the government. Main bid parameters

are a minimum exploration programme and signature bonuses, allocation of profit oil and, in some cases, tax.

Under a PSA, the host government typically retains the right to the hydrocarbons in place. The contractor receives a share of the

production for services performed. Normally, the contractor carries the exploration and development costs and risk prior to a

commercial discovery and is then entitled to recover those costs during the production phase. The remaining share of the production -

the profit share, is split between the government and the contractor according to a mechanism set out in the PSA. The contractor is

usually subject to income tax on its own share of the profit oil. Fiscal provisions in a PSA are to a large extent negotiable and are

unique to each PSA.

Norway

Norway is not a member of the European Union (EU) but is a member of the European Free Trade Association (EFTA). The EU

and the EFTA Member States have entered into the Agreement on the European Economic Area, referred to as the EEA Agreement,

which provides for the inclusion of EU legislation in the national law of the EFTA Member States (except Switzerland). Equinor’s

business activities are subject to both the EFTA Convention and EU laws and regulations adopted pursuant to the EEA Agreement.

The principal laws governing Equinor’s petroleum activities in Norway and on the NCS are the Norwegian Petroleum Act of 29

November 1996 (the Petroleum Act) and the regulations issued thereunder, and the Norwegian Petroleum Taxation Act of 13 June

1975 (the Petroleum Taxation Act).

Under the Petroleum Act, the Norwegian Ministry of Petroleum and Energy (“MPE”) is responsible for resource management and

for administering petroleum activities on the NCS. The main task of the MPE is to ensure that petroleum activities are conducted in

accordance with the applicable legislation, the policies adopted by the Norwegian Parliament and relevant decisions of the Norwegian

State.

The State’s role in relation to major policy issues in the petroleum sector can affect Equinor in two ways: first, when the

Norwegian State acts in its capacity as majority owner of Equinor shares and, second, when the Norwegian State acts in its capacity

as regulator:

●

 The Norwegian State’s shareholding in Equinor is managed by the Ministry of Trade, Industry and Fisheries. The Ministry will

normally decide how the Norwegian State will vote on proposals submitted to general meetings of the shareholders. However, in

certain exceptional cases, it may be necessary for the Norwegian State to seek approval from the Storting before voting on a

certain proposal. This will normally be the case if Equinor issues additional shares and such issuance would significantly dilute

the Norwegian State’s holding, or if such issuance would require a capital contribution from the Norwegian State in excess of

government mandates. A vote by the Norwegian State against an Equinor proposal to issue additional shares would prevent

Equinor from raising additional capital in this manner and could adversely affect Equinor’s ability to pursue business

opportunities. The information regarding the Norwegian State’s ownership in the information set forth under the heading “Major

Equinor 2023 Annual Report on Form 20-F 12

Shareholders” in Section 5.

1 of Chapter 5 and the risks set forth in “Ownership and action by the Norwegian State” in Section 5.2

of Chapter 5 of the 2023 Annual Report are also incorporated herein by reference. 

●

 The Norwegian State exercises important regulatory powers over Equinor, as well as over other companies and corporations on

the NCS. As part of its business, Equinor or the partnerships to which Equinor is a party, frequently need to apply for licences

and other approvals from the Norwegian State. Although Equinor is majority-owned by the Norwegian State, it does not receive

preferential treatment with respect to licences granted by or under any other regulatory rules enforced by the Norwegian State.

The Petroleum Act sets out the principle that the Norwegian State is the owner of all subsea petroleum on the NCS, that the

exclusive right to resource management is vested in the Norwegian State and that the Norwegian State alone is authorised to award

licences for petroleum activities as well as determine their terms. Licensees are required to submit a plan for development and

operation (PDO) to the MPE for approval. For fields of a certain size, the Storting has to accept the PDO before it is formally approved

by the MPE. Equinor is dependent on the Norwegian State for approval of its NCS exploration and development projects and its

applications for production rates for individual fields.

Production licences are the most important type of licence awarded under the Petroleum Act. A production licence grants the

holder an exclusive right to explore for and produce petroleum within a specified geographical area. The licensees become the

owners of the petroleum produced from the field covered by the licence. Production licences are normally awarded for an initial

exploration period, which is typically six years, but which can be shorter. The maximum period is ten years. During this exploration

period, the licensees must meet a specified work obligation set out in the licence. If the licensees fulfil the obligations set out in the

initial licence period, they are entitled to require that the licence be extended for a period specified at the time when the licence is

awarded, typically 30 years.

The terms of the production licences are decided by the MPE. Production licences are awarded to groups of companies forming a

joint venture at the MPE’s discretion. The members of the joint venture are jointly and severally liable to the Norwegian State for

obligations arising from petroleum operations carried out under the licence. The MPE decides the form of the joint operating

agreements and accounting agreements. The MPE uses the same standard form of joint operating agreement and accounting

agreement for all licenses.

The governing body of the joint venture is the management committee. In licences awarded since 1996 where the State’s direct

financial interest (SDFI) holds an interest, the Norwegian State, acting through Petoro AS, may veto decisions made by the joint

venture management committee, which, in the opinion of the Norwegian State, would not be in compliance with the obligations set

forth in the licence with respect to the Norwegian State’s exploitation policies or financial interests. This power of veto has never been

used.

Interests in production licences may be transferred directly or indirectly subject to the consent of the MPE and the approval of the

tax treatment by the Ministry of Finance. In most licences, there are no pre-emption rights in favour of the other licensees. However,

the SDFI, or the Norwegian State, as appropriate, still hold pre-emption rights in all licences.

The day-to-day management of a field is the responsibility of an operator appointed by the MPE. The operator is in practice

always a member of the joint venture holding the production licence, although this is not legally required. The terms of engagement of

the operator are set out in the joint operating agreement.

If important public interests are at stake, the Norwegian State may instruct the operators on the NCS to reduce the production of

petroleum. An example of this occurred in May 2020, when the Norwegian State imposed a reduction in oil production for the rest of

the year, due to the Covid-19 pandemic that led to a lower demand for oil and gas. The reduction in production was distributed

between all fields on a pro rata basis.

A licence from the MPE is also required in order to establish facilities for the transportation and utilisation of petroleum.

Ownership of most facilities for the transportation and utilisation of petroleum in Norway and on the NCS is organised in the form of

joint ventures. The participants’ agreements are similar to joint operating agreements for production.

Licensees are required to prepare a decommissioning plan before a production licence or a licence to establish and use facilities

for the transportation and utilisation of petroleum expires or is relinquished, or the use of a facility ceases. On the basis of the

decommissioning plan, the MPE makes a decision as to the disposal of the facilities.

The information regarding Equinor’s activities and shares in Equinor’s production licences on the NCS, set forth under the

heading ‘Exploration & Production Norway’ in Section 3.1 of Chapter 3 of the 2023 Annual Report is incorporated herein by reference.

On 1 July 2022, the MPE decided that parts of the Norwegian Security Act would apply to Equinor. This enables Equinor to

receive and handle classified information from the authorities. In 2023, the MTIF and the MPE notified that the Security Act will apply

in its entirety to Equinor as an undertaking controlling infrastructure and engaging in activities which are of vital importance to

fundamental national functions. The Security Act entered into force 1 January 2019 and is designed to protect national security

interests. The National Security Authority supervises undertakings which are covered by the act.

Equinor 2023 Annual Report on Form 20-F 13

Gas sales and transportation from the NCS

Equinor markets gas from the NCS on its own behalf and on the Norwegian State’s behalf. Dry gas is mainly transported through

the Norwegian gas transport system (Gassled) to customers in the UK and mainland Europe, while liquified natural gas is transported

by vessels to worldwide destinations.

The Norwegian gas transport system, consisting of the pipelines and terminals through which licensees on the NCS transport

their gas, is owned by a joint venture called Gassled. The Norwegian Petroleum Act of 29 November 1996 and the pertaining

Petroleum Regulation establish the basis for non- discriminatory third-party access to the Gassled transport system.

The tariffs for the use of capacity in the transport system are determined by applying a formula set out in separate tariff

regulations stipulated by the MPE. The tariffs are paid for booked capacity rather than the volumes actually transported.

The information set forth under the heading ‘

Marketing, Midstream & Processing

’ in Section 3.4 of Chapter 3 of the 2023 Annual

Report is also incorporated herein by reference.

The Norwegian State's participation

In 1985, the Norwegian State established the State’s direct financial interest (SDFI) through which the Norwegian State has direct

participating interests in licences and petroleum facilities on the NCS. As a result, the Norwegian State holds interests in a number of

licences and petroleum facilities in which Equinor also holds interests. Petoro AS, a company wholly owned by the Norwegian State,

was formed in 2001 to manage the SDFI assets.

The Norwegian State has a coordinated ownership strategy aimed at maximising the aggregate value of its ownership interests in

Equinor and the Norwegian State’s oil and gas. This is reflected in the Owner’s Instruction described below, which contains a general

requirement that, Equinor, in its activities on the NCS, take account of these ownership interests in decisions that may affect the

execution of this marketing arrangement.

SDFI oil and gas marketing and sale

Equinor markets and sells the Norwegian State’s oil and gas together with Equinor’s own production. The arrangement has been

implemented by the Norwegian State through a separate instruction (the Owner’s Instruction) adopted by an extraordinary

shareholder meeting in 2001, with the Norwegian State as sole shareholder at the time. The Owner’s Instruction sets out the specific

terms for the marketing and sale of the Norwegian State’s oil and gas.

Equinor is obliged under the Owner’s Instruction to jointly market and sell the Norwegian State’s oil and gas as well as Equinor’s

own oil and gas. The overall objective of the marketing arrangement is to obtain the highest possible total value for Equinor’s oil and

gas and the Norwegian State’s oil and gas, and to ensure an equitable distribution of the total value creation between the Norwegian

State and Equinor.

The Norwegian State may at any time utilise its position as majority shareholder of Equinor to withdraw or amend the Owner’s

Instruction.

US

Petroleum activities in the US are extensively regulated by multiple agencies in the US federal government, and by tribal, state

and local regulation. The US government directly regulates development of hydrocarbons on federal lands, in the US Gulf of Mexico,

and in other offshore areas. Different federal agencies directly regulate portions of the industry, and other general regulations related

to environmental, safety, and physical controls apply to all aspects of the industry. In addition to regulation by the US federal

government, any activities on US tribal lands (indigenous persons’ semi-sovereign territory) are regulated by governments and

agencies in those areas. Significantly for Equinor’s US onshore interests, each individual state has its own regulations of all aspects of

hydrocarbon development within its borders. A recent trend also includes local municipalities adopting their own hydrocarbon

regulations.

In the US, hydrocarbon interests are considered a private property right. In areas owned by the US government, that means that

the government owns the minerals in its capacity as landowner. The federal government, and each tribal and state government,

establishes the terms of its own leases, including the length of time of the lease, the royalty rate, and other terms.

The vast majority of onshore minerals, including hydrocarbons, in every US state in which Equinor has onshore interests, belong

to private individuals.

In order to explore for or develop hydrocarbons, a company must enter into a lease agreement with the applicable governmental

agency for federal, state or tribal land, and for private lands, with each owner of the minerals the company wishes to develop. In each

lease, the lessor retains a royalty interest in the production (if any) from the leased area. The lessee owns a working interest and has

Equinor 2023 Annual Report on Form 20-F 14

the right to explore and produce oil and gas. The lessee incurs all the costs and liabilities but will share only the portion of the revenue

that is net of costs and expenses and not reserved to the lessor through its royalty interest.

Leases typically have a primary term for a specified number of years (from one to ten years) and a conditional secondary term

that is tied to the production life of the properties. If oil and gas is being produced in paying quantities at the end of the primary term,

or the operator satisfies other obligations specified in the agreement, the lease typically continues beyond the primary term (Held by

Production). Leases typically involve paying the lessor both a signing bonus based on the number of leased acres and a royalty

payment based on the production.

Each US state has its own agencies that regulate the development, exploration, and production of oil and gas activities. These

state agencies issue drilling permits and control pipeline transportation within state boundaries. The state agencies particularly

relevant to Equinor’s US onshore activities include: (a) Pennsylvania Department of Environmental Protection’s Office of Oil and Gas

Management, (b) Ohio Department of Natural Resources, Division of Oil and Gas, and (c) West Virginia Department of Environmental

Protection. In addition, some state utility departments handle pipeline transportation within state boundaries, and each state also has

its own department regulating environmental, health, and safety issues arising from oil and gas operations.

Brazil

In Brazil, licences are mainly awarded according to a concession regime or a production sharing regime (the latter specifically for

areas within the pre-salt polygon area or strategic areas) by the Federal Government. All state-owned and private oil companies may

participate in the bidding rounds provided they follow the bidding rules and meet the qualification criteria. The tender protocol issued

for each bidding round contains the draft of the concession agreement or the production sharing agreement that the winners must

adhere to without the possibility of negotiating its terms, i.e., all the agreements signed under a certain bidding round contain the

same general provisions and only differ in the particular items presented in the offers. There is no restriction on foreign participation,

provided that the foreign investor incorporates a company under the Brazilian law for signing the agreement and complies with the

requirements established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).

The current criteria for the evaluation of bidding offers under the concession regime are: (a) signature bonus; and (b) minimum

exploration program. However, in past bidding rounds the participants also had to offer a local content percentage as a firm

commitment. Companies can bid individually or in consortium always observing the qualification criteria for operator and non-

operators.

The concession agreements are signed by ANP on behalf of the Federal Government. Generally, concessions are granted for a

total period of 35 years and typically the exploration phase lasts from two to eight years, while the production phase may last 27 years

from the declaration of commerciality. Concessionaires are entitled to request the extension of each of these phases, subject to ANP

approval.

In bidding rounds involving the production sharing regime, the law grants to the Brazilian government-controlled company

Petroleo Brasileiro S.A. – Petrobras, a right of preference to be the sole operator in the pre-salt fields, with a minimum 30% of

participating interest. If this right is exercised, Petrobras may still participate in the bidding round and present offers for the remaining

70% under the same conditions applicable to other participants. Likewise, in the concession bidding rounds, companies may bid

individually or together with other companies. The winners are required to form a consortium with Pre-Sal Petroleo S.A. (PPSA), a

Brazilian state-owned company, which is responsible for managing the production sharing agreement and selling the production

allocated to the Government under the profit oil. PPSA appoints 50% of the members of the operating committee, including the

chairperson, in addition to certain veto rights and casting vote.

The current criteria for the evaluation of bidding offers under the production sharing regime is the offered percentage of profit oil.

The winner will be the company which offers the highest percentage to the government in accordance with the technical and

economic parameters established for each block in the tender documents under a certain bidding round.

Production sharing contracts are signed by the Ministry of Mines and Energy on behalf of the Federal Government. Generally, the

contracts are valid for a period of 35 years which, by law, cannot be extended. Of the two phases of the contract – exploration and

production – the exploration phase may be extended provided that the total period of the contract remains as 35 years.

In order to perform the exploration and exploitation of oil and gas reserves, companies must obtain an environmental license

granted by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), which, together with ANP, is

responsible for the safety and environmental regulations regarding upstream activities.

HSE regulation relevant for the Norwegian upstream oil and gas activities in Norway

Equinor’s oil and gas operations in Norway must be conducted in compliance with a reasonable standard of care, taking into

consideration the safety of workers, the environment and the economic values of installations and vessels. The Petroleum Act

specifically requires that petroleum operations are carried out in such a manner that a high level of safety is maintained and

developed in step with technological developments. Equinor is also required at all times to have a plan to deal with emergency

Equinor 2023 Annual Report on Form 20-F 15

situations in Equinor’s petroleum operations. During an emergency, the Norwegian Ministry of Labour and Social Inclusion/Norwegian

Ministry of Transport/Norwegian Coastal Administration may decide that other parties should provide the necessary resources, or

otherwise adopt measures to obtain the necessary resources, to deal with the emergency for the licensees’ account.

Liability for pollution damage

The Norwegian Petroleum Act imposes strict liability for pollution damage regardless of fault. Accordingly, as a holder of licences

on the NCS, Equinor is subject to statutory strict liability under the Petroleum Act as a result of pollution caused by spills or discharges

of petroleum from petroleum facilities in any of Equinor’s licences.

A claim against the license holders for compensation relating to pollution damage shall initially be directed to the operator, which

in accordance with the terms of the joint operating agreement, will distribute the claim to the other licensees in accordance with their

participating interest in the licences.

Discharge permits

Emissions and discharges from Norwegian petroleum activities are regulated through several acts, including the Petroleum Act,

the CO

2

 Tax Act, the Sales Tax Act, the Greenhouse Gas Emission Trading Act and the Pollution Control Act. Discharge of oil and

chemicals in relation to exploration, development and production of oil and natural gas are regulated under the Pollution Control Act.

In accordance with the provisions of this Act, an operator must apply for a discharge permit from relevant authorities on behalf of the

licence group in order to discharge any pollutants into water. Further, the Petroleum Act states that burning of gas in flares beyond

what is necessary for safety reasons to ensure normal operations is not permitted without approval from the MPE. All operators on the

NCS have an obligation to, and are responsible, for establishing sufficient procedures for the monitoring and reporting of any

discharge into the sea. The Norwegian Environment Agency, the Norwegian Petroleum Directorate and the Norwegian Oil Industry

Association have established a joint database for reporting emissions to air and discharges to sea from the petroleum activities, the

Environmental Web (EW). All operators on the NCS report emission and discharge data directly into the database.

Regulations on reduction of carbon emissions and CO

2

 storage

Equinor’s operations in Norway are subject to emissions taxes as well as emissions allowances granted for Equinor’s larger

European operations under the emissions trading scheme. The agreed strengthening of the EU’s emission trading scheme is

expected to affect energy and industry installations, which include Equinor’s installations at the NCS. The price of emissions

allowances has increased significantly since the reforms to the EU Emission Trading Scheme in 2018 and is expected to increase

further towards 2030.

The Norwegian Climate Act promotes the implementation of Norway's climate targets as part of the transition to a low-emission

society in Norway in 2050. This act may influence our activities through plans and actions implemented by the state to achieve these

targets. Norway has presented a Climate Plan 2021-2030 with an updated target of 55% reduction in GHG emissions in 2030

compared to 1990- levels. The Climate Plan states that the carbon cost for offshore oil and gas production in Norway is expected to

increase to 2000 NOK/t CO2 towards 2030.

EU directive 2009/31/EC on the geological storage of CO2 is implemented in the Pollution Control regulations, the regulations

related to the Petroleum Act and in a separate Storage regulation adopted under the 1963 Act relating to scientific research and

exploration for and exploitation of subsea natural resources other than petroleum resources. The CO2 capture and storage at

Equinor’s Sleipner and Snøhvit fields are governed by the Petroleum Act and the Pollution Control regulations, and the CO2 storage

at Northern Lights JV DA and Smeaheia projects are governed by the Storage regulations and the Pollution Control regulations.

HSE regulation of upstream oil and gas activities in the US

Equinor’s upstream activities in the US are heavily regulated at multiple levels, including federal, state, and local municipal

regulation. Equinor is subject to those regulations as a part of its activities in the US onshore (including Equinor’s assets in Ohio,

Pennsylvania and West Virginia), and in the US Gulf of Mexico.

The National Environmental Policy Act of 1969 is an umbrella procedural statute that requires federal agencies to consider the

environmental impacts of their actions. Several substantive US federal statutes specifically cover certain potential environmental

effects of hydrocarbon extraction activities. Those include: the Clean Air Act, which regulates air quality and emissions; the Federal

Water Pollution Control Act (commonly known as the Clean Water Act), which regulates water quality and discharges; the Safe

Drinking Water Act, which establishes drinking water standards for tap water and underground injection rules; the Resource

Conservation and Recovery Act of 1976, which regulates hazardous and solid waste management; the Comprehensive Environmental

Response, Compensation and Liability Act of 1980, which addresses remediation of legacy disposal sites and release reporting; and

the Oil Pollution Act, which provides for oil spill prevention and response.

Other US federal statutes are resource-specific. The Endangered Species Act of 1973 protects listed endangered and threatened

species and critical habitat. Other statutes protect certain species, including the Migratory Bird Treaty Act, the Bald and Golden Eagle

Equinor 2023 Annual Report on Form 20-F 16

Protection Act and the Marine Mammal Protection Act of 1972. Other statutes govern natural resource planning and development on

federal lands onshore and on the Outer Continental Shelf (OCS), including: the Mineral Leasing Act; the Outer Continental Shelf

Lands Act; the Federal Land Policy and Management Act of 1976; the Mining Law of 1872; the National Forest Management Act of

1976; the National Park Service Organic Act; the Wild and Scenic Rivers Act; the National Wildlife Refuge System Administration Act

of 1966; the Rivers and Harbors Appropriation Act; and the Coastal Zone Management Act of 1972.

The federal government regulates offshore exploration and production for the OCS, which extends from the edge of state waters

(either 3 or 9 nautical miles from the coast, depending on the state) out to the edge of national jurisdiction, 200 nautical miles from

shore. The Bureau of Ocean Energy Management (BOEM) manages federal OCS leasing programs, conducts resource assessments,

and licences seismic surveys. The Bureau of Safety and Environmental Enforcement (BSEE) regulates all OCS oil and gas drilling

and production. The Office of Natural Resources Revenue (ONRR) collects and disburses rents and royalties from offshore and

onshore federal and Native American lands.

Additional federal statutes cover certain products or wastes, and focus on human health and safety: the Toxic Substances

Control Act regulates new and existing chemicals and products that contain these chemicals; the Hazardous Materials Transportation

Act regulates transportation of hazardous materials; the Occupational Safety and Health Act of 1970 regulates hazards in the

workplace; the Emergency Planning and Community Right-to-Know Act of 1986 provides emergency planning and notification for

hazardous and toxic chemicals.

The federal and state governments share authority to administer some federal environmental programs (e.g., the Clean Air Act

and Clean Water Act). States also have their own, sometimes more stringent, environmental laws. Counties, cities and other local

government entities may have their own requirements as well.

Equinor continually monitors regulatory and legislative changes at all levels and engages in the stakeholder process through

trade associations and direct comments to suggested regulatory and legislative regimes, to ensure that its operations remain in

compliance with all applicable laws and regulations. In particular, BSEE drilling and production regulations were extensively revised in

response to the 2010 Deepwater Horizon blowout and oil spill. The revised regulatory regime includes requirements for enhanced well

design, improved blowout preventer design, testing and maintenance, and an increased number of trained inspectors. The Biden

Administration continues to review and revise these regulations, and Equinor is engaged with relevant governmental and industry

stakeholders to ensure that Equinor’s operations remain in compliance.

HSE regulation of upstream oil and gas activities in Brazil

Equinor’s oil and gas operations in Brazil must be conducted in compliance with a reasonable standard of care, taking into

consideration the safety and health of workers and the environment. The Brazilian Petroleum Law (Law No. 9,478/97) describes the

government’s policy objectives for the rational use of the country’s energy resources, including the protection of the environment. In

addition to the Brazilian Petroleum Law, Equinor is also subject to many other laws and regulations issued by different authorities,

including ANP, IBAMA, Federal Environmental Council (CONAMA) and Brazilian Navy. All those authorities have the power to impose

fines in case of non-compliance with the respective rules. The concession and production sharing contracts also impose obligations

on operators and consortium members, who are jointly and severally liable. They must, at their own account and risk, assume and

fully respond to all losses and damages caused directly or indirectly by the applicable consortium’s operations and their performance,

irrespective of fault, to the ANP, the Federal Government and third parties, without prejudice to any recourse rights which may have

been agreed separately among the consortium members (such as in a joint operating agreement).

The exploration, drilling and production of oil and gas depend on environmental licences which define the conditions for the

implementation of the project and compliance measures to mitigate and control environment impact. Equinor is subject to fines and

even licence suspension and/or cancellation in case of non-compliance with such conditions.

In Brazil, Equinor is also required to have an emergency response system as per ANP Resolution No. 882/2022 to deal with

emergency situations in its petroleum operations, as well as an oil spill response plan in accordance to CONAMA Resolution No.

398/2008, for each asset to minimise the environmental impact of any environmental unexpected situation that may generate spill of

oil or chemical to sea.

Discharge permits

Discharges from Brazilian petroleum activities are regulated through several acts, including the CONAMA Resolution No.

393/2007 for produced water, CONAMA Resolution No. 357/2005 and CONAMA Resolution No. 430/2011 for effluents (sewage, etc)

and IBAMA technical instructions for drilling waste. According to Environmental Ministry Ordinance No. 422/2011, the discharge of

chemicals in connection with exploration, development and production of oil and natural gas is assessed as part of the environmental

permitting process and the operator must apply for any discharge permit from relevant authorities on behalf of the license group in

order to discharge any pollutants into the water.

Regulations on reduction of carbon emissions

Equinor 2023 Annual Report on Form 20-F 17

Although Equinor’s operations in Brazil are not subject to emissions taxes (CO

2

 limit) yet, there are initiatives within the Brazilian

congress for the establishment of a carbon market. At this point it is unclear if and when these initiatives will be turned into law.

The CONAMA Regulation No. 382/06 regulates air emissions limits for pollutant gases (e.g. NOx) from all fixed sources that have

total power consumption higher than 100MW.

Gas flares must be authorised by the ANP under ANP Resolution No. 806/2020, which also sets out cases in which ANP

authorisation is not necessary.

The Brazilian government signed the Paris Agreement in 2015. During COP26, Brazil updated its ambition to reduce its

greenhouse gas emissions by 37% until 2025 and 50% until 2030, compared to 2005 levels. Because of the desire to boost the

economy and an expected growing energy demand, the focus on emissions reduction is on improved control of forests and land use

and for that Brazil continue to adhere to the Forest for Deal agreement, committing to take actions to reduce illegal deforestation until

2030. The country also adheres to the Global Methane Pledge.

Regulatory framework for renewable energy operations

Equinor’s renewables positions currently mainly consist of offshore wind farms in operation and development in the UK, the state

of New York and Poland. In these jurisdictions the legislation is structured around a lease where permission to develop is granted

following a series of approvals relating largely to environmental and social impact assessments. The government separately auctions

a subsidized power purchase price either through renewable offtake certificates or contracts for difference. In both cases, Equinor and

its partners take the risk for developing, constructing and operating the wind farms within a fixed timeframe.

Other

Equinor entered into agreements with the National Iranian Oil Company (NIOC), namely, a Development Service Contract for

South Pars Gas Phases 6, 7 & 8 (offshore part), an Exploration Service Contract for the Anaran Block and an Exploration Service

Contract for the Khorramabad Block, which are located in Iran. Equinor’s operational obligations under these agreements have

terminated and the licences have been abandoned. The cost recovery programme for these contracts was completed in 2012, except

for the recovery of tax and obligations to the Social Security Organization (SSO). From 2013 to November 2018, after closing

Equinor’s office in Iran, Equinor’s activity was focused on a final settlement with the Iranian tax and SSO authorities relating to the

above-mentioned agreements.

In a letter from the US State Department of 1 November 2010, Equinor was informed that it was not considered to be a company

of concern based on its previous Iran-related activities.

Equinor has an intention to settle historic obligations in Iran while remaining compliant with applicable sanctions and trade

restrictions against Iran. Since November 2018 Equinor has not conducted any activity in Iran, nor has it been able to resolve tax

claims from the Iranian authorities.

No payments were made to Iranian authorities during 2023.

Taxation of Equinor

Norway

Equinor’s profits, both from offshore oil and natural gas activities and from onshore activities, are subject to Norwegian corporate

income tax. In addition, a special petroleum tax is levied on profits from petroleum production and pipeline transportation on the NCS.

In June 2022 the parliament enacted a cash-flow based tax system for the special petroleum tax with effect from 1 January 2022.

After the reform, the Norwegian petroleum income is taxable at a tax rate of 71.8% after deducting a calculated 22% corporate tax.

The corporate tax is deductible in the basis for the special petroleum tax, resulting in a 78% marginal tax rate. For further information,

see note 11 Income taxes to the Consolidated financial statements.

Investment costs in the ordinary tax base (22%) will continue to be depreciated over six years. In the special tax base,

investments are written off immediately in line with the cash-flow based tax system. Projects covered by the temporary rules

introduced in 2020 have had a tax uplift of 12.4% in 2023. The temporary rules apply to investments covered by field or infrastructure

plans (PDOs and PIOs) submitted to the MPE after 12 May 2020 and before 1 January 2023 and approved before 1 January 2024.

The temporary rules will continue to apply until (and including) the year of planned production or project start-up according to the

approved plans.

Equinor’s international petroleum activities are subject to tax pursuant to local legislation.

US

Equinor 2023 Annual Report on Form 20-F 18

Equinor’s operations in the US are subject generally to corporate income, severance and production, ad valorem and transaction

taxes levied by the federal, state and local tax authorities, and to royalties payable to federal, state and local authorities and, in some

cases, private landowners. The federal corporate income tax rate in the US is 21%, and there is an alternative 15% minimum tax on

corporate book income for corporations with profits over USD 1 billion. US companies are also subject to the Base Anti-abuse Tax

(“BEAT”) which imposes tax at 10% until 2026 and 12.5% thereafter on payments to foreign affiliates of US companies if those

payments exceed a given threshold of total tax-deductible expenditures.

Brazil

Corporate income tax and social contribution are levied on taxable net income at a combined rate of 34%. A simplified tax regime

with a lower effective tax rate is available for legal entities with gross revenues below a threshold of 78 million Brazilian reais per year.

In addition, there are several indirect taxes, but indirect tax rate on exports is set to zero.

The concessionary tax regime in Brazil usually includes government takes such as a 10% royalty, and special participation tax

that varies based on time, location and production between 10% and 40%, using a reference price that is established by the Brazilian

petroleum regulator (ANP). The Production Sharing Regime in Brazil usually includes a 15% royalty, an annual 80% cost recovery

ceiling, and a biddable government profit share.

In December 2023, the Brazilian Congress approved wide-ranging tax legislation which aims to simplify the indirect tax system

through the introduction of a multi-tiered value added tax (VAT) system, whereby VAT would be levied with a federal rate and a state

and/or municipality rate. The states or municipalities would individually set their respective rates and administer the tax for the local

element of the VAT. The VAT will be phased into effect over the next seven years. The new law also includes an excise tax on the

extraction, sale or commercialization of goods and services with a “harmful effect on health or environment” of up to 1% of the market

value of extracted production. The specific rate of the excise tax will be set with a complimentary law which must be passed within six

months of the enactment, and so is expected by the end of June 2024. This excise tax would increase operating costs for Equinor in

Brazil.

The new tax law in Brazil also seeks to preserve suspensions or exemptions from certain indirect taxes for importation of capital

goods into Brazil. The details of these tax incentives will be contained in the Complimentary Law described above.

Finally, there is a proposal package for direct taxes as well, which would reduce the corporate tax rate, while also introducing a

withholding tax on dividends paid by Brazilian incorporated entities. The direct tax legislation is expected to be considered by the

Brazilian Congress later in 2024.

UK

The UK government introduced a 25% Energy Profits Levy (EPL) in May 2022, which was increased to 35% from January 2023.

The levy is charged on profits from oil and gas operations in the UK or on the UK Continental Shelf and is in addition to existing profit-

based taxes on the sector. The EPL increased the rate of tax on oil and gas company profits to 75% from January 2023.

In addition, the UK government also introduced the Electricity Generator Levy (EGL) which took effect from 1 January 2023. The

EGL imposes a tax of 45% on exceptional receipts generated from the production of wholesale electricity which is sold at an average

price in excess of £75 per MWh.

Both the EPL and EGL are scheduled to expire on 31 March 2028.

Disclosures regarding oil and gas operations

The 2023 Oil and Gas Reserves Report is incorporated herein by reference. See also notes 5 Segments and 7 Total revenues

and other income to the Consolidated financial statements.

The information set forth under the headings “Operational data”, “Sales prices” and “Sales volumes” in Section 2.1 of Chapter 2

on pages 47 – 49 and “Proved oil and gas reserves” in Section 2.1 of Chapter 2 on pages 50 – 54 of the 2023 Annual Report is also

incorporated herein by reference.

Supplementary oil and gas information pursuant to FASB Topic 932

The following information is reported pursuant to FASB Topic 932.

Equinor 2023 Annual Report on Form 20-F 19

Capitalised cost related to oil and gas producing activities

Consolidated companies

At 31 December

(in USD million)

2023

2022

2021

Unproved properties

5,022

5,917

7,077

Proved properties, wells, plants and other equipment

183,316

181,189

193,918

Total capitalised cost

188,338

187,106

200,994

Accumulated depreciation, impairment and amortisation

(132,902)

(133,584)

(139,890)

Net capitalised cost

55,436

53,523

61,104

Net capitalised cost related to equity accounted investments as of 31 December 2023 was USD 0 million, USD 463 million in 2022

and USD 900 million in 2021. The reported figures are based on capitalised costs within the upstream segments in Equinor, in line

with the description below for result of operations for oil and gas producing activities.

Expenditures incurred in oil and gas property acquisition, exploration and development activities

These expenditures include both amounts capitalised and expensed.

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2023

Exploration expenditures

662

16

35

310

253

1,276

Development costs

4,864

470

509

1,084

1,279

8,206

Acquired proved properties

0

1,271

0

0

0

1,271

Acquired unproved properties

352

5

0

6

18

381

Total

5,878

1,762

544

1,400

1,550

11,134

Full year 2022

Exploration expenditures

494

27

57

150

360

1,088

Development costs

4,483

320

379

712

965

6,859

Acquired proved properties

110

226

38

0

0

374

Acquired unproved properties

6

0

0

0

0

6

Total

5,093

573

474

862

1,325

8,327

Full year 2021

Exploration expenditures

522

61

5

139

299

1,026

Development costs

4,732

322

256

605

977

6,892

Acquired proved properties

3

5

0

0

0

8

Acquired unproved properties

6

9

1

24

(3)

37

Total

5,263

397

262

768

1,273

7,963

Equinor 2023 Annual Report on Form 20-F 20

Expenditures incurred in exploration and development activities related to equity accounted investments was USD 0 million in 2023,

USD 155 million in 2022 and USD 233 million in 2021.

Results of operation for oil and gas producing activities

As required by Topic 932, the revenues and expenses included in the following table reflect only those relating to the oil and gas

producing operations of Equinor.

The results of operations for oil and gas producing activities are included in the three upstream reporting segments Exploration &

Production Norway (E&P Norway), Exploration & Production International (E&P International) and Exploration & Production USA (E&P

USA) as presented in note 5 Segments

to the Consolidated financial statements. Production cost is based on operating expenses

related to production of oil and gas. From the operating expenses certain expenses such as; transportation costs, accruals for

over/underlift position and royalty payments costs are excluded. These expenses and mainly upstream business administration are

included as other expenses in the tables below. Other revenues mainly consist of gains and losses from sales of oil and gas interests

and gains and losses from commodity-based derivatives within the upstream segments.

Income tax expense is calculated on the basis of statutory tax rates adjusted for uplift and tax credits. No deductions are made for

interest or other elements not included in the table below.

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2023

Sales

62

107

533

127

92

921

Transfers

37,892

1,121

2,242

3,954

2,646

47,855

Other revenues

387

129

57

238

76

887

Total revenues

38,341

1,357

2,832

4,319

2,814

49,663

Exploration expenses

(476)

(20)

(37)

(322)

30

(825)

Production costs

(2,898)

(250)

(482)

(494)

(593)

(4,717)

Depreciation, amortisation and net impairment losses

(5,017)

(840)

(567)

(1,489)

(1,026)

(8,939)

Other expenses

(862)

(456)

19

(691)

(446)

(2,436)

Total costs

(9,253)

(1,566)

(1,067)

(2,996)

(2,035)

(16,917)

Results of operations before tax

29,088

(209)

1,765

1,323

779

32,746

Tax expense

(22,543)

34

(961)

(358)

(106)

(23,934)

Results of operations

6,545

(175)

804

965

673

8,812

Net income/(loss) from equity accounted investments

0

(13)

0

0

41

28

Equinor 2023 Annual Report on Form 20-F 21

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2022

Sales

155

554

615

166

88

1,578

Transfers

74,468

1,252

3,019

5,168

1,853

85,760

Other revenues

1,308

(203)

(1)

213

57

1,374

Total revenues

75,931

1,603

3,633

5,547

1,998

88,712

Exploration expenses

(366)

(249)

(69)

(220)

(320)

(1,224)

Production costs

(2,916)

(202)

(470)

(399)

(518)

(4,505)

Depreciation, amortisation and net impairment losses

(4,167)

(623)

(530)

(361)

(579)

(6,260)

Other expenses

(866)

(201)

3

(533)

(413)

(2,010)

Total costs

(8,315)

(1,275)

(1,066)

(1,513)

(1,830)

(13,999)

Results of operations before tax

67,616

328

2,567

4,034

168

74,713

Tax expense

(52,070)

(152)

(1,043)

2,458

361

(50,447)

Results of operations

15,546

176

1,524

6,492

529

24,266

Net income/(loss) from equity accounted investments

0

52

0

0

120

172

Equinor 2023 Annual Report on Form 20-F 22

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2021

Sales

97

476

638

207

16

1,434

Transfers

38,578

960

2,021

3,712

1,249

46,520

Other revenues

711

(14)

0

221

14

932

Total revenues

39,386

1,422

2,659

4,140

1,279

48,886

Exploration expenses

(363)

(108)

23

(211)

(362)

(1,021)

Production costs

(2,600)

(196)

(497)

(397)

(378)

(4,068)

Depreciation, amortisation and net impairment losses

(4,900)

(2,462)

(444)

(1,734)

(416)

(9,956)

Other expenses

(1,052)

(140)

53

(674)

(292)

(2,105)

Total costs

(8,915)

(2,906)

(865)

(3,016)

(1,448)

(17,150)

Results of operations before tax

30,471

(1,484)

1,794

1,124

(169)

31,736

Tax expense

(22,887)

835

(652)

(14)

(201)

(22,919)

Results of operations

7,585

(649)

1,142

1,110

(370)

8,817

Net income/(loss) from equity accounted investments

0

176

0

0

39

215

Average production cost in USD per boe based on entitlement

volumes (consolidated)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

2023

6

16

12

4

15

7

2022

6

13

12

4

21

7

2021

5

11

12

3

19

6

Production cost per boe is calculated as the production costs in the result of operations table, divided by the produced entitlement

volumes (mboe) for the corresponding period.

Equinor 2023 Annual Report on Form 20-F 23

C. Organizational Structure

Exhibit 8 to this 2023 Form 20-F is incorporated herein by reference. The table within Exhibit 8 shows significant subsidiaries and

significant equity accounted companies within the Equinor group as of 31 December 2023.

D. Property, Plant and Equipment

Equinor has interests in real estate in many countries throughout the world, including as part of certain developments and

projects of Equinor or in which Equinor participates.

Equinor’s three largest office buildings are (i) its head office located at Forusbeen 50, Stavanger, Norway which comprises

approximately 135,000 square meters of office space, (ii) its office building in Sandslivegen 90, Bergen, Norway which comprises

approximately 99,488 square meters of office space, and (iii) its office building located at Fornebu on the outskirts of Oslo which

comprises approximately 65,500 square meters. All three office buildings are leased by Equinor. Under a new lease agreement

entered into in 2022 for the office building at Fornebu, Equinor has reduced its area to 44,500 square meters with effect from around

the start of year 2024. The office building in Bergen is owned by Sandsliveien 90 AS, a subsidiary of Equinor Pensjon.

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

●

 Investments in Section 2.2 of Chapter 2 on page 98;

●

 Exploration & Production Norway in Section 3.1 of Chapter 3 on pages 124 – 129;

●

 Exploration & Production International in Section 3.2 of Chapter 3 on pages 130 – 136;

●

 Exploration & Production USA in Section 3.3 of Chapter 3 on pages 137 – 141;

●

 Marketing, Midstream & Processing in Section 3.4 of Chapter 3 on pages 142 – 147; and

●

 Renewables in Section 3.5 of Chapter 3 on pages 148 – 152.

See also notes 12 Property, plant and equipment and 25 Leases to the Consolidated financial statements.

Production per field

The following tables show the regional production by field.

Equinor 2023 Annual Report on Form 20-F 24

E&P Norway - Equinor operated fields, average daily entitlement production

Geographical area

Equinor's equity

interest in %

On

stream 

Licence expiry

date

Average

production in

2023 mboe/day

Field

Johan Sverdrup

The North Sea

42.63

2019

2036-2037

319

Troll Phase 1 (Gas)

The North Sea

30.58

1996

2030

198

Oseberg 

The North Sea

49.30

1988

2031

94

Gullfaks

The North Sea

51.00

1986

2036

76

Visund

The North Sea

53.20

1999

2034

66

Aasta Hansteen

The Norwegian Sea

51.00

2018

2041

59

Åsgard

The Norwegian Sea

35.01

1)

1999

2027

44

Snøhvit

The Barents Sea

36.79

2007

2035

44

Tyrihans

The Norwegian Sea

58.84

2009

2029

43

Snorre 

The North Sea

33.28

1992

2040

32

Gina Krog

The North Sea

58.70

2017

2032

31

Martin Linge

The North Sea

51.00

2021

2027

29

Kvitebjørn

The North Sea

39.55

2004

2031

23

Statfjord Unit

The North Sea

64.10

2)

1979

2026

21

Sleipner West

The North Sea

58.35

1996

2028

20

Fram 

The North Sea

45.00

2003

2040

16

Grane

The North Sea

36.61

2003

2030

16

Gudrun

The North Sea

36.00

2014

2032

15

Troll Phase 2 (Oil)

The North Sea

30.58

1995

2030

13

Mikkel 

The Norwegian Sea

43.97

2003

2028

11

Heidrun 

The Norwegian Sea

13.04

1995

2024-2025

10

Tordis

The North Sea

41.50

1994

2040

8

Alve

The Norwegian Sea

53.00

2009

2029

8

Trestakk

The Norwegian Sea

59.10

2019

2029

8

Vigdis

The North Sea

41.50

1997

2040

7

Norne

The Norwegian Sea

39.10

1997

2026

7

Kristin

The Norwegian Sea

54.82

2005

2027-2033

7

Hyme

The Norwegian Sea

42.50

2013

2029

6

Valemon

The North Sea

66.78

2015

2031

6

Njord

The Norwegian Sea

27.50

1997

2034

4

Sleipner East

The North Sea

59.60

1993

2028

4

Statfjord North

The North Sea

45.00

2)

1995

2026

4

Morvin

The Norwegian Sea

64.00

2010

2027

3

Breidablikk

The North Sea

39.00

2023

2030

2

Gungne 

The North Sea

62.00

1996

2028

2

Utgard

The North Sea

38.44

2)

2019

2028

2

Statfjord East

The North Sea

43.25

2)

1994

2026-2040

2

Urd

The Norwegian Sea

63.95

2005

2026

1

Sigyn

The North Sea

60.00

2002

2035

1

Sindre

The North Sea

74.66

2017

2026-2034

0

Fram H Nord

The North Sea

49.20

2014

2024-2035

0

Sygna

The North Sea

43.43

2)

2000

2026-2040

0

Gimle

The North Sea

74.66

2006

2026-2034

0

Heimdal

The North Sea

29.44

1985

2023

0

Byrding

The North Sea

70.00

2017

2024-2035

0

Tune

The North Sea

50.00

2002

2025-2032

0

Total Equinor operated fields

1,261

Equinor 2023 Annual Report on Form 20-F 25

1) Åsgard changed ownership January 1st, 2023 from 34,57% to 35,01%

2) The Statfjord and Utgard fields in the North Sea span the boundary between the Norwegian and UK continental shelves. The volumes

pertain to Equinor’s operating interest in Statfjord and Utgard on the NCS. For the volumes pertaining to Equinor’s operating interest in

Statfjord and Utgard on the UKCS, please see Exploration & Production International in Section 3.1.2 of Chapter 3.

E&P Norway - Partner operated fields, average daily entitlement production

Geographical area

Equinor's equity

interest in %

Operator 

On

stream 

Licence expiry

date

Average

production in

2023 mboe/day

Field

Skarv

The Norwegian Sea

36.17

Aker BP ASA

2013

2029-2036

54

Ormen Lange

The Norwegian Sea

25.35

A/S Norske Shell

2007

2040-2041

30

Ivar Aasen

The North Sea

41.47

Aker BP ASA

2016

2029-2036

14

Goliat

The Barents Sea

35.00

Vår Energi ASA

2016

2042

9

Ærfugl Nord

The Norwegian Sea

30.00

Aker BP ASA

2021

2033

4

Marulk

The Norwegian Sea

33.00

Vår Energi ASA

2012

2030

2

Enoch

The North Sea

11.78

Repsol Sinopec North Sea Ltd.

2007

2024

0

Total partner operated fields

114

Total E&P Norway including share of equity accounted production

0

Equinor 2023 Annual Report on Form 20-F 26

E&P International - Average daily equity production

Field

Country

Equinor's

equity

interest in %

Operator 

On

stream 

Licence

expiry date

Average daily

equity

production in

2023 mboe/day

Americas (excluding US)

115

Peregrino

Brazil

60.00

 Equinor Brasil Energia Ltda. 

2011

2040

53

Roncador

Brazil

25.00

 Petróleo Brasileiro S.A. 

1999

2052

33

Bandurria Sur

Argentina

30.00

Yacimientos Petrolíferos Fiscales S.A.

2015

2050

13

Hebron

Canada

9.01

 ExxonMobil Canada Properties 

2017

HPB

1)

11

Hibernia/Hibernia Southern

Extension

2)

Canada

Varies

 Hibernia Management and Development

Company Ltd. 

1997

HPB

1)

4

Bajo del Toro

Argentina

50.00

Yacimientos Petrolíferos Fiscales S.A.

2022

2055

1

Africa

175

Block 17

Angola

22.16

TotalEnergies E&P Angola S.A.

2001

2045

76

In Salah

Algeria

31.85

Sonatrach

3)

2004

2027

30

Eni In Salah Limited

Equinor In Salah AS

Agbami

7)

Nigeria

20.21

Star Deep Water Petroleum Limited 

(an affiliate of Chevron in Nigeria)

2008

2042

20

Block 15

Angola

12.00

Esso Exploration Angola Block 15 Limited

2004

2032

17

In Amenas

Algeria

45.90

Sonatrach

3)

2006

2027

14

Eni In Amenas Limited

Equinor In Amenas AS

Block 31

Angola

13.33

BP Exploration (Angola) Ltd

2012

2031

9

Murzuq

Libya

10.00

Akakus Oil Operations

2003

2037

8

Eurasia

55

ACG

8)

Azerbaijan

7.27

BP Exploration (Caspian Sea) Limited

1997

2049

26

Mariner

UK

65.11

 Equinor UK Limited 

2019

HBP

1)

13

Buzzard

9)

UK

29.89

CNOOC Petroleum Europe Limited

2007

2046

7

Corrib

4)

Ireland

37.50

 Vermilion Exploration and Production

Ireland Limited 

2015

2031

2

Utgard

5)

UK

38.00

 Equinor Energy AS 

2019

HBP

1)

2

Statfjord Unit

5)

UK

14.53

 Equinor Energy AS 

1979

HBP

1)

4

Barnacle

6)

UK

100.00

 Equinor UK Limited 

2019

HBP

1)

0

Total E&P International

345

1)

Held by Production (HBP): A leasehold interest that is perpetuated beyond its primary term as long as there is production in paying

quantities from well(s) on the lease or lease(s) pooled therewith. 

2)

Equinor's equity interests are 5.0% in Hibernia and 9.26% in Hibernia Southern Extension.

3)

The complete name for Sonatrach is Société nationale de transport et de commercialisation d’hydrocarbures.

4)

In March 2023, the transaction to sell the company’s non-operated equity position in the Corrib gas project in Ireland closed after receiving

the necessary regulatory approvals. For more information, see note 6 Acquistions and disposals to the Consolidated financial statements.

5)

The Utgard and Statfjord Unit fields span the boundary between the Norwegian and UK continental shelves. In this table we report only

volumes pertaining to the Equinor share in UKCS.

6) 

Actual production for Barnacle was 0.4 mboe/day.

7)

In November 2023, Equinor announced its intention to exit its business activities in Nigeria.

8)

In December 2023, Equinor and SOCAR signed an agreement whereby Equinor will divest and transfer all its remaining assets in

Azerbaijan to SOCAR. 

9)

Production started in July 2023 following Equinor’s acquisition of Suncor Energy UK Limited.

Equinor 2023 Annual Report on Form 20-F 27

E&P USD - Average daily equity production

Field

Country

Equinor's equity

interest in %

Operator 

On

stream 

Licence

expiry date

Average daily

equity

production in

2023 mboe/day

Appalachian (APB)

1)

US

Varies

2)

Equinor/others

3)

2008

HBP

5)

 223 

Caesar Tonga

US

46.00

 Anadarko U.S. Offshore LLC 

2012

HBP

5)

 37 

Tahiti

US

25.00

 Chevron USA Inc. 

2009

HBP

5)

 23 

Vito

US

36.89

Shell Offshore Inc.

2023

HBP

5)

 22 

Julia

US

50.00

 ExxonMobil Corporation 

2016

HBP

5)

 14 

St. Malo

US

21.50

 Chevron USA Inc. 

2014

HBP

5)

 14 

Jack

US

25.00

 Chevron USA Inc. 

2014

HBP

5)

 12 

Big Foot

US

27.50

 Chevron USA Inc. 

2018

HBP

5)

 9 

Stampede

US

25.00

 Hess Corporation 

2018

HBP

5)

 7 

Titan

US

100.00

 Equinor USA E&P Inc. 

2018

HBP

5)

 2 

Heidelberg

4)

US

12.00

 Anadarko U.S. Offshore LLC 

2016

HBP

5)

 0 

Total E&P USA

 363 

1)

Appalachian basin contains Marcellus and Utica formations. 

2)

Equinor’s actual equity interest varies depending on wells and area.

3)

Operators are Equinor USA Onshore Properties Inc, Chesapeake Operating LLC, Southwestern Production Company, Chief Oil &

Gas LLC, and several other operators. 

4)

Actual production for Heidelberg was 0.4 mboe/day.

5)

Held by Production (HBP): A leasehold interest that is perpetuated beyond its primary term as long as there is production in paying

quantities from well(s) on the lease(s) pooled therewith.

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The discussion does not address certain items in respect of 2021. A discussion of such items may be found in the Annual Report

on Form 20-F for the year ended 31 December 2022, filed with the SEC 23 March 2023.

A. Operating Results

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

●

 Group financial performance in Section 2.1. of Chapter 2 on pages 39 – 46;

●

 Group outlook in Section 2.1 of Chapter 2 on page 46;

●

 Contextual Introduction, Management approach and Performance Disclosure in Section 2.2. of Chapter 2 on pages

91 – 98;

●

 Return on average capital employed (ROACE), Relative ROACE (peer group rank) and Relative TSR in Section

2.2. of Chapter 2 on page 99;

●

 Net zero pathway in Section 2.2 of Chapter 2 on pages 110 – 112; and

●

 Reporting Segment Performance in Chapter 3 on page 123.

See also the information set forth under the heading “Applicable Laws and Regulations” in “Item 4―Information on the

Company―B. Business Overview” of this 2023 Form 20-F, and note 3 Consequences of initiatives to limit climate changes to the

Consolidated financial statements.

Financial Review

The following tables show the financial performance by reporting segment.

Equinor 2023 Annual Report on Form 20-F 28

E&P Norway - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

38,340

75,930

(50%)

Operating, selling, general and administrative expenses

(3,759)

(3,782)

(1%)

Depreciation, amortisation and net impairment losses

(5,017)

(4,167)

20%

Exploration expenses

(476)

(366)

30%

Net operating income/(loss)

29,087

67,614

(57%)

For the year ended 31 December

Operational information

2023

2022

Change

E&P Norway entitlement liquid and gas production (mboe/day)

1,374

1,387

(1%)

E&P Norway entitlement liquids production (mboe/day)

645

605

7%

E&P Norway entitlement gas production (mboe/day)

729

782

(7%)

Average liquids price (USD/bbl)

78.6

97.5

(19%)

Average internal gas price (USD/MMBtu)

12.20

31.22

(61%)

Financial Performance

Equinor revenues continued to remain strong for 2023 with production on par with 2022, even though lower prices for gas and liquids

during the year led to a decrease in net operating income and revenues compared to 2022. Other income was impacted by gain from

sale of ownership shares, with USD 222 million in 2023 for the Statfjord area compared to USD 730 million for Martin Linge and

Ekofisk in 2022. In addition, other income in 2022 included a significant positive effect on embedded derivatives from higher short

term gas prices. 

Increased operation and maintenance costs, as well as environmental expenses led to increased operating, selling, general and

administrative expenses from 2022 to 2023. The development in interest rates and increased cost estimates impacted the Gassled

removal cost negatively, when comparing 2023 to 2022. In contrast, falling energy prices, led to decreased transportation and

electricity cost partially offsetting the increases. Exchange rate development in the NOK/USD during the year 2023 offset the cost

increases and their visibility in the reported numbers. 

The NOK/USD exchange rate development in the year and the sale of ownership shares in Martin Linge and Ekofisk in 2022 reduced

depreciation, amortisation and net impairment losses in 2023. However, depreciation, amortisation and net impairment losses were

negatively impacted by a USD 588 million impairment of a North Sea asset in 2023 as opposed to net impairment reversals of USD

814 million in 2022 driving an overall increase year-on-year. 

Increased exploration drilling activity levels (28 wells this year compared to 21 wells last year) and increased seismic and field

development led to an increase in exploration expenses in 2023 compared to 2022. An increased capitalisation rate partially offset the

increase.

Additions to PP&E, intangibles and equity accounted investments increased mainly due to increased activity in the sanctioned projects

portfolio both for Equinor- and partner operated projects. Decreased investments on the Johan Sverdrup field following completion of

phase 2 partially offset this.

Equinor 2023 Annual Report on Form 20-F 29

E&P International - Financial information

For the year ended 31 December

(in USD million)

2023

2022

23-22 change

Total revenues and other income

7,032

7,431

(5%)

Purchases [net of inventory]

(70)

(116)

(40%)

Operating, selling, general and administrative expenses

(2,176)

(1,698)

28%

Depreciation, amortisation and net impairment losses

(2,433)

(1,731)

41%

Exploration expenses

(20)

(638)

(97%)

Net operating income/(loss)

2,332

3,248

(28%)

For the year ended 31 December

Operational Information

2023

2022

23-22 change

E&P International equity liquid and gas production (mboe/day)

345

328

5%

E&P International entitlement liquid and gas production (mboe/day)

266

235

13%

Production sharing agreements (PSA) effects (mboe/day)

79

94

(15%)

Average liquids price (USD/bbl)

72.6

92.0

(21%)

Financial Performance

The growth in entitlement production across E&P international contributed to strong financial results, despite the impact of lower prices

in 2023. The decrease in operating income and revenues was mainly due to the reduction in liquid commodity prices, as liquids

constitute 90% of E&P International’s entitlement production. The sharp decline in gas prices further contributed to the decrease in

revenues.

Increased operation and maintenance expenses associated with turnarounds across various fields led to increased operating

expenses from 2022 to 2023. Increased royalties and production fees linked to increased production at the Peregrino field also

contributed to the overall rise in costs. This was partially offset by decreased royalties at Roncador due to lower prices in 2023.

The inclusion of Buzzard following the Suncor Energy UK Limited acquisition, increased production from Peregrino in Brazil and

Bandurria Sur in Argentina, in addition to several new investments in producing fields resulted in an overall increase in depreciation

from 2022 to 2023. 

Net impairment related to property, plant, and equipment increased from USD 286 million in 2022 to USD 310 million in 2023. In 2023,

the impairment was mainly related to the planned exit from Azerbaijan. In 2022, the main contributors were impairments related to

Equinor’s exit from Russia, partially offset by an impairment reversal of an asset in the Europe and Asia area, supported by a slight

increase in reserves estimates.

Well costs related to Karabagh in Azerbaijan, and drilling costs in Canada expensed in 2022 were the main drivers for the reduction in

exploration expenses from 2022 to 2023. The capitalisation of previously expensed exploration wells in Brazil also positively impacted

the 2023 numbers. 

The Suncor UK acquisition in 2023 further influenced the movement in the additions to PP&E, intangibles and equity accounted

investments.

Equinor 2023 Annual Report on Form 20-F 30

E&P USA - Financial information

For the year ended 31 December

(in USD million)

2023

2022

23-22 change

Total revenues and other income

4,319

5,523

(22%)

Operating, selling, general and administrative expenses

(1,178)

(938)

26%

Depreciation, amortisation and net impairment losses

(1,489)

(361)

>100%

Exploration expenses

(299)

(201)

49%

Net operating income/(loss)

1,353

4,022

(66%)

For the year ended 31 December

Operational information

2023

2022

23-22 change

E&P USA equity liquids and gas production (mboe/day)

363

324

12%

E&P USA entitlement liquid and gas production (mboe/day)

314

279

12%

Royalties

49

44

10%

Average liquids price (USD/bbl)

64.4

81.0

(20%)

Average internal gas price (USD/mmbtu)

1.77

5.55

(68%)

Financial Performance

Increased entitlement production due to Vito field start-up, Caesar Tonga flowline installation, and increased well count partially offset

the impact of lower realised liquids and gas prices which were the main drivers for the decrease in revenues in 2023 compared to

2022.

Operating expenses increased due the start-up of the Vito platform, combined with increased maintenance activity in the Appalachian

basin contributing to increased operations and maintenance expenditure.

Depreciation increased in 2023 due to additional production, decreased impairment reversals, and additional capital expenditures both

offshore and onshore. This increase was partially offset by improved reserves. 

Impairment reversals related to property, plant, and equipment amounted to USD 290 million in 2023 which were primarily driven by

improved expected reserves due to additional well opportunities. In 2022, net impairments reversals amounted to USD 1,071 million

mainly driven by increased short-term prices.

Increased exploration expenses were driven by drilling activity for four exploration prospects in the Gulf of Mexico. The four prospects

were dry or non-commercial and were expensed accordingly, resulting in a significant increase in exploration cost. 

Investments in 2023 in the recently sanctioned Sparta project, St. Malo Water Injection, and Appalachian Basin Partner Operated

assets drove the increase in additions to PPE, intangibles and equity accounted investments from 2022.

Equinor 2023 Annual Report on Form 20-F 31

MMP - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

105,908

148,105

(28%)

Purchases [net of inventory]

(95,769)

(139,916)

(32%)

Operating, selling, general and administrative expenses

(4,916)

(4,591)

7%

Depreciation, amortisation and net impairment losses

(1,239)

14

N/A

Net operating income/(loss)

3,984

3,612

10%

For the year ended 31 December

Operational information

2023

2022

Change

Liquid sales volume (mmbbl)

1)

956.3

815.9

17%

Natural gas sales Equinor (bcm)

58.9

63.3

(7%)

Natural gas entitlement sales Equinor (bcm)

53.2

56.1

(5%)

Power generation (GWh) Equinor share

2,298

1,012

N/A

Realised piped gas price Europe (USD/MMBtu)

1)

13.86

32.84

(58%)

Realise piped gas price US (USD/MMBtu)

2.09

5.89

(65%)

1) Restated. Restatement due to a change in definition of the price marker for realised gas price and improved methodology for calculating

liquids sales volumes. For more information, see below.

Liquid sales volume restatement (mmbl)

Full year

2022

Liquid sales volume (old)

740.1

Liquid sales volume (new)

815.9

Average invoiced gas price restatement (mmbtu)

Full year

2022

Average invoice gas price - Europe (old)

32.46

Realised piped gas price Europe (new)

32.84

Financial performance

Net operating income includes net effects from changes in fair value related to storage and commodity derivatives utilised to manage

price risk exposure. During 2023, the net operating income included impairments of USD 342 million, in contrast to USD 895 million of

net impairment reversals in the prior year.

Total revenues and other income decreased from 2023 to 2022 due to lower gas and oil sales prices in both Europe and North

America and decreased gas volumes. This was partially offset by increased liquid sales.

Purchases [net of inventory] decreased from 2022 to 2023 due to lower prices for both gas and liquids.

The increase in Operating expenses and selling, general and administrative

expenses from 2022 to 2023 was mainly due to

significant increased transportation costs for liquids and increased selling, general and administrative expenses mainly due to

increased activity within Low Carbon Solutions.

Equinor 2023 Annual Report on Form 20-F 32

Depreciation, amortisation and net impairment increased from 2022 to 2023 driven by the impairment of refinery assets in 2023 and

an impairment reversal in 2022.

The main driver for the decrease in additions to PP&E, intangibles and equity accounted investments from 2022 to 2023 are lower

investments in projects related to onshore plants.

REN - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Revenues third party, other revenue and other income

50

127

(61%)

Net income/(loss) from equity accounted investments

(33)

58

N/A

Total revenues and other income

17

185

(91%)

Operating, selling, general and administrative expenses

(462)

(265)

74%

Depreciation, amortisation and net impairment losses

(312)

(4)

>100%

Net operating income/(loss)

(757)

(84)

>(100%)

For the year ended 31 December

Operational information

2023

2022

Change

Renewables power generation (GWh) Equinor share

1,859

1,641

13%

Financial Performance

European offshore wind assets in operation within the equity accounted investment portfolio decreased in revenue contribution by

26% within net income/(loss) from equity accounted investments in 2023. This decline was due to lower prices experienced in 2023,

increased maintenance costs and increased expenditure associated with early phase projects.

Added revenue from the newly acquired onshore wind farm in Brazil and the start-up of production at solar plants in Poland

contributed positively to total revenues in 2023. Combined with the decreased results from equity accounted investments in 2023, total

revenues and other income decreased relative to 2022. Favourable effects of divestments early in 2022 significantly impacted the

decline. 

The notable decrease in net operating income for 2023 compared to the prior year was primarily due to the recognition of a USD 300

million impairment in the third quarter for offshore wind projects in the US Northeast following the rejection of petitions related to

offtake agreements. In addition, increased business development expenditures and increased operating activity levels contributed to

an upward trend in operating and administrative expenses in 2023. The increased costs associated with maturing projects, which

predominantly originated from offshore wind activities in the UK and Asia, contributed to the reduction in adjusted earnings* in 2023

compared to 2022.

The acquisitions of BeGreen and Rio Energy in the year drove the increase in additions to PP&E, intangibles and equity accounted

investments compared to 2022.

Equinor 2023 Annual Report on Form 20-F 33

B. Liquidity and capital resources

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

●

 Debt and liquidity management in Section 2.1 of Chapter 2 on pages 43 – 44, excluding the information in the

second and sixth paragraphs under the sub-heading “Debt and Credit Rating”;

●

 Capital management and distribution in Section 2.1 of Chapter 2 on page 41;

●

 Capital distribution in Section 2.1 of Chapter 2 on page 41;

●

 Review of cash flows in Section 2.1 of Chapter 2 on pages 41 – 42;

●

 Balance sheet and financial indicators in Section 2.1 of Chapter 2 on pages 44 – 46; and

●

 Investments in Section 2.2 of Chapter 2 on page 98.

Any credit rating referred to in this 2023 Form 20-F is not a recommendation to buy, hold or sell any of our or our subsidiaries’

securities. Credit ratings may be changed, suspended or withdrawn at any time, and each rating should be evaluated independently of

any other rating.

Following Equinor’s transition from London Inter-bank Offered Rates (LIBOR) to the new official alternative reference rates,

Equinor generally follows guidelines from ISDA and ICMA (International Capital Markets Association).

See also notes 18 Trade and other receivables, 19 Cash and cash equivalents, 21 Finance debt, 23 Provisions and other

liabilities, 24 Trade and other payables and provisions, 25 Leases, and 26 Other commitments, contingent liabilities and contingent

assets to the Consolidated financial statements.

Principal contractual obligations

The following table summarises principal contractual obligations, excluding derivatives and other hedging instruments, as well as

asset retirement obligations which for the most part are expected to lead to cash disbursements more than five years into the future.

See note 23 Provisions and other liabilities

to the Consolidated financial statements

 for a maturity profile on asset retirement obligations

and other provisions.

Non-current finance debt in the following table represents principal payment obligations, including interest obligations. Obligations

payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below with

Equinor’s full proportionate share. For assets that are included in the Equinor accounts through joint operations or similar

arrangements, the amounts in the table include the net commitment payable by Equinor (i.e., Equinor’s proportionate share of the

commitment less Equinor's ownership share in the applicable entity).

Principal contractual obligations

As at 31 December 2023

Payment due by period

1)

(in USD million)

Less than 1

year

1-3 years

3-5 years

More than 5

years

Total

Undiscounted non-current finance debt- principal and interest

2)

2,948

6,035

5,601

17,597

32,181

Undiscounted leases

3)

1,369

1,434

496

477

3,775

Nominal minimum other long-term commitments

4)

2,659

3,587

2,197

6,775

15,218

Total contractual obligations

6,975

11,056

8,294

24,850

51,175

1)

''Less than 1 year'' represents 2024; ''1-3 years'' represents 2025 and 2026, ''3-5 years'' represents 2027 and 2028, while ''More than 5

years'' includes amounts for later periods.

2)

See note 21 Finance debt to the Consolidated financial statements. The main differences between the table and the note relate to

interest. 

3)

See note 4 Financial risk management to the Consolidated financial statements.

4)

See note 26 Other commitments and contingencies to the Consolidated financial statements.

Equinor had contractual commitments of USD 11,259 million at 31 December 2023. The contractual commitments reflect Equinor's

share and mainly comprise construction and acquisition of property, plant and equipmentas well as committed investments/funding or

resources in equity accounted entities.

Equinor 2023 Annual Report on Form 20-F 34

Equinor’s projected pension benefit obligation was USD 8,328 million, and the fair value of plan assets amounted to USD 5,664 million

as of 31 December 2023. The company’s payments regarding these benefit plans are mainly related to employees in Norway. See

note 22 Pensions to the Consolidated financial statements for more information.

Off balance sheet arrangements

Equinor is party to various agreements such as transportation and processing capacity contracts, that are not recognised in the

balance sheet. Furthermore, Equinor is lessee in a range of lease contracts, whereas all leases shall be recognised in the balance

sheet. Commitments regarding the non-lease components of lease contracts as well as leases that have not yet commenced are not

recognised in the balance sheet and represent off balance sheet commitments. Equinor is also party to certain guarantees,

commitments and contingencies that, pursuant to IFRS Accounting Standards, are not necessarily recognised in the balance sheet as

liabilities. See note 26 Other commitments and contingencies

to the Consolidated financial statements for more information.

Equinor 2023 Annual Report on Form 20-F 35

Summarised financial information related to guaranteed debt securities

The following summarised financial information provides financial information of Equinor Energy AS as co-obligor and guarantor

as required by SEC Rule 3-10 and 13-01 of Regulation S-X.

Equinor Energy AS is a 100% owned subsidiary of Equinor ASA. Equinor Energy AS is the co-obligor of certain existing debt

securities of Equinor ASA and has guaranteed certain existing debt securities of Equinor ASA, including in each case debt securities

that are registered under the US Securities Act of 1933 ("US registered debt securities").

As co-obligor, Equinor Energy AS fully, unconditionally and irrevocably assumes and agrees to perform, jointly and severally with

Equinor ASA, the payment and covenant obligations for certain debt held by Equinor ASA. As a guarantor, Equinor Energy AS fully

and unconditionally guarantees the payment obligations for certain debt held by Equinor ASA. Total debt at 31 December 2023 is

USD 24,442 million, all of which is either guaranteed by Equinor Energy AS (USD 22,611 million), or for which Equinor Energy AS is

co-obligor (USD 1,831 million). In the future, Equinor ASA may from time to time issue debt for which Equinor Energy AS will be the

co-obligor or guarantor.

The applicable US registered debt securities and related guarantees of Equinor Energy AS are unsecured and rank equally with all

other unsecured and unsubordinated indebtedness of Equinor ASA and Equinor Energy AS. The guarantees of Equinor Energy AS

are subject to release in limited circumstances upon the occurrence of certain customary conditions. With respect to US registered

debt securities (and certain other debt securities) issued on or after 18 November 2019, Equinor Energy AS will automatically and

unconditionally be released from all obligations under its guarantee and the guarantee shall thereupon terminate and be discharged of

no further force or effect, in the event that at substantially the same time as its guarantee of such debt securities is terminated, the

aggregate amount of indebtedness for borrowed money for which Equinor Energy AS is an obligor (as a guarantor, co-issuer or

borrower) does not exceed 10% of the aggregate principal amount of indebtedness for borrowed money of Equinor ASA and its

subsidiaries, on a consolidated basis, as of such time.

Internal dividends, group contributions and repayment of capital from Equinor Energy AS to Equinor ASA are regulated in the

Norwegian Public Limited Liabilities Act §§ 3-1 - 3-5. 

The following summarised financial information for the year ended 31 December 2023 provides financial information about Equinor

ASA, as issuer, and Equinor Energy AS, as co-obligor and guarantor on a combined basis after elimination of transactions between

Equinor ASA and Equinor Energy AS. Investments in non-guarantor subsidiaries are eliminated. Currency gain on transactions

between Equinor ASA and Equinor Energy AS of USD 1,939 million is included in financial items in accordance with the IFRS

Accounting Standards group principles and are included in external items in the Condensed profit and loss statement.

Intercompany balances and transactions between the obligor group and the non-guarantor subsidiaries are presented on separate

lines. Transactions with related parties are also presented on a separate line item and include transactions with the Norwegian State's

and the Norwegian State’s share of dividend declared but not paid.

The combined summarized financial information is prepared in accordance with Equinor's IFRS Accounting Standards policies as

described in note 2 Significant accounting policies to the Consolidated financial statements.

Equinor 2023 Annual Report on Form 20-F 36

COMBINED PROFIT AND LOSS STATEMENT FOR EQUINOR ASA AND EQUINOR ENERGY AS

Full year 2023

(unaudited, in USD million)

Revenues and other income

 87,627 

External

 84,213 

Non-guarantor subsidiaries

 3,218 

Related parties

 196 

Operating expenses

 (53,687)

External (incl depreciation)

 (27,343)

Non-guarantor subsidiaries

 (15,164)

Related parties 

 (11,180)

Net operating income

 33,940 

Net financial items

 2,613 

External

 713 

Non-guarantor subsidiaries

 1,900 

Related parties

 - 

Income before tax

 36,553 

Income tax

 (24,668)

Net income

 11,885 

COMBINED BALANCE SHEET FOR EQUINOR ASA AND EQUINOR ENERGY AS

At 31 December

 (unaudited, in USD million)

2023

Non-current assets

 43,867 

External

 35,595 

Non-guarantor subsidiaries

 8,221 

Related parties

 51 

Current assets

 56,978 

External

 48,189 

Non-guarantor subsidiaries

 8,209 

Related parties

 580 

Non-current liabilities

 51,802 

External

 51,342 

Non-guarantor subsidiaries

 126 

Related parties

 334 

Current liabilities

 48,362 

External

 27,103 

Non-guarantor subsidiaries

 19,323 

Related parties

 1,936 

Use and reconciliation of non-GAAP financial measures

Equinor 2023 Annual Report on Form 20-F 37

Since 2007, Equinor has been preparing its audited consolidated financial statements in accordance with International Financial

Reporting Standards (IFRS Accounting Standards) as adopted by the European Union (EU) and as issued by the International

Accounting Standards Board. IFRS Accounting Standards have been applied consistently to all periods in our audited consolidated

financial statements as of 31 December 2023 and 2022, and for the three years ended 31 December 2023 included in this 2023 Form

20-F (the “Consolidated financial statements”).

Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or

included in the comparable measures calculated and presented in accordance with generally accepted accounting principles: (i.e,

IFRS Accounting Standards in the case of Equinor). The following financial measures included in this 2023 Form 20-F may be

considered non-GAAP financial measures:

a)

 Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital

employed ratio adjusted

b)

 Return on average capital employed (ROACE)

c)

 Organic capital expenditures

d)

 Gross capital expenditure (gross capex)

e)

 Cash flows from operations after taxes paid (CFFO after taxes paid)

f)

 Net cash flow (previously named Free cash flow)

g)

 Adjusted earnings and adjusted earnings after tax

a) Net debt to capital employed ratio

In Equinor’s view, net debt ratios provide a more informative picture of Equinor’s financial strength than gross interest-bearing financial

debt.

Three different net debt to capital ratios are provided below: 1) net debt to capital employed, 2) net debt to capital employed ratio

adjusted, including lease liabilities, and 3) net debt to capital employed ratio adjusted.

These calculations are all based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance sheet

and exclude cash, cash equivalents and current financial investments.

The following adjustments are made in calculating the net debt to capital employed ratio adjusted, including lease liabilities and the

net debt to capital employed ratio adjusted: collateral deposits (classified as Cash and cash equivalents in the Consolidated balance

sheet), and financial investments held in Equinor Insurance AS (classified as Current financial investments in the Consolidated

balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP measures. Collateral deposits are

excluded since they relate to certain requirements of exchanges where Equinor’s securities are trading and therefore are presented as

restricted cash and cash equivalents. Financial investments in Equinor Insurance are excluded as these investments are not readily

available for the group to meet short term commitments. These adjustments result in a higher net debt figure and in Equinor’s view

provides a more prudent measure of the net debt to capital employed ratio than would be the case without such exclusions.

Additionally, lease liabilities are further excluded in calculating the net debt to capital employed ratio adjusted.

The accompanying table details the calculations for these non-GAAP measures and reconciles them with the most directly

comparable IFRS Accounting Standards financial measure or measures.

Forward-looking net debt to capital employed ratio adjusted, including lease liabilities included in this 2023 Form 20-F is not

reconcilable to its most directly comparable IFRS Accounting Standards measure without unreasonable efforts, because the amounts

excluded from IFRS Accounting Standards measures used to determine net debt to capital employed ratio adjusted, including lease

liabilities cannot be predicted with reasonable certainty.

Calculation of capital employed and net debt to capital employed ratio

For the year ended 31

December

(in USD million)

2023

2022

Shareholders' equity

48,490

53,988

Non-controlling interests

10

1

Total equity

A

48,500

53,989

Current finance debt and lease liabilities

7,275

5,617

Non-current finance debt and lease liabilities

24,521

26,551

Equinor 2023 Annual Report on Form 20-F 38

Gross interest-bearing debt

B

31,796

32,168

Cash and cash equivalents

9,641

15,579

Current financial investments

29,224

29,876

Cash and cash equivalents and current financial investment

C

38,865

45,455

Net interest-bearing debt before adjustments

B1 = B-C

(7,069)

(13,288)

Other interest-bearing elements

 1)

2,030

6,538

Net interest-bearing debt adjusted, including lease liabilities

B2

(5,040)

(6,750)

Lease liabilities

3,570

3,668

Net interest-bearing debt adjusted

B3

(8,610)

(10,418)

Calculation of capital employed:

Capital employed

A+B1

41,431

40,701

Capital employed adjusted, including lease liabilities

A+B2

43,460

47,239

Capital employed adjusted

A+B3

39,890

43,571

Calculated net debt to capital employed

Net debt to capital employed

(B1)/(A+B1)

(17.1%)

(32.6%)

Net debt to capital employed ratio adjusted, including lease liabilities

(B2)/(A+B2)

(11.6%)

(14.3%)

Net debt to capital employed ratio adjusted

(B3)/(A+B3)

(21.6%)

(23.9%)

1)

The following adjustments are made in calculating the net debt to capital employed adjusted, including lease liabilities ratio and the net

debt to capital employed adjusted ratio: collateral deposits (classified as Cash and cash equivalents in the Consolidated balance sheet),

and financial investments held in Equinor Insurance AS (classified as Current financial investments in the Consolidated balance sheet) are

treated as non-cash and excluded from the calculation of these non-GAAP measures. Collateral deposits are excluded since they relate to

certain requirements of exchanges where Equinor is trading and presented as restricted cash and cash equivalents. Financial investments

in Equinor Insurance are excluded as these investments are not readily available for the group to meet short term commitments. These

adjustments result in a higher net debt figure and in Equinor’s view provides a more prudent measure of the net debt to capital employed

ratio than would be the case without such exclusions.

Equinor 2023 Annual Report on Form 20-F 39

b) Return on average capital employed (ROACE)

Return on average capital employed (ROACE) is the ratio of adjusted earnings after tax to the average capital employed adjusted.

The reconciliation for adjusted earnings after tax is presented in section g). Average capital employed adjusted refers to the average

of the capital employed adjusted values as of 31 December for both the current and the preceding year, as presented under the

heading Calculation of capital employed in section a).

Equinor uses ROACE to evaluate performance by measuring how effectively the company employs its capital, whether financed

through equity or debt.

An IFRS Accounting Standards measure most directly comparable to ROACE would be calculated as the ratio of net income/(loss) to

average capital employed that is based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance

sheet, excluding cash, cash equivalents and current financial investments.

ROACE is used as a supplementary measure and should not be viewed in isolation or as an alternative to measures calculated in

accordance with IFRS Accounting Standards including income before financial items, income taxes and minority interest, or net

income, or ratios based on these figures.

Calculated ROACE based on IFRS Accounting Standards 

31 December

(in USD million, except percentages)

2023

2022

Net income/(loss)

A

11,904

28,744

Average total equity

1

51,244

46,506

Average current finance debt and lease liabilities

6,446

6,001

Average non-current finance debt and lease liabilities

25,536

28,202

- Average cash and cash equivalents

(12,610)

(14,853)

- Average current financial investments

(29,550)

(25,561)

Average net-interest bearing debt

2

(10,178)

(6,210)

Average capital employed

B = 1+2

41,066

40,296

Calculated ROACE based on Net income/loss and capital employed

A/B

29.0%

71.3%

Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted 

31 December

(in USD million, except percentages)

2023

2022

Adjusted earnings after tax

A

10,371

22,680

Average capital employed adjusted

B

41,731

41,134

Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted

A/B

24.9%

55.1%

Forward-looking ROACE included in this 2023 Form 20-F is not reconcilable to its most directly comparable IFRS Accounting

Standards measure without unreasonable efforts, because the amounts included or excluded from IFRS Accounting Standards

measures used to determine ROACE cannot be predicted with reasonable certainty.

Equinor 2023 Annual Report on Form 20-F 40

c) Organic capital expenditures

Organic capital expenditures represent additions to PP&E, intangibles and equity accounted investments, excluding expenditures

related to acquisitions, leased assets, and other investments with significantly different cash flow patterns. Equinor believes this

measure gives stakeholders relevant information to understand the company’s investments in maintaining and developing its existing

business operations.

Calculation of organic capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to PP&E, intangibles and equity accounted investments

14.5

 10.0 

Acquisition-related additions

 (3.2)

 (0.6)

Right of use asset additions

 (1.1)

 (1.3)

Other additions (with unique cash flow patterns)

Organic capital expenditures

 10.2 

 8.1 

Forward-looking organic capital expenditures included in this 2023 Form 20-F are not reconcilable to the most directly comparable

IFRS Accounting Standards measure without unreasonable efforts, because the amounts excluded from such IFRS Accounting

Standards measure to determine organic capital expenditures cannot be predicted with reasonable certainty.

d) Gross capital expenditures (Gross capex)

Gross capital expenditures represent capital expenditures, defined as Additions to PP&E, intangibles and equity accounted

investments as presented in the financial statements, excluding additions to right of use assets related to leases and capital

expenditures financed through government grants. Equinor adds the proportionate share of capital expenditures in equity accounted

investments not included in Additions to PP&E, intangibles and equity accounted investments. Equinor believes that by excluding

additions to right of use assets related to leases, this measure better reflects the company's investments in the business to drive

growth.

Calculation of gross capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to Property, plant and equipment, Intangibles and Equity accounted companies

14.5

10.0

Less adjustments

0.4

0.4

Gross capital expenditures

14.1

9.6

Forward-looking gross capital expenditures included in this 2023 Form 20-F are not reconcilable to the most directly comparable IFRS

Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from such IFRS Accounting

Standards measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

Equinor 2023 Annual Report on Form 20-F 41

e) Cash flows from operations after taxes paid (CFFO after taxes paid)

Cash flows from operations after taxes paid represents, and is used by management to evaluate, cash generated from operating

activities after taxes paid, which is available for investing activities, for debt servicing and for distribution to shareholders. Cash flows

from operations after taxes paid is not a measure of our liquidity under IFRS Accounting Standards and should not be considered in

isolation or as a substitute for an analysis of our results as reported in this 2023 Form 20-F. Our definition of Cash flows from

operations after taxes paid is limited and does not represent residual cash flows available for discretionary expenditures.

The table below provides a reconciliation of Cash flows from operations after taxes paid to its most directly comparable IFRS

Accounting Standards measure, Cash flows provided by operating activities before taxes paid and working capital items, as of the

specified dates:

Cash flow from operations after taxes paid (CFFO after taxes paid)

(in USD million)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

 48,016 

 83,608 

Taxes paid

 (28,276)

 (43,856)

Cash flow from operations after taxes paid (CFFO after taxes paid)

 19,741 

 39,752 

Forward-looking cash flows from operations after taxes paid included in this 2023 Form 20-F is not reconcilable to its most directly

comparable IFRS Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from IFRS

Accounting Standards measures used to determine cash flows from operations after taxes paid cannot be predicted with reasonable

certainty.

f) Net cash flow (previously named Free cash flow)

Net cash flow represents, and is used by management to evaluate, cash generated from operational and investing activities available

for debt servicing and distribution to shareholders. The measure underwent a name change in 2023; however, all other aspects of the

measure remain unchanged. Net cash flow is not a measure of our liquidity under IFRS Accounting Standards and should not be

considered in isolation or as a substitute for an analysis of our results as reported in this 2023 Form 20-F. Our definition of Net cash

flow is limited and does not represent residual cash flows available for discretionary expenditures.

The table below reconciles Net cash flow with its most directly comparable IFRS Accounting Standards measure, Cash flows provided

by operating activities before taxes paid and working capital items, as of the specified dates:

Net cash flow

(in USD billion)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

 48.0 

 83.6 

Taxes paid

 (28.3)

 (43.9)

Cash used/received in business combinations

 (1.2)

 0.1 

Capital expenditures and investments

 (10.6)

 (8.8)

(Increase)/decrease in other interest-bearing items

 (0.1)

 (0.0)

Proceeds from sale of assets and businesses

 0.3 

 1.0 

Net cash flow before capital distribution

 8.2 

 32.1 

Dividends paid

 (10.9)

 (5.4)

Share buy-back

 (5.6)

 (3.3)

Net cash flow

 (8.3)

 23.4 

Equinor 2023 Annual Report on Form 20-F 42

g) Adjusted earnings and adjusted earnings after tax

Adjusted earnings

 are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in order

to separate out effects that management considers may not be well correlated to Equinor’s underlying operational performance in the

individual reporting period. Management believes adjusted earnings provides an indication of Equinor’s underlying operational

performance in the period and facilitates comparison of operational trends between periods. The calculation of Adjusted earnings was

changed in 2023, as detailed below.

Adjusted earnings after tax

 equals the sum of net operating income/(loss) less income tax in reporting segments and includes

adjustments to operating income to take the applicable marginal tax into consideration. Adjusted earnings after tax excludes net

financial items and the associated tax effects on net financial items. It is based on adjusted earnings less the tax effects on all

elements included in adjusted earnings (or calculated tax on operating income and on each of the adjusting items using an estimated

marginal tax rate). In addition, tax effects related to tax exposure items not related to the individual reporting period are excluded from

adjusted earnings after tax. Management believes adjusted earnings after tax provides an indication of Equinor’s underlying

operational performance and facilitates comparisons of operational trends between periods as it reflects the tax charge associated

with operational performance excluding the impact of financing. Certain net USD denominated financial positions are held by group

companies that have a USD functional currency that is different from the currency in which the taxable income is measured. As

currency exchange rates change between periods, the basis for measuring net financial items for IFRS Accounting Standards will

change disproportionally with taxable income which includes exchange gains and losses from translating the net USD denominated

financial positions into the currency of the applicable tax return. Therefore, the effective tax rate may be significantly higher or lower

than the statutory tax rate for any given period. Adjusted taxes included in adjusted earnings after tax should not be considered

indicative of the amount of current or total tax expense (or taxes payable) for the period.

Adjusted earnings and adjusted earnings after tax are supplementary measures and should not be viewed in isolation or as

substitutes for net operating income/(loss) and net income/(loss), which are the most directly comparable IFRS Accounting Standards

measures. There are material limitations associated with the use of adjusted earnings and adjusted earnings after tax compared with

the IFRS Accounting Standards measures as these non-GAAP measures do not include all the items of revenues/gains or

expenses/losses of Equinor that are needed to evaluate its profitability on an overall basis. Adjusted earnings and adjusted earnings

after tax are only intended to be indicative of the underlying developments in trends of our ongoing operations for the production,

manufacturing and marketing of our products and exclude pre- and post-tax impacts of net financial items. Equinor reflects such

underlying developments in our operations by eliminating the effects of certain items that may not be directly associated with the

period's operations or financing. However, for that reason, adjusted earnings and adjusted earnings after tax are not complete

measures of profitability and should therefore not be used in isolation.

Amended principles for Adjusted earnings with effect from 2023:

Equinor has made the following changes to the items adjusted for within Adjusted earnings:

●

 With effect from 2023, movements in the fair value of commodity derivatives used to manage price risk exposure of future

sale and purchase contracts are excluded from adjusted earnings and deferred until the time of the physical delivery. This

change minimises the effects of timing differences and presents a measure more indicative of underlying economic

performance.

●

 With effect from 2023, the principle used to adjust the valuation of commercial storages is based on the forward price at the

expected realisation date. Prior to this amendment, the valuation adjustment was based on short-term forward prices which,

for some storages, did not correspond to the forward price at the expected realisation date. This change brings the valuation

principle in line with how the corresponding derivative contract used to manage price exposure is valued.

These changes have been applied retrospectively to the comparative figures. The majority of the impact is due to the revised

treatment of commodity derivatives. These changes only affect the MMP reporting segment and currently do not have an impact on

other segments. Equinor deems that these changes lead to a better representation of performance in each period by appropriately

reflecting the economic impact of its risk management activities.

For further information on Adjusted earnings, see note 28 Financial instruments and fair value measurement to the Consolidated

financial statements.

Impact of change

Full year of 2022

MMP segment

As reported

Impact

Restated

Change in Fair Value of derivatives

(149)

1,801

1,651

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

147,599

1,981

149,580

Adjusted earnings/(loss)

2,253

1,981

4,234

Equinor 2023 Annual Report on Form 20-F 43

Adjusted earnings/(loss) after tax

2,727

(10)

2,717

Impact of change

Full year of 2022

Equinor group

As reported

Impact

Restated

Change in Fair Value of derivatives

(207)

1,801

1,593

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

149,910

1,981

151,891

Adjusted earnings/(loss)

74,940

1,981

76,921

Adjusted earnings/(loss) after tax

22,691

(10)

22,680

Effective tax rates on adjusted earnings

69.7%

0.8%

70.5%

No other line items or segments were affected by the change.

Adjusted earnings adjust for the following items:

●

Changes in fair value of derivatives

: In the ordinary course of business, Equinor enters into commodity derivative contracts to

manage the price risk exposure relating to future sale and purchase contracts. These commodity derivatives are measured at fair

value at each reporting date, with the movements in fair value recognised in the income statement. By contrast, the sale and

purchase contracts are not recognised until the transaction occurs resulting in timing differences. Therefore, with effect from

2023, the unrealised movements in the fair value of these commodity derivative contracts are excluded from adjusted earnings

and deferred until the time of the physical delivery to minimise the effect of these timing differences. Further, embedded

derivatives within certain gas contracts and contingent consideration related to historical divestments are carried at fair value.

Any accounting impacts resulting from such changes in fair value are also excluded from adjusted earnings, as these fluctuations

are not indicative of the underlying performance of the business.

●

Periodisation of inventory hedging effect:

 Equinor enters into derivative contracts to manage price risk exposure relating to its

commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of

cost or market price. An adjustment is made to align the valuation principles of inventories with related derivative contracts. With

effect from 2023, the adjusted valuation of inventories is based on the forward price at the expected realisation date. This is so

that the valuation principles between commercial storages and derivative contracts are better aligned.

●

Over/underlift

: Over/underlift is accounted for using the sales method and therefore revenues are reflected in the period the

product is sold rather than in the period it is produced. The over/underlift position depends on a number of factors related to our

lifting programme and the way it corresponds to our entitlement share of production. The effect on income for the period is

therefore adjusted to show estimated revenues and associated costs based upon the production for the period to reflect

operational performance.

●

The

operational storage

 is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the

FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or

losses will fluctuate from one period to another and are not considered part of the underlying operations for the period.

●

Impairment and reversal of impairment

 are excluded from adjusted earnings since they affect the economics of an asset for

the lifetime of that asset, not only the period in which it is impaired or the impairment is reversed. Impairment and reversal of

impairment can impact both the exploration expenses and the depreciation, amortisation and net impairments line items.

●

Gain or loss from sales of assets

 is eliminated from the measure since the gain or loss does not give an indication of future

performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is

acquired until it is sold.

●

Eliminations (internal unrealised profit on inventories):

 Volumes derived from equity oil inventory vary depending on several

factors and inventory strategies, i.e. level of crude oil in inventory, equity oil used in the refining process and level of in-transit

cargoes. Internal profit related to volumes sold between entities within the group and still in inventory at period end is eliminated

according to IFRS Accounting Standards (write down to production cost). The proportion of realised versus unrealised gain

fluctuates from one period to another due to inventory strategies and consequently impacts net operating income/(loss). Write

down to production cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit

related to equity volumes is excluded in adjusted earnings.

●

Other items of income and expense

 are adjusted when the impacts on income in the period are not reflective of Equinor’s

underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions, but they may

also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. However, other

items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully

assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.

●

Change in accounting policy

 are adjusted when the impacts on income in the period are unusual or infrequent, and not

reflective of Equinor’s underlying operational performance in the reporting period.

Equinor 2023 Annual Report on Form 20-F 44

Items impacting net operating income/(loss) in the

full year of 2023

Equinor

group

Exploration

&

Production

Norway

Exploration

&

Production

Internationa

l

Exploration

&

Production

USA

Marketing,

Midstream

&

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

 107,174 

 38,340 

 7,032 

 4,319 

 105,908 

 17 

 (48,442)

Adjusting items

 (1,303)

 (128)

 (76)

 (32)

 (1,049)

 (17)

 (1)

Changes in fair value of derivatives

 (711)

 128 

 (96)

 - 

 (743)

 - 

 - 

Periodisation of inventory hedging effect

 (183)

 - 

 - 

 - 

 (183)

 - 

 - 

Impairment from associated companies

 1 

 - 

 - 

 - 

 - 

 1 

 - 

Over-/underlift

 10 

 (35)

 45 

 - 

 - 

 - 

 - 

Other adjustments

 (100)

 - 

 - 

 - 

 (100)

 - 

 - 

Gain/loss on sale of assets

 (319)

 (221)

 (25)

 (32)

 (23)

 (17)

 (1)

Adjusted total revenues and other income

 105,871 

 38,213 

 6,956 

 4,286 

 104,860 

 (0)

 (48,443)

Purchases [net of inventory variation]

 (48,175)

 (0)

 (70)

 - 

 (95,769)

 0 

 47,664 

Adjusting items

 173 

 - 

 - 

 - 

 36 

 - 

 137 

Operational storage effects

 41 

 - 

 - 

 - 

 41 

 - 

 - 

Provisions

 (5)

 - 

 - 

 - 

 (5)

 - 

 - 

Eliminations

 137 

 - 

 - 

 - 

 - 

 - 

 137 

Adjusted purchases [net of inventory variation]

 (48,003)

 (0)

 (70)

 - 

 (95,733)

 0 

 47,801 

Operating and administrative expenses 

 (11,800)

 (3,759)

 (2,176)

 (1,178)

 (4,916)

 (462)

 692 

Adjusting items

 260 

 29 

 261 

 22 

 (72)

 20 

 - 

Over-/underlift

 7 

 29 

 (22)

 - 

 - 

 - 

 - 

Other adjustments

 36 

 - 

 - 

 22 

 - 

 14 

 - 

Gain/loss on sale of assets

 289 

 - 

 283 

 - 

 - 

 6 

 - 

Provisions

 (72)

 - 

 - 

 - 

 (72)

 - 

 - 

Adjusted operating and administrative expenses 

 (11,540)

 (3,730)

 (1,915)

 (1,156)

 (4,988)

 (442)

 692 

Depreciation, amortisation and net impairments

 (10,634)

 (5,017)

 (2,433)

 (1,489)

 (1,239)

 (312)

 (143)

Adjusting items

 1,259 

 588 

 310 

 (290)

 343 

 300 

 9 

Impairment

 1,550 

 588 

 310 

 - 

 343 

 300 

 9 

Reversal of impairment

 (290)

 - 

 - 

 (290)

 - 

 - 

 - 

Adjusted depreciation, amortisation and net

impairments

 (9,374)

 (4,429)

 (2,123)

 (1,779)

 (897)

 (12)

 (134)

Exploration expenses

 (795)

 (476)

 (20)

 (299)

 - 

 - 

 - 

Adjusting items

 61 

 - 

 36 

 25 

 - 

 - 

 - 

Impairment

 61 

 - 

 36 

 25 

 - 

 - 

 - 

Adjusted exploration expenses

 (734)

 (476)

 16 

 (274)

 - 

 - 

 - 

Net operating income/(loss)

 35,770 

 29,087 

 2,332 

 1,353 

 3,984 

 (757)

 (229)

Sum of adjusting items

 451 

 490 

 532 

 (277)

 (742)

 303 

 145 

Adjusted earnings/(loss)

 36,220 

 29,577 

 2,863 

 1,076 

 3,242 

 (454)

 (84)

Tax on adjusted earnings

 (25,850)

 (23,083)

 (1,213)

 (304)

 (1,364)

 63 

 51 

Adjusted earnings/(loss) after tax

 10,371 

 6,494 

 1,650 

 773 

 1,877 

 (391)

 (33)

Equinor 2023 Annual Report on Form 20-F 45

Items impacting net operating income/(loss) in the

full year of 2022

Equinor group

Exploration

&

Production

Norway

Exploration

&

Production

Internationa

l

Exploration

&

Production

USA

Marketing,

Midstream

&

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

 150,806 

 75,930 

 7,431 

 5,523 

 148,105 

 185 

 (86,367)

Adjusting Items

 1,085 

 (487)

 185 

 - 

 1,475 

 (110)

 22 

Changes in fair value of derivatives

 1,593

1)

 (263)

 205 

 - 

 1,651

1)

 - 

 - 

Periodisation of inventory hedging effect

 (168)

1)

 - 

 - 

 - 

 (168)

1)

 - 

 - 

Impairment from associated companies

 1 

 - 

 - 

 - 

 - 

 1 

 - 

Over-/underlift

 510 

 507 

 3 

 - 

 - 

 - 

 - 

Other adjustments

 (0)

 - 

 (22)

 - 

 - 

 - 

 22 

Gain/loss on sale of assets

 (850)

 (731)

 - 

 - 

 (9)

 (111)

 (0)

Adjusted total revenues and other income

 151,891

1)

 75,443 

 7,616 

 5,523 

 149,580

1)

 75 

 (86,345)

Purchases [net of inventory variation]

 (53,806)

 0 

 (116)

 (0)

 (139,916)

 - 

 86,227 

Adjusting Items

 (610)

 - 

 - 

 - 

 (33)

 - 

 (577)

Operational storage effects

 (33)

 - 

 - 

 - 

 (33)

 - 

 - 

Eliminations

 (577)

 - 

 - 

 - 

 - 

 - 

 (577)

Adjusted purchases [net of inventory variation]

 (54,415)

 0 

 (116)

 (0)

 (139,949)

 - 

 85,650 

Operating and administrative expenses

 (10,593)

 (3,782)

 (1,698)

 (938)

 (4,591)

 (265)

 681 

Adjusting Items

 64 

 (54)

 22 

 6 

 75 

 10 

 5 

Over-/underlift

 (41)

 (54)

 13 

 - 

 - 

 - 

 - 

Change in accounting policy

 7 

 - 

 2 

 - 

 - 

 - 

 5 

Gain/loss on sale of assets

 23 

 - 

 7 

 6 

 - 

 10 

 - 

Provisions

 75 

 - 

 - 

 - 

 75 

 - 

 - 

Adjusted operating and administrative expenses

 (10,530)

 (3,836)

 (1,675)

 (933)

 (4,516)

 (255)

 686 

Depreciation, amortisation and net impairments

 (6,391)

 (4,167)

 (1,731)

 (361)

 14 

 (4)

 (142)

Adjusting Items

 (2,488)

 (819)

 286 

 (1,060)

 (895)

 - 

 - 

Impairment

 1,111 

 3 

 1,033 

 - 

 75 

 - 

 - 

Reversal of impairment

 (3,598)

 (821)

 (747)

 (1,060)

 (970)

 - 

 - 

Adjusted depreciation, amortisation and net impairments

 (8,879)

 (4,986)

 (1,445)

 (1,422)

 (881)

 (4)

 (142)

Exploration expenses

 (1,205)

 (366)

 (638)

 (201)

 - 

 - 

 0 

Adjusting Items

 59 

 4 

 65 

 (11)

 - 

 - 

 - 

Impairment

 85 

 4 

 65 

 15 

 - 

 - 

 - 

Reversal of impairment

 (26)

 - 

 - 

 (26)

 - 

 - 

 - 

Adjusted exploration expenses

 (1,146)

 (361)

 (573)

 (212)

 - 

 - 

 0 

Net operating income/(loss)

 78,811 

 67,614 

 3,248 

 4,022 

 3,612 

 (84)

 399 

Sum of adjusting items

 (1,890)

1)

 (1,355)

 559 

 (1,065)

 621

1)

 (100)

 (550)

Adjusted earnings/(loss)

 76,921

1)

 66,260 

 3,806 

 2,957 

 4,234

1)

 (184)

 (151)

Tax on adjusted earnings

 (54,241)

1)

 (51,373)

 (1,248)

 (79)

 (1,517)

1)

 14 

 (38)

Adjusted earnings/(loss) after tax

 22,680

1)

 14,887 

 2,558 

 2,878 

 2,717

1)

 (171)

 (189)

1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value of derivatives' and 'periodisation of inventory hedging

effect'.

C. Research and development, Patents and Licences, etc.

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

Equinor 2023 Annual Report on Form 20-F 46

●

 A technology leader in Section 1.3 of Chapter 1 on page 13; and

●

 Fuelling innovation in Section 2.3 of Chapter 2 on pages 119 – 121.

See also notes 9 Auditor’s remuneration and Research and development expenditures and 12 Property, plant and equipment to

the Consolidated financial statements.

D. Trend information

The information set forth under the heading “

Our market perspective

” in Section 2.1 of Chapter 2 on pages 37 – 38 of the 2023

Annual Report is incorporated herein by reference. See also “Item 5. Operating and Financial Review―A. Operating Results” of this

2023 Form 20-

F.

E. Critical Accounting Estimates

Not Applicable.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

Members of Equinor’s board of directors as of 31 December 2023:

Jon Erik Reinhardsen

Position:

Chair of the Board and chair of the Compensation and Executive Development Committee

Term of office:

 Chair of the Board of Equinor ASA since 1 September 2017. Up for election in 2024.

Year of birth:

 1956

Independent:

Yes

Other directorships:

Listed companies: Member of the Board of Oceaneering International, Inc.

Non-listed companies: Chair of the Board of Fire Security AS, OPS Solutions AS and Baring Group AS.

Number of shares in Equinor ASA:

 4,584 (as of 31 December 2023)

Loans from Equinor ASA:

 None

Experience:

Reinhardsen is a part-time senior advisor with BearingPoint Capital. Reinhardsen was the Chief Executive Officer of

Petroleum Geo-Services (PGS) from 2008 - August 2017. PGS delivers global geophysical- and reservoir services. In the period

2005 - 2008 Reinhardsen was President Growth, Primary Products in the international aluminium company Alcoa Inc. with

headquarters in the US, and he was in this period based in New York. From 1983 to 2005, Reinhardsen held various positions in

the Aker Kværner group, including Group Executive Vice President of Aker Kværner ASA, Deputy Chief Executive Officer and

Executive Vice President of Aker Kværner Oil & Gas AS in Houston and Executive Vice President in Aker Maritime ASA.

Education:

Master’s degree in Applied Mathematics and Geophysics from the University of Bergen. He has also attended the

International Executive Program at the Institute for Management Development (IMD) in Lausanne, Switzerland.

Family relations:

 No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

 Reinhardsen is a Norwegian citizen, and resident in Norway.

Anne Drinkwater

Position

: Shareholder-elected deputy chair of the board, chair of the board’s audit committee and member of the board’s safety,

sustainability and ethics committee.

Term of office:

 Deputy chair of the Board of Equinor ASA since 1 July 2022 and board member since 1 July 2018. Up for

election in 2024.

Year of birth:

 1956.

Independent:

 Yes.

Other directorships:

Listed company: Non-executive member of the board of Balfour Beatty plc.

Number of shares in Equinor ASA:

 1,100 (as of 31 December 2023)

Loans from Equinor ASA:

 None.

Experience:

 Drinkwater was employed with bp in the period 1978-2012, holding a number of different leadership positions in the

company. In the period 2009-2012 she was chief executive officer of bp Canada. She has extensive international experience,

including being responsible for operations in the US, Norway, Indonesia, the Middle East and Africa. Through her career

Drinkwater has acquired a deep understanding of the oil and gas sector, holding both operational roles, and more distinct

business responsibilities.

Education:

 Bachelor of Science in Applied Mathematics and Statistics, Brunel University London.

Equinor 2023 Annual Report on Form 20-F 47

Family relations:

 No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

 Drinkwater is a British citizen, and resident in the United States.

Rebekka Glasser Herlofsen

Position:

 Shareholder-elected member of the board, the board's audit committee and the board’s compensation and executive

development committee.

Term of office

: Member of the Board of Equinor ASA since 19 March 2015. Up for election in 2024.

Year of birth:

1970

Independent:

 Yes

Other directorships:

Listed companies: Member of the board of Rockwool International A/S, BW Offshore ASA and Wilh. Wilhelmsen Holding ASA.

Non-listed companies: Chair of the board of Norwegian Hull Club (NHC) and Handelsbanken Norge, board member of Torvald

Klaveness Group and Egmont Foundation and chair of the Council at DNV.

Number of shares in Equinor ASA:

 220 (as of 31 December 2023)

Loans from Equinor ASA:

 None

Experience:

 Herlofsen is an independent board member and consultant. She was previously the Chief Financial Officer in

Wallenius Wilhelmsen ASA, an international shipping company. Before joining Wallenius Wilhelmsen, she was the Chief

Financial Officer in the shipping company Torvald Klaveness since 2012. She has broad financial and strategic experience from

several corporations and board directorships. Herlofsen’s professional career began in the Nordic Investment Bank, Enskilda

Securities, where she worked with corporate finance from 1995 to 1999 in Oslo and London. During the next ten years Herlofsen

worked in the Norwegian shipping company Bergesen d.y. ASA (later BW Group). During her period with Bergesen d.y. ASA/BW

Group she held leading positions within M&A, strategy and corporate planning and was part of the group management team.

Education:

 MSc in Economics and Business Administration (“Siviløkonom”) and Certified Financial Analyst Program (AFA), the

Norwegian School of Economics (NHH). Breakthrough Program for Top Executives at IMD business school, Switzerland.

Family relations:

 No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

 Herlofsen is a Norwegian citizen and resident in Norway.

Jonathan Lewis

Position:

Member of the Board, chair of the Board's Safety, Sustainability and Ethics Committee and member of the Board's

Audit Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2018. Up for election in 2024.

Year of birth:

 1961

Independent:

 Yes

Other directorships:

Listed company: Member of the Board of Capita plc.

Number of shares in Equinor ASA:

 None (as of 31 December 2023)

Loans from Equinor ASA:

 None

Experience:

 Lewis was the Chief Executive Officer of Capita plc from December 2017 until January 2024, having previously

spent 30 years working for large multi-national companies in technology-enabled industries. Lewis came to Capita plc from Amec

Foster Wheeler plc, a global consulting, engineering and construction company, where he was CEO from 2016-2017. Prior to

this, he held a number of senior leadership positions at Halliburton, where he was employed in the period 1996-2016. Lewis has

previously held several directorships within technology and the oil and gas industry.

Education:

 Lewis has a PhD in Reservoir Characterisation, from University of Reading and a Bachelor of Science degree in

Geology from Kingston University.

Family relations:

 No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

 Lewis is a British and US citizen, and resident in the UK.

Finn Bjørn Ruyter

Position

: Member of the Board, the Board's Audit Committee and the Board’s Compensation and Executive Development

Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2019.

Up for election in 2024.

Year of birth:

1964

Independent:

Yes

Other directorships:

Non-listed companies: Chair of the board of Fornybar Norge AS and board member of Cegal in addition to several companies

fully or partly owned by Hafslund.

Number of shares in Equinor ASA:

620 (as of 31 December 2023)

Loans from Equinor ASA:

None

Equinor 2023 Annual Report on Form 20-F 48

Experience:

Ruyter has since July 2012 been CEO of Hafslund AS. He was CFO in the company 2010-2011. In 2009-2010 he

worked in the Philippine hydro power company SN Aboitiz Power. In the period 1996-2009 he led the power trading entity and

from 1999 also the energy division in Elkem. From 1991-1996 Ruyter worked with energy trading in Norsk Hydro.

Education:

Master’s degree in mechanical engineering from the Norwegian University of Technology (NTNU) and an MBA from

BI Norwegian School of Management.

Family relations:

No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

Ruyter is a Norwegian citizen, and resident in Norway.

Tove Andersen

Position

: Member of the Board and the Board's Safety, Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2020.

Up for election in 2024.

Year of birth:

1970

Independent:

Yes

Other directorships:

Listed company:

Member of the board of Borregaard ASA

Non-listed company: Member of the board of The Norwegian Opera & Ballet

Number of shares in Equinor ASA:

4,700 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Andersen is President & CEO of Tomra Systems ASA as of 16 August 2021. Prior to this, she held the position as

Executive Vice President for Europe in Yara International ASA. Andersen was part of the executive management team in Yara

since 2016 where she also held positions as Executive Vice President, Production and Executive Vice President, Supply Chain.

Previously she has had several management roles within Yara and Norsk Hydro/Yara and she started in Norsk Hydro in 1997.

She has extensive international industrial experience, and she has broad board experience.

Education:

Master of Science (Sivilingeniør) from Norwegian Institute of Technology (NTNU) and a Master of Business

Administration from the BI Norwegian Business School.

Family relations:

No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

 Andersen is a Norwegian citizen and resident in Norway.

Haakon Bruun-Hanssen

Position:

 Member of the Board, the Board's Compensation and Executive Development Committee and the Board's Safety,

Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 12 December 2022. Up for election in 2024.

Year of birth:

1960

Independent:

Yes

Other directorships:

Non-listed companies: Member of the Advisory board at Kongsberg Defence & Aerospace (KDA)

Number of shares in Equinor ASA:

None (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Bruun-Hanssen held the position as Chief of Norwegian Defence Forces from 2013-2020, previously having held

the position as Chief Norwegian Joint Operational Headquarters from 2011-2013 and Chief Royal Norwegian Navy from 2009-

2011, Chief of staff Royal Norwegian Navy from 2007-2009 and Chief Naval Operations centre from 2003-2007. Prior to this he

has had an extensive career in the Norwegian Military.

Education:

Bruun-Hanssen has a broad education through the Norwegian Military; Petty Officer training school, Norwegian naval

Academy, Submarine Commanding officer course and Higher command course, Forsvarets Høyskole. He is also educated at

Military Command and Staff college, Instituut Defensie Leergangen in The Netherlands and has participated in work sessions

relating to board roles and tasks at Insead In-Board Nordic Academy.

Family relations:

No family relations to other members of the Board, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

Bruun-Hanssen is a Norwegian citizen, and resident in Norway.

Stig Lægreid

Position:

Employee representative member of the Board and member of the Safety, Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2013. Up for election in 2025.

Year of birth:

1963

Independent:

No

Other board directorships:

None

Number of shares in Equinor ASA:

147 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Lægreid is now a full-time employee representative as the leader of NITO, Equinor. He has been occupied as

weight estimator for platform design from 2005 and prior to this as project engineer and constructor for production of primary

metals. Employed in ÅSV and Norsk Hydro since 1985.

Equinor 2023 Annual Report on Form 20-F 49

Education:

Bachelor's degree, Mechanical Construction from OIH.

Family relations:

No family relationships to other board members, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

Lægreid is a Norwegian citizen and resident in Norway.

Per Martin Labråten

Position:

 Employee representative member of the Board, member of the Safety, Sustainability and Ethics Committee and

member of the Board's Compensation and Executive Development Committee.

Term of office:

Member of the Board of Equinor ASA since 8 June 2017. Up for election in 2025.

Year of birth:

1961

Independent:

No

Other directorships:

Labråthen is a member of the Executive Committee of the Industry Energy (IE) trade union and holds a

number of offices as a result of this.

Number of shares in Equinor ASA:

 894 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Labråthen is now a full-time employee representative as the leader of IE Equinor branch. He has previously worked

as a process technician at the petrochemical plant on Oseberg field in the North Sea.

Education:

Labråthen has a craft certificate as a process/chemistry worker.

Family relations:

No family relations to other members of the Board, members of the Corporate Executive Committee or

members of the Corporate Assembly.

Other matters:

Labråthen is a Norwegian citizen, and resident in Norway.

Hilde Møllerstad

Position:

Employee representative member of the Board and member of the Board's Audit Committee.

Term of office:

Member of the Board of Directors of Equinor ASA since 1 July 2019. Up for election in 2025.

Year of birth:

1966

Independent:

No

Other board directorships:

Chair of Tekna’s ethical board.

Number of shares in Equinor ASA:

3,005 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Møllerstad has been employed by Equinor since 1991 and works within petroleum technology discipline in

Exploration & Production International. Møllerstad has been a member of the Corporate Assembly in Equinor from 2013 - 2019

and was a board member of Tekna Private from 2012 - 2017 and she has had several trust offices in Tekna Equinor since 1993.

Education:

 Chartered engineer from NTNU (Norwegian University of Science and Technology) and Project Management

Essential (PME) from BI/NTNU (Norwegian Business School BI/ Norwegian University of Science and Technology).

Family relations:

No family relationships to other board members, members of the Corporate Executive Committee or the

Corporate Assembly.

Other matters:

Møllerstad is a Norwegian citizen and resident in Norway

Members of Equinor's corporate executive committee as of 31 December 2023:

Anders Opedal

Position:

President and Chief Executive Officer (CEO) since 2 November 2020

Year of birth:

1968

External offices:

None

Number of shares in Equinor ASA:

56,649 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Opedal joined Equinor in 1997. From 2018-2020 he held the position as Executive Vice President Technology,

Projects and Drilling. From August to October 2018, he was Executive Vice President for Development, Production Brazil and

prior to this Senior Vice President for Development, Production International Brazil. He also held the position as Equinor’s Chief

Operating Officer. In 2011 he took on the role as Senior Vice President in Technology, Projects and Drilling; where he was

responsible for Equinor’s NOK 300 billion project portfolio. From 2007-2010 he served as Chief Procurement Officer. He has held

a range of technical, operational and leadership positions in the company and started as a petroleum engineer in the Statfjord

operations. Prior to Equinor, Opedal worked for Schlumberger and Baker Hughes.

Education:

MBA from Heriot-Watt University and master's degree in Engineering (sivilingeniør) from the Norwegian Institute of

Technology (NTH) in Trondheim.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Opedal is a Norwegian citizen and resident in Norway.

Torgrim Reitan

Position:

Executive Vice President and Chief Financial Officer since 6 October 2022

Equinor 2023 Annual Report on Form 20-F 50

Year of birth:

1969

External offices:

None

Number of shares in Equinor ASA:

15,482 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Reitan joined Equinor in 1995. He comes from the position of Senior Vice President for Finance and Control in

Equinor’s Renewables business area, which he held since 2020. From 2018 - 2020 he was Executive Vice President for

Development and production international, and from 2015 - 2018 Reitan held the position as Executive Vice President of

Development and Production USA. Prior to this he held the position as Executive Vice President and Chief Financial Officer from

2010 - 2015. He has held several management positions in Equinor prior to this, including Senior Vice President in trading and

operations in the Natural gas business area in 2009 - 2010, Senior Vice President in Performance management and analysis

from 2007 - 2009, and from 2005 - 2007 he was Senior Vice President in Performance Management, Tax and M&A. From 1995 -

2004 Reitan held various positions in the Natural Gas business area and corporate functions.

Education:

Master of science degree from the Norwegian School of Economics and Business administration (NHH).

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Torgrim Reitan is a Norwegian citizen and resident in Norway.

Jannicke Nilsson

Position:

Executive Vice President, Safety, Security & Sustainability (SSU) since 1 June 2021.

Year of birth:

1965

External offices:

Member of the Board of Odfjell SE and Jotun A/S.

Number of shares in Equinor ASA:

63,106 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Since joining Equinor in 1999, Nilsson has held a number of central leadership position within operation, projects

and technology. From June 2021, Jannicke Nilsson has led the corporate function which shapes and safeguards Equinor’s efforts

on the areas of safety, security, and sustainability, including Equinor Energy Transition Plan. Prior to this role she was Executive

Vice President and Chief Operating Officer (COO) for five years. As COO she drove Equinor’s digital transformation and

delivered tangible results delivering on the company’s strategy. Nilsson has also been a program leader for a company-wide

efficiency programme running from 2014 – 2016.

Education:

MSc in Cybernetics and Process Automation and a BSc in Automation from the Rogaland Regional

College/University of Stavanger.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other:

Nilsson is a Norwegian citizen and resident in Norway.

Kjetil Hove

Position:

Executive Vice President, Exploration & Production Norway (EPN) since 1 January 2021

Year of birth:

1965

External offices:

Member of the Board of Offshore Norge

Number of shares in Equinor ASA:

23,861 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Hove joined Equinor in 1991. He has held several central management positions in Equinor. He comes from the

position of Senior Vice President Field Life Extension, which he held since January 2020. Prior to this, Hove was Senior Vice

President for Operations Technology in Development & Production Norway. From 2000 - 2012 he worked internationally,

including as Country Manager for Equinor in Brazil for 3.5 years. Hove started his career in 1991 in Norsk Hydro within petroleum

technology holding various positions within exploration, field development and operations in Norway.

Education:

Master’s degree in petroleum engineering from Norwegian University of Science and Technology (NTNU).

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Hove is a Norwegian citizen and resident in Norway.

Philippe François Mathieu

Position:

Executive Vice President, Exploration & Production International (EPI) since 1 January 2023

Year of birth:

1966

External offices:

None

Number of shares in Equinor ASA:

7,529 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Mathieu joined Equinor in 1995. He comes from the position of Senior Vice President Corporate Strategy, which he

had since October 2019. Mathieu has also held the Senior Vice President position for Joint Operations Support in Exploration and

Production Norway from 2016 – 2019, Corporate Finance from 2014 – 2016, and Business Development Midstream

Infrastructure from 2011 – 2014. Prior to the roles as Senior Vice President, Mathieu held several senior positions within

marketing and supply in commercializing gas contracts in both North Africa and Europe.

Education:

Civil Engineer degree from Ecole Nationale des Travaux Publics de l’Etat and a Master’s degree in Economics from

Université Lumière Lyon and from University of California, Berkeley.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Philippe Mathieu is a French citizen and resident in Norway.

Equinor 2023 Annual Report on Form 20-F 51

Geir Tungesvik

Position:

Executive Vice President, Projects, Drilling and Procurement (PDP) since 1 May 2022

Year of birth:

1961

External offices:

None

Number of shares in Equinor ASA:

20,702 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Geir Tungesvik joined Equinor in 1985. He comes from the position as Senior Vice President Project Development.

Previously he has held central management positions in the company including the position as Senior Vice President for Drilling

and Well, Vice President for exploration drilling, Vice President for Grane production field and Vice President for health, safety

and environment in Exploration.

Education:

Master of Science degree in petroleum from the University of Stavanger (UIS) and Master module in strategic

management from the Norwegian Business School (BI).

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Tungesvik is a Norwegian citizen and resident in Norway.

Irene Rummelhoff

Position:

Executive Vice President, Marketing, Midstream & Processing (MMP) since 17 August 2018

Year of birth:

1967

External offices:

Member of the board of Airbus SE

Number of shares in Equinor ASA:

31,872 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Rummelhoff joined Equinor in 1991. She has held a number of management positions within international business

development, exploration, and the downstream business in Equinor. Her most recent position, which she held from June 2015,

was as Executive Vice President New Energy Solutions (NES).

Education:

Master’s degree in Petroleum geosciences from the Norwegian Institute of Technology (NTH)

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Rummelhoff is a Norwegian citizen and resident in Norway.

Pål Eitrheim

Position:

Executive Vice President, Renewables (REN) since 17 August 2018

Year of birth:

1971

External offices:

Member of the board of the Confederation of Norwegian Enterprise (NHO) and Veidekke ASA.

Number of shares in Equinor ASA:

21,737 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Eitrheim joined Equinor in 1998. He has held a range of leadership positions in Equinor in Azerbaijan, Washington

DC, the CEO office, corporate strategy and Brazil. In 2017 - 2018 he was Chief Procurement Officer. Between 2014 - 2017 he led

Equinor’s upstream business in Brazil. In 2013 Eitrheim led the Secretariat for the investigation into the terrorist attack on the In

Amenas gas processing facility in Algeria.

Education:

Master's degree in Comparative Politics from the University of Bergen, Norway and University College Dublin,

Ireland.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Eitrheim is a Norwegian citizen and resident in Norway.

Hege Skryseth

Position:

Executive Vice President and Chief Technical Officer since 1 September 2022

Year of birth:

1967

External offices:

Member of the Board of Tomra and AutoStore

Number of shares in Equinor ASA:

5,364 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Skryseth joined Equinor on 1 September 2022. She comes from the position as Executive Vice President of

Kongsberg, and President of Kongsberg Digital, a position which she held since 2013. Prior to Kongsberg, Skryseth held various

leadership positions in international tech companies such as Microsoft and Geodata (ESRI).

Education:

Executive MBA from NHH and Bachelor from BI, college graduate from NITH.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Skryseth is a Norwegian citizen and resident in Norway.

Siv Helen Rygh Torstensen

Position:

Executive Vice President and General Counsel, Legal & Compliance (LEG) since 1 June 2021.

Year of birth:

1970

External offices:

Deputy chair of the Council of Ethics and member of the Government Pension Fund Global

Number of shares in Equinor ASA:

19,136 (as of 31 December 2023)

Loans from Equinor ASA:

None

Equinor 2023 Annual Report on Form 20-F 52

Experience:

Rygh Torstensen joined Equinor in 1998. She comes from the position of Senior Vice President and General

Counsel, which she held since 1 August 2019. Prior to that she held the position as Head of CEO office from July 2016. From

2011 - 2016 she was Vice President Corporate in LEG. From 1998 - 2011 Rygh Torstensen held various positions within LEG,

including as Corporate Compliance Office and Acting General Counsel. Before joining Equinor she worked with the law firm

Cappelen & Krefting DA and as a lawyer for Stavanger municipal council.

Education:

Master of Law from the University of Bergen, Norway, and licensed as an Attorney at Law.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Rygh Torstensen is a Norwegian citizen and resident in Norway.

Jannik Lindbæk

Position:

Executive Vice President Communication since 1 March 2022

Year of birth:

1965

External offices:

None

Number of shares in Equinor ASA:

11,592 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Lindbæk joined Equinor in 2010. He was appointed Senior Vice President Communication 1 January 2021. He was

Vice President Corporate Communications Political & Public Affairs Norway from 2019-2021. Prior to this he was Equinor’s Vice

President for communication in Brussels, before that in the CFO Global Business Services, and as Vice President Media

Relations from 2010-2015. Before joining Equinor, Lindbæk was SVP Corporate Communication in Aker Solutions, PR manager

in Microsoft and PR consultant in BWPR and GCI Monsen.

Education:

Master’s degree in Comparative Politics from the University of Bergen and London School of Economics.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Lindbæk is a Norwegian citizen and resident in Norway.

Aksel Stenerud

Position:

Executive Vice President, People & Organisation (PO) since 1 March 2022

Year of birth:

1963

External offices:

None

Number of shares in Equinor ASA:

11,642 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Stenerud joined Equinor in 2008 and has held various leadership roles across the company. His most recent

position, which he held from November 2021, was Vice President Employee Relations in Corporate PO. From August 2018, he

was Vice President for PO in Exploration and Production International. He has also served as Vice President for Exploration and

Production Norway from 2014-2018. Stenerud has had a long international career within HR and prior to this he served as an

officer in the Norwegian Airforce.

Education:

Graduate from the Air Defense academy. Minor and Intermediate in phsycology with the Norwegian university of

science and technology in Trondheim.

Family relations:

No family relations to other members of the Corporate Executive Committee, members of the Board or the

Corporate Assembly.

Other matters:

Stenerud is a Norwegian citizen and resident in Norway.

The information set forth in the Corporate Governance Report, section 8, under the heading “Corporate assembly” is also

incorporated herein by reference.

Equinor 2023 Annual Report on Form 20-F 53

B. Compensation

The information set forth under the following headings of the 2021 Remuneration Policy included as an appendix to the 2023

Remuneration Report is incorporated herein by reference:

●

 Remuneration to the board of directors; 

●

 Remuneration to the corporate assembly; and

●

 Remuneration to the CEC.

The information set forth under the following headings of the 2023 Remuneration Report is incorporated herein by reference:

●

 Overall company performance in 2023; 

●

 Performance-based modifiers used in calculating variable pay;

●

 Summary of targets and achievement of corporate KPIs and goals forming the basis for annual variable pay; 

●

 Key developments in corporate executive remuneration in 2023;

●

 Derogations and deviations from remuneration policy;

●

 Right to reclaim (‘malus and clawback’);

●

 Remuneration and share ownership of the board of directors and corporate assembly;

●

 Remuneration of the CEC;

●

 Shares awarded or due to the CEC in the reported financial year;

●

 Total number and value of shares held by the CEC; and

●

 Performance and AVP awarded to the CEC members in the reported financial year.

See also note 22 Pensions to the Consolidated financial statements.

C. Board Practices

The information set forth under the following headings of the of the 2023 Annual Report is incorporated herein by reference:

●

 Governing bodies in section 1.9 of Chapter 1 on pages 26 – 28; and

●

 Corporate executive committee (CEC) in section 1.9 of Chapter 1 on pages 29 –30.

The information set forth under the following headings of the 2023 Corporate Governance Report is also incorporated herein by

reference:

●

 Corporate Assembly, board of directors and corporate executive committee in Chapter 8 on pages 10 – 13; and

●

 The information set forth under the heading ‘The board of directors’ committees’ in Chapter 9 on pages 14 –16.

See also “Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management” of this 2023 Form 20-F

for more information regarding the expiration date of the current term of office of the members of our board of directors and the period

during which our directors have served in such capacity, and the composition of the board of directors’ committees.

D. Employees

The information set forth under the following headings of the 2023 Annual Report is incorporated herein by reference:

●

 Contextual introduction and Management approach in Section 2.2 of Chapter 2 on pages 82 – 84;

●

 The table entitled ‘Employment’ in Section 2.2 of Chapter 2 on page 87; and

●

 The table entitled ‘Employment and recruitment’ in Section 2.2 of Chapter 2 on page 85;

The following table show a breakdown of total workforce by region and employment type.

Equinor 2023 Annual Report on Form 20-F 54

Total workforce by region and employment type in the Equinor group in 2023

as of 31 December 2023

Geographic location

Permanent

employees

Consultants

Total

workforce

1)

Consultants (%)

Norway

 20,231 

 939 

 21,170 

 4 

Rest of Europe

 1,440 

 42 

 1,482 

 3 

Africa

 65 

 6 

 71 

 8 

Asia

 114 

 14 

 128 

 11 

North America

 733 

 64 

 797 

 8 

South America

 865 

 49 

 914 

 5 

Australia

 1 

 1 

 2 

 50 

Total

 23,449 

 1,115 

 24,564 

 5 

Non - OECD

 1,018 

 68 

 1,086 

 6 

1) Contractor personnel, defined as third-party service provides who work at our onshore and offshore

operations, are not included.

E. Share Ownership

The information set forth under the following headings of the 2023 Remuneration Report is incorporated herein by reference:

●

 Total number and value of shares held by the members of the board of directors;

●

 Shares held by the members of the corporate assembly; and

●

 Total number and value of shares held by the CEC.

F.

Disclosure of a registrant’s action to recover erroneously awarded compensation

Not applicable.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major shareholders

The information set forth under the heading “

Major shareholders

” in Section 5.1 of Chapter 5 on pages 260 – 261 of the 2023

Annual Report is incorporated herein by reference.

B. Related Party Transactions

As part of its general loan arrangement for Equinor employees, Equinor has granted loans to Equinor-employed spouses of

certain members of the corporate executive committee. Permanent employees in specified employee categories may take out a car

loan from Equinor in accordance with standardised provisions set by the company. The standard maximum car loan is limited to the

cost of the car, including registration fees, but not exceeding NOK 400,000. Employees outside the collective labour area are entitled

to a car loan up to NOK 600,000 (managers) or NOK 700,000 (vice presidents and senior vice presidents). The car loan is interest-

free, but the tax value, "interest advantage", must be reported as salary. Permanent employees of Equinor ASA may also apply for a

consumer loan up to NOK 350,000. The interest rate on consumer loans corresponds to the standard rate in effect at any time for

“reasonable loans” from employer as decided by the Norwegian Ministry of Finance, i.e., the lowest rate an employer may offer

without triggering taxation of the benefit for the employee.

The information set forth under the heading “

Equal treatment of shareholders and transactions with close associates

” in chapter 4

on pages 6-7 of the 2023 Corporate Governance Report is also incorporated herein by reference. See also note 27 Related parties to

the Consolidated financial statements.

C. Interests of Experts and Counsel

Not applicable.

Equinor 2023 Annual Report on Form 20-F 55

ITEM 8. FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

See “Item 18. Financial Statements” of this 2023 Form 20-

F.

Dividend policy and dividends

The information set forth under the heading ‘Capital distribution’ in Section 2.1 of Chapter 2 on page 41 of the 2023 Annual

Report is incorporated herein by reference. The information set forth under the heading ‘Equity and dividends’ in Chapter 3 on pages

5 – 6 of the 2023 Corporate Governance Report is also incorporated herein by reference.

See also note 20 Shareholders’ equity and dividends to the Consolidated financial statements.

Legal or arbitration proceedings

Equinor is involved in a number of proceedings globally concerning matters arising in connection with the conduct of its business.

Equinor does not believe such proceedings will, individually or in the aggregate, have a significant effect on Equinor’s financial

position, profitability, results of operations or liquidity. See also note 11 Income taxes and note 26 Other commitments, contingent

liabilities and contingent assets to the Consolidated Financial Statements for a description of certain proceedings, including updated

descriptions of litigation previously reported.

B. Significant Changes

None.

ITEM 9. THE OFFER AND LISTING

A. Offer and Listing Details

Equinor's shares have been listed on the Oslo Børs (ticker: EQNR) and the New York Stock Exchange in the form of American

Depositary Shares (ADS) (ticker: EQNR) since our initial public offering on 18 June 2001. The ADSs traded on the New York Stock Exchange

are evidenced by American Depositary Receipts (ADR), and each ADS represents one ordinary share.

B. Plan of Distribution

Not applicable.

C. Markets

See “Item 9.A

―The Offer and Listing―Offer and Listing Details” of this 2023

 Form 20-

F.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F.

Expenses of the Issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

Equinor 2023 Annual Report on Form 20-F 56

B. Memorandum and Articles of Association

Equinor's current articles of association were adopted at the annual general meeting of shareholders on 10 May 2023. The

articles of association are included as exhibit 1 to this 2023 Form 20-

F.

Summary of Equinor’s articles of association:

Name of the company

The registered name is Equinor ASA. Equinor is a Norwegian public limited company.

Registered office

Equinor’s registered office is in Stavanger, Norway, registered with the Norwegian Register of Business Enterprises under

number 923 609 016.

Objective of the company

The objective of Equinor ASA is to develop, produce and market various forms of energy and derived products and services, as

well as other business. The activities may also be carried out through participation in or cooperation with other companies.

Share capital

Equinor’s share capital is NOK 7,507,761,512.50 divided into 3,003,104,605 shares.

Nominal value of shares

The nominal value of each ordinary share is NOK 2.50.

Board of directors

Equinor’s articles of association provide that the board of directors shall consist of 9 - 11 directors. The board, including the chair

and the deputy chair, shall be elected by the corporate assembly for a period of up to two years.

Corporate assembly

Equinor has a corporate assembly comprising 18 members who are normally elected for a term of two years. The general

meeting elects 12 members with four deputy members, and six members with deputy members are elected by and among the

employees.

General meetings of shareholders

Equinor’s annual general meeting is held no later than 30 June each year. The annual general meeting shall address and decide

adoption of the annual report and accounts, including the distribution of any dividend and any other matters required by law or the

articles of association.

Documents related to the general meetings do not need to be sent to all shareholders if they are accessible on Equinor’s website.

A shareholder may request that such documents be sent to him/her.

Shareholders may vote in writing, including through electronic communication, during a specified period before the general

meeting. Equinor's board of directors adopted guidelines for advance voting in March 2012, and these guidelines are described in the

notices of the annual general meetings.

Marketing of petroleum on behalf of the Norwegian State

Equinor’s articles of association provide that Equinor is responsible for marketing and selling petroleum produced under the

State’s direct financial interest’s (SDFI) shares in production licences on the Norwegian continental shelf as well as petroleum

received by the Norwegian State paid as royalty together with its own production. Equinor’s general meeting adopted an instruction in

respect of such marketing on 25 May 2001, as most recently amended by authorisation of the annual general meeting on 15 May

2018.

Nomination committee

The tasks of the nomination committee are to present a recommendation to:

●

The general meeting regarding the election of shareholder-elected members and deputy members of the corporate assembly.

●

The general meeting regarding the election of members of the nomination committee.

●

The general meeting for the remuneration of members of the corporate assembly and the nomination committee. 

●

The corporate assembly regarding the election of shareholder-elected members to the board of directors.

●

The corporate assembly for the remuneration for members of the board of directors.

●

The corporate assembly for election of the chair and the deputy chair of the corporate assembly.

The general meeting may adopt instructions for the nomination committee.

Equinor 2023 Annual Report on Form 20-F 57

Exhibit 2.1 to this 2023 Form 20-F is also incorporated herein by reference.

C. Material Contracts

Equinor is the technical service provider (TSP) for the Kårstø and Kollsnes gas processing plants in accordance with the technical service

agreement between Equinor and Gassco AS. Equinor holds an ownership interest in Vestprosess (34%), which transports and processes NGL

and condensate. Vestprosess is also operated by Gassco, with Equinor as TSP. The technical services agreement between Gassco AS and

Equinor is included as Exhibit 4(a)(i), along with the amendments thereto in Exhibit 4(a)(ii), to this 2023 Form 20-

F.

See also note 27 Related parties to the Consolidated financial statements.

D. Exchange controls

Under Norwegian foreign exchange controls currently in effect, transfers of capital to and from Norway are not subject to prior

government approval. An exception applies to the physical transfer of payments in currency exceeding certain thresholds, which must

be declared to the Norwegian custom authorities. This means that non-Norwegian resident shareholders may receive dividend

payments without Norwegian exchange control consent as long as the payment is made through a licensed bank or other licensed

payment institution.

There are no restrictions affecting the rights of non-Norwegian residents or foreign owners who hold our shares to receive

dividends, interest or other similar payments.

E. Taxation

Norwegian tax consequences

This section describes material Norwegian tax consequences for shareholders in connection with the acquisition, ownership

and disposal of shares and American Depositary Shares (“ADS”) in Equinor. The term “shareholders” refers to both holders of

shares and holders of ADSs, unless otherwise explicitly stated.

The outline does not provide a complete description of all Norwegian tax regulations that might be relevant for the individual

shareholder. The outline is based on current law and practice, but these laws and practice are subject to change, possibly also on

a retroactive basis. Thus, the actual tax consequences for a shareholder may differ from the description set out below.

Shareholders should consult their professional tax advisers for advice about the specific tax consequences of owning and

disposing of shares or ADSs in Equinor in their particular situation, in case special regulations may apply.

Taxation of dividends received by Norwegian shareholders

Corporate shareholders (i.e., limited liability companies and similar entities) residing in Norway for tax purposes are generally

subject to tax in Norway on dividends received from Equinor in the year the dividend is declared. For the tax year 2023, only 3% of

the dividends received is subject to tax at the ordinary income tax rate of 22% (the tax rate is 25% for entities subject to the

finance tax). The effective tax rate for dividends received by corporate shareholders is thus 0.66% (3% x 22%) for ordinary

corporations and 0.75% (3% x 25%) for entities subject to the finance tax. As of today, the same tax rates will apply for the tax

year 2024. 

Individual shareholders residing in Norway for tax purposes are subject to tax in Norway for dividends received from Equinor

exceeding a tax-free allowance (the tax-free allowance is described below). Dividends exceeding the tax-free allowance are

generally included in the individual’s ordinary taxable income in the year the dividend is declared. For the tax year 2023, dividend

income exceeding the tax-free allowance is grossed up with a factor of 1.72 before being included in the ordinary taxable income,

resulting in an effective tax rate of 37.84% (22% x 1.72). As of today, the same tax rates will apply for the tax year 2024.

The tax-free allowance is computed for each individual share or ADS. The annual tax-free allowance equals the allowance

basis multiplied by a risk-free interest rate set annually by the tax authorities. The allowance basis is equal to the acquisition cost

for such share or ADS, as adjusted with inter alia any repayment of capital and any unused allowance. If the calculated allowance

for one year exceeds the dividend distributed on the share or ADS, the excess (the “unused allowance”) may be carried forward

and set off against future dividends received on the same share or ADS (or gains upon the realisation of the same share or ADS,

see below). Any unused allowance will also be added to the allowance basis for such share or ADS and thus increase the tax-free

allowance in the following year until the unused allowance has been utilised.

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in Equinor through a stock

savings account. Dividend on shares owned through the stock savings account is only taxable when the dividend is withdrawn

from the account.

Taxation of dividends received by foreign shareholders

Equinor 2023 Annual Report on Form 20-F 58

Non-resident shareholders are as a starting point subject to Norwegian withholding tax in the tax year 2023 at a rate of 25%

on dividends from Norwegian companies. The distributing company is responsible for deducting the withholding tax upon

distribution to non-resident shareholders. As of today, the same withholding tax rate will apply for the tax year 2024.

Corporate shareholders that carry on business activities in Norway, and whose shares or ADSs are effectively connected with

such activities are not subject to withholding tax. For such shareholders, 3% of the received dividends are in the tax year 2023

subject to the standard income tax of 22% (25% for companies subject to the finance tax). As of today, the same tax rate will

apply for the tax year 2024.

Certain other important exceptions and modifications are outlined below.

The withholding tax does not apply to corporate shareholders in the EEA that are comparable to Norwegian limited liability

companies or certain other types of Norwegian entities, and are further able to demonstrate that they are genuinely established

and carry on genuine economic business activity within the EEA.

The withholding rate of 25% is often reduced in tax treaties between Norway and other countries. The reduced withholding

tax rate will generally only apply to dividends paid on shares held by shareholders who are able to properly demonstrate that they

are the beneficial owner and entitled to the benefits of the tax treaty.

Individual shareholders residing for tax purposes in the EEA may apply to the Norwegian tax authorities for a refund if the tax

withheld by the distributing company exceeds the tax that would have been levied on individual shareholders resident in Norway.

Individual shareholders residing for tax purposes in the EEA may hold the listed shares (but not ADS) in Equinor through a

Norwegian stock savings account. Dividend on shares owned through the stock savings account will only be subject to withholding

tax when withdrawn from the account.

Procedure for claiming a reduced withholding tax rate on dividends

A foreign shareholder that is entitled to an exemption from or reduction of withholding tax on dividends, may request that the

exemption or reduction is applied at source by the distributor. Such request must be accompanied by satisfactory documentation

which supports that the foreign shareholder is entitled to a reduced withholding tax rate. Specific documentation requirements

apply.

For holders of shares and ADSs deposited with JPMorgan Chase Bank N.A. (JPMorgan), documentation establishing that the

holder is eligible for the benefits under a tax treaty with Norway, may be provided to JPMorgan. JPMorgan has been granted

permission by the Norwegian tax authorities to receive dividends from us for redistribution to a beneficial owner of shares and

ADSs at the applicable treaty withholding rate.

The statutory 25% withholding tax rate will be levied on dividends paid to shareholders (either directly or through a

depositary) who have not provided the relevant documentation to the relevant party that they are eligible for a reduced rate.

Shareholders that believe they are eligible for a reduced rate will in this case have to apply to Skatteetaten (The Norwegian Tax

Administration) for a refund of the excess amount of tax withheld. Please refer to the tax authorities’ web page for more

information and the requirements of such application: skatteetaten.no (Reduced withholding tax on share dividends for foreign

shareholders – The Norwegian Tax Administration).

Taxation on realisation of shares and ADSs

Corporate shareholders resident in Norway for tax purposes are not subject to tax in Norway on gains derived from the sale,

redemption or other disposal of shares or ADSs in Equinor. On the other hand, corporate shareholders resident in Norway are not

allowed any deduction for losses on shares or ADS in Equinor.

Individual shareholders residing in Norway for tax purposes are subject to tax in Norway on the sale, redemption or other

disposal of shares or ADSs. Taxable gains or losses in connection with such realisation are included in the individual's ordinary

taxable income in the year of disposal. In the tax year 2023, the taxable gain or loss on the realised shares or ADSs is grossed up

with a factor of 1.72 before it is included in the ordinary taxable income, resulting in an effective tax rate of 37.84% (22% x 1.72). 

As of today, the same tax rate will apply to gains and losses realised in the tax year 2024.

The taxable gain or deductible loss (before grossing up) is calculated as the sales price adjusted for transaction expenses

minus the taxable basis. A shareholder's tax basis is normally equal to the acquisition cost of the shares or ADSs (as adjusted with

inter alia any repayment of capital). Any unused allowance pertaining to a share or ADS may be deducted from a taxable gain on

the same share or ADS but may not lead to or increase a deductible loss. Furthermore, any unused allowance may not be set off

against gains from the realisation of other shares or ADSs held by the shareholder.

If a shareholder disposes of shares or ADSs acquired at different times, the shares or ADSs that were first acquired will be

deemed to be first sold (the “FIFO” principle) when calculating the gain or loss for tax purposes.

Equinor 2023 Annual Report on Form 20-F 59

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in Equinor through a stock

savings account. Gain on shares owned through the stock savings account will only be taxable when withdrawn from the account

whereas loss on shares will be deductible when the account is terminated.

A corporate shareholder or an individual shareholder who ceases to be tax resident in Norway due to Norwegian law or tax

treaty provisions may, in certain circumstances, become subject to Norwegian exit taxation on unrealised capital gains related to

shares or ADSs.

Shareholders not residing in Norway are generally not subject to tax in Norway on capital gains, and losses are not deductible

on the sale, redemption or other disposal of shares or ADSs in Equinor, unless the shareholder carries on business activities in

Norway and such shares or ADSs are or have been effectively connected with such activities.

Wealth tax

The shares or ADSs are included in the basis for the computation of wealth tax imposed on individuals residing in Norway for

tax purposes. Norwegian limited liability companies and certain similar entities are not subject to wealth tax.

For the tax year 2023, the net wealth tax is 1.0% for net worth above a minimum threshold of NOK 1,700,000, and 1.1% for

net worth above a minimum threshold of NOK 20,000,000. The assessment value of listed shares (including ADSs) is 80% of the

listed value of such shares or ADSs on 1 January 2024. As of today, the same rates and thresholds will apply for the tax year

2024.

Non-resident shareholders are not subject to wealth tax in Norway for shares and ADSs in Norwegian limited liability

companies unless the shareholder is an individual and the shareholding is effectively connected with the individual's business

activities in Norway.

Inheritance tax and gift tax

No inheritance or gift tax is imposed in Norway.

Transfer tax

No transfer tax is imposed in Norway in connection with the sale or purchase of shares or ADSs.

United States tax matters

This section describes the material United States federal income tax consequences for US holders (as defined below) of the

ownership and disposition of shares or ADSs. It only applies to you if you hold your shares or ADSs as capital assets for United

States federal income tax purposes. This discussion addresses only United States federal income taxation and does not discuss

all of the tax consequences that may be relevant to you in light of your individual circumstances, including foreign, state or local

tax consequences, estate and gift tax consequences, and tax consequences arising under the Medicare contribution tax on net

investment income or the alternative minimum tax. This section does not apply to you if you are a member of a special class of

holders subject to special rules, including dealers in securities, traders in securities that elect to use a mark-to-market method of

accounting for securities holdings, tax-exempt organisations, insurance companies, partnerships or entities or arrangements that

are treated as partnerships for United States federal income tax purposes, persons that actually or constructively own 10% of the

combined voting power of voting stock of Equinor or of the total value of stock of Equinor, persons that hold shares or ADSs as

part of a straddle or a hedging or conversion transaction, persons that purchase or sell shares or ADSs as part of a wash sale for

tax purposes, or persons whose functional currency is not USD.

This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed

regulations, published rulings and court decisions, all as currently in effect, and the Convention between the United States of

America and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to

Taxes on Income and Property (the “Treaty”). These laws are subject to change, possibly on a retroactive basis. In addition, this

section is based in part upon the representations of the depositary and the assumption that each obligation in the deposit

agreement and any related agreement will be performed in accordance with its terms. For United States federal income tax

purposes, if you hold ADRs evidencing ADSs, you will generally be treated as the owner of the shares represented by those

ADRs. Exchanges of shares for ADRs and ADRs for shares will not generally be subject to United States federal income tax.

A “US holder” is a beneficial owner of shares or ADSs that is, for United States federal income tax purposes: (i) a citizen or

resident of the United States; (ii) a United States domestic corporation; (iii) an estate whose income is subject to United States

federal income tax regardless of its source; or (iv) a trust if a United States court can exercise primary supervision over the trust's

administration and one or more United States persons are authorised to control all substantial decisions of the trust.

You should consult your own tax adviser regarding the United States federal, state and local and Norwegian and other tax

consequences of owning and disposing of shares and ADSs in your particular circumstances.

Equinor 2023 Annual Report on Form 20-F 60

The tax treatment of the shares or ADSs will depend in part on whether or not we are classified as a passive foreign

investment company, or PFIC, for United States federal income tax purposes. Except as discussed below, under “—PFIC rules”,

this discussion assumes that we are not classified as a PFIC for United States federal income tax purposes.

Taxation of distributions

Under the United States federal income tax laws, the gross amount of any distribution (including any Norwegian tax withheld

from the distribution payment) paid by Equinor out of its current or accumulated earnings and profits (as determined for United

States federal income tax purposes), other than certain pro-rata distributions of its shares, will be treated as a dividend that is

taxable for you when you, in the case of shares, or the depositary, in the case of ADSs, receive the dividend, actually or

constructively. If you are a non-corporate US holder, dividends that constitute qualified dividend income will be eligible to be taxed

at the preferential rates applicable to longterm capital gains as long as, in the year that you receive the dividend, the shares or

ADSs are readily tradable on an established securities market in the United States or Equinor is eligible for benefits under the

Treaty. We believe that Equinor is currently eligible for the benefits of the Treaty and we therefore expect that dividends on the

ordinary shares or ADSs will be qualified dividend income. To qualify for the preferential rates, you must hold the shares or ADSs

for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meet certain other

requirements. The dividend will not be eligible for the dividends-received deduction generally allowed to United States

corporations in respect of dividends received from other United States corporations.

The amount of the dividend distribution that you must include in your income will be the value in USD of the payments made

in NOK determined at the spot NOK/USD rate on the date the dividend is distributed, regardless of whether or not the payment is

in fact converted into USD. Distributions in excess of current and accumulated earnings and profits, as determined for United

States federal income tax purposes, will be treated as a non-taxable return of capital to the extent of your tax basis in the shares

or ADSs and, to the extent in excess of your tax basis, will be treated as capital gain. However, Equinor does not expect to

calculate earnings and profits in accordance with United States federal income tax principles. Accordingly, you should expect to

generally treat distributions we make as dividends.

Subject to certain limitations, the 15% Norwegian tax withheld in accordance with the Treaty and paid to Norway will be

creditable or deductible against your United States federal income tax liability, unless a reduction or refund of the tax withheld is

available to you under Norwegian law. Special rules apply in determining the foreign tax credit limitation with respect to dividends

that are subject to the preferential tax rates.

Dividends will generally be income from sources outside the United States and will generally be “passive” income for

purposes of computing the foreign tax credit allowable to you. Any gain or loss resulting from currency exchange rate fluctuations

during the period from the date you include the dividend payment in income until the date you convert the payment into USD will

generally be treated as US-source ordinary income or loss and will not be eligible for the special tax rate applicable to qualified

dividend income.

Taxation of capital gains

If you sell or otherwise dispose of your shares or ADSs, you will generally recognise a capital gain or loss for United States

federal income tax purposes equal to the difference between the value in USD of the amount that you realise and your tax basis,

determined in USD, in your shares or ADSs. Capital gain of a non-corporate US holder is generally taxed at preferential rates if

the property is held for more than one year. The gain or loss will generally be income or loss from sources within the United States

for foreign tax credit limitation purposes. If you receive any foreign currency on the sale of shares or ADSs, you may recognise

ordinary income or loss from sources within the United States as a result of currency fluctuations between the date of the sale of

the shares or ADSs and the date the sales proceeds are converted into USD. You should consult your own tax adviser regarding

how to account for payments made or received in a currency other than USD.

PFIC rules

We believe that the shares and ADSs should not currently be treated as stock of a PFIC for United States federal income tax

purposes and we do not expect to become a PFIC in the foreseeable future. However, this conclusion is a factual determination

that is made annually and thus may be subject to change. It is therefore possible that we could become a PFIC in a future taxable

year.

In general, we will be a PFIC in a taxable year if:

●

at least 75% of our gross income for the taxable year is passive income or 

●

at least 50% of the value, determined on the basis of a quarterly average, of our assets in such taxable year is attributable to

assets that produce or are held for the production of passive income. 

“Passive income” generally includes dividends, interest, gains from the sale or exchange of investment property rents and

royalties (other than certain rents and royalties derived in the active conduct of a trade or business) and certain other specified

categories of income. If a foreign corporation owns at least 25% by value of the stock of another corporation, the foreign

corporation is treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation, and

Equinor 2023 Annual Report on Form 20-F 61

as receiving directly its proportionate share of the other corporation's income.

If we were to be treated as a PFIC, you will generally be subject to special rules with respect to:

●

any gain you realise on the sale or other disposition of your shares or ADSs and

●

any excess distribution that we make to you (generally, any distributions to you during a single taxable year, other than the

taxable year in which your holding period in the shares or ADSs begins, that are greater than 125% of the average annual

distributions received by you in respect of the shares or ADSs during the three preceding taxable years or, if shorter, your

holding period for the shares or ADSs that preceded the taxable year in which you receive the distribution). 

Under these rules:

●

the gain or excess distribution will be allocated ratably over your holding period for the shares or ADSs,

●

the amount allocated to the taxable year in which you realized the gain or excess distribution or to prior years before the first

year in which we were a PFIC with respect to you will be taxed as ordinary income,

●

the amount allocated to each other prior year will be taxed at the highest tax rate in effect for that year, and

●

the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each

such year.

Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC.

Unless you make certain elections, your shares or ADSs will generally be treated as stock in a PFIC if we were a PFIC at any

time during your holding period in your shares or ADSs, even if we are not currently a PFIC. 

In addition, notwithstanding any election you make with regard to the shares or ADSs, dividends that you receive from us will

not constitute qualified dividend income to you if we are a PFIC (or are treated as a PFIC with respect to you) either in the taxable

year of the distribution or the preceding taxable year. Dividends that you receive that do not constitute qualified dividend income

are not eligible for taxation at the preferential rates applicable to qualified dividend income. Instead, you must include the gross

amount of any such dividend paid by us out of our accumulated earnings and profits (as determined for United States federal

income tax purposes) in your gross income, and it will be subject to tax at rates applicable to ordinary income.

If you own shares or ADSs during any year that we are a PFIC with respect to you, you may be required to file Internal Revenue

Service (“IRS”) Form 8621.

Foreign Account Tax Compliance Withholding

A 30% withholding tax will be imposed on certain payments to certain non-US financial institutions that fail to comply with

information reporting requirements or certification requirements in respect of their direct and indirect United States shareholders

and/or United States accountholders. To avoid becoming subject to the 30% withholding tax on payments to them, we and other

non-US financial institutions may be required to report information to the IRS regarding the holders of shares or ADSs and to

withhold on a portion of payments under the shares or ADSs to certain holders that fail to comply with the relevant information

reporting requirements (or hold shares or ADSs directly or indirectly through certain non-compliant intermediaries). However,

under proposed Treasury regulations, such withholding will not apply to payments made before the date that is two years after the

date on which final regulations defining the term “foreign passthru payment” are enacted. The rules for the implementation of

these requirements have not yet been fully finalised, so it is impossible to determine at this time what impact, if any, these

requirements will have on holders of the shares and ADSs.

F.

Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov. We also make available on

our website, free of charge, our annual reports on Form 20-F, as well as certain other SEC filings, as soon as reasonably practicable

after they are electronically filed with or furnished to the SEC. The information on our website is not incorporated by reference in this

document.

Documents related to us that are available to the public (this 2023 Form 20-F, the 2023 Annual Report, our Articles of

Association, our Code of Conduct, financial statements and our historical financial information for each of the three financial years

preceding the publication of this 2023 Form 20-F) can be consulted on our website and at: Equinor ASA, Forusbeen 50, 4035

Stavanger, Norway. Unless stated otherwise, none of these documents form a part of this 2023 Form 20-

F.

Equinor 2023 Annual Report on Form 20-F 62

I. Subsidiary Information

Not applicable.

J. Annual Report to Security Holders.

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See notes 4 Financial risk and capital management and 28 Financial instruments and fair value measurement to the

Consolidated financial statements.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

Not applicable.

B. Warrants and Rights

Not applicable.

C. Other Securities

Not applicable.

D. American Depositary Shares

Exhibit 2.1 to this 2023 Form 20-F is incorporated herein by reference.

Name of depositary and address of its principal executive office.

JPMorgan Chase Bank N.A. (JPMorgan), serves as the depositary for Equinor’s ADR programme having replaced the Deutsche

Bank Trust Company Americas (Deutsche Bank) pursuant to the Further Amended and Restated Deposit Agreement dated 4

February 2019.

Fees and charges payable by a holder of ADSs

JPMorgan collects its fees for the delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs

for the purpose of withdrawal, or from intermediaries acting for them. The depositary collects other fees from investors by billing ADR

holders, by deducting such fees and charges from the amounts distributed or by deducting such fees from cash dividends or other

cash distributions. The depositary may refuse to provide fee-attracting services until its fees for those services are paid.

The charges of the depositary payable by investors are as follows:

ADR holders, persons depositing or withdrawing shares, and/or persons whom ADSs are

issued, must pay:

For:

USD 5.00 (or less) per 100 ADSs (or portion of 100 ADSs)

Issuance of ADSs, including issuances resulting from a

deposit of shares, a distribution of shares or rights or other

property, and issuances pursuant to stock dividends, stock

splits, mergers, exchanges of securities or any other

transactions or events affecting the ADSs or the deposited

securities.

Cancellation of ADSs for the purpose of withdrawal of

deposited securities, including if the deposit agreement

terminates, or a cancellation or reduction of ADSs for any

other reason

USD 0.05 (or less) per ADS

Any cash distribution made or elective cash/stock dividend

offered pursuant to the Deposit Agreement

USD 0.05 (or less) per ADS, per calendar year (or portion thereof)

For the operation and maintenance costs in administering

the ADR programme

A fee equivalent to the fee that would be payable if securities distributed to you had been shares

and the shares had been deposited for issuance of ADSs

Distribution to registered ADR holders of (i) securities

distributed by the company to holders of deposited

securities or (ii) cash proceeds from the sale of such

securities

Equinor 2023 Annual Report on Form 20-F 63

Registration or transfer fees

Transfer and registration of shares on our share register to

or from the name of the Depositary or its agent when you

deposit or withdraw shares

Expenses of the Depositary

SWIFT, cable, telex, facsimile transmission and delivery

charges (as provided in the deposit agreement).

Fees, expenses and other charges of JPMorgan or its

agent (which may be a division, branch or affiliate) for

converting foreign currency to USD, which shall be

deducted out of such foreign currency.

Taxes and other governmental charges the Depositary or the custodian have to pay, for example,

stock transfer taxes, stamp duty or withholding taxes

As necessary

Any fees, charges and expenses incurred by the Depositary or its agents for the servicing of the

deposited securities, the sale of securities, the delivery of deposited securities or in connection with

the depositary's or its custodian's compliance with applicable law, rule or regulation, including

without limitation expenses incurred on behalf of ADR holders in connection with compliance with

foreign exchange control regulations or any law or regulation relating to foreign investment

As necessary

Direct and indirect payments by the depositary

For the year ended 31 December 2023, J.P. Morgan reimbursed USD 2,000,000 to the company. Other reasonable costs

associated with the administration of the ADR programme are borne by the company. For the year ended 31 December 2023, such

costs, associated with the administration of the ADR programme, paid by the company, added up to USD 272,095. Under certain

circumstances, including the removal of J.P. Morgan as depositary, the company is required to repay to J.P. Morgan certain amounts

paid to the company in prior periods.

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Equinor, with the participation of our chief executive officer and chief financial officer, has evaluated the

effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of

31 December 2023. Based on that evaluation, the chief executive officer and chief financial officer have concluded that these

disclosure controls and procedures are effective at a reasonable level of assurance.

In designing and evaluating our disclosure controls and procedures, our management, with the participation of the chief executive

officer and chief financial officer, recognised that any controls and procedures, no matter how well designed and operated, can only

provide reasonable assurance that the desired control objectives will be achieved, and that the management must necessarily

exercise judgment when evaluating possible controls and procedures. Because of the limitations inherent in all control systems, no

evaluation of controls can provide absolute assurance that all control issues and any instances of fraud in the company have been

detected.

Management’s Annual Report on Internal Control Over Financial Reporting

The management of Equinor is responsible for establishing and maintaining adequate internal control over financial reporting.

Our internal control over financial reporting is a process designed, under the supervision of the chief executive officer and chief

financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Equinor’s

financial statements for external reporting purposes in accordance with IFRS Accounting Standards as adopted by the European

Union (EU). The accounting policies applied by the group also comply with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB).

The management of Equinor has assessed the effectiveness of internal control over financial reporting based on the Internal

Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based on this assessment, management has concluded that Equinor’s internal control over financial reporting as of 31 December

2023 was effective. 

Equinor 2023 Annual Report on Form 20-F 64

Equinor’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that,

in reasonable detail, accurately and fairly reflect transactions and dispositions of assets, provide reasonable assurance that

transactions are recorded in the manner necessary to permit the preparation of financial statements in accordance with IFRS

Accounting Standards, and that receipts and expenditures are only carried out in accordance with the authorisation of the

management and directors of Equinor; and provide reasonable assurance regarding the prevention or timely detection of any

unauthorised acquisition, use or disposition of Equinor’s assets that could have a material effect on our financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Moreover,

projections of any evaluation of the effectiveness of internal control to future periods are subject to a risk that controls may become

inadequate because of changes in conditions and that the degree of compliance with policies or procedures may deteriorate. 

Attestation Report of the Registered Public Accounting Firm

The effectiveness of internal control over financial reporting as of 31 December 2023 has been audited by Ernst & Young AS, an

independent registered accounting firm that also audits Equinor’s Consolidated financial statements. Their audit report on the internal

control over financial reporting is included in the Consolidated financial statements.

Changes in Internal Control Over Financial Reporting

There were no significant changes in our internal control over financial reporting during the year ended 31 December 2023 that

have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

Our board of directors has determined that both Anne Drinkwater and Rebekka Glasser Herlofsen qualify as an “audit committee

financial expert” as defined in Item 16A of Form 20-F under the Exchange Act and each of them is an independent director under Rule

10A-3 under the Exchange Act.

ITEM 16B. CODE OF ETHICS

We have adopted a Code of Conduct, which is approved by our board of directors, and applies to our board members, all of our

employees (including our principal executive, principal financial and principal accounting officers) and hired personnel. Our Code of

Conduct is filed as Exhibit 11 to this 2023 Form 20-

F.

In 2023, our board of directors approved certain amendments to our Code of Conduct, including:

- Updates to sections related to harassment, bullying and discrimination; and

- Updates referencing internal control over financial reporting requirements as an important part of financial reporting.

In 2023, we did not grant any waiver, including any implicit waiver, from any provision of the Code of Conduct to our principal

executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. 

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information set forth under the heading “

External auditor

” in chapter 15 on pages 18 – 19 of the 2023 Corporate Governance

Report is incorporated herein by reference. See also note 9 Auditor’s remuneration and Research and development expenditures to

the Consolidated financial statements.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

See “Item 16G. Corporate Governance―Board committees” of this 2023 Form 20-

F.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

The information set forth under the headings “

Equinor’s share incentive plans

”, “

Share buybacks

” and “

Summary of share

buybacks

”

in Section 5.1 of Chapter 5 on pages 261 – 263 of the 2023 Annual Report is also incorporated herein by reference.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Equinor 2023 Annual Report on Form 20-F 65

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

Equinor’s primary listing is on Oslo Børs. The American Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE). In addition, Equinor is a foreign private issuer subject to the reporting requirements of the SEC. ADRs representing the

company’s ordinary shares are listed on the NYSE. While Equinor’s corporate governance practices follow the requirements of

Norwegian law, Equinor is also subject to the NYSE’s listing rules. As a foreign private issuer, Equinor is exempt from most of the

NYSE corporate governance standards that domestic US companies must comply with. However, Equinor is required to disclose any

significant ways in which its corporate governance practices differ from those applicable to domestic US companies under the NYSE

rules. A statement of differences is set out below:

Corporate governance guidelines

The NYSE rules require domestic US companies to adopt and disclose corporate governance guidelines. Equinor’s corporate

governance principles are developed by the management and the board of directors, in accordance with the Norwegian Code of

Practice for Corporate Governance and applicable law. Oversight of the board of directors and management is exercised by the

corporate assembly.

Director independence

The NYSE rules require domestic US companies to have a majority of “independent directors”. The NYSE definition of an

“independent director” sets out five specific tests of independence and requires an affirmative determination by the board of directors

that the director has no material relationship with the company.

Pursuant to Norwegian company law, Equinor’s board of directors consists of members elected by the corporate assembly both

for shareholder and employee representatives. Equinor’s board of directors has determined that, in its judgment, all shareholder

representatives are independent. In making its determinations of independence, the board focuses, among other things, on there not

being any conflicts of interest between shareholders, the board of directors and the company’s management. It does not strictly make

its determination based on the NYSE’s five specific tests but takes into consideration all relevant circumstances which may in the

board’s view affect the directors’ independence. The directors elected from among Equinor’s employees would not be considered

independent under the NYSE rules as they are employees of Equinor. None of these employee representatives are executive officers

of the company. For further information about the board of directors, see “Item 6. Directors, Senior Management and Employees—A.

Directors and Senior Management” of this 2023 Form 20-

F.

Board committees

Pursuant to Norwegian company law, managing the company is the responsibility of the board of directors. Equinor has an audit

committee, a safety, sustainability and ethics committee and a compensation and executive development committee. The audit

committee and the compensation and executive development committee operate pursuant to instructions that are broadly comparable

to the applicable committee charters required by the NYSE rules. They report on a regular basis to, and are subject to, oversight by

the board of directors.

Equinor complies with the NYSE rule regarding the obligation to have an audit committee that meets the requirements of Rule

10A-3 of the US Securities Exchange Act of 1934. The members of Equinor’s audit committee include an employee representative

director. Equinor relies on the exemption provided in Rule 10A-3(b)(1)(iv)(C) from the independence requirements of the US Securities

Exchange Act of 1934 with respect to the employee representative director. Equinor does not believe that its reliance on this

exemption will materially adversely affect the ability of the audit committee to act independently or to satisfy the other requirements of

Rule 10A-3 relating to audit committees. The other members of the audit committee meet the independence requirements under Rule

10A-3.

Among other things, the audit committee evaluates the qualifications and independence of the company’s external auditor.

However, in accordance with Norwegian law, the auditor is elected by the annual general meeting of the company’s shareholders.

Equinor does not have a nominating/corporate governance committee formed from its board of directors. Instead, the roles prescribed

under the NYSE rules for such committee are principally carried out by the corporate assembly and the nomination committee. The

nomination committee is elected by the general meeting of shareholders, while the corporate assembly is elected partly by the general

meeting of shareholders and partly by and among the employees. 

NYSE rules require the compensation committee of US companies to comprise independent directors, recommend senior

management remuneration and determine the independence of advisors when engaging them. Equinor, as a foreign private issuer, is

exempted from complying with these rules and is permitted to follow its home country regulations. The compensation committee

consists of four shareholder representatives and one employee representative. Equinor’s compensation committee makes

recommendations to the board regarding management remuneration, including that of the CEO. Further, the compensation committee

assesses its own performance and has the authority to hire external advisors. The nomination committee, which is elected by the

general meeting of shareholders, recommends to the corporate assembly the candidates and remuneration of the board of directors.

Equinor 2023 Annual Report on Form 20-F 66

The nomination committee also recommends to the general meeting of shareholders the candidates and remuneration for the

nomination committee and the shareholder representative candidates and remuneration for the corporate assembly. 

Shareholder approval of equity compensation plans

NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to a shareholder vote.

Under Norwegian company law, although the issuance of shares and authority to buy-back company shares must be approved by

Equinor’s annual general meeting of shareholders, the approval of equity compensation plans is normally reserved for the board of

directors.

ITEM 16H. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

ITEM 16J. INSIDER TRADING POLICIES

Not applicable.

ITEM 16K. CYBERSECURITY DISCLOSURE

Cyber security Risk Management and Strategy

Our processes for assessing, identifying and managing material risks from cyber security threats are integrated into our enterprise risk

management (ERM) framework, which we use to identify, analyze, evaluate and manage risks. We recognize that risks from cyber

security threats are interconnected and company-wide, so we seek to ensure shared situational awareness and common prioritization

across different business areas. As described further below under “Cyber security Governance”, we have a cross-departmental

approach to addressing cyber security risk, which includes our employees, management and board of directors.

We use a variety of tools and processes to identify, assess and manage material cyber security risks. We identify cyber security risks

based on an evaluation of various cyber security threat scenarios that may cause disruption to our business or operations. These

scenarios are developed to represent incremental levels of severity of the estimated monetary, reputational, safety, security or

sustainability impact of cyber security threats such as social engineering (phishing), malicious software targeting end-users/network,

unauthorized access by insiders, employee/consultant error and/or unintended errors. 

We conduct annual company-wide cyber security assessments to assess the threats posed by external actors to our information

technology and operational technology systems and promote awareness internally of the cyber security threats faced by the company.

We also conduct assessments of cyber security incidents experienced by the company and third parties relevant to the company. These

assessments are conducted in collaboration between the technology, digital and innovation business area, the global operations

technology excellence unit and the corporate security and crisis management unit. The business area risk owners, regional security

managers, country office representatives, political analysis teams, shipping security teams, enterprise data and cyber security

professionals and the emergency response-and-support centre are all involved in and contribute to these assessments. The results of

these assessments are shared regularly with the board of directors, including the safety, sustainability and ethics committee.

We engage external assessors to conduct maturity testing to evaluate our processes and procedures within specific areas to ensure

continuous development of barriers against cyber security threats. We also seek information from national security authorities and work

closely with IT vendors, external cyber security advisory services and other companies in the industry with the aim of continuously

improving our capabilities to identify, protect, detect, respond to and recover from cyber security threats. We also use input provided by

external auditors as part of independent reviews to improve our cyber security barriers. 

Actual and/or potential vulnerabilities in our information systems are continuously monitored by our Cyber Defence Center. We follow

the ISO27001, IEC62443 and National Institute for Standard and Technology (NIST) cyber security frameworks to build resilience,

focusing on capabilities for reducing both the probability and consequences of cyber security incidents. We utilize multiple tools and

practices to monitor external developments related to cyber security which may be relevant to the company, such as alerts/publications

from national cyber security centres, advice from security risk consulting firms and reports from information technology and cyber

security companies, and assess their implications for Equinor with a focus on external factors, such as the threat actors’ presence,

capability, intent, past targeting and anticipated future targeting, as well as internal factors such as evidence of attacks on our information

systems. All relevant updates and developments are disseminated across the company through the company’s intranet and e-mails to

interested internal stakeholders. 

We provide cyber security awareness training to all our employees on an annual basis which is designed to provide guidance for

identifying and avoiding cyber security risks, and require employees in certain roles to complete additional role based, specialized cyber

security trainings. 

Equinor 2023 Annual Report on Form 20-F 67

We have company-wide management systems detailing protocols and response governance for emergency response and business

continuity management. Our management systems reflect industry good practices, internal requirements, national laws and regulations

and ISO/IEC standards to identify, protect, detect, respond and recover from cyber security threats. The corporate security and crisis

management unit is responsible for setting strategic direction and maintaining the company’s corporate framework on crisis and business

continuity management. We have adopted business continuity plans and disaster recovery plans which are designed with the goal of

minimizing the consequences of cyber security incidents, and are reviewed on a regular basis. We also have a dedicated global cyber

security incident response team, comprised of specially trained personnel, that provides assistance and support in dealing with any

actual and/or potential cyber security incidents. 

In addition to assessing our own cyber security preparedness, we also consider and evaluate cyber security risks associated with our

use of third-party service providers. We have integrated cyber security risk management into our procurement process whereby cyber

security risks are identified and assessed in the early stages of negotiating contracts and addressed accordingly based on the nature

of services provided. Cyber security risks associated with third parties are monitored through the life cycle of the relationships.

In 2023, as in previous years, we experienced several cyber security incidents and other disruptions to our information systems. None

of these incidents and systems disruptions, including those reported to us by our third-party partners, had a material impact on our

business, operations or financial results. See “Item 3D – Risk Factors” for additional information about digital and cyber security risks.

Cyber security Governance

Our board of directors oversees the company’s internal control and overall risk management and assurance, and through its audit

committee, reviews and monitors the effectiveness of the ERM framework, which has identified cyber security as one of the top

enterprise risks. The board and audit committee discuss the company’s ERM framework, and three-lines of control model and learnings

from risk-adjusting actions and assurance activities on a bi-annual basis.

The board of directors’ safety, sustainability and ethics committee (SSEC) is primarily responsible for the oversight of cyber security risk

management, including review of the company’s practices and performance related to cyber security, and updates the board of directors

on any matters of concern that become apparent in the exercise of its duties. The SSEC reviews and assesses at least annually the

developments, implementation, effectiveness and practice of the company’s cyber security policies, programmes and strategies, and

the effectiveness of internal controls for cyber security matters, including applicable management systems, policies, practices,

processes, leadership, and culture, and summarizes its assessments in an annual report to the board of directors. The SSEC also

receives regular briefings and updates from the Executive Vice President for Safety, Security & Sustainability (EVP SSU) relating to

material risks from cyber security threats and management of cyber security-related risks.

We use a three-line model for risk management (including cyber security risk) in which employees and management work together to

contribute to creation and protection of value. As the first line-of-control, cyber security risk is managed in the business areas as an

integral part of employee and manager tasks. Technical experts in each business area are responsible for monitoring the relevant

business area’s cyber security risks and performance, conducting assessments and ensuring a suitable and effective management

system that reflects the relevant business area’s business scope and context, risks and external regulatory requirements. The first line

shares its experiences and findings in a systematic way with the second line. The responsibility for reporting material risks from cyber

security threats, regularly and systematically, follows the accountability of the business areas up to their respective executive vice

presidents. The executive vice presidents of the business areas meet with the EVP SSU bi-annually to review top enterprise risk from

cyber security threats. 

The second line-of-control oversees cyber security risks, performance and assurance across the company and provides advice and

support to the first line in identifying and executing assurance activities and monitors, supports and challenges the first line in relation

to performance and management of cyber security risks. The EVP SSU leads the second line-of-control for cyber security-related

matters and oversees cyber security risks across the company and reports to the Corporate Executive Committee (CEC) and the SSEC.

The Chief Security Officer (CSO) and Chief Information Security Officer (CISO) assist the EVP SSU in the day-to-day monitoring of

cyber security risks, which are reported to the CEC. The CEC is responsible for reviewing and approving the strategy and resourcing of

cyber security risk management. Our current EVP SSU holds a Master’s degree in Cybernetics and Process Automation and a

Bachelor’s degree in Automation from the Rogaland Regional College/University of Stavanger. She has held a number of central

leadership positions within operations, projects and technology since she joined Equinor in 1999, including Chief Operating Officer,

where she drove the company’s digital transformation. 

Our third line-of-control is the corporate audit unit which performs independent audits across business areas and management roles,

including cyber security audits, and reports to the board of directors on a periodic basis. 

ITEM 17. FINANCIAL STATEMENTS

The Company has responded to Item 18 in lieu of this item

.

ITEM 18. FINANCIAL STATEMENTS

The audited consolidated financial statements as required under Item 18 are attached hereto starting on page 74 of this 2023 Form

20-F. The audit report of Ernst & Young AS, an independent registered accounting firm, is included herein preceding the audited

Consolidated Financial Statements.

Equinor 2023 Annual Report on Form 20-F 68

ITEM 19. EXHIBITS

Exhibit no

Description

Exhibit 1

Articles of Association of Equinor ASA, as amended, effective from 10 May 2023 (English Translation).

Exhibit 2.1

Description of Securities registered under Section 12 of the Exchange Act.

Exhibit 2.2

Form of Indenture among Equinor ASA (formerly known as Statoil ASA and StatoilHydro ASA), Equinor Energy AS

(formerly known as Statoil Petroleum AS and StatoilHydro Petroleum AS) and Deutsche Bank Trust Company

Americas (incorporated by reference to Exhibit 4.1 of Equinor ASA's (formerly known as Statoil ASA) and Equinor

Energy AS's (formerly known as Statoil Petroleum AS) Post - Effective Amendment No.1 to their Registration

Statement on Form F-3 (File No. 333-143339) filed with the Commission on 2 April 2009).

Exhibit 2.3

Supplemental Indenture No. 3 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K (File

No. 001-15200) filed with the Commission on 10 September 2018)

Exhibit 2.4

Form of Supplemental Indenture No. 4 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K

(File No. 001-15200) filed with the Commission on 13 November 2019)

Exhibit 2.5

Amended and Restated Agency Agreement, dated as of 11 May 2023, by and among Equinor ASA, as Issuer,

Equinor Energy AS, as Guarantor, the Bank of New York Mellon, London Branch, as Agent and the Bank of New York

Mellon SA/NV, Luxembourg Branch, as Paying Agent in respect of a €20,000,000 Euro Medium Term Note

Programme.

Exhibit 2.6

Deed of Covenant, dated as of 13 May 2020, of Equinor ASA in respect of a €20,000,000 Euro Medium Term Notes

Programme. (incorporated by reference to Exhibit 2.6 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200) filed

with the Commission on March 19, 2021)

Exhibit 2.7

Deed of Guarantee, dated as of 13 May 2020, of Equinor Energy AS in respect of a €20,000,000 Euro Medium Term

Notes Programme (incorporated by reference to Exhibit 2.7 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200)

filed with the Commission on March 19, 2021).

Exhibit 4(a)(i)

Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum

AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(i) of Equinor's (formerly known as Statoil)

2016 Form 20-F (File no. 001-15200) filed with the Commission on March 17, 2017).

Exhibit 4(a)(ii)

Amendment no. 1, 2, 3, 4, 5 and 6, dated 17 October 2010, 19 February 2013, 15 December 2012, 17 September

2014, 15 December 2017 and 22 December 2017, respectively, to Technical Services Agreement between Gassco

AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by

reference to Exhibit 4(a)(ii) of Equinor's (formerly known as Statoil) 2017 Form 20-F (File no. 001-15200) filed with the

Commission on March 23, 2018).

Exhibit 4(c)

Employment agreement with Anders Opedal as of 9 August 2020 (incorporated by reference to Exhibit 4(c) of Equinor

ASA’s 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021).

Exhibit 8

List of subsidiaries

Exhibit 11

Code of Conduct

Exhibit 12.1

Rule 13a-14(a) Certification of the Chief Executive Officer

Exhibit 12.2

Rule 13a-14(a) Certification of Chief Financial Officer

Exhibit 13.1

Rule 13a-14(b) Certification of the Chief Executive Officer

1

)

Exhibit 13.2

Rule 13a-14(b) Certification of the Chief Financial Officer

1

)

Exhibit 15.1

Consent of EY AS

Exhibit 15.2

Consent of DeGolyer and MacNaughton

Exhibit 15.3

Report of DeGoyler and MacNaughton

Exhibit 15.4

Equinor 2023 Integrated Annual Report

Exhibit 15.5

Oil and gas reserves report

Exhibit 15.6

Exhibit 15.7

Exhibit 15.8

Remuneration Report

Board statement on corporate governance

Clawback policy

Exhibit 17

List of guarantor subsidiaries

Exhibit 101

Interactive Data Files (formatted in Inline XBRL (Extensible Business Reporting Language)). Submitted electronically

with the 2023 Form 20-

F.

Exhibit 104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

1) Furnished only.

The total amount of long term debt securities of Equinor ASA and its subsidiaries authorised under instruments other than those listed above does not exceed 10%

of the total assets of Equinor ASA and its subsidiaries on a consolidated basis. The company agrees to furnish copies of any such instruments to the Commission

upon request.

Equinor 2023 Annual Report on Form 20-F 69

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and

authorised the undersigned to sign this annual report on its behalf.

EQUINOR ASA

(Registrant)

By: /s/ TORGRIM REITAN

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer

Dated: 21 March 2024

Equinor 2023 Annual Report on Form 20-F 70

The reports set out below are provided in accordance with standards of the Public Company Accounting Oversight Board (United

States). Ernst & Young AS (PCAOB ID:

1572

) has also issued a report in accordance with law, regulations, and auditing standards

and practices generally accepted in Norway, including International Standards on Auditing (ISAs), which includes opinions on the

Consolidated financial statements and the parent company financial statements of Equinor ASA, and on other required matters. That

report is not included in this 2023 Form 20-F, but only in the 2023 Annual report.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Equinor ASA and its subsidiaries (Equinor or the Company) as of

31 December 2023 and 2022, the related consolidated statements of income, comprehensive income, changes in equity and cash

flows for each of the three years in the period ended 31 December 2023, and the related notes (collectively referred to as the

“Consolidated Financial Statements”). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the

financial position of the Company as of 31 December 2023 and 2022, and the results of its operations and its cash flows for each of

the three years in the period ended 31 December 2023, in conformity with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB) and in conformity with IFRS Accounting Standards as adopted by the European Union.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the Company's internal control over financial reporting as of 31 December 2023, based on criteria established in Internal

Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework),

and our report dated 12 March 2024 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the

Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to

be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and

regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free of material misstatement,

whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the

Consolidated Financial Statements, whether due to error or fraud, and performing procedures that respond to those risks. Such

procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the Consolidated Financial

Statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as

well as evaluating the overall presentation of the Consolidated Financial Statements. We believe that our audits provide a reasonable

basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the Consolidated Financial

Statements that were communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the

Consolidated Financial Statements and (2) involved our especially challenging, subjective or complex judgments. The communication

of critical audit matters does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are

not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or

disclosures to which they relate.

Equinor 2023 Annual Report on Form 20-F 71

Recoverable amounts of production plants and oil and gas assets including assets under development

Description of

the Matter

As of 31 December 2023, the Company has recognised production plants and oil and gas assets,

including assets under development, of USD 39,585 million and USD 13,980 million, respectively,

within Property, plant and equipment. Refer to Note 14 to the Consolidated Financial Statements

for the related disclosures. As described in Note 14, determining the recoverable amount of an

asset involves an estimate of future cash flows, which is dependent upon management’s best

estimate of the economic conditions that will exist over the asset’s useful life. The asset’s

operational performance and external factors have a significant impact on the estimated future

cash flows and therefore, the recoverable amount of the asset.

Auditing management’s estimate of the recoverable amount of production plants and oil and gas

assets is complex and involves a high degree of judgement. Significant assumptions used in

forecasting future cash flows are future commodity prices, currency exchange rates, expected

reserves, capital expenditures, and the discount rate.

These significant assumptions are forward-looking and can be affected by future economic and

market conditions, including matters related to climate change and energy transition. As described

in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate

change and the potential impact of the energy transition are relevant to some of the economic

assumptions in the Company’s estimation of future cash flows. Climate considerations are included

directly in the impairment assessments by estimating the carbon costs in the cash flows, and

indirectly as the expected effects of the climate change are included in the estimated commodity

prices. As also described in Note 3, commodity price assumptions applied in value-in-use

impairment testing are based on management’s best estimate, which differs from the price-set

required to achieve the goals of the Paris Agreement as described in the International Energy

Agency (IEA) World Energy Outlook’s Announced Pledges Scenario, or the Net Zero Emissions by

2050 Scenario. The impact of the energy transition and potential restrictions by regulators, market

and strategic considerations may also have an effect on the estimated production profiles and the

economic lifetime of the Company’s assets and projects.

Additionally, the treatment of tax in the estimation of the recoverable amount is challenging, as the

Company is subject to different tax structures that are inherently complex, particularly in Norway.

How We

Addressed the

Matter in Our

Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of

controls over the Company’s process for evaluating the recoverability of production plants and oil

and gas assets including assets under development. This included testing controls over

management’s review of assumptions and inputs to the assessments of impairment and

impairment reversals.

Our audit procedures performed over the significant assumptions and inputs included, among

others, evaluation of the methods and models used in the calculation of the recoverable amount.

We also evaluated the relevant tax effects based on the local legislation of the relevant

jurisdictions, particularly in Norway, and tested the clerical accuracy of the models through

independently recalculating the value in use. We involved valuation specialists to assist us with

these procedures. In addition, we compared projected capital expenditures to approved operator

budgets or management forecasts. For those assets previously impaired, we compared actual

results to the forecasts used in historical impairment analyses. We also compared expected

reserve volumes with internal production forecasts and external evaluations of expected reserves

and we compared the historical production with management’s previous production forecasts, with

the involvement of our reserves specialists.

To test price assumptions, we evaluated management’s methodology to determine future

commodity prices and compared such assumptions to external benchmarks, among other

procedures. We involved valuation specialists to assist in evaluating the reasonableness of the

Company’s assessment of currency exchange rates and the discount rate, by assessing the

Company’s methodologies and key assumptions used to calculate the rates and by comparing

those rates with external information. We also evaluated management’s methodology to factor

climate-related matters into their determination of future commodity price assumptions.

To test carbon cost assumptions, with the involvement of climate change and sustainability

specialists, we evaluated management’s methodology to determine future carbon costs, including

assessing the impact from climate-related matters, and compared management’s assumptions

with the current legislation in place in the relevant jurisdictions and the jurisdictions’ announced

pledges regarding escalation of carbon costs.

We evaluated management’s sensitivity analyses over its future commodity prices and carbon cost

assumptions by taking into consideration, among other sources, the Net Zero Emissions by 2050

Scenario and Announced Pledges Scenario estimated by the International Energy Agency (IEA).

We have also evaluated management’s disclosures related to the consequences of initiatives to

limit climate change, including the effects of the Company’s climate change strategy on the

Equinor 2023 Annual Report on Form 20-F 72

Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty,

discussed in more detail in Notes 3 and 14.

Estimation of the asset retirement obligations

Description of

the Matter

As of 31 December 2023, the Company has recognised a provision for decommissioning and

removal activities of USD 12,360 million classified within Provisions and other liabilities. Refer to

Note 23 to the Consolidated Financial Statements for the related disclosures. As described in Note

23, the appropriate estimates for such obligations are based on historical knowledge combined

with knowledge of ongoing technological developments, expectations about future regulatory and

technological development and involve the application of judgement and an inherent risk of

significant adjustments. The estimated costs of decommissioning and removal activities require

revisions due to changes in current regulations and technology while considering relevant risks

and uncertainties.

Auditing management’s estimate of the decommissioning and removal of offshore installations at

the end of the production period is complex and involves a high degree of judgement. Determining

the provision for such obligations involves application of considerable judgement related to the

assumptions used in the estimate, the inherent complexity and uncertainty in estimating future

costs, and the limited historical experience against which to benchmark estimates of future costs.

Significant assumptions used in the estimate are the discount rates and the expected future costs,

which include the underlying assumptions norms and rates, and time required to decommission

and can vary considerably depending on the expected removal complexity.

These significant assumptions are forward-looking and can be affected by future economic and

market conditions, including matters related to climate change and energy transition. As described

in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate

change and the potential impact of the energy transition are relevant to some of the economic

assumptions in the Company’s estimation of future cash flows. The impact of the energy transition

and potential restrictions by regulators, market and strategic considerations may also have an

effect on the estimated economic lifetime of the Company’s assets and projects. If the Company’s

business cases for the oil and gas producing assets in the future should change materially due to

governmental initiatives to limit climate change, it could affect the timing of cessation of the assets

and the asset retirement obligations (ARO).

How We

Addressed the

Matter in Our

Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of

controls over the Company’s process to calculate the present value of the estimated future

decommissioning and removal expenditures determined in accordance with local conditions and

requirements. This included testing controls over management’s review of assumptions described

above, used in the calculation of the ARO.

To test management’s estimation of the provision for decommissioning and removal activities, our

audit procedures included, among others, evaluating the completeness of the provision by

comparing significant additions to property, plant and equipment to management’s assessment of

new ARO obligations recognized in the period.

To assess the expected future costs, among other procedures, we compared day rates for rigs,

marine operations and heavy lift vessels to external market data or existing contracts. For time

required to decommission, we compared the assumptions against historical data. We compared

discount rates to external market data. With the support of our valuation specialists, we evaluated

the methodology and models used by management to estimate the ARO and performed a

sensitivity analysis on the significant assumptions. In addition, we recalculated the formulas in the

models.

We evaluated management’s sensitivity analyses over the effect of performing removal five years

earlier than currently scheduled due to potential governmental initiatives to limit climate change.

We have also evaluated management’s disclosures related to the consequences of initiatives to

limit climate change, including the effects of the Company’s climate change strategy on the

Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty,

discussed in more detail in Notes 3 and 23.

/s/

Ernst & Young AS

We have served as the Company’s auditor since 2019.

Stavanger, Norway

12 March 2024

Equinor 2023 Annual Report on Form 20-F 73

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

Opinion on Internal Control over Financial Reporting

We have audited Equinor ASA and subsidiaries’ (the Company) internal control over financial reporting as at 31 December 2023,

based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the

Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects,

effective internal control over financial reporting as at 31 December 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the 2023 Consolidated Financial Statements of the Company, and our report dated 12 March 2024 expressed an

unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of

the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control

over Financial Reporting as set out in Item 15. Controls and Procedures. Our responsibility is to express an opinion on the Company’s

internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are

required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material

respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material

weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and

performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable

basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of

financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the

company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements

in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only

in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding

prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect

on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections

of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in

conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young AS

Stavanger, Norway

12 March 2024

Equinor Annual Report on Form 20-F 2023 74

Consolidated financial statements of the Equinor group

CONSOLIDATED STATEMENT OF INCOME

Full year

(in USD million)

Note

2023

2022

2021

Revenues

7

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

7

107,174

150,806

90,924

Purchases [net of inventory variation]

(48,175)

(53,806)

(35,160)

Operating expenses

(10,582)

(9,608)

(8,598)

Selling, general and administrative expenses

(1,218)

(986)

(780)

Depreciation, amortisation and net impairment

12, 13,

14

(10,634)

(6,391)

(11,719)

Exploration expenses

13

(795)

(1,205)

(1,004)

Total operating expenses

(71,404)

(71,995)

(57,261)

Net operating income/(loss)

5

35,770

78,811

33,663

Interest income and other financial income

10

2,449

1,222

38

Interest expenses and other financial expenses

10

(1,660)

(1,379)

(1,223)

Other financial items

10

1,325

(50)

(895)

Net financial items

2,114

(207)

(2,080)

Income/(loss) before tax

37,884

78,604

31,583

Income tax

11

(25,980)

(49,861)

(23,007)

Net income/(loss)

11,904

28,744

8,576

Attributable to shareholders of the company

20

11,885

28,746

8,563

Attributable to non-controlling interests

19

(3)

14

Basic earnings per share (in USD)

20

3.93

9.06

2.64

Diluted earnings per share (in USD)

20

3.93

9.03

2.63

Equinor Annual Report on Form 20-F 2023 75

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Full year

(in USD million)

Note

2023

2022

2021

Net income/(loss) 

11,904

28,744

8,576

Actuarial gains/(losses) on defined benefit pension plans

(276)

461

147

Income tax effect on income and expenses recognised in OCI

1)

66

(105)

(35)

Items that will not be reclassified to the Consolidated statement of income

22

(211)

356

111

Foreign currency translation effects

(587)

(3,609)

(1,052)

Share of OCI from equity accounted investments

(113)

424

0

Items that may subsequently be reclassified to the Consolidated statement of income

(701)

(3,186)

(1,052)

Other comprehensive income/(loss)

(911)

(2,829)

(940)

Total comprehensive income/(loss)

10,992

25,914

7,636

Attributable to the shareholders of the company

10,974

25,917

7,622

Attributable to non-controlling interests

19

(3)

14

1)

Other Comprehensive Income (OCI).

Equinor Annual Report on Form 20-F 2023 76

CONSOLIDATED BALANCE SHEET

 At 31 December

(in USD million)

Note

2023

2022

ASSETS

Property, plant and equipment

12

58,822

56,498

Intangible assets

13

5,709

5,158

Equity accounted investments

15

2,508

2,758

Deferred tax assets

11

7,936

8,732

Pension assets

22

1,260

1,219

Derivative financial instruments

28

559

691

Financial investments

16

3,441

2,733

Prepayments and financial receivables

16

1,291

2,063

Total non-current assets

81,525

79,851

Inventories

17

3,814

5,205

Trade and other receivables

1)

18

16,933

22,452

Derivative financial instruments

28

1,378

4,039

Financial investments

16

29,224

29,876

Cash and cash equivalents

2)

19

9,641

15,579

Total current assets

60,990

77,152

Assets classified as held for sale

6

1,064

1,018

Total assets

143,580

158,021

EQUITY AND LIABILITIES

Shareholders’ equity

48,490

53,988

Non-controlling interests

10

1

Total equity

20

48,500

53,989

Finance debt

21

22,230

24,141

Lease liabilities

25

2,291

2,409

Deferred tax liabilities

11

13,345

11,996

Pension liabilities

22

3,925

3,671

Provisions and other liabilities

23

15,304

15,633

Derivative financial instruments

28

1,795

2,376

Total non-current liabilities

58,890

60,226

Trade, other payables and provisions

24

11,870

13,352

Current tax payable

12,306

17,655

Finance debt

21

5,996

4,359

Lease liabilities

25

1,279

1,258

Dividends payable

20

2,649

2,808

Derivative financial instruments

28

1,619

4,106

Total current liabilities

35,719

43,539

Liabilities directly associated with the assets classified as held for sale

6

471

268

Total liabilities

95,080

104,032

Total equity and liabilities

143,580

158,021

Equinor Annual Report on Form 20-F 2023 77

1)

Of which Trade receivables of USD

13,017

 million in 2023 and USD

17,334

 million in 2022.

2)

Includes collateral deposits of USD

1,572

 million for 2023 related to certain requirements set out by exchanges where Equinor is

participating. The corresponding figure for 2022 is USD

6,128

 million.

Equinor Annual Report on Form 20-F 2023 78

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in USD million)

Share

capital

Additional

paid-in

capital

Retained

earnings

Foreign

currency

translation

reserve

OCI from equity

accounted

investments

1)

Shareholders'

equity

Non-

controlling

interests

Total equity

At 1 January 2021

1,164

6,852

30,050

(4,194)

0

33,873

19

33,892

Net income/(loss)

8,563

8,563

14

8,576

Other comprehensive income/(loss)

111

(1,052)

(940)

(940)

Total comprehensive income/(loss)

7,636

Dividends

(2,041)

(2,041)

(2,041)

Share buy-back

(429)

(429)

(429)

Other equity transactions

(15)

(15)

(18)

(33)

At 31 December 2021

1,164

6,408

36,683

(5,245)

0

39,010

14

39,024

Net income/(loss)

28,746

28,746

(3)

28,744

Other comprehensive income/(loss)

356

(3,609)

424

(2,829)

(2,829)

Total comprehensive income/(loss)

25,914

Dividends

(7,549)

(7,549)

(7,549)

Share buy-back

(22)

(3,358)

(3,380)

(3,380)

Other equity transactions

(10)

(10)

(10)

(20)

At 31 December 2022

1,142

3,041

58,236

(8,855)

424

53,988

1

53,989

Net income/(loss)

11,885

11,885

19

11,904

Other comprehensive income/(loss)

(211)

(587)

(113)

(911)

(911)

Total comprehensive income/(loss)

10,992

Dividends

(10,783)

(10,783)

(10,783)

Share buy-back

(42)

(3,037)

(2,606)

(5,685)

(5,685)

Other equity transactions

(3)

(3)

(10)

(13)

At 31 December 2023

1,101

0

56,521

(9,442)

310

48,490

10

48,500

1) OCI items from equity accounted investments that may subsequently be reclassified to the Consolidated statement of income, are

presented as part of OCI from equity accounted investments. OCI items that will not be reclassified to the Consolidated statements of income

will be included in retained earnings.

Please refer to note 20 Shareholders’ equity, capital distribution and earnings per share for more details.

Equinor Annual Report on Form 20-F 2023 79

CONSOLIDATED STATEMENT OF CASH FLOWS

Full year

(in USD million)

Note

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Depreciation, amortisation and net impairment

12, 13, 14

10,634

6,391

11,719

Exploration expenditures written off

13

(53)

342

171

(Gains)/losses on foreign currency transactions and balances

(852)

(2,088)

(47)

(Gains)/losses on sale of assets and businesses

6

8

(823)

(1,519)

(Increase)/decrease in other items related to operating activities

1)

(1,313)

468

106

(Increase)/decrease in net derivative financial instruments

28

1,041

1,062

539

Interest received

1,710

399

96

Interest paid

(1,042)

(747)

(698)

Cash flows provided by operating activities before taxes paid and working capital items

48,016

83,608

41,950

Taxes paid

(28,276)

(43,856)

(8,588)

(Increase)/decrease in working capital

4,960

(4,616)

(4,546)

Cash flows provided by operating activities 

24,701

35,136

28,816

Cash used in business combinations

6

(1,195)

147

(111)

Capital expenditures and investments

6

(10,575)

(8,758)

(8,040)

(Increase)/decrease in financial investments

443

(10,089)

(9,951)

(Increase)/decrease in derivative financial instruments

(1,266)

1,894

(1)

(Increase)/decrease in other interest-bearing items

(87)

(23)

28

Proceeds from sale of assets and businesses

6

272

966

1,864

Cash flows provided by/(used in) investing activities

(12,409)

(15,863)

(16,211)

Repayment of finance debt

21

(2,818)

(250)

(2,675)

Repayment of lease liabilities

25

(1,422)

(1,366)

(1,238)

Dividends paid

20

(10,906)

(5,380)

(1,797)

Share buy-back

20

(5,589)

(3,315)

(321)

Net current finance debt and other financing activities

2,593

(5,102)

1,195

Cash flows provided by/(used in) financing activities

21

(18,142)

(15,414)

(4,836)

Net increase/(decrease) in cash and cash equivalents

(5,850)

3,860

7,768

Foreign currency translation effects

(87)

(2,268)

(538)

Cash and cash equivalents at the beginning of the period (net of overdraft)

19

15,579

13,987

6,757

Cash and cash equivalents at the end of the period (net of overdraft)

2)

19

9,641

15,579

13,987

1)

The line item mainly consists of provisions, unrealised gains and losses and items of income or expense for which the cash effects are

included in increase/(decrease) in working capital within operating cash flow and investing cash flows. In 2023 the main item is related to

interest income and expense included in the line item interest received and interest paid. In 2022 the line item includes a fair value loss

related to inventory of USD

672

 million. The amount for 2021 includes USD (

822

) million in redetermination settlement for the Agbami

field.

2)

At 31 December 2023 and 2022 cash and cash equivalents net overdraft was

zero

. At 31 December 2021 cash and cash equivalents

included a net overdraft of USD

140

 million.

Interest paid

in cash flows provided by operating activities excludes capitalised interest of USD

468

 million, USD

382

 million, and USD

334

million for the years ending 31 December 2023, 2022 and 2021, respectively. Capitalised interest is included in Capital expenditures and

Equinor Annual Report on Form 20-F 2023 80

investments in cash flows used in investing activities. Total interest paid amounts to USD

1,510

 million, USD

1,129

 million, and USD

1,032

million for the years 2023, 2022 and 2021, respectively.

Equinor Annual Report on Form 20-F 2023 81

Notes to the Consolidated financial statements

Table of contents for notes to the financial statements

1

Organisation

2

Accounting policies

3

Climate change and energy transition

4

Financial risk and capital management

5

Segments

6

Acquisitions and disposals

7

Total revenues and other income

8

Salaries and personnel expenses

9

Auditor’s remuneration and Research and development expenditures

10

Financial items

11

Income taxes

12

Property, plant and equipment

13

Intangible assets

14

Impairments

15

Joint arrangements and associates

16

Financial investments and financial receivables

17

Inventories

18

Trade and other receivables

19

Cash and cash equivalents

20

Shareholders’ equity, capital distribution and earnings per share

21

Finance debt

22

Pensions

23

Provisions and other liabilities

24

Trade, other payables and provisions

25

Leases

26

Other commitments, contingent liabilities and contingent assets

27

Related parties

28

Financial instruments and fair value measurement

29

Subsequent events

Equinor Annual Report on Form 20-F 2023 82

1 Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries.

Equinor ASA

 is incorporated and domiciled in

Norway

 and

listed on the Oslo Børs (

Norway

) and the New York Stock Exchange (USA). The address of its registered office is

Forusbeen 50, N-

4035 Stavanger, Norway

.

Equinor’s objective is to develop, produce and market various forms of energy and derived products and services, as well as other

businesses. The activities may also be carried out through participation in or cooperation with other companies.

 Equinor Energy AS, a

100

% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the Norwegian

continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2023 were approved for issuance by the board of directors on 12

March 2024 and is subject to approval by the annual general meeting on 14 May 2024.

2 Accounting policies

Statement of compliance

The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with IFRS

Accounting Standards as adopted by the European Union (EU) and with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB), IFRIC® Interpretations issued by IASB and the additional requirements of the Norwegian

Accounting Act, effective on 31 December 2023.

Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement

is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting

policies described in these Consolidated financial statements have been applied consistently to all periods presented.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in

the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some

of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

The line items included in Total operating expenses in the Consolidated statement of income are presented as a combination of

function and nature in conformity with industry practice. Purchases [net of inventory variation] and Depreciation, amortisation and net

impairments are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative

expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc.

are presented by their nature in the notes to the Consolidated financial statements.

Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor’s interests in jointly

controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses

arising from Equinor's internal transactions, have been eliminated.

Foreign currency translation

Foreign exchange differences arising on translation of transactions, assets and liabilities to the functional currency of individual

entities in Equinor are recognised in the Consolidated statement of income as foreign exchange gains or losses within Net financial

items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as

part of the change in the underlying estimate.

When preparing the Consolidated financial statements, the financial statements of entities with functional currencies other than the

Group’s presentation currency USD are translated into USD, and the foreign exchange differences are recognised separately in the

Consolidated statement of comprehensive income within Other comprehensive income (OCI). The cumulative amount of such

translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of the gain or

loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional currencies than the parent company,

and for which settlement is neither planned nor likely in the foreseeable future, are considered part of the parent company’s net

investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial

statements.

Statement of cash flows

Equinor Annual Report on Form 20-F 2023 83

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss) before tax is adjusted

for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations

and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items of income or expense

for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments, derivative financial

instruments, and other interest-bearing items are all presented net as part of Investing activities, either because the transactions are

financial investments and turnover is quick, the amounts are large, and the maturities are short, or due to materiality.

--------------------------------------------------------------------------------------------------------------------------------

Accounting judgement and key sources of estimation uncertainty

The preparation of the Consolidated financial statements requires management to make accounting judgements, estimates and

assumptions.

Information about judgements made in applying the accounting policies that have the most significant effects on the amounts

recognised in the Consolidated financial statements is described in the following notes:

Note 6 – Acquisitions and disposals

Note 7 – Total revenues and other income

Note 25 – Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models. The

assumptions on which the estimates are based rely on historical experience, external sources of information and various other factors

that management assesses to be reasonable under the current conditions and circumstances. These estimates and assumptions form

the basis of making the judgements about carrying values of assets and liabilities when these are not readily apparent from other

sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going

basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity prices, foreign currency

exchange rates, market risk premiums and interest rates as well as financial instruments with fair values derived from changes in

these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to

several of these economic assumptions. In addition, Equinor's results are influenced by the level of production, which in the short term

may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of

exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty are described in each of the following notes:

Note 3 – Climate change and energy transition

Note 11 – Income taxes

Note 12 – Property, plant and equipment

Note 13 – Intangible assets

Note 14 – Impairments

Note 23 – Provisions and other liabilities

Note 26 – Other commitments, contingent liabilities and contingent assets

--------------------------------------------------------------------------------------------------------------------------------

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations effective and adopted by

Equinor from 1 January 2023 do not have significant impact on Equinor’s Consolidated financial statements upon adoption. This

includes among others IFRS 17 Insurance Contracts and amendments to IAS 12 International Tax Reform – Pillar Two Model Rules

(top-up tax).

IFRS Accounting Standards, amendments to IFRS Accounting Standards, and IFRIC Interpretations issued, but not yet effective, are

either not expected to materially impact Equinor's Consolidated financial statements upon adoption or are not expected to be relevant.

Equinor has not early adopted any IFRS Accounting Standard, amendments to IFRS Accounting Standards, or IFRIC Interpretations

issued, but not yet effective.

3 Climate change and energy transition

Risks arising from climate change and the transition to a lower carbon economy

Policy, legal, regulatory, market and technology developments related to climate change, can affect Equinor’s business plans and

financial performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery

and outcomes associated with Equinor’s strategy. In its long-term planning, Equinor analyses how the global energy markets may

develop, such as future changes in demand for Equinor’s products (oil, gas and power in key markets). Commodity price sensitivities

Equinor Annual Report on Form 20-F 2023 84

are presented in a table below, including the World Energy Outlook 2023 (WEO) scenarios presented by International Energy Agency

(IEA), and in note 14 Impairments.

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness of the company’s

business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates to the exposure and

potential vulnerability of Equinor’s assets to climate-related perils in different climate change scenarios. Equinor’s net-zero strategy

and climate related ambitions are responses to the challenges and opportunities presented by the energy transition. Below is a

summary of relevant risks and risk adjusting actions:

Risks – upsides and downsides

Risk adjusting actions

Transition risks

●

Stricter climate laws, regulations, and policies as well

as adverse litigation outcomes could adversely impact

Equinor's financial results and outlook, including the

value of its assets. These might be direct impacts, or

indirect impacts through changes in consumer

behaviour or technology developments.

●

Changing demand and more cost-competitive

solutions for renewable energy and low-carbon

solutions represent both threats and opportunities for

Equinor future value creation and the value of

Equinor’s assets.

●

Multiple factors in the energy transition contribute to

uncertainty in future energy price assumptions and

changes in investor and societal sentiment can affect

Equinor’s access to capital markets and financing

costs.

●

 Strong competition for assets, changing levels of

policy support, and different commercial/contractual

models may lead to diminishing returns within the

renewable and low carbon industries and hinder

Equinor ambitions. These investments may be

exposed to interest rate risk and inflation risk.

●

 Equinor sees opportunities for value creation in the

energy transition both through optimisation of

Equinor’s oil and gas business and through utilising its

competitive capabilities across new areas of the

energy system. In a decarbonising world with a broad

energy mix, the expectation is that policymakers and

stakeholders will set a premium on oil and gas

produced in a responsible and increasingly carbon

efficient way.

●

Equinor monitors trends in relevant policies and

regulations and addresses regulatory and policy risk

in capital investment processes and through

enterprise risk management in the business line. 

●

Equinor has developed its corporate strategy and

Energy transition plan (ETP) to demonstrate

commitment to a low carbon business transformation

that balances investor and societal expectations.

●

Equinor includes actual or default minimum carbon

pricing across investments, applies price robustness

criteria and routinely stress tests the portfolio for

different future price scenarios towards net zero.

Hurdle rates and other financial sensitivity testing are

included in decision making.

●

 Equinor has presented an ambitious abatement plan

to reduce absolute emissions and emissions

intensity from its activities. 

●

 Equinor assesses climate-related risks related to

external technology development trends and invests

in research, innovation and technology ventures that

support positive value creation for its portfolio.

Examples of relevant technologies within Equinor’s

portfolio include carbon capture and storage (CCS),

blue/green hydrogen, battery technology, solar and

wind renewable energy, low CO

₂

 intensity solutions,

improvements in methane emissions and application

of renewables in oil and gas production.

Physical

climate

risks

●

 Changes in physical climate parameters could impact

Equinor 's operations, resulting in disruption to

operations, increased costs, or incidents. This could

be through extreme weather events or chronic

physical impacts such as rising sea level

accompanied by increased wave heights. As

Equinor’s renewable portfolio grows, unexpected

changes in meteorological parameters, such as

average wind speed or changes in wind patterns and

cloud cover can affect energy production as well as

factors such as maintenance and equipment lifetimes.

●

Physical climate risks are taken into account through

technical and engineering functions in design,

operations, and maintenance, with consideration of

how the external physical environment may be

changing.

●

 With assistance from leading expert consultants and

climate scenario models, Equinor continues to

assess vulnerability of its assets to potential climate-

related changes in the physical environment.

However, there is uncertainty regarding the

magnitude of impact and time horizon for the

occurrence of physical impacts of climate change,

which leads to uncertainty regarding the potential

impact for Equinor.

Impact on Equinor’s financial statements

CO

₂

-cost and EU ETS carbon credits

Equinor’s oil & gas operations in Europe are part of the EU Emission Trading System (EU ETS). Equinor buys EU ETS allowances

(quotas or carbon credits) for the emissions related to its oil & gas production and processing. Currently Equinor receives a share of

free quotas according to the EU ETS regulation, according to which free quotas are to be phased out by 2035.

Equinor Annual Report on Form 20-F 2023 85

Accounting policies - cost of CO

₂

 quotas

Purchased CO

₂

 quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses as incurred in

line with emissions. Accruals for CO

₂

 quotas required to cover emissions to date are valued at market price and reflected as a current

liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the

balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas are acquired in order to cover

own emissions and may be kept to cover subsequent years’ emissions.

Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought, paid, and

expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the balance sheet.

Total expensed CO

₂

 cost related to emissions and purchase of CO

₂

 quotas in Equinor related to activities resulting in GHG emissions

(Equinor’s share of the operating licences in addition to land-based facilities) amounted to USD

486

 million in 2023, USD

510

 million

in 2022 and USD

428

 million in 2021. A large portion of the cost of CO

₂

 is related to the purchase of EU ETS quotas. The table below

shows, on a 100% operated basis, an analysis of number of quotas utilised and the related monetary amounts recognised in financial

statements by Equinor’s operated licences and land-based facilities subject to the requirements under EU ETS. Allocated free quotas

consist of actual free quotas received in ETS during the year. The closing balance for the number of quotas consists mainly of

purchased quotas for current year and remaining quotas after the settlement of current and previous year(s), including free quotas.

The closing balance in USD consists mainly of the value of the remaining quotas after the preliminary allocation of the current year

quotas.

Number of EU ETS quotas in

thousands

in USD million

2023

2022

2023

2022

Opening balance at 1 January

10,782

11,026

20

59

Allocated free quotas

356

3,697

Purchased quotas on the ETS market

7,822

5,985

708

509

Sold quotas on the ETS market

0

0

Returned excess free quotas

(544)

0

Settled quotas (offset against emissions)

(9,840)

(9,926)

(635)

(548)

Closing balance at 31 December

8,576

10,782

93

20

All numbers in the table are presented gross (100%) for Equinor operated licenses and include both EU ETS and UK ETS quotas.

Investments in renewables and low carbon solutions

Equinor’s ambition is to build a focused, carbon efficient oil and gas portfolio complemented with renewable and low-carbon solutions

to create long-term value while supplying reliable energy with progressively lower emissions. 2023 saw a significant increase in the

power generated from Equinor’s renewable portfolio as well as substantial additions to the portfolio pipelines in renewables. However,

due to inflation and supply chain constraints, Equinor recognised an impairment in the Renewables segment on the US North East

Coast offshore wind projects, see note 14 Impairments for more details.

Equinor’s investments in renewables are included as Additions to PP&E, intangibles and equity accounted investments in the REN-

segment in note 5 Segments. See table below for details. Over the course of 2023, the acquisition of BeGreen, a commercial-scale

offshore wind lease in California, Rio Energy in Brazil and investments related to projects in the US and the UK contributed to the

significant increase in the book value compared to the prior year. See note 6 Acquisitions and disposals for more details.

(in USD million)

2023

2022

Offshore, REN

880

146

Onshore, REN

1,127

152

Total Additions to PP&E, intangibles and equity accounted investments - REN

2,007

298

Low carbon solutions (within MMP)

179

36

Total Additions to PP&E, intangibles and equity accounted investments - REN and

LCS 

2,186

334

Equinor Annual Report on Form 20-F 2023 86

Equinor is making significant steps to industrialise CCS and is already involved in the Northern Lights project in Norway providing CO

₂

transport and storage solutions (in partnership with Shell and TotalEnergies). Equinor is also pursuing CCS projects in other regions

that have the necessary frame conditions for low carbon solutions. The acquisition of a

25

% stake in Bayou Bend, positions Equinor to

be one of the largest US carbon capture and storage projects located along the Gulf Coast in Southeast Texas. Acquisition

investments and capital contributions in these projects amounted to USD

179

 million in 2023 (USD

36

 million in 2022).

Investments in electrification of oil and gas assets

During 2023, Equinor invested around USD

200

 million in electrification (around USD

250

 million in 2022). Equinor’s abatement

projects primarily include full and partly electrification of offshore assets in Norway at key fields and plants, including the Troll,

Oseberg, Sleipner, Njord and the Hammerfest LNG plant, mainly by power from shore. Emissions abatement milestones in 2023

included the start-up of the Hywind Tampen offshore wind supplying carbon-free power to the Gullfaks A field and the electrification of

the Gina Krog field with power from shore.

Research and development activities (R&D)

Equinor is involved in several R&D projects aimed at optimizing oil and gas activities, reducing emissions, and developing new

business opportunities in renewables and low carbon solutions. Equinor’s total R&D activities are presented in note 9 Auditor’s

remuneration and Research and development expenditures (expensed R&D) and in note 12 Property, Plant & Equipment (capitalised

R&D).

Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of Equinor’s

economic assumptions and future cash flow estimations. The resulting effects and Equinor's exposure to them are sources of

uncertainty. Estimating global energy demand and commodity prices towards 2050 is challenging due to various complex factors,

including technology change, taxation and production limits, which may change over time. This could lead to significant changes in

accounting estimates, such as useful life (depreciation period and timing of asset retirement obligations), value-in-use (impairment

assessments), and deferred tax assets (see note 11 Income taxes for expected utilisation period of tax losses carried forward and

recognised as deferred tax assets).

Commodity prices

Equinor’s commodity price assumptions applied in value-in-use impairment testing are based on management’s best estimate of

future market trends. This price-set is currently not equal to the price-set in accordance with achieving net zero emissions by 2050 as

outlined in the WEO Net Zero Emissions by 2050 scenario. Changes in how the world acts with regards to achieving the goals in the

Paris agreement could have a negative impact on the valuation of Equinor’s assets. Calculated possible impairments of upstream

production assets and certain intangible assets using assumed prices for two scenarios estimated by the International Energy Agency

(IEA) are provided in the sensitivity table below. These illustrative impairment sensitivity calculations are based on a simplified model

with limitations as described in note 14 Impairments. A linear bridging was applied between current prices and the first price point in

the price sets disclosed in both scenarios. USD

2

 per bbl of transportation cost was added to the Brent-prices in the scenarios for

comparability with management’s current best estimate. The IEA scenarios primarily stress oil and gas prices, not reflecting the

potential impact on Equinor’s renewable and low carbon projects or trading and refinery margins. Furthermore, the MMP and REN

segments represent only around

12

% of Equinor’s total book value of non-current segment assets and equity accounted investments,

as disclosed in note 5 Segments.

Cost of CO

2

The EU ETS price has increased significantly from

25

 EUR/tonne in 2020 to an average cost of EU ETS allowances of

86

 EUR/tonne

in 2023 (

81

 EUR/tonne in 2022). In its commodity price assumptions Equinor projects the price to remain high, in the region of

80

EUR/tonne for the next couple of years in real 2023 terms. In 2040 the price expected to increase to around

130

 EUR/tonne (

109

EUR/tonne projected in 2022), thereafter increasing to around

150

 EUR/tonne in 2050 (

135

 EUR/tonne project in 2022) in real 2023

terms. As such, Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical

range than today, and a global tax on CO

₂

 emissions will have a negative impact on the valuation of Equinor’s oil and gas assets.

Currently, Equinor pays CO

₂

 fees in Norway, the UK, Germany, Canada and Nigeria. Norway’s Climate Action Plan for the period

2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

₂

 tax (the total of EU ETS + Norwegian CO

₂

 tax) in

Norway to

2,000

 NOK/ tonne (real 2020) in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor’s responses to this risk include evaluation of carbon intensity on both project and portfolio level in investment and divestment

decisions. Equinor currently uses an internal cost of carbon, set at

82

 USD/tonne in 2025 and increasing to

115

 USD/ tonne by 2030

and staying flat thereafter (in countries with higher carbon costs, country specific cost expectations are used). This cost-scenario is

uncertain but serves as a placeholder for possible future CO

₂

 pricing systems, making sure the assets are financially robust.

Climate-related considerations are included directly in the impairment calculations by estimating the CO

₂

 taxes in the cash flows, and

indirectly through estimated commodity prices related to supply and demand. The CO

₂

 prices also have effect on the estimated

production profiles and economic cut-off of the projects. To reflect that carbon will have a cost for all Equinor’s assets, the current best

Equinor Annual Report on Form 20-F 2023 87

estimate of CO

2

 prices is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where

Equinor has not established specific estimates.

Sensitivity table

The table below presents some relevant prices and variables compared to management’s best estimate, and an illustrative potential

impairment effect given these scenarios. The scenario price-sets were retrieved from IEA’s report, World Energy Outlook 2023. Prices

were adjusted for inflation and presented in Real 2023. See section Profitable portfolio in Chapter 2.2. in the Integrated annual report

for more details about the scenarios:

Management's price assumptions

1)

Net Zero Emissions (NZE) by 2050

Scenario

4)

Announced Pledges Scenario (APS)

5)

Brent blend, 2030

78

USD/bbl

46

USD/bbl

79

USD/bbl

Brent blend, 2040

73

USD/bbl

37

USD/bbl

72

USD/bbl

Brent blend, 2050

68

USD/bbl

28

USD/bbl

65

USD/bbl

TTF, 2030

9.1

USD/MMBtu

4.5

USD/MMBtu

6.8

USD/MMBtu

TTF, 2040

9.5

USD/MMBtu

4.4

USD/MMBtu

6.2

USD/MMBtu

TTF, 2050

9.5

USD/MMBtu

4.3

USD/MMBtu

5.6

USD/MMBtu

EU ETS

2), 3)

, 2030

123

USD/tCO

2

146

USD/tCO

2

141

USD/tCO

2

EU ETS

2), 3)

, 2040

150

USD/tCO

2

214

USD/tCO

2

182

USD/tCO

2

EU ETS

2), 3)

, 2050

176

USD/tCO

2

261

USD/tCO

2

208

USD/tCO

2

Illustrative potential impairment (USD)

~

10.0

billion

~

3.0

billion

1)

Management’s future commodity price assumptions applied when estimating value in use, see note 14 Impairments.

2)

 Scenarios: Price of CO

2

 quotas in advanced economies with net zero pledges, not including any other CO

2

 taxes.

3)

 EU ETS price assumptions have been translated from EUR to USD using Equinor’s assumptions for currency rates, EUR/USD =

1,176

.

4)

 A scenario where all national energy and climate targets made by governments are met on time and in full. Using this scenario, the world is expected to

reach a 1.7ºC increase in the year 2100.

5)

 A scenario where the world moves on a potential path towards limiting global warming to 1.5 °C relative to pre-industrial levels.

Compared to last year’s results, the illustrative potential impairments associated with the APS scenario have increased from less than

USD

0.5

 billion to around USD

3

 billion. Similarly, the NZE scenario has increased to around USD

10

 billion, compared to around USD

4 billion last year. This is significantly impacted by the linear bridging between the current commodity prices and the first price point for

the WEO scenarios, consistent with previous year’s methodology, but with lower current prices this year.

An increase in systematic climate risk may result in a higher discount rate applied for impairment testing purposes. Please see note 14

Impairments for further information on discount rate sensitivity.

Robustness of Equinor’s portfolio, and risk of stranded assets

The transition to renewable energy, technological development, and the expected reduction in global demand for carbon-based

energy, may impact the future profitability of certain upstream oil and gas assets. Equinor uses scenario analysis to outline different

possible energy futures, some of which imply lower oil and natural gas prices and higher CO

2

 tax. If this materialises, it can lead to a

decrease in the cash flow from oil and gas, and potentially reduce the economic lifetime of some assets. Equinor seeks to mitigate this

risk by improving the resilience of the existing upstream portfolio, maximising the efficiency of the infrastructure on the NCS and

optimising the high-quality international portfolio. The project portfolio is robust to low oil and gas prices and actions are in place to

maintain cost discipline across the company. Equinor will continue to add high value barrels to the portfolio through exploration and

increased recovery, with the expectation to maintain strong oil and gas cash flow from operations until 2035. Equinor aims to maintain

significant capex flexibility in the current portfolio, with only sanctioned projects being committed representing less than

50

% of the

yearly organic capex from 2025. This is expected to allow Equinor to optimise and re-prioritise non-sanctioned projects to ensure

continued generation of high value through cycles. Equinor will continuously assess the current and future exposure of its portfolio and

take preventative measures to manage physical climate risks.

Based on the current production profiles, approximately

65

% of Equinor’s proved oil and gas reserves, as defined by the SEC, are

expected to be produced in the period 2024-2030 and more than

99

% in the period 2024-2050. This indicates a lower risk of early

cessation of production and can provide flexibility in adapting to the changing market conditions or a shift in global energy demand.

Equinor aims to continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to

minimise emissions and maximise value. During the transition, Equinor anticipates allocating a reducing share of its gross

capex to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching Equinor’s net

50

% reduction ambition for operated scope 1 and 2 emissions will require a company-wide, coordinated effort to execute and

mature the abatement projects, improve energy efficiency, develop new technologies, and strengthen the resilience of the

portfolio. Equinor aims to achieve a

20

% reduction in net carbon intensity by 2030 and a

40

% reduction by 2035, including

Equinor Annual Report on Form 20-F 2023 88

scope 3 emissions. The combination of increased renewables and decarbonised energy, the scale up of low carbon solutions

such as CCS and optimisation of the oil and gas portfolio provides confidence that Equinor can meet its medium-term

ambitions. As such, Equinor’s ambition to become a net-zero company by 2050 have currently not resulted in the identification

of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market, and strategic considerations. Provided that the economic assumptions

would deteriorate to such an extent that undeveloped assets controlled by Equinor should not materialise, assets at risk are mainly

comprised of the intangible assets Oil and Gas prospects, signature bonuses and the capitalised exploration costs, with a total

carrying value of USD

3,205

 million in 2023 (USD

3,634

 million in 2022). See note 13 Intangible assets for more information regarding

Equinor’s intangible assets.

Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result of Equinor’s ambition to become a net-

zero company by 2050. However, if the business cases of Equinor’s producing oil and gas assets should change materially, this could

affect the timing of cessation of the assets. A shorter production period will increase the carrying value of the liability. To illustrate,

performing removal five years earlier than currently scheduled would increase the liability by around USD

1.2

 billion before tax (around

USD

1

 billion in 2022). See note 23 Provisions and other liabilities for more information regarding Equinor’s ARO, including expected

timing of cash outflows of recognised asset retirement obligations. The most significant cash outflows are expected within the year

2043.

4 Financial risk and capital management

General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including commodity price risk, currency

risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor’s approach to risk management includes assessing

and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio level between the most

important market risks and the natural hedges inherent in Equinor’s portfolio. This approach allows Equinor to reduce the number of

risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is an advisory body in Enterprise Risk Management, is responsible for Equinor’s Enterprise Risk

Management and for proposing appropriate measures to adjust risk at the corporate level. This includes assessing Equinor’s financial

risk policies.

Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity markets and is exposed to market risks

including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that can affect the revenues

and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with a focus on achieving

the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures are managed at the corporate level,

while short-term exposures are managed according to trading strategies and mandates. Mandates in the trading organisations within

crude oil, refined products, natural gas, and electricity are relatively restricted compared to the total market risk of Equinor.

Commodity price risk

Equinor’s most important long-term commodity risk (crude oil and natural gas) is related to future market prices as Equinor´s risk

policy is to be exposed to both upside and downside price movements. In the longer term, also power price risk is to a large extent

expected to contribute to Equinor’s commodity price risk portfolio.

To manage short-term commodity risk, Equinor enters into

commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market swaps and

contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor’s bilateral gas sales

portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-

Continental Exchange (ICE), the CME group, the OTC Brent market, and crude and refined products swap markets. The term of

natural gas, power, and emission derivatives is usually three years or less, and they are mainly OTC physical forwards and options,

NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX and ICE.

The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative contracts. Equinor's assets

and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded

instruments, including embedded derivatives that have been bifurcated and recognised at fair value in the Consolidated balance

sheet.

Price risk sensitivities at the end of 2023 and 2022 at

30

% are assumed to represent a reasonably possible change based on the

duration of the derivatives. Since none of the derivative financial instruments included in the table below are part of hedging

relationships, any changes in the fair value would be recognised in the Consolidated statement of income.

Equinor Annual Report on Form 20-F 2023 89

Commodity price sensitivity

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

442

(442)

666

(666)

Natural gas, electricity and CO2 net gains/(losses)

86

(52)

(3)

140

Currency risk

Equinor’s cash flows from operating activities deriving predominantly from oil and gas sales, operating expenses and capital

expenditures are mainly in USD, but taxes, dividends to shareholders on the Oslo Børs and a share of our operating expenses and

capital expenditures are in NOK. Accordingly, Equinor’s currency management is primarily linked to mitigate currency risk related to

payments in NOK. This means that Equinor regularly purchases NOK, primarily spot, but also on a forward basis using conventional

derivative instruments.

The following currency risk sensitivity for financial instruments has been calculated, by assuming a

11

% reasonable possible change

in the most relevant foreign currency exchange rates that impact Equinor’s financial accounts, based on balances at 31 December

2023. As of 31 December 2022, a change of

12

% in the most relevant foreign currency exchange rates was viewed as a reasonable

possible change. With reference to the table below, a negative figure represents a negative equity impact / loss, while a positive figure

represents a positive equity impact / gain.

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

1,519

406

903

Shareholders equity through P&L

(413)

(418)

(92)

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(1,519)

(406)

(903)

Shareholders equity through P&L

413

418

92

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

Impact from a 12% strengthening of given currency vs USD on:

Shareholders equity through OCI

3,552

837

750

Shareholders equity through P&L

(889)

(259)

(389)

Impact from a 12% weakening of given currency vs USD on:

Shareholders equity through OCI

(3,552)

(837)

(750)

Shareholders equity through P&L

889

259

389

Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these bonds are

converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond

portfolio based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed/floating

mix on interest rate exposure may vary from time to time. For more detailed information about Equinor’s long-term debt portfolio see

note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of

1.3

 percentage points as a reasonable

possible change in interest rates at the end of 2023. In 2022, a change of

1.2

 percentage points in interest rates was viewed as a

reasonable possible change. A decrease in interest rates will have an estimated positive impact on net financial items in the

Consolidated statement of income, while an increase in interest rates will have an estimated negative impact on net financial items in

the Consolidated statement of income.

Interest risk sensitivity

At 31 December

2023

2022

Equinor Annual Report on Form 20-F 2023 90

(in USD million)

 - 1.3 percentage

points

+ 1.3 percentage

points

 - 1.2 percentage

points

+ 1.2 percentage

points

Positive/(negative) impact on net financial items

336

(333)

369

(366)

Equity price risk

Equinor’s captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some other listed

and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor is exposed to equity price risk,

defined as the risk of declining equity prices, which can result in a decline in the carrying value of certain Equinor’s assets recognised

in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive insurance company is managed, with the aim of

maintaining a moderate risk profile, through geographical diversification and the use of broad benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a

35

% reasonable possible change in equity prices that

impact Equinor’s financial accounts, based on balances at 31 December 2023. At 31 December 2022, a change of

35

% in equity

prices was equally viewed as a reasonable possible change. The estimated gains and the estimated losses following from a change in

equity prices would impact the Consolidated statement of income.

Equity price sensitivity

At 31 December

2023

2022

(in USD million)

- 35%

+ 35%

- 35%

+ 35%

Net gains/(losses)

(552)

552

(450)

450

Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The purpose of

liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made six times per year.

Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls

from counterparties. 

If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Equinor

raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The policy is to have a maturity profile

with repayments not exceeding

5

% of capital employed in any year for the nearest five years. Equinor’s non-current financial liabilities

have a weighted average maturity of approximately nine years. For more information about Equinor’s non-current financial liabilities,

see note 21 Finance debt.

Short-term funding needs will normally be covered by the USD

5.0

 billion US Commercial paper programme (CP) which is backed by

a revolving credit facility of USD

6.0

 billion, supported by

19

 core banks,

maturing in 2026

. The facility supports secure access to

funding, supported by the best available short-term rating. As at 31 December 2023 the facility has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor’s financial liabilities.

At 31 December

2023

2022

(in USD million)

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Year 1

20,209

1,369

857

20,172

1,325

1,065

Year 2 and 3

6,035

1,434

636

6,292

1,421

752

Year 4 and 5 

5,601

496

404

5,785

504

486

Year 6 to 10

6,846

405

1,016

8,749

465

1,202

After 10 years

10,751

72

340

11,204

120

706

Total specified

49,442

3,776

3,253

52,202

3,835

4,211

Credit risk

Equinor Annual Report on Form 20-F 2023 91

Credit risk is the risk that Equinor’s customers or counterparties will cause Equinor financial loss by failing to honour their obligations.

Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments, derivative financial

instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce or control credit risk both on a

counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments, and cash collateral.

Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where Equinor has

material credit exposure to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor’s

assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements

and other relevant business information. All counterparties are re-assessed regularly.

Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor’s portfolio as well as maximum

credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual, material exposures

against limits on a daily basis. Equinor’s total credit exposure is geographically diversified among a number of counterparties within the

oil and energy sector, as well as larger oil and gas consumers and financial counterparties. The majority of Equinor’s credit exposure is

with investment- grade counterparties.

The following table contains the carrying amount of Equinor’s financial receivables and derivative financial instruments split by

Equinor’s assessment of the counterparty's credit risk. Trade and other receivables include

1

% overdue receivables of more than 30

days. A provision has been recognised for expected credit losses of trade and other receivables using the expected credit loss model.

Only non-exchange traded instruments are included in derivative financial instruments.

(in USD million)

Non-current financial

receivables

Trade and other

receivables

Non-current

derivative financial

instruments

Current derivative

financial instruments

At 31 December 2023

Investment grade, rated A or above

193

5,857

305

565

Other investment grade

8

5,132

7

565

Non-investment grade or not rated

140

5,204

247

248

Total financial assets

341

16,193

559

1,378

At 31 December 2022

Investment grade, rated A or above

1,633

6,125

390

1,715

Other investment grade

12

8,725

41

1,393

Non-investment grade or not rated

14

6,761

259

931

Total financial assets

1,659

21,611

690

4,039

For more information about Trade and other receivables, see note 18 Trade and other receivables.

The table below presents the amounts offset under the terms of various offsetting agreements for financial assets and

liabilities. These agreements are mainly entered into to manage the credit risks associated with over-the-counter commodity

trading as well as regular commodity purchases and sales and enable Equinor and their counterparties to set off financial

liabilities against financial assets in the ordinary course of business as well as in case of default. In addition, exchange-traded

commodity derivatives are offset towards collateral receipts/payments as a result of day-to-day cash settlements based on

change in fair value of open derivative positions. Amounts not qualifying for offsetting consists of collateral receipts or

payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There

exist no restrictions on collaterals received.

Equinor Annual Report on Form 20-F 2023 92

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2023

Financial assets

Trade receivables

17,139

3,133

14,006

0

14,006

Collateral receivables

8,713

6,526

2,186

2,186

0

Derivative financial instruments

12,767

10,829

1,937

677

1,260

Total financial assets

38,619

20,488

18,129

2,863

15,266

Financial liabilities

Trade payables

14,184

3,133

11,051

0

11,051

Collateral liabilities

7,791

7,333

458

458

0

Derivative financial instruments

13,437

10,023

3,414

2,405

1,009

Total financial liabilities

35,412

20,488

14,923

2,863

12,060

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2022

Financial assets

Trade receivables

25,607

7,464

18,143

0

18,143

Collateral receivables

16,923

13,455

3,468

3,468

0

Derivative financial instruments

28,535

23,806

4,730

1,708

3,022

0

Total financial assets

71,065

44,725

26,341

5,176

21,164

Financial liabilities

Trade payables

19,913

7,464

12,449

0

12,449

Collateral liabilities

13,936

12,365

1,571

1,571

0

Derivative financial instruments

31,377

24,895

6,482

3,605

2,877

Total financial liabilities

65,226

44,725

20,502

5,176

15,326

Capital management

The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to ensure sufficient

financial flexibility. Equinor’s primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts

for Norwegian Government ownership). Equinor’s current long-term ratings are AA- with a stable outlook (including one notch uplift)

and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody’s, respectively. In order to monitor financial robustness,

a key ratio utilised by Equinor is the non-GAAP metric of “Net interest-bearing debt adjusted (ND2) to Capital employed adjusted

(CE2)”.

At 31 December

(in USD million)

2023

2022

Net interest-bearing debt adjusted, including lease liabilities (ND1)

(5,040)

(6,750)

Net interest-bearing debt adjusted (ND2)

(8,610)

(10,417)

Equinor Annual Report on Form 20-F 2023 93

Capital employed adjusted, including lease liabilities (CE1)

43,460

47,239

Capital employed adjusted (CE2)

39,890

43,571

Net debt to capital employed adjusted, including lease liabilities (ND1/CE1)

(11.6%)

(14.3%)

Net debt to capital employed adjusted (ND2/CE2)

(21.6%)

(23.9%)

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial investments,

adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD

2,030

 million and USD

6,538

 million for 2023 and 2022, respectively). CE1 is defined as Equinor's total equity (including non-controlling interests) and ND1.

ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD

3,570

 million and USD

3,668

 million for 2023 and 2022,

respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

5 Segments

Accounting policies

Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production

USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the

line-item Additions to PP&E, intangibles and Equity accounted investments in which movements related to changes in asset

retirement obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external

parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current

financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly

from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market

prices. The transactions are eliminated upon consolidation.

The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources, commercial

development and safe and efficient operation of the oil and gas portfolios within their respective geographical areas: E&P Norway on

the Norwegian continental shelf, E&P USA in USA and E&P International worldwide outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and

ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas, NGL and

refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading

and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines, shipping, trucking and rail. In

addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such as offshore wind, green hydrogen,

storage solutions, and solar power.

Segment information for the years ended 31 December 2023, 2022, and 2021 are presented below. For revenues per geographical

area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments,

please refer to the related notes: note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments, contingent

liabilities, and contingent assets.

Equinor Annual Report on Form 20-F 2023 94

2023

E&P

Norway 

E&P

International

E&P USA

MMP

REN

Other

Eliminations 

Total group

(in USD million)

Revenues third party

230

993

277

105,242

20

85

0

106,848

Revenues and other income inter-segment

37,999

6,009

4,009

633

12

33

(48,695)

0

Net income/(loss) from equity accounted

investments

0

28

0

12

(33)

(8)

0

(1)

Other income

111

1

32

23

18

142

0

327

Total revenues and other income 

38,340

7,032

4,319

105,908

17

253

(48,695)

107,174

Purchases [net of inventory variation]

0

(70)

0

(95,769)

0

(1)

47,665

(48,175)

Operating, selling, general and

administrative expenses

(3,759)

(2,176)

(1,178)

(4,916)

(462)

(201)

893

(11,800)

Depreciation and amortisation

(4,429)

(2,123)

(1,779)

(897)

(12)

(133)

0

(9,373)

Net impairment (losses)/reversals

(588)

(310)

290

(343)

(300)

(10)

0

(1,260)

Exploration expenses

(476)

(20)

(299)

0

0

0

0

(795)

Total operating expenses

(9,253)

(4,700)

(2,966)

(101,925)

(774)

(345)

48,558

(71,404)

Net operating income/(loss)

29,087

2,332

1,353

3,984

(757)

(92)

(137)

35,770

Additions to PP&E, intangibles and equity

accounted investments

5,939

4,376

1,206

844

2,007

128

0

14,500

Balance sheet information

Equity accounted investments 

3

0

0

783

1,665

57

0

2,508

Non-current segment assets 

28,915

17,977

11,049

3,997

1,575

1,018

0

64,530

Non-current assets not allocated to

segments 

14,487

Total non-current assets 

81,525

Assets classified as held for sale

0

1,064

0

0

0

0

0

1,064

Equinor Annual Report on Form 20-F 2023 95

2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

304

1,099

305

147,164

16

115

0

149,004

Revenues and other income inter-segment

74,631

6,124

5,217

527

0

55

(86,554)

0

Net income/(loss) from equity accounted

investments

0

172

0

406

58

(16)

0

620

Other income

994

35

0

9

111

33

0

1,182

Total revenues and other income 

75,930

7,431

5,523

148,105

185

187

(86,554)

150,806

Purchases [net of inventory variation]

0

(116)

0

(139,916)

0

0

86,227

(53,806)

Operating, selling, general and

administrative expenses

(3,782)

(1,698)

(938)

(4,591)

(265)

(223)

904

(10,593)

Depreciation and amortisation

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

0

(8,878)

Net impairment (losses)/reversals

819

(286)

1,060

895

0

0

0

2,487

Exploration expenses

(366)

(638)

(201)

0

0

0

0

(1,205)

Total operating expenses

(8,315)

(4,183)

(1,501)

(144,493)

(269)

(365)

87,130

(71,995)

Net operating income/(loss)

67,614

3,248

4,022

3,612

(84)

(178)

577

78,811

Additions to PP&E, intangibles and equity

accounted investments

4,922

2,623

764

1,212

298

176

0

9,994

Balance sheet information

Equity accounted investments 

3

550

0

688

1,452

65

0

2,758

Non-current segment assets 

28,510

15,868

11,311

4,619

316

1,031

0

61,656

Non-current assets not allocated to

segments 

15,437

Total non-current assets 

79,851

Assets classified as held for sale

0

1,018

0

0

0

0

0

1,018

Equinor Annual Report on Form 20-F 2023 96

2021

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

261

1,115

377

86,883

8

99

0

88,744

Revenues and other income inter-segment

38,972

4,230

3,771

321

0

41

(47,335)

0

Net income/(loss) from equity accounted

investments

0

214

0

22

16

7

0

259

Other income

154

5

0

168

1,386

208

0

1,921

Total revenues and other income

39,386

5,565

4,149

87,393

1,411

355

(47,335)

90,924

Purchases [net of inventory variation]

0

(58)

0

(80,873)

0

(1)

45,772

(35,160)

Operating, selling, general and

administrative expenses

(3,653)

(1,405)

(1,074)

(3,753)

(163)

(432)

1,102

(9,378)

Depreciation and amortisation

(6,002)

(1,734)

(1,665)

(869)

(3)

(158)

0

(10,432)

Net impairment (losses)/reversals

1,102

(1,587)

(69)

(735)

0

2

0

(1,287)

Exploration expenses

(363)

(451)

(190)

0

0

0

0

(1,004)

Total operating expenses

(8,915)

(5,237)

(2,998)

(86,230)

(166)

(590)

46,873

(57,261)

Net operating income/(loss)

30,471

329

1,150

1,163

1,245

(234)

(461)

33,663

Additions to PP&E, intangibles and equity

accounted investments

4,943

1,834

690

517

457

64

0

8,506

Balance sheet information

Equity accounted investments

3

1,417

0

113

1,108

45

0

2,686

Non-current segment assets

36,502

15,422

11,406

4,006

157

1,032

0

68,527

Non-current assets not allocated to

segments

13,406

Total non-current assets

84,618

Assets classified as held for sale

0

676

0

0

0

0

0

676

Equinor Annual Report on Form 20-F 2023 97

Non-current assets by country

At 31 December

(in USD million)

2023

2022

Norway

32,977

33,242

USA

12,587

12,343

Brazil

10,871

9,400

UK

5,535

3,688

Canada

1,157

1,171

Angola

1,103

895

Denmark

973

497

Argentina

648

615

Algeria

474

622

Poland

447

270

Other

265

1,672

Total non-current assets

1)

67,038

64,414

1)

Excluding deferred tax assets, pension assets and non-current financial assets.

 Non-current assets are attributed to country of

operations.

Equinor Annual Report on Form 20-F 2023 98

6 Acquisitions and disposals

Accounting policies

Business combinations and divestments

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition

method when control is transferred to the group. The purchase price includes total consideration paid to acquire the entity’s assets

and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are

measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative

expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the

Consolidated statement of income under Other income.

Equinor recognises a gain or loss on disposal of a subsidiary when control is lost. Any interest retained in the former subsidiary is

measured at fair value at the time of loss of control. However, when partially divesting subsidiaries that do not constitute a business,

and where the retained investment in the former subsidiary is an associate or a jointly controlled investment, Equinor recognises the

gain or loss only on the divested part within Other income or Operating expenses, respectively. The interest retained in the former

subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities

previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of

income.

Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This

condition is met when an asset is available for immediate sale in its present condition, Equinor’s management is committed to the

sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are

normally met when management has approved a negotiated letter of intent with the counterparties (a ‘DGC’). Liabilities directly

associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified

separately.

Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-

case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an asset purchase,

and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar

assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of oil

and gas exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to

represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10

Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The assessment requires judgement to

be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the IFRS Accounting Standards’

requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been

postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal

entities concurrently with a portion of the entities’ shares being sold to a third party, thereby resulting in Equinor’s loss of control of

those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to

recognise the gain only on the divested portion.

----------------------------------------------------------------------------------------------------------------------------------------

2023

Acquisitions

Acquisition of Rio Energy

On 3 November 2023, Equinor closed a transaction with Denham Capital to acquire

100

% of the shares in Horus Investimentos S.A.,

the parent company of Rio Energy Participações S.A., a leading onshore renewables company in Brazil. The cash consideration

amounted to USD

82

 million in addition to USD

268

 million in capital contribution to settle Rio Energy’s external financing. The acquired

portfolio includes a producing onshore wind farm in the north-eastern state of Bahia, a pre-construction solar photovoltaic (PV) portfolio

and a pipeline of 1.2 GW of onshore wind and solar projects. This transaction resulted in an increase in Equinor’s property, plant and

equipment of USD

350

 million. The transaction has been accounted for as a business combination within the REN segment. The

purchase price and the purchase price allocation are preliminary.

Equinor Annual Report on Form 20-F 2023 99

Acquisition of Suncor Energy UK Limited

On 30 June 2023, Equinor closed a transaction with Suncor Energy UK Holdings Ltd to acquire

100

% of the shares in Suncor Energy

UK Limited for a total consideration of USD

847

 million after customary adjustments for working capital. The transaction includes a non-

operated interest in the producing Buzzard oil field (

29.89

%) and an additional interest in the operated Rosebank development (

40

%).

The transaction has been accounted for within the E&P International segment as a business combination, resulting in an increase in

Equinor’s property, plant and equipment of USD

1,490

 million and deferred tax liabilities of USD

672

 million. The purchase price

allocation remains preliminary.

Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar

Aps to acquire

100

% of the shares in the Danish solar developer BeGreen Solar Aps. The cash consideration amounted to USD

252

million (EUR

235

 million), in addition to a consideration contingent on the successful delivery of future solar projects above an agreed

megawatt threshold. The transaction has been accounted for within the REN segment as a business combination, resulting in an

increase of Equinor’s intangible assets of USD

423

 million.

Disposals

Equinor Energy Ireland Limited

On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity position

in the Corrib gas project in Ireland, covering

100

% of the shares in Equinor Energy Ireland Limited (EEIL). Prior to closing, Equinor

received an extraordinary dividend of USD

371

 million from EEIL. Total consideration amounted to USD

362

 million, including cash

settlement of contingent consideration. A loss of USD

258

 million has been recognised within the E&P International segment and

presented in the line item Operating expenses in the Consolidated statement of income.

Held for sale

Divestment of interest in Azerbaijan

On 22 December 2023, Equinor entered into an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR) to sell

its interest in its Azerbaijan assets. The assets comprise a

7.27

% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in

the Azerbaijan sector of the Caspian Sea,

8.71

% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and

50

% in the Karabagh oil

field. Closing is expected during 2024 subject to regulatory and contractual approvals. The assets have been classified as held for sale

resulting in a USD

310

 million impairment within the E&P International segment, presented in the line item Depreciation, amortisation

and net impairments in the Consolidated statement of income.

2022

Acquisitions

Acquisition of Triton Power

On 1 September 2022, Equinor and SSE Thermal Generation Holdings Limited (SSE Thermal) closed a transaction to acquire the UK

power company Triton Power Holdings Ltd (Triton Power) from Triton Power Partners LP owned by Energy Capital Partners (ECP).

Equinor’s share of the consideration was USD

141

 million (GBP

120

 million), after adjustments that mainly related to net debt and

working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station with an installed capacity of 1.2

GW. Equinor and SSE Thermal own

50

% each of Triton Power, and Equinor is accounting for the investment under the equity method

as a joint venture in the MMP segment.

Acquisition of Statfjord

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy’s ownership interests in production licences in the Statfjord

area which covers the Norwegian and UK Continental Shelves ranging from

11.56

% to

48.78

%. All licences are operated by Equinor.

The cash consideration received was USD

168

 million. The assets and liabilities acquired have been reflected in accordance with the

principles in IFRS 3 Business Combinations. The transaction is reflected in the E&P Norway and E&P International segments. In the

segment E&P Norway, the acquisition resulted in an increase of USD

98

 million in property, plant and equipment, an increase of USD

390

 million in asset retirement obligation, a reduction of deferred tax liability of USD

298

 million and an increase in taxes payable of

USD

98

 million. In the segment E&P International, the acquisition resulted in an increase of USD

98

 million in property, plant and

equipment, an increase of USD

241

 million in asset retirement obligation and an increase of deferred tax asset of USD

86

 million.

Disposals

Ekofisk and Martin Linge on the Norwegian Continental Shelf

On 30 September 2022, Equinor closed a transaction with Sval Energi AS to divest Equinor’s entire ownership share in the Greater

Ekofisk Area including its share in Norpipe Oil AS, and a

19

% ownership share in Martin Linge. The cash consideration at closing

amounted to USD

293

 million. Equinor retained a

51

% ownership share in Martin Linge and continues as operator of the field. The

Equinor Annual Report on Form 20-F 2023 100

disposal resulted in a decrease in property, plant and equipment of USD

1,493

 million, a decrease in asset retirement obligation of USD

376

 million, a decrease in deferred tax liability of USD

597

 million and a decrease in taxes payable of USD

686

 million. A post-tax gain

of USD

655

 million is presented in the line item Other income in the Consolidated statement of income in the E&P Norway segment.

Exit Russia

Following Russia’s invasion of Ukraine in February 2022, Equinor announced that it had decided to stop new investments in Russia and

start the process of exiting Equinor’s joint arrangements. Based on this decision, Equinor evaluated its assets in Russia and recognised

net impairments of USD

1,083

 million in the first quarter, of which USD

251

 million was related to property, plant and equipment and

intangible assets and USD

832

 million was related to investments accounted for using the equity method. The impairments were net of

contingent consideration from the time of acquiring the assets. The impairments were recognised in the line items Depreciation,

amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based on the nature of the

impaired assets and reflected in the E&P International segment. During the second quarter, Equinor transferred its participating interests

in four Russian entities to Rosneft and was released from all future commitments and obligations with no material impact on the financial

statements. The ownership interests in Kharyaga were transferred to the operator.

Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any new trades or engage in new transport of oil

and oil products from Russia. Equinor has assessed the accounting impact of certain commitments arising from such contracts entered

into prior to the invasion and deem the impact to be immaterial.

10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni to sell a

10

% equity interest in the Dogger Bank C project in the UK for a

total consideration of USD

91

 million (GBP

68

 million), resulting in a gain of USD

87

 million (GBP

65

 million). After closing, Equinor’s

ownership share is

40

%. Equinor continues to equity account for the remaining investment as a joint venture. The gain is presented in

the line item Other income in the Consolidated statement of income in the REN segment.

Equinor Annual Report on Form 20-F 2023 101

7 Total revenues and other income

Accounting policies

Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption, Revenues, in the Consolidated

statement of income.

Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products, power and other merchandise is recognised when a customer

obtains control of those products, which for tangible products normally is when title passes at point of delivery, based on the

contractual terms of the agreements. Each such sale normally represents a single performance obligation. In the case of natural gas

as well as power, which is delivered on a continuous basis through pipelines and grid, sales are completed over time in line with the

delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and

Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial

instruments or part of Equinor’s trading activities, they are settled and presented on a net basis as Other revenue. Reference is made

to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of

Equinor’s own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of

volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the

ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership

interest, costs are deferred for the underlift.

Certain long-term LNG and natural gas sales contracts include clauses which entail price reviews at regular intervals at the discretion

of either party. Where updated prices have not yet been agreed upon for volumes already delivered, it is necessary to estimate the

amount of variable consideration Equinor expects to be entitled to for these volumes. In the frequently volatile markets, there is a

degree of estimation uncertainty and reasoned judgement in establishing the expected variable consideration.

Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as other revenue

if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain

production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related

to sales contracts or revenue-related risk management.

Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The

Norwegian State's participation in petroleum activities is organised through the Norwegian State’s Direct Financial Interests (SDFI). All

purchases and sales of the SDFI's oil and natural gas liquids production are classified as purchases [net of inventory variation] and

revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI’s account and risk, the SDFI’s production of natural gas including Liquefied Natural

Gas (LNG). These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial

statements. Natural gas sales made in the name of Equinor’s subsidiaries are also presented net of the SDFI’s share in the

Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement,

Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards sales to third party customers.

Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor

purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has

concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although

Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI.

On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and

SDFI.

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Equinor Annual Report on Form 20-F 2023 102

Revenues from contracts with customers by geographical areas

Equinor has business operations in around 30 countries.

When attributing the line-item Revenues from contracts with customers for 2023

to the country of the legal entity executing the sale, Norway constitutes

79

% and USA constitutes

18

%. For 2022 the revenues to

Norway and USA constituted

84

% and

13

% respectively, and for 2021

81

% and

13

% respectively.

 Revenues from contracts with

customers are mainly reflecting such revenues from the reporting segment MMP.

Revenues from contracts with customers and other revenues

(in USD million)

Note

2023

2022

2021

Crude oil

56,861

58,524

38,307

Natural gas

26,386

65,232

28,050

 - European gas

23,174

58,239

24,900

 - North American gas

1,111

2,884

1,783

 - Other incl LNG

2,102

4,109

1,368

Refined products

10,083

11,093

11,473

Natural gas liquids

8,345

9,240

8,490

Transportation

1,425

1,470

921

Other sales

3,032

4,702

1,006

Total revenues from contracts with customers

106,132

150,262

88,247

Taxes paid in-kind

342

412

345

Physically settled commodity derivatives

1,331

(2,534)

(1,075)

Gain/(loss) on commodity derivatives

(1,041)

739

951

Change in fair value of trading inventory

(334)

(194)

0

Other revenues

418

319

276

Total other revenues

716

(1,258)

497

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

Equinor Annual Report on Form 20-F 2023 103

8 Salaries and personnel expenses

(in USD million, except average number of employees)

2023

2022

2021

Salaries

1)

2,876

2,875

2,962

Pension costs

2)

441

458

488

Payroll tax

511

433

414

Other compensations and social costs

375

324

288

Total payroll expenses

4,203

4,090

4,152

Average number of employees

3)

22,600

21,500

21,400

1)

Salaries include bonuses and expatriate costs in addition to base pay.

2)

 See note 22 Pensions.

3)

 Part time employees amount to

2

% for 2023 and

3

% for 2022 and 2021.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours

incurred basis.

Compensation to the board of directors (BoD) and the corporate executive committee (CEC)

(in USD million)

1)

2023

2022

2021

Current employee benefits

10.7

12.9

12.2

Post-employment benefits

0.3

0.4

0.4

Other non-current benefits

0.0

0.0

0.0

Share-based payment benefits

0.3

0.2

0.1

Total benefits

11.3

13.5

12.7

1) All figures in the table are presented on accrual basis.

At 31 December 2023, 2022, and 2021 there are

no

 loans to the members of the BoD or the CEC.

Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions

and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of

purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts vested for bonus shares

granted and related social security tax was USD

78

 million, USD

85

 million, and USD

79

 million related to the 2023, 2022 and 2021

programmes, respectively. For the 2024 programme (granted in 2023), the estimated compensation expense is USD

83

 million. At 31

December 2023 the amount of compensation cost yet to be expensed throughout the vesting period is USD

176

 million.

See note 20 Shareholders’ equity, capital distribution and earnings per share for more information about share-based compensation.

Equinor Annual Report on Form 20-F 2023 104

9 Auditor’s remuneration and Research and development expenditures

Auditor's remuneration

Full year

(in USD million, excluding VAT)

2023

2022

2021

Audit fee

14.9

11.4

14.4

Audit related fee 

1.2

1.8

1.1

Tax fee

-

-

-

Other service fee 

-

-

-

Total remuneration

16.1

13.2

15.5

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences amount to USD

0.5

 million, USD

0.6

 million and USD

0.5

 million for 2023, 2022 and 2021, respectively.

Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D activities

contribute to maximising and developing long-term value from Equinor’s assets. R&D expenditures are partially financed by partners

of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD

311

 million, USD

308

 million and USD

291

 million in 2023, 2022

and 2021, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated

statement of income.

Equinor Annual Report on Form 20-F 2023 105

10 Financial items

Full year

(in USD million)

2023

2022

2021

Foreign currency exchange gains/(losses) derivative financial instruments 

(1,476)

797

870

Other foreign currency exchange gains/(losses)

2,328

1,291

(823)

Net foreign currency exchange gains/(losses)

852

2,088

47

Dividends received

218

93

39

Interest income financial investments, including cash and cash equivalents

1,468

398

38

Interest income non-current financial receivables

31

30

26

Interest income other current financial assets and other financial items

732

701

48

Interest income and other financial income

2,449

1,222

151

Gains/(losses) financial investments

123

(394)

(348)

Gains/(losses) other derivative financial instruments

351

(1,745)

(708)

Interest expense bonds and bank loans and net interest on related derivatives

(1,263)

(1,029)

(896)

Interest expense lease liabilities

(132)

(90)

(93)

Capitalised borrowing costs

468

382

334

Accretion expense asset retirement obligations

(538)

(449)

(453)

Interest expense current financial liabilities and other financial expense

(195)

(192)

(114)

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Net financial items

2,114

(207)

(2,080)

Equinor's main financial items relate to assets and liabilities in the fair value through profit or loss and the amortised cost categories.

For more information about financial instruments by category see note 28 Financial instruments and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to

liquidity and currency risk. Other foreign currency exchange gains/(losses) includes a fair value gain from derivatives related to non-

current debt of USD

315

 million in 2023, and a loss of USD

691

 million and USD

702

 million in 2022 and 2021 respectively.

Interest income financial investments, including cash and cash equivalents includes interest income related to balances at amortised

cost of USD

1,410

 million, USD

364

 million, and USD

12

 million for 2023, 2022 and 2021, respectively.

Gains/(losses) other derivative financial instruments primarily include fair value changes from interest rate related derivatives, with a

gain of USD

332

 million in 2023 and a loss of USD

1,760

 million and USD

724

 million in 2022 and 2021 respectively.

Interest expense bonds and bank loans and net interest on related derivatives includes interest expenses of USD

857

 million, USD

918

 million, and USD

990

 million for 2023, 2022 and 2021, respectively, on financial liabilities at amortised cost. It also includes net

interest on related derivatives at fair value through profit or loss, amounting to a net interest expense of USD

405

 million for 2023 and

USD

111

 million for 2022, and a net interest income of USD

94

 million for 2021.

Equinor Annual Report on Form 20-F 2023 106

11 Income taxes

Accounting policies 

Income tax

Income tax in the Consolidated statement of income comprises current income tax and effects of changes in deferred tax positions.

Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in other comprehensive

income (OCI).

Current tax consists of the expected tax payable for the year and any adjustment to tax payable for previous years. Uncertain tax

positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each

case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for

which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to differences between the carrying

amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses and credits carried forward, subject

to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income

will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income,

convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of

expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate

movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding

deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items.

Equinor has adopted amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules (top-up tax) with effect from 1

January 2023. Equinor has applied the mandatory exception and does not recognise or disclose information about deferred tax assets

and liabilities related to Pillar Two income taxes. 

The mandatory exception applies retrospectively. However, since no new legislation to implement the top-up tax was enacted or

substantively enacted on 31 December 2022 in any jurisdiction in which Equinor operates, and no related deferred tax was recognised

at that date, the retrospective application has no impact on the Consolidated financial statements. 

Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred

tax assets and deferred tax liabilities. There may be uncertainties related to interpretations of applicable tax laws and regulations

regarding amounts in Equinor’s tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may

take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions

through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations

and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is

dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the

case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions

against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased

the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient

future taxable income before tax losses expire.

-----------------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023 107

Significant components of income tax expense

Full year

(in USD million)

2023

2022

2021

Current income tax expense in respect of current year

(24,028)

(52,124)

(21,271)

Prior period adjustments

(121)

(112)

(28)

Current income tax expense

(24,149)

(52,236)

(21,299)

Origination and reversal of temporary differences

(1,529)

(2,136)

(1,778)

Recognition / derecognition of previously (un)recognised deferred tax assets

(137)

4,401

126

Change in tax regulations

4

0

4

Prior period adjustments

(169)

110

(60)

Deferred tax income/(expense)

(1,831)

2,375

(1,708)

Income tax

(25,980)

(49,861)

(23,007)

Changes to tax regimes

Pillar Two

On 24 November 2023 the Norwegian Ministry of Finance published a draft resolution on the implementation of the OECD Pillar Two

Model Rules into Norwegian legislation. The rules are introducing a global minimum tax of

15

%. The proposal was sanctioned in

January 2024 and the Norwegian Top Up Tax Act (No: “Suppleringsskatteloven”) has entered into effect for the income year 2024.

The Pillar Two rules will be applicable to the Equinor group, but Equinor’s preliminary assessment is that we do not expect any

significant economic impact from the rules.

Equinor Annual Report on Form 20-F 2023 108

Reconciliation of statutory tax rate to effective tax rate

Full year

(in USD million)

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Calculated income tax at statutory rate

1)

(8,833)

(18,168)

(7,053)

Calculated Norwegian Petroleum tax

2)

(17,226)

(36,952)

(17,619)

Tax effect uplift

3)

160

259

914

Tax effect of permanent differences regarding divestments

82

417

90

Tax effect of permanent differences caused by functional currency different from tax currency

5

145

150

Tax effect of other permanent differences

453

403

228

Recognition / derecognition of previously (un)recognised deferred tax assets

4)

(137)

4,401

126

Change in unrecognised deferred tax assets

(29)

(34)

619

Change in tax regulations

4

0

4

Prior period adjustments

(290)

(3)

(88)

Other items including foreign currency effects

(169)

(327)

(378)

Income tax

(25,980)

(49,861)

(23,007)

Effective tax rate

68.6 %

63.4 %

72.8 %

1)

The weighted average of statutory tax rates was

23.3

% in 2023,

23.1

% in 2022 and

22.3

% in 2021. The rates are influenced by

earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates.

2)

 The Norwegian petroleum income is taxable at a tax rate of

71.8

% after deducting a calculated

22

% corporate tax.

3)

 As from 2023 the uplift deduction for investments on NCS has been abolished except for asset investments that fall under the

temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to the authorities before 31

December 2022 the rules allow a direct deduction of the whole uplift in the year the capital expenditure is incurred. In 2022 the

rate was

17.69

% and this rate was reduced to

12.4

% in 2023. 

4)

 Equinor performs its assessment on DTA recognition based on sources of income such as the reversal pattern of taxable timing

differences and projections of taxable income and recognises the amount of deferred tax assets that is probable to be realised. In

2023 USD

137

 million was derecognised due to an increase in valuation allowance mainly related to Angola and Canada, compared

to a recognition of USD

4,401

 million in 2022 mainly related to unused accumulated tax losses in the US.

Equinor Annual Report on Form 20-F 2023 109

Deferred tax assets and liabilities comprise

(in USD million)

Tax losses

carried

forward

Property,

plant and

equipment 

and

intangible

assets

Asset

retirement

obligations

Lease

liabilities

Pensions

Derivatives

Other

Total

Deferred tax assets

8,575

514

7,816

1,298

747

446

1,495

20,892

Deferred tax liabilities

(28)

(26,042)

0

(2)

(6)

0

(300)

(26,378)

Net asset/(liability) at 31 December

2023

8,547

(25,528)

7,816

1,296

741

446

1,195

(5,485)

Deferred tax assets

8,105

694

7,356

1,306

694

1,131

1,348

20,634

Deferred tax liabilities

(28)

(23,356)

0

(3)

(12)

(3)

(411)

(23,813)

Net asset/(liability) at 31 December

2022

8,077

(22,662)

7,356

1,303

682

1,128

937

(3,179)

Changes in net deferred tax liability during the year were as follows:

(in USD million)

2023

2022

2021

Net deferred tax liability at 1 January

3,179

7,655

6,250

Charged/(credited) to the Consolidated statement of income

1,831

(2,375)

1,708

Charged/(credited) to Other comprehensive income

(66)

105

35

Acquisitions and disposals

981

(968)

36

Foreign currency translation effects and other effects

(440)

(1,239)

(374)

Net deferred tax liability at 31 December

5,485

3,179

7,655

Equinor Annual Report on Form 20-F 2023 110

Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a

legally enforceable right to offset current tax assets against current tax liabilities. After netting deferred tax assets and liabilities by

fiscal entity and reclassification to Assets held for sale, deferred taxes are presented on the Consolidated balance sheet as follows:

At 31 December

(in USD million)

2023

2022

Deferred tax assets

7,936

8,732

Deferred tax liabilities

13,345

11,996

Net deferred tax classified as held for sale

(76)

85

Deferred tax assets are recognised based on the expectation that sufficient taxable income will be available through reversal of

taxable temporary differences or future taxable income. At year-end 2023, the deferred tax assets of USD

7,952

 million were primarily

recognised in the US, the UK, Norway, Angola, Canada and Brazil. Of this amount, USD

965

 million was recognised in entities which

have suffered a tax loss in either the current or the preceding period. The corresponding amounts for 2022, were USD

8,817

 million

and USD

1,953

 million, respectively. The tax losses will be utilised through reversal of taxable temporary differences and future

taxable income, mainly from production of oil and gas. Around

80

% of the tax losses carried forward and recognised as deferred tax

assets are expected to be fully utilised within

10 years

.

Unrecognised deferred tax assets

At 31 December

2023

2022

(in USD million)

Basis

Tax

Basis

Tax

Deductible temporary differences

2,555

1,030

2,558

968

Unused tax credits

0

185

0

129

Tax losses carried forward

3,944

947

3,458

930

Total unrecognised deferred tax assets

6,499

2,162

6,016

2,027

Approximately

90

% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the unrecognised

tax losses that cannot be carried forward indefinitely expire

after 2027

. The unrecognised tax credits expire from 2030, while the

unrecognised deductible temporary differences do not expire under the current tax legislation. Deferred tax assets have not been

recognised in respect of these items because currently there is insufficient evidence to support that future taxable profits will be

available to secure utilisation of the benefits.

At year-end 2023, unrecognised deferred tax assets in Angola and Canada represents USD

712

 million and USD

415

 million,

respectively, of the total unrecognised deferred tax assets of USD

2,162

 million. Similar amounts for 2022 were USD

636

 million in

Angola and USD

346

 million in Canada of a total of USD

2,027

 million. The remaining unrecognised deferred tax assets originate from

several different tax jurisdictions.

Equinor Annual Report on Form 20-F 2023 

111

12 Property, plant and equipment

Accounting policies

Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset

comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate

of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.

Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with

later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the

asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing

agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective

countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and

overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and

carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection

and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or completion of

infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport systems for oil

and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when

designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the

unit of production method (UoP) based on proved reserves expected to be recovered from the area during the concession or contract

period. Depreciation of production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs

of proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances where the use

of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset’s future economic benefits are

expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets and transport systems used by

several fields is calculated on the basis of their estimated useful lives, normally using the straight-line method. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For

exploration and production assets, Equinor has established separate depreciation categories which as a minimum distinguish

between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are

accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on

derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably

certain, are recognised in the Consolidated balance sheet as a deduction to the carrying value of the asset and subsequently

recognised in the Consolidated statement of income over the life of the depreciable asset as a reduced depreciation expense.

Research and development

Equinor undertakes research and development both on a funded basis for licence holders and on an unfunded basis for projects at its

own risk, developing innovative technologies to create opportunities and enhance the value of current and future assets. Expenses

relate both to in-house resources and the use of suppliers. Equinor's own share of the licence holders' funding and the total costs of

the unfunded projects are considered for capitalisation under the applicable IFRS Accounting Standard requirements. Subsequent to

initial recognition, any capitalised development costs are accounted for in the same manner as Property, plant and equipment. Costs

not qualifying for capitalisation are expensed as incurred, see note 9 Auditor’s remuneration and Research and development

expenditures for more details.

Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and gas quantities are

always uncertain. Estimating reserves is complex and based on a high degree of professional judgement involving geological and

engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and

installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and

economic data and the efficiency of extracting and processing the hydrocarbons.

Estimation uncertainty; Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets, as changes in the proved reserves, will

impact the unit of production rates used for depreciation and amortisation. 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. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves only reflect the period before

Equinor Annual Report on Form 20-F 2023 112

the contracts providing the right to operate expire. For future development projects, proved reserves estimates are included only

where there is a significant commitment to project funding and execution and when relevant governmental and regulatory approvals

have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed reserves are to be

recovered through existing wells with existing equipment and operating methods, or where the cost of the required equipment is

relatively minor compared to the cost of a new well. Proved undeveloped reserves are to be recovered from new wells on undrilled

acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled well locations can be classified as

having proved undeveloped reserves if a development plan is in place indicating that they are scheduled to be drilled within five years

unless specific circumstances justify a longer time horizon. Specific circumstances are for instance fields which have large up-front

investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled to continue for much

longer than five years. For unconventional reservoirs where continued drilling of new wells is a major part of the investments, such as

the US onshore assets, the proved reserves are always limited to proved well locations scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry standards and are governed by

the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission (SEC) regulations S-K and S-X,

and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have

been based on a 12-month average product price and on existing economic conditions and operating methods as required, and

recovery of the estimated quantities have a high degree of certainty (at least a 90% probability). An independent third party has

evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates.

Estimation uncertainty; Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of asset retirement obligations, as a consequence

of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets, possibly affecting impairment

testing and the recognition of deferred tax assets. Expected oil and gas reserves are the estimated remaining, commercially

recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in operation or decided for

development. As per Equinor’s internal guidelines, expected reserves are defined as the ‘forward looking mean reserves’ when based

on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which case the expected reserves

are the deterministic base case or best estimate. Expected reserves are therefore typically larger than proved reserves as defined by

the SEC, which are high confidence estimates with at least a 90% probability of recovery when a probabilistic approach is used.

Expected oil and gas reserves have been estimated by internal qualified professionals based on industry standards and classified in

accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate.

-----------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023 113

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

4)

Total

Cost at 1 January 2023

1,343

171,948

8,285

562

10,815

6,633

199,586

Additions through business acquisition

7)

48

1,121

339

38

370

8

1,923

Additions and transfers

6)

113

7,286

60

19

3,196

1,087

11,761

Changes in asset retirement obligations

0

772

0

0

55

0

827

Disposals at cost

(64)

(3,567)

(446)

(29)

(30)

(634)

(4,771)

Assets reclassified to held for sale

8)

(1)

(3,944)

0

0

(245)

(8)

(4,198)

Foreign currency translation effects

0

(2,705)

(133)

1

(64)

(36)

(2,937)

Cost at 31 December 2023

1,438

170,911

8,105

591

14,097

7,050

202,191

Accumulated depreciation and impairment at

1 January 2023

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Depreciation

(44)

(7,976)

(224)

(26)

0

(1,079)

(9,350)

Impairment

(2)

(844)

(323)

0

(18)

(1)

(1,188)

Reversal of impairment

0

288

0

0

3

0

290

Transfers

6)

1

(11)

0

(1)

10

0

(2)

Accumulated depreciation and impairment

on disposed assets

52

3,355

442

28

22

634

4,533

Accumulated depreciation and impairment

assets classified as held for sale

8)

1

3,176

0

0

0

6

3,183

Foreign currency translation effects

7

2,142

88

0

3

10

2,251

Accumulated depreciation and impairment at

31 December 2023

5)

(1,188)

(131,325)

(6,780)

(337)

(117)

(3,623)

(143,369)

Carrying amount at 31 December 2023

250

39,585

1,325

254

13,980

3,427

58,822

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 30

 10 - 33

2)

 1 - 20

3)

Equinor Annual Report on Form 20-F 2023 114

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2022

1,335

183,358

8,481

596

12,614

5,850

212,234

Additions and transfers

6)

52

9,390

378

6

(813)

1,319

10,332

Changes in asset retirement obligations

0

(4,756)

0

0

(48)

0

(4,805)

Disposals at cost

(9)

(3,487)

2

(20)

(5)

(347)

(3,865)

Foreign currency translation effects

(36)

(12,557)

(576)

(19)

(934)

(188)

(14,310)

Cost at 31 December 2022

1,343

171,948

8,285

562

10,815

6,633

199,586

Accumulated depreciation and impairment

at 1 January 2022

(1,188)

(137,763)

(7,926)

(320)

(344)

(2,619)

(150,159)

Depreciation

(52)

(7,643)

(160)

(33)

0

(969)

(8,856)

Impairment

(8)

(187)

(39)

0

(49)

(4)

(286)

Reversal of impairment

4

2,585

802

0

207

0

3,599

Transfers

6)

(2)

(20)

2

0

20

(8)

(8)

Accumulated depreciation and impairment

on disposed assets

8

2,002

(4)

5

0

347

2,359

Foreign currency translation effects

34

9,571

562

9

30

59

10,264

Accumulated depreciation and impairment

at 31 December 2022

5)

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Carrying amount at 31 December 2022

140

40,493

1,522

224

10,679

3,439

56,498

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 20

 10 - 33

2)

 1 - 20

3)

1)

Depreciation according to unit of production method.

2)

 Land is not depreciated

.

Buildings include leasehold improvements.

3)

 Depreciation linearly over contract period.

4)

 Right of use assets at 31 December 2023 mainly consist of Land and buildings USD

1,038

 million, Vessels USD

1,578

 million

and Drilling rigs USD

504

 million.

5)

 See note 14 Impairments.

6)

 The carrying amount of assets transferred to Property plant and equipment from Intangible assets

in 2023 and 2022 amounted to

USD

1,280

 million and USD

982

 million, respectively.

7)

 For additions through business acquisition, see note 6 Acquisitions and disposals.

8)

 For assets reclassified to held for sale, see note 6 Acquisitions and disposals.

Equinor Annual Report on Form 20-F 2023 115

13 Intangible assets

Accounting policies

Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible assets include acquisition cost for oil

and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas resources, goodwill, and other intangible

assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil and natural gas resources are not

amortised. When the decision to develop a particular area is made, related intangible exploration and evaluation assets are

reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or group of units, expected to benefit

from the combination’s synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment. In

acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred tax is reflected in the accounts

based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to

such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group of CGUs on whose tax depreciation basis

the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line method.

Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to acquire mineral interests

in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells and evaluation expenditures

are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas prospects. Geological and

geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangible assets during the

evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the

evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons, the previously capitalised costs are

evaluated for derecognition or tested for impairment. Any derecognition or impairment is classified as Exploration expenses in the

Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred to Property,

plant and equipment at the time of sanctioning of the development project. The timing from evaluation of a discovery until a project is

sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery,

whether a host government agreement is in place, the complexity of the project and the financial robustness of the project. For

onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for

production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund a portion of the selling

partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected in the Consolidated

financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain or loss

recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying amount of the asset. If the

consideration exceeds the carrying amount of the asset, the excess amount is reflected in the Consolidated statement of income

under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with only immaterial cash considerations

are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether a major capital

expenditure can be justified, will remain capitalised during the evaluation phase for the findings on the exploration wells. Thereafter it

will be considered a trigger for impairment evaluation of the well if no development decision is planned for the near future, and there

moreover are no concrete plans for future drilling in the licence. Judgements as to whether these expenditures should remain

capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the

operating income for the period.

------------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023 116

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2023

1,599

2,035

1,380

528

5,542

Additions through business acquisition

0

5

348

446

799

Additions

410

360

9

210

989

Disposals at cost

0

0

(10)

(124)

(135)

Transfers

(961)

(319)

4

(4)

(1,280)

Expensed exploration expenditures previously capitalised

114

(61)

0

0

53

Foreign currency translation effects

7

16

2

16

41

Cost at 31 December 2023

1,169

2,036

1,733

1,072

6,010

Accumulated amortisation and impairment at 31 December 2023

1)

(302)

(302)

Carrying amount at 31 December 2023

1,169

2,036

1,733

2)

770

5,709

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2022

1,958

2,670

1,467

722

6,816

Additions

227

4

36

57

324

Disposals at cost

(10)

(50)

0

1

(58)

Transfers

(227)

(516)

0

(239)

(982)

Expensed exploration expenditures previously capitalised

(283)

(59)

0

0

(342)

Impairment of goodwill

0

0

(3)

0

(3)

Foreign currency translation effects

(65)

(14)

(121)

(13)

(213)

Cost at 31 December 2022

1,599

2,035

1,380

528

5,542

Accumulated amortisation and impairment at 31 December 2022

1)

(384)

(384)

Carrying amount at 31 December 2022

1,599

2,035

1,380

144

5,158

1) See note 14 Impairments.

2) Goodwill at 31 December 2023 mainly consists of technical goodwill related to business acquisitions in 2019, of which USD

533

million in the Exploration & Production Norway area and USD

440

 million in the Marketing Midstream & Processing area.

The table below shows the aging of capitalised exploration expenditures.

(in USD million)

2023

2022

Less than one year

345

250

Between one and five years

458

340

More than five years

366

1,009

Total capitalised exploration expenditures

1,169

1,599

Equinor Annual Report on Form 20-F 2023 117

The table below shows the components of the exploration expenses.

Full year

(in USD million)

2023

2022

2021

Exploration expenditures

1,275

1,087

1,027

Expensed exploration expenditures previously capitalised

(53)

342

171

Capitalised exploration

(427)

(224)

(194)

Exploration expenses

795

1,205

1,004

14 Impairments

Accounting policies

Impairment of property, plant and equipment, right-of-use assets, intangible assets including goodwill and equity accounted

investments

Equinor assesses individual assets or groups of assets for impairment whenever events or changes in circumstances indicate that the

carrying value may not be recoverable. Assets are grouped into cash generating units (CGUs). Normally, separate CGUs are

individual oil and gas fields or plants, or equity accounted investments. Each unconventional asset play is considered a single CGU

when no cash inflows from parts of the play can be reliably identified as being largely independent of the cash inflows from other parts

of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the

recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the

asset or CGU to which the unproved properties belong may exceed its recoverable amount, and at least once a year. Exploratory

wells that have found reserves, but where classification of those reserves as proved depends on whether major capital expenditure

can be justified or where the economic viability of that major capital expenditure depends on the successful completion of further

exploration work, will remain capitalised during the evaluation phase for the exploratory finds. If, following evaluation, an exploratory

well has not found proved reserves, the previously capitalised costs are tested for impairment. After the initial evaluation phase for a

well, it will be considered a trigger for impairment testing of a well if no development decision is planned for the near future and there

is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value

may be impaired. Impairment is determined by assessing the recoverable amount of the CGU, or group of units, to which the goodwill

relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred tax provision in a post-

tax transaction on the NCS, the remaining amount of the deferred tax provision will factor into the impairment valuation. 

Impairment and reversals of impairment are presented in the Consolidated statement of income as Exploration expenses or

Depreciation, amortisation and net impairment, on the basis of the nature of the impaired assets as either exploration assets

(intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets),

respectively.

Measurement

The recoverable amount applied in Equinor’s impairment assessments is normally estimated value in use. Equinor may also apply the

assets’ fair value less cost of disposal as the recoverable amount when such a value is available, reasonably reliable, and based on a

recent and comparable transactions.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and

supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the

remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions and economic conditions

in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs

with an expected useful life or timeline for production of expected oil and natural gas reserves extending beyond five years, including

planned onshore production from shale assets with a long development and production horizon, the forecasts reflect expected

production volumes, and the related cash flows include project or asset specific estimates reflecting the relevant period. Such

estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted using a real post-tax discount rate

which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a

monetary adjustment to the projects’ cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is

Equinor Annual Report on Form 20-F 2023 118

adjusted for risk that influences the expected cash flow of a project and which is not part of the project itself. The use of post-tax

discount rates in determining value in use does not result in a materially different determination of the need for, or the amount of,

impairment that would be required if pre-tax discount rates had been used.

Impairment reversals

A previously recognised impairment is reversed only if there has been a change in the estimates used to determine the asset’s

recoverable amount since the last impairment was recognised. Previously recognised impairments of goodwill are not reversed in

future periods.

Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a high degree of judgement and may to a

large extent depend upon the selection of key assumptions about the future. In Equinor's line of business, judgement is involved in

determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product pricing, management

actions and other factors may over time lead to changes in CGUs such as splitting one original CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic factors such as future

commodity prices and discount rates, and uncertainty in asset specific factors such as reserve estimates and operational decisions

impacting the production profile or activity levels. Changes in foreign currency exchange rates will also affect value in use, especially

for assets on the NCS, where the functional currency is NOK. When estimating the recoverable amount, the expected cash flow

approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used in the estimated future cash flows.

For example, climate-related matters (see also Note 3

Climate change and energy transition

) are expected to have a pervasive effect on

the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-

related levies, and other matters with mainly mid-term and long-term effects. These effects have been factored into the price

assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor’s, market participants’ and other external sources’ assumptions about the future

and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires

long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, foreign

currency exchange rates and future output, discount rates, impact of the timing of tax incentive regulations, and political and country

risk among others. Long-term assumptions for major economic factors are made at a group level, and there is a high degree of

reasoned judgement involved in establishing these assumptions, in determining other relevant factors such as forward price curves, in

estimating production outputs, and in determining the ultimate terminal value of an asset.

------------------------------------------------------------------------------------------------------------------------------

Net impairments/(reversal of impairments)

Full year

(in USD million)

2023

2022

2021

Property, plant and equipment

897

(3,313)

1,285

Intangible assets

61

62

154

Equity accounted investments

363

832

0

Total net impairments/(reversals) including exploration expenses

1,321

(2,419)

1,439

1)

The intangible assets line includes Goodwill, amortizable intangible assets, and certain acquisition costs related to oil and

gas prospects.

Equinor Annual Report on Form 20-F 2023 119

For impairment purposes, the asset’s carrying amount is compared to its recoverable amount. The table below describes, per area,

the Producing and development assets being impaired/(reversed), net impairment/(reversal), and the carrying amount after

impairment.

At 31 December 2023

At 31 December 2022

At 31 December 2021

(in USD million)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Exploration & Production Norway

887

588

3,201

(819)

5,379

(1,102)

Exploration & Production USA - onshore

0

0

546

(204)

1,979

48

Exploration & Production USA - offshore Gulf of Mexico

1,165

(290)

2,691

(882)

798

18

Europe and Asia

0

310

1,551

295

1,566

1,609

Marketing, Midstream & Processing

949

343

1,416

(895)

868

716

Renewables USA - offshore

134

300

0

0

0

0

Other

112

10

30

0

20

(7)

Total

3,247

1,261

9,435

(2,505)

10,611

1,282

Exploration & Production Norway

In 2023, the net impairment mainly relates to reduced expected reserves on a producing asset on the Norwegian Continental Shelf.

2022, the net impairment reversal was mainly caused by increased price estimates and changed gas export strategy. In 2021, the net

impairment reversal was mainly due to increased price estimates and an upward reserve revision.

Exploration & Production USA - onshore

In 2023, there were no impairments related to exploration and production assets USA – onshore. In 2022, the impairment reversal

was caused by increased gas price assumptions, while in 2021 the net impairment was caused by revision of reserves and sale of an

asset.

Exploration & Production USA - offshore Gulf of Mexico

In 2023, impairment reversals mainly relate to increased expected reserves on a producing asset. In 2022, the impairment reversal

was caused by increased price assumptions and higher reserves estimates, while in 2021, the impairment was due to a negative

reserve revision.

Exploration & Production International – Europe and Asia

In 2023, the impairment relates to the held for sale reclassification of Azerbaijan assets at the end of the year (see note 6 Acquisitions

and disposals). In 2022, the net impairment was mainly caused by the decision to exit Russia. This was to a large extent offset by a

reversal on Mariner in the UK mainly due to optimisation of the production profile and higher prices, supported by a slight increase in

reserves estimates. In 2021, the net impairment was mainly caused by downward reserve revisions partially offset by higher prices.

Marketing, Midstream & Processing

In 2023, net impairment mainly relates to expectations of stabilizing refinery margins at a lower level than the margins consumed in

recent periods. In 2022 the net impairment reversal was mainly related to increased refinery margin assumptions, while in 2021, the

impairment losses were caused by increased CO

2

 fees and – quotas on a refinery and a classification to held for sale.

Renewables USA – Offshore

In 2023, Equinor’s offshore wind projects on the US North East Coast are facing increased costs due to inflation and supply chain

constraints. On 12 October 2023, the New York State Public Service Commission (PSC) rejected price increase petitions related to

offtake agreements from several offshore and onshore wind farm developers, including Equinor’s joint ventures. As a consequence,

an impairment of USD

300

 million has been recognised. The recoverable amount of Equinor’s investments in the offshore wind

projects on the US North East Coast has been established applying a fair value approach. These investments are accounted for using

the equity method.

Accounting assumptions

There are inherent uncertainties in the assumptions, however the commodity price assumptions as well as currency assumptions

reflect management’s best estimate of the price and currency development over the life of the Group’s assets based on its view of

relevant current circumstances and the likely future development of such circumstances, including energy demand development,

energy and climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks,

Equinor Annual Report on Form 20-F 2023 120

technology and cost development and other factors. Management’s best estimate also takes into consideration a range of external

forecasts.

Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and

exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon

economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions

with effect from the second quarter of 2023. The main price assumptions applied in impairment and impairment reversal assessments

are disclosed in the table below as price-points on price curves. Previous price-points applied from the third quarter of 2022 and up to

and including the first quarter of 2023 are provided in brackets.

Year

Prices in real term 1)

2025

2030

2040

2050

Brent Blend (USD/bbl)

79

(78)

78

(78)

73

(73)

68

(68)

European gas (USD/MMBtu) - TTF 

15.5

20.9

9.1

(9.9)

9.5

(9.4)

9.5

(9.4)

Henry Hub (USD/MMBtu)

3.6

(4.2)

4.3

(3.9)

4.3

(3.9)

4.3

(3.9)

Electricity Germany (EUR/MWh)

106

(122)

78

(74)

71

(60)

71

(60)

EU ETS (EUR/tonne)

90

(84)

105

(84)

128

(111)

150

(137)

1) Basis year 2023. The prices in the table are price-points on price-curves.

Climate considerations are included in the impairment calculations directly by estimating the CO

2

 taxes in the cash flows. Indirectly,

the expected effect of climate change is also included in the estimated commodity prices where supply and demand are considered.

The prices also have effect on the estimated production profiles and economic cut-off of the projects. Furthermore, climate

considerations are a part of the investment decisions following Equinor’s strategy and commitments to the energy transition.

Norway’s Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

2

 tax (the

total of EU ETS + Norwegian CO

2

 tax) in Norway to

2,000

 NOK/tonne in 2030 is used for impairment calculations of Norwegian

upstream assets.

To reflect that carbon will have a cost for all our assets the current best estimate is considered to be EU ETS for countries outside EU

where carbon is not already subject to taxation or where Equinor has not established specific estimates.

The long-term NOK currency exchange rates are expected to be unchanged compared to previous long-term assumptions. The

NOK/USD rate from 2026 and onwards is kept at

8.50

, the NOK/EUR at

10.00

. The USD/GBP rate is kept at

1.35

.

The base discount rate applied in value in use calculations is

5.0

% real after tax. The discount rate is derived from Equinor’s weighted

average cost of capital. For projects, mainly within the REN segment in periods with fixed low risk income, a lower discount rate will be

considered. A derived pre-tax discount rate is in the range of

24

% for E&P Norway,

6

% for E&P USA and

7

% for MMP depending on

the asset’s characteristics, such as specific tax treatments, cash flow profiles, and economic life. The pre-tax rates for 2022 were

42

-

102

%,

6

-

9

% and

7

% respectively, in addition to

8

-

9

% for E&P International.

Sensitivities

Significant downward adjustments in Equinor's commodity price assumptions would result in impairment losses on certain producing

and development assets, including intangible assets subject to impairment assessment, while an opposite adjustment could lead to

impairment-reversals. Assuming a reasonably possible

30

% decline in commodity price forecasts over the assets' lifetime could result

in an illustrative impairment recognition of approximately USD

11

 billion before tax effects. See note 3 Climate change and energy

transition for possible effect of using the prices in a 1.5ºC compatible Net Zero Emission by 2050 scenario and the Announced

Pledges.

Similarly, for illustrative purposes, Equinor assessed the sensitivity of the discount rate used in the value in use calculations for

upstream producing assets and certain related intangible assets. It was determined an increase in the discount rate from

5.0

% to

6

%

real after tax, in isolation, the impairment amount recognised could have a potential impact of USD

2

 billion before tax effects.

The illustrative impairment sensitivities above are based on a simplified method, which assumes no changes to other input factors.

However, Equinor notes a price reduction of

30

% or those representing Net Zero Emission scenario and Announced Pledges

Scenario would likely impact business plans and other factors used in estimating an asset’s recoverable amount. The correlated

changes reduce the stand-alone impact of the price sensitivities. Changes in such input factors would likely include a reduction in the

cost level in the oil and gas industry and offsetting foreign currency effects, which has historically occurred following significant

changes in commodity prices.

Equinor Annual Report on Form 20-F 2023 121

15 Joint arrangements and associates

Accounting policies

Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an activity subject to joint control, i.e.

when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are

classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor considers the nature of

products and markets of the arrangements and whether the substance of the agreements is that the parties involved have rights to

substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have rights to the net

assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues and expenses in joint operations in

accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope of IFRS 11 Joint Arrangements have been

classified as joint operations. A considerable number of Equinor's unincorporated joint exploration and production activities are

conducted through arrangements that are not jointly controlled, either because unanimous consent is not required among all parties

involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through

agreement between more than one combination of involved parties are considered to be outside the scope of IFRS 11, and these

activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all

such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for

financial information related to Equinor’s participation in joint operations within upstream activities.

Joint ventures, in which Equinor has rights to the net assets currently include the majority of Equinor’s investments in the Renewables

(REN) operating and reporting segment. Equinor’s participation in joint arrangements that are joint ventures and investments in

companies in which Equinor has neither control nor joint control but has the ability to exercise significant influence over operating and

financial policies, are classified and accounted for as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost plus post-acquisition changes in

Equinor’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. Equinor also

reflects its share of the investment’s other comprehensive income (OCI) arisen after the acquisition. The part of an equity accounted

investment’s dividend distribution exceeding the entity’s carrying amount in the Consolidated balance sheet is reflected as income

from equity accounted investments in the Consolidated statement of income. Equinor will subsequently only reflect the share of net

profit in the investment that exceeds the dividend already reflected as income.

The Consolidated statement of income reflects Equinor’s share of the results after tax of an equity accounted entity, adjusted to

account for depreciation, amortisation and any impairment of the equity accounted entity’s assets based on their fair values at the

date of acquisition. In case of material differences in accounting policies, adjustments are made in order to bring the accounts of the

equity accounted investment in line with Equinor’s accounting policies. Net income/loss from equity accounted investments is

presented on a separate line as part of Total revenues and other income, as investments in and participation with significant influence

in other companies engaged in energy-related business activities is considered to be part of Equinor’s main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the activity constitutes a business,

are accounted for in accordance with the requirements applicable to business combinations. Please refer to note 6 Acquisitions and

disposals for more details on acquisitions.

Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These costs are allocated on an hours’

incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside

the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are

reimbursed and only Equinor's share of the statement of income and balance sheet items related to Equinor-operated joint operations

and similar arrangements are reflected in the Consolidated statement of income and the Consolidated balance sheet.

-----------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023 122

Joint ventures and other equity accounted investments

(in USD million)

2023

2022

Net investments at 1 January

2,758

2,686

Net income/(loss) from equity accounted investments

(1)

620

Impairment

1)

(363)

(832)

Acquisitions and increase in capital

926

337

Dividend and other distributions

(286)

(210)

Other comprehensive income/(loss)

(10)

384

Divestments, derecognition and decrease in paid in capital

2)

(517)

(22)

Other

0

(205)

Net investments at 31 December

2,507

2,758

1)

Mainly related to Renewable offshore wind industry in US, see also note 14 Impairments.

2)

 Mainly related to change in accounting treatment for Bandurria Sur (accounted for by proportionally consolidation from 1

st

 of April

2023).

Equity accounted investments consist of several investments, none above USD

0.5

 billion. None of the investments are significant on

an individual basis. Voting rights correspond to ownership share.

16 Financial investments and financial receivables

Non-current financial investments

At 31 December

(in USD million)

2023

2022

Bonds

1,863

1,448

Listed equity securities

1,035

794

Non-listed equity securities

543

491

Financial investments

3,441

2,733

Bonds and equity securities mainly relate to investment portfolios held by Equinor’s captive insurance company and other listed and

non-listed equities held for long-term strategic purposes, mainly accounted for using fair value through profit or loss.

Equinor Annual Report on Form 20-F 2023 123

Non-current prepayments and financial receivables

At 31 December

(in USD million)

2023

2022

Interest-bearing financial receivables 

341

1,658

Other interest-bearing receivables

40

66

Prepayments and other non-interest-bearing receivables

910

339

Prepayments and financial receivables

1,291

2,063

Prepayments and other non-interest-bearing receivables mainly relate to commodity sales contracts with customers and lease

prepayments. Interest-bearing financial receivables primarily relate to loans to employees and project financing of equity accounted

companies. Other interest-bearing receivables primarily relate to financial sublease and tax receivables.

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,846

12,373

Interest-bearing securities

11,378

17,504

Financial investments

29,224

29,876

At 31 December 2023, current financial investments

include USD

458

 million in investment portfolios held by Equinor’s captive

insurance company which mainly are accounted for using fair value through profit or loss. The corresponding balance at 31 December

2022 was USD

410

 million.

For information about financial instruments by category, see note 28

Financial instruments and fair value measurement

.

Equinor Annual Report on Form 20-F 2023 124

17 Inventories

Accounting policies

Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable value. Cost is determined by the

first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing expenses.

Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with subsequent changes in fair

value recognised in the Consolidated statement of income as part of Revenues. These inventories are categorised within level 2 of the

fair value hierarchy.

------------------------------------------------------------------------------------------------------------------------------

At 31 December

(in USD million)

2023

2022

Crude oil

2,051

2,115

Petroleum products

380

451

Natural gas

54

127

Commodity inventories at the lower of cost and net realisable value

2,485

2,693

Natural gas held for trading purposes measured at fair value

810

1,994

Other

520

517

Total inventories

3,814

5,205

Inventories held for trading purposes consist of natural gas storages held by Danske Commodities.

Equinor Annual Report on Form 20-F 2023 125

18 Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables from contracts with customers

1)

10,706

15,213

Other current receivables

1,774

992

Collateral receivables

2)

2,186

3,468

Receivables from participation in joint operations and similar arrangements

471

661

Receivables from equity accounted associated companies and other related parties

1,056

1,276

Total financial trade and other receivables

16,193

21,611

Non-financial trade and other receivables

740

841

Trade and other receivables

16,933

22,452

1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses.

2) Mainly related to cash paid as security for a portion of Equinor's credit exposure.

For more information about the credit quality of Equinor's counterparties, see note 4 Financial risk and capital management. For

currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on receivables from

equity accounted associated companies and other related parties, see note 27 Related parties.

19 Cash and cash equivalents

Accounting policies

Cash and cash equivalents are accounted for at amortised cost and include cash in hand, bank deposits, and short-term highly liquid

investments with original maturity of three months or less which are readily convertible to known amounts of cash and subject to

insignificant risk of changes in fair value. Contractually mandatory deposits in escrow bank accounts are included as restricted cash

and cash equivalents if the deposits are provided as part of the Group’s operating activities and therefore are deemed as held for the

purpose of meeting short

‑

term cash commitments, and the deposits can be released from the escrow account without undue

expenses.

At 31 December

(in USD million)

2023

2022

Cash at bank available

2,295

2,220

Time deposits

1,337

836

Money market funds

1,875

3,106

Interest-bearing securities

2,563

3,276

Restricted cash and cash equivalents, including collateral deposits

1,572

6,140

Cash and cash equivalents

9,641

15,579

Restricted cash and cash equivalents at 31 December 2023 includes collateral deposits of USD

1,572

 million related to trading

activities. Correspondingly, collateral deposits at 31 December 2022 were USD

6,128

 million. Collateral deposits are related to certain

requirements of exchanges where Equinor is trading. The terms and conditions related to these requirements are determined by the

respective exchanges.

Equinor Annual Report on Form 20-F 2023 126

20 Shareholders' equity, capital distribution and earnings per share

Number of

shares

NOK per value

NOK

USD

Share capital at 1 January 2023

3,175,470,159

2.50

7,938,675,397.50

1,142,036,265

Capital reduction

(172,365,554)

2.50

(430,913,885.00)

(41,519,325)

Share capital at 31 December 2023

3,003,104,605

2.50

7,507,761,512.50

1,100,516,940

Number of

shares

NOK per value

Common Stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares

Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Employees share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

Equinor ASA has only one class of shares and all shares have voting rights. The holders of shares are entitled to receive dividends as

and when declared and are entitled to one vote per share at the annual general meeting of the company.

Dividend

During 2023, dividend for the third and for the fourth quarter of 2022 and dividend for the first and second quarter of 2023 were

settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated balance sheet. The Consolidated

statement of changes in equity shows declared dividend in the period (retained earnings). Dividend declared in 2023 relates to the

fourth quarter of 2022 and to the first three quarters of 2023.

On 6 February 2024, the board of directors proposed to the annual general meeting on 14 May 2024 an ordinary cash dividend for the

fourth quarter of 2023 of USD

0.35

 per share and an extraordinary cash dividend of USD

0.35

 per share. The Equinor share will trade

ex-dividend 15 May 2024 on Oslo Børs and for ADR holders on New York Stock Exchange. Record date will be 16 May 2024 and

payment date will be 28 May 2024.

At 31 December

(in USD million)

2023

2022

Dividends declared

10,783

7,549

USD per share or ADS

3.6000

2.4000

Dividends paid

10,906

5,380

USD per share or ADS

3.6000

1.6800

NOK per share

37.8522

16.4837

-------------------------------------------------------------------------------------------------------------------------------------

Accounting policies

Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme or has placed an irrevocable order with a third

party for Equinor shares to be acquired in the market, such shares are reflected as a reduction in equity as treasury shares. Treasury

shares are not included in the weighted average number of ordinary shares outstanding in the calculation of Earnings per share. The

remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and

provisions.

-------------------------------------------------------------------------------------------------------------------------------------

Share buy-back programme

Equinor Annual Report on Form 20-F 2023 127

The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part

of the programme will be cancelled. According to an agreement between Equinor and the Norwegian State, the Norwegian State will

participate in share buy-backs on a proportionate basis, ensuring that its ownership interest in Equinor remains unchanged at

67

%.

On 6 February 2024, the board of directors decided to announce a two-year share buy-back programme for 2024-2025 of USD 10-12

billion in total, with USD 6 billion for 2024. The share buy-back programme will be subject to market outlook and balance sheet

strength.

The first tranche of up to USD 1.2 billion of the 2024 share buy-back programme will commence on 8 February and end no later than

5 April 2024. The first tranche of the 2024 share buy-back programme is based on the authorisation from the annual general meeting

in May 2023, valid until the next annual general meeting, but no later than 30 June 2024. Commencement of new share buy-back

tranches after the first tranche in 2024 will be decided by the board of directors on a quarterly basis in line with the company’s

dividend policy and will be subject to existing and new board authorisations for share buy-back from the company’s annual general

meeting and agreement with the Norwegian State regarding share buy-back.

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Equity impact of share buy-back programmes

(in USD million)

2023

2022

First tranche

330

330

Second tranche

550

440

Third tranche

550

605

Fourth tranche

550

605

Total open market share

1,980

1,980

Norwegian state share

1)

3,705

1,399

Total

5,685

3,380

1) Relates to second to fourth tranche of previous year programme and first tranche of current year programme.

Based on the authorisation from the annual general meeting on 10 May 2023, the Board of directors has, on a quarterly basis,

decided on share buy-back tranches. The 2023 programme was up to USD

6

 billion, including shares to be redeemed from the

Norwegian State.

During 2023, four tranches of in total USD

6

 billion were launched, including shares to be redeemed from the Norwegian State. The

acquisition of the fourth tranche in the open market was finalised in January 2024. As of 31 December 2023, USD

410

 million of the

fourth tranche had been purchased in the open market, of which USD

388

 million had been settled. Due to an irrevocable agreement

with a third party, the remaining order of USD

162

 million is accrued for and classified as Trade, other payables and provisions.

In order to maintain the Norwegian State’s ownership share in Equinor, a proportionate share of the second, third and fourth tranche

of the 2022 programme as well as the first tranche of the 2023 programme was redeemed and annulled after approval by the annual

general meeting on 10 May 2023. The liability to the Norwegian State of USD

3.705

 billion (NOK

39.071

 billion) was settled in June

2023.

Equinor Annual Report on Form 20-F 2023 128

Employees share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

In 2023 and 2022 treasury shares were purchased to employees participating in the share saving plan for USD

68

 million and USD

72

million, respectively. For further information, see note 8 Salaries and personnel expenses.

Earnings per share

(in USD million)

2023

2022

Basic earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding

3,021

3,174

Basic earnings per share (in USD)

3.93

9.06

Diluted earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding, diluted

3,027

3,183

Diluted earnings per share (in USD)

3.93

9.03

Basic and diluted earnings per share amounts are calculated by dividing the Net income (loss) for the year attributable to shareholders

by relevant weighted average number of ordinary shares outstanding during the year. Shares purchased to employees participating in

the share saving plan is the only diluting element.

21 Finance debt

Non-current finance debt

Finance debt measured at amortised cost

Weighted average interest

rates in %

1)

Carrying amount in USD

millions at 31 December

Fair value in USD 

millions at 31 December

2)

2023

2022

2023

2022

2023

2022

Unsecured bonds

United States Dollar (USD)

3.82

3.82

15,705

17,190

15,037

16,167

Euro (EUR)

1.51

1.42

6,633

7,465

6,177

6,782

Great Britain Pound (GBP)

6.08

6.08

1,747

1,652

2,013

1,836

Norwegian Kroner (NOK)

4.18

4.18

295

304

302

311

Total unsecured bonds

24,380

26,612

23,529

25,097

Unsecured loans

Brazilian real (BRL)

10.10

-

179

-

179

-

Japanese Yen (JPY)

4.30

4.30

71

76

83

90

Equinor Annual Report on Form 20-F 2023 129

Total unsecured loans

250

76

262

90

Total

24,630

26,688

23,791

25,187

Non-current finance debt due within one year

2,400

2,547

2,415

2,597

Non-current finance debt

22,230

24,141

21,376

22,590

1)

Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December and do

not include the effect of swap agreements.

2)

 Fair values are determined from external calculation models based on market observations from various sources, classified at

level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair

value measurement.

Unsecured bonds amounting to USD

15,705

 million are denominated in USD and unsecured bonds denominated in other currencies

amounting to USD

7,848

 million are swapped into USD. One bond denominated in EUR amounting to USD

827

 million is not

swapped. The table does not include the effects of agreements entered into to swap the various currencies into USD. For further

information see note 28 Financial instruments and fair value measurement.

Substantially all unsecured bonds and unsecured bank loan agreements contain provisions restricting future pledging of assets to

secure borrowings without granting a similar secured status to the existing bondholders and lenders.

No

 new bonds were issued in 2023.

Out of Equinor's total outstanding unsecured bond portfolio,

34

 bond agreements contain provisions allowing Equinor to call the debt

prior to its final redemption at par or at certain specified premiums if there are changes to the Norwegian tax laws. The carrying

amount of these agreements is USD

24,076

 million at the 31 December 2023 closing currency exchange rate.

For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk management,

see note 4 Financial risk and capital management.

Non-current finance debt maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

4,683

4,794

Year 4 and 5

4,511

4,510

After 5 years

13,035

14,837

Total repayment of non-current finance debt

22,230

24,141

Weighted average maturity (years - including current portion)

9

9

Weighted average annual interest rate (% - including current portion)

3.41

3.29

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities

458

1,571

Non-current finance debt due within one year

2,400

2,547

Other including US Commercial paper programme and bank overdraft

3,138

241

Total current finance debt

5,996

4,359

Weighted average interest rate (%)

3.77

2.22

Equinor Annual Report on Form 20-F 2023 130

Collateral liabilities and other current liabilities mainly relate to cash received as security for a portion of Equinor's credit exposure and

outstanding amounts on US Commercial paper (CP) programme. Issuance on the CP programme amounted to USD

1,895

 million as

of 

31 December 2023 and USD

227

 million as of 31 December 2022.

Reconciliation of cash flows from financing activities to finance line items in balance sheet 

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2023

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Repayment of finance debt

(2,818)

(2,818)

Repayment of lease liabilities

(1,422)

(1,422)

Dividend paid

(10,906)

(10,906)

Share buy-back

(5,589)

(5,589)

Net current finance debt and other

finance activities

1,385

1,287

(69)

(10)

2,593

Net cash flow from financing activities

(2,818)

1,385

1,287

(5,658)

(10)

(10,906)

(1,422)

(18,142)

Transfer to current portion

147

(147)

Effect of exchange rate changes

321

44

(5)

-

(25)

Dividend declared

10,783

Debt in RIO Energy

437

New leases

1,379

Other changes

2

354

(1)

2,617

19

(36)

(29)

Net other changes

907

251

(6)

2,617

19

10,747

1,325

At 31 December 2023

22,230

5,995

(2,185)

-

10

2,649

3,570

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2022

27,404

5,273

(1,577)

6,408

14

582

3,562

Repayment of finance debt

(250)

(250)

Repayment of lease liabilities

(1,366)

(1,366)

Dividend paid

(5,380)

(5,380)

Share buy-back

(3,315)

(3,315)

Net current finance debt and other

finance activities

-

(2,982)

(2,038)

(73)

(8)

(5,102)

Net cash flow from financing activities

(250)

(2,982)

(2,038)

(3,388)

(8)

(5,380)

(1,366)

(15,414)

Transfer to current portion

(2,297)

2,297

Effect of exchange rate changes

(710)

(78)

145

(3)

(149)

Dividend declared

7,549

New leases

1,644

Other changes

(7)

(151)

21

(2)

57

(24)

Equinor Annual Report on Form 20-F 2023 131

Net other changes

(3,014)

2,068

145

21

(5)

7,606

1,471

At 31 December 2022

24,140

4,359

(3,468)

3,041

1

2,808

3,667

1)

Financial receivable collaterals are included in Trade and other receivables in the Consolidated balance sheet. See note 18

Trade and other receivables for more information.

2)

 Other changes in additional paid in capital have been moved to retained earnings. 

3)

 See note 25 Leases for more information.

22 Pensions

Accounting policies

Equinor has pension plans for employees that either provide a defined pension benefit upon retirement or a pension dependent on

defined contributions and related returns. A portion of the contributions are provided for as notional contributions, for which the liability

increases with a promised notional return, set equal to the actual return of assets invested through the ordinary defined contribution

plan. For defined benefit plans, the benefit to be received by employees generally depends on many factors including length of

service, retirement date and future salary levels.

Equinor's proportionate share of multi-employer defined benefit plans is recognised as liabilities in the Consolidated balance sheet as

sufficient information is considered available, and a reliable estimate of the obligation can be made.

The cost of pension benefit plans is expensed over the period that the employees render services and become eligible to receive

benefits. The calculation is performed by an external actuary. Equinor's net obligation from defined benefit pension plans is calculated

separately for each plan by estimating the amount of future benefit that employees have earned in return for their services in the

current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The recognition of a net surplus for the funded plan is based on the assumption that the net assets represent a future value for

Equinor, either as a possible distribution to premium fund which can be used for future funding of new liabilities, or as disbursement of

equity in the pension fund.

Contributions to defined contribution schemes are recognised in the Consolidated statement of income as pension costs in the period

in which the contribution amounts are earned by the employees.

Notional contribution plans, reported in the parent company Equinor ASA, are recognised as Pension liabilities with the actual value of

the notional contributions and promised return at reporting date. Notional contributions are recognised in the Consolidated statement

of income as periodic pension cost, while changes in fair value of the employees’ notional assets are reflected in the Consolidated

statement of income under Net financial items.

Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor’s operated joint operations (licences)

on an hours’ incurred basis and recognised in the Consolidated statement of income based on the function of the cost.

------------------------------------------------------------------------------------------------------------------------------------

Pension plans in Equinor

The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans which includes certain

unfunded elements (notional contribution plans).

 In addition, several employees and former employees of the Equinor Group is a

member of certain defined benefit plans. The benefit plan in Equinor ASA was closed in 2015 for new employees and for employees

with more than 15 years to regular retirement age.

Equinor's defined benefit plans are generally based on a minimum of 30 years of

service and 66% of the final salary level, including an assumed benefit from the Norwegian National Insurance Scheme.

 The

Norwegian companies in the group are subject to, and complies with, the requirements of the Norwegian Mandatory Company

Pensions Act.

The defined benefit plans in Norway are managed and financed through Equinor Pensjon (Equinor's pension fund - hereafter Equinor

Pension). Equinor Pension is an independent pension fund that covers the employees in Equinor's Norwegian companies. The

pension fund's assets are kept separate from the company's and group companies' assets. Equinor Pension is supervised by the

Financial Supervisory Authority of Norway ("Finanstilsynet") and is licenced to operate as a pension fund.

Equinor has more than one defined benefit plan, but the disclosure is made in total since the plans are not subject to materially

different risks. Pension plans outside Norway are not material and as such not disclosed separately. In this note pension costs are

Equinor Annual Report on Form 20-F 2023 132

presented on a gross basis before allocation to licence partners. In the Consolidated statement of income, the pension costs in

Equinor ASA are presented net of costs allocated to licence partners.

Equinor is also a member of a Norwegian national agreement-based early retirement plan (“AFP”), and the premium is calculated

based on the employees' income but limited to 7.1 times the basic amount in the National Insurance scheme (7.1 G).

 The premium is

payable for all employees until age

62

. Pension from the AFP scheme will be paid from the AFP plan administrator to employees for

their full lifetime.

Net pension cost

Total pension costs amount to USD

441

 million in 2023, USD

458

 million in 2022 and USD

488

 million in 2021. In addition, interest

cost and interest income related to defined benefit plans are included in the Consolidated statement of income within Net financial

items.

Changes in pension liabilities and plan assets during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,664

9,358

Current service cost

145

183

Interest cost

318

105

Actuarial (gains)/losses and currency effects

338

(1,785)

Changes in notional contribution liability and other effects

56

67

Benefits paid

(284)

(258)

Losses/(gains) from curtailment, settlement or plan amendment

91

(5)

Pension liabilities at 31 December

8,328

7,664

Fair value of plan assets at 1 January

5,213

6,404

Interest income

190

116

Return on plan assets (excluding interest income)

202

(622)

Company contributions

211

104

Benefits paid

(141)

(121)

Losses (gains) from curtailment, settlement or plan amendment

113

(5)

Other effects

-

6

Foreign currency translation effects

(124)

(669)

Fair value of plan assets at 31 December

5,664

5,213

Net pension liability at 31 December

2,665

2,452

Represented by:

Asset recognised as non-current pension assets (funded plan)

1,260

1,219

Liability recognised as non-current pension liabilities (unfunded plans)

3,925

3,671

Pension liabilities specified by funded and unfunded pension plans

8,328

7,664

Funded

4,404

3,994

Unfunded

3,925

3,670

Equinor recognised an actuarial loss from changes in financial assumptions in 2023.

No

 changes in interest rate compared to year

end 2022, but other assumptions increased with

50

 basis points. An actuarial gain was recognised in 2022.

Equinor Annual Report on Form 20-F 2023 133

Actuarial assumptions

Assumptions used to determine

benefit obligations in %

Rounded to the nearest quartile

2023

2022

Discount rate

3.75

3.75

Rate of compensation increase

4.00

3.50

Expected rate of pension increase

3.25

2.75

Expected increase of social security base amount (G-amount)

3.75

3.25

Weighted-average duration of the defined benefit obligation

13.25

13.50

The assumptions presented are for the Norwegian companies in Equinor which are members of Equinor's pension fund. The defined

benefit plans of other subsidiaries are immaterial to the consolidated pension assets and liabilities.

Sensitivity analysis

The table below presents an estimate of the potential effects of changes in discount rate and expected rate of pension increase for the

defined benefit plans. The following estimates are based on facts and circumstances as of 31 December 2023.

Discount rate

Expected rate of

pension increase

(in USD million)

0.50%

-0.50%

0.50%

-0.50%

Effect on:

Defined benefit obligation at 31 December 2023

(521)

587

494

(451)

The sensitivity of the financial results to each of the key assumptions has been estimated based on the assumption that all other

factors would remain unchanged. The estimated effects on the financial result would differ from those that would actually appear in the

Consolidated financial statements because the Consolidated financial statements would also reflect the relationship between these

assumptions.

Equinor Annual Report on Form 20-F 2023 134

Pension assets

The plan assets related to the defined benefit plans were measured at fair value. Equinor Pension invests in both financial assets and

real estate.

The table below presents the portfolio weighting as approved by the board of Equinor Pension for 2023. The portfolio weight during a

year will depend on the risk capacity.

Target portfolio

weight

(in %)

2023

2022

Equity securities

33.6

32.9

30

-

38

Interest bearing investments

61.7

60.5

52

-

65

Real estate

4.7

6.6

5

-

10

Total

100.0

100.0

In 2023,

100

% of the equity securities and

13

% of bonds had quoted market prices in an active market.

87

% of bonds and 100% of

money market instruments had market prices based on inputs other than quoted prices. If quoted market prices are not available, fair

values are determined from external calculation models based on market observations from various sources.

In 2022,

44

% of the equity securities and

3

% of bonds had quoted market prices in an active market.

54

% of the equity securities,

97

% of bonds and 100% of money market instruments had market prices based on inputs other than quoted prices.

For definition of the various levels, see note 28 Financial instruments and fair value measurement.

Estimated company contributions to be made to Equinor Pension in 2024 is approximately USD

109

 million.

23 Provisions and other liabilities

Accounting policies

Asset retirement obligations (ARO)

Provisions for asset retirement obligations (ARO) are recognised when Equinor has an obligation (legal or constructive) to dismantle

and remove a facility or an item of property, plant and equipment and to restore the site on which it is located, and when a reliable

estimate of that liability can be made. Normally an obligation arises for a new facility, such as an oil and natural gas production or

transportation facility, upon construction or installation. An obligation may also arise during the period of operation of a facility through

a change in legislation or through a decision to terminate operations or be based on commitments associated with Equinor's ongoing

use of pipeline transport systems where removal obligations rest with the volume shippers.

The amount recognised is the present value of the estimated future expenditures determined in accordance with local conditions and

requirements. The cost is estimated based on current regulations and technology, considering relevant risks and uncertainties. The

discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of

the underlying cash flows. The provisions are classified under Provisions in the Consolidated balance sheet.

When a provision for ARO is recognised, a corresponding amount is recognised as an increase of the related asset within property,

plant and equipment and is subsequently depreciated over the useful life of the asset. Any change in the present value of the

estimated expenditure is reflected as an adjustment to the provision and the corresponding adjustment to the carrying value of the

property, plant and equipment. When a decrease in the ARO related to a producing asset exceeds the carrying amount of the asset,

the excess is recognised as a reduction of Depreciation, amortisation and net impairment in the Consolidated statement of income.

When an asset has reached the end of its useful life, all subsequent changes to the ARO are recognised as they occur in Operating

expenses in the Consolidated statement of income.

Removal provisions associated with Equinor's role as shipper of volumes through third party transport systems are expensed as

incurred.

Estimation uncertainty regarding asset retirement obligations

Establishing the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing

technological developments, expectations about future regulatory and technological development and involve the application of

judgement and an inherent risk of significant adjustments. The costs of decommissioning and removal activities require revisions due

to changes in current regulations and technology while considering relevant risks and uncertainties. Most of the removal activities are

Equinor Annual Report on Form 20-F 2023 135

many years into the future, and the removal technology and costs are constantly changing. The speed of the transition to renewable

energy sources may also influence the production period, hence the timing of the removal activities. The estimates include

assumptions of norms, rates and time required which can vary considerably depending on the assumed removal complexity.

Moreover, changes in the discount rate and foreign currency exchange rates may impact the estimates significantly. As a result, the

initial recognition of ARO and subsequent adjustments involve the application of significant judgement.

---------------------------------------------------------------------------------------------------------------------------------

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

Non-current portion at 31 December 2022

11,569

4,064

15,633

Current portion at 31 December 2022 reported as Trade, other payables and

provisions

165

494

659

Provisions and other liabilities at 31 December 2022

11,734

4,558

16,292

New or increased provisions and other liabilities

488

443

931

Change in estimates

845

25

870

Amounts charged against provisions and other liabilities

(126)

(301)

(427)

Effects of change in the discount rate

(276)

13

(263)

Reduction due to divestments

(403)

97

(306)

Accretion expenses

462

76

538

Reclassification, transfer and other

(174)

(1,387)

(1,561)

Foreign currency translation effects

(190)

62

(128)

Provisions and other liabilities at 31 December 2023

12,360

3,586

15,946

Non-current portion at 31 December 2023

12,171

3,133

15,304

Current portion at 31 December 2023 reported as Trade, other payables and

provisions

190

452

642

Equinor Annual Report on Form 20-F 2023 136

Equinor's estimated asset retirement obligations (ARO) have increased by USD

626

 million to USD

12,360

 million at 31 December

2023 compared to year-end 2022. Changes in ARO are reflected within Property, plant and equipment and Provisions and other

liabilities in the Consolidated balance sheet.

In certain production sharing agreements (PSA), Equinor’s estimated share of asset retirement obligation (ARO) is paid into an escrow

account over the producing life of the field. These payments are considered down-payments of the liabilities and included in the line

item Amounts charged against provisions and other liabilities.

Claims and litigations mainly relate to expected payments for unresolved claims. The timing and amounts of potential settlements in

respect of these claims are uncertain and dependent on various factors that are outside management's control. For further information

on provisions and contingent liabilities, see note 26 Other commitments, contingent liabilities and contingent assets. 

The timing of cash outflows of asset retirement obligations depends on the expected cease of production at the various facilities.

Line item Reclassification, transfer and other includes USD

1,388

 million related to SDFI liability. See note 27 Related parties for

further details.

Sensitivities with regards to discount rate on the total ARO portfolio

The discount rate sensitivity has been calculated by assuming a reasonably possible change of

1.3

 percentage points.

An increase in the discount rate of

1.3

 percentage points would reduce the ARO liability by USD

1,994

 million. A corresponding

reduction would increase the liability by USD

2,507

 million. See note 3 Climate change and energy transition for sensitivity with

regards to change in the removal year.

Expected timing of cash outflows

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

2024 - 2028

1,512

2,580

4,092

2029 - 2033

997

342

1,339

2034 - 2038

2,605

134

2,739

2039 - 2043

4,610

(42)

4,568

Thereafter

2,636

572

3,208

At 31 December 2023

12,360

3,586

15,946

24 Trade, other payables and provisions

At 31 December

(in USD million)

2023

2022

Trade payables

5,317

6,207

Non-trade payables and accrued expenses

2,210

2,688

Payables due to participation in joint operations and similar arrangements

2,283

2,074

Payables to equity accounted associated companies and other related parties

1,242

1,479

Total financial trade and other payables

11,052

12,449

Current portion of provisions and other non-financial payables

819

903

Trade, other payables and provisions

11,870

13,352

Included in Current portion of provisions and other non-financial payables are certain provisions that are further described in note 23

Provisions and other liabilities and in note 26 Other commitments, contingent liabilities and contingent assets. For information

Equinor Annual Report on Form 20-F 2023 137

regarding currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on payables to

equity accounted associated companies and other related parties, see note 27 Related parties.

25 Leases

Accounting policies

Leases

A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for

consideration. At the date at which the underlying asset is made available for Equinor, the present value of future lease payments

(including extension options considered reasonably certain to be exercised) is recognised as a lease liability. The present value is

calculated using Equinor’s incremental borrowing rate. A corresponding right-of-use (RoU) asset is recognised, including lease

payments and direct costs incurred at the commencement date. Lease payments are reflected as interest expense and a reduction of

lease liabilities. The RoU assets are depreciated over the shorter of each contract’s term and the assets’ useful life.

Short term leases (12 months or less) and leases of low value assets are expensed or (if appropriate) capitalised as incurred,

depending on the activity in which the leased asset is used.

Many of Equinor’s lease contracts, such as rig and vessel leases, involve several additional services and components, including

personnel cost, maintenance, drilling related activities, and other items. For a number of these contracts, the additional services

represent a not inconsiderable portion of the total contract value. Non-lease components within lease contracts are accounted for

separately for all underlying classes of assets and reflected in the relevant expense category or (if appropriate) capitalised as

incurred, depending on the activity involved.

Accounting judgement regarding leases

In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar arrangements, the application

of IFRS 16 Leases requires evaluations of whether the joint arrangement or its operator is the lessee in each lease agreement and

consequently whether such contracts should be reflected gross (100%) in the operator’s financial statements, or according to each

joint operation partner’s proportionate share of the lease.

In many cases where an operator is the sole signatory to a lease contract of an asset to be used in the activities of a specific joint

operation, the operator does so implicitly or explicitly on behalf of the joint arrangement. In certain jurisdictions, and importantly for

Equinor as this includes the Norwegian continental shelf (NCS), the concessions granted by the authorities establish both a right and

an obligation for the operator to enter into necessary agreements in the name of the joint operations (licences).

As is the customary norm in upstream activities operated through joint arrangements, the operator will manage the lease, pay the

lessor, and subsequently re-bill the partners for their share of the lease costs. In each such instance, it is necessary to determine

whether the operator is the sole lessee in the external lease arrangement, and if so, whether the billings to partners may represent

sub-leases, or whether it is in fact the joint arrangement which is the lessee, with each participant accounting for its proportionate

share of the lease. Where all partners in a licence are considered to share the primary responsibility for lease payments under a

contract, Equinor’s proportionate share of the related lease liability and RoU asset will be recognised net by Equinor. When Equinor is

considered to have the primary responsibility for the full external lease payments, the lease liability is recognised gross (100%).

--------------------------------------------------------------------------------------------------------------------------------

Equinor leases certain assets, notably drilling rigs, transportation vessels, storages and office facilities for operational activities.

Equinor is mostly a lessee, and the use of leases serves operational purposes rather than as a tool for financing.

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

95

Lease repayments 

(1,451)

(1,451)

(1,389)

(1,389)

Foreign currency translation effects

(25)

(149)

Equinor Annual Report on Form 20-F 2023 138

Lease liabilities at 31 December

3,570

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

Equinor recognised revenues of USD

337

 million in 2023 and USD

319

 million in 2022 related to lease costs recovered from licence

partners related to lease contracts being recognised gross by Equinor.

Commitments relating to lease contracts which had not yet commenced at year-end are included within Other commitments in note 

26 Other commitments, contingent liabilities and contingent assets.

A maturity profile based on undiscounted contractual cash flows for lease liabilities is disclosed in note 4 Financial risk and capital

management.

Non-current lease liabilities maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

1,342

1,360

Year 4 and 5

470

483

After 5 years

478

566

Total repayment of non-current lease liabilities

2,291

2,409

The Right of use assets are included within the line item Property, plant and equipment in the Consolidated balance sheet. See also

note 12 Property, plant and equipment.

Equinor Annual Report on Form 20-F 2023 139

26 Other commitments, contingent liabilities and contingent assets

Accounting policies

Estimation uncertainty regarding levies

Equinor’s global business activities are subject to taxation on income and indirect taxes in various jurisdictions around the

world. In these jurisdictions, governments can respond to global or local development, including climate related matters and

public fiscal balances, by issuing new laws or other regulations stipulating changes in income tax, value added tax, tax on

emissions, customs duties or other levies which may affect profitability and even the viability of Equinor’s business in that

jurisdiction. Equinor mitigates this risk by using local legal representatives and staying up to date with the legislation in the

jurisdictions where activities are carried out. Occasionally, legal disputes arise from difference in interpretations. Equinor’s

legal department, together with local legal representatives, estimate the outcome from such legal disputes based on first-hand

knowledge. Such estimates may differ from the actual results.

--------------------------------------------------------------------------------------------------------------------------------

Contractual commitments

Equinor had contractual commitments of USD

11,259

 million as of 31 December 2023. The contractual commitments reflect Equinor's

proportional share and mainly comprise construction and acquisition of property, plant and equipment as well as committed

investments/funding or resources in equity accounted entities. It also includes Equinors’ estimated expenditures related to

commitments to drill a certain number of wells, commitments which sometimes can be a prerequisite to be awarded oil and gas

exploration and production licences.

At the end of 2023, Equinor was committed to participate in

34

 wells, with an average ownership interest of approximately

46

%.

Equinor's share of estimated expenditures to drill these wells amounts to USD

609

 million. Additional wells that Equinor may become

committed to participating in depending on future discoveries in certain licences are not included in these numbers.

Other long-term commitments

Equinor has entered into various long-term agreements for pipeline transportation as well as terminal use, processing, storage and

entry/exit capacity commitments and commitments related to specific purchase agreements. The agreements ensure the rights to the

capacity or volumes in question, but also impose on Equinor the obligation to pay for the agreed-upon service or commodity,

irrespective of actual use. The contracts' terms vary, with durations of up to

2060

.

Take-or-pay contracts for the purchase of commodity quantities are only included in the table below if their contractually agreed

pricing is of a nature that will or may deviate from the obtainable market prices for the commodity at the time of delivery.

Obligations payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below

with Equinor’s full proportionate share. For assets (such as pipelines) that are included in the Equinor accounts through joint

operations or similar arrangements, and where consequently Equinor’s share of assets, liabilities, income and expenses (capacity

costs) are reflected on a line-by-line basis in the Consolidated financial statements, the amounts in the table include the net

commitment payable by Equinor (i.e. Equinor’s proportionate share of the commitment less Equinor's ownership share in the

applicable entity).

The table below also includes USD

3,600

 million as the non-lease components of lease agreements reflected in the accounts

according to IFRS 16, as well as leases not yet commenced. For commenced leases, please refer to note 25 Leases.

Nominal minimum other long-term commitments at 31 December 2023:

(in USD million)

2024

2,659

2025

1,972

2026

1,615

2027

1,187

2028

1,010

Thereafter

6,775

Total other long-term commitments

15,218

Equinor Annual Report on Form 20-F 2023 140

Guarantees

Equinor has guaranteed for its proportionate share of some of our associates’ long-term bank debt, payment obligations under

contracts, and certain third-party obligations. The total amount guaranteed at year-end 2023 is USD

1,564

 million. The book value of

the guarantees is immaterial.

Contingent liabilities and contingent assets

Claim from Petrofac regarding multiple variation order requests performed in Algeria (In Salah)

Petrofac International (UAE) LLC (“PIUL”) was awarded the EPC Contract to execute the ISSF Project (the In Salah Southern Fields

Project in central Algeria). Following a suspension of activity in 2013, PIUL issued multiple Variation Order Requests (“VoRs”) related

to the costs incurred for stand-by and remobilization costs. Several VoRs have been paid, but the settlement of the remaining has

been unsuccessful. PIUL initiated arbitration in August 2020 claiming an estimated amount of USD

533

 million, of which Equinor holds

a

31.85

% share. Equinor's maximum exposure amounts to USD

163

 million. Equinor has provided for its best estimate in the matter.

Withholding tax dispute regarding remittances from Brazil to Norway

Remittances made from Brazil for services are normally subject to withholding income tax. In 2012, Equinor’s subsidiaries in Brazil

filed a lawsuit to avoid paying this tax on remittances made to Equinor ASA and Equinor Energy AS under the Double Tax Treaty

Brazil has with Norway. The lawsuit relates to services without transfer of technology on fields where Equinor is a partner. Court

proceedings through several levels in the legal system have been ongoing, and a final verdict has not yet been reached. Withholding

tax has not been paid since 2014. Equinor's share of maximum exposure in the case at year end 2023 is estimated at approximately

USD

159

 million. Although Equinor continues to be of the view that all applicable tax regulations have been applied in the case, recent

developments in similar litigation in Brazil have led to an updated evaluation of the likelihood of loss, and Equinor has provided for the

best estimate in the case as income tax expense.

Suit for an annulment of Petrobras’ sale of the interest in BM-S-8 to Equinor

In March 2017, an individual connected to the Union of Oil Workers of Sergipe (Sindipetro) filed a class action suit against Petrobras,

Equinor, and ANP - the Brazilian Regulatory Agency - to seek annulment of Petrobras’ sale of the interest and operatorship in BM-S-8

to Equinor, which was closed in November 2016 after approval by the partners and authorities. In February 2022, sentence in the

annulment case was issued at the first instance level, and Equinor won on all merits. The case was appealed by the plaintiff and

Equinor has filed counter arguments. At the end of 2023, the acquired interest remains on Equinor’s balance sheet, where the assets

related to phase 1 have been reclassified to property, plant and equipment and the assets related to phase 2 are presented as

intangible assets, all of which are part of the Exploration & Production International (E&P International) segment.

Brazilian law creating uncertainty regarding certain tax incentives

Equinor is currently part in two legal matters in the state of Rio de Janeiro in Brazil related to a law requiring taxpayers that benefits

from ICMS tax incentives (i.e. Repetro) to deposit

10

% of the savings made from such benefits into a state fund. Equinor is of the

opinion that specific incentives so far relevant for the Roncador and Peregrino fields are not in scope of the law, while the state of Rio

de Janeiro requires deposits to be paid with the addition of fines and interest. While legal developments in 2023 have included

clarification from the Supreme Court that the law is constitutional, subject to a final ruling, Equinor’s litigation in the matter continues,

mainly related to the law’s impact specifically for Repetro and other state tax incentives. Equinor believes that our view in the matter

will ultimately be upheld by the courts, and no amounts have consequently been provided for in the financial statements. At year-end

2023, the maximum exposure for Equinor in the matter has been estimated to be a total of USD

114

 million.

KKD oil sands partnership

Canadian tax authorities have issued a notice of reassessment for 2014 for Equinor's Canadian subsidiary which was party to

Equinor's divestment of

40

% of the KKD Oil Sands partnership at that time. The reassessment adjusts the allocation of the proceeds

of disposition of certain Canadian resource properties from the partnership. Maximum exposure is estimated to be approximately USD

380

 million. Following an administrative appeal process with Canadian tax authorities, Equinor commenced court proceedings in the

matter in 2023. While the court process may take several years, the reassessment will impact Equinor’s tax paying position while the

proceedings are ongoing. Equinor is of the view that all applicable tax regulations have been applied in the case and that Equinor has

a strong position. No amounts have consequently been provided for in the financial statements.

Other claims

During the normal course of its business, Equinor is involved in legal proceedings, and several other unresolved claims are currently

outstanding. The ultimate liability or asset, in respect of such litigation and claims cannot be determined at this time. Equinor has

provided in its Consolidated financial statements for probable liabilities related to litigation and claims based on its best estimate.

Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of

these legal proceedings. Equinor is actively pursuing the above disputes through the contractual and legal means available in each

case, but the timing of the ultimate resolutions and related cash flows, if any, cannot at present be determined with sufficient reliability.

Equinor Annual Report on Form 20-F 2023 141

Provisions related to claims other than those related to income tax are reflected within note 23 Provisions and other liabilities.

Uncertain income tax related liabilities are reflected as current tax payables or deferred tax liabilities as appropriate, while uncertain

tax assets are reflected as current or deferred tax assets.

27 Related parties

Transactions with the Norwegian State

The Norwegian State is the majority shareholder of Equinor and also holds major investments in other Norwegian companies. As of 

31 December 2023, the Norwegian State had an ownership interest in Equinor of

67.0

% (excluding Folketrygdfondet, the Norwegian

national insurance fund, of

3.6

%). This ownership structure means that Equinor participates in transactions with many parties that are

under a common ownership structure and therefore meet the definition of a related party.

For accounting policies and accounting judgement related to transactions with the Norwegian State, see note 7 Total revenues and

other income. Total purchases of oil and natural gas liquids from the Norwegian State amounted to USD

10.1

 billion, USD

12.6

 billion

and USD

9.6

 billion in 2023, 2022 and 2021, respectively. Payables to equity accounted associated companies and other related

parties specified in note 24 Trade and other payables are mostly related to these purchases, and is included in the below table within

Trade, other payables and provisions. In addition, Equinor sells in its own name, but for the Norwegian State’s account and risk, the

Norwegian State’s gas production.

Trade and other receivables include a receivable from the Norwegian State under the Marketing Instruction in relation to the state’s

(SDFI) participation in the gas sales activities of a foreign subsidiary of Equinor, estimated at USD

0.1

 billion. At year-end 2022, the

corresponding estimated amount of USD

1.5

 billion was classified as a non-current item and included within Prepayments and

financial receivables. The decrease is mainly related to reduced cost price for gas storage volume and realised gains in the period. A

corresponding non-current liability of USD

0.1

 billion has been recognised, representing SDFI's estimated interest in the gas sales

activities in the foreign subsidiary, and is included within Provisions and other liabilities in the below table. The estimated total non-

current liabilities to SDFI amount to USD

0.8

 billion at 31 December 2023 (USD

2.1

 billion at year end 2022).

In addition, the line-item Finance debt, which form part of the sub-total Total current liabilities, includes a liability of USD

0.9

 billion to

SDFI due to cash received for collateral deposits requirement (

0

 at year end 2022).

Transactions with the Norwegian State related to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity,

capital distribution and earnings per share.

Other transactions

In its ordinary business operations, Equinor enters into contracts such as pipeline transport, gas storage and processing of petroleum

products, with companies in which Equinor has ownership interests.

Gassled and certain other infrastructure assets are operated by Gassco AS, which is an entity under common control by the

Norwegian Ministry of Energy. Gassco’s activities are performed on behalf of and for the risk and reward of pipeline and terminal

owners, and capacity payments flow through Gassco to the respective owners. Equinor payments that flowed through Gassco in this

respect amounted to USD

1.0

 billion in 2023, USD

1.2

 billion and USD

1.0

 billion in 2022 and 2021 respectively. The stated amounts

represent Equinor’s capacity payment net of Equinor’s own ownership interests in Gassco operated infrastructure. In addition, Equinor

manages, in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s share of the Gassco costs. These

transactions are presented net.

Equinor has had transactions with other associated companies and joint ventures in the course of its ordinary business, for which

amounts have not been disclosed due to materiality. In addition, Equinor has had transactions with joint operations and similar

arrangements where Equinor is operator. Indirect operating expenses incurred as operator are charged to the joint operation or similar

arrangement based on the “no-gain/no-loss” principle.

Related party transactions with management are presented in note 8 Salaries and personnel expenses. Related party transactions

due to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity, capital distribution and earnings per

share. Outstanding balances to related parties split on SDFI and other related parties are presented in the below table. All related

party transactions are carried out on market terms.

Equinor Annual Report on Form 20-F 2023 142

At 31 December 2023

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

-

103

1,188

1,291

Trade and other receivables

1,007

49

15,877

16,933

Liabilities

Non-current provisions and other liabilities

850

-

14,454

15,304

Trade, other payables and provisions

1,195

47

10,628

11,870

Current finance debt 

893

-

5,103

5,996

At 31 December 2022

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

1,461

61

541

2,063

Trade and other receivables

1,103

173

21,176

22,452

Liabilities

Non-current provisions and other liabilities

2,072

-

13,561

15,633

Trade, other payables and provisions

1,419

60

11,873

13,352

Current finance debt 

-

-

4,359

4,359

28 Financial instruments and fair value measurement

Accounting policies

Financial assets

Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset.

Short-term highly liquid investments with original maturity exceeding 3 months are classified as current financial investments. Current

financial investments are primarily accounted for at amortised cost.

Trade receivables are carried at the original invoice amount less a provision for doubtful receivables which represent expected losses

computed on a probability-weighted basis.

A part of Equinor's financial investments is managed together as an investment portfolio of Equinor's captive insurance company and

is held in order to comply with specific regulations for capital retention. The investment portfolio is managed and evaluated on a fair

value basis in accordance with an investment strategy and is accounted for at fair value through profit or loss.

Financial assets are presented as current if they contractually will expire or otherwise are expected to be recovered within 12 months

after the balance sheet date, or if they are held for the purpose of being traded. Financial assets and financial liabilities are shown

separately in the Consolidated balance sheet, unless Equinor has both a legal right and a demonstrable intention to net settle certain

balances payable to and receivable from the same counterparty.

Gains and losses arising on the sale, settlement or cancellation of financial assets are recognised within Net financial items.

Financial liabilities

Financial liabilities are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the liability. The

subsequent measurement of financial liabilities is either as financial liabilities at fair value through profit or loss or financial liabilities

measured at amortised cost using the effective interest method, depending on classification. The latter applies to Equinor's non-

current bank loans and bonds.

Equinor Annual Report on Form 20-F 2023 143

Financial liabilities are presented as current if the liability is expected to be settled as part of Equinor’s normal operating cycle, the

liability is due to be settled within 12 months after the balance sheet date, Equinor does not have the right to defer settlement of the

liability more than 12 months after the balance sheet date, or if the liabilities are held for the purpose of being traded.

Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised within Net financial items.

Derivative financial instruments

Equinor uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates, interest

rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a

derivative contract is entered into and are subsequently remeasured at fair value through profit and loss. The impact of commodity-

based derivative financial instruments is recognised in the Consolidated statement of income as part of Revenues, as such derivative

instruments are related to sales contracts or revenue-related risk management for all significant purposes. The impact of other

derivative financial instruments is reflected under Net financial items.

Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivative assets or

liabilities expected to be settled, or with the legal right to be settled more than 12 months after the balance sheet date, are classified

as non-current. Derivative financial instruments held for the purpose of being traded are however always classified as current.

Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument are accounted for as

financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a

non-financial item in accordance with Equinor's expected purchase, sale or usage requirements, also referred to as own-use, are not

accounted for as financial instruments. Such sales and purchases of physical commodity volumes and power are reflected in the

Consolidated statement of income as Revenue from contracts with customers and Purchases [net of inventory variation], respectively.

This is applicable to a significant number of contracts for the purchase or sale of crude oil and natural gas, as well as for some

contracts for the purchase or sale of power.

For contracts to sell a non-financial item that can be settled net in cash, but which ultimately are physically settled despite not

qualifying as own use prior to settlement, the changes in fair value are included in Gain/loss on commodity derivatives. When these

derivatives are physically settled, the previously recognised unrealised gain/loss is included in Physically settled commodity

derivatives. Both these elements are included as part of Revenues. The physical deliveries made through such contracts are included

in Revenue from contracts with customers at contract price.

Derivatives embedded in host contracts which are not financial assets within the scope of IFRS 9 are recognised as separate

derivatives and are reflected at fair value with subsequent changes through profit and loss, when their risks and economic

characteristics are not closely related to those of the host contracts, and the host contracts are not carried at fair value. Where there is

an active market for a commodity or other non-financial item referenced in a purchase or sale contract, a pricing formula will, for

instance, be considered to be closely related to the host purchase or sales contract if the price formula is based on the active market

in question. A price formula with indexation to other markets or products will however result in the recognition of a separate derivative.

In Equinor, this mainly relates to certain natural gas sales contracts where the pricing formula references power.

--------------------------------------------------------------------------------------------------------------------------------------

Financial instruments by category

The following tables present Equinor's classes of financial instruments and their carrying amounts by the categories as they are

defined in IFRS 9 Financial Instruments. For financial investments, the difference between measurement as defined by IFRS 9

categories and measurement at fair value is immaterial. For trade and other receivables and payables, and cash and cash

equivalents, the carrying amounts are considered a reasonable approximation of fair value. See note 21 Finance

debt for fair value

information of non-current bonds and bank loans.

At 31 December 2023

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

559

559

Non-current financial investments

16

75

3,366

3,441

Prepayments and financial receivables

16

341

950

1,291

Trade and other receivables

18

16,193

740

16,933

Current derivative financial instruments

1,378

1,378

Equinor Annual Report on Form 20-F 2023 144

Current financial investments

16

28,822

402

29,224

Cash and cash equivalents

19

7,767

1,875

9,641

Total 

53,198

7,580

1,690

62,467

At 31 December 2022

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

691

691

Non-current financial investments

16

117

2,616

2,733

Prepayments and financial receivables

16

1,658

404

2,063

Trade and other receivables

18

21,611

841

22,452

Current derivative financial instruments

4,039

4,039

Current financial investments

16

29,577

300

29,876

Cash and cash equivalents

19

12,473

3,106

15,579

Total 

65,436

10,752

1,245

77,433

Equinor Annual Report on Form 20-F 2023 145

At 31 December 2023

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

22,230

22,230

Non-current derivative financial instruments

1,795

1,795

Trade, other payables and provisions

24

11,052

819

11,870

Current finance debt

21

5,996

5,996

Dividend payable

2,649

2,649

Current derivative financial instruments

1,619

1,619

Total 

41,927

3,414

819

46,159

At 31 December 2022

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

24,141

24,141

Non-current derivative financial instruments

2,376

2,376

Trade, other payables and provisions

24

12,449

903

13,352

Current finance debt

21

4,359

4,359

Dividend payable

2,808

2,808

Current derivative financial instruments

4,106

4,106

Total 

43,757

6,482

903

51,142

Equinor Annual Report on Form 20-F 2023 146

Measurement of fair values

Quoted prices in active markets represent the best evidence of fair value and are used by Equinor in determining the fair values of

assets and liabilities to the extent possible. Financial instruments quoted in active markets will typically include financial instruments

with quoted market prices obtained from the relevant exchanges or clearing houses. The fair values of quoted financial assets,

financial liabilities and derivative instruments are determined by reference to mid-market prices, at the close of business on the

balance sheet date.

Where there is no active market, fair value is determined using valuation techniques. These include using recent arm's-length market

transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and pricing models and

related internal assumptions. In the valuation techniques, Equinor also takes into consideration the counterparty and its own credit

risk. This is either reflected in the discount rate used or through direct adjustments to the calculated cash flows. Consequently, where

Equinor reflects elements of long-term physical delivery commodity contracts at fair value, such fair value estimates to the extent

possible are based on quoted forward prices in the market and underlying indexes in the contracts, as well as assumptions of forward

prices and margins where observable market prices are not available. Similarly, the fair values of interest and currency swaps are

estimated based on relevant quotes from active markets, quotes of comparable instruments, and other appropriate valuation

techniques.

Fair value hierarchy

The following table summarises each class of financial instruments which are recognised in the Consolidated balance sheet at fair

value, split by Equinor's basis for fair value measurement.

(in USD million)

Non-current

financial

investments

Non-current

derivative

financial

instruments

- assets

Current

financial

investments

Current

derivative

financial

instruments

- assets

Cash

equivalents

Non-current

derivative

financial

instruments

- liabilities

Current

derivative

financial

instruments

- liabilities

Net fair

value

At 31 December 2023

Level 1

1,294

0

-

6

0

-

1,300

Level 2

1,528

104

402

1,195

1,875

(1,754)

(1,577)

1,773

Level 3

543

455

177

(42)

(41)

1,092

Total fair value

3,366

559

402

1,378

1,875

(1,795)

(1,619)

4,166

At 31 December 2022

Level 1

903

-

-

25

-

(60)

868

Level 2

1,222

97

300

3,722

3,106

(2,352)

(3,952)

2,143

Level 3

491

594

292

(24)

(94)

1,259

Total fair value

2,616

691

300

4,039

3,106

(2,376)

(4,106)

4,270

Level 1, fair value based on prices quoted in an active market for identical assets or liabilities, includes financial instruments actively

traded and for which the values recognized in the Consolidated balance sheet are determined based on observable prices on identical

instruments. For Equinor this category will, in most cases, only be relevant for investments in listed equity securities and government

bonds.

Level 2, fair value based on inputs other than quoted prices included within level 1, which are derived from observable market

transactions, includes Equinor's non-standardised contracts for which fair values are determined on the basis of price inputs from

observable market transactions. This will typically be when Equinor uses forward prices on crude oil, natural gas, interest rates and

foreign currency exchange rates as inputs to the valuation models to determine the fair value of it derivative financial instruments.

Level 3, fair value based on unobservable inputs, includes financial instruments for which fair values are determined on the basis of

input and assumptions that are not from observable market transactions. The fair values presented in this category are mainly based

on internal assumptions. The internal assumptions are only used in the absence of quoted prices from an active market or other

observable price inputs for the financial instruments subject to the valuation.

The fair value of certain earn-out agreements and embedded derivative contracts are determined by the use of valuation techniques

with price inputs from observable market transactions as well as internally generated price assumptions and volume profiles. The

discount rate used in the valuation is a risk-free rate based on the applicable currency and time horizon of the underlying cash flows

adjusted for a credit premium to reflect either Equinor's credit premium, if the value is a liability, or an estimated counterparty credit

Equinor Annual Report on Form 20-F 2023 147

premium if the value is an asset. In addition, a risk premium for risk elements not adjusted for in the cash flow may be included when

applicable. The fair values of these derivative financial instruments have been classified in their entirety in the third category within

current derivative financial instruments and non-current derivative financial instruments. Another reasonable assumption, that could

have been applied when determining the fair value of these contracts, would be to extrapolate the last observable forward prices with

inflation. If Equinor had applied this assumption, the fair value of the contracts included would have increased by approximately USD

0.3

 billion at end of 2023, while at end of 2022 the increase in fair value was approximately USD

0.5

 billion.

During 2023 the financial instruments within level 3 have had a net decrease in fair value of USD

167

 million, of which a loss of USD

191

 million was recognised in the Consolidated statement of income, mainly due to changes in fair value of certain embedded

derivatives and earn-out agreements. During 2022, the same financial instruments had a net increase in fair value of USD

416

 million,

of which a gain of USD

370

 million was recognised in the Consolidated statement of income.

29 Subsequent events

Swap of US Offshore Wind assets

In January 2024, Equinor entered into a swap agreement with bp. Equinor will acquire bp’s

50

% share and take full ownership of

Empire Offshore Wind Holdings LLC, including the Empire Wind lease and projects, while bp will acquire Equinor’s

50

% share and

take full ownership of Beacon Wind Holdings LLC, including the Beacon Wind lease and projects. It is anticipated that Equinor will

consolidate Empire Wind and derecognise its

50

% share of Beacon Wind in the first quarter of 2024. Equinor will also acquire bp's

50

% interest in the South Brooklyn Marine Terminal (SBMT) lease. The transaction, pending regulatory approvals, is anticipated to be

cash neutral, with the exception of standard cash and working capital settlements and will be recognised in the REN segment.

EX-1

exhibit1

EX-2

EXHIBIT 2.1

 DESCRIPTION OF SECURITIES

REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT

As of 31 December 2023, Equinor ASA (“Equinor,” the “company,” “we,” “us,” and

“our”) had the following series of securities registered pursuant to Section 12(b) of

the Act:

Title of each class

Trading symbol(s)

Name of each exchange on

which registered

American Depositary Shares

EQNR

New York Stock Exchange

Ordinary shares, nominal value

of NOK 2.50 each

New York Stock Exchange*

* Listed, not for trading, but only in connection with the registration of American

Depositary Shares, pursuant to the requirements of the Securities and Exchange

Commission (the “SEC”)

Capitalized terms used but not defined herein have the meanings given to them in

our annual report on Form 20-F for the fiscal year ended 31 December 2023 (the

“Annual Report”).

ORDINARY SHARES

General 

This is a summary of material information relating to our share capital, including

summaries of certain provisions of our articles of association and the applicable

Norwegian law in effect at the date of the Annual Report, including the Norwegian

Public Limited Liability Companies Act. You should refer to the full text of our articles

of association in English, which is filed as Exhibit 1 to the Annual Report.

Share Capital

As of 31 December 2023, our authorised share capital was NOK 7,507,761,512.50,

divided into 3,003,104,605 ordinary shares, with a nominal value of NOK 2.50 per

ordinary share. The ordinary shares are in registered form. As of 31 December 2023,

2,944,733,144 ordinary shares were issued and outstanding (excluding repurchased

shares).

We have only one class of shares and all shares have voting rights. The holders of

shares are entitled to receive dividends as and when declared and are entitled to

one vote per share at the annual general meeting of the company.

Authorisation to Acquire Our Own Shares

The annual general meeting authorised on 10 May 2023, the board of directors to

acquire Equinor ASA shares in the market, on behalf of the company, with a nominal

value of up to NOK 235,000,000. The board of directors is authorised to decide at

what price within minimum and maximum prices per share of NOK 50 and NOK

1,000, respectively, and at what time such acquisition shall take place. Shares

acquired pursuant to this authorisation can only be used for annulment through a

reduction of the company’s share capital, pursuant to the Norwegian Public Limited

Liability Companies Act section 12-1. The authorisation is valid until the next annual

general meeting, but not beyond 30 June 2024.

Further, on 10 May 2023, the annual general meeting authorised the board of

directors to acquire Equinor ASA shares in the market, on behalf of the company,

with a nominal value of up to NOK 27,500,000 to continue operation of the share

savings plan for employees. The board of directors is authorised to decide the price

within minimum and maximum prices per share of NOK 50 and NOK 1,000,

respectively, and the time of such acquisition. Shares acquired pursuant to this

authorisation may only be used for sale and transfer to employees of the Equinor

group as a part of the group’s share savings plan and long-term incentive plan, as

approved by the board of directors. The authorisation is valid until 30 June 2024.

General Meetings

In accordance with Norwegian law, our annual general meeting of shareholders is

required to be held each year on or prior to June 30. The meeting addresses and

decides adoption of the annual report and accounts, including the distribution of any

dividend and any other matters required by law or the articles of association.

Norwegian law requires that written notice of general meetings be sent to all

shareholders whose addresses are known at least 21 days prior to the date of the

meeting. A shareholder may vote at the general meeting either in person or by proxy. 

Norwegian law does not require us to send proxy forms to our shareholders for

general meetings as long as such proxy forms are made available on our webpage

and the notice for general meetings includes the link to such website. However, we

plan to continue to send proxy forms with future notices of general meetings.

Our articles of association provide that shareholders may vote in writing, including

through electronic communication, during a specified period before the general

meeting. Our board of directors adopted guidelines for such advance voting in March

2012, and these guidelines are described in the notices of the annual general

meetings. 

In addition to the annual general meeting, extraordinary general meetings of

shareholders may be held if deemed necessary by the board of directors, the

corporate assembly or the Chair of the corporate assembly. An extraordinary general

meeting must also be convened for the consideration of specific matters at the

written request of our auditors or of shareholders representing a total of at least 5%

of the outstanding share capital. 

Voting Rights

All of our ordinary shares carry equal right to vote at general meetings. Except as

otherwise provided, decisions which shareholders are entitled to make pursuant to

Norwegian law or our articles of association may be made by a simple majority of the

votes cast. In the case of elections, the persons who obtain the most votes cast are

deemed elected. However, certain decisions, including, but not limited to resolutions

to waive preferential rights in connection with any share issue, to approve a merger

or demerger, to amend our articles of association, to authorise an increase or

reduction in our share capital, to issue convertible loans and certain other financial

instruments or to authorise the board of directors to purchase shares, must receive

the approval of at least two-thirds of the aggregate number of votes cast as well as

two-thirds of the share capital represented at a shareholders’ meeting. 

The record date for attending and voting at the general meeting is five business days

prior to the general meeting (the “Record Date”). The notice of the general meeting

shall state the time of the Record Date. Beneficial owners of shares which are

registered in the name of a nominee, including for this purpose beneficial owners of

American Depositary Shares ("ADSs") are generally entitled to vote at the general

meeting with respect to shares they beneficially own on the Record Date. According

to the Norwegian Public Limited Liability Companies Act § 1-8, as well as regulations

on intermediaries covered by the Central Securities Act § 4-5 and related

implementing regulations, the notice of the general meeting is sent to custodians

who pass the notice on to shareholders for whom they hold shares. Shareholders

must communicate with their custodians, who are responsible for conveying votes,

proxies or enrollment. Custodians must according to Section 5-3 of the Public

Limited Liability Companies Act register participation by owners of nominee-

registered shares in the general meeting with the company no later than 2 working

days before the general meeting.

The Central Securities Depository and Transfer of Shares

Euronext Securities Oslo (Verdipapirsentralen ASA, “ES-OSL” or “VPS”) is Norway’s

central securities depository. It is a computerized bookkeeping system in which the

ownership of, and all transactions relating to, Norwegian listed shares must be

recorded. Our share register is operated through the VPS System. 

All transactions relating to securities registered with the VPS System are made

through computerized book entries. No physical share certificates are or can be

issued. The VPS System confirms each entry by sending a transcript to the

registered shareholder regardless of beneficial ownership. To effect these entries,

the individual shareholder must establish a securities’ account with a Norwegian

account agent. Norwegian banks, the Central Bank of Norway, authorised

investment firms in Norway, and Norwegian branches of credit institutions

established within the European Economic Area are allowed to act as account

agents.

The entry of a transaction in the VPS System is

prima facie

 evidence in determining

the legal rights of parties as against the issuing company or a third party claiming an

interest in the subject security. 

The VPS System is liable for any loss suffered as a result of faulty registration or an

amendment to, or deletion of, rights in respect of registered securities unless the

error is caused by matters outside the VPS’ control, the consequences of which the

VPS could not reasonably be expected to avoid or overcome. Damages payable by

the VPS may, however, be reduced in the event of contributory negligence by the

aggrieved party. A transferee or assignee of shares may not exercise the rights of a

shareholder with respect to his or her shares unless that transferee or assignee has

registered his or her shareholding or has reported and shown evidence of such

share acquisition and the acquisition of such shares is not prevented by law, our

articles of association or otherwise.

Amendments to our Articles of Association, including Variation of Rights

The affirmative vote of at least two-thirds of the votes cast and of the share capital

represented at the general meeting is required to amend our articles of association.

Any amendment, or other resolution, which would reduce any shareholder’s right in

respect of dividend payments or other rights to our assets or restrict the

transferability of shares requires a majority vote of at least 90% of the aggregate

share capital represented in a general meeting, as well as the majority required for

the amendment of the articles of association. Because the Norwegian State, acting

through the Ministry of Trade, Industry and Fisheries, holds more than two-thirds of

the shares in the company, it currently has the sole power to amend our articles of

association.

Certain types of changes in the rights of our shareholders require the consent of all

affected shareholders. If such resolutions only affect some of the shareholders, the

resolutions require the support of all affected shareholders, as well as the majority

required for the amendment of the articles of association.

Additional Issuances and Preferential Rights

If we issue any new shares, including bonus share issues, our articles of association

must be amended, which requires the same vote as other amendments to our

articles of association. In addition, under Norwegian law, our shareholders have a

preferential right to subscribe to new shares issued by us. The preferential rights to

subscribe to an issue may be waived by a resolution in a general meeting passed by

the same percentage threshold required to approve amendments to our articles of

association.

The general meeting may, with a majority vote as described above, authorise the

board of directors to issue new shares, and to waive the preferential rights of

shareholders in connection with such issuances. Such authorisation may be effective

for a maximum of two years, and the total par value of the shares to be issued may

not exceed 50% of the registered share capital when the authorisation is registered

in the Norwegian Register of Business Enterprises.

The issuance of shares to holders who are citizens or residents of the United States

upon the exercise of preferential rights may require us to file a registration statement

in the United States under United States securities laws. If we decide not to file a

registration statement, these holders may not be able to exercise their preferential

rights. 

Under Norwegian law, bonus share issues may be distributed, subject to shareholder

approval, by transfer from our distributable equity. Any bonus issues may be effected

either by issuing shares or by increasing the par value of the shares outstanding.

Minority Rights

Norwegian law contains a number of protections for minority shareholders against

oppression by the majority including but not limited to those described in this

paragraph. Any shareholder may petition the courts to have a decision of the general

meeting declared invalid on the grounds that it was unlawfully adopted or is

otherwise in conflict with statute or the articles of association of the company. In

certain grave circumstances shareholders may require the courts to dissolve the

company as a result of such a decision. A shareholder may also demand a

dissolution if any of the company’s bodies has adopted a decision which is suited to

give certain shareholders or others an unreasonable benefit at the expense of other

shareholders or the company. 

Minority shareholders holding 5% or more of our share capital have a right to

demand that we hold an extraordinary general meeting to discuss or resolve specific

matters. In addition, any shareholder may demand that we place an item on the

agenda for any general meeting if we are notified at least within seven days before

the deadline for convening the general meeting. 

Mandatory Bid Requirement

Norwegian law requires any person, entity or consolidated group that acquires more

than one-third of the voting rights of a Norwegian company listed on a Norwegian

regulated market, such as the Oslo Stock Exchange (“OSE”), to make, within four

weeks of such acquisition, an unconditional general offer to acquire the remaining

shares in that company. The mandatory bid obligation ceases to apply if the person

subject to the obligation disposes of the portion of shares exceeding the mandatory

bid threshold within such four week period. The party must immediately notify the

stock exchange and the company when it enters into an agreement to acquire

shares that will trigger the duty to make a mandatory offer. Until a bid is made, or a

sale is effective, the relevant party cannot vote the portion of its shares which

exceeds the mandatory bid threshold or exercise any rights of share ownership in

respect of such shares, other than the right to receive dividends and preferential

rights in the event of a share capital increase.

The offer is subject to approval by the Oslo Stock Exchange in its capacity as

Norwegian takeover supervisory authority before submission of the offer to the

shareholders. The offer must be in cash or contain a cash alternative at least

equivalent to any other consideration offered. The bid price shall be at least as high

as the highest payment the offeror has made or agreed to make in the six-month

prior to the time the mandatory bid obligation was triggered, but equal to the market

price if it is clear that the market price was higher at the point the mandatory bid

obligation was triggered. The period for acceptance of the bid must be within four

and six weeks.

A shareholder that fails to make a bid within the four week period may not, as long

as the mandatory bid requirement applies and unless the remaining shareholders so

approve, exercise rights of share ownership with respect to all its shares other than

the right to receive dividends and preferential rights in the event of a share capital

increase. In addition, the takeover supervisory authority may impose a daily fine

upon a shareholder who fails to make the required offer. If no bid is made, and the

period allowed for sale is exceeded, the takeover supervisory authority may sell the

shares under the rules governing forced sales.

Any person, entity or consolidated group that owns shares representing more than

one-third of the voting rights in a company is obliged to make an offer to acquire the

remaining shares of the company if the person, entity or consolidated group

becomes the owner of shares representing 40% or more of the voting rights in the

company through an acquisition (repeated mandatory offer obligation). The same

applies if the shareholder becomes the owner of 50% or more of the voting rights in

the company through an acquisition.

Compulsory Acquisition

A shareholder who, directly or via subsidiaries, acquires shares representing more

than 90% of the total number of issued shares, as well as more than 90% of the total

voting rights, has the right to effect a compulsory acquisition for cash of any shares

not already owned by the majority shareholder (and each remaining minority

shareholder of that company would have the right to require the majority shareholder

to effect a compulsory acquisition for cash of the shares not already owned by such

majority shareholder). A compulsory acquisition has the effect that the majority

shareholder becomes the owner of the shares of the minority shareholders with

immediate effect.

A majority shareholder who effects a compulsory acquisition is required to offer the

minority shareholders a specific price per share. The determination of the offer price

is at the discretion of the majority shareholder. However, where the shareholder,

after making a mandatory or voluntary offer, has acquired more than 90% of the

voting shares of a company and a corresponding proportion of the voting rights, and

the shareholder completes a compulsory acquisition of the remaining shares within

three months after the expiry of the offer period, the redemption price shall be

determined on the basis of the offer price in the mandatory / voluntary offer unless

specific reasons indicate another price.

Should any minority shareholder not accept the offered price, such minority

shareholder must notify the majority shareholder within a specified period of not less

than two months. If the parties do not come to an agreement on the offer price, each

party can request that the price be set by the Norwegian courts. The cost of such

court procedure would normally be charged to the account of the majority

shareholder, and the courts would have full discretion in determining the

consideration due to the minority shareholder as a result of the compulsory

acquisition on the basis of the true value of the company.

Our Directors and Corporate Assembly

We have a corporate assembly comprising 18 members. At the general meeting of

shareholders, two-thirds of the members of the corporate assembly are normally

elected for a term of two years, together with deputy members, while the remaining

one-third, together with deputy members, are elected by and from among our

employees. There is no quorum requirement, and nominees who receive the most

votes are elected. Any shareholder at the meeting may place nominations before the

meeting. A member of the corporate assembly (other than a member elected by

employees) may be removed by the shareholders at any time without cause.

We have a nomination committee that makes recommendations to the general

meeting regarding the election of shareholder-elected members of the corporate

assembly and their deputies. The committee consists of four members who must be

shareholders or representatives of shareholders and who must be independent of

the board of directors and the company’s management. The members of the

nomination committee, including the chair, are elected by the annual general

meeting. The chair of the committee and one other member are elected among the

shareholder-elected members of the corporate assembly. Each member is elected

for a two-year term. 

Our articles of association provide that the board of directors consists of 9 to 11

directors. Our directors are elected by our corporate assembly to the board of

directors for a period of up to two years and may also be removed from office by our

corporate assembly. If requested by at least one third of the members of the

corporate assembly, up to one-third of the directors must be employee

representatives. Our nomination committee makes recommendations to the

corporate assembly regarding the election of shareholder-elected directors of the

board and their deputies (if any). Half of the corporate assembly members elected by

the employees may demand that the members of the board of directors be elected

by the shareholder-elected members of the corporate assembly and the employee-

elected members of the corporate assembly, each voting as a separate group. A

director (other than a director elected directly by the employee members) may be

removed at any time by the corporate assembly without cause.

The corporate assembly makes decisions by majority vote, and more than half must

be present for a quorum. If votes are tied, the chair of the meeting casts the deciding

vote.

Payment of Dividends

We announce dividends on a quarterly basis. The board of directors approves first to

third quarter interim dividends based on an authorisation from the general meeting,

while the annual general meeting approves the fourth quarter (and total annual)

dividend based on a proposal from the board. When deciding the interim dividends

and recommending the total annual dividend level, the board of directors will take

into consideration expected cash flow, capital expenditure plans, financing

requirements and appropriate financial flexibility. 

In addition to cash dividends, Equinor might buy back shares as part of the

distribution of capital to the shareholders.

The shareholders at the annual general meeting may vote to reduce, but may not

increase, the dividend proposed by the board of directors. Equinor announces

dividend payments in connection with quarterly results. Payment of quarterly

dividends is expected to take place approximately four months after the

announcement of each quarterly dividend.

Equinor declares dividends in USD. Dividends in NOK per share will be calculated

and communicated four business days after the dividend record date for

shareholders at Oslo Børs.

Rights of Redemption and Repurchase of Shares

Our articles of association do not authorise the redemption of shares. In the absence

of authorisation, the redemption of shares may still be decided by a general meeting

of shareholders by a two-thirds majority under certain conditions. However, the share

redemption would, for all practical purposes, depend on the consent of all

shareholders whose shares are redeemed.

A Norwegian company may purchase its own shares if an authorisation to do so has

been given by a general meeting with the approval of at least two-thirds of the

aggregate number of votes cast as well as twothirds of the share capital represented

at the meeting. The aggregate par value of treasury shares held by the company

must not exceed 10% of the company’s share capital and treasury shares may only

be acquired if the company’s distributable equity, according to the latest adopted

balance sheet, exceeds the consideration to be paid for the shares. The

authorisation by the general meeting cannot be given for a period exceeding two

years. See “Authorisation to Acquire Our Own Shares” above.

Shareholders’ Votes on Certain Reorganizations

A decision to merge with another company or to demerge requires a resolution of our

shareholders at a general meeting passed by a two-thirds majority of the aggregate

votes cast as well as two-thirds of the aggregate share capital represented at the

general meeting. A merger plan or demerger plan signed by the board of directors

along with certain other required documentation must be made available to the

shareholders on the company’s website at least one month prior to the shareholders’

meeting. 

Material Agreements 

The general meeting must approve any material agreement between Equinor and a

related party. A material agreement comprises agreements under which the fair

value of the company’s obligations exceed 2.5% of Equinor’s total equity and

liabilities, as presented on its last approved annual financial statement. In voting on

whether to grant such approval, voting rights cannot be exercised in respect of

shares held by the related party or by another enterprise in the same company

group. The general meeting’s approval is not required for agreements concluded

with a wholly owned subsidiary or in the ordinary course of business entered into on

customary business terms and principles. Additional exceptions follow from the

Norwegian Public Limited Liability Companies Act. 

Liability of Directors

Our directors, the Chief Executive Officer and the members of the corporate

assembly owe a fiduciary duty to the company and its shareholders. Their fiduciary

duty requires that they act in our best interests when exercising their functions and

exercise a general duty of loyalty and care toward us. Their principal task is to

safeguard the interests of the company.

Our directors, the Chief Executive Officer and the members of the corporate

assembly can each be held liable for any damage they negligently or wilfully cause

us. Norwegian law permits the general meeting to exempt any such person from

liability, but the exemption is not binding if substantially correct and complete

information was not provided at the general meeting when the decision was taken. If

a resolution to grant such exemption from liability or to not pursue claims against

such a person has been passed by a general meeting with a smaller majority than

that required to amend our articles of association, shareholders representing more

than 10% of the share capital or (if there are more than 100 shareholders) more than

10% of the number of shareholders may pursue the claim on our behalf and in our

name. The cost of any such action is not our responsibility, but can be recovered by

any proceeds we receive as a result of the action. If the decision to grant exemption

from liability or to not pursue claims is made by such a majority as is necessary to

amend the articles of association, the minority shareholders cannot pursue the claim

in our name.

Indemnification of Directors and Officers

Neither Norwegian law nor our articles of association contain any provision

concerning indemnification by us of our board of directors. 

Distribution of Assets on Liquidation

Under Norwegian law, a company may be wound-up by a resolution of the

company’s shareholders in a general meeting passed by both a two-thirds majority of

the aggregate votes cast and two-thirds of the aggregate share capital represented

at the meeting. The shares rank equal in the event of a return on capital by the

company upon a winding-up or otherwise.

Exchange Controls and Other Limitations Affecting Shareholders of a

Norwegian Company

Under the Norwegian foreign exchange control law, transfers of capital to and from

Norway are not subject to prior government approval. An exception applies to the

physical transfer of payments in currency exceeding certain thresholds, which must

be declared to the Norwegian custom authorities. This means that non-Norwegian

resident shareholders may receive dividend payments without Norwegian exchange

control consent as long as the payment is made through an institution licensed to

provide payment services. Transferring banks are required to submit reports on

foreign currency exchange transactions into and out of Norway into a central data

register maintained by the Norwegian tax authorities. The Norwegian police, tax

authorities, customs and excise authorities, the Labour and Welfare Administration

and the Norwegian FSA have electronic access to the data in this register, and

certain other entities also have access such as the Norwegian central bank, the

Norwegian Ministry of Foreign Affairs and trustees in bankruptcy estates.

There are no restrictions affecting the rights of non-Norwegian residents or foreign

owners to hold or vote for our shares.

AMERICAN DEPOSITARY SHARES

This section summarizes certain material provisions of the Amended and Restated

Deposit Agreement, dated as of 4 February 2019, among Equinor ASA, JPMorgan

Chase Bank, N.A., as depositary, and the holders from time to time of American

Depositary Receipts (“ADRs”). We refer to this agreement as the “deposit

agreement.” We do not, however, describe every aspect of the deposit agreement,

which has been filed as an exhibit to our registration statement on Form F-6, filed on

13 October 2022. You should read the deposit agreement for a more detailed

description of the terms of the ADRs. Additional copies of the deposit agreement are

available for inspection at the principal office of the depositary in New York, which is

presently located at 383 Madison Avenue, Floor 11, New Yo rk, New York, 10179.

American Depositary Receipts

The depositary issued ADRs evidencing American depositary shares pursuant to the

deposit agreement. Each ADS represents one ordinary share. Only persons in

whose names ADRs are registered on the books of the depositary will be treated by

the depositary and us as holders of ADRs. Unless certificated ADRs are specifically

requested by you, all ADSs will be issued on the books of our depositary in book-

entry form and periodic statements will be mailed to you which reflect your ownership

interest in such ADSs. In our description, references to American depositary receipts

or ADRs shall include the statements you will receive which reflect your ownership of

ADSs.

You may hold ADSs either directly or indirectly through your broker or other financial

institution. If you hold ADSs directly, by having an ADS registered in your name on

the books of the depositary, you are an ADR holder. This description assumes you

hold your ADSs directly. If you hold the ADSs through your broker or financial

institution nominee, you must rely on the procedures of such broker or financial

institution to assert the rights of an ADR holder described herein. You should consult

with your broker or financial institution to find out what those procedures are.

Pursuant to the terms of the deposit agreement, registered holders of ADRs and all

persons holding any interest in ADRs and/or ADSs will be subject to any applicable

disclosure requirements regarding acquisition and ownership of, or interests in,

ordinary shares as are applicable pursuant to the terms of our articles of association

or other provisions of or governing the ordinary shares. In order to enforce such

disclosure requirements, we reserve the right to instruct ADR holders to deliver their

ADSs for cancellation and withdrawal of the deposited securities so as to permit us

to deal directly with the holder thereof as a holder of ordinary shares, and, by being a

holder of an ADR, ADR holders are contractually agreeing to comply with such

instructions. The depositary has agreed, subject to the terms and conditions of the

deposit agreement, to cooperate with Equinor in its efforts to inform ADR holders of

any exercise by us of our rights to instruct ADR holders to deliver their ADSs for

cancellation, and to consult with and provide us with reasonable assistance without

risk, liability or expense on the part of the depositary, on the manner or manners in

which we may enforce such rights with respect to any ADR holder.

The depositary will keep, at its transfer office, (i) a register for the registration,

registration of transfer, combination and split-up of ADRs, which at all reasonable

times will be open for inspection by holders of ADRs and us for the purpose of

communicating with holders in the interest of our business or a matter relating to the

deposit agreement and (ii) facilities for the delivery and receipt of ADRs.

Deposit, Transfer and Withdrawal

The depositary has agreed that upon delivery of our ordinary shares (or rights to

receive our ordinary shares from us or any registrar, transfer agent, clearing agency

or other entity recording ordinary share ownership or transactions for us) to their

custodian, which is currently Nordea Bank ABP, filial i Norge, and in accordance with

the procedures set forth in the deposit agreement, the depositary will issue ADRs for

delivery at its designated transfer office.

Upon surrender at the office of the depositary of an ADR for the purpose of

withdrawal of the deposited securities represented by the ADSs evidenced by such

ADR, and upon payment of the fees, governmental charges and taxes provided in

the deposit agreement, and subject to the terms and conditions of the deposit

agreement, the holder of such ADR will be entitled to delivery to such holder or upon

such holder’s order, as permitted by applicable law, of the amount of deposited

securities at the time represented by the ADS evidenced by such ADR. The

custodian will ordinarily deliver such deposited securities at or from its office. The

forwarding of deposited securities for delivery at any other place specified by the

holder will be at the risk and expense of the holder.

Dividends, Other Distributions and Rights

To the extent practicable, the depositary will distribute to you, in proportion to the

number of ADSs you hold, any U.S. dollars available to the depositary resulting from

a cash dividend or other cash distribution or the net proceeds of sales of any other

distribution that it receives in respect of the deposited securities. Such a distribution

will be subject to (i) appropriate adjustments for taxes withheld, (ii) the

impermissibility or impracticability of such distribution with respect to certain holders

and (iii) the deduction of the depositary and/or its agents’ fees and expenses in (1)

converting any foreign currency to U.S. dollars by sale or in such other manner as

the depositary may determine, to the extent that it determines that such conversion

may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars

to the United States by such means as the depositary may determine, to the extent

that it determines that such transfer may be made on a reasonable basis, (3)

obtaining any approval or license of any governmental authority required for such

conversion or transfer, which is obtainable at a reasonable cost and within a

reasonable time and (4) making any sale by public or private means in any

commercially reasonable manner. To the extent that the depositary determines in its

discretion that any distribution under the terms of the deposit agreement is not

practicable with respect to any holder, the depositary may make such distribution as

it so deems practicable, including the distribution of foreign currency, securities or

property (or appropriate documents evidencing the right to receive foreign currency,

securities or property) or the retention thereof as deposited securities with respect to

such holder’s ADRs (without liability for interest thereon or the investment thereof).

See “Ordinary Shares—Payment of Dividends” above.

If any distribution on deposited securities consists of a dividend in, or free distribution

of, ordinary shares, the depositary will, to the extent practicable, distribute to you, in

proportion to the number of ADSs you hold, additional ADRs evidencing an

aggregate number of ADSs that represents the amount of ordinary shares received

as such dividend or free distribution. In lieu of delivering ADRs for fractional ADSs in

the event of any such dividend or free distribution, the depositary shall sell the

number of ordinary shares represented by the aggregate of such fractions and

distribute the net proceeds to holders entitled thereto.

If we offer or cause to be offered to holders of deposited securities any rights to

subscribe for additional shares or rights of any nature, the depositary will to the

extent practicable distribute warrants or other instruments, in its discretion,

representing rights to acquire additional ADRs in respect of any rights that have

been made available to the depositary as a result of a distribution on deposited

securities, to the extent that we timely furnish to the depositary evidence satisfactory

to the depositary that the depositary may lawfully distribute the same. We have no

obligation to furnish such evidence, and to the extent that we do not furnish such

evidence and the sales of rights are practicable, the depositary will distribute any

U.S. dollars available to the depositary from the net proceeds of sales of rights, as in

the case of cash, or, to the extent that we do not furnish such evidence and such

sales cannot practicably be accomplished by reason of the non-transferability of the

rights, limited markets therefor, their short duration, or otherwise, the depositary will

distribute nothing (and any rights may lapse).

The depositary will not offer rights to holders having an address in the U.S. unless

both the rights and the securities to which such rights relate are either exempt from

registration under the Securities Act of 1933, as amended (the “Securities Act”) with

respect to a distribution to all holders or are registered under the provisions of the

Securities Act. Notwithstanding any terms of the deposit agreement to the contrary,

we shall have no obligation to prepare and file a registration statement in respect of

any such rights.

Whenever the depositary shall receive any distribution other than cash, ordinary

shares or rights in respect of the deposited securities, the depositary will to the

extent practicable distribute securities or property available to the depositary

resulting from such distribution to the holders entitled thereto by any means that the

depositary may deem equitable and practicable, or, to the extent that the depositary

deems distribution of such securities or property to not be equitable and practicable,

any U.S. dollars available to the depositary from the net proceeds of sales of such

securities or property, as in the case of cash.

Whenever we intend to distribute a dividend payable at the election of the holders of

ordinary shares in cash or in additional shares, we shall give notice thereof to the

depositary at least 30 days prior to the proposed distribution stating whether or not

we wish such elective distribution to be made available to ADR holders. Upon receipt

of notice indicating that we wish such elective distribution to be made available to

ADR holders, the depositary shall consult with us to determine, and we shall assist

the depositary in its determination, whether it is lawful and reasonably practicable to

make such elective distribution available to the ADR holders. The depositary shall

make such elective distribution available to ADR holders only if (i) we shall have

timely requested that the elective distribution is available to ADR holders, (ii) the

depositary shall have determined that such distribution is reasonably practicable and

(iii) the depositary shall have received satisfactory documentation within the terms of

the deposit agreement including, without limitation, any legal opinions of counsel in

any applicable jurisdiction that the depositary in its reasonable discretion may

request, at our expense. If the above conditions are not satisfied, the depositary

shall, to the extent permitted by law, distribute to the ADR holders, on the basis of

the same determination as is made in the local market in respect of the ordinary

shares for which no election is made, either (x) cash or (y) additional ADSs

representing such additional ordinary shares. If the above conditions are satisfied,

the depositary shall establish a record date and establish procedures to enable ADR

holders to elect the receipt of the proposed dividend in cash or in additional ADSs.

We shall assist the depositary in establishing such procedures to the extent

necessary. Nothing herein shall obligate the depositary to make available to ADR

holders a method to receive the elective dividend in ordinary shares (rather than

ADSs). There can be no assurance that ADR holders generally, or any holder in

particular, will be given the opportunity to receive elective distributions on the same

terms and conditions as the holders of ordinary shares.

If the depositary determines that any distribution of property other than cash

(including ordinary shares or rights) on deposited securities is subject to any tax

which the depositary or the custodian is obligated to withhold, the depositary may

dispose of all or a portion of such property in such amounts and in such manner as

the depositary deems necessary and practicable to pay such taxes, by public or

private sale, and the depositary will distribute the net proceeds of any such sale or

the balance of any such property after deduction of such taxes to the holders entitled

thereto.

Changes Affecting Deposited Securities

Pursuant to the terms of the deposit agreement, the depositary may, in its discretion,

and will if we so reasonably request, amend the ADRs or distribute additional or

amended ADRs (with or without calling for the exchange of any ADRs) or cash,

securities or property on the record date set by the depositary therefor to reflect any

change in par value, split-up, consolidation, cancellation or other reclassification of

deposited securities, any share distribution or any distribution other than cash,

ordinary shares or rights, which in each case is not distributed to holders or any

cash, securities or property available to the depositary in respect of the deposited

securities from (and the depositary is authorised to surrender any deposited

securities to any person and, irrespective of whether such deposited securities are

surrendered or otherwise cancelled by operation of law, rule, regulation or otherwise,

to sell by public or private sale any property received in connection with) any

recapitalization, reorganization, merger, consolidation, liquidation, receivership,

bankruptcy or sale of all or substantially all of our assets, and to the extent that the

depositary does not so amend the ADRs or make a distribution to holders to reflect

any of the foregoing, or the net proceeds thereof, whatever cash, securities or

property results from any of the foregoing shall constitute deposited securities and

each ADS evidenced by an ADR shall automatically represent its pro rata interest in

the deposited securities as then constituted. Promptly upon the occurrence of any of

the aforementioned changes affecting deposited securities, we shall notify the

depositary in writing of such occurrence and as soon as practicable after receipt of

such notice, may instruct the depositary to give notice thereof, at our expense, to

holders in accordance with the provisions of the deposit agreement. Upon receipt of

such instruction, the depositary shall give notice to the holders in accordance with

the terms of the deposit agreement, as soon as reasonably practicable.

Record Dates

The depositary may, after consultation with us if practicable, fix a record date (which,

to the extent applicable, shall be as near as practicable to any corresponding record

date set by us) for the determination of the holders who shall be responsible for the

fee assessed by the depositary for administration of the ADR program and for any

expenses provided in the deposit agreement as well as for the determination of the

holders who shall be entitled to receive any distribution on or in respect of deposited

securities, to give instructions for the exercise of any voting rights, to receive any

notice or to act in respect of other matters and only such holders shall be so entitled

or obligated.

Voting of Deposited Securities

Subject to the following sentence, as soon as practicable after receipt of notice of

any meetings at which the holders of ordinary shares are entitled to vote, or of

solicitation of consents or proxies from holders of ordinary shares or other deposited

securities, the depositary shall fix the ADS record date in accordance with the

deposit agreement in respect of such meeting or solicitation of consent or proxy. The

depositary shall, if we request in writing in a timely manner (the depositary having no

obligation to take any further action if the request shall not have been received by

the depositary at least 30 days prior to the date of such vote or meeting) and at our

expense and provided no legal prohibitions exist, distribute to holders a notice

stating:

1. such information as is contained in such notice and any solicitation materials;

2. that each holder on the record date set by the depositary therefor will, subject to

any applicable provisions of Norwegian law, be entitled to instruct the depositary as

to the exercise of the voting rights, if any, pertaining to the deposited securities

represented by the ADSs evidenced by such holder’s ADRs; and

3. the manner in which such instructions may be given, including without limitation,

any requirements that ADSs be blocked for a specified period of time leading up to

and including the date of such meeting or solicitation and/or ordinary shares

represented by ADSs for which instructions are provided be registered on the books

of Equinor in the name of the instructing holder.

Upon actual receipt by the ADR department of the depositary of instructions of a

holder on such record date in the manner and on or before the time established by

the depositary for such purpose and timely compliance by the ADR holder with any

requirements notified by the depositary, the depositary shall endeavor, insofar as

practicable and permitted under the provisions of, or governing, deposited securities,

to vote or cause to be voted the deposited securities represented by such holder’s

ADRs in accordance with such instructions. The depositary will not itself exercise

any voting discretion in respect of any deposited securities. There is no guarantee

that holders generally or any holder in particular will receive the notice described

above with sufficient time to comply with the voting requirements set forth in the

notice referenced above or to enable such holder to return any voting instructions to

the depositary in a timely manner. 

Notwithstanding anything contained in the deposit agreement or any ADR, the

depositary may, to the extent not prohibited by law or regulations, or by the

requirements of the stock exchange on which the ADSs are listed, in lieu of

distribution of the materials provided to the depositary in connection with any

meeting of, or solicitation of consents or proxies from, holders of deposited

securities, distribute to holders of ADRs a notice that provides such holders with, or

otherwise publicizes to such holders, instructions on how to retrieve such materials

or receive such materials upon request (i.e., by reference to a website containing the

materials for retrieval or a contact for requesting copies of the materials).

ADR holders are strongly encouraged to forward their voting instructions as soon as

possible. Voting instructions will not be deemed received until such time as the ADR

department responsible for proxies and voting has received such instructions

notwithstanding that such instructions may have been physically received by the

depositary prior to such time. 

The depositary and its agents may rely and shall be protected in acting upon the

opinion(s) of our counsels with respect to all matters relating to voting under

Norwegian Law, rule and/or regulation.

Reports and Other Communications

We have delivered to the depositary, the custodian and any transfer office, on the

SEC’s website, or upon request from the depositary (which request may be refused

by the depositary at its discretion), a copy of all provisions of or governing the

ordinary shares and any other deposited securities issued by us or any of our

affiliates and, promptly upon any change thereto, we will deliver to the depositary,

the custodian and any transfer office, a copy (in English or with an English

translation) of such provisions as so changed.

Amendment and Termination of the Deposit Agreement

Subject to the provisions of the deposit agreement, the ADRs and the deposit

agreement may at any time be amended by us and the depositary without your

consent; provided that any amendment that imposes or increases any fees or

charges (other than stock transfer or other taxes and other governmental charges,

transfer or registration fees, SWIFT, cable, telex or facsimile transmission costs,

delivery costs or other such expenses), or which otherwise prejudices any

substantial existing right of yours, will take effect 30 days after notice of any such

amendment has been given to ADR holders. Every holder of an ADR at the time any

amendment to the deposit agreement so becomes effective will be deemed by

continuing to hold such ADRs to consent and agree to such amendment and to be

bound by the deposit agreement as amended thereby. In no event may any

amendment impair the right of any holder of ADRs to surrender such ADRs and

receive the deposited securities represented thereby, except in order to comply with

mandatory provisions of applicable law.

Any amendments or supplements which (i) are reasonably necessary (as agreed by

us and the depositary) in order for (a) the ADSs to be registered under the Securities

Act or (b) the ADSs or our ordinary shares to be traded solely in electronic book-

entry form and (ii) do not in either such case impose or increase any fees or charges

to be borne by holders of ADRs, shall be deemed not to prejudice any substantial

rights of such holders. Notwithstanding the foregoing, if any governmental body or

regulatory body should adopt new laws, rules or regulations which would require

amendment or supplement of the deposit agreement or the form of ADR to ensure

compliance therewith, we and the depositary may amend or supplement the deposit

agreement and the form of ADR at any time in accordance with such changed laws,

rules or regulations. Such amendment or supplement to the deposit agreement in

such circumstances may become effective before a notice of such amendment or

supplement is given to holders of ADRs or within any other period of time as required

for compliance. Notice of any amendment to the deposit agreement or form of ADR

shall not need to describe in detail the specific amendments effectuated thereby, and

failure to describe the specific amendments in any such notice shall not render such

notice invalid, provided, however, that, in each such case, the notice given to the

holders identifies a means for holders to retrieve or receive the text of such

amendment (i.e., upon retrieval from the SEC’s, the depositary’s or our website or

upon request from the depositary).

The depositary may, and shall at our written direction, terminate the deposit

agreement and the ADRs by mailing notice of such termination to the ADR holders at

least 30 days prior to the date fixed in such notice for such termination; provided,

however, if the depositary shall have (i) resigned as depositary, notice of such

termination by the depositary shall not be provided to ADR holders unless a

successor depositary shall not be operating under the deposit agreement within 60

days of the date of such resignation, or (ii) been removed as depositary, notice of

such termination by the depositary shall not be provided to ADR holders unless a

successor depositary shall not be operating under the deposit agreement on the 60th

day after our notice of removal was first provided to the depositary. Notwithstanding

anything to the contrary set forth in the deposit agreement, the depositary may

terminate the deposit agreement without notice to us, but subject to giving 30 days’

notice to the ADR holders, under the following circumstances: (i) in the event of the

our bankruptcy or insolvency, (ii) if the ordinary shares cease to be listed on an

internationally recognized stock exchange, (iii) if we effect (or will effect) a

redemption of all or substantially all of the deposited securities, or a cash or share

distribution representing a return of all or substantially all of the value of the

deposited securities, or (iv) there occurs a merger, consolidation, sale of assets or

other transaction as a result of which securities or other property are delivered in

exchange for or in lieu of deposited securities.

After the date so fixed for termination, the depositary and its agents will perform no

further acts under the deposit agreement and the ADRs, except to receive and hold

(or sell) distributions on deposited securities and deliver deposited securities being

withdrawn. As soon as practicable after the date so fixed for termination, the

depositary shall use its reasonable efforts to sell the deposited securities and shall

thereafter (as long as it may lawfully do so) hold in an account (which may be

segregated or unsegregated account) the net proceeds of such sales, together with

any other cash then held by it under the deposit agreement, without liability for

interest, in trust for the pro rata benefit of the holders of ADRs not theretofore

surrendered. After making such sale, the depositary shall be discharged from all

obligations in respect of the deposit agreement and the ADRs, except to account for

such net proceeds and other cash. After the date so fixed for termination, we shall be

discharged from all obligations under the deposit agreement except for our

obligations to the depositary and its agents.

In the event that the depositary resigns, is removed or is otherwise substituted, and a

successor thereto is appointed, the successor depositary will promptly mail you

notice of such appointment.

Liability of Holder for Taxes

If any tax or other governmental charges (including any penalties and/or interest)

become payable by the custodian or the depositary with respect to any ADR, any

deposited securities represented by the ADSs evidenced thereby or any distribution

thereon, such tax or other governmental charge will be paid by the holder thereof to

the depositary and by holding or having held an ADR the holder and all prior holders,

jointly and severally, agree to indemnify, defend and hold harmless each of the

depositary and its agents in respect thereof. The depositary may refuse to effect any

registration, registration of transfer or any split-up or combination of such ADR or any

withdrawal of deposited securities underlying such ADR until such payment is made.

The depositary may also deduct from any dividends or other distributions or may sell

by public or private sale for your account any part or all of the deposited securities

underlying such ADR and may apply such dividends, distributions or the proceeds of

any such sale to pay any such tax or other governmental charges, and the holder of

such ADR shall remain liable for any deficiency, and the depositary shall reduce the

number of ADSs evidenced thereby to reflect any such sales of shares. In

connection with any distribution to holders, we will remit to the appropriate

governmental authority or agency all amounts (if any) required to be withheld and

owing to such authority or agency by us; and the depositary and the custodian will

remit to the appropriate governmental authority or agency all amounts (if any)

required to be withheld and owing to such authority or agency by the depositary or

the custodian. If the depositary determines that any distribution in property other than

cash (including shares or rights) on deposited securities is subject to any tax that the

depositary or the custodian is obligated to withhold, the depositary may dispose of all

or a portion of such property in such amounts and in such manner as the depositary

deems necessary and practicable to pay such taxes, by public or private sale, and

the depositary shall distribute the net proceeds of any such sale or the balance of

any such property after deduction of such taxes to the holders entitled thereto. Each

holder of an ADR or an interest therein agrees to indemnify the depositary, us, the

custodian and any of their respective officers, directors, employees, agents and

affiliates against, and hold each of them harmless from, any claims by any

governmental authority with respect to taxes, additions to tax, penalties or interest

arising out of any refund of taxes, reduced rate of withholding at source or other tax

benefit obtained, which obligations shall survive any transfer or surrender of ADSs or

the termination of the deposit agreement.

Transfer of American Depositary Receipts

The ADRs are transferable on the books of the depositary,

provided

 that the

depositary may close the transfer books or any portion thereof at any time or from

time to time when deemed expedient by it, and may also close the issuance book

portion of the transfer books when reasonably requested by us solely in order to

enable us to comply with applicable law. As a condition precedent to the issue,

registration, registration of transfer, split-up or combination of any ADR, the delivery

of any distribution thereon, or withdrawal of any deposited securities, the depositary,

we or the custodian may require (i) payment of a sum sufficient to reimburse it for

any tax or other governmental charge and any stock transfer or registration fee with

respect thereto (including any such tax or charge and fee with respect to ordinary

shares being deposited or withdrawn) and payment of any applicable fees payable

by the holders of ADRs under the deposit agreement, (ii) proof of the identity of any

signatory and genuineness of any signature, (iii) information as to citizenship or

residence, exchange control approval, beneficial ownership of any securities,

compliance with applicable law, regulations, provisions of or governing the deposited

securities and terms of the deposit agreement and the ADR or other information as it

may deem necessary or proper, and (iv) compliance with such regulations as the

depositary may establish consistent with the deposit agreement. The issuance,

transfer, combination or split-up of ADRs or the withdrawal of deposited securities

may be suspended, generally or in particular instances, during any period when the

transfer books of the depositary or the books of Equinor or its agent for the

registration and transfer of ordinary shares are closed or if any such action is

deemed advisable by the depositary.

Limitations on Liability

Neither the depositary nor we nor any of our respective directors, officers,

employees, agents or affiliates will be liable to you if by reason of any provision of

any present or future law, rule, regulation, fiat, order or decree of the United States,

the Kingdom of Norway or any other country or jurisdiction, or of any other

governmental or regulatory authority or securities exchange or market or automated

quotation system, or by reason of any provision of or governing any deposited

securities or any provision of our charter, or by reason of any act of God, war,

terrorism, nationalization, expropriation, currency restrictions, work stoppage, strike,

civil unrest, revolutions, rebellions, explosions, computer failure or circumstance

beyond any such party’s direct and immediate control, the depositary, we or any of

our respective directors, employees, agents or affiliates shall be prevented or

delayed in performing, or shall be subject to any civil or criminal penalty in

connection with, any act which by the terms of the deposit agreement or the ADRs it

is provided shall be done or performed by it or them (including, without limitation,

voting pursuant to the terms of the ADRs); nor will the depositary, we or any of our

respective directors, employees, agents or affiliates incur any liability to you by

reason of any non-performance or delay, caused as aforesaid, in the performance of

any act or things which by the terms of the Deposit Agreement it is provided shall or

may be done or performed or of any exercise of, or failure to exercise, any discretion

provided for under the deposit agreement or any ADR (including, without limitation,

any failure to determine that any distribution or action may be lawful or reasonably

practicable), or for any action or inaction by it in reliance upon the advice of or

information from legal counsel, accountants, any person presenting ordinary shares

for deposit, any ADR holder, or any other person believed by it to be competent to

give such advice or information.

Neither we nor the depositary nor any of our respective directors, officers,

employees, agents or affiliates assume any obligation or be subject to any liability

except to perform its obligations to the extent they are specifically provided under the

deposit agreement or the ADRs without gross negligence or wilful misconduct. We,

the depositary and its agents and may rely and shall be protected in acting upon any

written notice, request, direction, instruction or document believed to be genuine and

to have been signed, presented or given by the proper party or parties.

The depositary and its agents have no obligation to appear in, prosecute or defend

any action, suit or other proceeding in respect of any deposited securities or the

ADRs, and we and our agents have no obligation to appear in, prosecute or defend

any action, suit or other proceeding in respect of any deposited securities or the

ADRs, which in our opinion may involve us in expense or liability, unless indemnity

satisfactory to us against all expense (including fees and disbursements of counsel)

and liability is furnished as often as may be required.

The depositary shall not be liable for the acts or omissions made by, or the

insolvency of, any securities depository, clearing agency or settlement system, and

shall not have any liability for the price received in connection with any sale of

securities, the timing thereof or any delay in action or omission to act, nor shall it be

responsible for any error or delay in action, omission to act, default or negligence on

the part of the party so retained in connection with any such sale or proposed sale.

The depositary shall be under no obligation to inform registered holders of ADRs or

any other holders of an interest in any ADSs about the requirements of the laws,

rules or regulations or any changes therein or thereto of any country or jurisdiction or

of any governmental or regulatory authority or any securities exchange or market or

automated quotation system. The depositary and its agents will not be responsible

for any failure to carry out any instructions to vote any of the Deposited Securities,

for the manner in which any such vote is cast or for the effect of any such vote. The

depositary may rely upon instructions from us or our counsel in respect of any

approval or license required for any currency conversion, transfer or distribution. The

depositary and its agents may own and deal in any class of our securities and

securities or our affiliates and in ADRs. Notwithstanding anything else contained in

the deposit agreement or any prior deposit agreement, the depositary shall have no

liability or responsibility under the deposit agreement, any ADR or any related

agreement, for any period prior to the effective date of the deposit agreement or for

any act or omission of the predecessor to the depositary or any of its agents

(including the custodian as defined in the prior deposit agreement), under or in

connection with this deposit agreement, any ADRs or any related agreement.

Notwithstanding anything to the contrary set forth in the deposit agreement or an

ADR, the depositary and its agents may fully respond to any and all demands or

requests for information maintained by or on its behalf in connection with the deposit

agreement, any ADR holder or holders, any ADR or ADRs or otherwise related

thereto to the extent such information is requested or required by or pursuant to any

lawful authority, including without limitation laws, rules, regulations, administrative or

judicial process, banking, securities or other regulators.

None of us, the depositary or the custodian shall be liable for the failure by any

registered holder or beneficial owner of ADRs to obtain the benefits of credits or

refunds of non-U.S. tax paid against such holder’s or beneficial owner’s income tax

liability. Neither we nor the depositary shall incur any liability for any tax or tax

consequences that may be incurred by registered holders or beneficial owners of

ADRs on account of their ownership or disposition of the ADRs or ADSs.

The depositary shall not incur any liability for the content of any information

submitted to it by or on our behalf for distribution to the ADR holders or for any

inaccuracy of any translation thereof, for any investment risk associated with

acquiring an interest in the deposited securities, for the validity or worth of the

deposited securities, for the credit-worthiness of any third party, for allowing any

rights to lapse upon the terms of the deposit agreement or for the failure or

timeliness of any notice from us. Notwithstanding anything set forth in the deposit

agreement to the contrary, the depositary and the custodian(s) may use third party

delivery services and providers of information regarding matters such as pricing,

proxy voting, corporate actions, class action litigation and other services in

connection herewith and the deposit agreement, and use local agents to provide

extraordinary services such as attendance at annual meetings of issuers of

securities. Although the depositary and the custodian will use reasonable care (and

cause their agents to use reasonable care) in the selection and retention of such

third party providers and local agents, they will not be responsible for any errors or

omissions made by them in providing the relevant information or services. The

depositary shall not be liable for any acts or omissions made by a successor

depositary whether in connection with a previous act or omission of the depositary or

in connection with any matter arising wholly after the removal or resignation of the

depositary, unless a liability is directly caused by the previous gross negligence or

willful misconduct of the depositary or its directors, officers, employees, agents or

affiliates acting in their capacities as such under the deposit agreement.

Neither we nor the depositary nor any of our respective agents shall be liable to

registered holders of ADRs or beneficial owners of interests in ADSs for any indirect,

special, punitive or consequential damages (including, without limitation, legal fees

and expenses) or lost profits, in each case of any form incurred by any person or

entity, whether or not foreseeable and regardless of the type of action in which such

a claim may be brought.

The depositary shall not be responsible for, and shall incur no liability in connection

with or arising from any act or omission to act on the part of the custodian except to

the extent that any holder has incurred liability directly as a result of the custodian

having (a) committed fraud or willful misconduct in the provision of custodial services

to the depositary or (b) failed to use reasonable care in the provision of custodial

services to the depositary as determined in accordance with the standards prevailing

in the jurisdiction in which the custodian is located. As long as we or one of our

affiliates is serving as the custodian with respect to the deposit agreement we shall

be solely liable for each and any act or failure to act on the part of the custodian.

No provision of the deposit agreement or any ADR is intended to constitute a waiver

or limitation of any rights which an ADR holder or any person or entity having a

beneficial ownership interest in any ADSs may have under the Securities Act or the

Securities Exchange Act of 1934, to the extent applicable.

Governing Law, Submission to Jurisdiction and Waiver of Right to Trial by

Jury

The deposit agreement is governed by and construed in accordance with the laws of

the State of New York.

We have irrevocably agreed that any legal suit, action or proceeding against us

brought by the depositary or any holder, arising out of or based upon the deposit

agreement or the transactions contemplated thereby, may be instituted in any state

or federal court in New York, New York, and irrevocably waive any objection which

we may now or hereafter have to the laying of venue of any such proceeding, and

irrevocably submit to the non-exclusive jurisdiction of such courts in any such suit,

action or proceeding. We have also irrevocably agreed that any legal suit, action or

proceeding against the depositary brought by us, arising out of or based upon the

deposit agreement or the transactions contemplated thereby, may only be instituted

in a state or federal court in New York, New York.

Each holder or beneficial owner of ADSs and each holder of interests therein, has

irrevocably agreed that any legal suit, action or proceeding against or involving us or

the depositary, arising out of or based on the deposit agreement, the ADSs, or the

transactions contemplated thereby, may only be instituted in a state or federal court

in New York, New York, and each such party has irrevocably waived any objection

which it may now or hereafter have to the laying of venue of any such proceeding,

and irrevocably submits to the exclusive jurisdiction of such courts in any such suit,

action or proceeding.

Each party to the deposit agreement, including each holder and beneficial owner

and/or holder of interests in ADRs, irrevocably waives, to the fullest extent permitted

by applicable law, any right it may have to a trial by jury in any suit, action or

proceeding against the depositary and/or us directly or indirectly arising out of or

relating to the ordinary shares or other deposited securities, the ADSs or the ADRs,

the deposit agreement or any transaction contemplated therein, or the breach

thereof, whether based on contract, tort, common law or any other theory.

Appointment

In the deposit agreement, each registered holder of ADRs and each person holding

an interest in ADSs, upon acceptance of any ADSs (or any interest therein) issued in

accordance with the terms and conditions of the deposit agreement shall be deemed

for all purposes to:

(a) be a party to and bound by the terms of the deposit agreement and the applicable

ADR(s),

(b) appoint the depositary its attorney-in-fact, with full power to delegate, to act on its

behalf and to take any and all actions contemplated in the deposit agreement and

the applicable ADR(s), to adopt any and all procedures necessary to comply with

applicable law and to take such action as the depositary in its sole discretion may

deem necessary or appropriate to carry out the purposes of the deposit agreement

and the applicable ADR(s), the taking of such actions to be the conclusive

determinant of the necessity and appropriateness thereof,

(c) acknowledge and agree that (i) nothing in the deposit agreement or any ADR

shall give rise to a partnership or joint venture among the parties thereto nor

establish a fiduciary or similar relationship among such parties, (ii) the depositary, its

divisions, branches and affiliates, and their respective agents, may from time to time

be in the possession of non-public information about Equinor, ADR holders, owners

of ADSs and/or their respective affiliates, (iii) the depositary and its divisions,

branches and affiliates may at any time have multiple banking relationships with

Equinor, ADR holders, owners of ADSs and/or the affiliates of any of them, (iv) the

depositary and its divisions, branches and affiliates may, from time to time, be

engaged in transactions in which parties adverse to Equinor or the Holders or

owners of ADSs may have interests, (v) nothing contained in the Deposit Agreement

or any ADR(s) shall (A) preclude the Depositary or any of its divisions, branches or

affiliates from engaging in such transactions or establishing or maintaining such

relationships, or (B) obligate the Depositary or any of its divisions, branches or

affiliates to disclose such transactions or relationships or to account for any profit

made or payment received in such transactions or relationships, and (vi) the

Depositary shall not be deemed to have knowledge of any information held by any

branch, division or affiliate of the Depositary.

EX-2

AMENDED AND RESTATED AGENCY AGREEMENT

11 MAY 2023

EQUINOR ASA

as

Issuer

and

EQUINOR ENERGY AS

as Guarantor

THE BANK OF NEW YORK MELLON, LONDON BRANCH

as

Agent

and

THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH

as Paying Agent

in respect of a

€20,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

Allen & Overy LLP

0010155-0003437 UKO2: 2005996996.8

CONTENTS

Clause Page

1.

 Definitions and Interpretation ................................ ................................ ............................... 4

2.

 Appointment of Agent and Paying Agents ................................ ................................ .......... 10

3.

 Issue of Temporary Global Notes ................................................................ ......................

11

4.

 Determination of Exchange Date and Issue of Permanent Global Notes and Definitive Notes

 ................................ ................................ ................................ ................................ .......... 12

5.

 Issue of Definitive Notes ................................ ................................ ................................ .... 12

6.

 Terms of Issue ................................ ................................ ................................ ................... 13

7.

 Payments ................................ ................................ ................................ .......................... 14

8.

 Determinations and Notifications in respect of Notes and Interest Determination ............... 15

9.

 Notice of any Withholding or Deduction ................................ ................................ ............. 16

10.

 Duties of the Agent in Connection with early Redemption ................................ .................. 16

11.

 Receipt and Publication of Notices ................................ ................................ .................... 17

12.

 Cancellation of Notes, Coupons and Talons ................................ ................................ ...... 17

13.

 Issue of Replacement Notes, Coupons and Talons ................................ ........................... 18

14.

 Copies of Documents Available for Inspection or Collection ................................ ............... 19

15.

 Meetings of Noteholders ................................ ................................ ................................ .... 19

16.

 Commissions, Expenses and Review of Fees and Expenses ................................ ............ 20

17.

 Indemnity................................ ................................ ................................ ........................... 20

18.

 Repayment by the Agent ................................ ................................ ................................ ... 21

19.

 Conditions of Appointment ................................................................ ................................ 21

20.

 Release of the Guarantor ................................ ................................ ................................ ... 22

21.

 Communication between the Parties ................................ ................................ ................. 22

22.

 Changes in Agent and other Paying Agents ................................ ................................ ....... 22

23.

 Merger and Consolidation ................................................................ ................................ . 24

24.

 Notification of Changes to Paying Agents ................................ ................................ .......... 24

25.

 Change of Specified Office ................................ ................................ ................................ 25

26.

 Notices and Communication ................................ ................................ .............................. 25

27.

 Taxes and Stamp Duties ................................ ................................ ................................ ... 26

28.

 Currency Indemnity ................................ ................................ ................................ ............ 26

29.

 Amendments ................................ ................................ ................................ ..................... 26

30.

 Descriptive Headings ................................ ................................ ................................ ......... 26

31.

 Contract (Rights of Third Parties) Act 1999 ................................ ................................ ....... 26

32.

 Governing Law and Submission to Jurisdiction ................................ ................................ .. 26

33.

 Counterparts ................................ ................................ ................................ ..................... 27

34.

 General ................................................................ ................................ ............................. 27

35.

 EU Contractual Recognition of Bail-in ................................ ................................ ................ 27

Schedule Page

1.

 Terms and Conditions of the Notes other than VPS Notes ................................ .................. 29

2.

 Forms of Global and Definitive Notes, Coupons and Talons ................................ ............... 79

Part 1 Form of Temporary Global Note ................................ ................................ ........ 79

Part 2 Form of Permanent Global Note ................................ ................................ ........ 87

Part 3 Form of Definitive Note ................................ ................................ ...................... 95

Part 4 Form of Coupon ................................ ................................ ................................ 98

Part 5 Form of Talon ................................ ................................ ................................ .... 99

3.

 Form of Deed of Covenant ................................ ................................ ................................ 101

4.

 Provisions for Meetings of Noteholders ................................ ................................ ............. 104

5.

 Form of Put Notice ................................ ................................ ................................ ............ 110

6.

 Form of Deed Poll ................................ ................................ ................................ ............. 112

7.

 Form of Issuer – ICSDs Agreement ................................ ................................ .................. 118

8.

 Additional Duties of the Agent ................................ ................................ ........................... 122

Signatories ................................ ................................ ................................ ................................ ... 123

Appendix

1.

 Form of Calculation Agency Agreement ................................ ................................ ............ 125

4

AMENDED AND RESTATED AGENCY AGREEMENT

in respect of a

€20,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

THIS AGREEMENT

is made on

11

May 2023

BETWEEN

:

(1)

EQUINOR ASA

of Forusbeen 50, N-4035 Stavanger, Norway in its capacity as an issuer of

Notes under the Programme (the

Issuer

);

(2)

EQUINOR ENERGY AS

of Forusbeen 50, N-4035 Stavanger, Norway (the

Guarantor

);

(3)

THE BANK OF NEW YORK MELLON, LONDON BRANCH

of 160 Queen Victoria Street,

London EC4V 4LA, United Kingdom (the

Agent

, which expression shall include any

successor agent appointed in accordance with clause 22); and

(4)

THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH

of Vertigo

Building - Polaris, 2-4 rue, Eugène Ruppert, L-2453 Luxembourg (together with the Agent,

the

Paying Agents

, which expression shall include any additional or successor paying

agent appointed in accordance with clause 22 and

Paying Agent

shall mean any of the

Paying Agents).

WHEREAS

:

(A)

 The parties hereto entered into an amended and restated Agency Agreement (the

Previous Agency Agreement

) dated 9 May 2022 in respect of a €20,000,000,000 Euro

Medium Term Note Programme (the

Programme

).

(B)

 The parties hereto wish to make certain modifications to the Previous Agency Agreement.

(C)

 The Issuer and the Guarantor have entered into an amended and restated programme

agreement (as modified and/or restated and/or supplemented from time to time, the

Programme Agreement

) dated 11 May 2023 with the Dealers named therein pursuant to

which the Issuer may issue Euro Medium Term Notes (the

Notes

) in an aggregate nominal

amount of up to €20,000,000,000 (or its equivalent in other currencies) under the

Programme.

(D)

 Each issue of Notes (other than VPS Notes) will be initially represented by a temporary

global Note exchangeable in whole or in part for definitive Notes or for a permanent global

Note which will be exchangeable as described therein for definitive Notes.

IT IS HEREBY AGREED

as follows:

1.

 DEFINITIONS AND INTERPRETATION

1.1

 Terms and expressions defined in the Programme Agreement or the Notes or used in the

applicable Final Terms shall have the same meanings in this Agreement, except where the

context requires otherwise or unless otherwise stated.

0010155-0003437 UKO2: 2005996996.8

5

1.2

 Without prejudice to the foregoing:

Authorised Person

means any person who is designated in writing by the Issuer from time

to time to give Instructions to the Agent under the terms of this Agreement;

CGN

means a Temporary Global Note in the form set out in Part 1 of Schedule 2 or a

Permanent Global Note in the form set out in Part 2 of Schedule 2, in either case where the

applicable Final Terms specify that the Notes are not in New Global Note form;

Clearstream, Luxembourg

means Clearstream Banking S.A.;

Code

means the U.S. Internal Revenue Code of 1986, as amended;

Conditions

means, in relation to the Notes of any Series, the terms and conditions

endorsed on or incorporated by reference into the Note or Notes constituting such Series,

such terms and conditions being in or substantially in the form set out in Schedule 1 or in

such other form, having regard to the terms of the Notes of the relevant Series, as may be

agreed between the Issuer, the Agent and the relevant Dealer as completed by the Final

Terms applicable to the Notes of the relevant Series;

Coupon

means an interest coupon appertaining to a Definitive Note (other than a Zero

Coupon Note), such coupon being:

(a)

 if appertaining to a Fixed Rate Note, in the form or substantially in the form set out

in Part 4A of Schedule 2 or in such other form, having regard to the terms of issue

of the Notes of the relevant Series, as may be agreed between the Issuer, the Agent

and the relevant Dealer; or

(b)

 if appertaining to a Floating Rate Note, in the form or substantially in the form set

out in Part 4B of Schedule 2 or in such other form, having regard to the terms of

issue of the Notes of the relevant Series, as may be agreed between the Issuer, the

Agent and the relevant Dealer; or

(c)

 if appertaining to a Definitive Note which is neither a Fixed Rate Note nor a Floating

Rate Note, in such form as may be agreed between the Issuer, the Agent and the

relevant Dealer,

and includes, where applicable, the Talon(s) appertaining thereto and any replacements for

Coupons and Talons issued pursuant to Condition 9;

Couponholders

means the several persons who are for the time being holders of the

Coupons and shall, unless the context otherwise requires, include the holders of the

Talons;

Deed of Covenant

means the deed of covenant, as modified and/or restated and/or

supplemented from time to time, dated 13 May 2020, substantially in the form set out in

Schedule 3, executed as a deed by the Issuer in favour of certain accountholders with

Euroclear and Clearstream, Luxembourg;

Deed Poll

means any Deed Poll as defined in Condition 14 the form of which is set out in

Schedule 6 hereto;

Definitive Note

means a definitive Note issued or, as the case may require, to be issued by

the Issuer in accordance with the provisions of the Programme Agreement or any other

agreement between the Issuer and the relevant Dealer in exchange for either a Temporary

Global Note or a Permanent Global Note (all as indicated in the applicable Final Terms),

0010155-0003437 UKO2: 2005996996.8

6

such definitive Note being in the form or substantially in the form set out in Part 3 of

Schedule 2 with such modifications (if any) as may be agreed between the Issuer, the

Agent and the relevant Dealer and having the Conditions endorsed

0010155-0003437 UKO2: 2005996996.8

7

thereon or, if permitted by the relevant authority or authorities, incorporating the Conditions

by reference and having the applicable Final Terms (or the relevant provisions thereof)

either endorsed thereon or attached thereto and (except in the case of a Zero Coupon

Note) having Coupons and, where appropriate, Talons attached thereto on issue;

Distribution Compliance Period

has the meaning given to such term in Regulation S

under the Securities Act;

Euroclear

means Euroclear Bank SA/NV;

Eurosystem-eligible NGN

means an NGN which is intended to be held in a manner which

would allow Eurosystem eligibility, as stated in the applicable Final Terms;

FATCA Withholding

means any withholding or deduction required pursuant to an

agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to

Sections 1471 through 1474 of the Code (or any regulations thereunder or official

interpretations thereof) or an intergovernmental agreement between the United States and

another jurisdiction facilitating the implementation thereof (or any law implementing such an

intergovernmental agreement);

Fixed Rate Note

means a Note on which interest is calculated at a fixed rate payable in

arrear on a fixed date or dates in each year and on redemption or on such other dates as

may be agreed between the Issuer and the relevant Dealer (as indicated in the applicable

Final Terms);

Floating Rate Note

means a Note on which interest is calculated at a floating rate payable

in respect of such period or on such date(s) as may be agreed between the Issuer and the

relevant Dealer (as indicated in the applicable Final Terms);

Global Note

means a Temporary Global Note and/or a Permanent Global Note, as

applicable;

Grandfathering Date

means the date that is six months after the date on which final

regulations defining the term “foreign passthru payment” are published in the U.S. Federal

Register;

Guarantee

means the Deed of Guarantee, as modified and/or restated and/or

supplemented from time to time, executed by the Guarantor on 13 May 2020 in respect of

the Programme;

Instructions

means any written notices, directions or instructions received by the Agent

from an Authorised Person or from a person reasonably believed by the Agent to be an

Authorised Person;

Interest Commencement Date

means, in the case of interest-bearing Notes, the date

specified in the applicable Final Terms from (and including) which such Notes bear interest,

which may or may not be the Issue Date;

Issue Date

means the date of issue and purchase of a Note, in each case pursuant to and

in accordance with the Programme Agreement or any other agreement between the Issuer

and the relevant Dealer, being in the case of any Permanent Global Note or Definitive Note,

the same date as the date of issue of the Temporary Global Note which initially represented

such Note;

Issue Price

means the price, generally expressed as a percentage of the nominal amount

of the Notes, at which the Notes will be issued;

0010155-0003437 UKO2: 2005996996.8

8

Maturity Date

means, in relation to a Note, the date on which it is expressed to be

redeemable;

0010155-0003437 UKO2: 2005996996.8

9

NGN

means a Temporary Global Note in the form set out in Part 1 of Schedule 2 or a

Permanent Global Note in the form set out in Part 2 of Schedule 2, in either case where the

applicable Final Terms specify that the Notes are in New Global Note form;

Note

means a note denominated in Australian Dollars, Canadian Dollars, Danish Kroner,

Euro, Hong Kong Dollars, Japanese Yen, New Zealand Dollars, Norwegian Kroner, South

African Rand, Sterling, Swedish Kronor, Swiss Francs, U.S. Dollars or such other currency

or currencies as may be agreed between the Issuer and the relevant Dealer issued or to be

issued by the Issuer pursuant to the Programme Agreement or any other agreement

between the Issuer and the relevant Dealer and which shall initially be represented by, and

comprised in, a Temporary Global Note which may (in accordance with the terms of such

Temporary Global Note) be exchanged for either Definitive Notes or a Permanent Global

Note which Permanent Global Note may (in accordance with the terms of such Permanent

Global Note) in turn be exchanged for Definitive Notes (all as indicated in the applicable

Final Terms) and includes any replacements for a Note issued pursuant to Condition 9;

Noteholders

means the several persons who are for the time being holders of the Notes

save that, in respect of the Notes of any Series, for so long as such Notes or any part

thereof are represented by a Global Note held on behalf of Euroclear and/or of

Clearstream, Luxembourg, each person (other than Euroclear or Clearstream,

Luxembourg) who is for the time being shown in the records of Euroclear or of Clearstream,

Luxembourg as the holder of a particular nominal amount of the Notes of such Series (in

which regard any certificate or other document issued by Euroclear or Clearstream,

Luxembourg as to the nominal amount of such Notes standing to the account of any person

shall be conclusive and binding for all purposes save in the case of manifest error) shall be

treated by the Issuer, the Agent and any other Paying Agent as the holder of such nominal

amount of such Notes for all purposes other than with respect to the payment of principal or

interest on such Notes, for which purpose the bearer of the relevant Global Note shall be

treated by the Issuer, the Agent and any other Paying Agent as the holder of such nominal

amount of such Notes in accordance with and subject to the terms of the relevant Global

Note and the expressions

Noteholder

,

holder of Notes

and related expressions shall be

construed accordingly;

outstanding

means, in relation to the Notes of any Series, all the Notes issued other than

(a) those which have been redeemed in full in accordance with the Conditions, (b) those in

respect of which the date for redemption in accordance with the Conditions has occurred

and the redemption moneys wherefor (including all interest (if any) accrued thereon to the

date for such redemption and any interest (if any) payable under the Conditions after such

date) have been duly paid to the Agent as provided herein (and, where appropriate, notice

has been given to the Noteholders of the relevant Series in accordance with Condition 12)

and remain available for payment of the relevant Notes and/or Coupons, (c) those which

have become void under the Conditions, (d) those which have been purchased and

cancelled as provided in the Conditions, (e) those mutilated or defaced Notes which have

been surrendered in exchange for replacement Notes pursuant to the Conditions, (f) (for

the purpose only of determining how many Notes are outstanding and without prejudice to

their status for any other purpose) those Notes alleged to have been lost, stolen or

destroyed and in respect of which replacement Notes have been issued pursuant to the

Conditions, (g) Temporary Global Notes to the extent that they shall have been duly

exchanged for Permanent Global Notes and/or Definitive Notes and Permanent Global

Notes to the extent that they shall have been duly exchanged for Definitive Notes, in each

case pursuant to their respective provisions and (h) Temporary Global Notes and

Permanent Global Notes which have become void in accordance with their terms (provided

that at the Relevant Time (as defined in the Deed of Covenant) the Underlying Notes (as

defined in the Deed of Covenant) will be deemed to be still outstanding) and,

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PROVIDED THAT for each of the following purposes, namely:

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(i)

 the right to attend and vote at any meeting of the Noteholders or any of them,

passing an Extraordinary Resolution (as defined in Schedule 4) in writing or an

Extraordinary Resolution by way of electronic consents given through the relevant

clearing systems as envisaged by Schedule 4; and

(ii)

 the determination of how many and which Notes are for the time being outstanding

for the purposes of paragraphs 2, 5 and 6 of Schedule 4 hereto,

those Notes (if any) which are for the time being held by any person (including but not

limited to the Issuer or any of its Subsidiaries) for the benefit of the Issuer or any of its

Subsidiaries shall (unless and until ceasing to be so held) be deemed not to be

outstanding;

Participating FFI

means a “participating FFI” as defined in US Treasury Regulations

Section 1.1471-1(b)(91) (or any successor provision) or any other entity whose payments

are subject to FATCA Withholding;

Permanent Global Note

means a global note in the form or substantially in the form set

out in Part 2 of Schedule 2 together with the copy of the applicable Final Terms attached

thereto with such modifications (if any) as may be agreed between the Issuer, the Agent

and the relevant Dealer, comprising some or all of the Notes of the same Series, issued by

the Issuer pursuant to the Programme Agreement or any other agreement between the

Issuer and the relevant Dealer in exchange for the whole or part of any Temporary Global

Note issued in respect of such Notes;

Put Notice

means a notice in the form set out in Schedule 5;

Series

means a Tranche of the Notes together with any further Tranche or Tranches of the

Notes which are (a) expressed to be consoli

dated

and form a single series and (b) identical

in all respects (including as to listing) except for their respective Issue Dates, Interest

Commencement Dates and/or Issue Prices and the expressions

Notes of the relevant

Series

and

holders of Notes of the relevant Series

and related expressions shall be

construed accordingly;

Talons

means the talons (if any) appertaining to, and exchangeable in accordance with the

provisions therein contained for further Coupons appertaining to, a Definitive Note (other

than a Zero Coupon Note), such talons being in the form or substantially in the form set out

in Part 5 of Schedule 2 or in such other form as may be agreed between the Issuer, the

Agent and the relevant Dealer and includes any replacements for Talons issued pursuant to

Condition 9;

Temporary Global Note

means a global note in the form or substantially in the form set

out in Part 1 of Schedule 2 together with the copy of the applicable Final Terms attached

thereto with such modifications (if any) as may be agreed between the Issuer, the Agent

and the relevant Dealer, comprising some or all of the Notes of the same Series, issued by

the Issuer pursuant to the Programme Agreement or any other agreement between the

Issuer and the relevant Dealer;

Tranche

means all Notes with the same Issue Date and subject to the same Final Terms;

and

Zero Coupon Note

means a Note on which no interest is payable.

1.3

 (a) Words denoting the singular number only shall include the plural number also

and

vice versa

;

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12

(b)

 words denoting one gender only shall include the other gender; and

(c)

 words denoting persons only shall include firms and corporations and vice versa.

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1.4

 All references in this Agreement to costs or charges or expenses shall include any value

added tax or similar tax charged or chargeable in respect thereof to the extent not

recoverable as an input.

1.5

 All references in the Agreement to "the Guarantor" shall be deemed to be deleted in relation

to Notes that do not have the benefit of the Guarantee.

1.6

 For the purposes of this Agreement, the Notes of each Series shall form a separate series

of Notes and the provisions of this Agreement shall apply

mutatis mutandis

separately and

independently to the Notes of each Series and in this Agreement the expressions

Notes

,

Noteholders

,

Coupons

,

Couponholders

and

Talons

shall be construed accordingly.

1.7

 All references in this Agreement to principal and/or interest or both in respect of the Notes

or to any moneys payable by the Issuer under this Agreement shall have the meaning set

out in Condition 4(f).

1.8

 All references in this Agreement to the

relevant currency

shall be construed as references

to the currency in which the relevant Notes and/or Coupons are denominated.

1.9

 In this Agreement, clause headings are inserted for convenience and ease of reference

only and shall not affect the interpretation of this Agreement. All references in this

Agreement to the provisions of any statute shall be deemed to be references to that statute

as from time to time modified, extended, amended or re-enacted or to any statutory

instrument, order or regulation made thereunder or under such re-enactment.

1.10

 All references in this Agreement to an agreement, instrument or other document (including,

without limitation, this Agreement, the Programme Agreement, the Deed of Covenant, the

Guarantee, the Procedures Memorandum, the Notes and any Conditions appertaining

thereto) shall be construed as a reference to that agreement, instrument or document as

the same may be amended, modified, varied or supplemented from time to time.

1.11

 Any references herein to Euroclear and/or Clearstream, Luxembourg shall, whenever the

context so permits, be deemed to include a reference to any additional or alternative

clearance system approved by the Issuer and the Agent or as otherwise specified in Part B

of the applied Final Terms.

1.12

 All references to the

records

of Euroclear and Clearstream, Luxembourg shall be to the

records that each of Euroclear and Clearstream, Luxembourg holds for its customers which

reflect the amount of such customer's interest in the Notes.

1.13

 As used herein, in relation to any Notes which are to have a "listing" or be "listed" (i) on the

London Stock Exchange,

listing

and

listed

shall be construed to mean that such Notes

have been admitted to the Official List and admitted to trading on the London Stock

Exchange's main market and (ii) on any European Economic Area Stock Exchange,

listing

and

listed

shall be construed to mean that that Notes have been admitted to trading on a

market within that jurisdiction which is a regulated market for the purposes of the Markets in

Financial Instruments Directive (Directive 2014/65/EU, as amended).

1.14

 This Agreement does not apply to the VPS Notes.

1.15

 With effect from the date hereof, the provisions of the Previous Agency Agreement shall be

amended and restated and shall take effect in the form set out in this Agency Agreement

and all references to the

Agency Agreement

,

this Agency Agreement

,

this Agreement

,

hereof

,

hereunder

and expressions of similar import in this Agency Agreement shall be

construed as references to the Previous Agency Agreement as so amended and restated.

Any Notes issued on or after the date hereof shall be issued pursuant to this Agency

0010155-0003437 UKO2: 2005996996.8

14

Agreement.

 This does not affect any Notes issued prior to the date of this Agreement.

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2.

 APPOINTMENT OF AGENT AND PAYING AGENTS

2.1

 The Agent is hereby appointed, and the Agent hereby agrees to act as issuing and paying

agent of the Issuer and the Guarantor upon the terms and subject to the conditions set out

below, for the purposes of,

inter alia

:

(a)

 completing, authenticating and delivering Global Notes and (if required) completing,

authenticating and delivering Definitive Notes;

(b)

 giving effectuation instructions in respect of each Global Note which is a

Eurosystem- eligible NGN;

(c)

 exchanging Temporary Global Notes for Permanent Global Notes or Definitive

Notes, as the case may be, in accordance with the terms of Temporary Global

Notes and, in respect of any such exchange, (i) making all notations on Global

Notes which are CGNs as required by their terms and (ii) instructing Euroclear and

Clearstream, Luxembourg to make appropriate entries in their records in respect of

all Global Notes which are NGNs;

(d)

 exchanging Permanent Global Notes for Definitive Notes in accordance with the

terms of such Permanent Global Notes and, in respect of any such exchange, (i)

making all notations on Permanent Global Notes which are CGNs as required by

their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make

appropriate entries in their records in respect of all Permanent Global Notes which

are NGNs;

(e)

 paying sums due on Global Notes and Definitive Notes and Coupons and instructing

Euroclear and Clearstream, Luxembourg to make appropriate entries in their

records in respect of all Global Notes which are NGNs;

(f)

 exchanging Talons for Coupons in accordance with the Conditions;

(g)

 arranging on behalf of the Issuer or, as the case may be, the Guarantor, for notices

to be communicated to the Noteholders;

(h)

 ensuring that all necessary action is taken to comply with any reporting

requirements of any competent authority in respect of any relevant currency as may

be in force from time to time with respect to the Notes to be issued under the

Programme;

(i)

 subject to the Procedures Memorandum, submitting to the relevant authority or

authorities such number of copies of each Final Terms which relates to Notes which

are to be listed as the relevant authority or authorities may reasonably require;

(j)

 acting as Calculation Agent in respect of Notes where named as such in the

relevant Final Terms; and

(k)

 performing all other obligations and duties imposed upon it by the Conditions and

this Agreement.

2.2

 Each Paying Agent is hereby appointed as paying agent of the Issuer and the Guarantor,

upon the terms and subject to the conditions set out below, for the purposes of paying

sums due on Notes and Coupons and of performing all other obligations and duties

imposed upon it by the Conditions and this Agreement. The obligations of the Paying

Agents under this Agreement shall be several and not joint.

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16

2.3

 In relation to each issue of Eurosystem-eligible NGNs, the Issuer hereby authorises and

instructs the Agent to elect Euroclear and/or Clearstream, Luxembourg as common

safekeeper. From time to time, the Issuer and the Agent may agree to vary this election.

The Issuer acknowledges that any such election is subject to the right of Euroclear and

Clearstream, Luxembourg to jointly determine that the other shall act as common

safekeeper in relation to any such issue and agrees that no liability shall attach to the Agent

in respect of any such election made by it.

3.

 ISSUE OF TEMPORARY GLOBAL NOTES

3.1

 Subject to subclause 3.2 below, following receipt of a faxed copy of the Final Terms signed

by the Issuer and the Guarantor, the Issuer hereby authorises the Agent and the Agent

hereby agrees to take the steps required of the Agent in the Procedures Memorandum. For

this purpose the Agent will,

inter alia,

on behalf of the Issuer:

(a)

 prepare a Temporary Global Note by attaching a copy of the applicable Final Terms

to a copy of the applicable master Temporary Global Note;

(b)

 authenticate such Temporary Global Note;

(c)

 deliver such Temporary Global Note to the specified common depositary (if the

Temporary Global Note is a CGN) or specified common safekeeper (if the

Temporary Global Note is an NGN) for Euroclear and Clearstream, Luxembourg

and, in the case of a Temporary Global Note which is a Eurosystem-eligible NGN, to

instruct the common safekeeper to effectuate the same;

(d)

 ensure that the Notes of each Tranche are assigned a common code and ISIN by

Euroclear and Clearstream, Luxembourg which are different from the common code

and ISIN assigned to Notes of any other Tranche of the same Series until at least

the expiry of the applicable Distribution Compliance Period of such Tranche as

notified by the Agent to the relevant Dealer; and

(e)

 if the Temporary Global Note is an NGN, instruct Euroclear and Clearstream,

Luxembourg to make the appropriate entries in their records to reflect the initial

outstanding aggregate principal amount of the relevant Tranche of Notes.

3.2

 The Agent shall only be required to perform its obligations under subclause 3.1 above if it

holds:

(a)

 a master Temporary Global Note duly executed by a person or persons authorised

to execute the same on behalf of the Issuer, which may be used by the Agent for

the purpose of preparing a Temporary Global Note in accordance with subclause

3.1(a); and

(b)

 a master Permanent Global Note duly executed by a person or persons authorised

to execute the same on behalf of the Issuer, which may be used by the Agent for

the purpose of preparing a Permanent Global Note in accordance with clause 4

below.

3.3

 Where the Agent delivers any authenticated Global Note to a common safekeeper for

effectuation using electronic means, it is authorised and instructed to destroy the Global

Note retained by it following its receipt of confirmation from the common safekeeper that

the relevant Global Note has been effectuated.

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4.

 DETERMINATION OF EXCHANGE DATE AND ISSUE OF PERMANENT GLOBAL

NOTES AND DEFINITIVE NOTES

4.1

 (a) The Agent shall determine the Exchange Date for each Temporary Global Note

in accordance with the terms thereof. Forthwith upon determining the Exchange

Date in respect of any Tranche, the Agent shall notify such determination to the

Issuer, the Guarantor, the relevant Dealer, Euroclear and Clearstream,

Luxembourg.

(b)

 Where a Temporary Global Note is to be exchanged for a Permanent Global Note,

the Agent is hereby authorised on behalf of the Issuer:

(i)

 in the case of the first Tranche of any Series of Notes, to prepare and

complete a Permanent Global Note in accordance with the terms of the

Temporary Global Note applicable to such Tranche by attaching a copy of

the applicable Final Terms to a copy of the applicable master Permanent

Global Note;

(ii)

 in the case of the first Tranche of any Series of Notes, to authenticate such

Permanent Global Note;

(iii)

 in the case of the first Tranche of any Series of Notes if the Permanent

Global Note is a CGN, to deliver such Permanent Global Note to the

common depositary which is holding the Temporary Global Note applicable

to such Tranche for the time being on behalf of Euroclear and/or

Clearstream, Luxembourg to hold on behalf of the Issuer pending its

exchange for such Temporary Global Note;

(iv)

 in the case of the first Tranche of any Series of Notes if the Permanent

Global Note is an NGN, to deliver the Permanent Global Note to the

common safekeeper which is holding the Temporary Global Note

representing the Tranche for the time being on behalf of Euroclear and/or

Clearstream, Luxembourg to effectuate (in the case of a Permanent Global

Note which is a Eurosystem-eligible NGN) and to hold on behalf of the

Issuer pending its exchange for the Temporary Global Note;

(v)

 in the case of a subsequent Tranche of any Series of Notes if the Permanent

Global Note is a CGN, by attaching a copy of the applicable Final Terms to

the Permanent Global Note applicable to the relevant Series and entering

details of any exchange in whole or part as aforesaid; and

(vi)

 in the case of a subsequent Tranche of any Series of Notes if the Permanent

Global Note is an NGN, to deliver the applicable Final Terms to the specified

common safekeeper for attachment to the Permanent Global Note

applicable to the relevant Series.

5.

 ISSUE OF DEFINITIVE NOTES

5.1

 Where a Global Note is to be exchanged for Definitive Notes in accordance with its terms,

the Agent is hereby authorised on behalf of the Issuer:

(a)

 to authenticate such Definitive Note(s) in accordance with the provisions of this

Agreement; and

(b)

 to deliver such Definitive Note(s) to or to the order of Euroclear and/or

Clearstream, Luxembourg.

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The Agent shall notify the Issuer forthwith upon receipt of a request for issue of (a)

Definitive Note(s) in accordance with the provisions of a Temporary Global Note or

Permanent Global Note, as the case may be, (and the aggregate nominal amount of such

Temporary Global Note or Permanent Global Note, as the case may be, to be exchanged

in connection therewith).

5.2

 The Issuer undertakes to deliver to the Agent sufficient numbers of executed Definitive

Notes with, if applicable, Coupons and Talons attached to enable the Agent to comply with

its obligations under this clause.

6.

 TERMS OF ISSUE

6.1

 The Agent shall cause all Temporary Global Notes, Permanent Global Notes and Definitive

Notes delivered to and held by it under this Agreement to be maintained in safe custody

and shall ensure that such Notes are issued only in accordance with the provisions of this

Agreement and the relevant Global Note and Conditions.

6.2

 Subject to the procedures set out in the Procedures Memorandum, for the purposes of

subclause 3.1 the Agent is entitled to treat a telephone or facsimile communication from a

person who the Agent believes to be the authorised representative of the Issuer or, as the

case may be, the Guarantor, named in the list referred to in, or notified pursuant to,

subclause 19.7 as sufficient instructions and authority of the Issuer and the Guarantor for

the Agent to act in accordance with subclause 3.1.

6.3

 In the event that a person who has signed on behalf of the Issuer any Note not yet issued

but held by the Agent in accordance with subclause 3.1 ceases to be authorised as

described in subclause 19.7, the Agent shall (unless the Issuer gives written notice to the

Agent that Notes signed by that person do not constitute valid and binding obligations of the

Issuer or otherwise until replacements have been provided to the Agent) continue to have

authority to issue any such Notes, and the Issuer hereby warrants to the Agent that such

Notes shall, unless notified as aforesaid, be valid and binding obligations of the Issuer.

Promptly upon such person ceasing to be authorised, the Issuer shall provide the Agent

with replacement Notes and upon receipt of such replacement Notes the Agent shall cancel

and destroy the Notes held by it which are signed by such person and shall provide to the

Issuer a confirmation of destruction in respect thereof specifying the Notes so cancelled

and destroyed.

6.4

 This subclause only applies when following the settlement procedures set out in Part 1 of

Annex 1 of the Procedures Memorandum. If the Agent pays an amount (the

Advance

) to

the Issuer on the basis that a payment (the

Payment

) has been, or will be, received from a

Dealer and if the Payment is not received by the Agent on the date the Agent pays the

Issuer, the Issuer, failing which the Guarantor, shall repay to the Agent the Advance and

shall pay interest on the Advance (or the unreimbursed portion thereof) from (and including)

the date such Advance is made to (but excluding) the earlier of repayment of the Advance

and receipt by the Agent of the Payment (at a rate quoted at that time by the Agent as the

aggregate of one per cent. and its cost of funding the Advance provided that evidence of

the basis of such rate is given to the Issuer if so required).

6.5

 This subclause only applies when following the settlement procedures set out in Part 1 of

Annex 1 of the Procedures Memorandum. Except in the case of issues where the Agent

does not act as receiving bank for the Issuer in respect of the purchase price of the Notes

being issued, if on the relevant Issue Date a Dealer does not pay the full purchase price

due from it in respect of any Note (the

Defaulted Note

) and, as a result, the Defaulted Note

remains in the Agent's distribution account with Euroclear and/or Clearstream, Luxembourg

after such Issue Date, the Agent will continue to hold the Defaulted Note to the order of the

Issuer. The Agent shall notify the Issuer forthwith of the failure of the Dealer to pay the full

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19

purchase price due from it in respect of any Defaulted Note and, subsequently, shall notify

the Issuer forthwith upon receipt from the Dealer of the full purchase price in respect of

such Defaulted Note.

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7.

 PAYMENTS

7.1

 The Issuer, failing which the Guarantor will, before 10.00 a.m. (local time in the relevant

financial centre of the payment), on each date on which any payment in respect of any

Note becomes due, transfer to an account specified by the Agent such amount in the

relevant currency as shall be sufficient for the purposes of such payment in funds settled

through such payment system as the Agent and the Issuer or, as the case may be, the

Guarantor may agree.

7.2

 The Issuer, failing which the Guarantor will ensure that no later than 10.00 a.m. (London

time) on the Business Day (as defined below) immediately preceding the date on which

any payment is to be made to the Agent pursuant to subclause 7.1, the Agent shall receive

a payment confirmation from the paying bank of the Issuer.

For the purposes of this clause

Business Day

means a day which is both:

(a)

 a day on which commercial banks and foreign exchange markets settle payments

and are open for general business (including dealing in foreign exchange and

foreign currency deposits) in London and any other place specified in the applicable

Final Terms as an Additional Business Centre; and

(b)

 either (i) in relation to a payment to be made in a Specified Currency other than

euro, a day on which commercial banks and foreign exchange markets settle

payments in the principal financial centre of the country of the relevant Specified

Currency (if other than London and any Additional Business Centre) and which, if

the Specified Currency is New Zealand Dollars, shall be Auckland or (ii) in relation

to any sum payable in euro, a day on which the Trans-European Automated Real

Time Gross Settlement Express Transfer System (known as TARGET or T2) is

operating.

7.3

 The Agent shall ensure that payments of both principal and interest in respect of a

Temporary Global Note will be made only to the extent that certification of non-U.S.

beneficial ownership as required by U.S. securities laws and U.S. Treasury regulations has

been received from Euroclear and/or Clearstream, Luxembourg in accordance with the

terms thereof.

7.4

 Subject to the receipt by the Agent of the payment confirmation as provided in subclause

7.2 above, the Agent or the relevant Paying Agent shall pay or cause to be paid all amounts

due in respect of the Notes on behalf of the Issuer (failing which the Guarantor) in the

manner provided in the Conditions. If any payment provided for in subclause 7.1 is made

late but otherwise in accordance with the provisions of this Agreement, the Agent and each

Paying Agent shall nevertheless make payments in respect of the Notes as aforesaid

following receipt by it of such payment.

7.5

 If for any reason the Agent considers in its reasonable opinion that the amounts to be

received by the Agent pursuant to subclause 7.1 will be, or the amounts actually received

by it pursuant thereto are, insufficient to satisfy all claims in respect of all payments then

falling due in respect of the Notes, neither the Agent nor any Paying Agent shall be obliged

to pay any such claims until the Agent has received the full amount of all such payments.

7.6

 Without prejudice to subclauses 7.4 and 7.5, if the Agent pays any amounts to the holders

of Notes or Coupons or to any Paying Agent at a time when it has not received payment in

full in respect of the relevant Notes in accordance with subclause 7.1 (the excess of the

amounts so paid over the amounts so received being the

Shortfall

), the Issuer, failing

which the Guarantor will, in addition to paying amounts due under subclause 7.1, pay to the

Agent on demand interest (at a rate which represents the aggregate of one per cent. and

0010155-0003437 UKO2: 2005996996.8

21

the Agent's cost of funding the Shortfall) on the Shortfall (or the unreimbursed portion

thereof) until the receipt in full by the Agent of the Shortfall.

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22

7.7

 The Agent shall on demand promptly reimburse each Paying Agent for payments in respect

of Notes properly made by such Paying Agent in accordance with this Agreement and the

Conditions unless the Agent has notified the Paying Agent, prior to the opening of business

in the location of the office of the Paying Agent through which payment in respect of the

Notes can be made on the due date of a payment in respect of the Notes, that the Agent

does not expect to receive sufficient funds to make payment of all amounts falling due in

respect of such Notes.

7.8

 Whilst any Notes are represented by Global Notes, all payments due in respect of such

Notes shall be made to, or to the order of, the holder of the Global Notes, subject to and in

accordance with the provisions of the Global Notes. On the occasion of any such payment

(i) in the case of a CGN, the Paying Agent to which the Global Note was presented for the

purpose of making such payment shall cause the appropriate Schedule to the relevant

Global Note to be annotated so as to evidence the amounts and dates of such payments of

principal and/or interest as applicable or (ii) in the case of any Global Note which is an

NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate

entries in their records to reflect such payment.

7.9

 If the amount of principal and/or interest then due for payment is not paid in full (otherwise

than by reason of a deduction required by law to be made therefrom or by reason of a

FATCA Withholding),

(i) the Paying Agent to which a Note is presented for the purpose of making such payment

shall, unless the Note is an NGN, make a record of such Shortfall on the Note and such

record shall, in the absence of manifest error, be

prima facie

evidence that the payment in

question has not to that extent been made or (ii) in the case of any Global Note which is an

NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate

entries in their records to reflect such shortfall in payment.

7.10

 In the event that (a) the Issuer is or becomes a Participating FFI, (b) Notes are issued or

amended (or any terms of the Notes are waived) after the Grandfathering Date and (c) the

Issuer or the Guarantor determines in its sole discretion that FATCA Withholding will be

required in connection with any payment due to the Agent on any Notes, then the Issuer or

the Guarantor will be entitled to re-direct or reorganise any such payment in any way that it

sees fit in order that the payment may be made without FATCA Withholding provided that

any such redirected or reorganised payment is otherwise made in accordance with this

Agreement. The Issuer will promptly notify the Agent and the Noteholders of any such

redirection or reorganisation.

7.11

 The Agent shall be entitled to deduct FATCA Withholding, and shall have no obligation to

gross-up any payment hereunder or to pay any additional amount as a result of such

FATCA Withholding.

8.

 DETERMINATIONS AND NOTIFICATIONS IN RESPECT OF NOTES AND INTEREST

DETERMINATION

8.1

Determinations and Notifications

(a)

 The Agent shall make all such determinations and calculations (howsoever described) as it

is required to do under the Conditions, all subject to and in accordance with the Conditions.

(b)

 The Agent shall not be responsible to the Issuer, the Guarantor or to any third party as a

result of the Agent having acted on any quotation given by any Reference Bank which

subsequently may be found to be incorrect.

(c)

 The Agent shall promptly notify (and confirm in writing to) the Issuer, the Guarantor, the

other Paying Agents and (in respect of a Series of Notes listed on a Stock Exchange) the

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23

relevant Stock Exchange of,

inter alia

, each Rate of Interest, Interest Amount and Interest

Payment Date and all other amounts, rates and dates which it is obliged to determine or

calculate under the Conditions as

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24

soon as practicable after the determination thereof and of any subsequent amendment

thereto pursuant to the Conditions.

(d)

 The Agent shall use its best endeavours to cause each Rate of Interest, Interest Amount

and Interest Payment Date and all other amounts, rates and dates which it is obliged to

determine or calculate under the Conditions to be published as required in accordance with

the Conditions as soon as possible after their determination or calculation.

(e)

 If the Agent does not at any material time for any reason determine and/or calculate and/or

publish the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any

Interest Period or any other amount, rate or date as provided in this clause, it shall

forthwith notify the Issuer, the Guarantor and the other Paying Agents of such fact.

(f)

 Determinations with regard to Notes shall be made by the Calculation Agent specified in the

applicable Final Terms in the manner specified in the applicable Final Terms. Unless

otherwise agreed between the Issuer and the relevant Dealer or unless the Agent is the

Calculation Agent (in which case the provisions of this Agreement shall apply), such

determinations shall be made on the basis of a Calculation Agency Agreement substantially

in the form of Appendix 1 to this Agreement.

8.2

Interest Determination, Screen Rate Determination including Fallback Provisions

(a)

 Where Screen Rate Determination is specified in the applicable Final Terms as the manner

in which the Rate of Interest is to be determined, the Rate of Interest for each Interest

Period will be determined in accordance with the Conditions.

(b)

 The Conditions also contain provisions for determining the Rate of Interest in the event that

the Relevant Screen Page is not available or the quotation or quotations required by the

Conditions are unavailable or following a Benchmark Event or Benchmark Transition Event.

9.

 NOTICE OF ANY WITHHOLDING OR DEDUCTION

In the event that (a) the Issuer or the Guarantor is or becomes a Participating FFI and (b)

Notes are issued or amended (or any terms of the Notes are waived) after the

Grandfathering Date, the Issuer will notify the Agent as soon as is practicable of: (i) the fact

that the Issuer or the Guarantor is or has become a Participating FFI, and (ii) any other

information known to the Issuer and pertaining to the Issuer or, as the case may be, the

Guarantor, necessary for the Agent to determine the amount, if any, it is required to

withhold or deduct in respect of any FATCA Withholding in relation to any payment under

the Notes.

10.

 DUTIES OF THE AGENT IN CONNECTION WITH EARLY REDEMPTION

10.1

 If the Issuer decides to redeem any Notes for the time being outstanding prior to their

Maturity Date in accordance with the Conditions, the Issuer shall, unless otherwise agreed,

give notice of such decision to the Agent not less than 15 days before the date on which the

Issuer will give notice to the Noteholders in accordance with the Conditions of such

redemption in order to enable the Agent to undertake its obligations herein and in the

Conditions.

10.2

 If some only of the Notes are to be redeemed on such date, the Agent shall make the

required drawing in accordance with the Conditions but shall give the Issuer and the

Guarantor reasonable notice of the time and place proposed for such drawing and the

Issuer shall be entitled to send representatives to attend such drawing.

10.3

 The Agent shall publish the notice required in connection with any such redemption and

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25

shall at the same

 time also publish a separate list of the serial numbers of any Notes

previously drawn and not

0010155-0003437 UKO2: 2005996996.8

26

presented for redemption. Such notice shall specify the date fixed for redemption, the

redemption amount, the manner in which redemption will be effected and, in the case of a

partial redemption, the serial numbers of the Notes to be redeemed. Such notice will be

published in accordance with the Conditions. The Agent will also notify the other Paying

Agents of any date fixed for redemption of any Notes.

10.4

 Each Paying Agent will keep a stock of Put Notices and will make such notices available on

demand to holders of Notes, the Conditions of which provide for redemption at the option of

Noteholders. Upon receipt of any Note deposited in the exercise of such option in

accordance with the Conditions, the Paying Agent with which such Note is deposited shall

hold such Note (together with any Coupons and Talons relating to it deposited with it) on

behalf of the depositing Noteholder (but shall not, save as provided below, release it) until

the due date for redemption of the relevant Note consequent upon the exercise of such

option, when, subject as provided below, it shall present such Note (and any such Coupons

and Talons) to itself for payment of the amount due thereon together with any interest due

on such date in accordance with the Conditions and shall pay such moneys in accordance

with the directions of the Noteholder contained in the relevant Put Notice. If, prior to such

due date for its redemption, such Note becomes immediately due and payable or if upon

due presentation payment of such redemption moneys is improperly withheld or refused,

the Paying Agent concerned shall post such Note (together with any such Coupons and

Talons) by uninsured post to, and at the risk of, the relevant Noteholder unless the

Noteholder has otherwise requested and paid the costs of such insurance to the relevant

Paying Agent at the time of depositing the Notes at such address as may have been given

by the Noteholder in the relevant Put Notice. At the end of each period for the exercise of

such option, each Paying Agent shall promptly notify the Agent of the principal amount of

the Notes in respect of which such option has been exercised with it together with their

serial numbers and the Agent shall promptly notify such details to the Issuer. The Issuer or

the Guarantor shall provide to the Agent sufficient supplies of blank Put Notices for such

purposes.

11.

 RECEIPT AND PUBLICATION OF NOTICES

11.1

 Forthwith upon the receipt by the Agent of a demand or notice from any Noteholder in

accordance with the Conditions the Agent shall forward a copy thereof to the Issuer and the

Guarantor.

11.2

 On behalf of and at the request and expense of the Issuer (failing which the Guarantor), the

Agent shall cause to be published all notices required to be given by the Issuer or the

Guarantor to the Noteholders in accordance with the Conditions.

12.

 CANCELLATION OF NOTES, COUPONS AND TALONS

12.1

 All Notes which are redeemed, all Coupons which are paid and all Talons which are

exchanged shall be cancelled by the Agent or Paying Agent by which they are redeemed,

paid or exchanged. In addition, the Issuer and the Guarantor shall immediately notify the

Agent in writing of all Notes which are purchased by or on behalf of the Issuer or the

Guarantor and all such Notes surrendered to a Paying Agent for cancellation, together (in

the case of Definitive Notes) with all unmatured Coupons or Talons (if any) attached thereto

or surrendered therewith, shall be cancelled by the Paying Agent to which they are

surrendered. Each of the other Paying Agents shall give to the Agent details of all

payments made by it and shall deliver all cancelled Notes, Coupons and Talons to the

Agent.

12.2

 A certificate stating:

(a)

 the aggregate nominal amount of Notes which have been redeemed and the

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27

aggregate amount paid in respect thereof;

0010155-0003437 UKO2: 2005996996.8

28

(b)

 the number of Notes cancelled together (in the case of Notes in definitive form) with

details of all unmatured Coupons or Talons (if any) attached thereto or delivered

therewith;

(c)

 the aggregate amount paid in respect of interest on the Notes;

(d)

 the total number by maturity date of Coupons and Talons so cancelled; and

(e)

 (in the case of Definitive Notes) the serial numbers of such Notes,

shall be given to the Issuer by the Agent as soon as reasonably practicable and in any

event upon written request within three months after the date of such repayment or, as the

case may be, payment or exchange.

12.3

 The Agent shall destroy all cancelled Notes, Coupons and Talons and, forthwith upon

destruction, furnish the Issuer upon written request with a certificate of the serial numbers

of the Notes (in the case of Notes in definitive form) and the number by maturity date of

Coupons and Talons so destroyed.

12.4

 Without prejudice to the obligations of the Agent pursuant to subclause 12.2, the Agent

shall keep a full and complete record of all Notes, Coupons and Talons (other than serial

numbers of Coupons) and of their redemption, purchase by or on behalf of the Issuer or the

Guarantor and cancellation, payment or exchange (as the case may be) and of all

replacement Notes, Coupons or Talons issued in substitution for mutilated, defaced,

destroyed, lost or stolen Notes, Coupons or Talons. The Agent shall in respect of the

Coupons of each maturity retain (in the case of Coupons other than Talons) until the expiry

of ten years from the Relevant Date in respect of such Coupons and (in the case of Talons)

indefinitely either all paid or exchanged Coupons of that maturity or a list of the serial

numbers of Coupons of that maturity still remaining unpaid or unexchanged. The Agent

shall at all reasonable times make such record available to the Issuer, the Guarantor and

any persons authorised by it for inspection and for the taking of copies thereof or extracts

therefrom.

12.5

 The Agent is authorised by the Issuer and instructed (a) in the case of any Global Note

which is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note

to reflect the reduction in the nominal amount represented by it by the amount so redeemed

or purchased and cancelled and (b) in the case of any Global Note which is an NGN, to

instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their

records to reflect such redemption or purchase and cancellation, as the case may be;

provided, that, in the case of a purchase or cancellation, the Issuer has notified the Agent

of the same in accordance with subclause 12.1.

12.6

 All records and certificates made or given pursuant to this clause and clause 13 shall make

a distinction between Notes, Coupons and Talons of each Series.

13.

 ISSUE OF REPLACEMENT NOTES, COUPONS AND TALONS

13.1

 The Issuer will cause a sufficient quantity of additional forms of Notes, Coupons and Talons

to be available, upon request, to the Agent at its specified office for the purpose of issuing

replacement Notes, Coupons and Talons as provided below.

13.2

 The Agent will, subject to and in accordance with the Conditions and the following

provisions of this clause, cause to be delivered any replacement Notes, Coupons and

Talons which the Issuer may determine to issue in place of Notes, Coupons and Talons

which have been lost, stolen, mutilated, defaced or destroyed.

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29

13.3

 In the case of a mutilated or defaced Note, the Agent shall ensure that (unless otherwise

covered by such indemnity as the Issuer may reasonably require) any replacement Note

will only have attached

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30

to it Coupons and Talons corresponding to those (if any) attached to the mutilated or

defaced Note which is presented for replacement.

13.4

 The Agent shall not issue any replacement Note, Coupon or Talon unless and until the

claimant therefor shall have:

(a)

 paid such costs and expenses as may be incurred in connection therewith;

(b)

 furnished it with such evidence and indemnity as the Issuer may reasonably require;

and

(c)

 in the case of any mutilated or defaced Note, Coupon or Talon, surrendered it to the

Agent.

13.5

 The Agent shall cancel any mutilated or defaced Notes, Coupons and Talons in respect of

which replacement Notes, Coupons and Talons have been issued pursuant to this clause

and shall furnish the Issuer with a certificate stating the serial numbers of the Notes,

Coupons and Talons so cancelled and, unless otherwise instructed by the Issuer in writing,

shall destroy such cancelled Notes, Coupons and Talons and furnish the Issuer with a

destruction certificate containing the information specified in subclause 12.3.

13.6

 The Agent shall, on issuing any replacement Note, Coupon or Talon, forthwith inform the

Issuer and the other Paying Agents of the serial number of such replacement Note, Coupon

or Talon issued and (if known) of the serial number of the Note, Coupon or Talon in place of

which such replacement Note, Coupon or Talon has been issued. Whenever replacement

Coupons or Talons are issued pursuant to the provisions of this clause, the Agent shall also

notify the other Paying Agents of the maturity dates of the lost, stolen, mutilated, defaced or

destroyed Coupons or Talons and of the replacement Coupons or Talons issued.

13.7

 The Agent shall keep a full and complete record of all replacement Notes, Coupons and

Talons issued and shall make such record available at all reasonable times to the Issuer,

the Guarantor and any persons authorised by it for inspection and for the taking of copies

thereof or extracts therefrom.

13.8

 Whenever any Note, Coupon or Talon for which a replacement Note, Coupon or Talon has

been issued and in respect of which the serial number is known is presented to the Agent

or any of the other Paying Agents for payment, the Agent or, as the case may be, the

relevant other Paying Agent shall immediately send notice thereof to the Issuer and the

other Paying Agents.

14.

 COPIES OF DOCUMENTS AVAILABLE FOR INSPECTION OR COLLECTION

14.1

 The Paying Agents shall hold available for inspection or collection at their specified office

during normal business hours copies of all documents required to be so available by the

Conditions of any Notes. For these purposes, the Issuer, failing which the Guarantor, shall

furnish the Paying Agents with sufficient copies of each of the relevant documents.

14.2

 Each Paying Agent shall provide by email to a Noteholder copies of all documents required

to be so available by the Conditions of any Notes, following the Noteholder’s prior written

request and provision of proof of holding and identity (in a form satisfactory to the relevant

Paying Agent).

15.

 MEETINGS OF NOTEHOLDERS

15.1

 The provisions of Schedule 4 hereto shall apply to meetings of the Noteholders and shall

have effect in the same manner as if set out in this Agreement.

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31

15.2

 Without prejudice to subclause 15.1, each of the Agent and the other Paying Agents on the

request of any Noteholder shall issue voting certificates and block voting instructions in

accordance with

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32

Schedule 4 and shall forthwith give notice to the Issuer in writing of any revocation or

amendment of a block voting instruction. Each of the Agent and the other Paying Agents

will keep a full and complete record of all voting certificates and block voting instructions

issued by it and will, not less than 24 hours before the time appointed for holding a meeting

or adjourned meeting, deposit at such place as the Agent shall designate or approve, full

particulars of all voting certificates and block voting instructions issued by it in respect of

such meeting or adjourned meeting. The Issuer shall provide to the Agent sufficient

supplies of such voting certificates and block voting instructions for such purposes.

16.

 COMMISSIONS, EXPENSES AND REVIEW OF FEES AND EXPENSES

16.1

 The Issuer, failing which the Guarantor agrees to pay to the Agent such fees and

commissions as the Issuer, the Guarantor and the Agent shall separately agree in respect

of the services of the Agent and the other Paying Agents hereunder together with any

expenses reasonably incurred (including legal, printing, postage, fax, cable and advertising

expenses) incurred by the Agent and the other Paying Agents in connection with their said

services.

16.2

 The Agent will make payment of the fees and commissions due hereunder to the other

Paying Agents and will reimburse their expenses promptly after the receipt of the relevant

moneys from the Issuer or, as the case may be, the Guarantor. Neither the Issuer nor the

Guarantor shall be responsible for any such payment or reimbursement by the Agent to

the other Paying Agents.

16.3

 The parties to this Agreement agree that, at the request of the Agent, the fees and

expenses payable under this clause 16 may be reviewed and increased from time to time in

accordance with the Agent’s or any other relevant Paying Agent’s then current fee levels.

In addition, the Agent reserves the right at any time and from time to time to charge the

Issuer properly incurred additional fees and expenses in respect of the performance by the

Agent or such other Paying Agent of services hereunder in respect of any exercise by the

Issuer or the Noteholders of any call or put option, exchanges, conversions, solicitations,

offers, tenders or any other process that requires communication with the Noteholders.

17.

 INDEMNITY

17.1

 The Issuer, failing which the Guarantor, agrees to indemnify, defend and hold the Agent

and its officers, directors, employees, agents and shareholders harmless from and against

any and all liabilities that are properly incurred by each of them and their respective officers,

directors, employees, agents and shareholders arising directly or indirectly out of or in

connection with this Agreement (including value added tax or similar tax pursuant to clause

1.4 of this Agreement and stamp and other documentary taxes and duties pursuant to

clause 27 of this Agreement, but excluding all other taxes), including, without limitation, any

payment made by the Agent relying on information received by it pursuant to clause 7 and

the legal costs and expenses as such expenses are incurred (including, without limitation,

the expenses of any experts, counsel, agents or other professional advisers) of

investigating, preparing for or defending itself against any action, claim or liability in

connection with its performance hereunder. In no event however, shall the Issuer or the

Guarantor be obliged to indemnify the Agent and keep the Agent harmless from any fees,

expenses, charges and/or liabilities (i) incurred by the Agent as a result of its own fraud,

wilful misconduct or negligence, or (ii) the reimbursement of which is governed by another

clause of this Agreement.

17.2

 The indemnity set out above shall survive the resignation or removal of the Agent or any

termination or expiry of this Agreement including any termination under any bankruptcy law

or similar.

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33

18.

 REPAYMENT BY THE AGENT

Upon the Issuer or, as the case may be, the Guarantor being discharged from its obligation

to make payments in respect of any Notes pursuant to the relevant Conditions, and

provided that there is no outstanding,

bona fide

and proper claim in respect of any such

payments, the Agent shall forthwith on demand pay to the Issuer or, as the case may be,

the Guarantor sums equivalent to any amounts paid to it by the Issuer or, as the case may

be, the Guarantor for the purposes of such payments.

19.

 CONDITIONS OF APPOINTMENT

19.1

 The Agent shall be entitled to deal with money paid to it by the Issuer or the Guarantor for

the purpose of this Agreement in the same manner as other money paid to a banker by its

customers except:

(a)

 that it shall not exercise any right of set-off, lien or similar claim in respect thereof;

(b)

 as provided in subclause 19.2 below; and

(c)

 that it shall not be liable to account to the Issuer or the Guarantor for any interest

thereon.

19.2

 In acting hereunder and in connection with the Notes, the Agent and the other Paying

Agents shall act solely as agents of the Issuer and the Guarantor and will not thereby

assume any obligations towards or relationship of agency or trust for or with any of the

owners or holders of the Notes, Coupons or Talons.

19.3

 The Agent and the other Paying Agents hereby undertake to the Issuer and the Guarantor

to perform such obligations and duties, and shall be obliged to perform such duties and

only such duties as are herein (including Schedule 8 in the case of the Agent), in the

Conditions and in the Procedures Memorandum specifically set forth and no implied duties

or obligations shall be read into this Agreement or the Notes against the Agent and the

other Paying Agents. Each of the Paying Agents (other than the Agent) agrees that if any

information that is required by the Agent to perform the duties set out in Schedule 8

becomes known to it, it will promptly provide such information to the Agent.

19.4

 The Agent may consult with legal and other professional advisers and the opinion of such

advisers shall be full and complete protection in respect of any action taken, omitted or

suffered hereunder in good faith and in accordance with the opinion of such advisers.

19.5

 Each of the Agent and the other Paying Agents shall be protected and shall incur no liability

for or in respect of any action taken, omitted or suffered in reliance upon any instruction,

request or order from the Issuer or the Guarantor or any notice, resolution, direction,

consent, certificate, affidavit, Note, statement, cable, telex or other paper or document

which it reasonably believes to be genuine and to have been delivered, signed or sent by

the proper party or parties or upon written instructions from the Issuer or the Guarantor.

19.6

 Any of the Agent and the other Paying Agents and their officers, directors and employees

may become the owner of, or acquire any interest in, any Notes, Coupons or Talons with

the same rights that it or they would have if the Agent or the relevant other Paying Agent,

as the case may be, concerned were not appointed hereunder, and may engage or be

interested in any financial or other transaction with the Issuer or the Guarantor and may act

on, or as depositary, trustee or agent for, any committee or body of holders of Notes or

Coupons or in connection with any other obligations of the Issuer or the Guarantor as freely

as if the Agent or the relevant other Paying Agent, as the case may be, were not appointed

hereunder.

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34

19.7

 The Issuer and the Guarantor shall provide the Agent with a certified copy of the list of

persons authorised to execute documents and take action on its behalf in connection with

this Agreement and shall notify the Agent immediately in writing if any of such persons

ceases to be so authorised or if any additional person becomes so authorised together, in

the case of an additional authorised person, with evidence satisfactory to the Agent that

such person has been so authorised.

19.8

 Notwithstanding any provision of this Agreement to the contrary, the Agent shall not in any

event be liable for indirect, punitive or consequential loss or damage of any kind

whatsoever (including but not limited to lost profits), whether or not foreseeable, even if the

Agent has been advised of the likelihood of such loss or damage and regardless of whether

the claim for loss or damage is made in negligence, for breach of contract or otherwise.

19.9

 Notwithstanding anything to the contrary in the transaction documents, the Agent shall not

be liable to any person for any matter or thing done or omitted in any way in connection

with the transaction documents save in relation to its own wilful default, negligence, fraud or

wilful misconduct, including that of its officers and employees.

19.10

 The Agent shall not be under any obligation to take (and the Agent shall be entitled to

refrain from taking without liability) any action under this Agency Agreement (including

without limitation, any legal action or proceedings under or in connection with this Agency

Agreement) or the other transaction documents which in its reasonable opinion may be

illegal or contrary to any law or regulation applicable to it (including, without limitation, the

laws of the United States of America or any jurisdiction forming part of it or England and

Wales or Luxembourg) or any direction or regulation of any agency of any such state or

jurisdiction. The Agent may without liability do anything which is, in its reasonable opinion,

necessary to comply with any such law, directive, policy or regulation. In such event, the

Agent shall, where legally permissible and reasonably practicable, take all reasonable steps

to notify the Issuer that it has so refrained.

20.

 RELEASE OF THE GUARANTOR

20.1

 If the Guarantee terminates and the Guarantor is released from its obligations in respect of

the Notes pursuant to Condition 2(c) (

Termination of Guarantee

), the Guarantor will be

deemed to be simultaneously released from its rights and obligations as the Guarantor

under this Agreement from (and including) the Guarantee Termination Date, without

prejudice to any obligations which may have accrued prior to that time, without the need for

any further act or thing to be done.

20.2

 Pursuant to the terms of Condition 2(c), the Issuer shall deliver to the Agent a notice of

such termination as soon as reasonably practicable after such termination.

21.

 COMMUNICATION BETWEEN THE PARTIES

A copy of all communications relating to the subject matter of this Agreement between the

Issuer, the Guarantor and the Noteholders or Couponholders and any of the Paying Agents

(other than the Agent) shall be sent to the Agent by the other relevant Paying Agent.

22.

 CHANGES IN AGENT AND OTHER PAYING AGENTS

22.1

 Each of the Issuer and the Guarantor agrees that, for so long as any Note is outstanding, or

until moneys for the payment of all amounts in respect of all outstanding Notes have been

made available to the Agent and have been returned to the Issuer or, as the case may be,

the Guarantor as provided herein:

0010155-0003437 UKO2: 2005996996.8

35

(a)

 so long as any Notes are listed on any Stock Exchange, there will at all times be a

Paying Agent (which may be the Agent) with a specified office in such place as may

be required by the rules and regulations of the relevant Stock Exchange or other

relevant authority;

(b)

 there will at all times be a Paying Agent with a specified office outside Norway; and

(c)

 there will at all times be an Agent.

In addition, the Issuer and the Guarantor shall forthwith appoint a Paying Agent having a

specified office in New York City in the circumstances described in the second paragraph of

Condition 4(d). Any variation, termination, appointment or change shall only take effect

(other than in the case of insolvency (as provided in subclause 22.5 below), when it shall be

of immediate effect) after not less than 30 nor more than 45 days' prior notice thereof shall

have been given to the Noteholders in accordance with Condition 12.

22.2

 The Agent may (subject as provided in subclause 22.4 below) at any time resign as Agent

by giving at least 90 days' written notice to the Issuer and the Guarantor of such intention

on its part, specifying the date on which its desired resignation shall become effective.

22.3

 The Agent may (subject as provided in subclause 22.4 below) be removed at any time by

the Issuer and the Guarantor on at least 30 days' notice by the filing with it of an instrument

in writing signed on behalf of the Issuer and the Guarantor specifying such removal and the

date when it shall become effective.

22.4

 Any resignation under subclause 22.2 or removal under subclauses 22.3 or 22.5 shall only

take effect upon the appointment by the Issuer and the Guarantor as hereinafter provided,

of a successor Agent and (other than in cases of insolvency of the Agent) on the expiry of

the notice to be given under clause 24. The Issuer and the Guarantor agree with the Agent

that if, by the day falling ten days before the expiry of any notice under subclause 22.2, the

Issuer and the Guarantor have not appointed a successor Agent, then the Agent shall be

entitled, on behalf of the Issuer and the Guarantor to appoint as a successor Agent in its

place a reputable financial institution of good standing which the Issuer shall approve (such

approval not to be unreasonably withheld or delayed).

22.5

 In case at any time the Agent resigns, or is removed, or becomes incapable of acting, or is

adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an

assignment for the benefit of its creditors or consents to the appointment of an

administrator, liquidator or administrative or other receiver of all or a substantial part of its

property, or admits in writing its inability to pay or meet its debts as they mature or

suspends payment thereof, or if any order of any court is entered approving any petition

filed by or against it under the provisions of any applicable bankruptcy or insolvency law or

if a receiver of it or of all or a substantial part of its property is appointed or if any officer

takes charge or control of it or of its property or affairs for the purpose of rehabilitation,

conservation or liquidation, a successor Agent, which shall be a reputable financial

institution of good standing may be appointed by the Issuer and the Guarantor by an

instrument in writing filed with the successor Agent. Upon the appointment as aforesaid of

a successor Agent and acceptance by the latter of such appointment and (other than in

case of insolvency of the Agent when it shall be of immediate effect) upon expiry of the

notice to be given under clause 24 the Agent so superseded shall cease to be the Agent

hereunder.

22.6

 Subject to subclause 22.1, the Issuer and the Guarantor may, after prior consultation with

the Agent, terminate the appointment of any of the other Paying Agents at any time and/or

appoint one or more further other Paying Agents by giving to the Agent, and to the relevant

other Paying Agent at least 45 days' notice in writing to that effect (other than in the case of

0010155-0003437 UKO2: 2005996996.8

36

insolvency of the other Paying

Agent).

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37

22.7

 Subject to subclause 22.1, all or any of the Paying Agents may resign their respective

appointments hereunder at any time by giving the Issuer, the Guarantor and the Agent at

least 45 days' written notice to that effect.

22.8

 Upon its resignation or removal becoming effective, the Agent or the relevant Paying Agent:

(a)

 shall forthwith transfer all moneys held by it hereunder and, if applicable, deliver the

records referred to in subclauses 12.4 and 13.7 to the successor Agent hereunder;

and

(b)

 shall be entitled to the payment by the Issuer, failing which the Guarantor of its

commissions, fees and expenses for the services theretofore rendered hereunder in

accordance with the terms of clause 16.

22.9

 Upon its appointment becoming effective, a successor Agent and any new Paying Agent

shall, without further act, deed or conveyance, become vested with all the authority, rights,

powers, trusts, immunities, duties and obligations of its predecessor or, as the case may be,

a Paying Agent with like effect as if originally named as Agent or (as the case may be) a

Paying Agent hereunder.

22.10

 If either the Issuer or Guarantor is required to withhold or deduct any FATCA Withholding in

connection with any payments due on the Notes and such FATCA Withholding would not

have arisen but for the Paying Agent not being or having ceased to be a person to whom

payments are free from FATCA Withholding, the Issuer or Guarantor will be entitled, during

the period in which that Paying Agent is not a person to whom payments are free from

FATCA Withholding, to terminate the Paying Agent with 10 days’ notice and such

termination will be effective from any such time specified in writing to such Paying Agent.

23.

 MERGER AND CONSOLIDATION

Any corporation into which the Agent or any other Paying Agent may be merged or

converted, or any corporation with which the Agent or any of the other Paying Agents may

be consolidated, or any corporation resulting from any merger, conversion or consolidation

to which the Agent or any of the other Paying Agents shall be a party, or any corporation to

which the Agent or any of the other Paying Agents shall sell or otherwise transfer all or

substantially all the assets of the Agent or any other Paying Agent, or any corporation to

which the Agent or any other Paying Agent shall sell or otherwise transfer all or

substantially all of its corporate trust business shall, on the date when such merger,

conversion, consolidation or transfer becomes effective and to the extent permitted by any

applicable laws, become the successor Agent or, as the case may be, other Paying Agent

under this Agreement without the execution or filing of any paper or any further act on the

part of the parties hereto, unless otherwise required by the Issuer or the Guarantor, and

after the said effective date all references in this Agreement to the Agent or, as the case

may be, such other Paying Agent shall be deemed to be references to such corporation.

Written notice of any such merger, conversion, consolidation or transfer shall forthwith be

given to the Issuer and the Guarantor by the Agent or other Paying Agent.

24.

 NOTIFICATION OF CHANGES TO PAYING AGENTS

Following receipt of notice of resignation from the Agent or any other Paying Agent and

forthwith upon appointing a successor Agent or, as the case may be, further or other

Paying Agents or on giving notice to terminate the appointment of the Agent or, as the case

may be, other Paying Agent, the Agent (on behalf of and at the expense of the Issuer,

failing which the Guarantor) shall give or cause to be given not more than 45 days' nor less

than 30 days' notice thereof to the Noteholders in accordance with the Conditions.

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38

25.

 CHANGE OF SPECIFIED OFFICE

If the Agent or any other Paying Agent determines to change its specified office it shall

(after having, in any such case other than a change of specified office within the same city,

obtained the prior written approval of the Issuer and the Guarantor thereto) give to the

Issuer, the Guarantor and (if applicable) the Agent written notice of such determination

giving the address of the new specified office which shall be in the same city and stating the

date on which such change is to take effect, which shall not be less than 45 days thereafter.

The Agent (on behalf of the Issuer, failing which the Guarantor) but at its own expense)

shall within 15 days of receipt of such notice (unless the appointment of the Agent or the

other relevant Paying Agent, as the case may be, is to terminate pursuant to clause 22 on

or prior to the date of such change) give or cause to be given not more than 45 days' nor

less than 30 days' notice thereof to the Noteholders in accordance with the Conditions.

26.

 NOTICES AND COMMUNICATION

26.1

 Any notice or communication given hereunder shall be sufficiently given or served:

(a)

 if delivered in person to the relevant address specified on the signature pages

hereof or such other address as may be notified by the recipient in accordance with

this clause and, if so delivered, shall be deemed to have been delivered at time of

receipt; or

(b)

 if by email, when sent, subject to no delivery failure notification being received by

the sender within 24 hours of the time of sending, to the relevant email address

specified on the signature pages hereof or such other email address as may be

notified by the recipient in accordance with this clause; or

(c)

 if sent by facsimile to the relevant number specified on the signature pages hereof

or such other address as may be notified by the recipient in accordance with this

clause and, if so sent, shall be deemed to have been delivered immediately after

transmission provided such transmission is confirmed when an acknowledgement of

receipt is received.

26.2

 Where a communication is received after business hours it shall be deemed to be received

and become effective on the next business day. Every communication shall be irrevocable

save in respect of any manifest error therein.

26.3

 In no event shall the Agent or any other entity of The Bank of New York Mellon Group be

liable for any losses arising to the Agent or any other entity of The Bank of New York

Mellon Group receiving or transmitting any data from any Issuer, any Authorised Person or

any party to the transaction via any non-secure method of transmission or communication,

such as, but without limitation, by facsimile or email. The parties hereto accept that some

methods of communication are not secure and the Agent or any other entity of The Bank of

New York Mellon Group shall incur no liability for receiving Instructions via any such non-

secure method. The Agent or any other entity of The Bank of New York Mellon Group is

authorised to comply with and rely upon any such notice, Instructions or other

communications believed by it to have been sent or given by an Authorised Person or an

appropriate party to the transaction (or authorised representative thereof). The Issuer or

authorised officer of the Issuer shall use all reasonable endeavours to ensure that

Instructions transmitted to the Agent or any other entity of The Bank of New York Mellon

Group pursuant to this Agreement are complete and correct. Any Instructions shall be

conclusively deemed to be valid Instructions from the Issuer or authorised officer of the

Issuer to the Agent or any other entity of The Bank of New York Mellon Group for the

purposes of this Agreement.

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39

27.

 TAXES AND STAMP DUTIES

The Issuer, failing which the Guarantor, agrees to pay any and all stamp and other

documentary taxes or duties which may be payable in connection with the execution,

delivery, performance and enforcement of this Agreement.

28.

 CURRENCY INDEMNITY

If, under any applicable law and whether pursuant to a judgment being made or registered

against the Issuer and/or the Guarantor or in the liquidation, insolvency or analogous

process of the Issuer and/or the Guarantor or for any other reason, any payment under or

in connection with this Agreement is made or falls to be satisfied in a currency (the

other

currency

) other than that in which the relevant payment is expressed to be due (the

required currency

) under this Agreement, then, to the extent that the payment (when

converted into the required currency at the rate of exchange on the date of payment or, if it

is not practicable for the Agent or the relevant other Paying Agent to purchase the required

currency with the other currency on the date of payment, at the rate of exchange as soon

thereafter as it is practicable for it to do so or, in the case of a liquidation, insolvency or

analogous process at the rate of exchange on the latest date permitted by applicable law

for the determination of liabilities in such liquidation, insolvency or analogous process)

actually received by the Agent or the relevant other Paying Agent falls short of the amount

due under the terms of this Agreement, the Issuer and the Guarantor jointly and severally

undertake that they shall, as a separate and independent obligation, indemnify and hold

harmless the Agent and each other Paying Agent against the amount of such shortfall. For

the purpose of this clause,

rate of exchange

means the rate at which the Agent or the

relevant other Paying Agent is able on the relevant date to purchase the required currency

with the other currency and shall take into account any premium and other costs of

exchange.

29.

 AMENDMENTS

This Agreement may be amended in writing by agreement between the Issuer, the

Guarantor, the Agent and the other Paying Agents, but without the consent of any

Noteholder or Couponholder, for the purpose of curing any ambiguity or of curing,

correcting or supplementing any defective provision contained herein or in any manner

which the parties may mutually deem necessary or desirable and which shall not be

materially prejudicial to the interests of the Noteholders. The Issuer, the Guarantor and the

Agent may also agree any modification pursuant to Condition 13 of the Notes.

30.

 DESCRIPTIVE HEADINGS

The descriptive headings in this Agreement are for convenience of reference only and shall

not define or limit the provisions hereof.

31.

 CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agency Agreement or any agency agreement

supplemental hereto has no right under the Contracts (Rights of Third Parties) Act 1999 to

enforce any term of this Agency Agreement or any agency agreement supplemental hereto,

but this does not affect any right or remedy of a third party which exists or is available apart

from that Act.

32.

 GOVERNING LAW AND SUBMISSION TO JURISDICTION

32.1

 This Agreement and any non-contractual obligations arising out of or in connection

with it are governed by, and shall be construed in accordance with, English law.

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40

32.2

 The courts of England are to have exclusive jurisdiction to settle any disputes which may

arise of out of or in connection with this Agreement (including a dispute relating to any non-

contractual obligations arising out of or in connection with this Agreement) and accordingly

any legal action or proceedings arising out of or in connection with this Agreement

(

Proceedings

) (including any Proceedings relating to any non-contractual obligations

arising out of or in connection with this Agreement) may be brought in such courts. The

Issuer irrevocably submits to the jurisdiction of such courts and waives any objection to

Proceedings in any such courts whether on the ground of venue or on the ground that

Proceedings have been brought in an inconvenient forum. This submission is made for the

benefit of each of the Paying Agents and, to the extent allowed by applicable law, shall not

limit the right of any of them to take Proceedings in any other court of competent jurisdiction

nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of

Proceedings in any other jurisdiction (whether concurrently or not).

The Issuer and the Guarantor irrevocably appoints Equinor UK Limited (whose offices are

at the date of this Agreement at One Kingdom Street, Paddington Central, London W2

6BD) as their authorised agent for service of process in England. If for any reason such

agent shall cease to be such agent for service of process, the Issuer and/or the Guarantor,

as the case may be, shall forthwith, on request of the Agent, appoint a new agent for

service of process in England and deliver to the Agent a copy of the new agent's

acceptance of that appointment within 30 days. Nothing in this Agreement shall affect the

right to serve process in any other manner permitted by law.

33.

 COUNTERPARTS

33.1

 This Agreement may be executed by any one or more of the parties hereto in any number

of counterparts, each of which shall be deemed to be an original, but all such counterparts

shall together constitute one and the same instrument.

34.

 GENERAL

34.1

 If any provision in or obligation under this Agreement is or becomes invalid, illegal or

unenforceable in any respect under the law of any jurisdiction, that will not affect or impair

(i) the validity, legality or enforceability under the law of that jurisdiction of any other

provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability

under the law of any other jurisdiction of that or any other provision in or obligation under

this Agreement.

35.

 EU CONTRACTUAL RECOGNITION OF BAIL-IN

Notwithstanding and to the exclusion of any other term of this Agreement or any other

agreements, arrangements, or understanding between the parties to this Agreement, each

of the parties to this Agreement acknowledges and accepts that a BRRD Liability arising

under this Agreement may be subject to the exercise of Bail-in Powers by the Relevant

Resolution Authority, and acknowledges, accepts, and agrees to be bound by:

(a)

 the effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation

to any BRRD Liability of any BRRD Entity (a

Relevant BRRD Party

) to any other party

under this Agreement, that (without limitation) may include and result in any of the

following, or some combination thereof:

(i)

 the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due

thereon;

(ii)

 the conversion of all, or a portion, of the BRRD Liability into shares, other securities

or other obligations of the Relevant BRRD Party or another person, and the issue to

0010155-0003437 UKO2: 2005996996.8

41

or

 conferral on any other party to this Agreement of such shares, securities or

obligations;

0010155-0003437 UKO2: 2005996996.8

42

(iii)

 the cancellation of any BRRD Liability; and

(iv)

 the amendment or alteration of the amounts due in relation to any BRRD Liability,

including any interest, if applicable, thereon, or the date on which any payments are

due, including by suspending payment for a temporary period; and

(b)

 the variation of the terms of this Agreement as deemed necessary by the Relevant

Resolution Authority, to give effect to the exercise of Bail-in Powers by the Relevant

Resolution Authority.

For the purposes of this clause 35:

Bail-in Legislation

means, in relation to a member state of the European Economic Area

which has implemented, or which at any time implements, the BRRD, the relevant

implementing law, regulation, rule or requirement as described in the EU Bail-in Legislation

Schedule from time to time;

Bail-in Powers

means any Write-down and Conversion Powers as defined in the EU Bail-

in Legislation Schedule, in relation to the relevant Bail-in Legislation;

BRRD

means Directive 2014/59/EU of 15 May 2014 establishing the framework for the

recovery and resolution of credit institutions and investment firms, as amended or replaced

from time to time;

BRRD Entity

means any party to this Agreement that is subject to Bail-in Powers;

BRRD Liability

means any liability in respect of which the relevant Bail-in Powers may be

exercised;

EU Bail-in Legislation Schedule

means the document described as such, then in effect,

and published by the Loan Market Association (or any successor person) from time to time;

and

Relevant Resolution Authority

means, in respect of any Relevant BRRD Party, the

resolution authority with the ability to exercise any Bail-in Powers in relation to such

Relevant BRRD Party.

IN WITNESS WHEREOF

the parties hereto have executed this Agreement as of the date first

above written.

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43

SCHEDULE 1

TERMS AND CONDITIONS OF THE NOTES OTHER THAN VPS NOTES

This Note is one of a Series (as defined below) of Notes issued by Equinor ASA (the

Issuer

)

pursuant to the Agency Agreement (as defined below).

References herein to the

Notes

shall be references to the Notes of this Series and shall

mean:

(i)

 in relation to any Notes represented by a global Note, units of each Specified

Denomination in the Specified Currency;

(ii)

 definitive Notes issued in exchange for a global Note; and

(iii)

 any global Note.

The Notes and the Coupons (as defined below) also have the benefit of an amended and

restated Agency Agreement (such Agency Agreement, as modified and/or restated and/or

supplemented from time to time, the

Agency Agreement

) dated 11 May 2023 and made

among the Issuer, Equinor Energy AS (the

Guarantor

), The Bank of New York Mellon,

London Branch as issuing and principal paying agent (the

Agent

, which expression shall

include any successor agent specified in the applicable Final Terms) and the other paying

agents named therein (together with the Agent, the

Paying Agents

, which expression shall

include any additional or successor paying agents).

If so indicated in the applicable Final Terms, the Notes will (subject to Condition 2(c)

(

Termination of Guarantee

)) have the benefit of the deed of guarantee executed by the

Guarantor (such deed as modified and/or restated and/or supplemented from time to time,

the

Guarantee

) dated 13 May 2020.

Interest bearing definitive Notes have interest coupons (

Coupons

) and in the case of Notes

which, when issued in definitive form, have more than 27 interest payments remaining talons

for further Coupons (

Talons

) attached on issue. Any reference herein to Coupons or

coupons shall, unless the context otherwise requires, be deemed to include a reference to

Talons or talons.

The final terms for this Note (or the relevant provisions thereof) are set out in Part A of the

Final Terms attached to or endorsed on this Note and complete these Terms and

Conditions. References to the

applicable Final Terms

are to Part A of the Final Terms (or

the relevant provisions thereof) attached to or endorsed on this Note.

Any reference to

Noteholders

shall mean the holders of the Notes, and shall, in relation to

any Notes represented by a global Note, be construed as provided below. Any reference

herein to

Couponholders

shall mean the holders of any Coupons, and shall, unless the

context otherwise requires, include the holders of any Talons.

As used herein,

Tranche

means all Notes with the same Issue Date and which are subject

to the same Final Terms and

Series

means a Tranche of Notes together with any further

Tranche or Tranches of Notes which are (i) expressed to be consolidated and form a single

series and (ii) identical in all respects (including as to listing and admission to trading) except

for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices.

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44

The Noteholders and the Couponholders are entitled to the benefit of the Deed of Covenant

(such Deed of Covenant, as modified and/or restated and/or supplemented from time to

time, the

Deed of Covenant

) dated 13 May 2020 and made by the Issuer. The original of

the Deed of Covenant is held by a common depositary on behalf of Euroclear (as defined

below) and Clearstream, Luxembourg (as defined below).

Copies of the Agency Agreement and the Deed of Covenant (i) are available for inspection

or collection during normal business hours at the specified office of each of the Agent and

the other Paying Agents or (ii) may be provided by email to a Noteholder following their prior

written request to the Agent or any other Paying Agent and provision of proof of holding and

identity (in a form satisfactory to the Agent or the relevant Paying Agent, as the case may

be). When the Notes are to be admitted to trading on the main market of the London Stock

Exchange plc, the applicable Final Terms will be published on the website of the London

Stock Exchange plc through a regulatory information service. The applicable Final Terms

will, during normal business hours, be available for viewing at and copies may be obtained

from the registered office of the Issuer and from the specified office of each of the Paying

Agents by a Noteholder upon such Noteholder producing evidence satisfactory to the

relevant Paying Agent as to its holding of such Notes and its identity. The Noteholders and

the Couponholders are deemed to have notice of, and are entitled to the benefit of, all the

provisions of the Agency Agreement and the applicable Final Terms which are applicable to

them.

Words and expressions defined in the Agency Agreement or used in the applicable Final

Terms shall have the same meanings where used in these Terms and Conditions unless the

context otherwise requires or unless otherwise stated and provided that, in the event of

inconsistency between the Agency Agreement and the applicable Final Terms, the

applicable Final Terms will prevail.

1. Form, Denomination and Title

The Notes are in bearer form and, in the case of definitive Notes, serially numbered, in the

currency (the

Specified Currency

) and the denominations (the

Specified

Denomination(s)

) specified in the applicable Final Terms. Notes of one Specified

Denomination may not be exchanged for Notes of another Specified Denomination.

This Note may be a Fixed Rate Note, a Floating Rate Note, a Zero Coupon Note or a

combination of any of the foregoing, depending upon the Interest Basis shown in the

applicable Final Terms.

Definitive Notes are issued with Coupons attached, unless they are Zero Coupon Notes in

which case references to Coupons and Couponholders in these Terms and Conditions are

not applicable.

Subject as set out below, title to the Notes and Coupons will pass by delivery. The Issuer,

the Guarantor, and any Paying Agent may deem and treat the bearer of any Note or Coupon

as the absolute owner thereof (whether or not overdue and notwithstanding any notice of

ownership or writing thereon or notice of any previous loss or theft thereof) for all purposes

but, in the case of any global Note, without prejudice to the provisions set out in the next

succeeding paragraph.

For so long as any of the Notes is represented by a global Note held on behalf of Euroclear

Bank SA/NV (

Euroclear

) and/or Clearstream Banking S.A. (

Clearstream, Luxembourg

)

each person (other than Euroclear or Clearstream, Luxembourg) who is for the time being

0010155-0003437 UKO2: 2005996996.8

45

shown in the records of Euroclear or of Clearstream, Luxembourg as the holder of a

particular nominal amount of such Notes (in which regard any certificate or other document

issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of such Notes

standing to the account of any person shall be conclusive and binding for all purposes save

in the case of manifest error) shall be treated by the Issuer, the Guarantor (in the case of

Notes having the benefit of the Guarantee), the Agent and any other Paying Agent as the

holder of such nominal amount of such Notes for all purposes other than with respect to the

payment of principal or interest on such nominal amount of such Notes, for which purpose

the bearer of the relevant global Note shall be treated by the Issuer, the Guarantor (in the

case of Notes having the benefit of the Guarantee), the Agent and any other Paying Agent

as the holder of such nominal amount of such Notes in accordance with and subject to the

terms of the relevant global Note and the expressions

Noteholder

and

holder of Notes

and

related expressions shall be construed accordingly. Notes which are represented by a global

Note will be transferable only in accordance with the rules and procedures for the time being

of Euroclear or of Clearstream, Luxembourg, as the case may be.

2. Status of the Notes and the Guarantee

(a)

 Status of the Notes

The Notes and the relative Coupons (if any) constitute unsecured and unsubordinated

obligations of the Issuer and shall at all times rank

pari passu

and without any preference

among themselves. The payment obligations of the Issuer under the Notes and the relative

Coupons (if any) shall, save for such exceptions as may be provided by applicable

legislation, at all times rank at least equally with all its other present and future unsecured

and unsubordinated obligations.

(b)

 Status of Guarantee

The obligations of the Guarantor under the Guarantee constitute unsecured and

unsubordinated obligations of the Guarantor and shall at all times rank

pari passu

and

without any preference among themselves and (with the exception of obligations in respect

of national and local taxes and certain other statutory exceptions and subject as aforesaid)

at least equally with all its other present and future unsecured and unsubordinated

obligations.

(c)

 Termination of Guarantee

(i)

 The Guarantee shall automatically and unconditionally be terminated on the

Guarantee Termination Date. As soon as reasonably practicable after such

termination (and by no later than 15 Business Days (as defined in Condition 3(b)(i)

(

Interest Payment Dates

)) after the Guarantee Termination Date), the Guarantor or

the Issuer shall provide notice of such termination to the Noteholders and

Couponholders in accordance with Condition 12 (

Notices

).

For the purposes of this Condition 2(c)(i):

Guarantee Termination Date

means the first date on which the aggregate amount

of indebtedness for borrowed money for which the Guarantor is an obligor (as a

guarantor, co-issuer or borrower) does not exceed 10 per cent. of the aggregate

principal amount of indebtedness for borrowed money of the Issuer and its

Subsidiaries (as defined in Condition 8 (

Events of Default

)), on a consolidated basis,

as of such time; and

0010155-0003437 UKO2: 2005996996.8

46

the amount of the Guarantor's indebtedness for borrowed money shall not include (A)

any Notes subject to this Condition 2(c) (

Termination of Guarantee

), (B) any other

debt the terms of which permit the termination of the Guarantor's guarantee of such

debt under similar circumstances, as long as the Guarantor's obligations in respect of

such other debt are terminated at substantially the same time as the Guarantee, and

(C) any debt that is being refinanced at substantially the same time that the

Guarantee of the Notes is being terminated,

provided that

any obligations of the

Guarantor in respect of the debt that is incurred in the refinancing shall be included in

the calculation of the Guarantor's indebtedness for borrowed money.

(ii)

 For the avoidance of doubt, the Notes may not be declared due and payable

pursuant to Condition 8(e) (

Events of Default

) as a result of the Guarantee being

terminated pursuant to this Condition 2(c) (

Termination of Guarantee

).

3. Interest

(a)

 Interest on Fixed Rate Notes

Each Fixed Rate Note bears interest from (and including) the Interest Commencement Date

at the rate(s) per annum equal to the Rate(s) of Interest payable in arrear on the Interest

Payment Date(s) in each year and on the Maturity Date if that does not fall on an Interest

Payment Date.

If the Notes are in definitive form, except as provided in the applicable Final Terms, the

amount of interest payable on each Interest Payment Date in respect of the Fixed Interest

Period ending on (but excluding) such date will amount to the Fixed Coupon Amount.

Payments of interest on any Interest Payment Date will, if so specified in the applicable Final

Terms, amount to the Broken Amount(s) so specified.

As used in these Conditions,

Fixed Interest Period

means the period from (and including)

an Interest Payment Date (or the Interest Commencement Date) to (but excluding) the next

(or first) Interest Payment Date.

Except in the case of Notes in definitive form where a Fixed Coupon Amount or Broken

Amount is specified in the applicable Final Terms, interest shall be calculated in respect of

any period by applying the Rate of Interest to:

(A)

 in the case of Fixed Rate Notes which are represented by a Global Note, the

aggregate outstanding nominal amount of the Fixed Rate Notes represented by such

Global Note; or

(B)

 in the case of Fixed Rate Notes in definitive form, the Calculation Amount,

and, in each case, multiplying such sum by the applicable Day Count Fraction.

The resultant figure (including after application of any Fixed Coupon Amount or Broken

Amount to the Calculation Amount in the case of Fixed Rate Notes in definitive form) shall be

rounded to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit

being rounded upwards or otherwise in accordance with applicable market convention.

Where the Specified Denomination of a Fixed Rate Note in definitive form is a multiple of the

Calculation Amount, the amount of interest payable in respect of such Fixed Rate Note shall

be the product of the amount (determined in the manner provided above) for the Calculation

0010155-0003437 UKO2: 2005996996.8

47

Amount and the amount by which the Calculation Amount is multiplied to reach the Specified

Denomination, without any further rounding.

In these Conditions,

Day Count Fraction

means, in respect of the calculation of an amount

of interest in accordance with this Condition 3(a) (

Interest on Fixed Rate Notes

):

(i)

 if "Actual/Actual (ICMA)" is specified in the applicable Final Terms:

(a)

 in the case of Notes where the number of days in the relevant period from

(and including) the most recent Interest Payment Date (or, if none, the Interest

Commencement Date) to (but excluding) the relevant payment date (the

Accrual Period) is equal to or shorter than the Determination Period during

which the Accrual Period ends, the number of days in such Accrual Period

divided by the product of (1) the number of days in such Determination Period

and (2) the number of Determination Dates (as specified in the applicable

Final Terms) that would occur in one calendar year; or

(b)

 in the case of Notes where the Accrual Period is longer than the

Determination Period during which the Accrual Period ends, the sum of:

(1)

 the number of days in such Accrual Period falling in the Determination

Period in which the Accrual Period begins divided by the product of (x)

the number of days in such Determination Period and (y) the number

of Determination Dates (as specified in the applicable Final Terms)

that would occur in one calendar year; and

(2)

 the number of days in such Accrual Period falling in the next

Determination Period divided by the product of (x) the number of days

in such Determination Period and (y) the number of Determination

Dates that would occur in one calendar year; and

(ii)

 if "30/360" is specified in the applicable Final Terms, the number of days in the period

from (and including) the most recent Interest Payment Date (or, if none, the Interest

Commencement Date) to (but excluding) the relevant payment date (such number of

days being calculated on the basis of a year of 360 days with 12 30-day months)

divided by 360.

In these Conditions:

Determination Period

means each period from (and including) a Determination Date to but

excluding the next Determination Date (including, where either the Interest Commencement

Date or the final Interest Payment Date is not a Determination Date, the period commencing

on the first Determination Date prior to, and ending on the first Determination Date following

after, such date); and

sub-unit

means, with respect to any currency other than euro, the lowest amount of such

currency that is available as legal tender in the country of such currency and, with respect to

euro, means one cent.

(b)

 Interest on Floating Rate Notes

(i)

Interest Payment Dates

0010155-0003437 UKO2: 2005996996.8

48

Each Floating Rate Note bears interest from (and including) the Interest

Commencement Date and such interest will be payable in arrear on either:

(A)

 the Specified Interest Payment Date(s) (each an

Interest Payment Date

) in

each year specified in the applicable Final Terms; or

(B)

 if no Specified Interest Payment Date(s) is/are specified in the applicable Final

Terms, each date (each an

Interest Payment Date

) which falls the number of

months or other period specified as the Specified Period in the applicable

Final Terms after the preceding Interest Payment Date or, in the case of the

first Interest Payment Date, after the Interest Commencement Date.

Such interest will be payable in respect of each Interest Period (which expression,

shall, in these Terms and Conditions, mean the period from (and including) an

Interest Payment Date (or the Interest Commencement Date) to (but excluding) the

next (or first) Interest Payment Date or the relevant payment date if the Notes

become payable on a date other than an Interest Payment Date).

If a Business Day Convention is specified in the applicable Final Terms and (x) if

there is no numerically corresponding day in the calendar month in which an Interest

Payment Date should occur or (y) if any Interest Payment Date would otherwise fall

on a day which is not a Business Day, then, if the Business Day convention specified

is:

(1)

 in any case where Specified Periods are specified in accordance with

Condition 3(b)(i)(B) above, the Floating Rate Convention, such Interest

Payment Date (i) in the case of (x) above, shall be the last day that is a

Business Day in the relevant month and the provisions of (B) below shall

apply

mutatis mutandis

or (ii) in the case of (y) above, shall be postponed to

the next day which is a Business Day unless it would thereby fall into the next

calendar month, in which event (A) such Interest Payment Date shall be

brought forward to the immediately preceding Business Day and (B) each

subsequent Interest Payment Date shall be the last Business Day in the

month which falls in the Specified Period after the preceding applicable

Interest Payment Date occurred; or

(2)

 the Following Business Day Convention, such Interest Payment Date shall be

postponed to the next day which is a Business Day; or

(3)

 the Modified Following Business Day Convention, such Interest Payment Date

shall be postponed to the next day which is a Business Day unless it would

thereby fall into the next calendar month, in which event such Interest

Payment Date shall be brought forward to the immediately preceding

Business Day; or

(4)

 the Preceding Business Day Convention, such Interest Payment Date shall be

brought forward to the immediately preceding Business Day.

In this Condition,

Business Day

means:

(A)

 a day on which commercial banks and foreign exchange markets settle

payments and are open for general business (including dealing in foreign

exchange and foreign currency deposits) in any Additional Business Centre

(other than TARGET System) specified in the applicable Final Terms;

0010155-0003437 UKO2: 2005996996.8

49

(B)

 if TARGET System is specified as an Additional Business Centre in the

applicable Final Terms, a day on which the Trans-European Automated Real-

Time Gross Settlement Express Transfer System (known as TARGET or T2)

or any successor or replacement for that system (the

TARGET System

) is

open; and

(C)

 either (1) in relation to any sum payable in a Specified Currency other than

euro, a day on which commercial banks and foreign exchange markets settle

payments and are open for general business (including dealing in foreign

exchange and foreign currency deposits) in the principal financial centre of the

country of the relevant Specified Currency (which if the Specified Currency is

New Zealand dollars shall be Auckland) or (2) in relation to any sum payable

in euro, a day on which the TARGET System is open.

(ii)

Rate of Interest

The Rate of Interest payable from time to time in respect of Floating Rate Notes will

be determined in the manner specified in the applicable Final Terms.

(A)

 ISDA Determination for Floating Rate Notes

Where ISDA Determination is specified in the applicable Final Terms as the manner

in which the Rate of Interest is to be determined, the Rate of Interest for each Interest

Period will be the relevant ISDA Rate plus or minus (as indicated in the applicable

Final Terms) the Margin (if any). For the purposes of this sub-paragraph (A),

ISDA

Rate

for an Interest Period means a rate equal to the Floating Rate that would be

determined by the Agent or the Calculation Agent, as applicable, under an interest

rate swap transaction if the Agent or the Calculation Agent, as applicable, were acting

as Calculation Agent (as defined in the ISDA Definitions (as defined below)) for that

swap transaction under the terms of an agreement incorporating (i) if “2006 ISDA

Definitions” is specified in the applicable Final Terms, the 2006 ISDA Definitions as

amended and updated as at the Issue Date of the first Tranche of the Notes,

published by the International Swaps and Derivatives Association, Inc. (

ISDA

); or (ii)

if “2021 ISDA Definitions” is specified in the applicable Final Terms, the latest

version of the 2021 ISDA Interest Rate Derivatives Definitions as at the Issue Date of

the first Tranche of the Notes, published by ISDA (together, the

ISDA Definitions

)

and under which:

(1)

 the Floating Rate Option is as specified in the applicable Final Terms;

(2)

 the Designated Maturity, if applicable, is a period specified in the applicable

Final Terms;

(3)

 the relevant Reset Date is the day specified in the applicable Final Terms;

(4)

 if the Floating Rate Option is an Overnight Floating Rate Option, the

Overnight Rate Compounding Method is one of the following as specified in

the applicable Final Terms:

(A)

 Compounding with Lookback;

(B)

 Compounding with Observation Period Shift; or

(C)

 Compounding with Lockout; and

0010155-0003437 UKO2: 2005996996.8

50

(5)

 if the Floating Rate Option is a Compounded Index Floating Rate Option, the

Index Method is Compounded Index Method with Observation Period Shift, as

specified in the applicable Final Terms.

In connection with the Overnight Rate Compounding Method, references in the ISDA

Definitions to numbers or other items specified in the relevant confirmation shall be

deemed to be references to the numbers or other items specified for such purpose in

the applicable Final Terms.

For the purposes of this sub-paragraph (A), (i)

Floating Rate

,

Floating Rate Option

,

Designated Maturity

,

Reset Date

,

Overnight Floating Rate Option

,

Overnight

Rate Compounding Method

,

Compounding with Lookback

,

Compounding with

Observation Period Shift

,

Compounding with Lockout

,

Averaging with

Lookback

,

Averaging with Observation Period Shift

,

Averaging with Lockout

,

Compounded Index Floating Rate Option

,

Index Method

and

Compounded

Index Method with Observation Period Shift

have the meanings given to those

terms in the ISDA Definitions, (ii) the definition of

Banking Day

in the ISDA

Definitions shall be amended to insert after the words "are open for" in the second

line, the word "general" and (iii)

Euro-zone

means the region comprised of Member

States of the European Union that adopt the single currency in accordance with the

Treaty on European Union.

(B)

 Screen Rate Determination for Floating Rate Notes – Term Rate

Where “Screen Rate Determination” is specified in the applicable Final Terms as the

manner in which the Rate of Interest is to be determined and “Term Rate” is specified

in the applicable Final Terms to be “Applicable”, the Rate of Interest for each Interest

Period will, subject to Condition 3(b)(viii) (

Benchmark Discontinuation

) and subject as

provided below, be either:

(1)

 the offered quotation; or

(2)

 the arithmetic mean (rounded if necessary to the fifth decimal place, with

0.000005 being rounded upwards) of the offered quotations,

(expressed as a percentage rate per annum) for the Reference Rate (being either

EURIBOR or NIBOR or STIBOR, in each case for the relevant currency and/or

period, all as specified in the applicable Final Terms) which appears or appear, as the

case may be, on the Relevant Screen Page (or such replacement page on that

service which displays the information) as at the Specified Time on the Interest

Determination Date in question plus or minus (as indicated in the applicable Final

Terms) the Margin (if any), all as determined by the Agent or the Calculation Agent,

as applicable. If five or more of such offered quotations are available on the Relevant

Screen Page, the highest (or, if there is more than one such highest quotation, one

only of such quotations) and the lowest (or, if there is more than one such lowest

quotation, one only of such quotations) shall be disregarded by the Agent or the

Calculation Agent, as applicable, for the purpose of determining the arithmetic mean

(rounded as provided above) of such offered quotations.

If, other than in the circumstances described in Condition 3(b)(viii) (

Benchmark

Discontinuation

) below, the Relevant Screen Page is not available or if, in the case of

Condition 3(b)(ii)(B)(1), no such offered quotation appears or, in the case of Condition

3(b)(ii)(B)(2), fewer than three such offered quotations appear, in each case as at the

0010155-0003437 UKO2: 2005996996.8

51

time specified in Condition 3(b)(ii)(B) the Agent or the Calculation Agent, as

applicable, shall request each of the Reference Banks to provide the Agent or the

Calculation Agent, as applicable, with its offered quotation (expressed as a

percentage rate per annum) for the Reference Rate at approximately the Specified

Time on the Interest Determination Date in question. If two or more of the Reference

Banks provide the Agent or the Calculation Agent, as applicable, with such offered

quotations, the Rate of Interest for such Interest Period shall be the arithmetic mean

(rounded if necessary to the fifth decimal place with 0.000005 being rounded

upwards) of such offered quotations plus or minus (as appropriate) the Margin (if

any), all as determined by the Agent or the Calculation Agent, as applicable.

If on any Interest Determination Date one only or none of the Reference Banks

provides the Agent or the Calculation Agent, as applicable, with such offered

quotations as provided in the preceding paragraph, the Rate of Interest for the

relevant Interest Period shall be the rate per annum which the Agent or the

Calculation Agent, as applicable, determines as being the arithmetic mean (rounded

if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the

rates, as communicated to (and at the request of) the Agent or the Calculation Agent,

as applicable, by the Reference Banks or any two or more of them, at which such

banks were offered, at approximately the Specified Time on the relevant Interest

Determination Date, deposits in the Specified Currency for a period equal to that

which would have been used for the Reference Rate by leading banks in the Euro-

zone inter-bank market (if the Reference Rate is EURIBOR) or the Norwegian inter-

bank market (if the Reference Rate is NIBOR) or the Stockholm inter-bank market (if

the Reference Rate is STIBOR) plus or minus (as appropriate) the Margin (if any) or,

if fewer than two of the Reference Banks provide the Agent or the Calculation Agent,

as applicable, with such offered rates, the offered rate for deposits in the Specified

Currency for a period equal to that which would have been used for the Reference

Rate, or the arithmetic mean (rounded as provided above) of the offered rates for

deposits in the Specified Currency for a period equal to that which would have been

used for the Reference Rate, at which, at approximately the Specified Time on the

relevant Interest Determination Date, any one or more banks (which bank or banks is

or are in the opinion of the Issuer suitable for such purpose) informs the Agent or the

Calculation Agent, as applicable, it is quoting to leading banks in the Euro-zone inter-

bank market (if the Reference Rate is EURIBOR) or the Norwegian inter-bank market

(if the Reference Rate is NIBOR) or the Stockholm inter-bank market (if the

Reference Rate is STIBOR) plus or minus (as appropriate) the Margin (if any),

provided that, if the Rate of Interest cannot be determined in accordance with the

foregoing provisions of this paragraph, the Rate of Interest shall be determined as at

the last preceding Interest Determination Date (though substituting, where a different

Margin is to be applied to the relevant Interest Period from that which applied to the

last preceding Interest Period, the Margin relating to the relevant Interest Period, in

place of the Margin relating to that last preceding Interest Period).

Reference Banks

means, in the case of Condition 3(b)(ii)(B)(1) above, those banks

whose offered rates were used to determine such quotation when such quotation last

appeared on the Relevant Screen Page and, in the case of Condition 3(b)(ii)(B)(2)

above, those banks whose offered quotations last appeared on the Relevant Screen

Page when no fewer than three such offered quotations appeared, and in each case,

as selected by the Issuer.

0010155-0003437 UKO2: 2005996996.8

52

Specified Time

means 11.00 a.m. (Brussels time) if the Reference Rate is

EURIBOR, 11.00 a.m. (Stockholm time) if the Reference Rate is STIBOR or 12.00

noon (Oslo time) if the Reference Rate is NIBOR.

(C)

Screen Rate Determination for Floating Rate Notes – Compounded Daily SONIA –

Non-Index Determination

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the

manner in which the Rate of Interest is to be determined and “Overnight Rate” to be

“Applicable”; (2) “Compounded Daily SONIA” as the Reference Rate; and (3) “Index

Determination” to be “Not Applicable”, the Rate of Interest for an Interest Period will,

subject to Condition 3(b)(viii) (

Benchmark Discontinuation

) and as provided below, be

Compounded Daily SONIA Formula Rate with respect to such Interest Period plus or

minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

As used in these Conditions,

Compounded Daily SONIA Formula Rate

means,

with respect to an Interest Period, the rate of return of a daily compound interest

investment during the Observation Period corresponding to such Interest Period (with

the daily SONIA reference rate as reference rate for the calculation of interest) as

calculated by the Agent or the Calculation Agent, as applicable, as at the relevant

Interest Determination Date, in accordance with the following formula (and the

resulting percentage will be rounded, if necessary, to the fifth decimal place, with

0.000005 being rounded upwards):

where:

d

is the number of calendar days in:

(1)

 where “Lag” is specified as the Observation Method in the applicable

Final Terms, the relevant Interest Period; or

(2)

 where “Observation Shift” is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

d

o

is the number of London Banking Days in:

(1)

 where “Lag” is specified as the Observation Method in the applicable

Final Terms, the relevant Interest Period; or

(2)

 where “Observation Shift” is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

i

is a series of whole numbers from one to d

o

, each representing a London

Banking Day in chronological order from, and including, the first London

Banking Day in:

(1)

 where “Lag” is specified as the Observation Method in the applicable

Final Terms, the relevant Interest Period; or

0010155-0003437 UKO2: 2005996996.8

53

(2)

 where “Observation Shift” is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

London Banking Day

means any day on which commercial banks are open

for general business (including dealing in foreign exchange and foreign

currency deposits) in London;

n

i

, for any London Banking Day "i", means the number of calendar days from

(and including) such London Banking Day "i" up to (but excluding) the

following London Banking Day;

Observation Period

means, in respect of an Interest Period, the period from

(and including) the date falling "p" London Banking Days prior to the first day

of such Interest Period to (but excluding) the date falling "p" London Banking

Days prior to (1) the Interest Payment Date for such Interest Period or (2)

such earlier date, if any, on which the Notes become due and payable;

p

means:

(1)

 where “Lag” is specified as the Observation Method in the applicable

Final Terms, the number of London Banking Days specified as the

“Lag Period” in the applicable Final Terms (or, if no such number is so

specified, five London Banking Days); or

(2)

 where “Observation Shift” is specified as the Observation Method in

the applicable Final Terms, the number of London Banking Days

specified as the “Observation Shift Period” in the applicable Final

Terms (or, if no such number is so specified, five London Banking

Days);

SONIA reference rate

means, in respect of any London Banking Day (

LBD

x

),

a reference rate equal to the daily Sterling Overnight Index Average (

SONIA

)

rate for LBD

x

as provided by the administrator of SONIA to authorised

distributors and as then published on the Relevant Screen Page (or, if the

Relevant Screen Page is unavailable, as otherwise published by such

authorised distributors) on the London Banking Day immediately following

LBD

x

; and

SONIA

i

means the SONIA reference rate for:

(1)

 where “Lag” is specified as the Observation Method in the applicable

Final Terms, the London Banking Day falling "p" London Banking

Days prior to the relevant London Banking Day "i"; or

(2)

 where “Observation Shift” is specified as the Observation Method in

the applicable Final Terms, the relevant London Banking Day "i".

If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(C),

in respect of any London Banking Day for which the SONIA reference rate is required

to be determined, the Agent or the Calculation Agent, as applicable, determines that

the applicable SONIA reference rate is not available on the Relevant Screen Page

and has not otherwise been published by the relevant authorised distributors, then

(unless the Agent or the Calculation Agent, as applicable, has been notified of any

0010155-0003437 UKO2: 2005996996.8

54

Successor Rate or Alternative Rate (and any related Adjustment Spread and/or

Benchmark Amendments) pursuant to Condition 3(b)(viii) (

Benchmark

Discontinuation

), if applicable) the SONIA reference rate in respect of such London

Banking Day shall be:

(1)

 (I) the Bank of England’s Bank Rate (the

Bank Rate

) prevailing at 5.00 p.m.

(London time) (or, if earlier, the close of business) on such London Banking

Day; plus (II) the mean of the spread of the SONIA reference rate to the Bank

Rate over the previous five London Banking Days on which a SONIA

reference rate has been published, excluding the highest spread (or, if there

is more than one highest spread, one only of those highest spreads) and

lowest spread (or, if there is more than one lowest spread, one only of those

lowest spreads) to the Bank Rate; or

(2)

 if the Bank Rate under (1)(I) above is not available at the relevant time, either

(I) the SONIA reference rate published on the Relevant Screen Page (or

otherwise published by the relevant authorised distributors) for the first

preceding London Banking Day on which the SONIA reference rate was

published on the Relevant Screen Page (or otherwise published by the

relevant authorised distributors) or (II) if this is more recent, the latest rate

determined under (1) above,

and, in each case, references to the "SONIA reference rate" in this Condition

3(b)(ii)(C) shall be construed accordingly.

In the event that the Rate of Interest cannot be determined in accordance with the

foregoing provisions, the Rate of Interest shall (subject to Condition 3(b)(viii)

(

Benchmark Discontinuation

)) be:

(1)

 that determined as at the last preceding Interest Determination Date (though

substituting, where a different Margin, Maximum Rate of Interest and/or

Minimum Rate of Interest is to be applied to the relevant Interest Period from

that which applied to the last preceding Interest Period, the Margin, Maximum

Rate of Interest and/or Minimum Rate of Interest (as the case may be)

relating to the relevant Interest Period, in place of the Margin, Maximum Rate

of Interest and/or Minimum Rate of Interest (as applicable) relating to that last

preceding Interest Period); or

(2)

 if there is no such preceding Interest Determination Date, the initial Rate of

Interest which would have been applicable to such Notes for the first

scheduled Interest Period had the Notes been in issue for a period equal in

duration to the first scheduled Interest Period but ending on (and excluding)

the Interest Commencement Date (but applying the Margin and, if applicable,

any Maximum Rate of Interest and/or Minimum Rate of Interest, applicable to

the first scheduled Interest Period).

If the Notes become due and payable in accordance with Condition 8 (

Events of

Default

), the final Rate of Interest shall be calculated for the period from (and

including) the previous Interest Payment Date to (but excluding) the date on which

the Notes become so due and payable, and such Rate of Interest shall continue to

apply to the Notes for so long as interest continues to accrue thereon as provided in

Condition 3(c) (

Accrual of Interest

).

0010155-0003437 UKO2: 2005996996.8

55

(D)

Screen Rate Determination for Floating Rate Notes – Compounded Daily SONIA –

Index Determination

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the

manner in which the Rate of Interest is to be determined and “Overnight Rate” to be

“Applicable”; (2) “Compounded Daily SONIA” as the Reference Rate; and (3) “Index

Determination” to be “Applicable”, the Rate of Interest for an Interest Period will,

subject to Condition 3(b)(viii) (

Benchmark Discontinuation

) and as provided below, be

the Compounded Daily SONIA Index Rate with respect to such Interest Period plus or

minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

Compounded Daily SONIA Index Rate

means, with respect to an Interest Period,

the rate of return of a daily compound interest investment as calculated by the Agent

or the Calculation Agent, as applicable, on the relevant Interest Determination Date in

accordance with the following formula (and the resulting percentage will be rounded,

if necessary, to the fifth decimal place, with 0.000005 being rounded upwards):

where:

d

is the number of calendar days from (and including) the day in relation to

which SONIA Compounded Index

Start

is determined to (but excluding) the day

in relation to which SONIA Compounded Index

End

is determined;

London Banking Day

has the meaning set out in Condition 3(b)(ii)(C) above;

Relevant Number

is the number specified as such in the applicable Final

Terms (or, if no such number is specified, five);

SONIA Compounded Index

End

means the SONIA Compounded Index value

relating to the London Banking Day falling the Relevant Number of London

Banking Days prior to (1) the Interest Payment Date for the relevant Interest

Period or (2) such earlier date, if any, on which the Notes become due and

payable;

SONIA Compounded Index

Start

means the SONIA Compounded Index value

relating to the London Banking Day falling the Relevant Number of London

Banking Days prior to the first day of the relevant Interest Period; and

the

SONIA Compounded Index

means, with respect to any London Banking

Day, the value of the SONIA compounded index that is provided by the

administrator of the SONIA reference rate to authorised distributors and as

then published on the Relevant Screen Page (or, if the Relevant Screen Page

is unavailable, as otherwise published by such authorised distributors) in

respect of such London Banking Day.

If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(D),

the Agent or the Calculation Agent, as applicable, determines that the relevant

SONIA Compounded Index value required to determine SONIA Compounded

Index

Start

or SONIA Compounded Index

End

is not available on the Relevant Screen

Page and has not otherwise been published by the relevant authorised distributors by

0010155-0003437 UKO2: 2005996996.8

56

5.00 p.m. (London time) (or, if later, by the time falling one hour after the customary

or scheduled time for publication thereof in accordance with the then-prevailing

operational procedures of the administrator of the SONIA reference rate or of such

other information service, as the case may be) on the relevant Interest Determination

Date, the Compounded Daily SONIA Index Rate for the applicable Interest Period for

which the relevant SONIA Compounded Index value is not available shall be

"Compounded Daily SONIA Formula Rate" determined in accordance with Condition

3(b)(ii)(C) above as if Index Determination had been specified as being Not

Applicable in the applicable Final Terms, and for these purposes: (1) the

"Observation Method" shall be deemed to be "Observation Shift" and (2) the

"Observation Shift Period" shall be deemed to be equal to the Relevant Number of

London Banking Days, as if those alternative elections had been made in the

applicable Final Terms.

If the Notes become due and payable in accordance with Condition 8 (

Events of

Default

), the final Rate of Interest shall be calculated for the period from (and

including) the previous Interest Payment Date to (but excluding) the date on which

the Notes become so due and payable, and such Rate of Interest shall continue to

apply to the Notes for so long as interest continues to accrue thereon as provided in

Condition 3(c) (

Accrual of Interest

).

(E)

Screen Rate Determination for Floating Rate Notes – Compounded Daily SOFR –

Non-Index Determination

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the

manner in which the Rate of Interest is to be determined and “Overnight Rate” to be

“Applicable”; (2) “Compounded Daily SOFR” as the Reference Rate; and (3) “Index

Determination” to be “Not Applicable”, the Rate of Interest for an Interest Period will,

subject to Condition 3(b)(ix) (

Benchmark Discontinuation – SOFR

) and as provided

below, be Compounded Daily SOFR Formula Rate with respect to such Interest

Period plus or minus (as indicated in the applicable Final Terms) the applicable

Margin (if any).

Compounded Daily SOFR Formula Rate

means, with respect to an Interest Period,

the rate of return of a daily compound interest investment in U.S. dollars (with the

Secured Overnight Financing Rate as the reference rate for the calculation of

interest) as calculated by the Agent or the Calculation Agent, as applicable, on the

relevant Interest Determination Date in accordance with the following formula (and

the resulting percentage will be rounded, if necessary, to the nearest fifth decimal

place, with 0.000005 being rounded upwards):

where:

d

is the number of calendar days in:

(1)

 where "Lookback" or “Lock-out” is specified as the Observation

Method in the applicable Final Terms, the relevant Interest Period; or

0010155-0003437 UKO2: 2005996996.8

57

(2)

 where "Observation Shift" is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

d

o

is the number of U.S. Government Securities Business Days in:

(1)

 where "Lookback" or “Lock-out” is specified as the Observation

Method in the applicable Final Terms, the relevant Interest Period; or

(2)

 where "Observation Shift" is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

i

is a series of whole numbers from one to d

o

, each representing the relevant

U.S. Government Securities Business Day in chronological order from, and

including, the first U.S. Government Securities Business Day in:

(1)

 where "Lookback" or “Lock-out” is specified as the Observation

Method in the applicable Final Terms, the relevant Interest Period; or

(2)

 where "Observation Shift" is specified as the Observation Method in

the applicable Final Terms, the relevant Observation Period;

Lock-out Period

means the period from (and including) the day following the

Interest Determination Date to (but excluding) the corresponding Interest

Payment Date;

n

i

, for any U.S. Government Securities Business Day "i", means the number

of calendar days from (and including) such U.S. Government Securities

Business Day "i" up to (but excluding) the following U.S. Government

Securities Business Day;

Observation Period

means, in respect of an Interest Period, the period from

(and including) the date falling "p" U.S. Government Securities Business Days

prior to the first day of such Interest Period to (but excluding) the date falling

"p" U.S. Government Securities Business Days prior to (1) the Interest

Payment Date for such Interest Period or (2) such earlier date, if any, on

which the Notes become due and payable;

p

means:

(1)

 where "Lookback" is specified as the Observation Method in the

applicable Final Terms, the number of U.S. Government Securities

Business Days specified as the "Lookback Period (

p

)" in the

applicable Final Terms (or, if no such number is so specified, five U.S.

Government Securities Business Days); or

(2)

 where “Lock-out” is specified as the Observation Method in the

applicable Final Terms, zero U.S. Government Securities Business

Days; or

(3)

 where "Observation Shift" is specified as the Observation Method in

the applicable Final Terms, the number of U.S. Government Securities

Business Days specified as the "Observation Shift Period" in the

applicable Final Terms (or, if no such number is so specified, five U.S.

Government Securities Business Days);

0010155-0003437 UKO2: 2005996996.8

58

Reference Day

means each U.S. Government Securities Business Day in the

relevant Interest Period, other than any U.S. Government Securities Business

Day in the Lock-out Period;

SOFR

means, in respect of any U.S. Government Securities Business Day, a

rate determined in accordance with the following provisions:

(1)

 the Secured Overnight Financing Rate published for such U.S.

Government Securities Business Day that appears on the SOFR

Administrator's Website at or about 3.00 p.m. (New York City time) on

the U.S. Government Securities Business Day immediately following

such U.S. Government Securities Business Day; and

(2)

 if the rate specified in paragraph (1) above does not so appear, unless

both a Benchmark Transition Event and its related Benchmark

Replacement Date have occurred, then the Agent or the Calculation

Agent, as applicable, shall use the Secured Overnight Financing Rate

published on the SOFR Administrator's Website for the first preceding

U.S. Government Securities Business Day on which the Secured

Overnight Financing Rate was published on the SOFR Administrator's

Website;

SOFR

i

means, in respect of any U.S. Government Securities Business Day

"i":

(1)

 where "Lookback" is specified as the Observation Method in the

applicable Final Terms, SOFR in respect of the U.S. Government

Securities Business Day falling "

p

" U.S. Government Securities

Business Days prior to the relevant U.S. Government Securities

Business Day "i"; or

(2)

 where “Lock-out” is specified as the Observation Method in the

applicable Final Terms:

(I)

 in respect of each U.S. Government Securities Business Day

“i” that is a Reference Day, SOFR in respect of the U.S.

Government Securities Business Day immediately preceding

such Reference Day; or

(II)

 in respect of each U.S. Government Securities Business Day

“i” that is not a Reference Day (being a U.S. Government

Securities Business Day in the Lock-out Period), SOFR in

respect of the U.S. Government Securities Business Day

immediately preceding the last Reference Day of the relevant

Interest Period (such last Reference Day coinciding with the

Interest Determination Date); or

(3)

 where "Observation Shift" is specified as the Observation Method in

the applicable Final Terms, SOFR in respect of such U.S. Government

Securities Business Day "i"; and

U.S. Government Securities Business Day

means any day except for a

Saturday, a Sunday or a day on which the Securities Industry and Financial

Markets Association recommends that the fixed income departments of its

0010155-0003437 UKO2: 2005996996.8

59

members be closed for the entire day for purposes of trading in U.S.

government securities.

Certain other capitalised terms used in the foregoing terms and provisions

relating to determination of the Compounded Daily SOFR Formula Rate have

the meanings set forth under Condition 3(b)(ix) (

Benchmark Discontinuation –

SOFR

) below.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and

its related Benchmark Replacement Date have occurred with respect to the

Compounded Daily SOFR Formula Rate (or any component part thereof), the

benchmark replacement provisions set forth in Condition 3(b)(ix) (

Benchmark

Discontinuation – SOFR

) below shall apply for the purposes of all determinations of

the Rate of Interest in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (

Events of

Default

), the final Rate of Interest shall be calculated for the period from (and

including) the previous Interest Payment Date to (but excluding) the date on which

the Notes become so due and payable, and such Rate of Interest shall continue to

apply to the Notes for so long as interest continues to accrue thereon as provided in

Condition 3(c) (

Accrual of Interest

).

(F)

Screen Rate Determination for Floating Rate Notes – Compounded Daily SOFR –

Index Determination

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the

manner in which the Rate of Interest is to be determined and “Overnight Rate” to be

“Applicable”; (2) “Compounded Daily SOFR” as the Reference Rate; and (3) “Index

Determination” to be “Applicable”, the Rate of Interest for an Interest Period will,

subject to Condition 3(b)(ix) (

Benchmark Discontinuation – SOFR

) and as provided

below, be the Compounded Daily SOFR Index Rate with respect to such Interest

Period plus or minus (as indicated in the applicable Final Terms) the applicable

Margin (if any).

Compounded SOFR Index Rate

means, with respect to an Interest Period, the rate

of return of a daily compound interest investment as calculated by the Agent or the

Calculation Agent, as applicable, on the relevant Interest Determination Date in

accordance with the following formula (and the resulting percentage will be rounded,

if necessary, to the nearest fifth decimal place, with 0.000005 being rounded

upwards):

where:

d

is the number of calendar days from (and including) the day in relation to

which "SOFR Index

Start

" is determined to (but excluding) the day in relation to

which "SOFR Index

End

" is determined;

Relevant Number

is the number specified as such in the applicable Final

Terms (or, if no such number is specified, five);

0010155-0003437 UKO2: 2005996996.8

60

SOFR Index

End

means the SOFR Index value relating to the U.S. Government

Securities Business Day falling the Relevant Number of U.S. Government

Securities Business Days prior to (1) the Interest Payment Date for the

relevant Interest Period or (2) such earlier date, if any, on which the Notes

become due and payable;

SOFR Index

Start

means the SOFR Index value relating to the U.S.

Government Securities Business Day falling the Relevant Number of U.S.

Government Securities Business Days prior to the first date of the relevant

Interest Period;

the

SOFR Index

means, with respect to any U.S. Government Securities

Business Day, prior to a Benchmark Replacement Date, the SOFR Index

published for such U.S. Government Securities Business Day as such value

appears on the SOFR Administrator's Website at 3:00 p.m. (New York City

time) on such U.S. Government Securities Business Day; and

U.S. Government Securities Business Day

has the meaning set out in

Condition 3(b)(ii)(E) above.

Certain other capitalised terms used in the foregoing terms and provisions

relating to determination of the Compounded SOFR Index Rate have the

meanings set forth under Condition 3(b)(ix) (

Benchmark Discontinuation –

SOFR

) below.

If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(F),

the Agent or the Calculation Agent, as applicable, determines that the SOFR

Index

Start

or the SOFR Index

End

does not appear on the SOFR Administrator's

Website by 3.00 p.m. (New York City time) on the relevant Interest Determination

Date and a Benchmark Transition Event and its related Benchmark Replacement

Date have not occurred with respect to the Compounded SOFR Index Rate (or any

component part thereof), the Compounded SOFR Index Rate for the applicable

Interest Period for which such SOFR Index value is not available shall be the

"Compounded Daily SOFR Formula Rate" determined in accordance with Condition

3(b)(ii)(E) above as if Index Determination had been specified as being Not

Applicable in the applicable Final Terms, and for these purposes: (1) the

"Observation Method" shall be deemed to be "Observation Shift", and (2) the

"Observation Shift Period" shall be deemed to be equal to the Relevant Number of

U.S. Government Securities Business Days, as if those alternative elections had

been made in the applicable Final Terms.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and

its related Benchmark Replacement Date have occurred with respect to the

Compounded SOFR Index Rate (or any component part thereof), the benchmark

replacement provisions set forth in Condition 3(b)(ix) (

Benchmark Discontinuation –

SOFR

) below shall apply for the purposes of all determinations of the Rate of Interest

in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (

Events of

Default

), the final Rate of Interest shall be calculated for the period from (and

including) the previous Interest Payment Date to (but excluding) the date on which

the Notes become so due and payable, and such Rate of Interest shall continue to

0010155-0003437 UKO2: 2005996996.8

61

apply to the Notes for so long as interest continues to accrue thereon as provided in

Condition 3(c) (

Accrual of Interest

).

(G)

Screen Rate Determination for Floating Rate Notes – Average SOFR

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the

manner in which the Rate of Interest is to be determined and “Overnight Rate” to be

“Applicable”; (2) “Average SOFR” as the Reference Rate; and (3) “Index

Determination” to be “Not Applicable”, the Rate of Interest for an Interest Period will,

subject to Condition 3(b)(ix) (

Benchmark Discontinuation – SOFR

) and as provided

below, be the Average SOFR Rate with respect to such Interest Period plus or minus

(as indicated in the applicable Final Terms) the applicable Margin (if any).

Average SOFR Rate

means, with respect to an Interest Period, the arithmetic mean

of SOFR in effect during such Interest Period as calculated by the Agent or the

Calculation Agent, as applicable, on the relevant Interest Determination Date in

accordance with the following formula (and the resulting percentage will be rounded,

if necessary, to the nearest fifth decimal place, with 0.000005 being rounded

upwards):

where

d

o

,

i

,

SOFR

,

SOFR

i

,

n

i

and

d

have the meanings set out in Condition

3(b)(ii)(E) above.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and

its related Benchmark Replacement Date have occurred with respect to the Average

SOFR Rate (or any component part thereof), the benchmark replacement provisions

set forth in Condition 3(b)(ix) (

Benchmark Discontinuation – SOFR

) below shall apply

for the purposes of all determinations of the Rate of Interest in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (

Events of

Default

), the final Rate of Interest shall be calculated for the period from (and

including) the previous Interest Payment Date to (but excluding) the date on which

the Notes become so due and payable, and such Rate of Interest shall continue to

apply to the Notes for so long as interest continues to accrue thereon as provided in

Condition 3(c) (

Accrual of Interest

).

(iii)

Minimum and/or Maximum Rate of Interest

If the applicable Final Terms specifies a Minimum Rate of Interest for any Interest

Period, then, in the event that the Rate of Interest in respect of such Interest Period

determined in accordance with the provisions of paragraph (ii) above is less than

such Minimum Rate of Interest, the Rate of Interest for such Interest Period shall be

such Minimum Rate of Interest. If the applicable Final Terms specifies a Maximum

Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in

respect of such Interest Period determined in accordance with the provisions of

paragraph (ii) above is greater than such Maximum Rate of Interest, the Rate of

Interest for such Interest Period shall be such Maximum Rate of Interest.

(iv)

Determination of Rate of Interest and Calculation of Interest Amounts

0010155-0003437 UKO2: 2005996996.8

62

The Agent or the Calculation Agent, as applicable, will at or as soon as practicable

after each time at which the Rate of Interest is to be determined, determine the Rate

of Interest for the relevant Interest Period.

The Agent or the Calculation Agent, as applicable, will calculate the amount of

interest (the

Interest Amount

) payable on the Floating Rate Notes for the relevant

Interest Period by applying the Rate of Interest to:

(A)

 in the case of Floating Rate Notes which are represented by a Global Note,

the aggregate outstanding nominal amount of the Notes represented by such

Global Note; or

(B)

 in the case of Floating Rate Notes in definitive form, the Calculation Amount;

and, in each case, multiplying such sum by the applicable Day Count Fraction, and

rounding the resultant figure to the nearest sub-unit of the relevant Specified

Currency half of any such sub-unit being rounded upwards or otherwise in

accordance with applicable market convention. Where the Specified Denomination of

a Floating Rate Note in definitive form is a multiple of the Calculation Amount, the

Interest Amount payable in respect of such Note shall be the product of the amount

(determined in the manner provided above) for the Calculation Amount and the

amount by which the Calculation Amount is multiplied to reach the Specified

Denomination, without any further rounding.

Day Count Fraction

means, in respect of the calculation of an amount of interest in

accordance with this Condition 3 (

Interest

):

(i)

 if "Actual/Actual (ISDA)" or "Actual/Actual" is specified in the applicable Final

Terms, the actual number of days in the Interest Period divided by 365 (or, if

any portion of that Interest Period falls in a leap year, the sum of (I) the actual

number of days in that portion of the Interest Period falling in a leap year

divided by 366 and (II) the actual number of days in that portion of the Interest

Period falling in a non-leap year divided by 365);

(ii)

 if "Actual/365 (Fixed)" is specified in the applicable Final Terms, the actual

number of days in the Interest Period divided by 365;

(iii)

 if "Actual/365 (Sterling)" is specified in the applicable Final Terms, the actual

number of days in the Interest Period divided by 365 or, in the case of an

Interest Payment Date falling in a leap year, 366;

(iv)

 if "Actual/360" is specified in the applicable Final Terms, the actual number of

days in the Interest Period divided by 360;

(v)

 if "30/360", "360/360" or "Bond Basis" is specified in the applicable Final

Terms, the number of days in the Interest Period divided by 360, calculated on

a formula basis as follows:

[360

(Y

2

 Y

1

)]

[30

(M

2

M

1

)] (D

2

D

1

)

DayCount Fraction

where:

360

0010155-0003437 UKO2: 2005996996.8

63

"Y

1

" is the year, expressed as a number, in which the first day of the Interest

Period falls:

"Y

2

" is the year, expressed as a number, in which the day immediately

following the last day of the Interest Period falls;

"M

1

" is the calendar month, expressed as a number, in which the first day of

the Interest Period falls;

"M

2

" is the calendar month, expressed as a number, in which the day

immediately following the last day of the Interest Period falls;

"D

1

" is the first calendar day, expressed as a number, of the Interest Period,

unless such number is 31, in which case D

1

will be 30; and

"D

2

" is the calendar day, expressed as a number, immediately following the

last day included in the Interest Period, unless such number would be 31 and

D

1

is greater than 29, in which case D

2

will be 30;

(vi)

 if "30E/360" or "Eurobond Basis" is specified in the applicable Final Terms,

the number of days in the Interest Period divided by 360, calculated on a

formula basis as follows:

[360

(Y

2

 Y

1

)]

[30

(M

2

M

1

)] (D

2

D

1

)

DayCount Fraction

where:

360

"Y

1

" is the year, expressed as a number, in which the first day of the Interest

Period falls:

"Y

2

" is the year, expressed as a number, in which the day immediately

following the last day of the Interest Period falls;

"M

1

" is the calendar month, expressed as a number, in which the first day of

the Interest Period falls;

"M

2

" is the calendar month, expressed as a number, in which the day

immediately following the last day of the Interest Period falls;

"D

1

" is the first calendar day, expressed as a number, of the Interest Period,

unless such number would be 31, in which case D

1

will be 30; and

"D

2

" is the calendar day, expressed as a number, immediately following the

last day included in the Interest Period, unless such number would be 31, in

which case D

2

will be 30; or

(vii)

 if "30E/360 (ISDA)" is specified in the applicable Final Terms, the number of

days in the Interest Period divided by 360, calculated on a formula basis as

follows:

DayCount Fraction

[360

(Y

2

 Y

1

)]

[30

(M

2

M

1

)] (D

2

D

1

) 360

0010155-0003437 UKO2: 2005996996.8

64

where:

"Y

1

" is the year, expressed as a number, in which the first day of the Interest

Period falls:

"Y

2

" is the year, expressed as a number, in which the day immediately

following the last day of the Interest Period falls;

"M

1

" is the calendar month, expressed as a number, in which the first day of

the Interest Period falls;

"M

2

" is the calendar month, expressed as a number, in which the day

immediately following the last day of the Interest Period falls;

"D

1

" is the first calendar day, expressed as a number, of the Interest Period,

unless (i) that day is the last day of February or (ii) such number would be 31,

in which case D1 will be 30; and

"D

2

" is the calendar day, expressed as a number, immediately following the

last day included in the Interest Period, unless (i) that day is the last day of

February but not the Maturity Date or (ii) such number would be 31 and D

2

will

be 30.

(v)

Linear Interpolation

Where Linear Interpolation is specified as applicable in respect of an Interest Period

in the applicable Final Terms, the Rate of Interest for such Interest Period shall be

calculated by the Agent or the Calculation Agent, as applicable, by straight line linear

interpolation by reference to two rates based on the relevant Reference Rate (where

Screen Rate Determination is specified as applicable in the applicable Final Terms)

or the relevant Floating Rate Option (where ISDA Determination is specified as

applicable in the applicable Final Terms), one of which shall be determined as if the

Designated Maturity were the period of time for which rates are available next shorter

than the length of the relevant Interest Period and the other of which shall be

determined as if the Designated Maturity were the period of time for which rates are

available next longer than the length of the relevant Interest Period provided however

that if there is no rate available for a period of time next shorter or, as the case may

be, next longer, then the Agent or the Calculation Agent, as applicable, shall

determine such rate at such time and by reference to such sources as an

independent adviser, appointed by the Issuer and acting in good faith and in a

commercially reasonable manner as an expert, determines appropriate.

Designated Maturity

means, in relation to Screen Rate Determination, the period of

time designated in the Reference Rate.

(vi)

Notification of Rate of Interest and Interest Amounts

(A)

 Except where “Screen Rate Determination” is specified in the applicable Final

Terms as the manner in which the Rate of Interest is to be determined and

“Overnight Rate” is specified in the applicable Final Terms to be “Applicable”,

the Agent or the Calculation Agent, as applicable, will cause the Rate of

Interest and each Interest Amount for each Interest Period and the relevant

Interest Payment Date to be notified to the Issuer and any stock exchange on

which the relevant Floating Rate Notes are for the time being listed and notice

0010155-0003437 UKO2: 2005996996.8

65

thereof to be published in accordance with Condition 12 (

Notices

) as soon as

possible after their determination but in no event later than the fourth London

Business Day thereafter. Each Interest Amount and Interest Payment Date so

notified may subsequently be amended (or appropriate alternative

arrangements made by way of adjustment) without prior notice in the event of

an extension or shortening of the Interest Period. Any such amendment will be

promptly notified to each stock exchange on which the relevant Floating Rate

Notes are for the time being listed and to the Noteholders in accordance with

Condition 12 (

Notices

). For the purposes of this paragraph, the expression

London Business Day

means a day (other than a Saturday or a Sunday) on

which banks and foreign exchange markets are open for general business in

London.

(B)

 Where “Screen Rate Determination” is specified in the applicable Final Terms

as the manner in which the Rate of Interest is to be determined and

“Overnight Rate” is specified in the applicable Final Terms to be “Applicable”,

the Agent or the Calculation Agent, as applicable, will cause the Rate of

Interest and each Interest Amount for each Interest Period and the relevant

Interest Payment Date to be notified to the Issuer and any stock exchange on

which the relevant Floating Rate Notes are for the time being listed and notice

thereof to be published in accordance with Condition 12 (

Notices

) as soon as

possible after their determination but in no event later than (1) where the

applicable Final Terms specifies the Reference Rate as “Compounded Daily

SONIA”, the second London Banking Day thereafter or (2) where the

applicable Final Terms specifies the Reference Rate as “Compounded Daily

SOFR” or “Average SOFR”, the second U.S. Government Securities Business

Day thereafter. Each Rate of Interest, Interest Amount and Interest Payment

Date so notified may subsequently be amended (or appropriate alternative

arrangements made by way of adjustment) without prior notice in the event of

an extension or shortening of the relevant Interest Period. Any such

amendment or alternative arrangements will promptly be notified to each stock

exchange on which the relevant Floating Rate Notes are for the time being

listed and to the Noteholders in accordance with Condition 12 (

Notices

).

(vii)

Certificates to be Final

All certificates, communications, opinions, determinations, calculations, quotations

and decisions given, expressed, made or obtained for the purposes of the provisions

of this Condition 3(b) (

Interest on Floating Rate Notes

) by the Agent, an Independent

Adviser (as defined below) or the Calculation Agent, as applicable, shall (in the

absence of wilful default, bad faith or manifest error) be binding on the Issuer, the

Issuer’s designee (as defined below), the Guarantor (in the case of Notes having the

benefit of the Guarantee), the Agent, the Calculation Agent, the other Paying Agents

and all Noteholders and Couponholders and (in the absence as aforesaid) no liability

to the Issuer, the Issuer’s designee, the Guarantor (in the case of Notes having the

benefit of the Guarantee), the Noteholders or the Couponholders shall attach to the

Agent, an Independent Adviser or the Calculation Agent, as applicable, in connection

with the exercise or non-exercise by it of its powers, duties and discretions pursuant

to such provisions.

(viii)

Benchmark Discontinuation

0010155-0003437 UKO2: 2005996996.8

66

Notwithstanding the foregoing provisions of this Condition 3(b) (

Interest on Floating

Rate Notes

), if:

(1)

 the Reference Rate specified in the applicable Final Terms is neither

Compounded Daily SOFR nor Average SOFR; and

(2)

 the Issuer determines that a Benchmark Event (as defined below) has

occurred in relation to a Reference Rate at any time when any Rate of

Interest (or the relevant component thereof) remains to be determined by

reference to such Reference Rate,

then the following provisions shall apply:

(A)

 the Issuer shall use reasonable endeavours to appoint, as soon as reasonably

practicable, an Independent Adviser (as defined below) to determine (without

any requirement for any consent or approval of the Noteholders or the

Couponholders), no later than 10 days prior to the relevant Interest

Determination Date relating to the next succeeding Interest Period (the

IA

Determination Cut-off Date

), a Successor Rate (as defined below) or,

alternatively, if there is no Successor Rate, an Alternative Reference Rate (as

defined below), and in either case an Adjustment Spread (as defined below),

for the purposes of determining the Rate of Interest (or the relevant

component part thereof) applicable to the Notes;

(B)

 if a Successor Rate or, failing which, an Alternative Reference Rate (as

applicable) is determined in accordance with paragraph (A) above, such

Successor Rate or, failing which, such Alternative Reference Rate (as

applicable) shall be the Reference Rate for each of the future Interest Periods

for which the Rate of Interest (or the relevant component thereof) was

otherwise to be determined by reference to the relevant Reference Rate

(subject to the subsequent operation of, and to adjustment as provided in, this

Condition 3(b)(viii) (

Benchmark Discontinuation

));

(C)

 if the Independent Adviser determines a Successor Rate or, failing which, an

Alternative Reference Rate (as applicable) in accordance with the above

provisions, the Independent Adviser, following consultation with the Issuer,

may also specify changes to these Conditions, including but not limited to the

Day Count Fraction, Relevant Screen Page, Specified Time, Business Day

Convention, Business Day, Interest Determination Date, Reference Banks,

Additional Business Centre and/or the definition of Reference Rate applicable

to the Notes, and/or the method for determining the fallback to the Reference

Rate in relation to the Notes, in each case in order to follow market practice in

relation to the Successor Rate or the Alternative Reference Rate (as

applicable). If a Successor Rate or Alternative Rate is determined in

accordance with the foregoing provisions, the Independent Adviser (in

consultation with the Issuer) will determine the Adjustment Spread to be

applied to such Successor Rate or Alternative Rate (as the case may be) for

each subsequent determination of a relevant Rate of Interest (or a relevant

component part thereof) by reference to such Successor Rate or Alternative

Rate (as applicable). For the avoidance of doubt, the Issuer shall be obliged,

and the Issuer shall direct the Agent (if applicable) who (upon such direction)

shall be obliged, in each case without the requirement for any consent or

approval of the Noteholders or the Couponholders, to use its reasonable

0010155-0003437 UKO2: 2005996996.8

67

endeavours to effect such amendments to the Agency Agreement and these

Conditions, as applicable, as may be specified by the Independent Adviser

following consultation with the Issuer in order to give effect to this Condition

3(b)(viii)(C) (such amendments, the

Benchmark Amendments

). For the

avoidance of doubt, no Noteholder or Couponholder consent shall be required

in connection with effecting the Benchmark Amendments or such other

changes, including for the execution of any documents, amendments or other

steps by the Issuer, the Guarantor (in the case of Notes having the benefit of

the Guarantee) or the Agent (if required). Notwithstanding the foregoing

provisions of this Condition, the Agent shall not be required to agree to the

amendments and changes referred to above that in the Agent’s opinion,

acting reasonably and in good faith, imposes more onerous obligations upon it

or exposes it to additional duties, responsibilities or liability, or reduces or

amends the protective provisions afforded to the Agent in the Agency

Agreement.

(D)

 the Issuer shall promptly, following the determination of any Successor Rate

or Alternative Reference Rate (as applicable), the applicable Adjustment

Spread and the specific terms of any Benchmark Amendments give notice

thereof to the Agent and, in accordance with Condition 12 (

Notices

), the

Noteholders and the Couponholders (which notice shall be irrevocable);

(E)

 if a Successor Rate or an Alternative Reference Rate or, in either case, the

applicable Adjustment Spread, is not determined by an Independent Adviser

in accordance with the above provisions prior to the relevant IA Determination

Cut-off Date, then the Rate of Interest for the next Interest Period shall be

determined by reference to the original Reference Rate and the fallback

provisions set out in Condition 3(b)(ii)(B), (C) or (D), as applicable; for the

avoidance of doubt, in such circumstances the Rate of Interest for any

subsequent Interest Periods shall be subject to the subsequent operation of,

and to adjustment as provided in, this Condition 3(b)(viii) (

Benchmark

Discontinuation

); and

(F)

 an Independent Adviser appointed pursuant to this Condition 3(b)(viii)

(

Benchmark Discontinuation

) shall act in good faith and in a commercially

reasonable manner and in accordance with the provisions of this Condition

3(b)(viii) (

Benchmark Discontinuation

) in respect of any determination made

by it pursuant to this Condition 3(b)(viii) (

Benchmark Discontinuation

).

The occurrence of a Benchmark Event shall be determined by the Issuer and

promptly notified by the Issuer to the Agent, the Calculation Agent and the Paying

Agents. For the avoidance of doubt, none of the Agent, the Calculation Agent or the

Paying Agents shall have any responsibility for making such determination.

For the purposes of this Condition 3(b)(viii) (

Benchmark Discontinuation

):

Adjustment Spread

means the spread (which may be positive, negative or zero),

quantum or formula or methodology for calculating a spread, which the Independent

Adviser (in consultation with the Issuer) determines is required to be applied to the

Successor Rate or the Alternative Reference Rate (as applicable) and is the spread,

quantum, formula or methodology which:

0010155-0003437 UKO2: 2005996996.8

68

(1)

 in the case of a Successor Rate, is formally recommended in relation to the

replacement of the Reference Rate with the Successor Rate by any Relevant

Nominating Body (as defined below); or

(2)

 in the case of a Successor Rate for which no such recommendation as referred

to in (1) above has been made, or in the case of an Alternative Reference Rate,

the Independent Adviser (in consultation with the Issuer) determines is

recognised or acknowledged as being in customary market usage in international

debt capital markets transactions which reference the Reference Rate, where

such rate has been replaced by the Successor Rate or the Alternative Reference

Rate (as applicable); or

(3)

 if the Independent Adviser determines that neither (1) nor (2) above applies, the

Independent Adviser (in consultation with the Issuer) determines as being the

industry standard for over-the-counter derivative transactions which reference

the original Reference Rate, where such rate has been replaced by the

Successor Rate or the Alternative Reference Rate (as applicable); or

(4)

 if the Independent Adviser determines that none of (1), (2) or 3 above applies,

the Independent Adviser (in consultation with the Issuer) in its discretion

determines (acting in good faith and in a commercially reasonable manner) to be

appropriate;

Alternative Reference Rate

means the rate that the Independent Adviser (in

consultation with the Issuer) determines (acting in good faith and in a commercially

reasonable manner) has replaced the relevant Reference Rate in customary market

usage in the international debt capital markets for the purposes of determining

floating rates of interest (or the relevant component thereof) in respect of bonds

denominated in the Specified Currency and with an interest period of a comparable

duration to the relevant Interest Period, or, if the Independent Adviser (in consultation

with the Issuer) determines that there is no such rate, such other rate as the

Independent Adviser (in consultation with the Issuer) determines in its sole discretion

is most comparable to the relevant Reference Rate;

Benchmark Event

means, with respect to a Reference Rate:

(1)

 the Reference Rate (A) ceasing to be published for a period of at least five

consecutive Business Days or (B) ceasing to exist or be administered; or

(2)

 the later of (A) the making of a public statement by the administrator of such

Reference Rate that it will, on or before a specified date, cease publishing such

Reference Rate permanently or indefinitely (in circumstances where no

successor administrator has been appointed that will continue publication of such

Reference Rate) and (B) the date falling six months prior to the specified date

referred to in (2)(A); or

(3)

 the making of a public statement by the supervisor of the administrator of such

Reference Rate that such Reference Rate has been permanently or indefinitely

discontinued; or

(4)

 the later of (A) the making of a public statement by the supervisor of the

administrator of such Reference Rate that such Reference Rate will, on or before

0010155-0003437 UKO2: 2005996996.8

69

a specified date, be permanently or indefinitely discontinued and (B) the date

falling six months prior to the specified date referred to in (4)(A); or

(5)

 the later of (A) the making of a public statement by the supervisor of the

administrator of such Reference Rate that means such Reference Rate will be

prohibited from being used or that its use will be subject to restrictions or adverse

consequences, in each case on or before a specified date and (B) the date

falling six months prior to the specified date referred to in (5)(A); or

(6)

 a public statement by the supervisor of the administrator of such Reference Rate

that, in the view of such supervisor, such Reference Rate is no longer

representative of its underlying market; or

(7)

 the later of (A) a public statement by the supervisor of the administrator of such

Reference Rate that, in the view of such supervisor, such Reference Rate will, as

of a specified date, no longer be representative of its underlying market and (B)

the date falling six months prior to the specified date referred to in (7)(A); or

(8)

 it has, or will prior to the next Interest Determination Date become unlawful for

the Issuer, the Agent, the Calculation Agent, any other party specified in the

applicable Final Terms as being responsible for calculating the Rate of Interest

or any Paying Agent to calculate any payments due to be made to any

Noteholder or Couponholder using such Reference Rate;

Independent Adviser

means an independent financial institution of international

repute or other independent financial adviser experienced in the international debt

capital markets, in each case appointed by the Issuer at its own expense. For the

avoidance of doubt, neither the Agent nor the Calculation Agent shall act as the

Independent Adviser unless it accepts such appointment in writing;

Relevant Nominating Body

means, in respect of a Reference Rate:

(1)

 the central bank for the currency to which the Reference Rate relates, or any

central bank or other supervisory authority which is responsible for supervising

the administrator of the Reference Rate; or

(2)

 any working group or committee sponsored by, chaired or co-chaired by or

constituted at the request of (a) the central bank for the currency to which the

Reference Rate relates, (b) any central bank or other supervisory authority which

is responsible for supervising the administrator of the Reference Rate, (c) a

group of the aforementioned central banks or other supervisory authorities, or (d)

the Financial Stability Board or any part thereof; and

Successor Rate

means the rate that the Independent Adviser (in consultation with

the Issuer) determines (acting in good faith and in a commercially reasonable

manner) is a successor to or replacement of the Reference Rate which is formally

recommended by any Relevant Nominating Body.

(ix)

Benchmark Discontinuation – SOFR

Notwithstanding the foregoing provisions of this Condition 3(b) (

Interest on Floating

Rate Notes

), if:

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70

(1)

 the Reference Rate specified in the applicable Final Terms is either

Compounded Daily SOFR or Average SOFR; and

(2)

 any Rate of Interest (or any component part thereof) remains to be

determined by reference to the Benchmark,

then the following provisions shall apply:

(A)

Benchmark Replacement

If the Issuer or its designee determines prior to the Reference Time on the relevant

Interest Determination Date that a Benchmark Transition Event and its related

Benchmark Replacement Date have occurred with respect to the then-current

Benchmark, the Benchmark Replacement will replace the then-current Benchmark for

all purposes relating to the Notes in respect of all determinations on such date and all

determinations on all subsequent dates (subject to any subsequent application of this

Condition 3(b)(ix) with respect to such Benchmark Replacement).

In the event that the Issuer or its designee is unable to, or does not, determine a

Benchmark Replacement, or a Benchmark Replacement is not implemented in

accordance with this Condition 3(b)(ix), prior to 5:00 p.m. (New York City time) on the

relevant Interest Determination Date, the Rate of Interest for the relevant Interest

Period shall be:

(1)

 that determined as at the last preceding Interest Determination Date (though

substituting, where a different Margin, Maximum Rate of Interest and/or

Minimum Rate of Interest is to be applied to the relevant Interest Period from

that which applied to the last preceding Interest Period, the Margin, Maximum

Rate of Interest and/or Minimum Rate of Interest (as the case may be)

relating to the relevant Interest Period, in place of the Margin, Maximum Rate

of Interest and/or Minimum Rate of Interest (as applicable) relating to that last

preceding Interest Period); or

(2)

 if there is no such preceding Interest Determination Date, the initial Rate of

Interest which would have been applicable to such Series of Notes for the first

scheduled Interest Period had the Notes been in issue for a period equal in

duration to the first scheduled Interest Period but ending on (and excluding)

the Interest Commencement Date (and applying the Margin and, if applicable,

any Maximum Rate of Interest and/or Minimum Rate of Interest, applicable to

the first scheduled Interest Period).

(B)

Benchmark Replacement Conforming Changes

In connection with the implementation of a Benchmark Replacement, the Issuer or its

designee will have the right to make Benchmark Replacement Conforming Changes

from time to time.

The Issuer shall be obliged, and the Issuer shall direct the Agent (if applicable) who

(upon such direction) shall be obliged, in each case without the requirement for any

consent or approval of the Noteholders or the Couponholders, to use its reasonable

endeavours to effect any Benchmark Replacement Conforming Changes (including,

inter alia

, by the execution of a supplemental Agency Agreement). For the avoidance

of doubt, no Noteholder or Couponholder consent shall be required in connection with

effecting the Benchmark Replacement Conforming Changes or such other changes,

0010155-0003437 UKO2: 2005996996.8

71

including for the execution of any documents, amendments or other steps by the

Issuer, the Guarantor (in the case of Notes having the benefit of the Guarantee) or

the Agent (if required).

Notwithstanding the foregoing provisions of this Condition, the Agent shall not be

required to agree to the amendments and changes referred to above that in the

Agent’s opinion, acting reasonably and in good faith, imposes more onerous

obligations upon it or exposes it to additional duties, responsibilities or liability, or

reduces or amends the protective provisions afforded to the Agent in the Agency

Agreement.

(C)

Decisions and Determinations

Any determination, decision or election that may be made by the Issuer or its

designee pursuant to this Condition 3(b)(ix), including (without limitation) any

determination with respect to a tenor, rate or adjustment or of the occurrence or non-

occurrence of an event, circumstance or date and any decision to take or refrain from

taking any action or any selection, will be conclusive and binding absent manifest

error, may be made in the Issuer's or its designee's sole discretion (as applicable),

and, notwithstanding anything to the contrary in these Conditions, shall become

effective without any requirement for the consent or approval of Noteholders,

Couponholders or any other party. Neither the Agent nor the Calculation Agent (if

applicable) shall have any responsibility to make any such determinations or exercise

discretion with respect to the foregoing.

In connection with any Benchmark Replacement Conforming Changes in accordance

with this Condition 3(b)(ix), if and for so long as the Notes are admitted to trading and

listed on the official list of a stock exchange, the Issuer shall comply with the rules of

that stock exchange.

The Agent and the Calculation Agent (if applicable) shall be entitled to conclusively

rely on any determination made by the Issuer or its designee and, in the absence of

fraud, negligence or wilful default, will have no liability for actions taken at the

direction of the Issuer or its designee.

(D)

Notice and Certification

Any Benchmark Replacement Conforming Changes determined under this Condition

3(b)(ix) shall be notified promptly by the Issuer to the Agent, the Calculation Agent (if

applicable) and, in accordance with Condition 12 (

Notices

), the Noteholders. Such

notice shall be irrevocable and shall specify the effective date of such Benchmark

Replacement Conforming Changes.

(E)

Definitions

In this Condition 3(b)(ix):

Benchmark

means, initially, SOFR (provided that if a Benchmark Transition Event

and its related Benchmark Replacement Date have occurred with respect to SOFR

(or the published daily SOFR used in the calculation thereof) or any Benchmark

which has replaced it in accordance with this Condition 3(b)(ix), then the term

"

Benchmark

" means the applicable Benchmark Replacement);

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72

Benchmark Replacement

means the first alternative set forth in the order below that

can be determined by the Issuer or its designee as of the Benchmark Replacement

Date:

(1)

 the sum of: (I) the alternate rate of interest that has been selected or

recommended by the Relevant Governmental Body as the replacement for

the then-current Benchmark and (II) the Benchmark Replacement

Adjustment;

(2)

 the sum of: (I) the ISDA Fallback Rate and (II) the Benchmark Replacement

Adjustment; or

(3)

 the sum of: (I) the alternate rate of interest that has been selected by the

Issuer or its designee as the replacement for the then-current Benchmark

giving due consideration to any industry-accepted rate of interest as a

replacement for the then-current Benchmark for U.S. dollar denominated

floating rate notes at such time and (II) the Benchmark Replacement

Adjustment;

Benchmark Replacement Adjustment

means the first alternative set forth in the

order below that can be determined by the Issuer or its designee as of the

Benchmark Replacement Date:

(1)

 the spread adjustment, or method for calculating or determining such spread

adjustment, (which may be a positive or negative value or zero) that has been

selected or recommended by the Relevant Governmental Body for the

applicable Unadjusted Benchmark Replacement;

(2)

 if the applicable Unadjusted Benchmark Replacement is equivalent to the

ISDA Fallback Rate, then the ISDA Fallback Adjustment; or

(3)

 the spread adjustment (which may be a positive or negative value or zero)

that has been selected by the Issuer or its designee giving due consideration

to any industry-accepted spread adjustment, or method for calculating or

determining such spread adjustment, for the replacement of the then-current

Benchmark with the applicable Unadjusted Benchmark Replacement for U.S.

dollar denominated floating rate notes at such time;

Benchmark Replacement Conforming Changes

means, with respect to any

Benchmark Replacement, any technical, administrative or operational changes

(including changes to the definition of Interest Period, timing and frequency of

determining rates and making payments of interest, rounding amounts or tenors, and

other administrative matters) that the Issuer or its designee decides may be

appropriate to reflect the adoption of such Benchmark Replacement in a manner

substantially consistent with market practice (or, if the Issuer or its designee decides

that adoption of any portion of such market practice is not administratively feasible or

if the Issuer or its designee determines that no market practice for use of the

Benchmark Replacement exists, in such other manner as the Issuer or its designee

determines is reasonably necessary);

Benchmark Replacement Date

means the earliest to occur of the following events

with respect to the then-current Benchmark (including the daily published component

used in the calculation thereof):

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73

(1)

 in the case of paragraph (1) or (2) of the definition of "Benchmark Transition

Event", the later of (1) the date of the public statement or publication of

information referenced therein and (2) the date on which the administrator of

the Benchmark permanently or indefinitely ceases to provide the Benchmark

(or such component); or

(2)

 in the case of paragraph (3) of the definition of "Benchmark Transition Event",

the date of the public statement or publication of information referenced

therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement

Date occurs on the same day as, but earlier than, the Reference Time on the relevant

Interest Determination Date, the Benchmark Replacement Date will be deemed to

have occurred prior to the Reference Time for such determination;

Benchmark Transition Event

means the occurrence of one or more of the following

events with respect to the then-current Benchmark (including the daily published

component used in the calculation thereof):

(1)

 a public statement or publication of information by or on behalf of the

administrator of the Benchmark (or such component) announcing that such

administrator has ceased or will cease to provide the Benchmark (or such

component), permanently or indefinitely, provided that, at the time of such

statement or publication, there is no successor administrator that will continue

to provide the Benchmark (or such component);

(2)

 a public statement or publication of information by the regulatory supervisor

for the administrator of the Benchmark (or such component), the central bank

for the currency of the Benchmark (or such component), an insolvency official

with jurisdiction over the administrator for the Benchmark (or such

component), a resolution authority with jurisdiction over the administrator for

the Benchmark (or such component) or a court or an entity with similar

insolvency or resolution authority over the administrator for the Benchmark (or

such component), which states that the administrator of the Benchmark (or

such component) has ceased or will cease to provide the Benchmark (or such

component) permanently or indefinitely, provided that, at the time of such

statement or publication, there is no successor administrator that will continue

to provide the Benchmark (or such component); or

(3)

 a public statement or publication of information by the regulatory supervisor

for the administrator of the Benchmark announcing that the Benchmark is no

longer representative;

designee

means an affiliate or any other agent of the Issuer;

ISDA Definitions

means the 2006 ISDA Definitions published by ISDA or any

successor thereto, as amended or supplemented from time to time, or any successor

definitional booklet for interest rate derivatives published from time to time;

ISDA Fallback Adjustment

means the spread adjustment (which may be a positive

or negative value or zero) that would apply for derivatives transactions referencing

the ISDA Definitions to be determined upon the occurrence of an index cessation

event with respect to the Benchmark;

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74

ISDA Fallback Rate

means the rate that would apply for derivatives transactions

referencing the ISDA Definitions to be effective upon the occurrence of an index

cessation date with respect to the Benchmark for the applicable tenor excluding the

applicable ISDA Fallback Adjustment;

Reference Time

with respect to any determination of the Benchmark means (1) if the

Benchmark is SOFR, 3:00 p.m. (New York City time) or such other time as is

reasonably agreed between the Issuer or its designee and the Agent or the

Calculation Agent, as applicable and (2) if the Benchmark is not SOFR, the time

determined by the Issuer or its designee in accordance with the Benchmark

Replacement Conforming Changes;

Relevant Governmental Body

means the Federal Reserve Board and/or the

Federal Reserve Bank of New York, or a committee officially endorsed or convened

by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any

successor thereto;

SOFR

with respect to any day means the Secured Overnight Financing Rate

published for such day by the SOFR Administrator on the SOFR Administrator's

Website;

SOFR Administrator

means the Federal Reserve Bank of New York (or a successor

administrator of SOFR);

SOFR Administrator's Website

means the website of the Federal Reserve Bank of

New York, or any successor source; and

Unadjusted Benchmark Replacement

means the Benchmark Replacement

excluding the Benchmark Replacement Adjustment.

(c)

 Accrual of Interest

Each Note (or in the case of the redemption of part only of a Note, that part only of such

Note) will cease to bear interest (if any) from the date for its redemption unless payment of

principal is improperly withheld or refused. In such event, interest will continue to accrue until

whichever is the earlier of:

(i)

 the date on which all amounts due in respect of such Note have been paid; and

(ii)

 five days after the date on which the full amount of the moneys payable in respect of

such Note has been received by the Agent and notice to that effect has been given to

the Noteholders in accordance with Condition 12 (

Notices

).

4. Payments

(a)

 Method of Payment

Subject as provided below:

(i)

 payments in a Specified Currency other than euro will be made by transfer to an

account in the relevant Specified Currency maintained by the payee with, or at the

option of the payee by a cheque in such Specified Currency drawn on, a bank in the

principal financial centre of the country of such Specified Currency (which, if the

Specified Currency is New Zealand dollars, shall be Auckland); and

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75

(ii)

 payments in euro will be made by credit or transfer to a euro account (or any other

account to which euro may be credited or transferred) specified by the payee or at

the option of the payee, by a euro cheque.

Payments will be subject in all cases to any fiscal or other laws and regulations applicable

thereto in the place of payment, but without prejudice to the provisions of Condition 6

(

Taxation

).

(b)

 Presentation of definitive Notes and Coupons

Payments of principal in respect of definitive Notes will (subject as provided below) be made

in the manner provided in paragraph (a) above only against presentation and surrender (or,

in the case of part payment of any sum due, endorsement) of definitive Notes, and payments

of interest in respect of definitive Notes will (subject as provided below) be made as

aforesaid only against presentation and surrender (or, in the case of part payment of any

sum due, endorsement) of Coupons, in each case at the specified office of any Paying Agent

outside the United States (which expression, as used herein, means the United States of

America (including the States and the District of Columbia and its possessions)).

Fixed Rate Notes in definitive form should be presented for payment together with all

unmatured Coupons appertaining thereto (which expression shall for this purpose include

Coupons falling to be issued on exchange of matured Talons), failing which the amount of

any missing unmatured Coupon (or, in the case of payment not being made in full, the same

proportion of the amount of such missing unmatured Coupon as the sum so paid bears to

the sum due) will be deducted from the sum due for payment. Each amount of principal so

deducted will be paid in the manner mentioned above against surrender of the relative

missing Coupon at any time before the expiry of 10 years after the Relevant Date (as

defined in Condition 6 (

Taxation

)) in respect of such principal (whether or not such Coupon

would otherwise have become void under Condition 7 (

Prescription

)) or, if later, five years

from the date on which such Coupon would otherwise have become due, but in no event

thereafter.

Upon any Fixed Rate Note in definitive form becoming due and repayable prior to its Maturity

Date, all unmatured Talons (if any) appertaining thereto will become void and no further

Coupons will be issued in respect thereof.

Upon the date on which any Floating Rate Note in definitive form becomes due and

repayable, unmatured Coupons and Talons (if any) relating thereto (whether or not attached)

shall become void and no payment or, as the case may be, exchange for further Coupons

shall be made in respect thereof.

If the due date for redemption of any definitive Note is not an Interest Payment Date, interest

(if any) accrued in respect of such Note from (and including) the preceding Interest Payment

Date or, as the case may be, the Interest Commencement Date shall be payable only

against surrender of the relevant definitive Note.

(c)

 Payments in respect of global Notes

Payments of principal and interest (if any) in respect of Notes represented by any global

Note will (subject as provided below) be made in the manner specified above in relation to

definitive Notes or otherwise in the manner specified in the relevant global Note, where

applicable against presentation or surrender, as the case may be, of such global Note at the

specified office of any Paying Agent outside the United States.

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76

A record of each payment made against presentation or surrender of such global Note,

distinguishing between any payment of principal and any payment of interest, will be made

on such global Note either by the Paying Agent to which it was presented or in the records of

Euroclear and Clearstream, Luxembourg, as applicable.

(d)

 General provisions applicable to payments

The holder of a global Note shall be the only person entitled to receive payments in respect

of Notes represented by such global Note and the Issuer or, as the case may be, the

Guarantor will be discharged by payment to, or to the order of, the holder of such global

Note in respect of each amount so paid. Each of the persons shown in the records of

Euroclear or Clearstream, Luxembourg as the beneficial holder of a particular nominal

amount of Notes represented by such global Note must look solely to Euroclear or

Clearstream, Luxembourg, as the case may be, for their share of each payment so made by

the Issuer or, as the case may be, the Guarantor to, or to the order of, the holder of such

global Note.

Notwithstanding the foregoing provisions of this Condition, if any amount of principal and/or

interest in respect of Notes is payable in U.S. dollars, such U.S. dollar payments of principal

and/or interest in respect of such Notes will be made at the specified office of a Paying

Agent in the United States if:

(i)

 the Issuer has appointed Paying Agents with specified offices outside the United

States with the reasonable expectation that such Paying Agents would be able to

make payment in U.S. dollars at such specified offices outside the United States of the

full amount of principal and interest on the Notes in the manner provided above when

due;

(ii)

 payment of the full amount of such principal and interest at all such specified offices

outside the United States is illegal or effectively precluded by exchange controls or

other similar restrictions on the full payment or receipt of principal and interest in U.S.

dollars; and

(iii)

 such payment is then permitted under United States law without involving, in the

opinion of the Issuer and the Guarantor (in the case of Notes having the benefit of the

Guarantee), adverse tax consequences to the Issuer and the Guarantor (in the case of

Notes having the benefit of the Guarantee).

(e)

 Payment Day

If the date for payment of any amount in respect of any Note or Coupon is not a Payment

Day, the holder thereof shall not be entitled to payment until the next following Payment Day

in the relevant place and shall not be entitled to further interest or other payment in respect

of such delay. For these purposes,

Payment Day

means any day which (subject to

Condition 7 (

Prescription

)) is:

(i)

 a day on which commercial banks and foreign exchange markets settle payments

and are open for general business (including dealing in foreign exchange and foreign

currency deposits) in:

(a)

 in the case of Notes in definitive form only, the relevant place of presentation;

(b)

 each Additional Financial Centre (other than TARGET System) specified in

the applicable Final Terms;

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77

(ii)

 if TARGET System is specified as an Additional Financial Centre in the applicable

Final Terms, a day on which the TARGET System is open; and

(iii)

 either (1) in relation to any sum payable in a Specified Currency other than euro, a day

on which commercial banks and foreign exchange markets settle payments and are

open for general business (including dealing in foreign exchange and foreign currency

deposits) in the principal financial centre of the country of the relevant Specified

Currency (which if the Specified Currency is New Zealand dollars shall be Auckland) or

(2) in relation to any sum payable in euro, a day on which the TARGET System is

open.

(f)

 Interpretation of Principal and Interest

Any reference in these Terms and Conditions to principal in respect of the Notes shall be

deemed to include, as applicable:

(i)

 any additional amounts which may be payable with respect to principal under

Condition 6 (

Taxation

);

(ii)

 the Final Redemption Amount of the Notes;

(iii)

 the Early Redemption Amount of the Notes;

(iv)

 the Optional Redemption Amount(s) (if any) of the Notes;

(v)

 the Make-Whole Redemption Amount(s) (if any) of the Notes;

(vi)

 the Residual Call Early Redemption Amount (if any) of the Notes; and

(vii)

 any premium and any other amounts (other than interest) which may be payable by

the Issuer under or in respect of the Notes.

Any reference in these Terms and Conditions to interest in respect of the Notes shall be

deemed to include, as applicable, any additional amounts which may be payable with

respect to interest under Condition 6 (

Taxation

).

5. Redemption and Purchase

(a)

 At Maturity

Unless previously redeemed or purchased and cancelled as specified below, each Note will

be redeemed by the Issuer at its Final Redemption Amount specified in, or determined in the

manner specified in, the applicable Final Terms in the relevant Specified Currency on the

Maturity Date.

(b)

 Redemption for Tax Reasons

The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time

(if this Note is not a Floating Rate Note) or on any Interest Payment Date (if this Note is a

Floating Rate Note), on giving not less than 30 nor more than 60 days' notice to the

Noteholders (which notice shall be irrevocable), if:

(i)

 on the occasion of the next payment due under the Notes, the Issuer has or will

become obliged to pay additional amounts as provided or referred to in Condition 6

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78

(

Taxation

) or (in the case of Notes having the benefit of the Guarantee) the Guarantor

would be unable for reasons outside its control to procure payment by the Issuer and

in making payment itself would be required to pay such additional amounts, in each

case as a result of any change in, or amendment to, the laws or regulations of the

Kingdom of Norway or any political subdivision or any authority thereof or therein

having power to tax, or any change in the application or official interpretation of such

laws or regulations, which change or amendment becomes effective on or after the

Issue Date of the first Tranche of the Notes; and

(ii)

 such obligation cannot be avoided by the Issuer or, as the case may be, the Guarantor

(in the case of Notes having the benefit of the Guarantee) taking reasonable measures

available to it,

provided that no such notice of redemption shall be given earlier than 90 days (or, in the

case of Floating Rate Notes, a number of days which is equal to the aggregate of the

number of days falling within the then current interest period applicable to the Floating Rate

Notes plus 60 days) prior to the earliest date on which the Issuer or, as the case may be, the

Guarantor (in the case of Notes having the benefit of the Guarantee) would be obliged to pay

such additional amounts were a payment in respect of the Notes then due.

Prior to the publication of any notice of redemption pursuant to this Condition 5(b)

(

Redemption for Tax Reasons

), the Issuer shall deliver to the Agent a certificate signed by

one director of the Issuer or, as the case may be, one director of the Guarantor (in the case

of Notes having the benefit of the Guarantee) stating that the Issuer is entitled to effect such

redemption and setting forth a statement of facts showing that the conditions precedent to

the right of the Issuer so to redeem have occurred, and an opinion of independent legal

advisers of recognised standing to the effect that the Issuer or, as the case may be, the

Guarantor (in the case of Notes having the benefit of the Guarantee) has or will become

obliged to pay such additional amounts as a result of such change or amendment.

Notes redeemed pursuant to this Condition 5(b) (

Redemption for Tax Reasons

) will be

redeemed at their Early Redemption Amount referred to in paragraph (g) below together (if

appropriate) with interest accrued to (but excluding) the date of redemption.

(c)

 Redemption at the Option of the Issuer (Issuer Call)

If Issuer Call is specified as being applicable in the applicable Final Terms, the Issuer shall,

having given:

(i)

 not less than 15 nor more than 30 days' notice to the Noteholders in accordance with

Condition 12 (

Notices

); and

(ii)

 not less than 15 days before the giving of the notice referred to in (i), notice to the

Agent;

(which notices shall be irrevocable), redeem all or, if so specified in the applicable Final

Terms, some only of the Notes then outstanding on any Optional Redemption Date and at

the Optional Redemption Amount(s) specified in, or determined in the manner specified in,

the applicable Final Terms together, if appropriate, with interest accrued to (but excluding)

the relevant Optional Redemption Date. Any such redemption may, at the Issuer’s discretion,

be subject to one or more conditions precedent, in which case the notice of redemption shall

state the applicable condition precedent(s) and that, in the Issuer’s discretion, the Optional

Redemption Date may be delayed until such time as any or all such conditions shall be

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79

satisfied (or waived by the Issuer in its sole discretion), or such redemption may not occur in

the event that any or all such conditions shall not have been satisfied (or waived by the

Issuer in its sole discretion) by the Optional Redemption Date, or by the Optional

Redemption Date so delayed.

Any such redemption must be of a nominal amount not less than the Minimum Redemption

Amount and not more than a Higher Redemption Amount in each case as may be specified

in the applicable Final Terms. In the case of a partial redemption of Notes, the Notes to be

redeemed (

Redeemed Notes

) will be selected individually by lot, in the case of Redeemed

Notes represented by definitive Notes, and in accordance with the rules of Euroclear and/or

Clearstream, Luxembourg, (to be reflected in the records of Euroclear and Clearstream,

Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion) in

the case of Redeemed Notes represented by a global Note, not more than 30 days prior to

the date fixed for redemption (such date of selection being hereinafter called the

Selection

Date

). In the case of Redeemed Notes represented by definitive Notes, a list of the serial

numbers of such Redeemed Notes will be published in accordance with Condition 12

(

Notices

) not less than 15 days prior to the date fixed for redemption. No exchange of the

relevant global Note will be permitted during the period from (and including) the Selection

Date to (and including) the date fixed for redemption pursuant to this paragraph (c) and

notice to that effect shall be given by the Issuer to the Noteholders in accordance with

Condition 12 (

Notices

) at least 15 days prior to the Selection Date.

(d)

 Make-Whole Redemption

If Make-Whole Redemption is specified as being applicable in the applicable Final Terms,

the Issuer may, having given not less than 15 nor more than 60 days' notice (or such other

notice period as may be specified in the applicable Final Terms) to the Noteholders in

accordance with Condition 12 (

Notices

) (which notice shall be irrevocable and shall specify

the date fixed for redemption (the

Make-Whole Redemption Date

)), redeem all or (if

redemption in part is specified as being applicable in the applicable Final Terms) some only

of the Notes then outstanding on any Make-Whole Redemption Date and at the Make-Whole

Redemption Amount together, if appropriate, with interest accrued to (but excluding) the

relevant Make-Whole Redemption Date. Any such redemption may, at the Issuer’s

discretion, be subject to one or more conditions precedent, in which case the notice of

redemption shall state the applicable condition precedent(s) and that, in the Issuer’s

discretion, the Make-Whole Redemption Date may be delayed until such time as any or all

such conditions shall be satisfied (or waived by the Issuer in its sole discretion), or such

redemption may not occur in the event that any or all such conditions shall not have been

satisfied (or waived by the Issuer in its sole discretion) by the Make-Whole Redemption

Date, or by the Make-Whole Redemption Date so delayed.

If redemption in part is specified as being applicable in the applicable Final Terms, any such

redemption must be of a nominal amount not less than the Minimum Redemption Amount

and not more than the Maximum Redemption Amount in each case as may be specified in

the applicable Final Terms.

In the case of a partial redemption of Notes, the Redeemed Notes will be selected

individually by lot, in the case of Redeemed Notes represented by definitive Notes, and in

accordance with the rules of Euroclear and/or Clearstream, Luxembourg (to be reflected in

the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction

in nominal amount, at their discretion), in the case of Redeemed Notes represented by a

Global Note, on a Selection Date not more than 30 days prior to the Make-Whole

Redemption Date. In the case of Redeemed Notes represented by definitive Notes, a list of

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80

the serial numbers of such Redeemed Notes will be published in accordance with Condition

12 (

Notices

) not less than 15 days prior to the Make-Whole Redemption Date. No exchange

of the relevant Global Note will be permitted during the period from (and including) the

Selection Date to (and including) the Make-Whole Redemption Date pursuant to this

paragraph (d) and notice to that effect shall be given by the Issuer to the Noteholders in

accordance with Condition 12 (

Notices

) at least 15 days prior to the Selection Date.

In this Condition 5(d) (

Make-Whole Redemption

),

Make-Whole Redemption Amount

means (A) the outstanding principal amount of the relevant Note or (B) if higher, the sum, as

determined by the Make-Whole Calculation Agent, of the present values of the remaining

scheduled payments of principal and interest to maturity (or, if Issuer Call is specified as

being applicable in the applicable Final Terms, and the Optional Redemption Amount

applicable to any Optional Redemption Date is specified as being an amount per Calculation

Amount equal to 100 per cent. of the principal amount of the Note, the remaining scheduled

payments of principal and interest to the first such Optional Redemption Date (assuming that

the Notes are to be redeemed on such date), as specified in the applicable Final Terms) on

the Notes to be redeemed (not including any portion of such payments of interest accrued to

the date of redemption) discounted to the Make-Whole Redemption Date on an annual basis

at the Reference Rate plus the Make-Whole Redemption Margin specified in the applicable

Final Terms, where:

CA Selected Bond

means a government security or securities (which, if the Specified

Currency is euro, will be a

German Bundesobligationen

) selected by the Make-Whole

Calculation Agent as having a maturity comparable to the remaining term of the Notes to be

redeemed that would be utilised, at the time of selection and in accordance with customary

financial practice, in pricing new issues of corporate debt securities of comparable maturity

to the remaining term of such Notes;

Make-Whole Calculation Agent

means an independent investment, merchant or

commercial bank or financial institution selected by the Issuer for the purposes of calculating

the Make-Whole Redemption Amount, and notified to the Noteholders in accordance with

Condition 12 (

Notices

);

Reference Bond

means (A) if CA Selected Bond is specified in the applicable Final Terms,

the relevant CA Selected Bond or (B) if CA Selected Bond is not specified in the applicable

Final Terms, the security specified in the applicable Final Terms, provided that if the Make-

Whole Calculation Agent advises the Issuer that, for reasons of illiquidity or otherwise, the

relevant security specified is not appropriate for such purpose, such other central bank or

government security as the Make-Whole Calculation Agent may, with the advice of

Reference Market Makers, determine to be appropriate;

Reference Bond Price

means (i) the average of three Reference Market Maker Quotations

for the relevant Make-Whole Redemption Date, after excluding the highest and lowest

Reference Market Maker Quotations, (ii) if the Make-Whole Calculation Agent obtains fewer

than three, but more than one, such Reference Market Maker Quotations, the average of all

such quotations, or (iii) if only one such Reference Market Maker Quotation is obtained, the

amount of the Reference Market Maker Quotation so obtained;

Reference Market Maker Quotations

means, with respect to each Reference Market

Maker and any Make-Whole Redemption Date, the average, as determined by the Make-

Whole Calculation Agent, of the bid and asked prices for the Reference Bond (expressed in

each case as a percentage of its principal amount) quoted in writing to the Make-Whole

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81

Calculation Agent at the Quotation Time specified in the applicable Final Terms on the

Reference Rate Determination Day specified in the applicable Final Terms;

Reference Market Makers

means three brokers or market makers of securities such as the

Reference Bond selected by the Make-Whole Calculation Agent or such other three persons

operating in the market for securities such as the Reference Bond as are selected by the

Make-Whole Calculation Agent in consultation with the Issuer; and

Reference Rate

means, with respect to any Make-Whole Redemption Date, the rate per

annum equal to the equivalent yield to maturity of the Reference Bond, calculated using a

price for the Reference Bond (expressed as a percentage of its principal amount) equal to

the Reference Bond Price for such Make-Whole Redemption Date. The Reference Rate will

be calculated on the Reference Rate Determination Day specified in the applicable Final

Terms.

(e)

 Issuer Residual Call

If Issuer Residual Call is specified as being applicable in the applicable Final Terms and, at

any time, the outstanding aggregate nominal amount of the Notes is equal to or less than 25

per cent. (or such other percentage as may be specified in the applicable Final Terms as

being the Residual Call Threshold) of the aggregate nominal amount of the Series issued

(other than as a result of a partial redemption of the Notes pursuant to Condition 5(c)

(

Redemption at the Option of the Issuer (Issuer Call)

) or Condition 5(d) (

Make-Whole

Redemption

)), the Notes may be redeemed at the option of the Issuer in whole, but not in

part, at any time (if this Note is not a Floating Rate Note) or on any Interest Payment Date (if

this Note is a Floating Rate Note), on giving not less than 15 and not more than 60 days’

notice (or such other notice period as may be specified in the applicable Final Terms) to the

Noteholders in accordance with Condition 12 (

Notices

) (which notice shall be irrevocable

and shall specify the date fixed for redemption) at the Residual Call Early Redemption

Amount together, if appropriate, with interest accrued to (but excluding) the date of

redemption.

(f)

 Redemption at the Option of the Noteholders (Investor Put)

If Investor Put is specified as being applicable in the applicable Final Terms, upon the holder

of any Note giving to the Issuer in accordance with Condition 12 (

Notices

) not less than 15

nor more than 30 days' notice the Issuer will, upon the expiry of such notice, redeem, in

whole (but not in part), such Note on the Optional Redemption Date and at the Optional

Redemption Amount specified in the applicable Final Terms together, if appropriate, with

interest accrued to (but excluding) the Optional Redemption Date.

If this Note is in definitive form and held outside Euroclear and Clearstream, Luxembourg, to

exercise the right to require redemption of this Note the holder of this Note must deliver such

Note at the specified office of any Paying Agent at any time during normal business hours of

such Paying Agent falling within the notice period, accompanied by a duly completed and

signed notice of exercise in the form (for the time being current) obtainable from any

specified office of any Paying Agent (a

Put Notice

) and in which the holder must specify a

bank account (or, if payment is by cheque, an address) to which payment is to be made

under this Condition accompanied by this Note or evidence satisfactory to the Paying Agent

concerned that this Note will, following delivery of the Put Notice, be held to its order or

under its control. If this Note is represented by a global Note or is in definitive form and held

through Euroclear or Clearstream, Luxembourg, to exercise the right to require redemption

of this Note the holder of this Note must, within the notice period, give notice to the Agent of

0010155-0003437 UKO2: 2005996996.8

82

such exercise in accordance with the standard procedures of Euroclear and Clearstream,

Luxembourg (which may include notice being given on their instruction by Euroclear or

Clearstream, Luxembourg or any common depositary or common safekeeper, as the case

may be, for them to the Agent by electronic means) in a form acceptable to Euroclear and

Clearstream, Luxembourg from time to time.

Any Put Notice or other notice given in accordance with the standard procedures of

Euroclear and Clearstream, Luxembourg given by a holder of any Note pursuant to this

paragraph shall be irrevocable except where prior to the due date of redemption an Event of

Default shall have occurred and be continuing in which event such holder, at its option, may

elect by notice to the Issuer to withdraw the notice given pursuant to this paragraph and

instead to declare such Note forthwith due and payable pursuant to Condition 8 (

Events of

Default

).

(g)

 Early Redemption Amounts

For the purpose of paragraph (b) above and Condition 8 (

Events of Default

), the Notes will

be redeemed at the Early Redemption Amount calculated as follows:

(i)

 in the case of Notes with a Final Redemption Amount equal to the Issue Price, at the

Final Redemption Amount thereof;

(ii)

 in the case of Notes (other than Zero Coupon Notes) with a Final Redemption Amount

which is or may be less or greater than the Issue Price or which is payable in a

Specified Currency other than that in which the Notes are denominated, at the amount

specified in, or determined in the manner specified in, the applicable Final Terms or, if

no such amount or manner is so specified in the Final Terms, at their nominal amount;

or

(iii)

 in the case of Zero Coupon Notes, at its Early Redemption Amount calculated in

accordance with the following formula:

Early Redemption Amount = RP x (1 + AY)

y

where:

RP

means the Reference Price;

AY

means the Accrual Yield expressed as a decimal; and

y

is the Day Count Fraction specified in the applicable Final Terms which will be

either (i) 30/360 (in which case the numerator will be equal to the number of days

(calculated on the basis of a 360 day year consisting of 12 months of 30 days each)

from (and including) the Issue Date of the first Tranche of the Notes to (but

excluding) the date fixed for redemption or (as the case may be) the date upon which

such Note becomes due and repayable and the denominator will be 360 (ii)

Actual/360 (in which case the numerator will be equal to the actual number of days

from (and including) the Issue Date of the first Tranche of the Notes to (but

excluding) the date fixed for redemption or (as the case may be) the date upon which

such Note becomes due and repayable and the denominator will be 360) or (iii)

Actual/365 (in which case the numerator will be equal to the actual number of days

from (and including) the Issue Date of the first Tranche of the Notes to (but

excluding) the date fixed for redemption or (as the case may be) the date upon which

such Note becomes due and repayable and the denominator will be 365).

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83

(h)

 Purchases

The Issuer or the Guarantor (in the case of Notes having the benefit of the Guarantee) may

at any time purchase Notes (provided that, in the case of definitive Notes, all unmatured

Coupons and Talons appertaining thereto are purchased therewith) at any price in the open

market or otherwise. Such Notes may be held, reissued, resold or, at the option of the Issuer

or the Guarantor (in the case of Notes having the benefit of the Guarantee), surrendered to

any Paying Agent for cancellation.

(i)

 Cancellation

All Notes which are redeemed will forthwith be cancelled (together with all unmatured

Coupons attached thereto or surrendered therewith at the time of redemption). All Notes so

cancelled and the Notes purchased and cancelled pursuant to paragraph (g) above (together

with all unmatured Coupons cancelled therewith) shall be forwarded to the Agent and cannot

be reissued or resold.

(j)

 Late payment on Zero Coupon Notes

If the amount payable in respect of any Zero Coupon Note upon redemption of such Zero

Coupon Note pursuant to paragraph (a), (b), (c), (d), (e) or (f) above or upon its becoming

due and repayable as provided in Condition 8 (

Events of Default

) is improperly withheld or

refused, the amount due and repayable in respect of such Zero Coupon Note shall be the

amount calculated as provided in paragraph (g)(iii) above as though the references therein

to the date fixed for the redemption or the date upon which such Zero Coupon Note

becomes due and payable were replaced by references to the date which is the earlier of:

(i)

 the date on which all amounts due in respect of such Zero Coupon Note have been

paid; and

(ii)

 five days after the date on which the full amount of the moneys payable has been

received by the Agent and notice to that effect has been given to the Noteholders in

accordance with Condition 12 (

Notices

).

6. Taxation

All payments of principal and interest in respect of the Notes and Coupons by the Issuer or

(in the case of Notes having the benefit of the Guarantee) the Guarantor shall be made free

and clear of, and without withholding or deduction for, any taxes, duties, assessments or

governmental charges (

Taxes

) of whatever nature imposed, levied, collected, withheld or

assessed by or within the Kingdom of Norway or any authority therein or thereof having

power to tax, unless such withholding or deduction is required by law. In such event, the

Issuer or, as the case may be, the Guarantor (in the case of Notes having the benefit of the

Guarantee) shall pay such additional amounts as will result in receipt by the holders of the

Notes or Coupons of such amounts as would have been received by them had no such

withholding or deduction been required, except that no such additional amounts shall be

payable with respect to any Note or Coupon:

(a)

 presented for payment in the Kingdom of Norway; or

(b)

 the holder or beneficial owner of which is liable for such Taxes in respect of such

Note or Coupon by reason of the holder or beneficial owner having some connection

with the Kingdom of Norway other than the mere holding of such Note or Coupon; or

0010155-0003437 UKO2: 2005996996.8

84

(c)

 presented for payment more than 30 days after the Relevant Date except to the

extent that the holder thereof would have been entitled to such additional amounts on

presenting the same for payment on such thirtieth day; or

(d)

 on account of any Taxes that are payable pursuant to the Norwegian Tax Act section

10-80 on payments to related companies or undertakings (as such term is defined in

the Norwegian Tax Act section 10-82) tax resident in a low-tax jurisdiction (as such

term is defined in the Norwegian Tax Act section 10-63).

In addition, any amounts to be paid on the Notes will be paid net of any deduction or

withholding imposed or required pursuant to sections 1471 through 1474 of the U.S. Internal

Revenue Code of 1986 (or any regulations thereunder or official interpretations thereof)

(

FATCA

) or any intergovernmental agreement with the United States to implement FATCA

(

IGA

) (or any law implementing such an intergovernmental agreement), and no additional

amounts will be required to be paid on account of any such deduction or withholding.

Relevant Date

means whichever is the later of (i) the date on which such payment first

becomes due and (ii) if the full amount payable has not been received by the Agent on or

prior to such due date, the date on which, the full amount having been so received, notice to

that effect is duly given to the Noteholders in accordance with Condition 12 (

Notices

).

7. Prescription

The Notes and Coupons will become void unless claims in respect of principal and/or

interest are made within a period of 10 years (in the case of principal) and five years (in the

case of interest) after the Relevant Date therefor.

There shall not be included in any Coupon sheet issued on exchange of a Talon any Coupon

the claim for payment in respect of which would be void pursuant to this Condition 7

(

Prescription

) or Condition 4(b) (

Presentation of definitive Notes and Coupons)

or any Talon

which would be void pursuant to Condition 4(b) (

Presentation of definitive Notes and

Coupons)

.

8. Events of Default

If any one or more of the following events (each an

Event of Default

) shall occur and is

continuing:

(a)

 the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor

fails to pay any principal or interest on any of the Notes when due and such failure

continues, in the case of principal or interest, for a period of 30 days; or

(b)

 the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor

does not perform or comply with any one or more of its other obligations in the Notes

which default is incapable of remedy or is not remedied within 90 days after notice of

such default shall have been given to the Agent at its specified office by any

Noteholder; or

(c)

 the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor

is (or is, or could be, deemed by law or a court to be) insolvent or bankrupt or unable

to pay its debts, stops, suspends or threatens to stop or suspend payment of all or a

material part of (or of a particular type of) its debts, proposes or makes a general

assignment or an arrangement or composition with or for the benefit of the relevant

creditors in respect of any of such debts or a moratorium is agreed or declared in

0010155-0003437 UKO2: 2005996996.8

85

respect of or affecting all or any part of (or of a particular type of) the debts of the

Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor; or

(d)

 (A) an order is made or an effective resolution passed for the winding-up or dissolution

of the Issuer or (in the case of Notes having the benefit of the Guarantee) the

Guarantor, or (B) the Issuer or (in the case of Notes having the benefit of the

Guarantee) the Guarantor ceases or threatens to cease to carry on all or substantially

all of its business or operations, except:

(i)

 (in the case of sub-paragraph (B)) in the case of an Asset Transfer;

(ii)

 in the case of a Permitted Reorganisation; or

(iii)

 for the purpose of and followed by any other reconstruction, amalgamation,

reorganisation, merger or consolidation, on terms approved by an Extraordinary

Resolution of the Noteholders; or

(e)

 other than in respect of the termination of the Guarantee pursuant to Condition 2(c)

(

Termination of Guarantee

), if the Guarantee ceases to be, or is claimed by the Issuer

or the Guarantor not to be, in full force and effect; or

(f)

 any event occurs which under the laws of any relevant jurisdiction has an analogous

effect to any of the events referred to in (c) to (e) above,

then any Note may, by notice given in writing to the Agent at its specified office by the holder

be declared immediately due and payable whereupon it shall become immediately due and

payable at the Early Redemption Amount (as described in Condition 5(g) (

Early Redemption

Amounts

)), together with accrued interest (if any) to the date of repayment, without further

formality unless such Event of Default shall have been remedied prior to the receipt of such

notice by the Agent.

As used herein:

Asset Transfer

means, at any particular time, any transfer or transfers by the Issuer or (in

the case of Notes having the benefit of the Guarantee) the Guarantor of all or substantially

all of its and its Subsidiaries' business or operations, taken as a whole, to one or more direct

or indirect wholly-owned Subsidiaries and/or, in the case of the Guarantor, to the Issuer;

Permitted Reorganisation

means any (i) consolidation by the Issuer or (in the case of

Notes having the benefit of the Guarantee) the Guarantor with, or merger of the Issuer or (in

the case of Notes having the benefit of the Guarantee) the Guarantor into, another person,

or (ii) conveyance, transfer or lease by the Issuer or (in the case of Notes having the benefit

of the Guarantee) the Guarantor of all or substantially all of its and its Subsidiaries'

properties and assets, taken as a whole, to any person, in each case where:

(a)

 the person formed by such consolidation into which the Issuer or the Guarantor, as

the case may be, is merged or the person which acquires by conveyance or transfer,

or which leases, all or substantially all of the properties and assets of the Issuer and

its Subsidiaries or the Guarantor and its Subsidiaries, in each case taken as a whole,

(such person, the Successor) shall be a corporation, partnership or trust, shall be

organised and validly existing under the laws of any jurisdiction and shall expressly

assume, by way of a deed of assumption governed by English law (the

Deed of

Assumption

), all obligations of the Issuer and/or the Guarantor, as applicable, under

the Notes and/or the Guarantee, as applicable; and

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86

(b)

 the Issuer or the Guarantor, as the case may be, has delivered to the Agent (1) a

certificate signed by one director of the Issuer or, as the case may be, one director of

the Guarantor (in the case of Notes having the benefit of the Guarantee) stating that

such consolidation, merger, conveyance, transfer or lease comply with the

requirements of this definition and that all conditions precedent provided for in this

definition relating to such transaction have been complied with, and (2) legal opinions

from (A) a leading firm of lawyers to the Successor in the country of incorporation of

the Successor, and (B) a leading firm of lawyers to the Successor in England, in each

case to the effect that, as a matter of the relevant law, the Deed of Assumption

constitutes legal, valid and binding obligations of the Successor and is enforceable in

accordance with its terms, such opinions to be available for inspection by

Noteholders and Couponholders at the specified offices of the Agent; and

Subsidiary

means, at any particular time, a company of which the Issuer or (in the case of

Notes having the benefit of the Guarantee) the Guarantor directly or indirectly owns or

controls at least a majority of the outstanding voting stock having power to elect directors of

such company.

9. Replacement of Notes, Coupons and Talons

Should any Note, Coupon or Talon be lost, stolen, mutilated, defaced or destroyed, it may be

replaced at the specified office of the Agent or any Replacement Agent upon payment by the

claimant of such costs and expenses as may be incurred in connection therewith and on

such terms as to evidence and indemnity as the Issuer may reasonably require. Mutilated or

defaced Notes, Coupons or Talons must be surrendered before replacements will be issued.

10. Agent and Paying Agents

The names of the initial Agent and the other initial Paying Agents and their initial specified

offices are set out below.

The Issuer and the Guarantor (in the case of Notes having the benefit of the Guarantee) is

entitled to vary or terminate the appointment of any Paying Agent and/or appoint additional

or other Paying Agents and/or approve any change in the specified office through which any

Paying Agent acts, provided that:

(i)

 so long as the Notes are listed on any stock exchange, there will at all times be a

Paying Agent with a specified office in such place as may be required by the rules and

regulations of the relevant stock exchange or other relevant authority;

(ii)

 there will at all times be a Paying Agent with a specified office outside Norway; and

(iii)

 there will at all times be an Agent.

In addition, the Issuer and the Guarantor (in the case of Notes having the benefit of the

Guarantee) shall forthwith appoint a Paying Agent having a specified office in New York City

in the circumstances described in the final paragraph of Condition 4(d) (

General provisions

applicable to payments

). Notice of any variation, termination, appointment or change in

Paying Agents will be given to the Noteholders promptly by the issuer in accordance with

Condition 12 (

Notices

).

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87

11. Exchange of Talons

On and after the Interest Payment Date, on which the final Coupon comprised in any

Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may be

surrendered at the specified office of the Agent or any other Paying Agent in exchange for a

further Coupon sheet including (if such further Coupon sheet does not include Coupons to

(and including) the final date for the payment of interest due in respect of the Note to which it

appertains) a further Talon, subject to the provisions of Condition 7 (

Prescription

).

12. Notices

All notices regarding the Notes shall be published in a leading English language daily

newspaper of general circulation in London. It is expected that such publication will be made

in the Financial Times or any other daily newspaper in London. The Issuer shall also ensure

that notices are duly published in a manner which complies with the rules and regulations of

any stock exchange or other relevant authority on which the Notes are for the time being

listed or by which they have been admitted to trading including publication on the website of

the relevant stock exchange or relevant authority if required by those rules. Any such notice

will be deemed to have been given on the date of the first publication or, where required to

be published in both newspapers, on the date of the first publication in both such

newspapers.

Until such time as any definitive Notes are issued, there may (provided that, in the case of

Notes listed on any stock exchange or admitted to trading by another relevant authority,

such stock exchange or relevant authority permits), so long as the global Note(s) is or are

held in its/their entirety on behalf of Euroclear and Clearstream, Luxembourg, be substituted

for such publication in such newspaper(s) or such website the delivery of the relevant notice

to Euroclear and Clearstream, Luxembourg for communication by them to the holders of the

Notes. Any such notice shall be deemed to have been given to the holders of the Notes on

the day on which the said notice was given to Euroclear and Clearstream, Luxembourg.

Notices to be given by any holder of the Notes shall be in writing and given by lodging the

same, together (in the case of any Note in definitive form) with the relative Note or Notes,

with the Agent. Whilst any of the Notes are represented by a global Note, such notice may

be given by any holder of a Note to the Agent via Euroclear and/or Clearstream,

Luxembourg, as the case may be, in such manner as the Agent and Euroclear and/or

Clearstream, Luxembourg, as the case may be, may approve for this purpose.

13. Meetings of Noteholders, Modification and Waiver

The Agency Agreement contains provisions for convening meetings (including by way of

conference call or by use of a videoconference platform) of Noteholders to consider matters

affecting their interests, including the sanctioning by Extraordinary Resolution of a

modification of any of these Conditions. Such a meeting may be convened by Noteholders

holding not less than 10 per cent. in nominal principal amount of the Notes for the time being

outstanding. The quorum for any meeting convened to consider an Extraordinary Resolution

will be two or more persons holding or representing a clear majority in nominal amount of the

Notes for the time being outstanding, or at any adjourned meeting one or more persons

being or representing Noteholders whatever the nominal amount of the Notes held or

represented, unless the business of such meeting includes consideration of proposals,

inter

alia

, (i) to modify the maturity of the Notes or the dates on which interest is payable in

respect of the Notes, (ii) to reduce or cancel the principal amount of interest on the Notes,

(iii) to change the currency of payment of the Notes or the Coupons, (iv) to modify the

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88

provisions concerning the quorum required at any meeting of Noteholders or the majority

required to pass an Extraordinary Resolution, or (v) to modify or cancel the obligations of the

Guarantor under the Guarantee, in which case the necessary quorum will be two or more

persons holding or representing not less than 75 per cent., or at any adjourned meeting not

less than 25 per cent., in principal amount of the Notes for the time being outstanding. The

Agency Agreement provides that (i) a resolution passed at a meeting duly convened and

held in accordance with the Agency Agreement by a majority consisting of not less than 75

per cent. of the votes cast on such resolution, (ii) a resolution in writing signed by or on

behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the

time being outstanding or (iii) consent given by way of electronic consents through the

relevant clearing system(s) (in a form satisfactory to the Agent) by or on behalf of the holders

of not less than 75 per cent. in nominal amount of the Notes for the time being outstanding,

shall, in each case, be effective as an Extraordinary Resolution of the Noteholders. Any

Extraordinary Resolution duly passed shall be binding on Noteholders (whether or not they

were present at any meeting, and whether or not they voted on such resolution) and on all

Couponholders.

The Agent, the Issuer and (in the case of Notes having the benefit of the Guarantee) the

Guarantor may agree, without the consent of the Noteholders or Couponholders, to:

(i)

 any modification (except as mentioned above) of the Agency Agreement which is, in

the sole opinion of the Issuer and (in the case of Notes having the benefit of the

Guarantee) the Guarantor, not prejudicial to the interests of the Noteholders; or

(ii)

 any modification of the Notes, the Coupons or the Agency Agreement which is, in the

sole opinion of the Issuer and (in the case of Notes having the benefit of the

Guarantee) the Guarantor, of a formal, minor or technical nature or is made to correct

a manifest error or to comply with mandatory provisions of the law of the jurisdiction in

which the Issuer is incorporated.

Any such modification shall be binding on the Noteholders and the Couponholders and any

such modification shall be notified to the Noteholders in accordance with Condition 12

(

Notices

) as soon as practicable thereafter.

In addition, the Agent shall be obliged to use its reasonable endeavours to effect any

Benchmark Amendments or Benchmark Replacement Confirming Changes in the

circumstances and as otherwise set out in Condition 3(b)(viii) (

Benchmark Discontinuation

)

or Condition 3(b)(ix) (

Benchmark Discontinuation – SOFR

) above (as applicable), without the

consent of the Noteholders or the Couponholders.

14. Substitution

The Issuer, or any previously substituted company, may at any time, without the consent of

the Noteholders or the Couponholders, substitute for itself as principal debtor under the

Notes and the Coupons a company (the

Substitute

) as principal debtor under the Notes or

Coupons in the manner specified in Schedule 6 to the Agency Agreement, provided that no

payment in respect of the Notes or the Coupons is at the relevant time overdue. The

substitution shall be made by a deed poll (the

Deed Poll

), to be substantially in the form

exhibited to the Agency Agreement, and may take place only if:

(i)

 the obligations of the Substitute under the Deed Poll, the Notes and the Coupons shall

be unconditionally and irrevocably guaranteed by Equinor ASA (in such capacity, the

0010155-0003437 UKO2: 2005996996.8

89

New Guarantor

and such guarantee, the

New Guarantee

) and (in the case of Notes

having the benefit of the Guarantee) the Guarantor, by means of the Deed Poll;

(ii)

 all action, conditions and things required to be taken, fulfilled and done (including the

obtaining of any necessary consents) to ensure that the Deed Poll, the Notes and

Coupons represent valid, legally binding and enforceable obligations of the Substitute

and in the case of the Deed Poll of the New Guarantor and (in the case of Notes

having the benefit of the Guarantee) the Guarantor have been taken, fulfilled and done

and are in full force and effect;

(iii)

 the Substitute shall have become party to the Agency Agreement, with any appropriate

consequential amendments, as if it had been an original party to it;

(iv)

 each stock exchange or listing authority which has the Notes listed on such stock

exchange shall have confirmed that following the proposed substitution of the

Substitute the Notes would continue to be listed on such stock exchange;

(v)

 legal opinions addressed to the Noteholders shall have been delivered to them (care of

the Agent) from a lawyer or firm of lawyers with a leading securities practice in (i) the

Kingdom of Norway and, if applicable, any Substitute Jurisdiction (as defined in the

final paragraph of this Condition 14 (

Substitution

)) and (ii) England, in each case as to

the fulfilment of the preceding conditions of this Condition 14 (

Substitution

) and the

other matters specified in the Deed Poll; and

(vi)

 the Issuer shall have given at least 14 days' prior notice of such substitution to the

Noteholders, stating that copies, or, pending execution, the agreed text, of all

documents in relation to the substitution which are referred to above, or which might

otherwise reasonably be regarded as material to Noteholders, will be available for

inspection at the specified office of each of the Paying Agents. References in

Condition 8 (

Events of Default

) to obligations under the Notes shall be deemed to

include obligations under the Deed Poll, and the events listed in Condition 8 (

Events of

Default

) shall be deemed to include the New Guarantee not being (or being claimed by

the New Guarantor not to be) in full force and effect and the provisions of Condition

8(c) to 8(e) (

Events of Default

) inclusive (other than the words "other than in respect of

the termination of the Guarantee pursuant to Condition 2(c) (

Termination of

Guarantee

)" in Condition 8(e)) shall be deemed to apply in addition to the New

Guarantor.

In connection with any proposed substitution pursuant to this Condition 14 (

Substitution

), the

Issuer (or previously substituted company, as the case may be) or Substitute shall not be

required to have regard to, or be in any way liable for, the consequences of such substitution

for individual Noteholders or the Couponholders resulting from their being for any purpose

domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any

particular territory. No Noteholder or Couponholder shall, in connection with any such

substitution, be entitled to claim from the Issuer (or previously substituted company, as the

case may be) or Substitute any indemnification or payment in respect of any tax

consequence of any such substitution upon such individual Noteholders or Couponholders,

except to the extent already provided in Condition 6 (

Taxation

) as modified in accordance

with the following paragraph.

Where a substitution takes place pursuant to this Condition 14 (

Substitution

) and the

Substitute is subject, by reason of its incorporation or residence for tax purposes, to a

jurisdiction or any political subdivision or any authority thereof or therein having power to tax

0010155-0003437 UKO2: 2005996996.8

90

(the

Substitute Jurisdiction

) other than the Kingdom of Norway (or, as the case may be,

the jurisdiction of incorporation or residence for tax purposes of the preceding substituted

company) or any political subdivision or any authority thereof or therein having power to tax

(the

Previous Jurisdiction

), references to the Previous Jurisdiction in Condition 5(b)

(

Redemption for Tax Reasons

) and Condition 6 (

Taxation

) shall, in respect of any payments

to be made by the Substitute (but not in respect of payments to be made by (A) the New

Guarantor under the New Guarantee or (B) (in the case of Notes having the benefit of the

Guarantee) the Guarantor), be deemed to be replaced by references to the Substitute

Jurisdiction, and Conditions 5(b) (

Redemption for Tax Reasons

) and 6 (

Taxation

) shall be

deemed to be modified accordingly when the substitution takes place.

15. Further Issues

The Issuer shall be at liberty from time to time without the consent of the Noteholders or

Couponholders to create and issue further notes having terms and conditions the same as

the Notes or the same in all respects save for the amount and date of the first payment of

interest thereon and so that the same shall be consolidated and form a single Series with the

outstanding Notes.

16. Contracts (Rights of Third Parties) Act 1999

A person who is not a Noteholder has no right under the Contracts (Rights of Third Parties)

Act 1999 (the Act) to enforce any term of the Notes, but this does not affect any right or

remedy of a third party which exists or is available apart from the Act.

17. Governing Law and Submission to Jurisdiction

(a)

 The Agency Agreement, the Guarantee, the Notes and the Coupons and any non-

contractual obligations arising out of or in connection with the Agency Agreement, the

Guarantee, the Notes and the Coupons are governed by, and shall be construed in

accordance with, English law.

(b)

 Subject to paragraph (c) below, the courts of England are to have jurisdiction to settle

any disputes (including a dispute relating to any non-contractual obligations) which

may arise out of or in connection with the Guarantee, the Notes or the Coupons and

accordingly any legal action or proceedings arising out of or in connection with the

Guarantee, the Notes or the Coupons (

Proceedings

) may be brought in such courts.

Each of the Issuer and the Guarantor irrevocably submits to the jurisdiction of such

courts and waives any objection to Proceedings in any such courts whether on the

ground of venue or on the ground that the Proceedings have been brought in an

inconvenient forum.

(c)

 This paragraph (c) is for the benefit of each of the Noteholders and Couponholders

only. To the extent permitted by applicable law, each of the Noteholders and

Couponholders may take Proceedings against the Issuer and/or the Guarantor in any

other court of competent jurisdiction and concurrent Proceedings in any number of

jurisdictions.

(d)

 Each of the Issuer and the Guarantor irrevocably appoints Equinor UK Limited at its

registered office in England for the time being at One Kingdom Street, Paddington

Central, London W2 6BD to receive service of process in any Proceedings in England

based on any of the Notes or Coupons. If for any reason the Issuer or Guarantor does

not have such an agent in England, it will promptly appoint a substitute process agent

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91

and notify the Noteholders of such appointment. Nothing herein shall affect the right to

serve process in any other manner permitted by law.

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AGENT

The Bank of New York Mellon, London

Branch 160 Queen Victoria Street

London EC4V 4LA

United Kingdom

PAYING AGENT

The Bank of New York Mellon SA/NV, Luxembourg Branch

Vertigo Building - Polaris

2-4 rue, Eugène

Ruppert L-2453

Luxembourg

and/or such other or further Agent and other or further Paying Agents and/or specified offices as

may from time to time be duly appointed by the Issuer and notice of which has been given to the

Noteholders.

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93

SCHEDULE 2

FORMS OF GLOBAL AND DEFINITIVE NOTES, COUPONS AND TALONS

PART 1

FORM OF TEMPORARY GLOBAL NOTE

EQUINOR ASA

TEMPORARY GLOBAL NOTE

Unconditionally and (subject to Condition 2(c)) irrevocably

guaranteed by EQUINOR ENERGY AS

This Global Note is a Temporary Global Note in respect of a duly authorised issue of Notes (the

Notes

) of Equinor ASA (the

Issuer

) described, and having the provisions specified, in Part A of the

attached Final Terms (the

Final Terms

). References in this Global Note to the Conditions shall be

to the Terms and Conditions of the Notes other than VPS Notes as set out in Schedule 1 to the

Agency Agreement (as defined below) as completed by the information set out in the Final Terms,

but in the event of any conflict between the provisions of (a) that Schedule or (b) this Global Note

and the information set out in the Final Terms, the Final Terms will prevail.

Words and expressions defined or set out in the Conditions and/or the Final Terms shall have the

same meaning when used in this Global Note.

This Global Note is issued subject to, and with the benefit of, the Conditions and an Agency

Agreement (the

Agency Agreement

, which expression shall be construed as a reference to that

agreement as the same may be amended, supplemented, novated or restated from time to time)

dated 11 May 2023 and made between the Issuer, Equinor Energy AS as guarantor (the

Guarantor

), The Bank of New York Mellon, London Branch (the

Agent

) and the other agents

named in it.

For value received the Issuer, subject to and in accordance with the Conditions, promises to pay to

the bearer of this Global Note on the Maturity Date and/or on such earlier date(s) as all or any of

the Notes represented by this Global Note may become due and repayable in accordance with the

Conditions, the amount payable under the Conditions in respect of the Notes represented by this

Global Note on each such date and to pay interest (if any) on the nominal amount of the Notes

from time to time represented by this Global Note calculated and payable as provided in the

Conditions together with any other sums payable under the Conditions, upon (if the Final Terms

indicates that this Global Note is not intended to be a New Global Note) presentation and, at

maturity, surrender of this Global Note to or to the order of the Agent or any of the other paying

agents located outside the United States (except as provided in the Conditions) from time to time

appointed by the Issuer and the Guarantor in respect of the Notes, but in each case subject to the

requirements as to certification provided below.

If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal

amount of Notes represented by this Global Note shall be the aggregate nominal amount from time

to time entered in the records of both Euroclear Bank SA/NV and Clearstream Banking S.A.

(together, the

relevant Clearing Systems

). The records of the relevant Clearing Systems (which

expression in this Global Note means the records that each relevant Clearing System holds for its

customers which reflect the amount of such customer's interest in the Notes) shall be conclusive

evidence of the nominal amount of Notes represented by this Global Note and, for these purposes,

a statement issued by a relevant Clearing System stating the nominal amount of Notes

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represented by this Global Note at any time (which statement shall be made

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95

available to the bearer upon request) shall be conclusive evidence of the records of the relevant

Clearing System at that time.

If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the

nominal amount of the Notes represented by this Global Note shall be the amount stated in the

Final Terms or, if lower, the nominal amount most recently entered by or on behalf of the Issuer in

the relevant column in Part 2 or 3 of Schedule One or in Schedule Two.

On any redemption or payment of interest being made in respect of, or purchase and cancellation

of, any of the Notes represented by this Global Note the Issuer shall procure that:

(a)

 if the Final Terms indicates that this Global Note is intended to be a New Global Note,

details of such redemption, payment or purchase and cancellation (as the case may be)

shall be entered

pro rata

in the records of the relevant Clearing Systems and, upon any

such entry being made, the nominal amount of the Notes recorded in the records of the

relevant Clearing Systems and represented by this Global Note shall be reduced by the

aggregate nominal amount of the Notes so redeemed or purchased and cancelled; or

(b)

 if the Final Terms indicates that this Global Note is not intended to be a New Global Note,

details of such redemption, payment or purchase and cancellation (as the case may be)

shall be entered by or on behalf of the Issuer in Schedule One and the relevant space in

Schedule One recording any such redemption, payment or purchase and cancellation (as

the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption,

purchase and cancellation, the nominal amount of the Notes represented by this Global

Note shall be reduced by the nominal amount of the Notes so redeemed or purchased and

cancelled.

Payments due in respect of Notes for the time being represented by this Global Note shall be

made to the bearer of this Global Note and each payment so made will discharge the Issuer's

obligations in respect thereof. Any failure to make the entries referred to above shall not affect

such discharge.

Prior to the Exchange Date (as defined below), all payments (if any) on this Global Note will only

be made to the bearer hereof to the extent that there is presented to the Agent by a relevant

Clearing System a certificate to the effect that it has received from or in respect of a person entitled

to a particular nominal amount of the Notes (as shown by its records) a certificate of non-US

beneficial ownership in the form required by it. The bearer of this Global Note will not be entitled to

receive any payment of interest due on or after the Exchange Date unless upon due certification

exchange of this Global Note is improperly withheld or refused.

On or after the date (the

Exchange Date

) which is 40 days after the Issue Date this Global Note

may be exchanged in whole or in part (free of charge) for, as specified in the Final Terms, either:

(a)

 security printed Definitive Notes and (if applicable) Coupons and Talons in the form set out

in Part 3, Part 4 and Part 5 respectively of Schedule 2 to the Agency Agreement (on the

basis that all the appropriate details have been included on the face of such Definitive

Notes and (if applicable) Coupons and Talons and the Final Terms (or the relevant

provisions of the Final Terms) have been endorsed on or attached to such Definitive

Notes); or

(b)

 either, (i) if the Final Terms indicates that this Global Note is intended to be a New Global

Note, interests recorded in the records of the relevant Clearing Systems in a Permanent

Global Note or, (ii) if the Final Terms indicates that this Global Note is not intended to be a

New Global Note, a Permanent Global Note, which, in either case, is in or substantially in

the form set out in Part 2 of Schedule 2 to the Agency Agreement (together with the Final

Terms attached to it),

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in each case upon notice being given by a relevant Clearing System acting on the instructions of

any holder of an interest in this Global Note.

If Definitive Notes and (if applicable) Coupons and/or Talons have already been issued in

exchange for all the Notes represented for the time being by the Permanent Global Note, then this

Global Note may only thereafter be exchanged for Definitive Notes and (if applicable) Coupons

and/or Talons in accordance with the terms of this Global Note.

This Global Note may be exchanged by the bearer hereof on any day (other than a Saturday or

Sunday) on which banks are open for general business in London. The Issuer shall procure that,

as appropriate, (i) the Definitive Notes or (as the case may be) the Permanent Global Note issued

and delivered, or (ii) the interests in the Permanent Global Note (where the Final Terms indicates

that this Global Note is intended to be a New Global Note) shall be recorded in the records of the

relevant Clearing System, in each case in exchange for only that portion of this Global Note in

respect of which there shall have been presented to the Agent by a relevant Clearing System a

certificate to the effect that it has received from or in respect of a person entitled to a beneficial

interest in a particular nominal amount of the Notes (as shown by its records) a certificate of non-

US beneficial ownership from such person in the form required by it. The aggregate nominal

amount of Definitive Notes or interests in a Permanent Global Note issued upon an exchange of

this Global Note will, subject to the terms hereof, be equal to the aggregate nominal amount of this

Global Note submitted by the bearer for exchange.

On an exchange of the whole of this Global Note, this Global Note shall be surrendered to or to the

order of the Agent. On an exchange of part only of this Global Note, the Issuer shall procure that:

(a)

 if the Final Terms indicates that this Global Note is intended to be a New Global Note,

details of such exchange shall be entered

pro rata

in the records of the relevant Clearing

Systems; or

(b)

 if the Final Terms indicates that this Global Note is not intended to be a New Global Note,

details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two

and the relevant space in Schedule Two recording such exchange shall be signed by or on

behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes

represented by this Global Note shall be reduced by the nominal amount so exchanged.

On any exchange of this Global Note for a Permanent Global Note, details of such

exchange shall also be entered by or on behalf of the Issuer in Schedule Two to the

Permanent Global Note and the relevant space in Schedule Two to the Permanent Global

Note recording such exchange shall be signed by or on behalf of the Issuer.

Until the exchange of the whole of this Global Note, the bearer of this Global Note shall in all

respects (except as otherwise provided in this Global Note) be entitled to the same benefits as if

they were the bearer of Definitive Notes and the relative Coupons and/or Talons (if any)

represented by this Global Note. Accordingly, except as ordered by a court of competent

jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent may

deem and treat the holder of this Global Note as the absolute owner of this Global Note for all

purposes.

In the event that this Global Note (or any part of it) has become due and repayable in accordance

with the Conditions or that the Maturity Date (if any) has occurred and, in either case, payment in

full of the amount due has not been made to the bearer in accordance with the provisions set out

above, then from 8.00 p.m. (London time) on such day each Noteholder will become entitled to

proceed directly against the Issuer on, and subject to, the terms of the Deed of Covenant executed

by the Issuer on 13 May 2020 (as amended, supplemented, novated and/or restated as at the

Issue Date) in respect of the Notes and the bearer will have no further rights under this Global

Note (but without prejudice to the rights which the bearer or any other person may have under the

Deed of Covenant).

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No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to

enforce any term of this Global Note, but this does not affect any right or remedy of any person

which exists or is available apart from that Act.

If any provision in or obligation under this Global Note is or becomes invalid, illegal or

unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the

validity, legality or enforceability under the law of that jurisdiction of any other provision in or

obligation under this Global Note, and (ii) the validity, legality or enforceability under the law of any

other jurisdiction of that or any other provision in or obligation under this Global Note.

This Global Note and any non-contractual obligations arising out of or in connection with it are

governed by, and shall be construed in accordance with, English law.

This Global Note shall not be valid unless authenticated by the Agent and, if the Final Terms

indicates that this Global Note is intended to be a NGN (i) which is intended to be held in a manner

which would allow Eurosystem eligibility or (ii) in respect of which effectuation is applicable,

effectuated by the entity appointed as common safe-keeper by the relevant Clearing Systems.

IN WITNESS

whereof the Issuer has caused this Global Note to be duly executed on its behalf.

EQUINOR ASA

By:

Authenticated without

recourse, warranty or liability

by

THE BANK OF NEW YORK

MELLON, LONDON BRANCH

By:

Effectuated without recourse,

warranty or liability by

...................................................

as common safekeeper

By:

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SCHEDULE ONE TO THE TEMPORARY GLOBAL NOTE

1

PART 1

INTEREST PAYMENTS

Date

made

Total amount of interest

payable Amount of interest

paid

Confirmation of payment

on behalf of the Issuer

1

 Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New

Global Note.

*

See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine

this amount.

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PART 2

REDEMPTIONS

Date

made

Total amount

of principal

payable

Amount of

principal paid

Remaining nominal

amount of this

Global Note

following such

redemption

*

Confirmation of

redemption on

behalf of the Issuer

*

See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine

this amount.

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PART 3

PURCHASES AND CANCELLATIONS

Date

made

Part of nominal

amount of this Global

Note purchased and

cancelled

Remaining nominal

amount of this Global Note

following such purchase

and cancellation

*

Confirmation of

purchase and

cancellation on behalf

of the Issuer

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SCHEDULE TWO TO THE TEMPORARY GLOBAL NOTE

2

EXCHANGES

FOR DEFINITIVE NOTES OR PERMANENT GLOBAL NOTE

The following exchanges of a part of this Global Note for Definitive Notes or a Permanent Global

Note have been made:

Date

made

Nominal amount of this

Global Note exchanged

for Definitive Notes or a

Permanent Global Note

Remaining nominal

amount of this Global

Note following such

exchange

*

Notation made on

behalf of the Issuer

2

 Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New

Global Note.

*

 See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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PART 2

FORM OF PERMANENT GLOBAL NOTE

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO

LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE

LIMITATIONS PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE INTERNAL REVENUE

CODE.

EQUINOR ASA

PERMANENT GLOBAL NOTE

Unconditionally and (subject to Condition 2(c)) irrevocably

guaranteed by EQUINOR ENERGY AS

This Global Note is a Permanent Global Note in respect of a duly authorised issue of Notes (the

Notes

) of Equinor ASA (the

Issuer

) described, and having the provisions specified, in Part A of the

attached Final Terms (the

Final Terms

). References in this Global Note to the Conditions shall be

to the Terms and Conditions of the Notes other than VPS Notes as set out in Schedule 1 to the

Agency Agreement (as defined below) as completed by the information set out in the Final Terms,

but in the event of any conflict between the provisions of (a) that Schedule or (b) this Global Note

and the information set out in the Final Terms, the Final Terms will prevail.

Words and expressions defined or set out in the Conditions and/or the Final Terms shall have the

same meaning when used in this Global Note.

This Global Note is issued subject to, and with the benefit of, the Conditions and an Agency

Agreement (the

Agency Agreement

, which expression shall be construed as a reference to that

agreement as the same may be amended, supplemented, novated or restated from time to time)

dated 11 May 2023 and made between the Issuer, Equinor Energy AS (the

Guarantor

), The Bank

of New York Mellon, London Branch (the

Agent

) and the other agents named in it.

For value received the Issuer, subject to and in accordance with the Conditions, promises to pay to

the bearer of this Global Note on the Maturity Date and/or on such earlier date(s) as all or any of

the Notes represented by this Global Note may become due and repayable in accordance with the

Conditions, the amount payable under the Conditions in respect of the Notes represented by this

Global Note on each such date and to pay interest (if any) on the nominal amount of the Notes

from time to time represented by this Global Note calculated and payable as provided in the

Conditions together with any other sums payable under the Conditions, upon (if the Final Terms

indicates that this Global Note is not intended to be a New Global Note) presentation and, at

maturity, surrender of this Global Note to or to the order of the Agent or any of the other paying

agents located outside the United States (except as provided in the Conditions) from time to time

appointed by the Issuer and the Guarantor in respect of the Notes.

If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal

amount of Notes represented by this Global Note shall be the aggregate amount from time to time

entered in the records of both Euroclear Bank SA/NV and Clearstream Banking S.A. (together, the

relevant Clearing Systems

). The records of the relevant Clearing Systems (which expression in

this Global Note means the records that each relevant Clearing System holds for its customers

which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of

the nominal amount of Notes represented by this Global Note and, for these purposes, a statement

issued by a relevant Clearing System stating the nominal amount of Notes represented by this

Global Note at any time (which statement shall be made

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103

available to the bearer upon request) shall be conclusive evidence of the records of the relevant

Clearing System at that time.

If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the

nominal amount of the Notes represented by this Global Note shall be the aggregate nominal

amount stated in the Final Terms or, if lower, the nominal amount most recently entered by or on

behalf of the Issuer in the relevant column in Part 2 or 3 of Schedule One or in Schedule Two.

On any redemption or payment of interest being made in respect of, or purchase and cancellation

of, any of the Notes represented by this Global Note the Issuer shall procure that:

(i)

 if the Final Terms indicates that this Global Note is intended to be a New Global Note,

details of such redemption, payment or purchase and cancellation (as the case may be)

shall be entered

pro rata

in the records of the relevant Clearing Systems and, upon any

such entry being made, the nominal amount of the Notes recorded in the records of the

relevant Clearing Systems and represented by this Global Note shall be reduced by the

aggregate nominal amount of the Notes so redeemed or purchased and cancelled; or

(ii)

 if the Final Terms indicates that this Global Note is not intended to be a New Global Note,

details of such redemption, payment or purchase and cancellation (as the case may be)

shall be entered by or on behalf of the Issuer in Schedule One and the relevant space in

Schedule One recording any such redemption, payment or purchase and cancellation (as

the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption

or purchase and cancellation, the nominal amount of the Notes represented by this Global

Note shall be reduced by the nominal amount of the Notes so redeemed or purchased and

cancelled.

Payments due in respect of Notes for the time being represented by this Global Note shall be

made to the bearer of this Global Note and each payment so made will discharge the Issuer's

obligations in respect thereof. Any failure to make the entries referred to above shall not affect

such discharge.

Where the Notes have initially been represented by one or more Temporary Global Notes, on any

exchange of any such Temporary Global Note for this Global Note or any part of it, the Issuer shall

procure that:

(i)

 if the Final Terms indicates that this Global Note is intended to be a New Global Note,

details of such exchange shall be entered in the records of the relevant Clearing Systems;

or

(ii)

 if the Final Terms indicates that this Global Note is not intended to be a New Global Note,

details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two

and the relevant space in Schedule Two recording any such exchange shall be signed by

or on behalf of the Issuer, whereupon the nominal amount of the Notes represented by this

Global Note shall be increased by the nominal amount any such Temporary Global Note so

exchanged.

In certain circumstances further notes may be issued which are intended on issue to be

consolidated and form a single Series with the Notes. In such circumstances the Issuer shall

procure that:

(i)

 if the Final Terms indicates that this Global Note is intended to be a New Global Note,

details of such further notes shall be entered in the records of the relevant Clearing

Systems such that the nominal amount of Notes represented by this Global Note shall be

increased by the amount of such further notes so issued; or

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(ii)

 if the Final Terms indicates that this Global Note is not intended to be a New Global Note,

details of such further notes shall be entered by or on behalf of the Issuer in Schedule Two

and the relevant space in Schedule Two recording such further notes shall be signed by

or on behalf of the Issuer,

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105

whereupon the nominal amount of the Notes represented by this Global Note shall be

increased by the nominal amount of any such further notes so issued.

This Global Note may be exchanged in whole but not in part (free of charge) for security printed

Definitive Notes and (if applicable) Coupons and/or Talons in the form set out in Part 3, Part 4 and

Part 5 respectively of Schedule 2 to the Agency Agreement (on the basis that all the appropriate

details have been included on the face of such Definitive Notes and (if applicable) Coupons and

Talons and the Final Terms (or the relevant provisions of the Final Terms) have been endorsed on

or attached to such Definitive Notes) either, as specified in the Final Terms:

(a)

 upon not less than 60 days' written notice being given to the Agent by Euroclear and/or

Clearstream,

Luxembourg acting on the instructions of any holder of an interest in this Global Note; or

(b)

 only upon the occurrence of an Exchange Event.

An

Exchange Event

means:

(i)

 an Event of Default (as defined in Condition 8) has occurred and is continuing; or

(ii)

 the Issuer has been notified that both the relevant Clearing Systems have been closed for

business for a continuous period of 14 days (other than by reason of holiday, statutory or

otherwise) or have announced an intention permanently to cease business or have in fact

done so and no successor clearing system is available.

If this Global Note is only exchangeable following the occurrence of an Exchange Event:

(A)

 the Issuer will promptly give notice to Noteholders in accordance with Condition 12 upon

the occurrence of an Exchange Event; and

(B)

 in the event of the occurrence of any Exchange Event, one or more of the relevant Clearing

Systems acting on the instructions of any holder of an interest in this Global Note may give

notice to the Agent requesting exchange. Any such exchange shall occur no later than 45

days after the date of receipt of the first relevant notice by the Agent.

Any such exchange will be made on any day (other than a Saturday or Sunday) on which banks

are open for general business in London by the bearer of this Global Note. On an exchange of this

Global Note, this Global Note shall be surrendered to or to the order of the Agent. The aggregate

nominal amount of Definitive Notes issued upon an exchange of this Global Note will be equal to

the aggregate nominal amount of this Global Note at the time of such exchange.

Until the exchange of this Global Note, the bearer of this Global Note shall in all respects (except

as otherwise provided in this Global Note) be entitled to the same benefits as if they were the

bearer of Definitive Notes and the relative Coupons and/or Talons (if any) represented by this

Global Note. Accordingly, except as ordered by a court of competent jurisdiction or as required by

law or applicable regulation, the Issuer and any Paying Agent may deem and treat the holder of

this Global Note as the absolute owner of this Global Note for all purposes.

In the event that (a) this Global Note (or any part of it) has become due and repayable in

accordance with the Conditions or that the Maturity Date has occurred and, in either case, payment

in full of the amount due has not been made to the bearer in accordance with the provisions set out

above, or (b) following an Exchange Event, this Global Note is not duly exchanged for definitive

Notes by the day provided above, then from

8.00 p.m. (London time) on such day each Noteholder will become entitled to proceed directly

against the Issuer on, and subject to, the terms of the Deed of Covenant executed by the Issuer on

13 May 2020 (as amended, supplemented, novated and/or restated as at the Issue Date) in

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106

respect of the Notes and the bearer

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107

will have no further rights under this Global Note (but without prejudice to the rights which the

bearer or any other person may have under the Deed of Covenant).

No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to

enforce any term of this Global Note, but this does not affect any right or remedy of any person

which exists or is available apart from that Act.

If any provision in or obligation under this Global Note is or becomes invalid, illegal or

unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the

validity, legality or enforceability under the law of that jurisdiction of any other provision in or

obligation under this Global Note, and (ii) the validity, legality or enforceability under the law of any

other jurisdiction of that or any other provision in or obligation under this Global Note.

This Global Note and any non-contractual obligations arising out of or in connection with it are

governed by, and shall be construed in accordance with, English law.

This Global Note shall not be valid unless authenticated by the Agent and, if the Final Terms

indicates that this Global Note is intended to be a NGN (i) which is intended to be held in a manner

which would allow Eurosystem eligibility or (ii) in respect of which effectuation is applicable,

effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.

IN WITNESS

whereof the Issuer has caused this Global Note to be duly executed on its behalf.

EQUINOR ASA

By:

Authenticated without

recourse, warranty or liability

by

THE BANK OF NEW YORK

MELLON, LONDON BRANCH

By:

Effectuated without recourse,

warranty or liability by

...................................................

as common safekeeper

By:

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SCHEDULE ONE TO THE PERMANENT GLOBAL NOTE

3

PART 1

INTEREST PAYMENTS

Date

made

Total amount of interest

payable Amount of interest

paid

Confirmation of payment

on behalf of the Issuer

3

 Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New

Global Note.

*

See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine

this amount.

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PART 2

REDEMPTIONS

Date

made

Total amount

of principal

payable

Amount of

principal paid

Remaining nominal

amount of this

Global Note

following such

redemption

*

Confirmation of

redemption on

behalf of the

Issuer

*

See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine

this amount.

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PART 3

PURCHASES AND CANCELLATIONS

Date

made

Part of nominal amount

of this Global Note

purchased and

cancelled

Remaining nominal

amount of this Global Note

following such purchase

and cancellation

*

Confirmation of

purchase and

cancellation on behalf

of the Issuer

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SCHEDULE TWO TO THE PERMANENT GLOBAL NOTE

4

SCHEDULE OF EXCHANGES AND ISSUES OF FURTHER

NOTES

The following exchanges or further notes affecting the nominal amount of this Global Note have been

made:

Date

made

Nominal amount of

Temporary Global

Note exchanged for

this Global Note or

nominal amount of

further notes issued

Remaining nominal

amount of this Global

Note following such

exchange or further

notes issued

*

Notation made on

behalf of the Issuer

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112

4

 Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New

Global Note.

*

 See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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PART 3

FORM OF DEFINITIVE NOTE

(

Face of Note

)

[ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO

LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE

LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE

CODE.]

(1)

EQUINOR ASA

unconditionally and (subject to Condition 2(c)) irrevocably

guaranteed by EQUINOR ENERGY AS

[

Specified Currency and Nominal Amount of Tranche

]

EURO MEDIUM TERM NOTES DUE [

Year of Maturity

]

This Note is one of a duly authorised issue of Euro Medium Term Notes denominated in the

Specified Currency maturing on the Maturity Date (the

Notes

) of Equinor ASA (the

Issuer

).

References herein to the Conditions shall be to the Terms and Conditions of the Notes other than

VPS Notes [endorsed hereon/set out in Schedule 1 to the Agency Agreement (as defined below)

which shall be incorporated by reference herein and have effect as if set out herein] as completed

by the Final Terms (the

Final Terms

) (or the relevant provisions of the Final Terms) endorsed

hereon, but in the event of any conflict between the provisions of the Conditions and the

information in the Final Terms, the Final Terms will prevail.

This Note is issued subject to, and with the benefit of, the Conditions and an amended and

restated Agency Agreement (the

Agency Agreement

, which expression shall be construed as a

reference to that agreement as the same may be amended, supplemented or restated from time to

time) dated 11 May 2023 and made between [(

inter alios

)] the Issuer, Equinor Energy AS as

guarantor, The Bank of New York Mellon, London Branch (the

Agent

) and the other parties named

therein.

For value received, the Issuer, subject to and in accordance with the Conditions, promises to pay

to the bearer hereof on the Maturity Date and/or on such earlier date(s) as this Note may become

due and repayable in accordance with the Conditions, the amount payable under the Conditions in

respect of this Note on each such date and to pay interest (if any) on this Note calculated and

payable as provided in the Conditions together with any other sums payable under the Conditions.

If any provision in or obligation under this Note is or becomes invalid, illegal or unenforceable in

any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or

enforceability under the law of that jurisdiction of any other provision in or obligation under this

Note, and

(ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other

provision in or obligation under this Note.

This Note shall not be validly issued unless authenticated by the Agent.

IN WITNESS

whereof the Issuer has caused this Note to be duly executed on its behalf.

EQUINOR ASA

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114

(1)

 This legend can be deleted if TEFRA C or TEFRA not applicable is specified in the applicable Final Terms.

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115

By: ............................................

Authorised Signatory

Authenticated without recourse,

warranty or liability by

THE BANK OF NEW YORK MELLON, LONDON BRANCH

By:

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116

(

Reverse of Note

)

Terms and Conditions of the Notes other than VPS Notes

[

Terms and Conditions of the Notes other than VPS Notes to be as

set out in Schedule 1 to the Agency Agreement

]

Final Terms

[

Here may be set out text of Final

Terms relating to the Notes

]

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PART 4

FORM OF COUPON

(

Face of Coupon

)

EQUINOR ASA

[

Specified Currency and Nominal Amount

Tranche

] NOTES DUE [

Year of Maturity

]

Series No. [ ]

Part A

[

For Fixed Rate Notes

:

This Coupon is payable to bearer, separately Coupon

for negotiable and subject to the Terms and [

]

Conditions of the Notes other than

VPS Notes of the said Notes. due

on [

 ]

20[ ]]

Part B

[

For Floating Rate Notes

:

Coupon for the amount due in accordance with Coupon

due the Terms and Conditions of the Notes other than

VPS Notes on the said Notes on in [ ]

the Interest Payment Date falling in 20[ ]]

[ ] 20[ ].

This Coupon is payable to bearer,

separately negotiable and subject to

such Terms and Conditions of the Notes

other than

VPS Notes, under which it may become

void before its due date.]

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO

LIMITATIONS UNDER THE UNITED STATES TAX LAWS INCLUDING THE LIMITATIONS

PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

00 000000 [ISIN] 00 000000

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118

PART 5

FORM OF TALON

(

Face of Talon

)

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO

LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE

LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE

CODE.

EQUINOR ASA

[

Specified Currency and Nominal Amount of

Tranche

] EURO MEDIUM TERM NOTES DUE [

Year

of Maturity

]

Series No. [ ]

On and after [ ] further Coupons [and a further Talon] appertaining to the Note to which this Talon

appertains will be issued at the specified office of the Agent or any of the Paying Agents set out on

the reverse hereof (and/or any other or further Paying Agents and/or specified offices as may from

time to time be duly appointed and notified to the Noteholders) upon production and surrender of

this Talon.

This Talon may, in certain circumstances, become void under the Terms and Conditions of the

Notes other than VPS Notes endorsed on the Notes to which this Talon appertains.

EQUINOR ASA

By: ............................................

Authorised Signatory

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119

(

Reverse of Coupon and Talon

)

AGENT

The Bank of New York Mellon, London

Branch 160 Queen Victoria Street

London EC4V 4LA

United Kingdom

PAYING AGENT

The Bank of New York Mellon SA/NV, Luxembourg Branch

Vertigo Building - Polaris

2-4 rue, Eugène

Ruppert L-2453

Luxembourg

and/or such other or further Agent and other or further Paying Agents and/or specified offices as

may from time to time be duly appointed by the Issuer and notice of which has been given to the

Noteholders.

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SCHEDULE 3

FORM OF DEED OF COVENANT

THIS DEED OF COVENANT

is made on 13 May 2020 by

EQUINOR ASA

(the

Issuer

) in favour of

the account holders specified below of Clearstream Banking S.A., Euroclear Bank SA/NV, and/or

any other additional clearing system or systems as are specified in Part B of the Final Terms

relating to any Note (as defined below) (each a

Clearing System

).

WHEREAS

:

(A)

 The Issuer has entered into an amended and restated Programme Agreement (the

Programme Agreement

, which expression includes the same as it may be further

amended and/or restated and/or supplemented from time to time) dated 13 May 2020 with

the Dealers named therein under which the Issuer proposes from time to time to issue

Euro Medium Term Notes (the

Notes

).

(B)

 The Notes (other than the VPS Notes (as defined in the Programme Agreement)) will

initially be represented by, and comprised in, Temporary Global Notes (the

Temporary

Global Notes

) and thereafter may be represented by, and comprised in, Permanent Global

Notes (the

Permanent Global Notes

, the Temporary Global Notes and Permanent Global

Notes being herein together called the

Global Notes

) representing a certain number of

underlying Notes (the

Underlying Notes

).

(C)

 Each Global Note may, after issue, be deposited with a depositary for one or more Clearing

Systems (each such Clearing System or all such Clearing Systems together, the

Relevant

Clearing System

). Upon such deposit of a Global Note the Underlying Notes represented

by such Global Note will be credited to a securities account or securities accounts with the

Relevant Clearing System. Any account holder with the Relevant Clearing System which

has Underlying Notes credited to its securities account from time to time (each a

Relevant

Account Holder

) will, subject to and in accordance with the terms and conditions and

operating procedures or management regulations of the Relevant Clearing System, be

entitled to transfer such Underlying Notes and (subject to and upon payment being made by

the Issuer to the bearer in accordance with the terms of the relevant Global Note) will be

entitled to receive payments from the Relevant Clearing System calculated by reference to

the Underlying Notes credited to its securities account.

(D)

 In certain circumstances specified in each Global Note, the bearer of the Global Note will

have no further rights under the Global Note (but without prejudice to the rights which any

person may have pursuant to this Deed of Covenant). The time at which this occurs is

hereinafter referred to as the

Relevant Time

. In such circumstances each Relevant

Account Holder will, subject to and in accordance with the terms of this Deed, acquire

against the Issuer all those rights which such Relevant Account Holder would have had if,

prior to the Relevant Time, duly executed and authenticated Definitive Note(s) (as defined

in the Agency Agreement (the

Agency Agreement

, which expression includes the same as

it may be further amended and/or restated and/or supplemented from time to time) dated

13 May 2020) and interest coupons (the

Coupons

) appertaining to the Definitive Note(s) (if

appropriate) had been issued in respect of its Underlying Note(s) and such Definitive

Notes(s) and Coupons (if appropriate) were held and beneficially owned by such Relevant

Account Holder.

NOW THIS DEED WITNESSES AS FOLLOWS

:

1.

 If at any time the bearer of the Global Note ceases to have rights under it in accordance

with the terms thereof, the Issuer hereby undertakes and covenants with each Relevant

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121

Account Holder (other than when any Relevant Clearing System is an account holder of

any other Relevant Clearing System) that each Relevant Account Holder shall

automatically acquire at the Relevant Time,

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122

without the need for any further action on behalf of any person, against the relevant Issuer

all those rights which such Relevant Account Holder would have had if at the Relevant

Time it held and beneficially owned duly executed and authenticated Definitive Note(s) and

Coupons (if appropriate) in respect of each Underlying Note represented by such Global

Note which such Relevant Account Holder has credited to its securities account with the

Relevant Clearing System at the Relevant Time. The Issuer's obligation pursuant to this

clause shall be a separate and independent obligation by reference to each Underlying

Note which a Relevant Account Holder has credited to its securities account with the

Relevant Clearing System and the Issuer agrees that a Relevant Account Holder may

assign its rights hereunder in whole or in part.

2.

 The records of the Relevant Clearing System shall be conclusive evidence of the identity of

the Relevant Account Holders and the number of Underlying Notes credited to the

securities account of each Relevant Account Holder. For the purposes hereof a statement

issued by the Relevant Clearing System stating:

(a)

 the name of the Relevant Account Holder to which such statement is issued; and

(b)

 the aggregate nominal amount of Underlying Notes credited to the securities

account of such Relevant Account Holder as at the opening of business on the first

day following the Relevant Time on which the Relevant Clearing System is open for

business,

shall be conclusive evidence of the records of the Relevant Clearing System at the Relevant

Time.

3.

 In the event of a dispute, the determination of the Relevant Time by the Relevant Clearing

System (in the absence of manifest error) shall be final and conclusive for all purposes in

connection with the Relevant Account Holders with securities accounts with the Relevant

Clearing System.

4.

 The Issuer undertakes in favour of each Relevant Account Holder that, in relation to any

payment to be made by it under this Deed, it will comply with the provisions of Condition 6

to the extent that they apply to any payments in respect of Underlying Notes as if those

provisions had been set out in full in this Deed.

5.

 The Issuer agrees to pay any stamp and other similar duties and taxes, including interest

and penalties, payable on or in connection with the execution of this Deed and any action

taken by any Relevant Account Holder to enforce the provisions of this Deed.

6.

 The Issuer hereby warrants, represents and covenants with each Relevant Account Holder

that it has all corporate power, and has taken all necessary corporate or other steps, to

enable it to execute, deliver and perform this Deed, and that this Deed constitutes a legal,

valid and binding obligation of the Issuer enforceable in accordance with its terms subject

to the laws of bankruptcy and other laws affecting the rights of creditors generally.

7.

 This Deed shall take effect as a Deed Poll for the benefit of the Relevant Account Holders

from time to time and for the time being. This Deed shall be deposited with and held by the

depositary or common safekeeper, as the case may be, for the Relevant Clearing System

(being at the date hereof The Bank of New York Mellon at One Canada Square, London

E14 5AL) until all the obligations of the Issuer hereunder have been discharged in full.

8.

 The Issuer hereby acknowledges the right of every Relevant Account Holder to the

production of, and the right of every Relevant Account Holder to obtain (upon payment of a

reasonable charge) a copy of, this Deed, and further acknowledges and covenants that the

obligations binding upon it contained herein are owed to, and shall be for the account of,

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123

each and every Relevant Account Holder, and that each Relevant Account Holder shall be

entitled severally to enforce the said obligations against the Issuer.

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124

9.

 If any provision in or obligation under this Deed is or becomes invalid, illegal or

unenforceable in any respect under the law of any jurisdiction, that will not affect or impair

(i) the validity, legality or enforceability under the law of that jurisdiction of any other

provision in or obligation under this Deed, and (ii) the validity, legality or enforceability

under the law of any other jurisdiction of that or any other provision in or obligation under

this Deed.

10.

 This Deed and any non-contractual obligations arising out of or in connection with it are

governed by, and shall be construed in accordance with, English law.

The courts of England are to have jurisdiction to settle any disputes which may arise out of

or in connection with this Agreement (including a dispute relating to any non-contractual

obligations arising out of or in connection with this Agreement) and accordingly any legal

action or proceedings arising out of or in connection with this Agreement (

Proceedings

)

may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such

courts and waives any objection to Proceedings in any such courts whether on the ground

of venue or on the ground that the Proceedings have been brought in an inconvenient

forum. This submission is made for the benefit of each of the Relevant Account Holders

and, to the extent allowed by applicable law, shall not limit the right or any of them to take

Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings

in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction

(whether concurrently or not).

The Issuer irrevocably appoints Equinor UK Limited (whose offices are at the date of this

Agreement at One Kingdom Street, Paddington Central, London W2 6BD) as its authorised

agent for service of process in England. If for any reason such agent shall cease to be

such agent for service of process, the Issuer shall forthwith, on request of the Agent,

appoint a new agent for service of process in England and deliver to the Agent a copy of

the new agent's acceptance of that appointment within 30 days. Nothing in this Agreement

shall affect the right to serve process in any other manner permitted by law.

IN WITNESS

whereof the Issuer has caused this Deed to be duly executed the day and year

first above mentioned.

EXECUTED

as a

DEED

)

by EQUINOR ASA and signed and )

delivered as a deed on its )

behalf by )

an authorised representative of the company )

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SCHEDULE 4

PROVISIONS FOR MEETINGS OF NOTEHOLDERS

1.

 As used in this Schedule the following expressions shall have the following meanings

unless the context otherwise requires:

(a)

voting certificate

shall mean an English language certificate issued by a Paying

Agent and dated in which it is stated:

(i)

 that on the date thereof Notes (not being Notes in respect of which a block

voting instruction has been issued and is outstanding in respect of the

meeting specified in such voting certificate and any adjourned such meeting)

bearing specified serial numbers were deposited with such Paying Agent or

(to the satisfaction of such Paying Agent) were held to its order or under its

control and that no such Notes will cease to be so deposited or held until the

first to occur of:

(A)

 the conclusion of the meeting specified in such certificate or, if

applicable, any adjourned such meeting; and

(B)

 the surrender of the certificate to the Paying Agent who issued the

same; and

(ii)

 that the bearer thereof is entitled to attend and vote at such meeting and any

adjourned such meeting in respect of the Notes represented by such

certificate;

(b)

block voting instruction

shall mean an English language document issued by

a Paying Agent and dated in which:

(i)

 it is certified that Notes (not being Notes in respect of which a voting

certificate has been issued and is outstanding in respect of the meeting

specified in such block voting instruction and any adjourned such meeting)

have been deposited with such Paying Agent or (to the satisfaction of such

Paying Agent) were held to its order or under its control and that no such

Notes will cease to be so deposited or held until the first to occur of:

(A)

 the conclusion of the meeting specified in such document or, if

applicable, any adjourned such meeting; and

(B)

 the surrender to the Paying Agent not less than 48 hours before the

time for which such meeting or any adjourned such meeting is

convened of the receipt issued by such Paying Agent in respect of

each such deposited Note which is to be released or (as the case

may require) the Note or Notes ceasing with the agreement of the

Paying Agent to be held to its order or under its control and the giving

of notice by the Paying Agent to the Issuer in accordance with

paragraph 17 hereof of the necessary amendment to the block voting

instruction;

(ii)

 it is certified that each holder of such Notes has instructed such Paying

Agent that the vote(s) attributable to the Note or Notes so deposited or held

should be cast in a particular way in relation to the resolution or resolutions

to be put to such meeting or any adjourned such meeting and that all such

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126

instructions are during the period commencing

 48 hours prior to the time

for which such meeting or any adjourned

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127

such meeting is convened and ending at the conclusion or adjournment

thereof neither revocable nor capable of amendment;

(iii)

 the total number and the serial numbers of the Notes so deposited or held

are listed distinguishing with regard to each such resolution between those

in respect of which instructions have been given as aforesaid that the votes

attributable thereto should be cast in favour of the resolution and those in

respect of which instructions have been so given that the votes attributable

thereto should be cast against the resolution; and

(iv)

 one or more persons named in such document (each hereinafter called a

proxy

) is or are authorised and instructed by such Paying Agent to cast the

votes attributable to the Notes so listed in accordance with the instructions

referred to in paragraph (iii) above as set out in such document.

The holder of any voting certificate or the proxies named in any block voting

instruction shall for all purposes in connection with the relevant meeting or

adjourned meeting of Noteholders be deemed to be the holder of the Notes to which

such voting certificate or block voting instruction relates and the Paying Agent with

which such Notes have been deposited or the person holding the same to the order

or under the control of such Paying Agent shall be deemed for such purposes not to

be the holder of those Notes.

(c)

 References herein to the

Notes

are to the Notes in respect of which the relevant

meeting is convened.

2.

 The Issuer may at any time and, upon a requisition in writing of Noteholders holding not

less than 10 per cent. in nominal amount of the Notes for the time being outstanding, shall

convene a meeting of the Noteholders and if the Issuer makes default for a period of seven

days in convening such a meeting the same may be convened by the requisitionists.

Whenever the Issuer is about to convene any such meeting it shall forthwith give notice in

writing to the Agent and the Dealers of the day, time and place thereof (which need not be

a physical place and instead may be by way of conference call, including by use of a

videoconference platform) and of the nature of the business to be transacted thereat.

Every such meeting shall be held at such time and place as the Agent may approve.

3.

 At least 21 days' notice (exclusive of the day on which the notice is given and the day on

which the meeting is held) specifying the place, day and hour of meeting shall be given to

the Noteholders prior to any meeting of the Noteholders in the manner provided by

Condition 12. Such notice shall state generally the nature of the business to be transacted

at the meeting thereby convened but (except for an Extraordinary Resolution) it shall not

be necessary to specify in such notice the terms of any resolution to be proposed. Such

notice shall include a statement to the effect that Notes may be deposited with Paying

Agents for the purpose of obtaining voting certificates or appointing proxies not less than 24

hours before the time fixed for the meeting or that, in the case of corporations, they may

appoint representatives by resolution of their directors or other governing body. A copy of

the notice shall be sent by post to the Issuer (unless the meeting is convened by the

Issuer).

4.

 Some person (who may but need not be a Noteholder) nominated in writing by the Issuer

shall be entitled to take the chair at every such meeting but if no such nomination is made

or if at any meeting the person nominated shall not be present within fifteen minutes after

the time appointed for holding the meeting the Noteholders present shall choose one of

their number to be Chair.

5.

 At any such meeting one or more persons present holding Notes or voting certificates or

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128

being proxies and holding or representing in the aggregate not less than 20 per cent. in

nominal amount of the Notes for the time being outstanding shall (except for the purpose

of passing an Extraordinary

0010155-0003437 UKO2: 2005996996.8

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Resolution) form a quorum for the transaction of business and no business (other than the

choosing of a Chair) shall be transacted at any meeting unless the requisite quorum be

present at the commencement of business. The quorum at any such meeting for passing

an Extraordinary Resolution shall (subject as provided below) be one or more persons

present holding Notes or voting certificates or being proxies and holding or representing in

the aggregate a clear majority in nominal amount of the Notes for the time being

outstanding PROVIDED THAT at any meeting the business of which includes any of the

following matters (each of which shall only be capable of being effected after having been

approved by Extraordinary Resolution) namely:

(a)

 modification of the Maturity Date of the Notes or reduction or cancellation of the

nominal amount payable upon maturity; or

(b)

 reduction or cancellation of the amount payable or modification of the payment date

in respect of any interest in respect of the Notes or variation of the method of

calculating the rate of interest in respect of the Notes; or

(c)

 reduction of any Minimum Interest Rate and/or Maximum Interest Rate specified in

the applicable Final Terms of any Note; or

(d)

 modification of the currency in which payments under the Notes and/or Coupons

appertaining thereto are to be made; or

(e)

 modification of the majority required to pass an Extraordinary Resolution; or

(f)

 the sanctioning of any such scheme or proposal as is described in paragraph 18(f)

below; or

(g)

 alteration of this proviso or the proviso to paragraph 6 below;

the quorum shall be one or more persons present holding Notes or voting certificates or

being proxies and holding or representing in the aggregate not less than 75 per cent. in

nominal amount of the Notes for the time being outstanding. An Extraordinary Resolution

passed at any meeting of the holders of Notes will be binding on all holders of Notes,

whether or not they are present at the meeting, and on all holders of Coupons appertaining

to such Notes.

6.

 If within fifteen minutes after the time appointed for any such meeting a quorum is not

present the meeting shall if convened upon the requisition of Noteholders be dissolved. In

any other case it shall stand adjourned to the same day in the next week (or if such day is a

public holiday the next succeeding business day) at the same time and place (except in the

case of a meeting at which an Extraordinary Resolution is to be proposed in which case it

shall stand adjourned for such period being not less than 14 days nor more than 42 days,

and at such place as may be appointed by the Chair and approved by the Agent) and at

such adjourned meeting one or more persons present holding Notes or voting certificates or

being proxies (whatever the nominal amount of the Notes so held or represented by them)

shall (subject as provided below) form a quorum and shall (subject as provided below) have

power to pass any Extraordinary Resolution or other resolution and to decide upon all

matters which could properly have been dealt with at the meeting from which the

adjournment took place had the requisite quorum been present PROVIDED THAT at any

adjourned meeting the business of which includes any of the matters specified in the

proviso to paragraph 5 above the quorum shall be one or more persons present holding

Notes or voting certificates or being proxies and holding or representing in the aggregate

not less than a clear majority in nominal amount of the Notes for the time being

outstanding.

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130

7.

 Notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted

shall be given in the same manner as notice of an original meeting but as if 10 were

substituted for 21 in paragraph 3 above and such notice shall (except in cases where the

proviso to paragraph 6 above

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131

shall apply when it shall state the relevant quorum) state that one or more persons present

holding Notes or voting certificates or being proxies at the adjourned meeting whatever the

nominal amount of the Notes held or represented by them will form a quorum. Subject as

aforesaid it shall not be necessary to give any notice of an adjourned meeting.

8.

 Except whilst the Notes are in global form and only one proxy is attending the meeting,

every question submitted to a meeting shall be decided in the first instance by a show of

hands. In case of equality of votes the Chair shall both on a show of hands and on a poll

have a casting vote in addition to the vote or votes (if any) to which they may be entitled as

a Noteholder or as a holder of a voting certificate or as a proxy.

9.

 At any meeting, unless the Notes are in global form and only one proxy is attending the

meeting or a poll is (before or on the declaration of the result of the show of hands)

demanded by the Chair or the Issuer or by one or more persons present holding Notes or

voting certificates or being proxies (whatever the nominal amount of the Notes so held by

them), a declaration by the Chair that a resolution has been carried or carried by a

particular majority or lost or not carried by a particular majority shall be conclusive evidence

of the fact without proof of the number or proportion of the votes recorded in favour of or

against such resolution.

10.

 Subject to paragraph 12 below, if at any such meeting a poll is so demanded it shall be

taken in such manner and subject as hereinafter provided either at once or after an

adjournment as the Chair directs and the result of such poll shall be deemed to be the

resolution of the meeting at which the poll was demanded as at the date of the taking of the

poll. The demand for a poll shall not prevent the continuance of the meeting for the

transaction of any business other than the motion on which the poll has been demanded.

11.

 The Chair may with the consent of (and shall if directed by) any such meeting adjourn the

same from time to time and from place to place but no business shall be transacted at any

adjourned meeting except business which might lawfully (but for lack of required quorum)

have been transacted at the meeting from which the adjournment took place.

12.

 Any poll demanded at any such meeting on the election of a Chair or on any question of

adjournment shall be taken at the meeting without adjournment.

13.

 Any director or officer of the Issuer and its lawyers may attend and speak at any meeting.

Save as aforesaid, but without prejudice to the proviso to the definition of

outstanding

in

subclause 1.2 of this Agreement, no person shall be entitled to attend and speak nor shall

any person be entitled to vote at any meeting of the Noteholders or join with others in

requisitioning the convening of such a meeting unless they either produce the Note or

Notes of which they are the holder or a voting certificate or is a proxy. Neither the Issuer

nor any of its Subsidiaries shall be entitled to vote at any meeting in respect of Notes held

by it for the benefit of any such company and no other person shall be entitled to vote at

any meeting in respect of Notes held by it for the benefit of any such company. Nothing

herein contained shall prevent any of the proxies named in any block voting instruction

from being a director, officer or representative of or otherwise connected with the Issuer.

14.

 Subject as provided in paragraph 13 hereof at any meeting:

(a)

 on a show of hands every person who is present in person and produces a Note

or voting certificate or is a proxy shall have one vote; and

(b)

 on a poll every person who is so present shall have one vote in respect of:

(i)

 in the case of a meeting of the holders of Notes all of which are

denominated in a single currency, each minimum integral amount of such

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currency; and

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133

(ii)

 in the case of a meeting of the holders of Notes denominated in more than

one currency, each €1.00 or, in the case of a Note denominated in a

currency other than euro, the equivalent of €1.00 in such currency at the

Agent's spot buying rate for the relevant currency against euro at or about

11.00 a.m. (London time) on the date of publication of the notice of the

relevant meeting (or of the original meeting of which such meeting is an

adjournment),

or such other amount as the Agent shall in its absolute discretion stipulate in

nominal amount of Notes so produced or represented by the voting certificate so

produced or in respect of which they are a proxy.

Without prejudice to the obligations of the proxies named in any block voting instruction any

person entitled to more than one vote need not use all their votes or cast all the votes to

which they are entitled in the same way.

15.

 The proxies named in any block voting instruction need not be Noteholders.

16.

 Each block voting instruction together (if so requested by the Issuer) with proof satisfactory

to the Issuer of its due execution on behalf of the relevant Paying Agent shall be deposited

at such place as the Agent shall approve not less than 24 hours before the time appointed

for holding the meeting or adjourned meeting at which the proxies named in the block

voting instruction propose to vote and in default the block voting instruction shall not be

treated as valid unless the Chair of the meeting decides otherwise before such meeting or

adjourned meeting proceeds to business. A certified copy of each block voting instruction

shall be deposited with the Agent before the commencement of the meeting or adjourned

meeting but the Agent shall not thereby be obliged to investigate or be concerned with the

validity of or the authority of the proxies named in any such block voting instruction.

17.

 Any vote given in accordance with the terms of a block voting instruction shall be valid

notwithstanding the previous revocation or amendment of the block voting instruction or of

any of the Noteholders' instructions pursuant to which it was executed PROVIDED THAT

no intimation in writing of such revocation or amendment shall have been received from the

relevant Paying Agent by the Issuer at its registered office (or such other place as may

have been approved by the Agent for the purpose) by the time being 24 hours before the

time appointed for holding the meeting or adjourned meeting at which the block voting

instruction is to be used.

18.

 A meeting of the Noteholders shall in addition to the powers hereinbefore given have the

following powers exercisable by Extraordinary Resolution (subject to the provisions relating

to quorum contained in paragraphs 5 and 6 above) only, namely:

(a)

 power to sanction any compromise or arrangement proposed to be made between

the Issuer and the Noteholders and Couponholders or any of them;

(b)

 power to sanction any abrogation, modification, compromise or arrangement in

respect of the rights of the Noteholders and Couponholders against the Issuer or

against any of its property whether such rights shall arise under this Agreement, the

Notes or the Coupons or otherwise;

(c)

 power to assent to any modification of the provisions contained in this Agreement or

the Conditions, the Notes, the Coupons or the Deed of Covenant which shall be

proposed by the Issuer;

(d)

 power to give any authority or sanction which under the provisions of this

Agreement or the Notes is required to be given by Extraordinary Resolution;

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134

(e)

 power to appoint any persons (whether Noteholders or not) as a committee or

committees to represent the interests of the Noteholders and to confer upon such

committee or committees any powers or discretions which the Noteholders could

themselves exercise by Extraordinary Resolution;

(f)

 power to sanction any scheme or proposal for the exchange or sale of the Notes for,

or the conversion of the Notes into or the cancellation of the Notes in consideration

of, shares, stock, notes, bonds, debentures, debenture stock and/or other

obligations and/or securities of the Issuer or any other company formed or to be

formed, or for or into or in consideration of cash, or partly for or into or in

consideration of such shares, stock, notes, bonds, debentures, debenture stock

and/or other obligations and/or securities as aforesaid and partly for or into or in

consideration of cash; and

(g)

 power to approve the substitution of any entity in place of (i) the Issuer (or any

previous substitute) as the principal debtor in respect of the Notes and the

Coupons.

19.

 Any resolution (i) passed at a meeting of the Noteholders duly convened and held; (ii)

passed as a resolution in writing or (iii) passed by way of electronic consents given by

Noteholders through the relevant clearing system(s), in accordance with the provision

hereof shall be binding upon all the Noteholders whether present or not present at such

meeting referred to in (i) above and whether or not voting and upon all Couponholders and

each of them shall be bound to give effect thereto accordingly and the passing of any such

resolution shall be conclusive evidence that the circumstances justify the passing thereof.

Notice of the result of the voting on any resolution duly considered by the Noteholders shall

be published in accordance with Condition 12 by the Issuer within 14 days of such result

being known PROVIDED THAT the non-publication of such notice shall not invalidate such

resolution.

20.

 The expression

Extraordinary Resolution

when used in this Agreement or the Conditions

means

(a) a resolution passed at a meeting of the Noteholders duly convened and held in

accordance with the provisions herein contained by a majority consisting of not less than 75

per cent. of the persons voting thereat upon a show of hands or if a poll be duly demanded

then by a majority consisting of not less than 75 per cent. of the votes given on such poll or

(b) a resolution in writing signed by or on behalf of the holders of not less than 75 per cent.

in nominal amount of the Notes for the time being outstanding, which resolution in writing

may be contained in one document or in several documents in similar form each signed by

or on behalf of one or more of the Noteholders or (c) consent given by way of electronic

consents through the relevant clearing system(s) (in a form satisfactory to the Agent) by or

on behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the

time being outstanding.

21.

 Minutes of all resolutions and proceedings at every such meeting as aforesaid shall be

made and duly entered in books to be from time to time provided for that purpose by the

Issuer and any such Minutes as aforesaid if purporting to be signed by the Chair of the

meeting at which such resolutions were passed or proceedings had shall be conclusive

evidence of the matters therein contained and until the contrary is proved every such

meeting in respect of the proceedings of which Minutes have been made shall be deemed

to have been duly held and convened and all resolutions passed or proceedings had

thereat to have been duly passed or had.

22.

 Subject to all other provisions contained herein the Agent may without the consent of the

Issuer, the Noteholders or the Couponholders prescribe such further regulations regarding

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135

the requisitioning and/or

 the holding of meetings of Noteholders and attendance and voting

thereat as the Agent may in its sole discretion think fit (including, without limitation, the

holding of meetings by conference call, including by use of a videoconference platform).

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SCHEDULE 5

FORM OF PUT NOTICE

for Notes in definitive form

EQUINOR ASA

[

title of relevant Series of Notes

]

By depositing this duly completed Notice with any Paying Agent for the above Series of Notes (the

Notes

) the undersigned holder of such Notes surrendered with this Notice and referred to below

irrevocably exercises its option to have such Notes redeemed in accordance with Condition 5(

f

) on

[redemption date].

This Notice relates to Notes in the aggregate nominal amount of

.............. bearing the following serial numbers:

................................................................

................................................................

................................................................

If the Notes referred to above are to be returned (1) to the undersigned under subclause 10.4 of

the Agency Agreement, they should be returned by post to:

.........................

.........................

.........................

Payment Instructions

Please make payment in respect of the above-mentioned Notes by [cheque posted to the above

address/transfer to the following bank account] (2):

Bank: ................................

Branch Address: ................................

Branch Code: ................................

Account Number: ................................

Signature of holder: ................................

Duly authorised on behalf of [

]

[To be completed by recipient Paying

Agent]

Details of missing unmatured Coupons .................... (3)

Received by: .........................

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137

[Signature and stamp of Paying Agent]

At its office at: .................................

On: ......................................

Notes

(1)

 The Agency Agreement provides that Notes so returned will be sent by post, uninsured and

at the risk of the Noteholder, unless the Noteholder otherwise requests and pays the costs

of such insurance to the relevant Paying Agent at the time of depositing the Note referred

to above.

(2)

 Delete as applicable.

(3)

 Only relevant for Fixed Rate Notes in definitive form.

N.B. The Paying Agent with whom the above-mentioned Notes are deposited will not in any

circumstances be liable to the depositing Noteholder or any other person for any loss or

damage arising from any act, default or omission of such Paying Agent in relation to the

said Notes or any of them unless such loss or damage was caused by the fraud or gross

negligence of such Paying Agent or its directors, officers or employees.

This Put Notice is not valid unless all of the paragraphs requiring completion are duly

completed. Once validly given this Put Notice is irrevocable except in the

circumstances set out in subclause 10.4 of the Agency Agreement.

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SCHEDULE 6

FORM OF DEED POLL

This Deed Poll is made on [ ] by [

name of existing issuer

] as existing issuer (in its capacity as

existing issuer of the Notes (as defined below), the

Existing Issuer

), a company incorporated

in [ ], [and] [

name of Substitute

] as the substitute of the Existing Issuer (the

Substitute

), a

company incorporated in [

 

] [and Equinor ASA [and Equinor Energy AS] as guarantor[s] (in

[its][their] capacity as guarantor[s], the

Guarantor[s]

), [a company][companies] incorporated in

The Kingdom of Norway].

(A)

 The Existing Issuer has entered into a Programme Agreement dated 11 May 2023 (the

Programme Agreement

which expression includes the same as it may be amended,

supplemented or restated from time to time) with the Dealers named therein under which

the Existing Issuer has issued and has outstanding Euro Medium Term Notes (

Notes

).

(B)

 The Notes have been issued subject to and have the benefit of an Agency Agreement

dated 11 May 2023 (the

Agency Agreement

which expression includes the same as it may

be amended, supplemented or restated from time to time) and entered into between,

inter

alios

, the Existing Issuer, The Bank of New York Mellon, London Branch as Agent (the

Agent

which expression shall include its successor or successors for the time being under

the Agency Agreement) and the other parties named therein.

(C)

 The Existing Issuer has executed a Deed of Covenant dated 13 May 2020 (the

Deed of

Covenant

, which expression includes the same as it may be amended, supplemented or

restated from time to time) relating to Global Notes (as defined in the Agency Agreement)

issued by the Existing Issuer pursuant to the Programme Agreement.

(D)

 It has been proposed that in respect of the Notes there will be a substitution of the

Substitute for the Existing Issuer as the issuer of the Notes. Expressions defined in the

Agency Agreement have the same meaning in this Deed unless the context requires

otherwise.

(E)

 References herein to

Notes

include any

Underlying Notes

(as defined in the Deed of

Covenant). References herein to

Coupons

are to Coupons relating to the Notes.

References herein to

Holder

means any Noteholder, Couponholder or, in relation to any

Underlying Notes, any Relevant Account Holder.

THIS DEED WITNESSES

as follows:

1.

 The Substitute agrees that, with effect from and including the first date on which notice has

been given by the Existing Issuer pursuant to Condition 14 and all the other requirements of

such Condition have been met (the

Effective Date

), it shall be deemed to be

the Issuer

for

all purposes in respect of the Notes and any Coupons and accordingly it shall be entitled to

all the rights, and subject to all the liabilities, on the part of the Existing Issuer contained in

them.

2.

 With effect from and including the Effective Date:

(a)

 the Existing Issuer shall be released from all its liabilities, in its capacity as

issuer of the Notes, contained in the Notes and any Coupons; and

(b)

 the Terms and Conditions of the Notes (the

Conditions

) shall be amended as follows:

(i)

 all references to

the Kingdom of Norway

[(or, as the case may be, the

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139

jurisdiction of

 incorporation or residence for tax purposes of the

preceding substituted

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140

company)] in Condition 5(b) shall, in respect of payments to be made by the

Substitute (but not in respect of payments to be made by [[(A)] the New

Guarantor (as defined below) ][[or (B)] the Guarantor[s])] under this Deed

Poll), be replaced by references to "[

jurisdiction of a country of residence of

the Substitute for tax purposes and/or, if different, of its incorporation

]"; and

(ii)

 all references to

the Kingdom of Norway

[(or, as the case may be, the

jurisdiction of incorporation or residence for tax purposes of the preceding

substituted company)] in Condition 6 shall, in respect of payments to be

made by the Substitute (but not in respect of payments to be made by [[(A)]

the New Guarantor (as defined below) ][[or (B)] the Guarantor[s])] under this

Deed Poll), be replaced by references to "[

jurisdiction of a country of

residence of the Substitute for tax purposes and/or, if different, of its

incorporation

]".

3.

 (a) The [Existing Issuer (in such capacity, the

New Guarantor

)[ and the] Guarantor[s][,

subject (in the case of Equinor Energy AS) to Condition [2(c)] (

Termination of the

Guarantee

) and clause 3(g) below,] unconditionally and irrevocably guarantee[s] [on

a joint and several basis] that, if for any reason the Substitute does not pay any sum

payable by it under any Note or Coupon (whether or not attached to it) or this Deed

on the date specified for such payment (whether on the normal due date, on

acceleration or otherwise), [the New Guarantor ][or] the Guarantor[s] will pay that

sum in the currency in which it is payable under such Note to the Holder on that

date on demand to [either][ the New Guarantor at [

]][ or ]the Guarantor[s] at [

 

]].

(b)

 As between [the New Guarantor][, ][the Guarantor[s]] and each Holder but without

effecting the Substitute's obligations, [each of][ the New Guarantor ][and ][the

Guarantor[s]] will be [jointly and severally] liable under this Deed as if it were the

sole principal debtor and not merely a surety. Accordingly, [each of][ the New

Guarantor][and][ the Guarantor[s]] will not be discharged, nor will its liability be

affected, by anything which would not discharge it or affect is liability if it were the

sole principal debtor (including (i) any time, indulgence, concession, waiver or

consent at any time given to the Substitute or any other person, (ii) any amendment

or supplement to any of the Conditions or to this Deed or to any security or other

guarantee or indemnity, (iii) the making or absence of any demand on the Substitute

or any other person for payment, (iv) the enforcement or absence of enforcement of

any Note or any Coupon or this Deed or of any security or other guarantee or

indemnity, (v) the taking, existence or release of any security, guarantee or

indemnity, (vi) the winding-up, dissolution, amalgamation, reconstruction or

reorganisation of the Substitute or any other person or (vii) the illegality, invalidity or

unenforceability of or any defect in any provision of any Note or any Coupon or this

Deed or any of the Substitute's obligations under any of them).

(c)

 The [New Guarantor's ][and, subject (in the case of Equinor Energy AS) to

Condition [2(c)] (

Termination of Guarantee

) and clause 3(g) below, the

Guarantor[s]'[s] respective] obligations under this Deed are and will remain in full

force and effect by way of continuing security until no sum remains payable under

the Notes or any Coupons or this Deed. Furthermore, these obligations of [each of][

the New Guarantor ][and ][the Guarantor[s]] are additional to, and not instead of,

any security or other guarantee or indemnity at any time existing in favour of any

person, whether from [the New Guarantor][, ][the Guarantor[s]] or otherwise, and

may be enforced without first having recourse to the Substitute, any other person,

any security or any other guarantee or indemnity. [The][Each of the][ New

Guarantor ][and][ the Guarantor[s]] irrevocably waive[s] all notices and demands

0010155-0003437 UKO2: 2005996996.8

141

whatsoever.

0010155-0003437 UKO2: 2005996996.8

142

(d)

 So long as any sum remains payable under any Note or any Coupon or this Deed

no right of the [New Guarantor ][or ][the Guarantor[s]], by reason of the performance

of any of [its][their] obligations under this Deed, to be indemnified by the Substitute

or to take the benefit of or enforce any security or other guarantee or indemnity shall

be exercised or enforced.

(e)

 [The][Each of the][ New Guarantor ][and the] Guarantor[s]] shall on demand [jointly

and severally] indemnify the relevant Holder against any cost, loss, expense or

liability sustained or incurred by it (other than value added tax or similar tax to the

extent recoverable by the relevant Holder) as a result of it being required for any

reason (including any bankruptcy, insolvency, winding-up, dissolution, or similar law

of any jurisdiction) to refund all or part of any amount received or recovered by it in

respect of any sum payable by the Substitute under any relevant Note or Coupon

or this Deed and [each of ][the New Guarantor ][and

][the Guarantor[s]] shall in any event pay to it on demand the amount as refunded by

it.

(f)

 As separate, independent and alternative stipulations, [each of ][the New

Guarantor ][and

][the Guarantor[s]] unconditionally and irrevocably agrees[, on a joint and several

basis]: (i) that any sum which, although expressed to be payable by the Substitute

under any Note or any Coupon or this Deed, is for any reason (whether or not now

existing and whether or not now known or becoming known to the Substitute, [the

New Guarantor][ the Guarantor[s]] or any Noteholder or Couponholder) not

recoverable from [either [of ]][the New Guarantor ][or

][the Guarantor[s]] on the basis of a guarantee shall nevertheless be recoverable

from it if it were the sole principal debtor and shall be paid by it to the relevant

Holder on demand and

(ii) as a primary obligation to indemnify each Holder against any loss suffered by it

as a result of any sum expressed to be payable by the Substitute under any Note or

any Coupon or this Deed not being paid by the time, on the date and otherwise in

the manner specified therein or any payment obligation of the Substitute under any

Note or any Coupon or this Deed being or becoming void, voidable or unenforceable

for any reason (whether or not now existing and whether or not now known or

becoming known to the Substitute, [the New Guarantor][, the Guarantor[s]] or any

Noteholder or Couponholder), the amount of that loss being the amount expressed

to be payable by the Substitute in respect of the relevant sum.

(g)

 [The release of Equinor Energy AS in accordance with Condition 2(c) (

Termination

of Guarantee

) from its obligations under this Deed Poll will take effect automatically

unconditionally, without prejudice to any obligations which may have accrued prior

to that time, without the need for any further act or thing to be done.]

4.

 All payments made by [either [of ]][the New Guarantor ][or ][the Guarantor[s]] under this

Deed shall be made free and clear of, and without withholding or deduction for, any taxes,

duties, assessments or governmental charges (

Taxes

) of whatever nature imposed, levied,

collected, withheld or assessed by or within the Kingdom of Norway or any authority therein

or thereof having power to tax, unless such withholding or deduction is required by law. In

that event [either [of]][the New Guarantor ][or ][the Guarantor[s]] shall pay such additional

amounts as will result in receipt by the Noteholders and Couponholders of such amounts as

would have been received by them had no such withholding or deduction been required,

except that no such additional amounts shall be payable in respect of any Note or Coupon:

(a)

 to, or to a third party on behalf of, a Holder who presented the relevant Note or

Coupon for payment in the Kingdom of Norway;

0010155-0003437 UKO2: 2005996996.8

143

(b)

 to, or to a third party on behalf of, a Holder who is liable (or where the beneficial

owner is liable) to such Taxes by reason of the Holder having some connection with

the Kingdom of Norway other than the mere holding of the Note or Coupon;

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144

(c)

 to, or to a third party on behalf of, a Holder who presented the relevant Note or

Coupon for payment more than 30 days after the Relevant Date (as defined in the

Conditions) except to the extent that such Holder would have been entitled to such

additional amounts on presenting the same for payment on such thirtieth day;

(d)

 on account of any Taxes that are payable pursuant to the Norwegian Tax Act

section 10-80 on payments to related companies or undertakings (as such term is

defined in the Norwegian Tax Act section 10-82) tax resident in a low-tax jurisdiction

(as such term is defined in the Norwegian Tax Act section 10-63); or

(e)

 as a result of any FATCA Withholding (as defined in the Agency Agreement).

5.

 The Conditions shall apply, where the context so admits, with any necessary consequential

modifications, to [the New Guarantor ][, ][the Guarantor[s]] and to [its][their respective]

obligations under this Deed. For the avoidance of doubt:

(a)

 in Condition 2(b) (

Status of Guarantee

) the payment obligations shall include those

of [the New Guarantor ][and ][the Guarantor[s]] under this Deed;

(b)

 [Condition 2(c) (

Termination of Guarantee

) shall apply,

mutatis mutandis

, to the

obligations of Equinor Energy AS (but not, for the avoidance of doubt, the

[New][other] Guarantor) under clause 3 of this Deed;]

(c)

 in Condition 5(b) (

Redemption for Tax Reasons

):

(i)

 references to "the Guarantee" shall be replaced by references to the

obligations of the [New Guarantor ][[and ][the Guarantor[s][, as applicable,]

under clause 3 of this Deed; and

(ii)

 references to "the Guarantor" shall be replaced by references to "[each of][

the New Guarantor ][and ][the Guarantor[s]]";

(d)

 Condition 5(h) (

Purchases

) shall apply,

mutatis mutandis,

to [the New Guarantor ][,

][the Guarantor[s]] and any Notes so purchased shall not entitle the holder to vote

at, or attend, or be counted towards the quorum at meetings of the Noteholders for

such Notes;

(e)

 Condition 8 (

Events of Default

):

(i)

 references to the Issuer in subclause (d) (

Winding-up

), shall include a

reference to [the New Guarantor][ and ][the Guarantor[s]];

(ii)

 there shall be an additional Event of Default if the Substitute ceases to

be wholly-owned and controlled by Equinor ASA; and

(iii)

 there shall be an additional Event of Default if the obligations of [the New

Guarantor ][or ][either of ][the Guarantor[s]] under this Deed are not (or are

claimed by [the New Guarantor ][or ][either of ][the Guarantor[s]] not to be) in

full force and effect; and

(f)

 in Condition 13 (

Meetings of Noteholders, Modification and Waiver

) an extra

category shall be added to the proposals for which a special quorum is required,

namely a proposal to modify or cancel the obligations of [either [of]][ the New

Guarantor][ or ][the Guarantor[s]] under this Deed.

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145

6.

 The Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] agree that the benefit of

the undertakings and the covenants binding upon them contained in this Deed shall be for

the benefit of each and every Holder and each Holder shall be entitled severally to enforce

such obligations against the Substitute[, / and][ the New Guarantor ][and ][ the

Guarantor[s]].

7.

 This Deed shall be deposited with and held to the exclusion of the Substitute[, / and][ the

New Guarantor ][and ][the Guarantor[s]] by the Agent at its specified office for the time

being under the Conditions and the Substitute[, / and][ the New Guarantor ][and][ the

Guarantor[s]] hereby acknowledge the right of every Noteholder to production of this Deed

and, upon request and payment of the expenses incurred in connection therewith, to the

production of a copy hereof certified by the Agent to be a true and complete copy.

8.

 This Deed may only be amended in the same way as the other Conditions are capable of

amendment under Schedule 4 of the Agency Agreement and any such amendment of this

Deed will constitute one of the proposals specified in Condition 13 (

Meetings of

Noteholders, Modification and Waiver

) to which special quorum provisions apply.

9.

 The Deed and any non-contractual obligations arising out of or in connection with it are

governed by, and shall be construed in accordance with, English law.

10.

 The Courts of England are to have jurisdiction to settle any disputes which may arise out of

or in connection with this Deed and accordingly any legal action or proceedings arising out

of or in connection with this Deed (

Proceedings

) may be brought in such courts. Each of

the Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] irrevocably submits to

the jurisdiction of such courts and waives any objection to Proceedings in such courts

whether on the ground of venue or on the ground that the Proceedings have been brought

in an inconvenient forum. This submission is made for the benefit of each Holder and shall

not limit the right of any of them to take Proceedings in any other court of competent

jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the

taking of Proceedings in any other jurisdiction (whether concurrently or not).

11.

 No rights are conferred on any person under the Contracts (Rights of Third Parties) Act

1999 to enforce any term of this Deed, but this does not affect any right or remedy of any

person which exists or is available apart from that Act.

12.

 Each of the Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] irrevocably

appoints [ ] of [ ] as its agent in England to receive service of process in

respect of any Proceedings in England. If for any reason it does not have such an agent

for service of process, the Substitute[, / or][ the New Guarantor ][or ][the [relevant]

Guarantor], as the case may be, will promptly appoint a substitute process agent and notify

the Noteholders of such appointment in accordance with the Conditions. Nothing herein

shall affect the right to serve process in any other manner permitted by law.

IN WITNESS

whereof this Deed has been executed as a deed poll on the date stated at the

beginning.

EXECUTED

as a

DEED

)

by EQUINOR ASA and signed )

and delivered as a deed on its )

behalf by )

an authorised representative of the company )

0010155-0003437 UKO2: 2005996996.8

146

EXECUTED

as a

DEED

)

by [

Substitute

] and signed )

and delivered as a deed on its )

behalf by )

an authorised representative of the company )

[

EXECUTED

as a

DEED

)

by EQUINOR ENERGY AS and signed

)

and signed )

and delivered as a deed on its )

behalf by )

an authorised representative of the company )]

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147

SCHEDULE 7

FORM OF ISSUER – ICSDs AGREEMENT

Agreement to be sent to both:

Euroclear Bank SA/NV

New Issues Department

1 Boulevard du Roi Albert

II B-1210 Brussels,

Belgium

newissues.issuerageement@euroclear.

com Fax: +32 (0) 2 224 1421

and Clearstream Banking

SA New Issues

Department 42

Avenue J.F. Kennedy

L-1855 Luxembourg

issueragreements@clearstream.co

m Fax: +44 (0)207 862 7005

PROGRAMME FORM

AGREEMENT ENTERED INTO THIS 10 MAY, OF 2019, AMONG:

Name of issuer: Equinor ASA

Address of issuer: Forusbeen 50, N-4035 Stavanger, Norway (the

Issuer

); and

Euroclear Bank SA/NV of 1 Boulevard du Roi Albert II, B-1210 Brussels, Belgium and Clearstream

Banking SA of 42 Avenue J.F. Kennedy, L-1855 Luxembourg (each a

Relevant Clearing

System

).

Subject: Acceptance of:

Programme Name:

Equinor ASA €20,000,000,000 Euro Medium Term Note Programme

Programme Number: 4138

This agreement sets forth the understanding of the parties with respect to securities to be issued,

as applicable, in (i) bearer New Global Note form (

NGN Securities

) or (ii) registered form under

the New Safekeeping Structure (

NSS Securities

) under the above-captioned programme (the

Securities

) that the Issuer may request be made eligible for settlement with Euroclear Bank

SA/NV and Clearstream Banking SA (the

ICSDs

).

In order to allow the ICSDs to accept the Securities as eligible for settlement with the ICSDs and to

properly service the Securities, the Issuer hereby represents and warrants to the ICSDs that in all

matters relating to the Securities it will, and it will require any agent appointed by it to, comply with

the requirements for the Securities set out herein.

1.

 The ICSDs hereby agree that:

(a)

 with respect to the issue outstanding amount (

IOA

) of the Securities, each of them will (in

the case of NGN Securities) maintain their respective portion of the IOA through their

records; will (in the case of NSS Securities) reflect through their records their respective

portion of the IOA as maintained by the NSS securities' register; will undertake daily

reconciliations of such amounts with each other; and will ensure on a daily basis that the

aggregate total of their respective records matches the IOA;

(b)

 each of them will promptly update their records to reflect the discharge of the Issuer's

obligations with respect to the Securities upon the receipt of (i) a redemption payment as

required pursuant to the terms of the Securities; and (ii) a confirmation from the Issuer or

0010155-0003437 UKO2: 2005996996.8

148

its agent of a mark

-up (that is,

0010155-0003437 UKO2: 2005996996.8

149

increase) or mark-down (that is, decrease) of the IOA of the Securities; in doing so, each

ICSD will consult with the other to ensure that the aggregate of the amounts so updated by

them is equal to the total mark-up or mark-down notified to them;

(c)

 each of them will, or will require any agent appointed by it to, provide the necessary

information to the Issuer's agents to enable the Issuer's agents to comply with 2(c) below;

and

(d)

 each of them confirms that, upon the Issuer’s request, it will produce for the Issuer’s use a

statement showing the sum of the total nominal amount of its customer holdings for the

Securities as of a specified date.

2.

 The Issuer must procure that, in relation to any Securities:

(a)

 it or its agents will inform the ICSDs (through the common service provider appointed by

the ICSDs to service the Securities (the

CSP

)) of the initial IOA for such Securities on or

prior to the applicable closing date;

(b)

 if any event occurs that requires a mark-up or mark-down of the records that an ICSD holds

for its customers to reflect such customers’ interest in such Securities, one of its agents will

promptly provide details of the amount of such mark-up or mark-down, together with a

description of the event that requires it, to the ICSDs (through the CSP) to ensure that the

IOA of such NGN Securities in the records of the ICSDs, or the records of the ICSDs

reflecting the IOA of such NSS Securities, remain(s) at all times accurate;

(c)

 it or its agents will at least monthly perform a reconciliation process with the ICSDs (through

the CSP) with respect to the IOA for such Securities and will promptly inform the ICSDs

(through the CSP) of any discrepancies;

(d)

 it or its agents will promptly assist the ICSDs (through the CSP) in resolving any

discrepancy identified in the IOA of such NGN Securities or in the records reflecting the IOA

of such NSS Securities;

(e)

 it or its agents will promptly provide to the ICSDs (through the CSP) details of all amounts

paid under the Securities (or, where the Securities provide for delivery of assets other than

cash, of the assets so delivered);

(f)

 it or its agents will promptly provide to the ICSDs (through the CSP) any changes to the

Securities that will affect the amount of, or date for, any payment due under such

Securities;

(g)

 it or its agents will promptly provide to the ICSDs (through the CSP) copies of all

information that is given to the holders of the Securities;

(h)

 its agents will promptly pass on to it all communications they receive from the ICSDs

directly or through the CSP relating to the Securities; and

(i)

 its agents will promptly notify the ICSDs (through the CSP) of any failure by the Issuer to

make any payment or delivery due under the Securities when due.

The Issuer’s obligations under this Agreement will be discharged if it includes provisions

substantially to the effect set out in the paragraph above in any agreement it has with its agents.

The Issuer agrees that the ICSDs may rely on communication from its agents as if such

communication was received directly from the Issuer.

3.

 This Agreement is not intended to create and does not create any relationship of agency

0010155-0003437 UKO2: 2005996996.8

150

between the parties to it.

0010155-0003437 UKO2: 2005996996.8

151

4.

 This Agreement is governed by the law of the jurisdiction marked on Schedule 1.

Signed on behalf of:

Equinor ASA

By: 

(

Signature of Authorised Officer of Issuer or agent with Authorisation of Issuer

)

Name of Signatory:

On behalf of Euroclear Bank SA/NV On behalf of Clearstream Banking, société

anonyme

Stéphane Bernard, Managing Director, Head of

Asset Servicing & Transaction Operations &

Client Services

Berthold Kracke

Member of Executive Board

Laurence Van Der Haegen, Head of

Department New Issues

Marc Kieffer, Executive Vice President,

Issuance & Distribution Services

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152

Schedule 1

Please tick one jurisdiction only.

Austria Latvia

Belgium Liechtenstein

Canada Lithuania

Cyprus Luxembourg

Czech Republic Malta

Denmark Netherlands

England & Wales

Norway

Estonia Poland

Finland Portugal

France Scotland

Germany Slovakia

Greece Slovenia

Hungary Spain

Iceland Switzerland

Ireland Sweden

Italy U.S.A. - New York

Japan - Other State

(

Name of Other State

)

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153

SCHEDULE 8

ADDITIONAL DUTIES OF THE AGENT

In relation to each Series of Notes that are NGNs, the Agent will comply with the following provisions:

1.

 The Agent will inform each of Euroclear and Clearstream, Luxembourg (the

ICSDs

),

through the common service provider appointed by the ICSDs to service the Notes (the

CSP

), of the initial issue outstanding amount (

IOA

) for each Tranche on or prior to the

relevant Issue Date.

2.

 If any event occurs that requires a mark up or mark down of the records which an ICSD

holds for its customers to reflect such customers' interest in the Notes, the Agent will (to the

extent known to it) promptly provide details of the amount of such mark up or mark down,

together with a description of the event that requires it, to the ICSDs (through the

CSP)

to

ensure that the IOA of the Notes remains at all times accurate.

3.

 The Agent will at least once every month reconcile its record of the IOA of the Notes with

information received from the ICSDs (through the CSP) with respect to the IOA maintained

by the ICSDs for the Notes and will promptly inform the ICSDs (through the CSP) of any

discrepancies.

4.

 The Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy

identified in the IOA of the Notes.

5.

 The Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid

by it under the Notes (or, where the Notes provide for delivery of assets other than cash, of

the assets so delivered).

6.

 The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP)

notice of any changes to the Notes that will affect the amount of, or date for, any payment

due under the Notes.

7.

 The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP)

copies of all information that is given to the holders of the Notes.

8.

 The Agent will promptly pass on to the Issuer all communications it receives from the

ICSDs directly or through the CSP relating to the Notes.

9.

 The Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of

any failure by the Issuer to make any payment or delivery due under the Notes when due.

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124

The Agent

THE BANK OF NEW YORK MELLON, LONDON BRANCH

160 Queen Victoria

Street London EC4V

4LA United Kingdom

Email:

 corpsov4@bnymellon.co

m Copy to Fax: +44 207 964 2536

Attention: Corporate Trust Administration EQUINOR ASA

By:

The other Paying Agent

THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH

Vertigo Building

Polaris 2-4 rue Eugene

Ruppert L-2453

Luxembourg

Telephone:

Luc Biever: +352 24 52 5320

Sebastien Loiseau: +352 24 52 4436

Rima Hachoud: +352 24 52

5673 Email:

 LUXMB_SPS@bnymellon.co

m

Fax: +352 24 52 42 04

Attention: Corporate Trust Administration EQUINOR ASA

All communications c/o the Agent

By:

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125

APPENDIX 1

FORM OF CALCULATION AGENCY AGREEMENT

CALCULATION AGENCY AGREEMENT

[ ]

EQUINOR ASA

as

Issuer

and

[EQUINOR ENERGY AS

as Guarantor]

€20,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

126

CONTENTS

Clause Page

1.

 Appointment of the Calculation Agent ................................ ................................ ............... 127

2.

 Duties of Calculation Agent ................................ ................................ ............................... 127

3.

 Expenses................................ ................................ ................................ .......................... 128

4.

 Indemnity ................................ ................................ ................................ .......................... 128

5.

 Conditions of Appointment ................................ ................................ ................................ 128

6.

 Termination of Appointment ................................ ................................ .............................. 129

7.

 Notices ................................ ................................ ................................ ............................. 130

8.

 General ................................ ................................ ................................ ............................ 131

9.

 Contract (Rights of Third Parties) Act 1999 ................................ ................................ ....... 131

10.

 Governing Law and Submission to Jurisdiction ................................ ................................ . 131

Signatories ................................ ................................ ................................ ................................ ... 133

0010155-0003437 UKO2: 2005996996.8

127

CALCULATION AGENCY AGREEMENT

in respect of the

EQUINOR ASA €20,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

THIS AGREEMENT

is made on [ ]

BETWEEN

:

(1)

EQUINOR ASA

of Forusbeen 50, N-4035 Stavanger, Norway (the

Issuer

);

(2)

 [

EQUINOR ENERGY AS

of Forusbeen 50, N-4035 Stavanger, Norway (the

Guarantor

)]; and

(3)

 [ ] of [ ] (the

Calculation Agent

, which expression shall include its successor

or successors for the time being as calculation agent hereunder).

WHEREAS

:

(A)

 The Issuer has entered into an amended and restated Programme Agreement with the

Dealers named therein dated 11 May 2023 under which the Issuer may issue Euro Medium

Term Notes (

Notes

) with an aggregate nominal amount of up to €20,000,000,000 (or its

equivalent in other currencies).

(B)

 The Notes will be issued subject to and with the benefit of an amended and restated

Agency Agreement (the

Agency Agreement

) dated 11 May 2023 and entered into

between the Issuer, The Bank of New York Mellon, London Branch as Agent (the

Agent

which expression shall include its successor or successors for the time being under the

Agency Agreement) and the other parties named therein.

NOW IT IS HEREBY AGREED

that:

1.

 APPOINTMENT OF THE CALCULATION AGENT

The Issuer hereby appoints [ ] as Calculation Agent in respect of each Series of

Notes described in the Schedule hereto (the

Relevant Notes

) for the purposes set out in

clause 2 below, all upon the provisions hereinafter set out. The agreement of the parties

hereto that this Agreement is to apply to each Series of Relevant Notes shall be evidenced

by the manuscript annotation and signature in counterpart of the Schedule hereto.

2.

 DUTIES OF CALCULATION AGENT

The Calculation Agent shall in relation to each Series of Relevant Notes perform all the

functions and duties imposed on the Calculation Agent by the terms and conditions of the

Relevant Notes (the

Conditions

) including endorsing the Schedule hereto appropriately in

relation to each Series of Relevant Notes. In addition, the Calculation Agent agrees that it

will provide a copy of all calculations made by it which affect the nominal amount

outstanding of any Relevant Notes which are identified on the Schedule as being NGNs to

The Bank of New York Mellon, London Branch to the contact details set out on the

signature page hereof.

Notwithstanding any other provision of this Agreement, the Calculation Agent shall not be

obliged to perform any functions and duties imposed on it by the Conditions as a result of

any Benchmark Amendments and/or Benchmark Replacement Conforming Changes (as

0010155-0003437 UKO2: 2005996996.8

128

applicable) enacted without

0010155-0003437 UKO2: 2005996996.8

129

the consent of the Calculation Agent if, in the Calculation Agent’s opinion, acting

reasonably and in good faith, such Benchmark Amendments and/or Benchmark

Replacement Conforming Changes (as applicable) impose more onerous obligations upon

it or expose it to additional duties, responsibilities or liability, or reduce or amend the

protective provisions afforded to the Calculation Agent in the Conditions or this Agreement.

3.

 EXPENSES

[

To

be agreed at the time of appointment

.]

4.

 INDEMNITY

4.1

 The Issuer shall indemnify (and failing the Issuer so indemnifying, the Guarantor agrees so

to indemnify) the Calculation Agent against any loss, liability, cost, claim, action, demand or

expense (including, but not limited to, all reasonable costs, legal fees, charges and

expenses paid or incurred in disputing or defending any of the foregoing) which it may incur

or which may be made against the Calculation Agent as a result of or in connection with its

appointment or the exercise of its powers and duties hereunder except such as may (i)

result from its own default, negligence or bad faith or that of its officers, directors or

employees or the breach by it of the terms of this Agreement or (ii) be governed by any

other provision of this Agreement.

4.2

 The Calculation Agent shall indemnify the Issuer and the Guarantor against any loss,

liability, cost, claim, action, demand or expense (including, but not limited to, all reasonable

costs, legal fees, charges and expenses paid or incurred in disputing or defending any of

the foregoing) which the Issuer may incur or which may be made against the Issuer as a

result of the breach by the Calculation Agent of the terms of this Agreement or its default,

negligence or bad faith or that of its officers, directors or employees.

5.

 CONDITIONS OF APPOINTMENT

5.1

 In acting hereunder and in connection with the Relevant Notes, the Calculation Agent shall

act solely as agent of the Issuer [and the Guarantor] and will not thereby assume any

obligations towards or relationship of agency or trust for or with any of the owners or

holders of the Relevant Notes or the coupons (if any) appertaining thereto (the

Coupons

).

5.2

 In relation to each issue of Relevant Notes, the Calculation Agent hereby undertakes to the

Issuer to perform such obligations and duties, and shall be obliged to perform such duties

and only such duties as are herein and in the Conditions specifically set forth and no

implied duties or obligations shall be read into this Agreement or the Relevant Notes

against the Calculation Agent, other than the duty to act honestly and in good faith and to

exercise the diligence of a reasonably prudent agent in comparable circumstances.

5.3

 The Calculation Agent may consult with legal and other professional advisers and the

opinion of such advisers shall be full and complete protection in respect of any action taken,

omitted or suffered hereunder in good faith and in accordance with the opinion of such

advisers.

5.4

 The Calculation Agent shall be protected and shall incur no liability for or in respect of any

action taken, omitted or suffered in reliance upon any instruction, request or order from the

Issuer [or the Guarantor] or any notice, resolution, direction, consent, certificate, affidavit,

statement, cable, telex or other paper or document which it reasonably believes to be

genuine and to have been delivered, signed or sent by the proper party or parties or upon

written instructions from the Issuer [or the Guarantor].

0010155-0003437 UKO2: 2005996996.8

130

5.5

 The Calculation Agent and any of its officers, directors and employees may become the

owner of, or acquire any interest in, any Notes or Coupons (if any) with the same rights that

it or they would have if the Calculation Agent were not appointed hereunder, and may

engage or be interested in any financial or other transaction with the Issuer [or the

Guarantor] and may act on, or as depositary, trustee or agent for, any committee or body of

holders of Notes or Coupons (if any) or in connection with any other obligations of the

Issuer [or the Guarantor] as freely as if the Calculation Agent were not appointed

hereunder.

6.

 TERMINATION OF APPOINTMENT

6.1

 The Issuer [or the Guarantor] may terminate the appointment of the Calculation Agent at

any time by giving to the Calculation Agent at least 45 days' prior written notice to that

effect, provided that, so long as any of the Relevant Notes is outstanding:

(a)

 such notice shall not expire less than 45 days before any date upon which any

payment is due in respect of any Relevant Notes; and

(b)

 notice shall be given in accordance with the Conditions, to the holders of the

Relevant Notes at least 30 days prior to any removal of the Calculation Agent.

6.2

 Notwithstanding the provisions of subclause 6.1 above, if at any time:

(a)

 the Calculation Agent becomes incapable of acting, or is adjudged bankrupt or

insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the

benefit of its creditors or consents to the appointment of an administrator, liquidator

or administrative or other receiver of all or any substantial part of its property, or

admits in writing its inability to pay or meet its debts as they may mature or

suspends payment thereof, or if any order of any court is entered approving any

petition filed by or against it under the provisions of any applicable bankruptcy or

insolvency law or if a receiver of it or of all or a substantial part of its property is

appointed or if any officer takes charge or control of the Calculation Agent or of its

property or affairs for the purpose of rehabilitation, conservation or liquidation; or

(b)

 the Calculation Agent fails duly to perform any function or duty imposed upon it by

the Conditions and this Agreement,

the Issuer [and the Guarantor] may forthwith without notice terminate the appointment of

the Calculation Agent, in which event notice thereof shall be given to the holders of the

Relevant Notes, in accordance with the Conditions as soon as practicable thereafter.

6.3

 The termination of the appointment pursuant to subclause 6.1 or 6.2 above of the

Calculation Agent hereunder shall not entitle the Calculation Agent to any amount by way of

compensation but shall be without prejudice to any amount then accrued due.

6.4

 The Calculation Agent may resign its appointment hereunder at any time by giving to the

Issuer [and the Guarantor] at least 90 days' prior written notice to that effect. Following

receipt of a notice of resignation from the Calculation Agent, the Issuer shall promptly give

notice thereof to the holders of the Relevant Notes, in accordance with the Conditions.

6.5

 Notwithstanding the provisions of subclauses 6.1, 6.2 and 6.4 above, so long as any of the

Relevant Notes is outstanding, the termination of the appointment of the Calculation Agent

(whether by the Issuer [and the Guarantor] or by the resignation of the Calculation Agent)

shall not be effective unless upon the expiry of the relevant notice a successor Calculation

Agent has been appointed. The Issuer [and the Guarantor] agrees with the Calculation

Agent that if, by the day falling 10 days before the expiry of any notice under subclause

0010155-0003437 UKO2: 2005996996.8

131

6.1

 or 6.4, the Issuer [and the Guarantor] has not

0010155-0003437 UKO2: 2005996996.8

132

appointed a replacement Calculation Agent, the Calculation Agent shall be entitled, on

behalf of the Issuer to appoint as a successor Calculation Agent in its place a reputable

financial institution of good standing which the Issuer [and the Guarantor] shall approve

(such approval not to be unreasonably withheld or delayed).

6.6

 Upon its appointment becoming effective, a successor Calculation Agent shall without

further act, deed or conveyance, become vested with all the authority, rights, powers,

trusts, immunities, duties and obligations of such predecessor with like effect as if originally

named as the Calculation Agent hereunder.

6.7

 If the appointment of the Calculation Agent hereunder is terminated (whether by the Issuer

[and the Guarantor] or by the resignation of the Calculation Agent), the Calculation Agent

shall, on the date on which such termination becomes effective, deliver to the successor

Calculation Agent any records concerning the Relevant Notes maintained by it (except such

documents and records as it is obliged by law or regulation to retain or not to release), but

shall have no other duties or responsibilities hereunder.

6.8

 Any corporation into which the Calculation Agent may be merged or converted, or any

corporation with which the Calculation Agent may be consolidated, or any corporation

resulting from any merger, conversion or consolidation to which the Calculation Agent shall

be a party, or any corporation to which the Calculation Agent shall sell or otherwise transfer

all or substantially all of its assets shall, on the date when such merger, consolidation or

transfer becomes effective and to the extent permitted by any applicable laws, become the

successor Calculation Agent under this Agreement without the execution or filing of any

paper or any further act on the part of any of the parties hereto, unless otherwise required

by the Issuer and after the said effective date all references in this Agreement to the

Calculation Agent shall be deemed to be references to such corporation. Written notice of

any such merger, conversion, consolidation or transfer shall forthwith be given to the Issuer

and the Agent.

6.9

 Upon giving notice of the intended termination of the appointment of the Calculation Agent,

the Issuer shall use all reasonable endeavours to appoint a further financial institution of

good standing as successor Calculation Agent.

7.

 NOTICES

Any notice or communication given hereunder shall be sufficiently given or served:

(a)

 if delivered in person to the relevant address specified on the signature pages

hereof or such other address as may be notified by the recipient in accordance with

this clause and, if so delivered, shall be deemed to have been delivered at time of

receipt; or

(b)

 if by email, when sent, subject to no delivery failure notification being received by

the sender within 24 hours of the time of sending, to the relevant email address

specified on the signature pages hereof or such other email address as may be

notified by the recipient in accordance with this clause; or

(c)

 if sent by facsimile to the relevant number specified on the signature pages hereof

or such other address as may be notified by the recipient in accordance with this

clause and, if so sent, shall be deemed to have been delivered immediately after

transmission provided such transmission is confirmed when an acknowledgement of

receipt is received.

Where a communication is received after business hours it shall be deemed to be received

and become effective on the next business day. Every communication shall be irrevocable

0010155-0003437 UKO2: 2005996996.8

133

save in respect of any manifest error therein.

0010155-0003437 UKO2: 2005996996.8

134

8.

 GENERAL

8.1

 The descriptive headings in this Agreement are for convenience of reference only and shall

not define or limit the provisions hereof.

8.2

 This Agreement may be executed by any one or more of the parties hereto in any number

of counterparts, each of which shall be deemed to be an original, but all such counterparts

shall together constitute one and the same instrument.

8.3

 If any provision in or obligation under this Agreement is or becomes invalid, illegal or

unenforceable in any respect under the law of any jurisdiction, that will not affect or impair

(i) the validity, legality or enforceability under the law of that jurisdiction of any other

provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability

under the law of any other jurisdiction of that or any other provision in or obligation under

this Agreement

[

Consider whether contractual recognition language (pursuant to Article 55 of the EU Bank

Recovery and Resolution Directive) is required to be included.

]

9.

 CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agreement has no right under the Contracts (Rights of

Third Parties) Act 1999 to enforce any term of this Agreement but this does not affect any

right or remedy of a third party which exists or is available apart from that Act.

10.

 GOVERNING LAW AND SUBMISSION TO JURISDICTION

10.1

 This Agreement and any non-contractual obligations arising out of or in connection with it

are governed by, and shall be construed in accordance with, English law.

10.2

 The courts of England are to have jurisdiction to settle any disputes which may arise out of

or in connection with this Agreement (including a dispute relating to any non-contractual

obligations arising out of or in connection with this Agreement) and accordingly any legal

action or proceedings arising out of or in connection with this Agreement (

Proceedings

)

(including any Proceedings relating to any non-contractual obligations arising out of or in

connection with this Agreement) may be brought in such courts. The Issuer [and the

Guarantor each] irrevocably submits to the jurisdiction of such courts and waives any

objection to Proceedings in any such courts whether on the ground of venue or on the

ground that the Proceedings have been brought in an inconvenient forum. This submission

is made for the benefit of the Calculation Agent and shall not limit its right to take

Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings

in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction

(whether concurrently or not).

10.3

 The Issuer [and the Guarantor each] irrevocably appoints Equinor UK Limited (whose

offices are at the date of this Agreement at One Kingdom Street, Paddington Central,

London W2 6BD) as its agent for service of process in respect of any Proceedings in

England. If for any reason such agent shall cease to be such agent for service of process,

the Issuer shall forthwith, on request of the Calculation Agent, appoint a new agent for

service of process in England and deliver to the Calculation Agent a copy of the new

agent's acceptance of that appointment within 30 days. Nothing in this Agreement shall

affect the right to serve process in any other manner permitted by law.

IN WITNESS

whereof this Agreement has been entered into the day and year first above written.

0010155-0003437 UKO2: 2005996996.8

135

SCHEDULE TO THE CALCULATION AGENCY AGREEMENT

Series number Issue Date Maturity Date

Title

and

Nomina

l

Amount

NGN

[Yes/No

]

Annotation

by

Calculation

Agent/Issuer

0010155-0003437 UKO2: 2005996996.8

136

SIGNATORIES

EQUINOR ASA

Forusbeen 50

N-4035 Stavanger

Norway

Telefax No: + 47 51 99 90 17

Attention: Compliance Officer, Group

Finance By:

[

EQUINOR ENERGY AS

Forusbeen 50

N-4035 Stavanger

Norway

Telefax No: + 47 51 99 90 17

Attention: Compliance Officer, Group

Finance By: ]

[Name of Calculation Agent]

[Address of Calculation

Agent] Telefax No: [

 ]

Attention: [ ]

By: .............................................................................

Contact Details

THE BANK OF NEW YORK MELLON, LONDON BRANCH

160 Queen Victoria

Street London EC4V

4LA United Kingdom

Email:

 corpsov4@bnymellon.c

om Copy to Fax: +44 207 964 2536

Attention: Corporate Trust Administration EQUINOR ASA

EX-8

Significant subsidiaries

The following table shows significant subsidiaries and significant equity accounted companies within the Equinor group as of 

31 December 2023.

Significant subsidiaries and significant equity accounted companies

Name

in %

Country of

incorporation

Name

in %

Country of

incorporation

BeGreen ApS

100

Denmark

Equinor International Netherlands BV

100

Netherlands

Danske Commodities A/S

100

Denmark

Equinor Natural Gas LLC

100

USA

Equinor Angola Block 17 AS

100

Norway

Equinor New Energy AS

100

Norway

Equinor Apsheron AS

100

Norway

Equinor Nigeria Energy Company Ltd.

100

Nigeria

Equinor Argentina SAU

100

Argentina

Equinor Refining Norway AS

100

Norway

Equinor Brasil Energia Ltda.

100

Brazil

Equinor Renewables B.V.

100

Netherlands

Equinor Canada Ltd. (Group)

100

Canada

Equinor UK Ltd. (Group)

100

United Kingdom

Equinor Dezassete AS

100

Norway

Equinor US Holding Inc. (Group)

100

USA

Equinor Energy AS

100

Norway

Equinor Ventures AS

100

Norway

Equinor Energy do Brasil Ltda.

100

Brazil

Equinor Wind Power AS

100

Norway

Equinor Energy International AS

100

Norway

Equinor Wind US LLC

100

USA

Equinor Holding Netherlands BV

100

Netherlands

Horus Investimentos SA

100

Brazil

Equinor In Salah AS

100

Norway

Triton Power Holdings Ltd.

1

50

United Kingdom

Equinor Insurance AS

100

Norway

1) Equity accounted entities.

For investments, voting rights correspond to ownership.

EX-11

Code of

Conduct

Dear Colleague,

Our vision for Equinor is to be recognised as a company that is shaping the future of energy. Our

innovative, open and collaborative culture is central to realising this vision. In Equinor, how we deliver is as

important as what we deliver. I strongly believe that an ethical business culture is the cornerstone of a

sustainable company. 

This Code of Conduct is your guide to ethical business practice. It reflects our values and our belief that

conducting business in an ethical and transparent manner is not just the

right

way to work, but is the

only

way to work. The Code of Conduct includes mandatory requirements for everyone who works on behalf of

Equinor. My expectation is that the Code of Conduct, together with your good judgment, will lead you to

the right decisions. You should seek guidance from your leader or other internal resources referred to in

the Code of Conduct if you are uncertain on how to proceed.

Fundamental changes are happening in our industry which has a key role in the energy transition towards

a net zero society. From geopolitics and energy markets to our industry and our climate, we face new

realities. But our commitment to high ethical standards in our business operations stays firm. It is more

important than ever to earn the trust of our stakeholders – our people, our owners, our business partners

and our communities. The Code of Conduct will assist us in earning and sustaining this trust and in

building a prosperous company for the future.  

We must work together to create our future Equinor. I want Equinor to continue to be a leader in ethical

business conduct. I expect that you carefully consider your business decisions to ensure that they are in

line with the Code of Conduct. Only then will we maintain Equinor’s reputation and continue to earn the

trust that allows the company to succeed with our vision – the Equinor Way. 

Anders Opedal

President and CEO

Table of contents

1 The Equinor Way 5

1.1 Equinor’s Commitment 5

1.2 Our Code of Conduct 5

1.3 Your Responsibilities 6

1.4 Responsibilities for Leaders 6

1.5 Asking Questions and Reporting Concerns 7

1.6 Ethics Helpline 7 

1.7 Non-Retaliation Policy 7

1.8 Consequences of Breaches 8

1.9 Ethics and Compliance in Equinor 8

2 Respecting our People 10

2.1 Equality, Diversity and Inclusion 10

2.2 Bullying and Harassment 11

2.3 Safety and Security 12

2.4 Privacy and Data Protection 13

2.5 Drugs and Alcohol 14

2.6 Purchase of Sexual Services 15

3 Conducting our Operations 17

3.1 Anti-Corruption 17

3.2 Conflict of Interest 18

3.3 Directorships, Secondary Employment and Ownership Interests 19

3.4 International Trade Restrictions 20

3.5 Anti-Money Laundering and 

 Facilitation of Tax Evasion 21

3.6 Financial and Business Records 

 and Reporting 22

3.7 Property and Assets 23

3.8 IT Solutions and IT Equipment 24

3.9 Information Management 

 and Confidentiality 25

3.10 Inside Information 26

4 Relating to our Business Partners 28

4.1 Suppliers and Business Partners 28

4.2 Intermediaries 29

4.3 Fair Competition 30

4.4 Gifts, Hospitality and Expenses 31

5 Communities and Environment 33

5.1 Local Stakeholder Engagement 33 

5.2 Environment 34

5.3 Public Communication 35

5.4 Public Affairs 36

5.5 Public Officials 37

The Code of Conduct will be printed in updated versions when deemed necessary. However, any changes will be updated in the

electronic version as and when required, and this will always represent the most recent edition. English and Norwegian are the

official versions.

1 The Equinor way

1.1 Equinor’s Commitment

Our ability to create value is dependent on applying high ethical standards to create a trust-based relationship with

our people, our owners, our business partners and our communities. 

In our business activities, we will comply with applicable laws, act in an ethical, sustainable and socially responsible

manner and practice good corporate governance. We will conduct our business consistently with the United Nations

Guiding Principles on Business and Human Rights and the ten Principles of the Global Compact, in the manner as

set out in our Human Rights Policy. We support the Paris Climate Agreement and the UN Sustainable Development

Goals. We will maintain an open dialogue on ethical issues, internally and externally. 

1.2 Our Code of Conduct

The Code of Conduct (the Code) sets out our expectations, commitments and requirements for ethical conduct. The

Code applies to Equinor’s board members, employees and hired personnel.   

The Code reflects our values: Open, Collaborative, Courageous, and Caring. The Code includes our most important

requirements, provides references to more detailed requirements in our governing documents and refers to other

helpful resources. However, the Code does not remove the need for you to exercise good judgment. 

The Code has been approved by the Equinor’s Board of Directors and provided for in

The Equinor Book.

1.3 Your Responsibilities

We set high ethical standards for everyone who acts on Equinor’s behalf and in an Equinor capacity. It is your

responsibility to comply with the Code, both in letter and in spirit. You are also responsible for complying with other

governing documents and applicable laws relevant to your work. 

What this means for you 

Familiarise yourself with the Code as well as other governing documents and applicable laws relevant to your work. 

●

 Act comfortably within our ethical standards and within the law. Operating in a grey zone increases the risk

of things going wrong. When in doubt, disclose the issue to your leader and discuss it openly.

●

 Spend sufficient time on difficult decisions and raise issues early. The wrong decisions are often taken

when things have not been thought through properly and you are pressured into taking a rash decision. 

●

 If there is a difference between a legal requirement and the Code, apply the most stringent standard.

●

 Participate in required ethics and compliance training and confirm annually that you have familiarised

yourself and will comply with the Code. 

1.4 Responsibilities for Leaders

We are committed to recruiting and continuously developing the best leaders for our company. We expect our

leaders to demonstrate ownership and commitment to our ethical standards by what they say and do. As a leader

you must ensure that activities within your area of responsibility are carried out in accordance with the Code, other

governing documents and applicable laws.

What this means for you 

●

 Be a role model for ethical leadership through promotion of our values and ethical standards. Show by

behaviour what it means to act with integrity.

●

 Communicate the requirements in the Code, give advice on its interpretation and application, and follow up

concerns raised. 

●

 Facilitate a working environment free from harassment, bullying and discrimination.

●

 Create an environment where people feel comfortable speaking up and asking questions without the risk of

retaliation. 

●

 Be consistent when enforcing our standards and holding people accountable for their behaviour at work. 

●

 Make sure your team members participate in required ethics and compliance training.

1.5 Asking Questions and Reporting

Concerns 

The Code aims at being as clear and direct as possible, but it cannot address every situation that may arise. We

have an open communications policy, and you should raise questions or seek advice when you are uncertain about

how to proceed in any given situation. 

If you suspect a possible violation of the Code or other unethical conduct, it is your duty to report it immediately.

This includes any attempts of corruption you may become aware of. We recognise that raising a concern is not

always easy and we have several channels for taking concerns forward. 

What this means for you 

●

 Inform your leader immediately if you become aware of any activity that you think is a violation of the Code.

Alternatively, you can contact your leader’s superior. 

●

 If you do not feel comfortable with those options, you can contact your local people and organisation

representative, your local compliance officer or the legal, ethics and compliance function. 

●

 If you are uncomfortable using any of these channels, you can report your concern to the Ethics Helpline. 

●

 You may use the same channels to ask any questions regarding compliance with the Code.

1.6 The Ethics Helpline 

The Ethics Helpline is a multi-language service available 24/7 providing phone service and a web portal. It is available to anyone

who has a legitimate concern. You may choose to remain anonymous, if permitted by law.

Additional requirements and helpful tools

WR1408 Ethics Helpline

1.7 Non-Retaliation Policy 

We will not tolerate any form of retaliation against any person who has raised an ethical or legal concern in good faith, including

witnesses or any other persons who contribute to an investigation of a reported concern. Acting in good faith means that you

have made a sincere report in a responsible manner. This applies even if your report does not turn out to be an actual violation.

1.8 Consequences of Breaches

We will not tolerate any breaches of the Code or the law. Potential misconduct may be investigated by Corporate

Audit and Investigation, or other relevant internal or external experts. We will pursue remedial measures or other

follow up of personnel if you breach the Code or laws. The same applies to leaders who disregard or tolerate such

breaches either through negligence or actual knowledge. The remedial measures may include termination of your

employment contract and reporting to relevant authorities. 

Incidents of ethical misconduct shall be registered and reported in accordance with our governing documents. 

1.9 Ethics and Compliance in Equinor

We work in a systematic manner to ensure compliance with the Code and applicable laws. Our ethics and

compliance programmes apply to all parts of Equinor. Our ethics and compliance function, headed by the Chief

Ethics and Compliance Officer, is responsible for supervising Equinor’s ethics and compliance activities, including

guidance on the Code and following up potential breaches. The Chief Ethics and Compliance Officer will appoint

one compliance officer to assist in such work for each business area and for selected corporate staff functions. The

business areas and corporate functions shall appoint local compliance officers where required. 

The corporate executive committee constitutes Equinor’s ethics committee. In addition, ethics committees have

been established in the business areas and most corporate functions, comprising the respective management

teams. The committees will ensure a strong focus on, common understanding of, and compliance with Equinor’s

ethical requirements.

• Corporate directive CD04- Committees

• Corporate policy CP02- Human rights policy

• FR16 People and organisation

• WR1408 Ethics Helpline

• WR2417 Ethics incident reporting 

• WR2595 The compliance officer role

2 Respecting our people

2.1 Equality, Diversity and Inclusion

Every employee is an important member of the Equinor team. We are committed to providing an inclusive

environment recognised for its equality and diversity, and we will treat everyone with fairness, respect and dignity. 

We do not tolerate any discrimination of colleagues or others affected by our operations. Discrimination includes

exclusion, preference or illegal distinction based on ethnicity, age, gender, gender identity, disability, sexual

orientation, religion or belief, political views, or any other characteristic that compromise the principle of equality. 

What this means for you 

●

 Treat everyone with fairness, respect and dignity.

●

 Base your work-related decisions on merit and not on other characteristics that result in compromising the

principle of equality.

2.2 Bullying and Harassment

Courtesy and respect are important aspects of a sound working environment and business dealings. We expect

you to treat everyone you meet through work or work-related activities in a respectful manner. We will not tolerate

any form of harassment or other inappropriate, intimidating or offensive conduct, including any form of unwanted

and troublesome attention of a se xual nature.

What this means for you 

●

 Take responsibility to create and maintain a good working environment. 

●

 Never engage in harassment, bullying, workplace violence or other behaviour that colleagues or business

partners may regard as threatening or degrading. 

●

 Offensive messages, derogatory remarks and inappropriate jokes are never acceptable. 

●

 Respect other people’s customs and culture. 

●

 Speak up if you observe or experience harassment or bullying.

2.3 Safety and Security

Equinor’s safety and security vision is zero harm. We are committed to providing a safe, healthy and secure

environment for all personnel at our facilities and job sites, preventing accidents and incidents from affecting people,

environment and our assets. To build a culture that is Always Safe will require consistent use of I am Safety

expectations, Security Rules, Life Saving Rules and a continued focus on building a proactive safety culture

applying Human and Organizational Performance Principles.     

What this means for you 

●

 Safety and security is everyone’s responsibility. You must understand and act on your responsibilities to

contribute to a healthy, safe and secure work environment. 

●

 Stop work immediately if you consider it unsafe. 

●

 Report any incident or unsafe condition as soon as possible. If you see something, say something.

●

 Know the relevant emergency procedures for your work.

2.4 Privacy and Data Protection

Privacy and data protection laws protect the integrity and confidentiality of a person’s private information. We are

committed to protecting the privacy rights of our employees and everyone with whom we do business. We will only

use personal data for appropriate purposes, and personal data will be processed in accordance with applicable

laws, internal requirements and Equinor’s Binding Corporate Rules.

What this means for you 

●

 Respect everyone’s right to privacy. Only process personal data for legitimate business purposes and in

accordance with applicable requirements.

●

 If your job includes handling personal data, make sure you are sufficiently familiar with our external and

internal requirements for the processing of personal data, and take appropriate training necessary to

perform your tasks.

2.5 Drugs and Alcohol 

Equinor is a drug and alcohol-free workplace. We will not tolerate anyone being under the influence of drugs or

alcohol while at work for Equinor. Limited amounts of alcohol may, however, be consumed when local custom and

occasion make it appropriate, and provided the consumption is not combined with operating machinery, driving or

any other incompatible activity. Tests for drugs and alcohol may be conducted whenever deemed necessary and in

accordance with applicable laws.

What this means for you 

●

 Be conscious about work-related events where alcohol is served and show moderation.

2.6 Purchase of Sexual Services

Purchase of sexual services may be illegal, support human trafficking and pose a security risk. Human trafficking is

a violation of human rights. Regardless of local rules, regulations and customs, Equinor prohibits the purchase of

sexual services when on assignments or business trips for Equinor. This also includes any contribution to the

purchase of such services. 

What this means for you 

●

 Never purchase sexual services when you are on business trips or other assignments, including long-term

assignments.

●

 Never influence others to purchase sexual services and never accept to receive sexual services others

have paid for.

• FR10 Safety and security 

• FR16 People and organisation 

• WR1495 Processing of personal data 

• GL0658 Handle harassment/bullying complaint 

• Binding Corporate Rules 

• GL0473 Guideline for Processing of Personal Data

• Corporate policy CP03 - Security policy

• CP02-Human Rights Policy

3 Conducting our operations 

3.1 Anti-Corruption

Corruption undermines legitimate business activities, distorts competition, ruins reputations and exposes

companies and individuals to risk. We have zero tolerance for corruption in any form, including bribery,

facilitation payments and trading in influence. We will comply with all applicable anti-corruption laws and

regulations and take active steps to ensure that corruption does not occur in relation to Equinor’s business

activities.

Transparency is vital in the combat of corruption. We are committed to conducting our business activities in an

open and transparent manner, promoting transparency in our industry and supporting efforts to combat

corruption worldwide.

What this means for you 

●

 Never engage in, authorise or tolerate corruption at any time for any reason. 

●

 Never offer or accept an improper advantage. An improper advantage is an advantage that has no

legitimate business purpose and is given to influence the recipient’s decision making.

●

 Payment extorted from you under threat of life, health, safety or illegal detention is allowed and will not

result in any form of retaliation, but you must report the payment immediately.

●

 Know your business partner, follow our integrity due diligence requirements and never engage others to do

something we cannot ethically or legally do ourselves.

●

 Participate in required anti-corruption training and understand the risks you face in your work.

3.2 Conflict of Interest

Equinor respects your right to manage your personal affairs and investments. However, a conflict of interest may

occur when your personal interests and Equinor’s interests are different, and this may interfere with your ability to

make the right decision for Equinor. We expect you to always act in the best interest of Equinor when you are

representing the company. You should avoid situations with actual, potential or perceived conflict of interest. 

What this means for you 

●

 Do not work in connection with any Equinor or Equinor-related transaction, procurement, contract award or

other matter in which you have, or a related party has a financial interest. A related party means your

partner, close relative, or any other person with whom you have close relations. 

●

 The same restriction applies where there are other circumstances that undermine trust in your ability to act

in the best interest of Equinor. 

●

 Ensure you understand what a conflict of interest is, and ensure you have the necessary information to

assess it. Be open, disclose and discuss with your leader any actual, potential or perceived conflict of

interest. The leader will then decide whether any measures should be taken, for instance stepping back

from the situation that caused the conflict of interest.

3.3 Directorships, Secondary Employment

and Ownership Interests 

We expect you to spend your full working day on Equinor matters. Before accepting external directorships,

secondary employment or other material assignments, you must obtain prior written consent from your leader’s

leader or, for employees reporting directly to senior vice president level, or above, your leader. Volunteer work and

directorships in non-commercial entities held in a private capacity, do not require prior written consent. Approved

directorships shall be registered in relevant personnel data systems, be kept updated and verified once a year.

Directorships in Equinor subsidiaries or when representing Equinor in non-controlled companies do not require

registration.

If you hold directorships on behalf of Equinor, you are not entitled to board remuneration, but if you hold

directorships where you are not representing Equinor, you may retain any remuneration paid. Elected employee

representatives on the board of Equinor ASA may receive the remuneration decided by the corporate assembly.

The CEO, executive vice presidents and senior vice presidents and employee representatives on the board of

Equinor ASA shall register their direct ownership interests in other companies. This information must be kept

updated and verified once a year. It is not necessary to register shares in securities funds or shares in Equinor ASA.

Furthermore, persons in these groups cannot hold ownership interests, or options to ownership interests, directly or

indirectly, in any company that does or seeks to do business with Equinor if they can exert influence on business

decisions related to such company. The same applies to companies that are competitors to Equinor. This prohibition

does not apply to ownership interests in securities funds or shares in Equinor ASA. 

What this means for you 

●

 Ensure you have the required approval before accepting an external directorship, secondary employment, or

other material assignments.

●

 Ensure that registered information regarding directorships and ownership interests is kept updated.

●

 Note the special prohibition of ownership interests in other companies for certain employees.

3.4 International Trade Restrictions

Countries can impose various economic sanctions restrictions targeting business dealings with specific countries,

economic sectors, entities or individuals of concern. Export controls on the export or in-country transfer of certain

restricted items, technology and software are also common. We will comply with all applicable economic sanctions

as well as export and import control laws. We will assess whether government authorisation is required before

engaging in activities involving restricted items, sanctioned parties or countries and will obtain and comply with all

required authorisations. 

What this means for you 

●

 Screen your business partners, suppliers and other parties (including any ownership of the same) against

relevant restricted parties’ lists.   

●

 Obtain and comply with necessary governmental licences where cross-border export or import activity

involves restricted items, technology or software. 

●

 Be mindful that both sanctions and export control regulations are complex and subject to frequent changes.

Stay updated on the rules applicable to your business activity.

●

 Seek advice from the legal department if asked to deal with a sanctioned party, market or country.

3.5 Anti-Money Laundering and 

 Facilitation of Tax Evasion

Money laundering is illegal and supports other criminal activities, including drug trafficking, terrorism, corruption,

human rights violations and tax evasion. Money laundering is the processes of disguising the proceeds of crime in

order to hide its illegal origins or otherwise dealing with the proceeds of crime. Criminal proceeds include not only

money, but all forms of assets, real estate and intangible property that are derived from criminal activity. We will

comply with all applicable anti-money laundering laws.

Tax evasion is an illegal practice where a person or entity evades paying their actual tax liability. We do not tolerate

the facilitation of tax evasion by persons who act for or on behalf of Equinor.

What this means for you 

●

 Be attentive to unusual payments, invoicing and banking arrangement as well as unusual tax status of

suppliers.

●

 Seek advice from the legal department if you need a better understanding of money laundering or tax

evasion and how to mitigate such risk to Equinor.

●

 Know your business partners and make sure you follow our integrity due diligence requirements.

3.6 Financial and Business Records and

Reporting 

Recording and reporting financial or non-financial information completely, accurately and objectively are essential for

Equinor’s credibility and reputation. It is also a prerequisite for meeting legal and regulatory obligations and reporting

standards. We are committed to transparency and accuracy in all our dealings, and we will provide full, fair, accurate

and understandable disclosures in our financial and non-financial reports, in documents filed with regulatory authorities

and in other public communication. 

What this means for you 

●

 The data and information you enter in our records must be accurate, complete, and reliable. This includes

financial and non- financial information for both internal and external use.

●

 Any accounting information you provide must be complete, accurate, valid, and recorded in accordance with

applicable laws, relevant accounting and reporting standards and the Equinor accounting manual. 

●

 Make sure you are familiar with and comply with internal control over financial reporting requirements

relevant to your work.

●

 Never enter false, misleading, or artificial entries in our records and reports. Any such intentional act may

be treated as fraud.

●

 The highest standard of care should always be exercised when recording and reporting financial or non-

financial information.

●

 If you suspect or become aware of any indications of fraud, improper financial business records and

reporting or allegations of such, you must report it to your leader or the Ethics Helpline immediately. 

3.7 Property and Assets

We trust you with Equinor’s assets so that you can effectively do your work. You are responsible for safeguarding

those assets against loss, theft, and misuse. Equinor’s assets include facilities, equipment, IT solutions and IT

equipment, information, intangible property rights and financial assets. We will not tolerate any misuse of our assets or

work processes for personal benefit. 

What this means for you 

●

 Any use of Equinor’s assets for purposes not directly related to our business, unless specifically provided

for in this Code, requires permission from your leader. 

●

 Ensure that documentation used to obtain property or payments from the company is accurate and

complete. This includes time sheets, invoices, benefit claims and travel and expense reimbursement reports

and underlying documentation. Inaccurate or unsubstantiated records may be treated as fraud. 

●

 As a leader you must ensure proper control before you approve any time sheets, invoices, benefit claims

and travel and expense reimbursement reports and underlying documentation for people in your team.

3.8 IT Solutions and IT Equipment

Our IT solutions and IT equipment shall be used for business purposes. Information produced and stored on our

authorized IT solutions and IT equipment is Equinor’s property and may be accessed in accordance with applicable

law. 

Cyberattacks and malicious activities are a continuous threat to Equinor, and the use of our authorized IT solutions

and IT equipment is monitored to detect such risk. This includes blocking access to inappropriate web sites and

interception of any information transmitted by or stored on our IT solutions. 

What this means for you 

●

 Handle and archive documents according to Equinor’s information management requirements and security

classification system. 

●

 Never use our IT solutions or IT equipment to perform illegal or unethical activities, including downloading,

streaming, or sharing of offensive material. 

●

 Respect computer software copyrights and comply with the terms and conditions of software licences.

●

 Limited private use of our IT solutions and IT equipment is permitted, but such use should be kept to a

minimum and have no adverse effect on cost, IT security or productivity. This includes private use of social

media. 

●

 You must be vigilant of cyberattacks and malicious activities, such as phishing, and immediately report any

incidents.

3.9 Information Management and

Confidentiality

During the course of business, we gain and produce information that is vital to our financial and business integrity.

Such information may, however, also be valuable for competitors and others. We will protect information created by

us, or given to us, to ensure appropriate confidentiality and integrity. It is important to share information across the

organisation to ensure collaboration, efficiency and experience transfer, but information transfer and access must

take place in accordance with our security classification system for information management. 

What this means for you 

●

 Make sure you are familiar with and comply with our information management and security classification

system when handling company information. 

●

 Do not use Equinor’s information acquired through your work for personal advantage or for the purpose of

competing with Equinor.

●

 You have a duty of confidentiality, which applies even after your employment or assignment with Equinor has

ended.

3.10 Inside Information

Equinor supports fair and open securities markets wherever we operate. You may become aware of information

about Equinor or other companies that is not publicly available. Such information may constitute inside information.

Inside information is precise information likely to have a significant effect on the price of securities and which is not

publicly available or commonly known to the market. If you are in possession of inside information, even if acquired

incidentally, you have a legal duty of confidentiality and due care of handling to prevent such information from

coming into the possession of unauthorised persons. Any use of inside information about Equinor or other publicly

traded companies for personal gain is prohibited.

Certain persons, such as members of the Board of Directors and Corporate Executive Committee, are considered

primary insiders. Additional restrictions apply for primary insiders.

What this means for you 

●

 Never buy or sell Equinor’s or other companies’ shares or other securities, or provide advice to others’

investment decisions, when you have access to inside information.

●

 Holders of inside information must treat this confidentially and can only pass such information to individuals

who need it in their work for Equinor based on authorisation from the information owner. 

●

 Holders of inside information relevant for the Equinor share price must be listed in Equinor’s insider listing

system. 

●

 The restriction on buying Equinor shares when you hold inside information does not prevent you from

participating in our share savings program.

• FR14 Finance and control 

• WR0158 Manage data and information

• WR2893 IT Rules

• WR1366 Accounting manual 

• WR1921 Primary insiders 

• WR2305 Handling of Inside Information related to commodities

• WR2401 Inside information 

• WR2988 Integrity due diligence

• GL0358 Legal recommendations for compliance- selected sanctions

• GL0548 Equinor Board of directors handbook 

• FR19 Legal and compliance

• Anti-corruption compliance manual 

• Anti-Corruption Compliance Program

• Sanctions lists on the integrity due diligence portal

4 Relating to our business partners 

4.1 Suppliers and Business Partners

Business relationships based on trust and transparency are vital to our business. Our suppliers and business

partners are essential to our ability to do business but can also cause or contribute to harm people and expose us

to reputational, operational and legal risk. We expect our suppliers and business partners to comply with applicable

laws, respect internationally recognised human rights and adhere to ethical standards which are consistent with our

ethical requirements when working for or together with us. We seek to work with others who share our commitment

to ethics and compliance, and we manage risk through in-depth knowledge of our suppliers, business partners and

markets. Equinor will not voluntarily enter into partnerships with anonymously owned companies.

What this means for you 

●

 Before you establish or amend any business relationship, you must follow our procedures for integrity due

diligence and human rights due diligence. 

●

 Communicate and follow-up regularly and clearly our expectations to our suppliers and business partners.

●

 Report any misconduct by a supplier or business partner to your leader or any of the other reporting

channels listed in the Code.

4.2 Intermediaries

Intermediaries are a particular type of business partner and include agents, consultants, lobbyists and others who

act as a link between Equinor and others. The use of intermediaries may pose a particular risk to us, and we

therefore have additional requirements for hiring intermediaries. It is mandatory to perform integrity due diligence on

all intermediaries. The agreed compensation must be proportionate to the service rendered and only paid against

satisfactory documentation of work performed, which must be regularly monitored. The agreement with the

intermediary must be made in writing, describe the true relationship with Equinor and include an obligation to follow

the Code. 

What this means for you 

●

 Any intermediary you plan to hire must be subject to integrity due diligence. 

●

 Monitor regularly the work performed by the intermediary to ensure it is in line with the Code.

4.3 Fair Competition 

We believe in the benefits of competition, and Equinor will always compete in a fair and ethically justifiable manner.

We will comply with applicable competition and antitrust laws. We will not engage in or tolerate anyone who

engages in anti-competitive behaviour, such as price fixing, bid rigging, market sharing or abuse of market power.

Collaboration with other companies must not have an anti-competitive purpose or effect. It may also be a violation

of competition and antitrust rules to receive or share non-public commercially sensitive information with actual or

potential competitors. Commercially sensitive information includes information which may reduce uncertainty about

future market conduct, such as prices, competitive bids, commercial strategies, costs, customers, and suppliers. 

What this means for you 

●

 Do not enter into anti-competitive agreements or engage in anti-competitive conduct, such as agreeing with

competitors to fix prices or to allocate markets by territory, by products or by customers.

●

 Be vigilant of situations where non-public commercially sensitive information may be exchanged and speak

out against disclosure of information by others to you. Never share such information with competitors.

●

 Competition laws are complex and often require a detailed assessment of facts. If you are in doubt, seek

advice from the legal department.

●

 Participate in required competition and antitrust compliance training.

4.4 Gifts, Hospitality and Expenses 

Relationships with our business partners can be built and strengthened through legitimate networking and social

interaction. However, giving or accepting gifts and hospitality may be regarded as corruption in certain situations,

and we have strict limits for when we allow the giving or acceptance of gifts and hospitality.

As a general rule, we do not offer or accept gifts, except for promotional items of minimal value. In a situation where

it would clearly give offence to refuse, the gift may be accepted if it is of reasonable value and handed over to

Equinor immediately. We only offer or accept hospitality where there is a clear business reason for Equinor to

participate and the costs involved are reasonable. We will always pay our own costs related to travel,

accommodation and other related expenses. Except as otherwise stated in the Code, we do not pay travel,

accommodation and other related expenses for others. 

What this means for you 

●

 Never offer or accept gifts, except for promotional items of minimal value.

●

 Before accepting or offering hospitality, ensure that it is in line with our requirements. Written approval from

your leader is required unless the hospitality clearly is acceptable. 

●

 Ask yourself how the acceptance or offer would be perceived by others and never offer or accept anything

that is or could be perceived as an improper advantage.

●

 Ensure that all acceptance and offering of hospitality are open, transparent and properly documented.

●

 • Corporate policy CP02- Human rights policy

●

 • WR1837 Inspections by authorities 

●

 • WR2447 Competition law compliance 

●

 • WR2452 Joint venture management related to anti-corruption compliance 

●

 • WR2988 Integrity due diligence 

●

 • WR1803 Management of social investment

●

 • GL0349 Guidance on anti-corruption for non Equinor operated joint ventures

●

 • GL0754 Guidance on partnerships with anonymously owned companies

●

 • GL0537 Offering and accepting gifts, hospitality and expenses 

●

 • GL0782 Compliance Guideline on Social Investments

●

 • Integrity due diligence portal 

●

 • Competition compliance manual

5 Communities and Environment

5.1 Local Stakeholder Engagement 

Stakeholder engagement is a central element of our commitment to create lasting local value. 

Timely and meaningful engagement with potentially affected stakeholders, including through appropriate and effective

grievance mechanisms, is a central element of our commitment to assess actual and potential human rights impacts

linked to our activities or business relationships. Where needed, we aim to take appropriate and mitigating actions.

Where we have caused or contributed to adverse human rights impacts, we will provide or cooperate in providing

appropriate remediation.

In our engagement and dialogue with all stakeholders we seek to understand their expectations and explore

opportunities for mutual benefits. Solutions identified must be relevant to local conditions and our business needs, and

comply with our values, policies and local regulations. Our contribution to communities may include direct and indirect

employment, procurement of goods and services, infrastructure development and competence building as well as

social investments. 

What this means for you 

●

 Familiarise yourself with our human rights policy and report any potential or actual negative human rights

impact related to our operations or those of our business partners. 

●

 Through human rights due diligence, systematically assess and address the impact our activities may have

on stakeholders and take this into account when making business decisions, including in relation to their

use of land, water and other natural resources. 

●

 When seeking to apply effective prevention and mitigation actions, ensure that they are addressing potential

impacts fairly and without discriminating to any affected members of the local community. 

●

 Be particularly attentive to those most vulnerable to adverse impacts, including women, children and

indigenous peoples. 

●

 Actively identify opportunities related to our activities that can contribute to local value creation through local

employment, procurement and capacity development. 

●

 Ensure that social contributions are made in compliance with our anti-corruption requirements.

5.2 Environment 

We systematically manage our environmental aspects in accordance with good international practices and

principles and have to comply with applicable environmental laws and regulations. Recognising that our activities

may have impacts on the environment, we apply a precautionary approach and the principle of continual

improvement of our environmental performance, aiming to protect nature and support nature conservation and

restoration initiatives. We work actively to limit greenhouse gas emissions from our activities. 

What this means for you 

●

 Ensure that the impacts our activities have or may have on the environment are assessed and

communicated.

●

 Ensure that relevant measures are taken into account when making business decisions, including

application of the mitigation hierarchy (to avoid, minimise, restore and offset potential significant direct

impacts in our projects), and the use of environmentally friendly technologies. 

●

 Contribute actively to efficient use of resources, carbon efficient operations and mitigation of negative

impacts and enhancement of positive impacts on the natural environment. 

●

 Follow up and evaluate results and contribute to continual improvement.

5.3 Public Communication 

We believe that open, honest and accurate communication is essential to our integrity and business success. We

will communicate about Equinor in a consistent manner, and only authorised persons may talk to the media,

members of the investment community or make statements on Equinor’s behalf on social media. Any private use of

social media must not breach confidentiality obligations and should not compromise Equinor’s reputation or

business interests. 

What this means for you 

●

 Do not speak on Equinor’s behalf unless authorised to do so. Enquiries from the media shall be directed to

corporate communication. 

●

 If you participate in social media, use good judgement and show respect towards your colleagues, business

partners and communities. Be vigilant that participating in social media may represent a security risk.

5.4 Public Affairs 

We will make Equinor’s position known on important industry matters through proactive engagement with

government policy makers and other stakeholders, such as the media, civil society and international institutions.

However, we will not make gifts, donations or otherwise support political parties or individual politicians. We may

nevertheless be members of interest organisations relevant for our industry that support political parties or certain

political issues. Any hiring of lobbyists will be in accordance with applicable law and subject to full disclosure to any

external party they wish to influence that the lobbyist represents Equinor. 

What this means for you 

●

 Do not use company funds or resources to support any political candidates or party. Never use your

position in Equinor to try to influence any person to make political contributions.

●

 Ensure that all contracts with lobbyists impose an obligation to disclose to any external party they wish to

influence that the lobbyist represents Equinor.

●

 If you choose to participate in political activities or give any public contributions, this must be personal and

not linked to Equinor.

.

5.5 Public Officials 

In our business operations or public affairs activities, we often interact with public officials. Many countries have

rules regarding accepted conduct when dealing with public officials, such as prohibiting giving anything of value. We

will never offer or authorise anything of value or payments to public officials unless specifically provided for in the

Code. We can, however, cover the reasonable and legitimate travel, accommodation and other related travel

expenses of public officials when they are related to the promotion or demonstration of our products or services or

the execution of a contract with a government. 

What this means for you 

●

 Take particular care when interacting with public officials. 

●

 Never offer or agree to pay travel or accommodation for any public official unless a hosting application has

been completed and properly approved by the Chief Ethics and Compliance Officer and the relevant EVP.

• Corporate policy CP02- Human rights policy

• FR11 Sustainability 

• FR13 Communication 

• WR1803 Management of social investment 

• WR2297 The rights of indigenous and tribal people 

• WR2614 Community grievance mechanisms 

• WR9623 Human Rights Due Diligence

• GL0626 Community engagement guidelines 

• GL0782 Compliance Guideline on Social Investments

• Hosting form for public officials 

• Social Media Guidelines

• Equinor Biodiversity position

EX-12

I, Anders Opedal, certify that: 

1.

 I have reviewed this Annual report on Form 20-F of Equinor ASA; 

2.

 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report; 

3.

 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods

presented in this report; 

4.

 The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have: 

(a)

 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in

which this report is being prepared; 

(b)

 Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles; 

(c)

 Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered

by this report based on such evaluation; and 

(d)

 Disclosed in this report any change in the company’s internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company’s internal control over financial reporting; and 

5.

 The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons

performing the equivalent functions): 

(a)

 All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and

report financial information; and 

(b)

 Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company’s internal control over financial reporting. 

Date: 21 March 2024 

By: /s/ 

Anders Opedal 

Name: Anders Opedal 

Title: President and Chief Executive Officer 

EX-12

I, Torgrim Reitan, certify that: 

1.

 I have reviewed this Annual report on Form 20-F of Equinor ASA; 

2.

 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report; 

3.

 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods

presented in this report; 

4.

 The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have: 

(a)

 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in

which this report is being prepared; 

(b)

 Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles; 

(c)

 Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered

by this report based on such evaluation; and 

(d)

 Disclosed in this report any change in the company’s internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company’s internal control over financial reporting; and 

5.

 The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons

performing the equivalent functions): 

(a)

 All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and

report financial information; and 

(b)

 Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company’s internal control over financial reporting. 

Date: 21 March 2024

By: /s/ 

Torgrim Reitan 

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer 

EX-13

Certification 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) 

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United

States Code), the undersigned officer of Equinor ASA, a company incorporated under the laws of Norway (the “Company”), hereby

certifies, to such officer’s knowledge, that: 

The Annual Report on Form 20-F for the year ended 31 December 2023 of the Company (the “Report”) fully complies with the

requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and information contained in the Report

fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Date: 21 March 2024

By: /s/ 

Anders Opedal 

Name: Anders Opedal

Title: President and Chief Executive Officer 

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and

(b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure

document. 

A signed original of this written statement required by section 906 has been provided to the Company and will be retained by the

Company and furnished to the Securities and Exchange Commission or its staff upon request. 

EX-13

Certification 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United

States Code), the undersigned officer of Equinor ASA, a company incorporated under the laws of Norway (the “Company”), hereby

certifies, to such officer’s knowledge, that: 

The Annual Report on Form 20-F for the year ended 31 December 2023 of the Company (the “Report”) fully complies with the

requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and information contained in the Report

fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Date: 21 March 2024 

By: /s/ 

Torgrim Reitan 

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer 

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and

(b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure

document. 

A signed original of this written statement required by section 906 has been provided to the Company and will be retained by the

Company and furnished to the Securities and Exchange Commission or its staff upon request. 

EX-15

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements: 

(1)

 Registration Statement (Form F-3 No. 333-271647) of Equinor ASA,

(2)

 Registration Statement (Form F-3 No. 333-271647-01) of Equinor US Capital LLC,

(3)

 Registration Statement (Form F-3 No. 333-271647-02) of Equinor Energy AS, and

(4)

 Registration Statement (Form S-8 No. 333-262601) pertaining to the Employee Share Purchase Plan of

Equinor US Holdings Inc

of our reports dated 12 March 2024, with respect to the consolidated financial statements of Equinor ASA and the

effectiveness of internal control over financial reporting of Equinor ASA included in this Annual Report (Form 20-F)

of Equinor ASA for the year ended 31 December 2023.

/s/ Ernst & Young AS

Stavanger, Norway

21 March 2024

EX-15

DeGolyer and MacNaughton

5001 Spring Valley Road

Suite 800 Eas

t

Dallas, Texas 75244

February 27, 2024

Equinor ASA

Forusbeen 50

N-4035 Stavanger

Norway

Ladies and Gentlemen:

We hereby consent to the references to DeGolyer and MacNaughton contained

in the section entitled “Operational Performance; Proved Oil and Gas Reserves;

Preparation of reserves estimates; DeGolyer and MacNaughton report” of the Exhibit

15.5 Oil and Gas Reserves Report to Form 20-F for the year ended December 31,

2023, of Equinor ASA (the “Form 20-F”), to the inclusion of our report of third party

dated February 21, 2024, concerning our independent evaluation, as of December 31,

2023, of certain properties in which Equinor ASA has represented it holds an interest

(our “Report of Third Party”), which is included as an exhibit to the Form 20-F, and to

the incorporation by reference thereof of our Report of Third Party in the Registration

Statements on Form S-8 (File Nos. 333-121382, 333-168426, and 333-262601)

pertaining to the Equinor US Holdings Inc. Employee Share Purchase Plan and in the

Registration Statement on Form F-3 (File No. 333-271647) of Equinor ASA, Equinor

Energy AS, and Equinor US Capital LLC.

Very truly yours,

/s/ DeGolyer and MacNaughton

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-

716

EX-15

DeGolyer and MacNaughton

5001 Spring Valley Road

Suite 800 Eas

t

Dallas, Texas 75244

February 21, 2024

Equinor ASA

Forusbeen 50

N-4035 Stavanger

Norway

Ladies and Gentlemen:

Pursuant to your request, this report of third party presents an independent

evaluation, as of December 31, 2023, of the estimated net proved oil, condensate, liquefied

petroleum gas (LPG), and sales gas reserves of certain properties (Table 1) in which Equinor

ASA (Equinor) has represented it holds an interest. This evaluation was completed on

February 21, 2024. Equinor has represented that these properties account for 100 percent, on

a net equivalent barrel basis, of Equinor’s net proved reserves as of December 31, 2023, and

that Equinor’s estimates of net proved reserves have been prepared in accordance with the

reserves definitions of Rules 4–10(a)

(1)–(32) of Regulation S–X of the United States Securities and Exchange Commission (SEC).

It is our opinion that the procedures and methodologies employed by Equinor for the

preparation of its proved reserves estimates as of December 31, 2023, comply with the

current requirements of the SEC. We have reviewed information provided to us by Equinor

that it represents to be Equinor’s estimates of the net reserves, as of December 31, 2023, for

the same properties as those which we have independently evaluated. This report was

prepared in accordance with guidelines specified in Item 1202 (a)(8) of Regulation S–K and is

to be used for inclusion in certain SEC filings by Equinor .

Reserves estimated herein are expressed as net reserves as represented by Equinor

and as estimated by DeGolyer and MacNaughton. Gross reserves are defined as the total

estimated petroleum remaining to be produced from these properties after December 31,

2023. Net reserves are defined as that portion of the gross reserves attributable to the

interests held by Equinor after deducting all interests held by others.

2

DeGolyer and MacNaughton

Estimates of reserves should be regarded only as estimates that may change as

further production history and additional information become available. Not only are such

estimates based on that information which is currently available, but such estimates are also

subject to the uncertainties inherent in the application of judgmental factors in interpreting

such information.

Information used in the preparation of this report was obtained from Equinor. In the

preparation of this report we have relied, without independent verification, upon information

furnished by Equinor with respect to the property interests being evaluated, production from

such properties, current costs of operation and development, current prices for production,

agreements relating to current and future operations and sale of production, and various other

information and data that were accepted as represented. A field examination was not

considered necessary for the purposes of this report.

Definition of Reserves

Petroleum reserves estimated by Equinor and by us included in this report are

classified as proved. Only proved reserves have been evaluated for this report. Reserves

classifications used by Equinor and by us in this report are in accordance with the reserves

definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC. Reserves are judged to

be economically producible in future years from known reservoirs under existing economic

and operating conditions and assuming continuation of current regulatory practices using

conventional production methods and equipment. In the analyses of production-decline

curves, reserves were estimated only to the limit of economic rates of production under

existing economic and operating conditions using prices and costs consistent with the

effective date of this report, including consideration of changes in existing prices provided

only by contractual arrangements but not including escalations based upon future conditions.

The petroleum reserves are classified as follows:

Proved oil and gas reserves

 – 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.

(i) The area of the reservoir considered as proved includes:

3

DeGolyer and MacNaughton

(A) The area identified by drilling and limited by fluid contacts, if any,

and (B) Adjacent undrilled portions of the reservoir that can, with

reasonable certainty, be judged to be continuous with it and to

contain economically producible oil or gas on the basis of available

geoscience and engineering data.

(ii) In the absence of data on fluid contacts, proved quantities in a

reservoir are limited by the lowest known hydrocarbons (LKH) as

seen in a well penetration unless geoscience, engineering, or

performance data and reliable technology establishes a lower contact

with reasonable certainty.

(iii) Where direct observation from well penetrations has defined a

highest known oil (HKO) elevation and the potential exists for an

associated gas cap, proved oil reserves may be assigned in the

structurally higher portions of the reservoir only if geoscience,

engineering, or performance data and reliable technology establish

the higher contact with reasonable certainty.

(iv) Reserves which can be produced economically through

application of improved recovery techniques (including, but not

limited to, fluid injection) are included in the proved classification

when:

(A) Successful testing by a pilot project in an area of the reservoir

with properties no more favorable than in the reservoir as a whole,

the operation of an installed program in the reservoir or an analogous

reservoir, or other evidence using reliable technology establishes the

reasonable certainty of the engineering analysis on which the project

or program was based; and (B) The project has been approved for

development by all necessary parties and entities, including

governmental entities.

(v) Existing economic conditions include prices and costs at which

economic producibility from a reservoir is to be determined. The price

shall be the average price during the 12-month period prior to the

ending date of the period covered by the report, determined as an

unweighted arithmetic average of the first-day-of-the-month price for

each month within such period, unless prices are defined by

contractual arrangements, excluding escalations based upon future

conditions.

4

DeGolyer and MacNaughton

Developed oil and gas reserves

 – Developed oil and gas reserves are

reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating

methods or in which the cost of the required equipment is relatively

minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure

operational at the time of the reserves estimate if the extraction is by

means not involving a well.

Undeveloped oil and gas reserves –

Undeveloped oil and gas reserves are

reserves of any category that are expected to be recovered from new wells

on undrilled acreage, or from existing wells where a relatively major

expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those directly

offsetting development spacing areas that are reasonably certain of

production when drilled, unless evidence using reliable technology

exists that establishes reasonable certainty of economic producibility

at greater distances.

(ii) Undrilled locations can be classified as having undeveloped

reserves only if a development plan has been adopted indicating that

they are scheduled to be drilled within five years, unless the specific

circumstances justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped

reserves be attributable to any acreage for which an application of

fluid injection or other improved recovery technique is contemplated,

unless such techniques have been proved effective by actual

projects in the same reservoir or an analogous reservoir, as defined

in [section 210.4–10 (a) Definitions], or by other evidence using

reliable technology establishing reasonable certainty.

Methodology and Procedures

Estimates of reserves were prepared by the use of appropriate geologic, petroleum

engineering, and evaluation principles and techniques that are in accordance with the

reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC and with

practices generally recognized by the petroleum industry as presented in the publication of

the Society of Petroleum Engineers entitled “Standards Pertaining to the Estimating and

5

DeGolyer and MacNaughton

Auditing of Oil and Gas Reserves Information (revised June 2019) Approved by the SPE

Board on 25 June 2019” and in Monograph 3 and Monograph 4 published by the Society of

Petroleum Evaluation Engineers. The method or combination of methods used in the analysis

of each reservoir was tempered by experience with similar reservoirs, stage of development,

quality and completeness of basic data, and production history.

Based on the current stage of field development, production performance, the

development plans provided by Equinor, and analyses of areas offsetting existing wells with

test or production data, reserves were classified as proved. The proved undeveloped

reserves estimates were based on opportunities identified in the plans of development

provided by Equinor.

Equinor has represented that its senior management is committed to the

development plans provided by Equinor and that Equinor has the financial capability to

execute the development plans, including the drilling and completion of wells and the

installation of equipment and facilities.

When applicable, the volumetric method was used to estimate the original oil in place

(OOIP) and original gas in place (OGIP). Structure maps were prepared to delineate each

reservoir, and isopach maps were constructed to estimate reservoir volume. Electrical logs,

radioactivity logs, core analyses, and other available data were used to prepare these maps

as well as to estimate representative values for porosity and water saturation. When adequate

data were available and when circumstances justified, material-balance and other engineering

methods were used to estimate OOIP and OGIP.

For those fields where the volumetric method was applied, estimates of ultimate

recovery were obtained by applying recovery factors to OOIP and OGIP. These recovery

factors were based on consideration of the type of energy inherent in the reservoirs, analyses

of the petroleum, the structural positions of the reservoirs, and the production histories. When

applicable, material -balance and other engineering methods were used to estimate recovery

factors based on an analysis of reservoir performance, including production rate, reservoir

pressure, and reservoir fluid properties.

For depletion-type reservoirs or those whose performance disclosed a reliable decline

in producing-rate trends or other diagnostic characteristics, reserves were estimated by the

application of appropriate decline-curve or other performance relationships. In the analyses of

production decline curves, reserves were estimated only to the limits of economic production

as defined under the Definition of Reserves heading of this report or to the limit of production

licenses as appropriate.

For the evaluation of unconventional reservoirs, a performance-based methodology

integrating the appropriate geology and petroleum engineering data was utilized for this

6

DeGolyer and MacNaughton

report. Performance-based methodology primarily includes (1) production diagnostics, (2)

decline-curve analysis, and (3) model-based analysis (if necessary, based on availability of

data). Production diagnostics include data quality control, identification of flow regimes, and

characteristic well performance behavior. These analyses were performed for all well

groupings (or type-curve areas).

Characteristic rate-decline profiles from diagnostic interpretation were translated to

modified hyperbolic rate profiles, including one or multiple b-exponent values followed by an

exponential decline. Based on the availability of data, model-based analysis may be

integrated to evaluate long-term decline behavior, the effect of dynamic reservoir and fracture

parameters on well performance, and complex situations sourced by the nature of

unconventional reservoirs.

In certain cases, reserves were estimated by incorporating elements of analogy with

similar wells or reservoirs for which more complete data were available.

Data provided by Equinor from wells drilled through October 31, 2023, and made

available for this evaluation were used to prepare the reserves estimates herein. These

reserves estimates were based on consideration of monthly production data available for

certain properties only through October 2023. Estimated cumulative production, as of

December 31, 2023, was deducted from the estimated gross ultimate recovery to estimate

gross reserves. This required that production be estimated for up to 2 months.

Oil and condensate reserves estimated herein are those to be recovered by normal

field separation. LPG reserves estimated herein consist primarily of propane and butane

fractions and are the result of low-temperature plant processing. Oil, condensate, and LPG

reserves included in this report are expressed in millions of barrels (10

6

bbl). In these

estimates, 1 barrel equals 42 United States gallons.

Gas quantities estimated herein are expressed as sales gas. Sales gas is defined as

the total gas to be produced from the reservoirs after reduction for shrinkage from field or

platform handling, separation, processing (including liquid removal), fuel usage, flaring,

reinjection, pipeline losses, and onshore processing measured at the point of delivery. Gas

reserves estimated herein are reported as sales gas. Gas quantities are expressed at a

temperature base of 15.6 degrees Celsius (°C) and at a pressure base of 14.696 pounds per

square inch absolute (psia). Gas quantities included in this report are expressed in billions of

cubic feet (10

9

ft

3

).

Gas quantities are identified by the type of reservoir from which the gas will be

produced. Nonassociated gas is gas at initial reservoir conditions with no oil present in the

reservoir. Associated gas includes both gas-cap gas and solution gas. Gas-cap gas is gas at

initial reservoir conditions and is in communication with an underlying oil zone. Solution gas is

7

DeGolyer and MacNaughton

gas dissolved in oil at initial reservoir conditions. The gas quantities estimated herein consist

of both associated and nonassociated gas reserves.

At the request of Equinor, sales gas reserves estimated herein were converted to oil

equivalent using an energy equivalent factor of 5,612.1 cubic feet of gas per 1 barrel of oil

equivalent.

Primary Economic Assumptions

This report has been prepared using initial prices, expenses, and costs provided by

Equinor in United States dollars (U.S.$). Future prices were estimated using guidelines

established by the SEC and the Financial Accounting Standards Board (FASB). The following

economic assumptions were used for estimating the reserves reported herein:

Oil, Condensate, and LPG Prices

Equinor has represented that the oil, condensate, and LPG prices

were based on a reference price, calculated as the unweighted

arithmetic average of the first-day-of-the-month price for each month

within the 12-month period prior to the end of the reporting period,

unless prices are defined by contractual agreements. Equinor

supplied differentials by field to a Brent oil reference price of

U.S.$83.27 per barrel and the prices were held constant thereafter.

The volume-weighted average prices attributable to the estimated

proved reserves over the lives of the properties were U.S.$80.86 per

barrel of oil, U.S.$72.70 per barrel of condensate, and U.S.$40.27

per barrel of LPG.

Gas Prices

Equinor has also represented that the gas prices were based on a

reference price, calculated as the unweighted arithmetic average of

the first-day-of-the-month price for each month within the 12-month

period prior to the end of the reporting period, unless prices are

defined by contractual agreements. A significant quantity of the gas

sold by Equinor is subject to contract prices, and the range of such

prices is varied. Where appropriate, Equinor supplied differentials by

field to a Title Transfer Facility gas price index reference price of

U.S.$13.30 per million Btu, and the prices were held constant

thereafter. The volume-weighted average price attributable to the

estimated proved reserves over the lives of the properties was

U.S.$11.02 per million Btu of gas.

8

DeGolyer and MacNaughton

Operating Expenses, Capital Costs, and Abandonment Costs

Estimates of operating expenses and future capital expenditures,

provided by Equinor and based on existing economic conditions,

were held constant for the lives of the properties. In certain cases,

future expenditures, either higher or lower than current expenditures,

may have been used because of anticipated changes in operating

conditions, but no general escalation that might result from inflation

was applied. Abandonment costs, which are those costs associated

with the removal of equipment, plugging of wells, and reclamation

and restoration associated with the abandonment, were provided by

Equinor for all properties and were not adjusted for inflation.

Abandonment costs herein are inclusive of costs incurred for existing

wells and facilities as well as those for future development

associated with the proved reserves estimated herein. Operating

expenses, capital costs, and abandonment costs were considered in

determining the economic viability of the undeveloped reserves

estimated herein.

In our opinion, the information relating to estimated proved reserves of oil,

condensate, LPG, and sales gas contained in this report has been prepared in accordance

with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the

Accounting Standards Update 932-235-50,

Extractive Industries – Oil and Gas (Topic 932):

Oil and Gas Reserve Estimation and Disclosures

 (January 2010) of the FASB and Rules 4–

10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and

1203(a) of Regulation S–K of the SEC; provided, however, that estimates of proved

developed and proved undeveloped reserves are not presented at the beginning of the year.

To the extent that the above-enumerated rules, regulations, and statements require

determinations of an accounting or legal nature, we, as engineers, are necessarily unable to

express an opinion as to whether the above-described information is in accordance therewith

or sufficient therefor. 

9

DeGolyer and MacNaughton

Summary of Conclusions

DeGolyer and MacNaughton has performed an independent evaluation of the extent

of the estimated net proved oil, condensate, LPG, and sales gas reserves of certain

properties in which Equinor has represented it holds an interest. Equinor has represented that

its estimated net proved reserves attributable to the evaluated properties were based on the

definition of proved reserves of the SEC. Equinor has represented that its estimates of the net

proved reserves, as of December 31, 2023, attributable to these properties, which represent

100 percent of Equinor’s reserves on a net equivalent basis, are summarized as follows,

expressed in millions of barrels (10

6

bbl), billions of cubic feet (10

9

ft

3

), and millions of barrels of

oil equivalent (10

6

boe):

Estimated by Equinor

Net Proved Reserves as of December 31, 2023

Oil

(10

6

bbl)

Condensate

(10

6

bbl)

LPG

(10

6

bbl)

Sales

Gas

(10

9

ft

3

)

Oil

Equivalent

(10

6

boe)

Total Proved

2,354.55

29.60

251.20

14,470.92

5,213.87

Note: Sales gas reserves estimated herein were converted to oil equivalent using an

energy equivalent factor of 5,612.1 cubic feet of gas per 1 barrel of oil equivalent.

DeGolyer and MacNaughton’s independent estimates of Equinor’s net proved

reserves, as of December 31, 2023, attributable to the evaluated properties were based on

the definition of proved reserves of the SEC and are summarized as follows, expressed in

millions of barrels (10

6

bbl), billions of cubic feet (10

9

ft

3

), and millions of barrels of oil

equivalent (10

6

boe):

Estimated by DeGolyer and MacNaughton

Net Proved Reserves as of December 31, 2023

Oil

(10

6

bbl)

Condensate

(10

6

bbl)

LPG

(10

6

bbl)

Sales

Gas

(10

9

ft

3

)

Oil

Equivalent

(10

6

boe)

Total Proved

2,276.39

170.23

280.27

15,104.76

5,418.35

Note: Sales gas reserves estimated herein were converted to oil equivalent using an

energy equivalent factor of 5,612.1 cubic feet of gas per 1 barrel of oil equivalent.

10

DeGolyer and MacNaughton

Regnald A. Boles, P.E.

 Executive Vice President

DeGolyer and MacNaughton

In comparing the detailed net proved reserves estimates prepared by DeGolyer and

MacNaughton and by Equinor, differences have been found, both positive and negative,

resulting in an aggregate difference of 3.9 percent when compared on the basis of net

equivalent barrels. It is DeGolyer and MacNaughton’s opinion that the net proved reserves

estimates prepared by Equinor on the properties evaluated and referred to above, when

compared on the basis of net equivalent barrels, in aggregate, do not differ materially from

those prepared by DeGolyer and MacNaughton.

While the oil and gas industry may be subject to regulatory changes from time to time

that could affect an industry participant’s ability to recover its reserves, we are not aware of

any such governmental actions which would restrict the recovery of the December 31, 2023,

estimated reserves.

DeGolyer and MacNaughton is an independent petroleum engineering consulting firm

that has been providing petroleum consulting services throughout the world since 1936.

DeGolyer and MacNaughton does not have any financial interest, including stock ownership,

in Equinor. Our fees were not contingent on the results of our evaluation. This report has

been prepared at the request of Equinor. DeGolyer and MacNaughton has used all

assumptions, data, procedures, and methods that it considers necessary and appropriate to

prepare this report.

Submitted,

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-716

DeGolyer and MacNaughton

Regnald A. Boles, P.E.

 Executive Vice President

DeGolyer and MacNaughton

CERTIFICATE of QUALIFICATION

I, Regnald A. Boles, Petroleum Engineer with DeGolyer and MacNaughton,

5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

1.

 That I am an Executive Vice President with DeGolyer and MacNaughton, which firm

did prepare the report of third party addressed to Equinor dated February 21, 2024,

and that I, as Executive Vice President, was responsible for the preparation of this

report of third party.

2.

 That I attended Texas A&M University, and that I graduated with a Bachelor of

Science degree in Petroleum Engineering in the year 1983; that I am a Registered

Professional Engineer in the State of Texas; that I am a member of the Society of

Petroleum Engineers, the Society of Petroleum Evaluation Engineers, and the

European Association of Geoscientists & Engineers; and that I have more than

40 years of experience in oil and gas reservoir studies and evaluations.

DeGolyer and MacNaughton

TABLE 1

Country

Field

Algeria

In Amenas

In Salah

Angola

Acacia

Cravo

Dalia

Girassol

Kizomba A

Kizomba B

Lirio

Marte

Mondo

Orquidea-Violeta

Perpetua-Hortensia

Plutao

Rosa

Saturno

Saxi-Batuque

Venus

Zinia

Argentina

Bandurria Sur

Azerbaijan

Azeri-Chirag-Gunashli

Azeri-Chirag-Gunashli-ACE

Brazil

Bacalhau Concession

Bacalhau PSA

Peregrino

Raia

Roncador

Canada

Hebron

Hibernia

Hibernia Southern Extension

Libya

Mabruk

Murzuq

Nigeria

Agbami

DeGolyer and MacNaughton

TABLE 1

 –

(Continued)

Country

Field

Norway

Aasta Hansteen

Aerfugl North

Alve

Andvare

Asgard

Bauge

Berling

Breidablikk

Byrding

Eirin

Enoch

Fram

Fram H-North

Fulla

Gina Krog

Goliat

Grane

Gudrun

Gullfaks Area

Gungne

Halten East

Hanz

Heidrun

Hyme

Idun North

Irpa

Ivar Aasen

Johan Castberg

Johan Sverdrup

Kristin

Kristin South Phase 1

Kvitebjorn

Martin Linge

Marulk

Mikkel

Morvin

Munin

Njord

Norne

Ormen Lange

Ormen Lange Phase 3

Orn

Oseberg

Oseberg East

Oseberg South

Sigyn

Skarv

Skuld

TABLE 1

–

(Continued)

Country

DeGolyer and MacNaughton

Field

Norway –

(Continued)

Sleipner East

Sleipner West

Snohvit

Snorre

Statfjord

Statfjord East

Statfjord North

Svalin

Sygna

Symra

Tordis

Trestakk

Troll

Tune

Tyrihans

Urd

Utgard

Valemon

Verdande

Vigdis

Visund

Visund South

United Kingdom

Barnacle

Buzzard

Mariner

Rosebank

Statfjord UK

United States

APB North Non-Op

APB Op

APB South Non-Op

Big Foot

Caesar-Tonga

Heidelberg

Jack

Julia

Sparta

St. Malo

Stampede

Tahiti

Titan

Vito

EX-15

Introduction

Equinor 2023 Integrated Annual Report 1

Introduction

Equinor 2023 Integrated Annual Report 2

2023Integrated annual report

Introduction

Equinor 2023 Integrated Annual Report 3

Chapter overview

About us

An introduction to who we are, our business and our strategy.

Group performance

Group financial and sustainability performance, and our research and innovation activities.

Reporting segment performance

Financial, operational and sustainability performance review and strategic update by our reporting segments.

Financial statements

Consolidated financial statements of the Equinor group and parent company financial statements of Equinor ASA.

Additional information

Complementary sections supporting the total report.

Introduction

Equinor 2023 Integrated Annual Report 4

Report overview

Introduction

Reporting segment performance

Report overview

Introduction to segmental reporting

Key figures

3.1

Exploration & Production Norway

Key events

3.2

Exploration & Production International

Message to stakeholders

3.3

Exploration & Production USA

About the report

3.4

Marketing, Midstream and Processing

3.5

Renewables

3.6

Other group

About us

1.1

We are Equinor

Financial statements and notes

1.2

Our history

4.1

Consolidated financial statements of the Equinor group

1.3

Our business

4.2

Parent company financial statements

1.4

The world in which we operate

1.5

Our strategy

Additional information

1.6

Progress on our Energy transition plan 

5.1

Shareholder information

1.7

Our people

5.2

Risk factors

1.8

Engaging with stakeholders

5.3

EU taxonomy

1.9

Governance and risk management

5.4

Additional sustainability information

5.5

Statements on this report incl. independent auditor reports

Group performance

5.6

Use and reconciliation of non-GAAP financial measures

Our 2023 performance

5.7

Terms and abbreviations

2.1

Financial performance

5.8

Forward-looking statements

Strategic financial framework

Our market perspective

Group financial performance

Oil and gas reserves

2.2

Sustainability performance

Sustainability approach

Materiality assessment

Material topics' performance

Always safe

Safe and secure operations

Protecting nature

Respecting human rights

Workforce for the future

High value

Profitable portfolio

Energy provision and value creation for society

Integrity and anti-corruption

Low carbon

Net zero pathway

2.3

Fuelling innovation

Introduction

Equinor 2023 Integrated Annual Report 5

Key figures for 2023

Key figures by segment

* For items marked with an asterisk throughout this report, see section 5.6 Use and reconciliation of non-GAAP financial measures.

Introduction

Equinor 2023 Integrated Annual Report 6

January

Equinor

 and

RWE

 agree MoU to work together to

develop large-scale value chains for low carbon

hydrogen. 

Equinor

 is awarded

26

 new production licences on

the NCS, of which

18

 as operator.

February 

Equinor

makes a new oil discovery close to the Troll

Field in the North Sea. 

March

Equinor

 signs an agreement to acquire

Suncor

Energy UK Limited

. 

EU Commission President

 Ursula von der Leyen,

NATO Secretary General

Jens Stoltenberg and

Norwegian Prime Minister

 Jonas Gahr Støre visit the

Troll A platform in the North Sea.

April 

Production starts from the

Bauge

 subsea field in the

Norwegian Sea. 

May

Equinor

 and partners announce final investment

decision for the

Raia

 project in Brazil. 

Official opening of the

Njord

 field.

The

Johan Sverdrup

 field in the North Sea produces

at increased plateau of 750,000 boe per day. 

June

Equinor

 signs long-term LNG purchase agreement

with

Cheniere

. The deliveries will start in 2027 and is

expected to reach 1.75 million tonnes per year

towards the end of this decade. 

July 

Equinor

 acquires Brazilian onshore renewables

company

Rio Energy

 including selected assets

.

Rio

Energy

is a leading onshore renewables company in

Brazil. 

August

Hywind Tampen,

the world’s largest floating offshore wind farm

officially opens.

Gullfaks

 and

Snorre

 are the first oil and gas fields

in the world to receive power from offshore wind.

Equinor

acquires stake in the

Bayou Bend

 CCS project.

September

Equinor

 and

Itacha

Energy

 take the final investment decision to

progress the

Rosebank

 field on the UK continental shelf.

October

Dogger Bank

, the world’s largest offshore wind farm, produces

power for the first time, marking a major milestone in the

development of the industry and the transition to a cleaner, more

secure energy system.

Breidablikk

in the North Sea comes on stream ahead of schedule. 

Equinor

signs new supply agreement for natural gas with

Germany’s major energy company

RWE

. 

November

Equinor

 makes a commercially viable gas discovery by the

Gina

Krog

 field in the North Sea.

Equinor

enters into agreement to sell its Nigerian interests to

Chappal Energies.

December

Equinor

enters into an agreement to acquire

Shell’s

equity and

operatorship of the

Linnorm

 discovery in the Norwegian Sea.

Equinor

 and Germany’s

SEFE

 enter into long-term gas sales

agreements and pursue large scale hydrogen supplies.

Equinor

and operating co-owner,

Shell Offshore Inc

, reach the

final investment decision for Sparta, an oil field in the US Gulf of

Mexico.

Equinor

signs an agreement to sell its interests in Azerbaijan to

SOCAR

.

Key events 

Introduction

Equinor 2023 Integrated Annual Report 7

Message to stakeholders 

2023 was marked by energy markets becoming more complex and less predictable. Against the backdrop of geopolitical

instability, supply chain bottlenecks and inflation, energy companies face difficult trade-offs in delivering reliable,

affordable and sustainable energy. As the largest energy provider to Europe, Equinor continues to develop its broad

portfolio to contribute to energy security. Our ambition is to be a leading company in the energy transition. 

Safety is our number one priority. Over the years, our safety performance has seen a positive trend. In 2023, the

serious incident frequency per million hours worked (SIF) was 0.4. The number of serious incidents were measured at

the lowest level so far. Tragically, however, we had a fatality on a contracted tanker in Malaysia. We also recorded two

incidents with major accident potential. This is a stark reminder of the importance of our continuous improvement effort

to ensure that all our people return safely home from work. To safeguard our people and to meet increased geopolitical

tensions and security risks, we have further reinforced the protection of assets and operations.

In 2023, we delivered strong financial results, with adjusted earnings* of USD 36 billion before tax. This is the second-

best result in the history of the company, only beaten by the record results of 2022. The delivery of a solid global

operational performance in 2023 resulted in a total liquids and gas production of around 2,100 mboe per day, a 2.1%

growth from 2022. The strong cash flow and competitive capital distribution in the year of USD 17 billion, including share

buy backs, support our goal of creating shareholder value. 

We continued to optimise the oil and gas portfolio, both in Norway and internationally, delivering strong results. Equinor

expects to deliver above 5% production growth for oil and gas from 2023 – 2026 and maintain production of around 2

million barrels per day in 2030. The outlook for Norwegian continental shelf is extended, expecting around 1.2 million

barrels a day in 2035. With major projects under development, the cash flow from the international portfolio is expected

to increase by 50% by 2030. With a robust financial position, we are well positioned for growth and transition.

The year included several milestones for the company. The investment decisions on Raia and Rosebank, and the

increased ownership in the Linnorm discovery, show how we continued to optimise our oil and gas portfolio. The

acquisition of an interest in Bayou Bend and continued maturation of carbon capture and storage projects shows how

we create new market opportunities in low carbon solutions. The long-term gas sales agreement with SEFE (Germany’s

state-owned energy company) is one of the largest gas sales agreements that we have made, demonstrating the long-

term attractiveness of natural gas to Europe. Finally, first power from Dogger Bank, the world’s biggest offshore wind

farm, and the opening of the floating wind farm Hywind Tampen, demonstrate our capabilities to create high value

growth in renewables.

For Equinor’s energy transition, 2023 was marked by a focus on capacity building. Last year, 20% of our investments

were directed towards renewables and low carbon solutions. We are on track to reach our ambition to invest more than

50% in profitable renewables and low carbon solutions by 2030. We also strengthened our renewables portfolio, adding

8 GW to our renewables pipeline. Important milestones were the acquisitions of onshore renewables platforms BeGreen

and Rio Energy. In the short term, we will see an increase in oil and gas production, but the company will alongside

provide a broader energy offering.

Oil and gas will continue to be the foundation for our value creation,

supplying the energy needed and contributing to

energy security. We will continue to reduce emissions from the production of oil and gas and developing a pipeline of

renewable and low carbon projects. With this we will increase both the production of low carbon energy and our

capacity for CO

2

 transport and storage. We are delivering the energy needed today, while developing the energy

solutions for tomorrow.

In 2023, we welcomed over 2,000 new employees to the company, renewing competence and replacing retirement. The

energy transition requires skills and dedication, and we are proud of the strong efforts made across Equinor to deliver

our results. We would also like to thank Equinor’s shareholders for their continued investments and commitment. 

Jon Erik Reinhardsen, Chair of the board

Anders Opedal, President and CEO

Introduction

Equinor 2023 Integrated Annual Report 8

About the report 

Equinor Integrated annual report for 2023

We release for the second time an integrated annual report for the full year of 2023, combining financial and sustainability reporting

into a single report. The integration reflects the increasing importance of sustainability for the company's operational and financial

performance. This format aligns reporting with Taskforce on Climate-related Financial Disclosure (TCFD) and requirements from the

European Union (EU) under the Corporate Sustainability Reporting Directive (CSRD).

This report presents the

●

Board of director’s report (Chapters 0-3 and Chapter 5 excluding sections 5.4, 5.7, 5.8)

●

Consolidated financial statements of the Equinor group (section 4.1)

●

Parent company financial statements of Equinor ASA (section 4.2)

●

The company’s sustainability reporting, prepared in accordance with the Global Reporting Initiative (GRI) Standards.

●

Communication on Progress to the UN Global Compact (advanced reporting level)

●

Statement on equality and anti-discrimination (section 2.2 Workforce for the future, Diversity and inclusion)

Other 2023 Reporting published on equinor.com/reports

●

Remuneration report, incl. 2021 Remuneration policy

●

Oil and gas reserves report

●

Payments to governments

●

Board statement on Corporate governance

●

Annual report on Form 20-F

●

Integrated annual report – Norwegian (XBRL data ESEF)

●

Human rights statement

●

GRI and WEF index

●

UK modern slavery statement

●

Equinor datahub (ESG reporting centre)

This publication constitutes the Statutory annual report in accordance with Norwegian requirements for Equinor ASA for the year

ended 31 December 2023. The Integrated annual report is filed with the Norwegian Register of company accounts. The version

prepared in accordance with the European Single Electronic Format (“ESEF”), filed with Oslo Børs, is the official version of the

Company’s Integrated Annual report, and the ESEF version prevails in case of any questions or conflicts to other versions. Further

information on the boundary conditions for sustainability data can be found in section 5.4 Additional sustainability information.

This report should be read in conjunction with the cautionary statement in section 5.8 Forward-looking statements.

The Integrated annual report may be downloaded from Equinor’s website at www.equinor.com/reports. References in this document

or other documents to Equinor’s website are included as an aid to their location and are not incorporated by reference into this

document.

About us

Equinor 2023 Integrated Annual Report 9

About us

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

We are Equinor

Our history

Our business

The world in which we operate in

Our strategy

Progress on our Energy transition plan

Our people

Engaging with stakeholders

Governance and risk management

About us

Equinor 2023 Integrated Annual Report 10

1.1 We are Equinor

We are an international energy company, headquartered in Stavanger, Norway. Our portfolio encompasses oil and

gas, renewables and low carbon solutions.

Around 23,000

employees in

around 30

countries.

A leading offshore

oil and gas

operator.

The largest single

supplier of energy

to Europe. 

A competitive

developer and

operator in offshore

and onshore

renewables.

Driven by our

purpose

Turning natural resources into energy for people and progress for society

Deliver on our

ambition

To be a leading company in the energy transition

Guided by our

values

●

 Open

●

 Courageous

●

 Collaborative

●

 Caring

About us

Equinor 2023 Integrated Annual Report 11

1.2 Our history 

1970s

A foundation for the future

Equinor, formerly Statoil, was founded on 18 September 1972. Our role was to be the state’s financial, commercial

and industrial instrument in the development of the Norwegian oil and gas resources. In the early years, our

operations were focused on the exploration, development and production of oil and gas assets on the NCS. By 1979,

the Statfjord field was discovered in the North Sea and production commenced. 

1980s

An offshore pioneer

The 1980s was a decade of strong growth, with discoveries and the development of large fields on the NCS. In 1981,

we gained operatorship of the Gullfaks development in the North Sea, as the first Norwegian operator. In 1987

Equinor took over the operatorship of Statfjord. 

1990s

An international player

In the 1990s Equinor grew internationally. We became a major supplier to the European gas market, entering large-

sales contracts for the development and operation of gas transport systems and terminals. In 1992 Equinor entered

an alliance with BP to grow internationally. We expanded manufacturing and marketing across Scandinavia and

established a comprehensive network of service stations. Statoil fuel and retail was later listed and fully divested in

2012.

2000s

An ambitious and innovative operator

In 2001, we were listed on Oslo Børs and New York Stock Exchange under the name Statoil ASA, with the

Norwegian State retaining a 67% stake. In 2007, Statoil merged with Norsk Hydro's oil and gas division. By the end

of the decade, Equinor’s international exploration and partnerships included Angola, Algeria, Brazil, Canada,

Tanzania and onshore and offshore in the US. 

2010s

An eye to the future

The 2010s started with international growth, with acquisitions leading to a large position in the growing production

onshore in the US and the start-up of the Peregrino field in 2011, making us an operator in Brazil. Later, we began

positioning ourselves for the energy transition, announcing a strategy to become a broader energy company in 2017.

At the AGM in 2018 Statoil ASA became Equinor ASA, reflecting the strategic direction. In October 2019 the Johan

Sverdrup field came on stream – powered by electricity from shore, it is one of the world’s most carbon-efficient

fields. 

2020s

A leading company in the energy transition

For the 2020s, Equinor set out its ambition to become a net-zero company by 2050. In 2022, Equinor presented its

Energy transitional plan. This action plan includes the short- and medium-term actions necessary to realise our

ambition of becoming a net zero company. The plan was endorsed with 97.5% shareholder vote at our annual

general meeting in 2022. 

About us

Equinor 2023 Integrated Annual Report 12

1.3

 Our business 

Equinor is present in around 30 countries around the world.

A broader energy offering – our current and future value chains

 We deliver energy to customers through optimising our oil and gas portfolio, high value growth in renewables and new market

opportunities in low carbon solutions. This is a non-exhaustive illustration of Equinor’s current and future value chains. The aim is to

illustrate our business activities that deliver the energy needed today while developing a broader energy offering for tomorrow.

About us

Equinor 2023 Integrated Annual Report 13

Four main areas of operation

Oil and gas

We produce around two million barrels of oil equivalent daily. Two thirds of our equity

production comes from the NCS. Equinor operates around 70% of the total Norwegian oil

and gas production. One third of the equity production comes from outside of Norway, a

share that is expected to increase over the coming years. The Peregrino field in Brazil and

the Mariner field in the UK are our largest operatorships outside of Norway.

Refining, processing

and marketing

Our refinery, processing plants and terminals transform crude oil and natural gas into

everyday commodities such as petrol, diesel, heating oil and consumer-ready natural gas.

The transportation, marketing, and trading of our products maximises value creation. Most of

our output is exported to continental Europe, but we also export to the UK, North America

and Asia.

Equinor also markets and sells the Norwegian State’s share of the natural gas and crude oil

produced on the NCS. Danske Commodities is a leading energy trading house fully owned

by Equinor.

Renewable energy

Equinor currently provides more than one million European homes with renewable power.

We develop some of the world's largest offshore wind farms, located in Europe and the US,

and are in the process of building positions within onshore renewable and energy storage in

the UK, the US, Poland, Denmark and Brazil. By 2030, we aim to have grown our installed

renewables capacity from 2023’s 0.9 GW to 12-16 GW.

Carbon capture and

storage (CCS)

Equinor is pursuing new business models to make carbon capture, transport and storage

commercially viable. We have decades of experience from CCS projects of various sizes,

successfully maturing the technology from the Research & Development (R&D) stage to

operations. We are progressing on the CO

2

 transport and storage projects Northern Lights

and Smeaheia in Norway and Bayou Bend in the US.

A strong competitive position

A technology leader

We have a strong and proven ability to develop and apply new technologies and digital

solutions. As we pursue our ambition to be a leading company in the energy transition,

technology leadership will be a key enabler.

An offshore pioneer

Our fifty years of experience of building the oil and gas industry in Norway represents a

competitive advantage for the company today. Examples of our work include piped gas

infrastructure network, and the world’s first subsea gas compression plant. Equinor is a

global offshore wind major and the world’s leading floating offshore wind developer and

operator.

An early mover and

industry shaper

We seek to create value as an early mover and industry shaper. Examples of our approach

include the development of CCS at the Sleipner field in the 1990s and the testing of floating

offshore wind for the Hywind demo in the 2000s – which have contributed to our latest

technology developments of Northern Lights and Hywind Tampen.

About us

Equinor 2023 Integrated Annual Report 14

Six business areas

Exploration &

Production Norway

(EPN)

EPN is responsible for the exploration and extraction of crude oil, natural gas, and natural

gas liquids on the Norwegian continental shelf. As operator and partner, EPN aims to

manage resources in a safe and efficient manner, creating value for our owners, suppliers,

and Norwegian society. EPN is applying digital technologies and solutions to achieve higher

recovery rates, energy efficiency, lower costs and reduced emissions.

Exploration &

Production International

(EPI)

EPI is responsible for our international exploration and production activities and manages

upstream activities in countries outside of Norway. It has operations across five continents,

covering offshore and onshore exploration and extraction of crude oil, natural gas, and

natural gas liquids, and implements rigorous safety, security and sustainability standards,

alongside technological innovations. EPI intends to build a competitive international portfolio,

including through partner-operated activities.

Renewables (REN)

REN is responsible for Equinor’s offshore and onshore wind farms, solar plants, other forms

of renewable energy, green hydrogen and energy storage. Equinor is evolving into an

integrated power producer with a diversified power portfolio by combining Equinor’s wider

energy expertise, project delivery capabilities, and ability to integrate technological solutions.

Marketing, Midstream. &

Processing (MMP)

MMP aims to maximise value creation in Equinor’s global midstream and downstream

positions. It is responsible for the global marketing and trading of crude oil, petroleum

products, natural gas, electric power and green certificates, including marketing of the

Norwegian State’s natural gas and crude oil resources from the NCS. It also manages

onshore plants and transportation, and the development of value chains to ensure flow

assurance for Equinor’s upstream production. Low-carbon solutions, such as carbon capture

and storage and hydrogen and marketing of these services are also a part of MMP’s remit.

Projects, Drilling &

Procurement (PDP)

PDP is responsible for the global project portfolio, well deliveries, and procurement and

supply chain management across Equinor. It aims to deliver safe, secure, and efficient

project development and well construction, founded on world-class project execution and

technology excellence. PDP utilises innovative technologies, digital solutions, and carbon-

efficient concepts to shape a competitive project portfolio at the forefront of the energy

transition. Value is created through a simplified and standardised fit-for-purpose approach to

project delivery.

Technology, Digital &

Innovation (TDI)

TDI is responsible for developing technology to help Equinor reach its business targets and

ambitions within oil and gas, renewables and low carbon solutions. In addition, TDI is

identifying, testing and scaling new business opportunities supporting the energy transition

through venturing and strategic partnerships. It also has the corporate digital and IT

responsibility for daily operations and for enabling the company to onboard innovative

solutions to digitise and automate operations. Research and collaboration with universities

and external innovation hubs is part of TDI.

About us

Equinor 2023 Integrated Annual Report 15

1.4 The world in which we operate

In recent years, energy markets have become significantly more complex and less predictable. Although society

continues to take major steps forward in the transition towards lower carbon energy sources, recent geopolitical

uncertainty and economic headwinds present new challenges to delivering energy security, energy affordability

and energy sustainability. Solving this “energy trilemma” (see diagram) requires that policy makers, industries and

consumers work together to find the best short and long-term balance between its three dimensions.

As countries look to find the best balance across these three dimensions, they are pushed to make trade-offs

between them. For example, in 2022 and 2023, the war in Ukraine demanded trade-offs from sustainability

towards security and affordability. It is therefore necessary for energy companies, including Equinor, to adapt

accordingly, while pursuing a resilient long-term business strategy on the journey towards a low-carbon future. 

Key considerations include: 

●

A need to respond to a challenging geopolitical situation

The turbulent geopolitical environment including wars in Ukraine and the Middle East, and the increased

tensions between the US and China has led to a somewhat reprioritised focal point in the trilemma. The

weaponisation of energy means that energy projects and assets require additional physical and cybersecurity,

as well as alternative supply sources. The urgency for Europe to rapidly replace Russian oil and gas has

necessitated increased supply from producers in other regions, but also impacted emissions, industrial activity

and economic growth. 

●

A lack of stable decarbonisation policies and commercial frameworks

Whilst the energy transition creates business opportunities for new technologies and value chains, the

supporting policies and frameworks needed to drive large scale investment are lagging in many countries and

regions. Choosing where to invest and how fast to transition therefore pose significant strategic risk which

must be balanced with needs for financial stability, resilience, and shareholder value. 

●

An added incentive to accelerate renewables growth

In parallel with meeting short-term energy supply needs, and to increase energy security, there is an

accelerated drive to transition into renewable energy. This presents long-term business opportunities for

energy companies, but the faster pace may increase reliance on currently non-diversified supply chains with

lower standards of social and environmental practices (e.g. human rights). 

●

An acute cost-of-living crisis could have broad fallout

Energy affordability remains a key concern for many, potentially leading to social unrest and policy

backtracking on decarbonisation ambitions, and poses uncertainties for investors in terms of future political

The energy trilemma

Energy affordability

 – access to affordable energy for

domestic and commercial use

Energy security

– capacity to meet current and future energy

demand while maintaining resilience to system shocks

Energy decarbonisation

 – transition towards lower carbon

energy systems through substituting use of fossil fuels and

increase energy efficiency.

About us

Equinor 2023 Integrated Annual Report 16

intervention. Inflation levels were high in most regions in 2023 and growing activity across the energy industry

means that many sectors are capacity constrained and experiencing supply chain pressures. 

Despite global challenges, Equinor’s strategic beliefs stand firm. The energy industry has a key role to play in

the energy transition, and oil and gas will continue to be needed for while the transition happens on the back

of massive investments.

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Equinor 2023 Integrated Annual Report 17

1.5 Our strategy

The world’s energy systems are in a transition to meet the challenge of climate change. As Equinor transforms, we must strike

the right balance between being a safe and reliable provider of energy and generating cash flow to enable the energy

transition, while supporting our purpose of providing energy and progress to society and continuing to be an attractive

investment for our shareholders. We have a strong financial position and a solid balance sheet. This enables us to seize

opportunities provided by the energy transition. Despite the current turbulence, our strategic beliefs - the foundation of our

strategy - remain firm.

Our strategic beliefs

Creating value through

the energy transition

Net-zero ambition gives

rise to new industry

opportunities

Technological excellence

and innovation will define

winners.

The emerging market

dynamics put margins

under pressure.

Fast, structural changes

can create new localised

business models and

offer new ways for

consumers to access

energy. Oil and gas will

stay in our long-term

energy mix, but only the

most robust upstream

projects can be expected

to be developed, and

carbon considerations will

continue to influence all

our portfolio choices. For

renewables and low

carbon solutions, close

collaboration with

customers, regulators and

industry will be key to

develop new markets and

lay the foundation for

future value creation. 

Climate change and the

energy transition have

become mainstream

concerns for

governments, societies

and investors. Therefore,

functioning markets for

low carbon solutions will

emerge and new

opportunities will arise for

developers of these

solutions. As policy and

regulations shape energy

markets, the social

licence to operate and the

ability to run a profitable

business will be closely

tied to how companies act

on their net-zero

ambitions.

As the magnitude and

speed of change intensify,

technology, digitisation

and innovation will be key

enablers. New ways of

working will evolve. We

will continue to build on

our existing competence

and experience and

develop capabilities in

new areas. A culture of

innovation, learning and

empowerment is needed

to stay competitive. 

Worldwide energy

demand is expected to

grow in the short to

medium term. However,

an abundance of energy

from intermittent sources

could lead to an

increased volatility in

energy prices, exposing

the industry to new

competition and

increasing the pressure

on margins. The energy

landscape is

transforming, with

innovative technologies,

new customers, new

competitors, and new

ways of creating value. 

Our strategic pillars – embedded in everything we do

Always safe

High value

Low carbon

●

 Safeguarding our people

●

 Protecting our assets

●

 Committed to a just

transition

●

 Competitive at all times

●

 Value creation through the

transition

●

 Reducing own emissions

●

 Increasing investments in

renewables and low

carbon solutions

About us

Equinor 2023 Integrated Annual Report 18

How we will get there – our strategic focus areas

Optimised oil & gas portfolio

High-value growth in renewables

New market opportunities in low-

carbon solutions

We expect our oil and gas portfolio

to continue to provide strong free

cash flow for many years. Equinor

will pursue activities where we have

the competence, experience, scale,

and an overall competitive

advantage to secure a leadership

position.

We are focusing on high-value

growth in renewables, both onshore

and offshore, aiming to deliver

above 65 TWh from renewables

power generation by 2035. 

We are actively contributing to

maturing CCS and hydrogen

markets, aiming for a market share

of 25% for storage and 10% for

hydrogen by 2030.

About us

Equinor 2023 Integrated Annual Report 19

Equinor’s 2023 material topics

Our material topics are linked to our strategic pillars: always safe, high value and low carbon. We have identified eight material topics

that we believe are key to delivering on our strategy. In line with the concept of double materiality, these are topics that may

significantly affect our financial or operational performance, or that may significantly impact societies and ecosystems in which we

operate. In section 2.2, we provide more detail on each of these eight topics, their significance for Equinor and our stakeholders, the

way we manage them, the metrics we use to monitor progress, and our performance in 2023.

Profitable portfolio:

 Portfolio development and composition to ensure ongoing profitability with risk assessment and

management of current asset base

.

Energy provision and value creation for society:

Securing energy supply and generating revenue, job opportunities and

economic prosperity through local employment, procurement and taxes.

Integrity and anti-corruption:

 Preventing corruption and ensuring ethical business culture across the company.

Net zero pathway

:

 Reducing greenhouse gas emissions towards net-zero by 2050, including emissions from the use of our

products.

Safe and secure operations:

 Ensuring the health, safety and security of people, environment and assets.

Protecting nature:

Preventing the loss of and enhancing biodiversity in areas where Equinor operates.

Respecting human rights:

Respecting human rights in Equinor’s own activities and supply chain.

Workforce for the future:

Building a future-resilient, diverse and inclusive workplace with equal opportunities and human

capital development, and where people can unlock their potential.

About us

Equinor 2023 Integrated Annual Report 20

1.6 Progress on our Energy transition plan 

Our Energy transition plan, published in 2022, outlines the measures that will allow us to deliver on our

net-zero ambition. It includes ambitions and actions for how to reduce emissions, build a

renewables portfolio and develop low carbon solutions. Each year, we provide an update on the

company’s progress. 

For our Energy transition plan, 2023 was a year of execution and capacity building against a backdrop of

continuing energy security concerns and new market challenges. 

Status on our Energy transition plan in 2023 

On an annual basis, we saw mixed progress towards our main climate ambitions. Operational factors and market

dynamics negatively affected our metrics for emissions reductions and progress toward net zero, while increased

gross capital expenditure* towards renewables and low carbon solutions shows continued progress on the leading

indicator of investment. As we simultaneously deliver on the energy needs of today and work on building the

energy system of the future, it is important to maintain a multiyear perspective. Our transition journey will not be

linear, but the direction is clear. The ambitions in our Energy transition plan remain firm and we remain focused on

delivering on our strategic aim to be a net zero company by 2050.

 

Acting on our emissions 

Our ambition is to reduce emissions from our own operations by 50% by 2030 compared to 2015 levels.

We aim for at least 90% of this ambition to be realised by absolute emission reductions.

In 2023, our total scope 1 and 2 operated greenhouse gas (GHG) emissions were 11.6 million tonnes CO2e,

which is 30% lower than in base year 2015 and 0.2 million tonnes higher than in 2022. The resumption of the

Hammerfest LNG facility in Norway and the return to normal full-year production at the Peregrino oil field in Brazil

were the main contributors to the increase in operated emissions. 

Notable achievements toward emissions reductions from the operated portfolio included the start-up of Hywind

Tampen, the world's first floating wind installation in the Norwegian North Sea, which supplies energy to the

Gullfaks A and Snorre fields, and the electrification of the Gina Krog field with power from shore. Additionally, the

approval of the Snøhvit Future project by the Norwegian government was a major milestone. The project aims to

fully electrify the Hammerfest LNG facility by 2030, resulting in an approximate annual reduction of 850,000

About us

Equinor 2023 Integrated Annual Report 21

tonnes of CO2 emissions. As outlined in our Energy transition plan, rapid reductions in operated emissions from

our oil and gas activities in Norway depend on the availability of, and access to, electricity supplies. 

In 2023, we maintained our focus on the carbon efficiency of our upstream production. Upstream CO2 intensity

was 6.7kg CO2/boe, which is a slight improvement from the level achieved in 2022 and below our target of 7.0kg

CO2/boe for 2025. We remain on track to achieve our ambition of 6.0kg CO2/boe in 2030. The average methane

intensity of our operated assets held steady at 0.02%, roughly one-tenth of the OGCI (Oil and Gas Climate

Imitative) industry average of 0.2%. 

Key figures

6.7 KG/BOE

CO2 upstream intensity. Scope 1 CO2 emissions, Equinor operated, 100% basis

30 PERCENT

Reduction in scope 1 + 2 operated emissions since 2015

Investing in the transition

We are targeting high-value growth in renewables. Our ambition is that over 50% of our annual gross

capex will be invested in renewables and low carbon solution by 2030, and 30% by 2025, subject to

availability of robust projects.

In 2023 we invested 20% of our gross capex* into renewable energy and low carbon solutions, which is a 50%

increase from the previous year. The majority of these investments were allocated to renewables, with the

remainder allocated to our Northern Lights Carbon Capture and Storage (CCS) project. The figure does not

include investments into abatement projects for the decarbonisation of our oil and gas production. As Equinor

grows and transforms, we expect to invest more to renewables and low carbon solutions, subject to an attractive

sufficient access to opportunities and to deliver profitable growth. 

Our investment strategy paves the way to a broader energy mix for the company. While less than one percent of

the total energy we delivered in 2023 was from renewables and low carbon solutions such as hydrogen, this figure

is estimated to reach between 8-10% in 2030 and between 15-20% in 2035

1

. 

Advancing towards net zero 

Our ambition is to reduce the net carbon intensity (NCI) of the energy we provide by 20% by 2030. This

ambition includes scope 3 emissions from the use of sold products.

In 2023, the NCI of the energy provided by Equinor was 67gCO2e/ MJ, which is a one percentage point increase

compared to 2022 and a 1% decrease compared to the 2019 baseline year. The year-on-year rise is attributable

to an increase in the ratio of oil to gas in our production portfolio as the energy security crisis in Europe stabilised

and the extraordinary increase in demand for Equinor’s gas seen in 2022 subsided. An increase in the overall oil

and gas production from 2,039 thousand barrels of oil equivalent per day (mboe/d) in 2022 to 2,082 (mboe/d) in

2023, resulted in a 3 % increase in absolute scope 3 emissions to 250 million tonnes.

1

 Using a fossil equivalency basis for renewable energy

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Equinor 2023 Integrated Annual Report 22

Key figures

8 GW

Renewables pipeline additions Equinor share, unrisked

9 MTPA

CCS storage volumes added, equity to Equinor

While renewables represented a small fraction of our total energy output in 2023, we made progress in building a

foundation for these sources to play an increasingly important role in our future portfolio as a broad energy

company. In October, we achieved a significant milestone in the UK, with the first power delivery from Dogger

Bank, which is set to become the world's largest offshore wind farm when all phases of the project are complete.

Our acquisition of Rio Energy, a leading onshore renewables company in Brazil, and the closing of the acquisition

of Danish solar company BeGreen, added around 8 GW of capacity to our pipeline in 2023.

In addition to progress on renewables, we saw an increase in the volume of CO2 stored from our operated assets

Snøhvit and Sleipner in 2023 to 0.8 million tonnes, up from 0.5 million tonnes in 2022. Accumulated, Equinor has

stored 27.1 million tonnes of CO2 on the NCS since 1996. We saw two major developments in our CCS portfolio

in 2023. Our acquisition of a 25% stake in Bayou Bend, a major CCS project in the US Gulf Coast with gross

potential storage resources of more than a billion metric tonnes, provides us with an opportunity to engage in the

decarbonisation of a key industrial region and adds 5 million tonnes per annum (mtpa) of transport and storage to

our portfolio. In the UK, Equinor and its partners secured additional CCS storage licenses in the Northern

Endurance Partnership, adding up to 4mtpa to our annual storage capacity in the project, which comprises six

CO2 storage sites in the southern North Sea. These projects will be important contributors to our increased

ambition of 30-50mtpa of transport and CO2 storage by 2035.

About us

Equinor 2023 Integrated Annual Report 23

As deployment of renewables and CCS accelerates in the coming years, we expect to see greater progress in

NCI reductions, with the majority of progress towards the 20% reduction ambition in 2030 expected in the second

half of this decade.

As outlined in our Energy transition plan, the transition will require an approach that takes account of impacts on

our employees, nature, and society. In this respect, 2023 was also a year of capacity building. The launch of our

new renewables organisation in May, aimed at focusing the competence and capacity needed to maximise value

creation in our fastest growing business area, resulted in a 94% increase in the number of colleagues formally

working in renewables, with most reallocated from roles in other parts of the company. On nature, we continued to

expand our activities, including implementation of site-specific inventories of key biodiversity features for 35

existing sites. In 2023, we also continued to integrate human rights practices into the way we work, including

engagement with peers and suppliers to address systemic issues, the development of new internal monitoring

indicators for forced labour in our supply chain, and adoption of global Equinor working requirements for human

rights due diligence.

Relevant information: 

● The energy transition plan 

● Biodiversity position

● Human Rights Policy

● A just energy transition

About us

Equinor 2023 Integrated Annual Report 24

1.7 Our people 

At Equinor, our people are our most valued resource. Every individual makes a difference by contributing their skills, experiences,

ideas, and perspectives to the common goals of delivering reliable energy and reaching net zero by 2050.

Our culture is firmly rooted in a shared understanding that safety is our number one priority. Our values guide us in how we work and

deliver on our goals together. We have clear requirements and expectations towards our employees to ensure that our company

culture continues to develop and thrive.

We work systematically to integrate diversity and inclusion (D&I) in our human resources (HR) processes, from recruitment, career

development, and succession planning to leadership deployment.

Developing our people capabilities

In 2023, we further strengthened our workforce planning process in collaboration with leaders and employee representatives. The

reinforced framework aims to ensure a robust connection between our strategy, business plans, and the development of people’s

capabilities. We continuously address gaps between current and future workforce needs using various tools and new technologies.

Our recruitment strategies comply with statutory requirements for the use of temporary hires.

Focusing on both short-term and long-term development planning, we enable employees to cultivate the necessary skills to meet

present and future objectives. Our ongoing performance development process, based on continuous feedback, allows leaders and

employees to prioritise and align their expectations throughout the year.

Building and utilising our collective competence

Our collective competence is a key enabler for Equinor to deliver on current and future ambitions. Employees have opportunities to

learn and grow through our Equinor university courses, partnerships with top universities for training and research, and our internal job

market. We monitor the participation of all formal learning to secure continuous management focus and a relevant learning portfolio.

Creating a great place to work

In Equinor, everyone is involved in the development of the company. This includes internal cross-functional collaboration, liaising with

union representatives and safety delegates according to local law and practice, and following up on the results from our annual global

people survey (GPS). We respect employees’ rights to organise and to voice their opinions, and we have the same clear expectations

for our suppliers and partners. In 2023, union representatives and safety delegates were involved in discussions on the further

optimisation of our operating model, the hire-in regulations in Norway, and model for career development in the company.

In 2023, we worked further on implementing our flexible work principles. Our continuous goal is to achieve a good balance in

supporting the diverse needs of our people in their daily working lives and ensuring that time and effort are directed to prioritised

activities.

Performance and reward framework

 In Equinor, how we deliver is as important as what we deliver. Our performance and reward framework measures progress and

results, and rewards individual performance in a holistic way, attributing equal weight to business delivery and behaviour. The

performance of the CEO, his direct reports and Equinor’s broader leadership is assessed based on results within a wide range of

behavioral, financial, operational and sustainability topics.

A comprehensive set of performance indicators and monitoring reports are made available to all employees in Equinor’s management

information system. The performing indicators are reported on a regular basis from operational levels to the governing bodies to

ensure transparency in risk and performance management – this is how we keep employees accountable for the development of our

company.

About us

Equinor 2023 Integrated Annual Report 25

1.8 Engaging with stakeholders

Throughout 2023, we regularly engaged with stakeholders, such as governments, regulators, business partners, suppliers and local

communities. Broadly, the aim is to help us build support for policies that align with our strategy, as well as to create value in

collaboration with partners, suppliers and local communities. 

Engaging with policymakers

 

Equinor engages with policymakers to ensure our license to operate, to express our position on important industry issues, and to

promote policies in line with our strategy and our Energy transition plan. We have a dialogue with government through our Chairman,

Chief Executive Officer and other senior leaders – as well as through consultation responses and cross-industry initiatives.

We work

with key government entities to reach common goals in line with our ambitions, promote adequate framework conditions that drive

investments in necessary energy sources and technologies - and deliver projects necessary for the transition. 

 

In Equinor, our political and public affairs team manages relationships with governments and

policymakers. We engage primarily with

decision makers in countries where we have significant operations, such as Norway, Brazil, the UK and the US, as well as with

regional structures like the European Union. These interactions are mainly related to developing competitive, stable and predictable

industry framework conditions, taxes and legislation that affect our activities. We also collaborate on developing new value chains

needed in a low carbon future, such as hydrogen and CCS. 

 

Our public policy work covers a wide territory, including oil and gas, low carbon solutions and renewables. Achieving the necessary

decarbonisation and political will to ensure affordability, and at the same time maintain security of supply will be a key political and

industrial challenge going forward. To achieve our corporate strategic priorities for the energy transition it is important to work with

policymakers in key markets. Further information on our sustainability governance activities can be found in section 2.2 Sustainability

Performance.

Our partners and suppliers

The values we create are to a large extent dependent on our relationships with business partners and suppliers. We believe our

efforts to ensure close collaboration and active engagement has the potential to impact health and safety standards, supplier diversity

and inclusion and promote responsible supply among others. We regularly engage in meetings with our partners to support safe and

efficient operations and drive potential to improve efficiencies. Our suppliers constitute a key part of our value chain, for example in

engineering, construction and installation of plants and platforms. We aim for fair competition and enabling efficient and sustainable

supply chains in support of both their and our own performance. 

Local communities

We believe that we can bring a range of positive benefits to the societies where we operate, when these are pursued in collaboration

and based on good communication with those potentially impacted by our planned or ongoing activities.

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Equinor 2023 Integrated Annual Report 26

1.9 Governance and risk management

Corporate governance

Our corporate governance framework and processes are formed to promote transparency and accountability in decision-making and

day-to-day operations. Good corporate governance is a prerequisite for a sound and sustainable company, and to ensure that we run

our business in a justifiable and profitable manner for the benefit of employees, shareholders, partners, customers and society.

As a public limited liability company with shares listed in Oslo and New York, Equinor adheres to relevant regulations and applicable

corporate governance codes, including the Norwegian Code of Practice for Corporate Governance. 

For a comprehensive account of our corporate governance framework, please refer to the Board statement on corporate governance

report.

Governing bodies

The general meeting

 of shareholders is Equinor’s supreme corporate body. It serves as a democratic and effective forum for

interaction between the company’s shareholders, the board of directors (BoD) and management. At Equinor's AGM on 11 May 2023,

78.02% of the share capital was represented.

The

corporate assembly

is Equinor’s body for supervision of the BoD and the management of the company. They represent a broad

cross-section of the company’s shareholders and stakeholders, and one of their main duties is to elect the company’s BoD. The

corporate assembly consists of 18 members and three observers, of which 12 members are nominated by the nomination committee

and elected by the general meeting, while six members and the observers are elected by and among employees in Equinor ASA or a

subsidiary in Norway. More information on the corporate assembly can be found in the Board statement on corporate governance

report.

The BoD

 has the overriding responsibility for supervising Equinor’s management and operations and establishing control systems.

The work of the BoD is based on its rules of procedures and applicable legislation describing its responsibility, duties and

administrative procedures. This includes a duty to decide the company’s strategy, ensure adequate control of the company’s overall

risk management and to appoint the chief executive officer (CEO). For a more detailed description, see the rules of procedures

available at www.equinor.com/board

The BoD shall consist of nine to eleven board members and as of 31 December 2023 had ten members of which seven were

shareholder representatives and three were employee representatives. Of the board members six are men, four are women and two

About us

Equinor 2023 Integrated Annual Report 27

are non-Norwegians resident outside of Norway. The nomination committee nominates the shareholder-representatives, and all board

members are elected by the corporate assembly. The BoD has determined that, in its judgment, all the shareholder representatives on

the board are considered independent as under Norwegian law.

The BoD has adopted an annual plan for its work which is revised with regular intervals. Recurring items on the board's annual plan

are: safety, security, sustainability and climate, corporate strategy, business plans and targets, quarterly and annual results, annual

reporting, ethics and compliance, management's performance reporting, management leadership assessment and compensation and

succession planning, project status review, people and organisation strategy and priorities, and an annual review of the board's

governing documentation. The board has dedicated strategy and risk sessions twice a year where the corporate executive committee

presents, and they align on the strategy going forward. The board discusses climate change and the energy transition in all ordinary

board meetings either as integral parts of strategy and investment discussions or as separate topics. 

The work of the board is set out in detail in the Board statement on corporate governance report.

The BoD’s three sub-committees act as preparatory bodies:

The audit committee (BAC)

The

 BAC

 acts as a preparatory body for the board in connection with risk management, internal control and financial and

sustainability reporting. In particular, the BAC assists the board in exercising its oversight responsibilities in relation to:

●

The financial reporting process and the integrity of the financial statements

●

The sustainability reporting process and the integrity of the sustainability reporting

●

The company’s internal control, internal audit and risk management systems and practices including the enterprise risk

management framework.

●

The election of and qualifications, independence and oversight of the work of the external auditors

●

Business integrity, including handling of complaints and reports.

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/auditcommittee.

The safety, sustainability, and ethics committee (SSEC)

SSEC

 acts as a preparatory body for the board in connection with reviewing the practices and performance of the company primarily

in matters regarding safety, security, ethics, sustainability and climate.

This includes review of the company’s policies, risk, practices and performance related to

●

 Safety 

●

 Security, including cyber and information security, physical security and personnel security

●

 Climate and Sustainability, including human rights, social responsibility and environment

●

 Code of Conduct

●

 Ethics and anti-corruption Compliance Program

●

 Results of audits, verifications and investigations relevant for the SSEC

●

 Effectiveness of the internal control for safety, security and sustainability matters

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/ssecommittee.

The compensation and executive development committee

 (BCC)

The BCC acts as a preparatory body for the board and assists in matters relating to management compensation and leadership

development.

The BCC gives recommendation to the board in matters relating to principles and framework for

About us

Equinor 2023 Integrated Annual Report 28

●

 Executive rewards

●

 Remuneration strategies and concepts

●

 CEO's contract and terms of employment

●

 Leadership development, assessments and succession planning

BCC also oversees and advises the company's management in its work on Equinor's remuneration strategy and remuneration policies

for senior executives.

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/compensationcommittee.

The BoD considers its composition to be competent with respect to the expertise, capacity and diversity appropriate to attend to the

company's strategy, goals, main challenges, and the common interest of all shareholders. The BoD also deems its composition to

consist of individuals who are willing and able to work as a team, resulting in an efficient and collegiate board.

The BoD develops its knowledge and competence and among others had sessions in the following topics in 2023;

●

 Energy Perspectives and the evolving external context – geopolitics, policy and energy

●

 Low carbon solutions 

●

 Financial deep-dive

●

 Technology deep-dive

●

 Cyber security

Furthermore, external speakers presented to the BoD their view on the energy transition in a geopolitical and a financial context.

Reports from the committees are given on each board meeting to update the board on matters handled by each committee. The BAC

had two competence days with deep-dives into different topics such as data governance, structure for trading mandates, internal

control over financial reporting framework, EU ESRS reporting requirements, material topics for sustainability reporting, and inflation

pressure impact on the portfolio. The SSEC had deep-dives on topics within human rights, compliance, cyber security, net-zero and

safety. The BCC attended a yearly session on development and trends within executive talent market.

The BoD conducts an annual self-evaluation of its work and competence, which generally is externally facilitated. Climate change

capabilities, and the oversight of Equinor’s human rights policy are included as key components in the annual board evaluation. The

evaluation report is discussed in a board meeting and is made available to the nomination committee.

The board members have experience from inter alia oil, gas, renewables, shipping, telecom and Norwegian defense forces.

Equinor ASA has purchased and maintains a Directors and Officers Liability Insurance on behalf of the members of the board of

directors and the CEO. The insurance also covers any employee acting in a managerial capacity and includes controlled subsidiaries.

The insurance policy is issued by a reputable insurer with an appropriate rating.

More information about the BoD can be found in the Board statement on corporate governance report.

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Equinor 2023 Integrated Annual Report 29

Corporate executive committee (CEC)

The president and chief executive officer (CEO) has the overall responsibility for day-to-day operations in Equinor. The CEO appoints

the corporate executive committee, which considers proposals for strategy, goals, financial statements, as well as important

investments prior to submission to the BoD. The purpose of the CEC is to set direction, drive prioritisation and execution, build

capabilities and ensure compliance. The CEC works to safeguard and promote the corporate interests of the company through

developing the management system and securing adequate risk management and control systems. The CEC includes the CEO, the

chief financial officer (CFO), the executive vice presidents of the business areas and the executive vice presidents for Safety, Security

& Sustainability, Legal & Compliance, People & Organisation and Communication.

The CEC ensures proactive management and control of sustainability-related impacts through the safety, security and sustainability

committee which is held on a quarterly basis. Risk, performance, and mitigating actions are key topics for the work in the committee.

Ethical and reputational issues such as anti-corruption are monitored and mitigated through the CEC ethics committee. The ethics

committee meets as needed and at least three times a year. 

In addition, through the corporate risk committee the CEC manages Equinor’s overall risk exposure, and material topics related to

health and safety, human rights, corruption, climate and environment is assessed as part of the overall risk management. The

corporate risk committee functions as an advisory body to the CEO and CFO, and the work of the corporate risk committee is

presented to the CEC on a regular basis.

In 2023, the CEC, as well as the BAC, and the SSEC were involved in the assessment, prioritisation and articulation of Equinor’s

material sustainability topics.

Corporate executive committee (CEC)

Remuneration of BoD

The remuneration of the BoD is decided by the corporate assembly annually, following a recommendation from the nomination

committee. Remuneration for board members is not linked to performance, and board members do not receive any shares or similar

as part of their remuneration. The board members receive an annual fixed fee. Deputy members, who are only elected for employee-

elected board members, receive remuneration per meeting attended. The employee-elected members of the board receive the same

remuneration as the shareholder-elected members.

Remuneration of the corporate executive committee

The BoD is responsible for preparing and implementing a remuneration policy for the members of the corporate executive committee.

The policy is effective for a period of four years, subject to any proposed material changes by the BoD requiring adoption by the

annual general meeting before the four-year term concludes.

The policy shall contribute to attracting and retaining executives and motivate them to drive the success of the company. A key

principle for Equinor’s remuneration policy is moderation. The reward should be competitive, but not market-leading, and aligned with

the markets that the company recruits from, maintaining an overall sustainable cost level. Equinor places a high focus on fostering

alignment between the interests of its executive management and those of its owners and other stakeholders. Variable remuneration

is aimed at driving performance in line with the company’s strategy and securing long-term commitment and retention with the

company.

About us

Equinor 2023 Integrated Annual Report 30

The receipt of variable remuneration depends on individual and company performance and is subject to a holding period requirement

for some elements. Performance-based variable remuneration has been capped in accordance with the relevant Norwegian state

guidelines.

All KPIs and behaviour goals applicable for an executive are weighted equally when setting the individual bonus level. One of the

common KPIs used to decide the annual variable pay (bonus) component of variable pay for all executives is “Upstream C02 intensity:

<= 8 kg/boe”.

In the behaviour part of the assessment there is a common goal to transform own organisation to deliver on our purpose and become

a leading company in the energy transition. 

Executive remuneration policy

The executive remuneration policy which was approved by the 2021 annual general meeting serves as the basis for the 2023

remuneration report. This policy can be found in an appendix to the 2023 remuneration report at equinor.com.

A revised policy was presented for a binding vote and approved at the annual general meeting in 2023. The approved policy came

into effect on 1 January 2024 and is available on Equinor’s website.

Risk management

Enterprise risk management (ERM) relates to managing uncertainties in order to deliver Equinor’s purpose in line with our core values.

Risk, which refers to both threats and opportunities, is assessed as part of strategy selection and managed through execution to

deliver the strategic pillars and objectives throughout the company. The constantly changing internal and external business context

means that risks can emerge and evolve quickly, underpinning the need for well-designed, adaptive and effective risk management

approaches. The current most material enterprise risks and risk factors are described in section 5.2 Risk factors.

Equinor’s ERM framework is integrated across all our business activities with a focus on creating value and avoiding unwanted

incidents. We consider risks in shorter and longer-term perspectives, and across enduring risks, dynamic risks as well as more

immature or emerging risk issues that can impact our business ambitions. Through BAC the BoD oversees the ERM framework and

reviews its effectiveness.

The ERM approach enables risk-informed decisions and risk response in a way that supports delivering value in a sustainable frame.

This means that we consider the overall value upside or downside of risks for Equinor, whilst ensuring we live up to our principles for

avoiding safety, security, sustainability, human rights and business integrity incidents, such as accidents, fraud and corruption. 

In general, risks are managed in the business line as an integral part of employee and manager tasks. The business areas and

corporate functions regularly identify and evaluate risk using established procedures, assess the need for risk-adjusting actions, and

review overall risk management performance. Some risks, such as oil and natural gas price risks and interest and currency risks, are

managed at the corporate level to provide optimal solutions. A holistic corporate risk perspective is also applied in strategy

development, portfolio prioritisation processes, and capital structure discussions. Throughout the year, the CEO and the Board Audit

Committee maintain oversight of the risk management framework, processes, top enterprise risks and the overall risk picture. Areas of

particular risk oversight currently include IT and cyber security, progress on net-zero, low-carbon value proposition, political and

regulatory frameworks, human rights, and capacity and capability constraints.

Equinor’s risk management process is based on ISO 31000 risk management and seeks to ensure that risks are identified, analysed,

evaluated, and appropriately managed. A standardised risk process across Equinor supports consistency and efficiency that informs

key decisions. Risk is integrated into the company’s management information system (IT tool), where it is linked with Equinor’s

purpose, vision and strategy and associated strategic objectives and KPIs. This tool is used to capture risks, follow up risk-adjusting

actions and related assurance activities, and supports a risk-based approach in the context of a three lines model

(https://www.equinorbook.com/brandcenter/en/equinorbook/component/default/82415).

Whilst our approach includes continuous improvement of risk management practices, Equinor has recognised a need to strengthen

resilience to global uncertainty and volatility that affect our business. With support from the CEO, CFO and BAC, Equinor has initiated

focused activities to strengthen a future-fit ERM framework. This includes further development of the corporate risk appetite

framework supported by strengthened governance for executive follow-up of the top enterprise risks.

Equinor risk management can be broadly considered across the following enterprise impact areas. More detail on specific themes is

provided in relevant material topics sections of this report.

About us

Equinor 2023 Integrated Annual Report 31

Strategic and commercial risks:

Equinor needs to navigate uncertainty and manage risk to

deliver value, transition its portfolio, and remain financially

robust through the changing energy context. Climate and

other sustainability-related factors influence many aspects

of our strategy selection and execution. Global, regional

and national political developments can change the

operating environment and economic outcomes. Market

conditions related to supply and demand, technological

change, customer preferences and global economic

conditions can significantly impact company financial

performance. Our ability to deliver value from projects and

operations can be impacted by factors related to partners,

contractors, global supply chains as well as public

stakeholders and regulatory frameworks. Digital and cyber

threats are constantly evolving and can cause major

disruption across our value chains.

Strategic and commercial risk factors:

● Prices and markets

● Hydrocarbon resource base and renewable and low

carbon opportunities

● Climate change and transition to a lower carbon

economy

● International politics and geopolitical change

● Digital and cyber security

● Project delivery and operations

● Joint arrangements and contractors

● Competition and technological innovation

● Ownership and actions by the Norwegian State

● Policies and legislation

● Financial risks, liquidity and capital management

● Trading and commercial supply activities

● Workforce capabilities and organisational change

● Crisis management, business continuity and

insurance coverage

Strategic and commercial risk management

Overall, Equinor manages risk through portfolio selection, robust financial framework, stress-testing and business

planning, investment, and review processes. We take a long-term view of energy supply and demand, ensuring

robustness of our oil and gas portfolio, developing and investing in low carbon businesses of the future whilst seeking to

safeguard shareholder returns.

The company is exposed to oil and gas market price levels. Corporate hedges may be entered into to reduce the cash

flow volatility generated from the price levels risk. Equinor has an insurance-based approach to this hedging, securing

downside protection only while keeping the upside in price exposure open. For the trading business, derivatives risk is

managed through Value at Risk and trader mandates, loss limitation systems and daily monitoring of trading profit and

loss. Equinor’s liquidity framework is based on a forward-looking risk management approach to assure that Equinor’s

strategic liquidity reserve will cover both expected and unexpected cash outflows over the subsequent six months,

including a potential crisis event and significant collateral needs.

Risks related to low carbon solutions, climate change and transition to a lower carbon economy, workforce and

organisation, cyber security, and actions by the Norwegian State are included within top enterprise risks and have direct

follow-up at the executive level. Top enterprise risks are assessed in relation to risk appetite statements that represent

the company’s willingness to take on risk exposure. Actions to manage exposure are implemented and assessed based

on their effectiveness. Risks are reviewed by both the first line (risk owner) and second line (Corporate risk) with regards

to risk management and followed up by the CEC and the BoD.

We recognise the importance of ESG matters in our current and future business, and seek to be open around ESG

matters related to our activities through recognised ESG reporting methodologies. To support portfolio resilience in

multiple energy pathways, we have a financial framework in place addressing climate-related risks, we stress test our

portfolio across different energy scenarios, and assess climate-related physical risks. Risks relating to policies and

regulatory frameworks, international politics and geopolitical change, together with competition and technological

innovation are regularly assessed, monitored and managed to improve outcomes for the company as part of the

Equinor’s risk update.

Risks related to projects and operations are managed at many levels, including through quality assurance processes

(competence area reviews, e.g., facilities, safety and security, environment, commercial and country risk) within the

investment phase, quality and risk management within the project execution risk phase, and continuous improvement

programs in operations. Crisis management, business continuity and insurance coverage are included in the evaluation of

actions to reduce the impact of unwanted incidents. Digital security and cyber security remain in high focus through a

cyber security improvement programme to maintain and strengthen cyber security capability and reduce cyber risk.

About us

Equinor 2023 Integrated Annual Report 32

Security, safety and environmental risks

We undertake business activities globally that expose

Equinor to a wide range of factors that can impact the

health and safety of people, the integrity of facilities, and

nature. Our activities could be exposed to risk from the

physical effects of climate change, and Equinor could be

subject to hostile acts that cause harm and disrupt

operations. Incidents may include release of health

hazardous substances, fire, explosions, and environmental

contamination.

Security, safety and environment risk factors

● Health, safety and environmental factors

● Security breaches

Security, safety and environment risk management

Ensuring low and tolerable levels of security, safety and environmental risks is a central aspect of our investment

decisions and operations processes. We regularly assess our performance through indicators, reviews and assurance

activities and, when needed, instigate improvements. In the current business context, we have a specific focus on top

enterprise risks related to major accidents, security incidents and human rights breaches, as well as following up on

aspects of our ambitions to net zero (under strategic and commercial risks). Mitigation of the major accident risk is

through continued focus on our I am Safety Roadmap and rollout of major accident prevention training across the

company. We continue to deepen understanding and potential mitigation of physical climate risk to our business activities.

We consider latest scientific understanding and environmental data to inform risk management when planning and

executing our projects. Risk exposure to human rights is addressed through a specific action plan that prioritises key

actions to prevent forced labour in the supply chain and establish new working requirements for human rights due

diligence. We maintain high focus on security risk management in light of the European security situation, and work to

mitigate state actor threats through safeguarding physical security, including offshore and onshore facilities and pipelines,

and to further develop the management of cyber security.

Threats associated with third parties are consistently assessed

and addressed as an integral part of cyber risk management. Cyber risk assessments and risk management services are

delivered by internal experts. External assessors are engaged to benchmark security discipline maturity levels.

Compliance and control risks

Breaches of laws, regulations or guidelines or ethical

misconduct can lead to public or regulatory responses that

affect our reputation, operating results, shareholder value

and continued licence to operate. Failure to control risks

related to trading processes and transactions can result in

fines and monetary losses and potentially affect Equinor’s

licence to trade.

Compliance and control risk factors

● Supervisions, regulatory reviews and reporting

● Business integrity and ethical misconduct

Compliance and control risk management

Equinor’s Code of Conduct sets out our commitment and requirements for how we do business at Equinor. We train our

employees on how to apply the Code of Conduct in their daily work and require annual confirmation that all employees

understand and will comply with requirements. We require our suppliers to act in a way that is consistent with our Code of

Conduct and engage with them to help them understand our ethical requirements and how we do business. Equinor

operates a Compliance Programme with the aim to ensure that anti-bribery and corruption risks are identified, reported,

and mitigated, and have a network of compliance officers who support the business areas globally.

Group performance

Equinor 2023 Integrated Annual Report 33

Group performance

2.1

2.2

2.3

Our 2023 performance

Financial performance

Strategic financial framework

Our market perspective

Group financial performance

Oil and gas reserves

Sustainability performance

Sustainability approach

Materiality assessment

Material topics’ performance

Always safe

Safe and secure operations

Protecting nature

Respecting human rights

Workforce for the future

High value

Profitable portfolio

Energy provision and value creation for society

Integrity and anti

-

corruption

Low carbon

Net-

zero pathway 

Fuelling innovation

Group performance

Equinor 2023 Integrated Annual Report 34

Our 2023 performance

Financial performance

We present our 2023 financial results, our strategies for capital and liquidity management, our future outlook and an update on our oil

and gas reserves.

Sustainability performance

Gain insight into our sustainability performance, approach to sustainability and how we identify and assess our material topics.

Fuelling innovation

Learn about our research and innovation activities and the technological developments that can improve our performance and

increase our competitiveness.

Group performance

Equinor 2023 Integrated Annual Report 35

2.1 Financial performance

We delivered strong earnings and competitive capital distribution, while focusing on capital discipline and making solid progress on

our ambitions. 

We aim to deliver profitable growth towards 2035 and provide long-term shareholder value. 

“We delivered solid operational performance and

production growth, leading to strong financial

results in 2023. Industrial progress on and

development of our portfolios in oil and gas,

renewables and low carbon solutions, position

us for growth and transition forward.

Towards 2035 we aim to maintain high

profitability while transforming, and deliver a

stronger cash flow from a broader energy mix

with lower emissions.”

Torgrim Reitan, CFO

Group performance

Equinor 2023 Integrated Annual Report 36

Strategic financial framework

Equinor’s financial framework is underpinned by four principles that we believe will allow us to develop our company and drive capital

discipline. 

Value over volume

Value creation is a key priority for Equinor and is an integral part of how we steer our company. By being value driven, we expect to

deliver a return on average capital employed* of above 15% from 2024 to 2030

2

. 

Robust to lower prices

Given the cyclical nature of our industry, we aim to remain robust to lower prices and continue to deliver value through the cycles. Our

current portfolio is estimated to be net cash flow* neutral between 2024 and 2030 at around 55 USD/bbl

3

. Robustness is developed

through a balanced portfolio composition in addition to low break-even prices on projects. Ensuring a base line of stable returns from

the upstream business coupled with a targeted high value renewable and LCS portfolio we seek to create robustness through cycles

and seasons. By remaining disciplined and utilising our flexible investment program, we aim to ensure resilience in a low-price

scenario.

Robust capital structure

Ensuring a solid balance sheet and necessary financial flexibility is important to support a dynamic strategy through economic and

market cycles. We also aim to maintain a credit rating within the single A category on a stand-alone basis as a key objective

4

. Equinor

expects a long-term net debt to capital employed* ratio between 15-30% (20-35% including IFRS

®

 Accounting Standards - IFRS 16

leases) to be consistent with this.

Energy transition plan

In line with Equinor’s Energy transition plan, we are focusing on high-value growth in renewables and aim to invest over 30% of gross

capex* to renewables and low carbon solutions by 2025, growing to over 50% by 2030, subject to the availability of robust projects.

We also aim to reduce operated net scope 1+2 emissions by 50% by 2030 and reduce our net carbon intensity by 20% by 2030 and

40% by 2035

54

.

Growing cash flows from operations

It is expected that this financial framework will enable Equinor to generate a strong cash flow from operations after taxes paid* (CFFO

after taxes paid*). We aim to deliver a CFFO after taxes paid* of around USD 20 billion annually from oil and gas activities between

2024 and 2035 and around USD 3 billion from the renewables and low carbon solutions portfolio by 2030, growing to USD 6 billion by

2035

1 6.

 This cash flow will be allocated to create shareholder value, following three capital allocation priorities:

1.

Stable oil and gas investments while growing investment to transition

By continuing to reinvest in our oil and gas activities towards 2035, in an attractive project portfolio with low break-even prices, we aim

to build a strong foundation of profitable stability to keep the business steady as we transform. Capital will also continue to be

allocated towards investing in our growing project portfolio within renewables and low-carbon solutions in line with our Energy

transition plan. 

2.

 Competitive, growing ordinary cash dividend through the cycles

Investing in high-value projects should enable Equinor to maintain a competitive capital distribution through the energy transition.

Equinor has an ambition to grow the annual ordinary cash dividend through the cycles in line with long-term underlying earnings, at a

minimum of 2 cents per share per year.

3.

 Share buy-backs as flexible tool for capital distribution

As part of our shareholder distribution programme, Equinor also buys back shares. The share buy-back programme is a flexible

means of additional capital distribution, where the ambition is to maintain a minimum of USD 1.2 billion in annual share buy-backs in

the longer term.

2

Based on reference case 75 USD/bbl scenario using USD/NOK exchange rate of 10 and price assumptions: Brent Blend 75 USD/bbl, Henry

Hub 3.5 USD/mmbtu and European gas price 13 USD/mmbtu for 2024 and 2025, thereafter 9 USD/mmbtu.

3

Net cash flow* neutral before capital distribution, based on lower case 55 USD/bbl scenario (excluding 2023 tax lag) using USD/NOK

exchange rate of 10 and price assumptions: Brent Blend 55 USD/bbl, Henry Hub 2.5 USD/mmbtu and European gas price 8 USD/mmbtu for

2024 and 2025, thereafter 6 USD/mmbtu.

4

Without uplift in rating due to state ownership.

5

See equinor.com for more details around Equinor’s Energy transition plan.

6

Oil and gas activities defined as being from E&P Norway and/or E&P International including MMP (with the exception of LCS) and other

group elements. Renewables and low carbon solutions portfolio defined as being from REN and LCS including relevant trading.

Group performance

Equinor 2023 Integrated Annual Report 37

Our market perspective

Market overview

At the start of 2023, the global economy wrestled with the interplay of recovery from the pandemic-induced downturn and geopolitical

challenges. In particular, the war in Ukraine continued to distort energy market dynamics and global trade patterns, pushing upward

prices that were already inflated in the aftermath of the pandemic.

As 2023 progressed, central banks responded to high inflation with tight monetary policy. In Europe, political attention was also

focused on Ukraine's counter-offensive, which did not yield the anticipated gains and prompted a shift towards greater realism. With

this backdrop, and in contrast to the cautious optimism for consumers and service industry worldwide, capital and energy-intensive

industries faced headwinds. The industrial sector in the Eurozone was hit, and EU GDP growth decelerated to 0.5% year-on-year.

In October, Hamas' surprise terrorist attack on Israel triggered a new crisis in the Middle East - one that directly impacted global

energy flows and raised the prospects of further escalation.

Despite these challenges global GDP surprised with an estimated growth of 2.7% in 2023, partially driven by economic resilience in

the US, reflecting declining inflation, a robust labor market and strong private consumption.

While the outlook for 2024 indicates declining inflation rates and policy rate cuts, the global economy is expected to continue on a

path of moderation. Geopolitical developments, as well as the trajectory of inflation and interest rates, will be key factors shaping

global markets also in 2024.

Global oil prices

The oil market was quite balanced in 2023 with some oversupply in the first half and undersupply in the second half. The price for

Dated Brent crude oil averaged 82.6 USD/bbl in 2023, with the second half of the year stronger than the first half. This marked a

significant drop from an average price of 101 USD/bbl in 2022. 

During the first half of 2023, Dated Brent crude prices fluctuated within the range of 72-88 USD/bbl. The EU and G7 sanctions on oil

imports from Russia did not lead to major supply disruptions, and interest rate hikes among global central banks, as well as inflation

and recession concerns, kept prices muffled.

By the second half of 2023, oil prices responded to the effects of the Opec+ oil production cuts. The Brent price reached its highest

point for the year at 98 USD/bbl in September. Prospects for slower economic growth and oil demand and the higher-than-expected

supply from non-Opec+ producers pushed prices down towards year-end. The Israel-Hamas conflict led to a short-lived price increase

in October, but prices fell again as fears of supply disruptions eased.

Mid-December, concerns about shipping disruptions in the Red Sea due to attacks from Houthi rebels, lifted oil prices briefly. Brent

averaged 78.2 USD/bbl in December 2023.

Global gas prices

European natural gas prices (TTF) decreased by 66% from the extraordinary levels in 2022 caused by the war in Ukraine, averaging

12.8 USD/MMBtu. The year was marked by a historical European gas storage surplus at the end of the winter with lower gas demand

across Europe and North-East Asia. Several factors played a role, such as the mild winter weather, higher renewable and nuclear

output, persistent end-user energy savings, sluggish industrial demand and slower than expected economic growth in China. New

import terminals across Europe allowed for larger and better distribution of LNG volumes across the region. Russian gas volumes

were further reduced by about 59% year-on-year. Long-term contracts returned to the horison, with German players very active in

signing several new contracts with US producers, Qatar and Norway, while other big players also moved to secure more LNG

volumes from US and Qatar. The European joint gas purchases platform was launched in May with mixed feedback and limited

market impact.

The US natural gas market in 2023 was uneventful, after the soar in prices in 2021/22 in response to the European energy crisis.

Looking ahead, Henry Hub is expected to continue to play a crucial role in balancing both domestic and international demand, as the

US solidifies its leading position in global LNG export. With rising awareness of climate change, energy affordability, and escalation of

geopolitical tensions, US natural gas will remain an important topic in the global energy discussions.

Global LNG spot prices were volatile in 2023, with the Asian LNG price (JKM) averaging 13.8 USD/MMBtu, down from 34

USD/MMBtu in 2022. The lower price was driven by lower demand in Europe and Asia compared to 2022 and the high storage levels

Group performance

Equinor 2023 Integrated Annual Report 38

amid healthy supply in both regions. The volatility in prices was due to the structural market tightness related to the extended

maintenance in Norway in September, the Australian LNG workers strikes in October, and the ongoing conflict in the Middle East

since October. Although 30 bcm lower than 2022, a relatively high global LNG contracting activity continued in 2023, with long-term

supply agreements (10+ years) reaching 100 bcm.

European electricity and CO

2

 prices

Compared to the extraordinary levels seen in 2022, power prices in major West European markets (UK, France, Germany, Belgium,

Netherlands, Spain, and Italy) decreased by 60% to 101 EUR/MWh as the market was able to cope with the lack of Russian gas into

the system. In addition, the high price environment kept pushing European demand downwards (-3.1% vs 2022, -6.5% vs 2017-21).

More precipitation in North-west Europe, the improvement of French nuclear availability and a strong increase in wind and solar

capacity additions led to a substantial decrease in coal and gas generation in 2023.

The EU ETS followed a volatile downwards price trend from its 100 EUR/t historical peak back in February, ending the year at 69

EUR/t. ETS was driven by low emissions in power and industry and an influx of frontloaded allowances as part of REPowerEU

regulations.

From a policy perspective, there were three main legislative efforts in Europe to be highlighted:

(1) the EU Commission (EC) announced its proposal on electricity market design in March as a response to the high price

environment resulting from the European energy security situation. The key focus of the proposal is on consumer

protection, improving market transparency and security of supply.

(2) In late October the EC presented the “European Wind Power Action Plan” which aims at accelerating wind deployment

through increased predictability and faster permitting, and the creation of a European wind supply chain.

(3) In the UK, after the disappointing Contract for Difference auction results, the government announced additional funds

and slight changes to the subsidy allocation mechanism with the aim of attracting more applications for the upcoming

auctions.

Group performance

Equinor 2023 Integrated Annual Report 39

Group financial performance

Solid production increases in 2023 were delivered, securing a strong financial performance despite the impact of lower commodity

prices relative to 2022.

Strong sustained production levels from Johan Sverdrup on the NCS, including phase 2 which came onstream in December 2022,

contributed substantially to the increased production. Internationally, Peregrino in Brazil and a strong performance from the US

offshore assets supported production growth, which was also buoyed relative to 2022 with new volumes from Buzzard in the UK

following the Suncor Energy UK Limited acquisition and the ramp-up of partner-operated Vito in the US.

Operational challenges, turnarounds, and extended maintenance activities, particularly affecting NCS gas assets contributed to the

decline in gas production year-on-year and partially offset the total production increases.

Equinor’s prior year divestments in Martin Linge and Ekofisk also partially offset production levels compared to the prior year.

Power generation from the Brazilian acquisition, Rio Energy in 2023 and Triton Power in the UK acquired in the second half of 2022,

contributed well to Equinor’s power generation in 2023. These additions coupled with continued maturation of both onshore and

offshore projects within the Renewable portfolio resulted in an increase in power generation compared to the prior year.

Results

Condensed income statement

For the year ended 31 December

(in USD million)

2023

2022

Change

Revenues

106,848

149,004

(28%)

Net income/(loss) from equity accounted investments

(1)

620

N/A

Other income

327

1,182

(72%)

Total revenues and other income

107,174

150,806

(29%)

Purchases [net of inventory variation]

(48,175)

(53,806)

(10%)

Operating, selling, general and administrative expenses

(11,800)

(10,593)

11%

Depreciation, amortisation and net impairments

(10,634)

(6,391)

66%

Exploration expenses

(795)

(1,205)

(34%)

Net operating income/(loss)

35,770

78,811

(55%)

Net financial items

2,114

(207)

N/A

Income/(loss) before tax

37,884

78,604

(52%)

Income tax

(25,980)

(49,861)

(48%)

Net income/(loss)

11,904

28,744

(59%)

Group performance

Equinor 2023 Integrated Annual Report 40

Solid production increases combined with high realised prices drove strong revenue and results for 2023. Realised commodity prices,

particularly gas, were markedly reduced from the elevated levels in 2022, and as such more than offset the production increase,

resulting in a decline in revenue relative to the prior year.

In contrast to the extraordinary market conditions in the prior year, a reduction in gas market volatility and declined geographical

spreads limited favourable opportunities to capture value within Gas and Power trading compared to 2022. However, Crude, product

and liquid results in MMP were strong for 2023, effectively capturing financial and physical market opportunities in addition to

optimisation of the shipping portfolio, contributing well to total results.

The additions to production capacity throughout the year and resulting increased production, coupled with prevailing inflationary

pressures drove an increase in operating, selling, general and administrative expenses compared to 2022 levels. In contrast, a

reduction in energy prices from 2022 contributed to a reduction in transportation tariffs relative to the prior year partially offsetting the

increase. The overall growth in operating expenditure was partially masked by the strengthening of the USD against the NOK.

Depreciation, amortisation and net impairments increased by 66% in 2023, impacted significantly by net impairments totaling USD

1,260 million in the year. This included the recognition of an impairment to our offshore wind project on the US North East Coast

following rejection of petitions related to offtake agreements, and the planned exit from Azerbaijan announced at the end of the year.

The prior year in contrast included net impairment reversals of USD 2,487 million mainly due to updated estimates of value in use of

property, plant and equipment impacted by internal forecasts on cost, production profiles and commodity prices, partially offset by the

impairment recognised in relation to the exit from Russia. For more information, see note 14 to the Consolidated financial statements.

The positive trend in net financial items from a loss in 2022 to income of USD 2,114 million in 2023 is driven by an increase in interest

income from liquidity management reflecting the upward movement of interest rates over the year. There was, however, a decrease in

long-term interest rates resulting in a gain on derivative financial instruments in the year, also contributing to the year-on-year

movement.

Income taxes decreased from USD 49,861 million in 2022 to USD 25,980 million in 2023. This is equivalent to a positive effective tax

rate of 68.6% for 2023, an increase of 5.2 percentage points compared to 63.4% in 2022. The tax rate in 2022 was impacted by the

recognition of a deferred tax asset in the US of USD 2.7 billion.

A successful net income result of USD 11,904 million was recorded for 2023. While this is a significant reduction from the

extraordinary year of 2022, it is a historically high result for Equinor driven by a solid production delivery.

Group performance

Equinor 2023 Integrated Annual Report 41

Capital management and distribution

Equinor’s ambition is to grow the annual cash dividend in line with long-term underlying earnings, in addition to buying back shares.

When deciding the interim dividends and recommending the total annual dividend level, the BoD takes into consideration a range of

factors, including the macro environment, expected cash flow, capital expenditure plans, financing requirements and appropriate

financial flexibility. Dividends are declared in USD. For further details on Equinor’s dividend policy see the Board statement on

corporate governance at Equinor.com/reports

As part of our distribution of capital to shareholders, Equinor also buys back shares. The purpose of the share buy-back programme is

to reduce the issued share capital of the company. All shares repurchased as part of the programme are cancelled. According to a

separate agreement between Equinor and the Norwegian State, a proportionate share of the Norwegian State’s shares will be

redeemed and annulled at the annual general meeting, ensuring that the State’s ownership interest in Equinor remains unchanged at

67%. Execution of share buy-backs after the 2024 annual general meeting is subject to a renewed authorisation, including renewal of

the agreement with the Norwegian State. Share buy-backs will be executed within applicable safe harbour provisions.

Capital distribution

The strong financial performance in 2023 allowed Equinor to distribute a total of USD 3,686 million in ordinary dividends in the year

and USD 6,347 million in extraordinary dividends (2022: 2,814 million annual ordinary dividends and USD 6,247 million extraordinary

dividends).

 per share (in USD)

2023

2022

Q1

Q2

Q3

Q4

Sum

Q1

Q2

Q3

Q4

Sum

Ordinary dividend

0.30

0.30

0.30

0.35

1.25

0.20

0.20

0.20

0.30

0.90

Extraordinary dividend

0.60

0.60

0.60

0.35

2.15

0.20

0.50

0.70

0.60

2.00

Sum

0.90

0.90

0.90

0.70

3.40

0.40

0.70

0.90

0.90

2.90

For the fourth quarter of the year, the BoD proposes to the annual general meeting a cash dividend of USD 0.35 per share, and an

extraordinary quarterly dividend of USD 0.35 per share. Considering the proposed dividend, USD 1,649 million will be allocated to

retained earnings in the parent company.

For 2023, Equinor initiated a USD 6,000 million share buy-back programme. The 2023 share buy-back programme started with the

first tranche in February 2023 and ended with the fourth tranche, which was completed in January 2024. The Norwegian State share

related to the second, third and fourth tranches of the 2023 share buy-back programme and the first tranche of the 2024 share buy-

back programme, amounting to USD 4,154 million, will be redeemed in 2024. Redemption is subject to approval in the annual general

meeting in May 2024.

For further information see note 20 Shareholders’ equity, capital distribution and earnings per share to the Consolidated financial

statements.

Review of cash flows

Consolidated statement of cash flows

Full year

(in USD million)

2023

2022

Cash flows provided by operating activities 

24,701

35,136

Cash flows used in investing activities

(12,409)

(15,863)

Cash flows provided by/(used in) financing activities

(18,142)

(15,414)

Net increase/(decrease) in cash and cash equivalents

(5,850)

3,860

Group performance

Equinor 2023 Integrated Annual Report 42

Strong financial results from the business during 2023, driven by a solid operational performance, generated cash flow provided by

operating activities before taxes paid and working capital items of USD 48,016 million. The downward movement in commodity prices

drove the decrease of USD 35,592 million from the prior year.

Taxes paid of USD 28,276 million in the year have reduced from the prior year outflow of USD 43,856 million. The payments primarily

consist of Norwegian corporation tax instalments paid for income relating to six months of the prior year and six months of 2023. The

reduction in payments compared to the same period in the prior year reflects the relatively lower pricing environment of 2023.

A working capital decrease of USD 4,960 million, related to reduced price realisation, positively impacted cash flow in 2023, compared

to an increase of USD 4,616 million in 2022.

An increase in cash used in business combinations and a significant increase in shareholder distribution paid, from USD 8,695 million

in 2022 to USD 16,495 million in 2023, further contributed to an overall cash outflow of USD 5,850 million in the year, down from an

inflow of USD 3,860 million in 2022.

USD 19.7 billion

Cash flow from operations after taxes

paid*

Delivery of a solid operational performance, with growth

in production year-on-year, contributed to a strong

CFFO* of USD 19.7 billion in 2023 (2022: USD 39.8

billion).

Although subdued compared to 2022, the effect of high

commodity prices coupled with production increases

drove this strong result in the year. The pattern of

payments for Norwegian corporation tax instalments

impacted the CFFO*, with USD 15.5 billion of the total

NCS tax payments in the year (USD 27.0 billion) relating

to the extraordinary 2022 year.

Group performance

Equinor 2023 Integrated Annual Report 43

Debt and liquidity management

Debt and credit rating

Equinor generally seeks to establish financing at the corporate (top company) level. Loans or equity are then extended to subsidiaries

to fund their capital requirements. Project financing may be used for risk mitigation, access to projects and to facilitate for farm down.

The aim is to always have access to a variety of funding sources across different markets and instruments, as well as maintain

relationships with a core group of international banks that provide a wide range of banking services.

Our credit rating target is within the single A category on a stand-alone basis. This rating ensures access to relevant capital markets at

favourable terms and conditions. 

The Group's borrowing needs are usually covered through the issuance of short-, medium- and long-term securities, including

utilisation of a US Commercial Paper Programme (programme limit USD 5.0 billion) and issuances under a Shelf Registration

Statement filed with the SEC in the US and a Euro Medium-Term Note (EMTN) Programme (programme limit EUR 20 billion) listed on

the London Stock Exchange. In addition, Equinor has a multicurrency revolving credit facility of USD 6 billion, including a USD 3 billion

swing line (same day value) option. The credit facility is used as a backstop for the group’s US Commercial Paper Programme and

has a sustainability linked financing element included in the loan agreement related to Equinor’s CO

2

 upstream intensity target.

Equinor believes that given its current liquidity reserves, including the committed revolving credit facility of USD 6 billion and its access

to global capital markets, Equinor will have sufficient funds available to meet its liquidity and working capital requirements.

Equinor did not issue any new bonds in 2023 and 2022. The redemption profile of previously issued bonds by currency denomination

is shown above. This includes bonds issued in the US and European bond markets. All the bonds are unconditionally guaranteed by

Equinor Energy AS. The long-term debt portfolio is partially swapped to floating USD interest rate. Equinor manages its interest rate

exposure on its bond debt based on risk and reward considerations from an enterprise risk management perspective. This means that

the fixed/floating mix on interest rate exposure may vary from time to time. After the effect of currency swaps, the major part of

Equinor’s borrowings is in USD.

The management of financial assets and liabilities takes into consideration funding sources, the maturity profile of long-term debt,

interest rate risk, currency risk and available liquid assets. In addition, interest rate derivatives, primarily interest rate swaps, are used

to manage the interest rate risk of the long-term debt portfolio.

As of 31 December 2023, Equinor had a long-term credit rating of Aa2 (Moody’s Investors Service) and AA- (Standard & Poor’s

Global Ratings), including an uplift due to state ownership (two notches from Moody’s Investors Service and one notch from Standard

& Poor’s Global Ratings compared to their respective stand-alone credit rating assessments of Equinor). This rating is well above our

rating target and ensures sufficient predictability when it comes to funding access at attractive terms and conditions.

Group performance

Equinor 2023 Integrated Annual Report 44

Liquidity management

Equinor diversifies its cash investments across a range of financial instruments and counterparties to avoid concentrating risk in any

one type of investment or any single country. As of 31 December 2023, approximately 39% of Equinor’s liquid assets were held in

NOK-denominated assets, 35% in EUR, 15% in USD, 7% in SEK, 3% in AUD and 1% in GBP before the effect of currency swaps and

forward contracts. Approximately 53% of Equinor’s liquid assets were held in time deposits, 23% in treasury bills and commercial

papers, 14% in corporate bonds, 5% in money market funds and 1% in current accounts.

As of 31 December 2023, approximately 4% of Equinor’s liquid assets were classified as restricted cash and cash equivalents

(including collateral deposits).

Balance sheet and financial indicators

Non-current assets

The sum of equity-accounted investments and non-current segment assets was USD 67,038 million for the year ending 31 December

2023, compared to USD 64,414 million for the year ending 31 December 2022. Acquisitions, including the Suncor Energy UK Limited

transaction and the renewable companies BeGreen and Rio Energy, are the primary contributors to this increase relative to the prior

year. Additions to PP&E also increased, however this was partially offset by impairments booked in the year.

Financial indicators

 For the year ended 31 December

(in USD million)

2023

2022

Gross interest-bearing debt

 1)

31,796

32,168

Net interest-bearing debt before adjustments

(7,069)

(13,288)

Net debt to capital employed ratio*

 2)

(17.1%)

(32.6%)

Net debt to capital employed ratio adjusted, including lease liabilities*

 3)

(11.6%)

(14.3%)

Net debt to capital employed ratio adjusted*

 3)

(21.6%)

(23.9%)

Cash and cash equivalents

9,641

15,579

Current financial investments

29,224

29,876

1)

Defined as non-current and current finance debt.

2)

As calculated based on IFRS Accounting Standards balances. Net debt to capital employed ratio* is the net debt divided by capital

employed. Net debt is interest-bearing debt less cash and cash equivalents and current financial investments. Capital employed is net

debt, shareholders' equity and minority interest.

3)

In order to calculate the net debt to capital employed ratio* adjusted, Equinor makes adjustments to capital employed as it would be

reported under IFRS Accounting Standards. The following adjustment is made in calculating the net debt to capital employed adjusted*,

including lease liabilities ratio* and the net debt to capital employed adjusted ratio*: collateral deposits (classified as Cash and cash

equivalents in the Consolidated balance sheet), and financial investments held in Equinor Insurance AS (classified as Current financial

investments in the Consolidated balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP measures.

Collateral deposits are excluded since they relate to certain requirements of exchanges where Equinor is trading and presented as

restricted cash and cash equivalents. Financial investments in Equinor Insurance are excluded as these investments are not readily

available for the group to meet short term commitments. This adjustment results in a higher net debt figure and in Equinor’s view provides

a more prudent measure of the net debt to capital employed ratio* than would be the case without such exclusions.

Gross interest-bearing debt

Gross interest-bearing debt was USD 31.8 billion and USD 32.2 billion at 31 December 2023 and 2022, respectively. The USD 0.4

billion net decrease from 2022 to 2023 was due to the decline in finance debt and lease liabilities. Current finance debt and lease

liabilities increased by USD 1.7 billion, mainly due to an increase in the utilisation of the US Commercial Paper programme. Non-

current finance debt decreased by USD 2.0 billion due to reclassification of non-current debt to current debt and currency effects. The

weighted average annual interest rate on finance debt was 3.41% and 3.29% at 31 December 2023 and 2022, respectively. Equinor’s

weighted average maturity on finance debt was nine years at 31 December 2023 and nine years at 31 December 2022.

Net interest-bearing debt

Net interest-bearing debt before adjustments was negative USD 7.1 billion and negative USD 13.3 billion at 31 December 2023 and

2022, respectively. The decrease of USD 6.2 billion from 2022 to 2023 was mainly related to a decrease in cash and cash equivalents

of USD 5.9 billion, a USD 0.7 billion decrease in current financial investments and a decrease in gross interest-bearing debt of USD

0.4 billion.

Group performance

Equinor 2023 Integrated Annual Report 45

The net debt to capital employed ratio*

The net debt to capital employed ratio* before adjustments was negative 17.1% and negative 32.6% in 2023 and 2022, respectively.

The net debt to capital employed ratio adjusted* was negative 21.6% and negative 23.9% in 2023 and 2022, respectively.

The 15.5 percentage point increase in net debt to capital employed ratio* before adjustments from 2022 to 2023 was mainly related to

the reduction of net interest-bearing debt of USD 6.2 billion.

The 2.3 percentage points increase in net debt to capital employed ratio adjusted* from 2022 to 2023 was related to the decline in net

interest-bearing debt adjusted of USD 1.8 billion and a decrease in capital employed adjusted* of USD 3.7 billion.

Return on average capital employed (ROACE)* 

The return on average capital employed (ROACE)* was 24.9% in 2023, compared to 55.1% in 2022. The change from 2022 was

mainly due to the decrease in adjusted earnings* after tax.

Cash, cash equivalents and current financial investments

Cash and cash equivalents were USD 9.6 billion and USD 15.6 billion at 31 December 2023 and 2022, respectively. See note 19

Cash and cash equivalents to the Consolidated financial statements for information concerning restricted cash and cash equivalents.

Current financial investments, which are part of Equinor’s liquidity management, amounted to USD 29.2 billion and USD 29.9 billion at

31 December 2023 and 2022, respectively.

Relative TSR

Equinor performs an assessment of performance against a peer group of 11 European and U.S. companies by relative Total

Shareholder Return (TSR). TSR is the sum of a share’s price growth and dividends for the same period, divided by the share price at

the beginning of the period and is provided by a third-party service provider.

The chart below shows TSR for 2023. Equinor is number eight with a TSR of -0.2% (measured in USD).

2023 was a relatively strong year for global equity markets, but not specifically strong for oil and gas equities. Other sectors had

experienced difficulties over the last years, not least due to covid and its aftermath, while energy companies had seen high profits in

2022 when energy prices surged after the Russian invasion of Ukraine. There was a certain rebalance in 2023 as it became clear that

energy prices were drifting back to more normal levels. In the European gas market in 2023, gas prices were much below the

abnormal prices experienced in the year before, with the full gas storage and mild winter, which had an impact on Equinor.

Group performance

Equinor 2023 Integrated Annual Report 46

The graph below shows the relative performance of Equinor over five years from 2019 until 2023. Over this period, Equinor ranks

number 2 with a TSR of 102%.

Equinor’s peer group consists of the following companies: 

Aker BP, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Galp, Repsol, Shell, TotalEnergies and Ørsted.

Continued operation

In accordance with §3-3a of the Norwegian Accounting Act, the BoD confirms that the going concern assumption on which the

financial statements were prepared is appropriate.

Group outlook

●

Organic capital expenditures*

 are estimated at around USD 13 billion for 2024

7

.

●

Oil & gas production

 for 2024 is estimated to be stable compared to the 2023 level.

●

Renewable power generation

for 2024 is estimated to double compared to the 2023 level.

●

 Equinor’s ambition is to keep the

unit of production cost

 in the top quartile of its peer group.

●

Scheduled maintenance activity

 is estimated to reduce equity production by around 60 mboe per day for the full year of 2024.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and

uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create

future value, gas off-take, timing of new capacity coming on stream and operational regularity and levels of industry product supply,

demand and pricing represent the most significant risks related to the foregoing production guidance. Our future financial

performance, including cash flow and liquidity, will be affected by the extent and duration of the current market conditions, the

development in realised prices, including price differentials and other factors discussed elsewhere in the report. For further

information, see section 5.8 Forward-looking statements in the report.

7

 USD/NOK exchange rate assumption of 10.

Group performance

Equinor 2023 Integrated Annual Report 47

Operational data

For the year ended 31 December

Operational data

2023

2022

2021

23-22 change

22-21 change

Prices

Average Brent oil price (USD/bbl)

82.6

101.2

70.7

(18%)

43%

E&P Norway average liquids price (USD/bbl)

78.6

97.5

67.6

(19%)

44%

E&P International average liquids price (USD/bbl)

72.6

92.0

67.6

(21%)

36%

E&P USA average liquids price (USD/bbl)

64.4

81.0

58.3

(20%)

39%

Group average liquids price (USD/bbl)

75.0

94.1

66.3

(20%)

42%

Group average liquids price (NOK/bbl)

792

906

570

(12%)

59%

E&P Norway average internal gas price (USD/mmbtu)

12.20

31.22

14.43

(61%)

>100% 

E&P USA average internal gas price (USD/mmbtu) 

1.77

5.55

2.89

(68%)

92%

Realised piped gas price Europe (USD/mmbtu)

1)

13.86

32.84

14.97

(58%)

>100% 

Realised gas price US (USD/mmbtu)

2.09

5.89

3.22

(65%)

83%

Refining reference margin (USD/bbl)

10.2

14.5

4.0

(30%)

>100% 

Entitlement production (mboe per day)

E&P Norway entitlement liquids production

645

605

643

7%

(6%)

E&P International entitlement liquids production

240

203

207

18%

(2%)

E&P USA entitlement liquids production

145

114

128

27%

(11%)

Group entitlement liquids production

1,030

922

978

12%

(6%)

E&P Norway entitlement gas production

729

782

721

(7%)

8%

E&P International entitlement gas production

26

32

40

(18%)

(19%)

E&P USA entitlement gas production

168

165

193

2%

(14%)

Group entitlement gas production

924

980

954

(6%)

3%

Total entitlement liquids and gas production

1,954

1,901

1,931

3%

(2%)

Equity production (mboe per day)

E&P Norway equity liquids production

645

605

643

7%

(6%)

E&P International equity liquids production

304

281

291

8%

(4%)

E&P USA equity liquids production

162

127

142

28%

(11%)

Group equity liquids production

1,112

1,013

1,076

10%

(6%)

E&P Norway equity gas production

729

782

721

(7%)

8%

E&P International equity gas production

41

47

51

(13%)

(7%)

E&P USA equity gas production

200

197

231

2%

(15%)

Group equity gas production

970

1,026

1,003

(5%)

2%

Total equity liquids and gas production

2,082

2,039

2,079

2%

(2%)

Liftings (mboe per day)

Liquids liftings

1,048

914

980

15%

(7%)

Gas liftings

956

1,009

989

(5%)

2%

Total liquids and gas liftings

2,003

1,923

1,969

4%

(2%)

Production cost (USD/boe)

Production cost entitlement volumes

6.6

6.5

5.8

1%

12%

Production cost equity volumes 

6.2

6.1

5.4

2%

13%

Power generation

Total power generation (GWh) Equinor share

4,235

2661

1562

59%

70%

Renewable power generation (GWh) Equinor share

2)

1,937

1649

1562

17%

6%

1) Restated. Restatement due to a change in definition of the price marker for realised gas price and improved methodology for

calculating liquids sales volumes. For more information, see section 5.7 Other definitions and abbreviations.

2) Includes Hywind Tampen renewable power generation.

Group performance

Equinor 2023 Integrated Annual Report 48

Sales prices

The following table presents realised sales prices.

Realised sales prices

Norway

Eurasia 

excluding

Norway

Africa

Americas

Year ended 31 December 2023

Average sales price oil and condensate in USD per bbl

82.4

77.1

79.9

72.2

Average sales price NGL in USD per bbl

48.8

NA

43.7

20.4

Average sales price natural gas in USD per MMBtu

13.9

14.6

8.2

2.1

Year ended 31 December 2022

Average sales price oil and condensate in USD per bbl

102.0

89.7

100.9

90.0

Average sales price NGL in USD per bbl

64.2

NA

59.7

34.9

Average sales price natural gas in USD per MMBtu

32.8

1)

25.8

8.4

5.9

Year ended 31 December 2021

Average sales price oil and condensate in USD per bbl

70.0

67.0

71.0

65.7

Average sales price NGL in USD per bbl

52.5

51.8

48.9

29.5

Average sales price natural gas in USD per MMBtu

15.0

1)

15.4

6.9

3.2

1) Restated. Restatement due to a change in definition of the price marker for realised gas price. For more information, see section 5.7 Other

definitions and abbreviations.

Group performance

Equinor 2023 Integrated Annual Report 49

Sales volumes

Sales volumes include lifted entitlement volumes, the sale of SDFI volumes and the marketing of third-party volumes. In addition to

Equinor’s own volumes, we market and sell oil and gas owned by the Norwegian State through the Norwegian State's share in

production licences. This is known as the State's Direct Financial Interest or SDFI. For additional information, see report Board

statement on corporate governance, and note 7 Total revenues and other income to the Consolidated financial statements.

The following table shows the SDFI and Equinor sales volume information on crude oil and natural gas for the periods indicated.

 For the year ended 31 December

Sales Volumes

2023

2022

2021

Equinor

1)

Liquids sale (mmbbl)

2)

421

375

380

Natural gas (bcm)

55.5

58.6

57.4

Combined liquids and gas (mmboe)

770

744

741

Third-party volumes

3)

Liquids sale (mmbbl)

2)

413

314

305

Natural gas (bcm)

5.7

7.2

7.0

Combined liquids and gas (mmboe)

450

359

350

SDFI assets owned by the Norwegian State

4)

Liquids sale (mmbbl)

2)

146

146

153

Natural gas (bcm)

38.9

42.9

41.7

Combined liquids and gas (mmboe)

391

416

416

Total

Liquids sale (mmbbl)

2)

980

835

839

Natural gas (bcm)

100.1

108.7

106.2

Combined liquids and gas (mmboe)

1,610

1,519

1,507

1)

The Equinor volumes included in the table above include volumes sold by MMP, E&P international and E&P USA. Volumes lifted by E&P

Norway, E&P International or E&P USA and still in inventory or in transit may cause these volumes to differ from the sales volumes

reported elsewhere in this report by MMP. 

2)

Sales volumes of liquids include NGL, condensate and refined products. All sales volumes reported in the table above include internal

deliveries to our manufacturing facilities. Restated, for more information, see section 5.7 Other definitions and abbreviations.

3)

Third-party volumes of crude oil include both volumes purchased from partners in our upstream operations and other cargos purchased

in the market. The third-party volumes are purchased either for sale to third parties or for our own use. Third party volumes of natural

gas include third-party LNG volumes.

4)

The line item SDFI assets owned by the Norwegian State includes sales of both equity production and third-party.

Group performance

Equinor 2023 Integrated Annual Report 50

Oil and gas reserves

Proved oil and gas reserves

Proved oil and gas reserves were estimated to be 5,214

8

 million boe at year end 2023, compared to 5,191 million boe at the end of

2022.

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 proved reserves estimates 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 product 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 category in the tables that follow 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 SEC. The geographical areas are defined by country and continent. In 2023 these are Norway, Eurasia excluding

Norway, Africa, the USA and the Americas excluding USA.

In Norway and other countries where there is a reasonable 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 assets 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 83% of Equinor’s proved reserves are located in countries that are members of the Organisation of Economic Co-

Operation and Development (OECD). 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, Libya and

Nigeria. Other proved non-OECD reserves are related to concession fields in Brazil and Argentina, representing together 12% of

Equinor's total proved reserves.

8

 Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

Group performance

Equinor 2023 Integrated Annual Report 51

1

 Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

Changes in proved reserves 

The total volume of proved reserves increased by 23 million boe in 2023.

Revisions and improved recovery

Revisions of previously booked reserves, including the effect of improved recovery, increased the proved reserves by 

net 232 million boe in 2023. The increase is the result of

366 million boe in positive revisions and increased recovery, partially offset

by 135 million boe in negative revisions. Many producing assets 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. Increased

entitlement volumes from several fields with PSAs added to the positive revisions. The negative revisions were mainly related to

unforeseen events and operational challenges resulting in reduced production potential on some assets. The negative revisions also

included a direct effect of lower commodity prices, decreasing the proved reserves by approximately 17 million boe through decreased

economic lifetime on several assets.

Group performance

Equinor 2023 Integrated Annual Report 52

Extensions and discoveries

A total of 507 million boe of new proved reserves were added through extensions and discoveries. The Raia field in Brazil, the

Rosebank field in the United Kingdom (UK) and the Sparta field in the USA are the main contributors in this category and are included

in the proved reserves for the first time this year. In addition, this category includes extension of the proved area through continuous

drilling of new wells in previously undrilled areas in the Appalachian basin assets in the USA and in Argentina.

Purchases and sales of reserves-in-place

A total of 31 million boe of proved reserves were added through the purchase of Suncor Energy UK Limited in 2023 which included a

working interest in the producing Buzzard field.

A total of 35 million boe of sales of reserves-in-place in 2023 are related to

the sale of a 28% working interest in the Statfjord area on

the Norwegian continental shelf (NCS) and the sale of our interests in the Corrib field in Ireland.

In the fourth quarter of 2023, Equinor entered into an agreement to divest our interests in the Azeri-Chirag-Gunashli (ACG) field in

Azerbaijan. Closing is subject to regulatory and contractual approvals and is expected to take place in mid 2024. The sale will result in

an estimated reduction in proved reserves of approximately 45 million boe.

Production

The 2023 entitlement production was 711 million boe, compared to 695 million boe in 2022. The increase was mainly due to ramp up

to plateau production at the Johan Sverdrup field in Norway and the Peregrino field in Brazil.

Group performance

Equinor 2023 Integrated Annual Report 53

Development of reserves 

In 2023, 325 million boe were matured from proved undeveloped to proved developed reserves mainly due to continued drilling in

major offshore assets, Johan Sverdrup being the largest contributor, and in the Appalachian basin in the USA. The production start of

Vito in the USA in addition to Breidablikk and Bauge in Norway added to the maturation of proved undeveloped reserves. The positive

revision and improved recovery of proved undeveloped reserves of 90 million boe is related to large offshore fields in Norway such as

the Oseberg area, Visund, Johan Sverdrup and Snorre due to continued high activity level and planned future infill wells. Finally, 475

million boe was added to proved undeveloped reserves through extensions and discoveries. The largest additions in this category are

related to the sanctions of Raia in Brazil, Rosebank in the UK and Sparta in the USA, in addition to further development in the

Appalachian basin.

Proved developed and undeveloped reserves

At 31 December 2023

Oil and

condensate

NGL

Natural gas

Total oil and

gas 

(mmboe)

(mmboe)

(mmmcf)

(mmboe)

Developed

Norway

720

124

9,131

2,470

Eurasia excluding Norway

57

1

16

61

Africa

107

7

70

126

USA

201

51

1,859

583

Americas excluding USA

211

-

42

219

Total proved developed reserves

1,296

182

11,118

3,459

Undeveloped

Norway

426

57

2,175

871

Eurasia excluding Norway

156

2

55

168

Africa

16

1

4

18

USA

79

10

408

162

Americas excluding USA

410

-

710

537

Total proved undeveloped reserves

1,089

69

3,353

1,755

Total proved reserves

2,384

251

14,471

5,214

As of 31 December 2023, the total proved undeveloped reserves amounted to 1,755 million boe, close to 50% of which are related to

fields in Norway. The Oseberg area, Snøhvit and Johan Sverdrup fields, which have continuous development activities, together with

fields not yet in production, such as Johan Castberg, Munin and Ormen Lange Phase 3, have the largest proved undeveloped

reserves in Norway. The largest assets with proved undeveloped reserves outside Norway, are Raia, Bacalhau, Peregrino and

Roncador in Brazil, Rosebank and Mariner in the UK, Sparta and the Appalachian basin in the USA, and ACG in Azerbaijan. All these

assets are either currently in the production phase or will start production within the next five years.

For assets 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, that would require a

separate future investment decision by management, included in our proved reserves estimates. Some offshore development

activities will take place more than five years from the disclosure date on many assets, 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 the 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, but the start-up is delayed to the

fourth quarter of 2024.

For our onshore assets, all proved undeveloped reserves are limited to wells that are scheduled to be drilled within five years.

In 2023, Equinor incurred USD 8.1 billion in development costs relating to assets carrying proved reserves, of which USD 6.7 billion

was related to proved undeveloped reserves.

Group performance

Equinor 2023 Integrated Annual Report 54

Reserves replacement

The reserves replacement ratio is defined as the net amount of proved reserves added for a given period divided by produced

volumes in the same period.

The 2023 reserves replacement ratio was 103% and the corresponding three-year average was 98%, compared to 76% and 62%

respectively at the end of 2022.

The organic reserves replacement ratio, excluding sales and purchases, was 104% in 2023 compared to 89% in 2022. The organic

three-year average replacement ratio was 107% at the end of 2023 compared to 70% at the end of 2022.

Reserves replacement ratio

For the year ended 31 December

2023

2022

2021

Annual

103%

76%

113%

Three-year average

98%

62%

61%

Group performance

Equinor 2023 Integrated Annual Report 55

Reference to Reserves report

A separate reserves report is included as Exibit 15.5 to the 2023 annual report on Form 20-F. The Reserves report is covering proved

reserves required by the Securities and Exchange Commission (SEC). The report may also be downloaded from Equinor`s website at

www.equinor.com/reports.

Group performance

Equinor 2023 Integrated Annual Report 56

2.2 Sustainability performance

To fulfil Equinor’s purpose of turning natural resources into energy for people and progress for society,

an energy transition is needed that is sustainable. This entails providing energy in an economically

viable, safe and secure way, with lower emissions, while also addressing the challenges of nature and

biodiversity loss, and the need for a just transition.

Sustainability approach

Given the interconnectivity and interdependence of sustainability issues and the scale and complexity of the global energy

system, we aim to take a holistic approach and work in partnership with governments, customers, civil society and industry to

deliver a positive impact.

Our approach to sustainability is rooted in material topics that were selected based on their impact and financial materiality to

our business and stakeholders. These material topics are grouped into our three strategic pillars: Always Safe, High Value,

and Low Carbon. For each material topic there is key information on indicators/metrics, management approach, performance

data and evaluation of our progress.

Sustainability governance

We seek to embed sustainability into all levels of governance, risk management, and decision making. Because much of our activity is

delivered by suppliers and sub-contractors, we also expect our supply chain partners to contribute.

The Equinor ASA BoD and CEC regularly monitor and discuss sustainability issues. To ensure the effectiveness of our sustainability

management, regular performance reviews are conducted at multiple levels, including the BoD, the safety, sustainability, and ethics

committee (SSEC), and the CEC. Corporate functions and business areas also evaluate sustainability performance at group level and

business area level, respectively. We use various assurance mechanisms, including internal and external audits, verifications, self-

assessments, benchmarking, and participate in external performance ratings to evaluate our progress and drive continuous

improvement.

Corporate level functions responsible for sustainability-related issues include safety and security, sustainability, people and

organisation and legal. The heads of these functions at group level are responsible for setting strategic direction and reporting on risk

and performance within these topics to the CEC and BoD, including the relevant committees thereof.

The corporate sustainability function oversees aspects related to climate, nature, and social responsibility. The corporate safety

function is responsible for safety, health, work environment and security. The chief compliance officer is responsible for business

ethics and compliance.

The business line executes the company’s sustainability-related ambitions and manages relevant risks and performance. Dedicated

safety, security and sustainability staff in the business line are part of a company-wide functional network and provide advice and

support to the business line.

Sustainability governance in Equinor

CEO

 

The CEO is responsible for overseeing the company's operations, and presents proposal for strategy,

significant investments, ambitions, actions and external reporting.

Strategy

 

Corporate Strategy sets the strategic direction and balance between competing priorities 

Risk

 

Corporate Risk is responsible for risk management framework and processes, and for assessing and

communicating Equinor’s risk profile, including climate-related, safety, business integrity and human rights

risks.  

Finance

 

The CFO drives financial performance within Equinor, and is responsible for the integrated annual report 

Performance

management

 

Performance management sets targets and monitors performance, including for sustainability-related

indicators.  

Safety and

sustainability

 

The corporate sustainability function oversees aspects related to climate, nature, and social responsibility.

The corporate safety function is responsible for safety, health, work environment and security. 

Group performance

Equinor 2023 Integrated Annual Report 57

Legal

 

Legal is responsible for sustainability-related legal advice, including business ethics and compliance.

People and

organisation

 

The role of the PO function is to set functional standards and targets, and drive operational performance.  

Business

line

 

The business line executes the company’s sustainability ambitions and manages relevant risks and

performance. Dedicated safety, security and sustainability staff in the business line is part of company-wide

functional networks and provides advice and support to the business line. 

Working with partners and suppliers

Equinor has ownership shares in many assets operated by other companies. Similarly, other companies have ownership stakes in

assets that we operate. The way we work and follow up on partner-operated assets seeks to ensure that governance, risk and

performance management is compatible with our own requirements and practices. Through the applicable committee structures in the

partnerships, we follow up and support the management of risks and performance related to safety, security, ethics, integrity and

sustainability including climate, nature, and social performance.

A significant part of our value chain consists of activities carried out by suppliers working under contracts awarded by Equinor. The

suppliers generate considerable value to us, our partners and customers, and we believe in strong relationships with high-quality

suppliers. They help us to maintain safe and efficient operation at our facilities, realise new projects and create local supplier and

employment opportunities. We aim to cooperate with suppliers that operate in accordance with our values and who maintain high

standards for health, safety, sustainability and business conduct.

We expect that our suppliers meet our expectations related to ethics and compliance, climate and human rights. Details of our climate

and human rights expectations are shown below.

Climate-related expectations for suppliers

To support our net-zero ambition, we expect our suppliers to:

●

 Have net-zero ambitions and near-term emissions reduction targets.

●

 Publicly disclose scope 1 & 2 emissions and scope 3 emission estimates.

●

 Engage with their suppliers on emission disclosure and net-zero plans.

●

 Report to CDP Supply Chain Program if requested by Equinor.

Human rights-related expectations for suppliers

To support our human rights commitment, we expect our suppliers to:

●

 Ensure fair treatment and non-discrimination.

●

 Provide safe, healthy and secure workplace and accommodation.

●

 Provide fair wages and reasonable working hours.

●

 Respect freedom of assembly, association and the right to collective bargaining.

●

 Prevent modern slavery, child labour and protecting young workers.

●

 Respect affected community members and providing access to remedy.

Stakeholder engagement

In line with our values of being open and collaborative, we actively engage with internal and external stakeholders to discuss our

strategy, approach, and performance. Regular engagement with our stakeholders enrich and challenge our priorities and positions,

and contributes to continuously improvement in our performance and strategic direction.

Throughout 2023, we engaged with numerous stakeholders, including investors, governments, regulators, business partners and

suppliers, customers, local communities, academic institutions, and nongovernmental organisations. The chair of the BoD, the CEO

and senior managers, amongst others, regularly engage in stakeholder dialogues. We consult stakeholders both directly and

indirectly, and we seek to reduce potential language, social and geographical barriers. In 2023, we saw a continued interest in our

climate-related, safety and human rights practices, rising concern over biodiversity and ecosystem impacts, and increased focus on

circular solutions in our stakeholder interactions.

Equinor participates in a wide range of relevant associations and industry initiatives to engage in dialogue, share knowledge and learn

from others. The following are some of the associations that we worked with in 2023:

Group performance

Equinor 2023 Integrated Annual Report 58

CCSA, G+ Global offshore wind health and safety organisation and Global Wind Offshore (GWO), Hydrogen UK, the International

Emissions Trading Association (IETA), International Association of Oil and Gas Producers (IOGP), Ipieca, Methane Guiding

Principles, Offshore Norge, Oil and Gas Climate Initiative (OGCI), Oil and Gas Methane partnership, Renewable UK, Sustainability

Hub Norway, the Task Force on Climate-related Financial Disclosures, the Task Force on Nature-related Financial Disclosures, United

Nations Global Compact, Wind Europe, and the World Business Council for Sustainable Development.

Materiality assessment

A materiality assessment was performed to identify and determine Equinor’s material sustainability topics for 2023. The basis for the

materiality assessment is the approach described in the GRI standard 3 Material topics 2021 universal standard issued by the Global

Sustainability Standards Board, but expanded to a double materiality assessment informed by the approach described in the

European Sustainability Reporting Standards (ESRS 1). The process included involvement of Equinor subject matter experts,

engagement with external stakeholders and calibration and validation by executive management and board committees.

Building on more than 20 years of sustainability reporting and topics included in ESRS 1 appendix A, internal subject matter experts

participated in topic-related workshops to assess our impacts on nature and society, while sustainability-related financial upside and

downside risks were assessed together with our risk assessment experts. For each topic assessed, an overall impact materiality score

and a financial impact score was given based on the guidance in ESRS 1, enabling a ranking of the topics in a two-dimensional plot

for further discussion and calibration.

The views of external stakeholders were included in the assessment based on feedback received through dialogue with different

stakeholder groups. Further we conducted a stakeholder survey, covering a broad range of stakeholder groups representing industry,

suppliers, investors, lenders, non-governmental organisations, academia, and trade unions, in which they were asked to provide

feedback on the impact and financial materiality of the material topics reported in our 2022 annual report. They were also asked to

provide other improvement proposals and additional topics to be considered. The survey, with about 40% response rate, showed a

large degree of alignment with our internal assessment on relative materiality of the different topics. Through the survey we also

received feedback that contributed to the decision to have Respecting human rights as a separate topic and include Diversity and

inclusion in Workforce for the future. The survey also contributed to merging the two low carbon topics; Net-zero pathway and

Emissions reductions, into a single Net-zero pathway topic for current year reporting.

Building on the initial assessment and ranking by Equinor subject matter experts and input from the stakeholder survey, relevant

functional leadership teams and the executive management committee, including the CEO, were engaged through workshops for

calibration and further refinement of the materiality assessment and relative importance of the topics considered. Finally, the Board’s

Audit Committee and the Boards Safety, Sustainability and Ethics Committee were engaged in a joint workshop for the same purpose.

Prior to several of these meetings, participants, including executive management and board members, were asked to do individual

survey-based assessments to provide starting points for the workshops.

The material topics concluded for 2023 are listed in the Material topics table, including assessment of relative impact materiality and

financial materiality for each topic. The topics are grouped into our three strategic pillars: always safe, high value and low carbon.

Group performance

Equinor 2023 Integrated Annual Report 59

Material topics’ performance

ALWAYS SAFE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

SAFE AND SECURE OPERATIONS

Serious Incident Frequency (SIF) (number per million

hours worked)

≤0.3 (2023)

o

0.4

0.4

Total Recordable Injury Frequency (TRIF) (number per

million hours worked)

≤2.2 (2023)

o

2.4

2.5

Completion of cyber security awareness training for

employees - since commenced June 2021 (%)

95% (2023)

l

98

98

PROTECTING NATURE

Serious accidental spills (number of)

0 (2023)

l

0

0

New projects with net positive impact plans (NPI) (number of

projects)

New projects in protected areas or areas of high

biodiversity value to establish a plan aiming to

demonstrate net positive impact (one project in scope

for 2023)

o

0

n/r

Sites with site-specific inventory of key biodiversity features

(number of assets)

Establish site-specific inventory of key biodiversity

features for 35 existing sites

l

35

n/r

RESPECTING HUMAN RIGHTS

No relevant monitoring indicator available

1

Determine a suitable human rights indicator

 (2023)

l

Completed

n/r

WORKFORCE FOR THE FUTURE

Inclusion index score (%)

I: ≥80 (2025)

t

78

77

Group performance

Equinor 2023 Integrated Annual Report 60

HIGH VALUE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATU

S

PERFORMANCE

2023

2022

PROFITABLE PORTFOLIO

Relative Total Shareholder Return (Relative TSR)

(quartile)

Above average in ranking among peers

²

o

8 of 12

6 of 12

Relative ROACE* (peer group rank)

First quartile in ranking among peers

²

l

1 of 12

1 of 12

Return on Average Capital Employed* (ROACE) (%)

>15% yearly (2023-2030)

²

,

³

t

24.9

55.1

Organic Capex* (USD

billion)

2023 outlook guiding 10-11

²

t

10.2

8.3

4

Equity production liquids and gas 

(mboe per day)

2023 outlook guiding

˜3% above 2022

²

o

Growth 2%

(2,082)

2,039

ENERGY PROVISION AND VALUE CREATION FOR SOCIETY

Energy production (TJ to market)

 5

Not applicable

4,365,682

4,265,540

Payments to governments (USD

billion)

Not applicable

31.0

49.2

Share of procurement spend locally (%)

Not applicable

89

89

INTEGRITY AND ANTI-CORRUPTION

Confirmed corruption cases (number of)

0 (2022)

l

0

0

Employees who signed-off the Code of Conduct (%)

≥95% (2022)

l

96

95

Group performance

Equinor 2023 Integrated Annual Report 61

LOW CARBON

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

NET-ZERO PATHWAY

Upstream CO2 intensity, Scope 1 (kg CO2/boe)

<7 kg/boe (2025)

6

<6 kg/boe (2030)

l

6.7

6.9

Absolute GHG emissions scope 1 and 2 (million tonnes

CO2e)

Net 50% emission 

reduction 

(2015 -> 2030)

v

11.6

(-30%)

11.4

(-31%)

Net carbon intensity (gCO2e/MJ)

(Includes GHG emissions from scope 1, 2 and 3 - Category

11, Use of sold products)

)-20% (2019 -> 2030)

-40% (2019 -> 2035)

t

67.0

(-1%)

66.5

(-2%)

Annual gross CAPEX* to renewables and low carbon

solutions (%)

>30% (2025)

>50% (2030)

t

20

14

Renewable energy installed capacity (GW, equity)

12-16 installed (2030)

t

0.9

0.6

Highlighted:

Performance indicator.

1

 Developed two internal monitoring indicators to be piloted in 2024.

² Outlook and ambitions presented at CMU 2023 or in Annual report 2022. 

³ Based on 2023 CMU reference case (70 USD/bbl). 

4

 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.

5

 Oil prod: 2,313,473 TJ, Gas prod: 2,018,514 TJ, Gas to power: 15,514 TJ, Wind to grid: 15,153 TJ and Solar to grid: 3,028 TJ.

6

 2025 ambition changed to 7kg CO2e/boe from 8kg CO2e/boe.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Group performance

Equinor 2023 Integrated Annual Report 62

Always safe

Safety is our top priority. To us, this means safety for our people, the environment, and the societies in which we operate.

Our Always safe material topics aim to safeguard our people, protect our assets and the environment and strengthen our

commitment to a just transition, while building the workforce for the future. 

●

 Safe and secure operations: Ensuring the health, safety and security of people, environment and assets.

●

 Protecting nature: Preventing the loss of and enhancing biodiversity in areas where Equinor operates.

●

 Respecting human rights: Respecting human rights in Equinor’s own activities and supply chain.

●

 Workforce for the future: Building a future-resilient, diverse and inclusive workplace with equal opportunities and human

capital development, where people can unlock their potential.

Safe and secure operations

Indicators/Metrics

Serious Incident Frequency (SIF) (number per

million hours worked)

Total Recordable Injury Frequency (TRIF) (number per

million hours worked)

Completion of cyber security awareness training for

employees - since commenced June 2021 (%)

Key impacts on nature and society

Equinor’s operating activities may have actual and potential impacts on people, the environment

and assets. These include environmental damage and the potential for harm to people, for instance

through work-related illness or loss of life. 

Financial materiality

•

 Operational failures, technical integrity failures, security breaches and other events could

cause significant losses, for instance through harm to our people, assets or the

environment, business interruption, increased costs, regulatory action, fines, legal liability,

damage to our reputation, future business and social licence to operate.

•

 Increasing digitisation and reliance on information technology and operational technology

means that digital and cyber disruption could materially affect Equinor’s operations and

financial condition.

"Safe and secure operations" pertains to the following GRI standards: GRI 306; GRI 403; GRI 410

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 63

Contextual introduction 

We face a diverse range of safety and security risks due to our global presence and wide range of operations. Much of our work is

intrinsically hazardous and represent major accident risks. About two thirds of our activities are undertaken by contractors, and we are

fully committed to strong collaboration with our contractors to safeguard people, the environment, assets, and the societies in which

we operate. 

We aspire for zero harm and believe that all accidents related to people, environment and assets can be prevented and all work-

related illnesses are avoidable. We therefore aim to embed a proactive safety culture, where we continuously learn from our own

experiences and those of our peers, and where safety and security are factored into everything we do. We align our requirements and

guidance with international standards and best practices and aim to comply with relevant legislation and regulations.

Equinor benefits from a long history of safe and secure operations within the oil and gas sector. With a growing portfolio and ambitions

within renewable energies and low-carbon solutions, we aim to capitalise on our safety-related knowledge and expertise, and extend it

to new value chains.

The focus for 2023 was to continue to strengthen safety and security barriers and drive awareness and engagement throughout our

extended teams, and to remain attentive to the risks posed by the prevailing geopolitical environment.

Management approach

To guide us in our journey towards zero harm, we have at a corporate level selected serious incident frequency (SIF) as a

performance indicator and total recordable injury frequency (TRIF) as a monitoring indicator. The SIF indicator measures the number

of actual and potential unintentional serious incidents and is therefore a good indication of our overall safety performance. TRIF

includes injuries involving both Equinor personnel and contractors. In 2023, we enhanced our internal monitoring processes with a

wider set of leading indicators, available across the company via an online dashboard.

Major accident framework

A framework for major accident prevention was developed based on learning from incidents, and recognised industry practice for

high-risk industries. The framework applies to all parts of our business that affect major accident risk, and it is built on three pillars:

safety barriers, safe practices and design, and leadership, culture and organisational frame conditions. Human and organisational

performance principles are embedded in the framework, emphasising the interaction between people, technology, organisations and

processes, and how they can influence the causes of human errors.

Prevention of major accidents is about protecting people and the environment, as well as avoiding serious economic and reputational

damage to Equinor. In 2023, to further implement the framework, we stepped up our awareness and training programmes for our own

employees and have made e-learning training available to suppliers. Also, senior leaders participated in a series of major accident

prevention workshops to increase their competence and focus on major accident prevention.

Group performance

Equinor 2023 Integrated Annual Report 64

Safety roadmap

We aim for continuous improvement of our safety culture and practices, and the “I Am Safety” roadmap sets the direction. The

main pillars in the “I am safety” roadmap are safety visibility, leadership & behaviour, learning & follow up and safety indicators.

These pillars guide the safety work in the company and are based on learnings from best performers in the industry

.

Human and organisational performance (HOP) principles underpin the way in which we develop a proactive and visible safety culture.

The HOP approach provides guidance on how people, technology, organisations and processes interact as a system, and how these

conditions can influence the causes of human errors. HOP is implemented in leadership training across the company.

Group performance

Equinor 2023 Integrated Annual Report 65

Safety industry collaboration

Equinor works closely with suppliers and contractors to achieve a standardised approach across our operations. During 2023, we

hosted regular joint meetings, agreed priorities and targets, and signed collaboration charters to formalise our respective

commitments. Key tools include:

● Life-saving Rules 

Published by the International Association of Oil & Gas Producers (IOGP), the Life-Saving Rules are designed to mitigate risks and

avoid fatalities. Each rule consists of an icon and simple life-saving actions which can prevent work-related fatality. 

● Annual Safety Wheel

A regular calendar of safety awareness initiatives, which defines priority topics and associated actions to strengthen the industry’s

safety culture and ensure a stronger common focus on key challenges. The main quarterly topics are major accident prevention,

personnel injuries, line of fire, and health/working environment.

The Annual Safety Wheel is published on the Always Safe web platform which is a collaboration by Equinor and three other energy

companies. The content on the web platform is open for everyone and the purpose of the initiative is to strengthen the industry’s

safety culture and work together towards zero major accidents and avoid injuries and incidents in our daily work.

To keep abreast of best practices, learn from our peers, and share our learnings we engage proactively with industry bodies such as

the International Association of Oil & Gas Producers (IOGP), Oil Companies International Marine Forum (OCIMF), Oil Companies

Security Council (OCSC), the G+ Global Offshore Wind Health & Safety Organisation, and equivalent national organisations.

Crisis and continuity management 

Although we can mitigate the risks of a serious incident, we cannot eliminate them. We therefore maintain appropriate emergency

response capabilities to limit the consequences of incidents, should they occur. For example, our oil spill response capabilities are in

line with good international practice, and, through membership of local and international oil spill response organisations, we are able

to call on the expertise and resources of the wider industry.

To ensure key people are prepared, we routinely engage in training and simulation exercises involving the emergency services,

several of which were carried out during 2023.

Security Management

Given the geopolitical environment in 2023, we maintained a heightened level of security awareness and preparedness, both within

Norway and across parts of our international operations. The Norwegian government has decided that the Norwegian Security Act will

apply to Equinor, as an undertaking handling classified information and controlling infrastructure and engaging in activities which are

of vital importance to fundamental national functions. We continue to assess the impacts of these obligations.

In 2023, we enhanced our security awareness and leadership training to cover insider risk, both for our own employees and in

collaboration with suppliers. We also continued to strengthen cyber security barriers and improve our response and recovery

capabilities. To identify, assess and manage risks from cyber security threats, we use a variety of tools and processes. Our aim is to

ensure shared situational awareness and common prioritisation across different business areas related to management of risks from

cyber security threats. In addition to assessing our own cyber security preparedness, we also evaluate cyber security risks associated

with our use of third-party service providers. During the year there were no cyber-attacks which had a material impact on Equinor.

Occupational health and safety

The working environment is integral to our efforts to safeguard our people. We focus on systematic and proactive risk management,

and risk owners and assets are aided by HSE professionals in ensuring relevant health and work environment risk overviews. We

routinely monitor and report any work-related illnesses associated with physical and psychosocial factors. The results are reported to

senior management on a monthly basis and visualised on a dynamic dashboard made available across the company.

HSE professionals collaborate closely with HR on topics related to mental health, wellbeing, and diversity and inclusion. We also

collect and analyse data from our employees through our Global People Survey, which includes the Psychosocial Risk Indicator, to

proactively identify units with increased risk.

Group performance

Equinor 2023 Integrated Annual Report 66

Performance disclosure

ALWAYS SAFE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

SAFE AND SECURE OPERATIONS

Serious Incident Frequency (SIF) (number per million

hours worked)

≤0.3 (2023)

o

0.4

0.4

Total Recordable Injury Frequency (TRIF) (number per

million hours worked)

≤2.2 (2023)

o

2.4

2.5

Completion of cyber security awareness training for

employees - since commenced June 2021 (%)

95% (2023)

l

98

98

Highlighted:

Performance indicator.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Serious incidents

In 2023 Equinor experienced a tragic fatality on one of our chartered tankers when a crew member fell overboard in Malaysia.

To learn and improve our safety performance, we evaluate near-misses and undesirable conditions with respect to the potential for

major accidents. Last year we identified two incidents with major accident potential. One of the incidents was a leak from the gas

import pipeline to Peregrino C platform on the Peregrino offshore field in Brazil. The other incident was a well control incident while

performing well intervention operations onshore within the Appalachia operated asset, USA. Both incidents were investigated, and

work is ongoing to evaluate lessons learned, and to assess the need for revision of our major accident prevention training.

In our framework for major accident prevention, a major accident is in general defined as an unplanned event causing four or more

fatalities or injury/ illness cases with significant life-shortening effects and/or major impact on the environment including population of

Relevant policies and standards

•

 The Equinor Book -> Who We Are -> Commitments 

•

 The Equinor Book -> Who We Are -> People 

•

 Code of Conduct 

•

 Security policy

Group performance

Equinor 2023 Integrated Annual Report 67

species, ecosystems, and sensitive areas and/or damage to material assets and/or production shut down, leading to major economic

consequences for Equinor. In 2023, we experienced no events defined as actual major accidents.

Our serious incident frequency (SIF), which includes near misses, ended at 0.4 incidents per million work hours. This is at the same

level as the two previous years, hence the 2023 target of 0.3 was not achieved.  However, there was an improvement over the five-

year period 2019-2023 from 0.6 to 0.4, and the number of serious incidents in 2023 is at a record low.

Process safety

In 2023 there were 10 serious oil and gas leaks (with a leakage rate ≥ 0.1 kg per second). These 10 incidents include the two

incidents with major accident potential. Number of gas leaks was stable over the last five years, and the target of maximum six

leakages in 2023 was not met. 

There was an improvement in number of the more severe (Tier 1) process safety incidents that includes loss of primary containment.

A total of eight incidents were classified as Tier 1 in 2023 while the number for 2022 was 14.

A significant effort was made on safety-critical maintenance on the company’s installations and plants. At the end of 2023, the backlog

in safety-critical maintenance work was reduced by 80% from 2022. This is a continuation of the trend in the past few years. Reducing

this backlog is an important part of the work to prevent major accidents.

Group performance

Equinor 2023 Integrated Annual Report 68

Personnel health and safety

The total recordable injury frequency (TRIF) ended at 2.4, an improvement from 2.5 in 2022, however the 2023 target of 2.2 was not

achieved. The TRIF is still dominated by the less severe injuries, while serious injuries are at a relatively low level.

Health and working environment

Indicators

 

Boundary

 

Unit

 

2023

2022

 

2021

 

2020

 

2019

 

Work-related illness  

Equinor group 

number per year 

212

131

162 

161 

135 

Sickness absence  

Equinor ASA

employees 

percentage of

planned work

hours 

4.8

5.1 

4.6 

4.2 

4.4 

Post pandemic, there was an increase in work-related illness, especially due to psychosocial factors. The most important factors are

psychosocial, ergonomic and noise. A company initiative was launched to raise awareness about work-related illness and to improve

learning from each case. This has led to increased reporting, improved quality of recording and better follow-up. 212 cases were

recorded in 2023.

Since 2020, the total level of absence from sickness has increased to reach 5.1 (as a percentage of planned workhours) in 2022. In

2023, the level of sickness absence improved, down to 4.8.

Security incidents 

Security threats are monitored and reported on a frequent basis and risks are managed across the physical, cyber and personnel

domains. Equinor experienced some cyber-related incidents during the year. There was increased targeted activism against Equinor’s

operations from environmental groups. None of the security incidents, including those reported to us by our third-party partners, had

any material impact on our people, assets, operations, or financial results.

Group performance

Equinor 2023 Integrated Annual Report 69

Security

2023

2022

2021

2020

2019

Percentage of security

personnel who have received

formal training in the

organisation's human rights

policies - South America and

Africa

1

Equinor

group

percentage

87

87

91

85

n/r

Security e-learning training for

employees and contractors

Equinor

group

number of

participants

28659

19,580

15,694

n/r

n/r

Completion of cyber security

awareness training for

employees - since

commencement in June 2021

Equinor

group

percentage

98.3

97.7

n/r

n/r

n/r

¹ As signatories of the Voluntary Principles on Security and Human Rights (VPSHR), Equinor does not use armed guards unless it is strictly necessary. In certain locations the threat is of

such a nature that the arming of guards is crucial, while in others is it not possible to procure security services without the inclusion of firearms

.

Performance evaluation

For 2023 the tragic fatality on one of our chartered vessels dominates our overall safety picture.

Further, two incidents in 2023 had major accident potential which reminds us of the importance to continue our efforts to prevent

major accidents.

The total recordable injury frequency (TRIF) is higher when compared to industry benchmarking. This area still represents a

challenge, and we continue to work to understand the causes and how to mitigate risks. Since 2017, while there was a positive

development for Equinor employees, TRIF for contractors has shown little improvement and strong collaboration with our contractors

is essential.

 

Based on our 2023 performance, we see an overall improvement on safety indicators, but recognise the need to continue to improve

our safety performance.

Given the measures reinforced in 2023, we believe our approach is adequate to improve our performance

and close the gap on our health and safety targets. Security training and awareness will continue as mitigating action to reduce risks

from security threats. These objectives remain a top priority for Equinor’s management.

Group performance

Equinor 2023 Integrated Annual Report 70

Protecting nature

Indicators/Metrics

Serious accidental spills (number of)

New projects with net positive impact plans (NPI)

(number of projects)

Sites with site-specific inventory of key biodiversity

features (number of assets)

Key impacts on nature and society

Equinor’s operating activities have actual and potential impacts on nature. Impact drivers include

potentially serious uncontrolled discharges and operations in or near protected areas and areas of

high biodiversity value.

Financial materiality

•

 Societal and policy shifts related to protection of nature can affect for instance our access to

capital markets and finance, reduce availability and attractiveness of opportunities, lead to

diminishing returns and affect our financial performance.

•

 Reputational impacts associated with our performance on nature-related issues can support

or damage our competitiveness and licence to operate. 

•

 Failure to comply with environmental laws or regulations could for instance lead to legal

liability, fines, loss of business and materially impact our financial results.

"Protecting nature" pertains to the following GRI standards: GRI 301; GRI 303; GRI 304; GRI 305; GRI 306

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 71

Contextual introduction

Management of our activities and their potential impacts on the marine environment continues to be a priority for us. Historically our

operated onshore activities were limited to oil and gas, including the drilling and fracturing of wells in the US. Our growing offshore

wind portfolio, our recent investments in – and our ambitions for – CCS, solar, hydrogen and battery storage projects underline the

increasing importance of our management of onshore environments. Our operations have actual or potential impacts on nature

through pollution, including both regular and uncontrolled discharges to sea or land and emissions to air.

Our use of land and sea areas and related disturbances, for example noise, collisions and barrier effects, and introduction of alien

invasive species, may also negatively impact biodiversity and ecosystems. This is particularly important if our activities are in or near

protected areas or areas of high biodiversity value. Many potential impacts on nature are highly location dependent, and we make

information from project-specific impact assessments available on our website. Our locations with the largest freshwater consumption

are in Norwegian coastal areas with high annual precipitation and in the Appalachian where water for our well fracturing and clean-up

is sourced from the water-rich Ohio river. Freshwater use is therefore not considered among the most material topics to us.

Through our partners and suppliers, we can also have indirect impacts on nature, for example in activities where large quantities of

materials like metals, cement and chemicals are used. The shift to a more resource-efficient, circular economy is a key opportunity to

reduce impacts, and this is increasingly being reflected in stakeholder expectations and requirements, for example in the context of

the EU Taxonomy and auction criteria for new wind farm developments. Growth in renewables is core to our Energy transition plan,

and we work to understand how best to achieve this ambition while avoiding adverse impacts on nature, for example through land/sea

use change.

Certain dependencies on nature and ecosystem services have direct relevance for Equinor. For example, healthy oceans provide

bioremediation services when we discharge produced water containing minor fractions of oil and chemicals to sea from some of our

offshore platforms. Access to natural resources such as wind, sun and hydrocarbons for our energy production can also be regarded

as a dependency of nature. Our most important dependencies are assessed to be indirect dependencies through natural resources

used in our supply chains.

Relevant nature-related risks for Equinor include: risks related to new policy development, laws and regulations; reputational impacts

related to our performance; and market risks including access to acreage for development of new projects. The development of the

nature agenda also provides important opportunities. Strong performance can and should be a competitive advantage. We

acknowledge the increased focus on nature from consenting authorities, particularly seen in Europe related to the bidding criteria for

renewable projects.

Management approach

For decades, our zero-harm ambition has guided our work. In line with the mitigation hierarchy, we will continue to prioritise avoiding

or minimising adverse impacts. As indicated in our Energy transition plan and set out in our Biodiversity Position, we now aim to go

beyond this principle by pursuing a net-positive biodiversity approach. Since 2023, new Equinor-operated development projects

located in protected areas or areas of high biodiversity value, are required to develop a plan containing measures for mitigating

negative effects and measures aiming to demonstrate net-positive direct impacts on biodiversity.

To manage our impacts on nature, and comply with applicable laws and regulations, we aim to apply recognised environmental

management practices, such as the mitigation hierarchy, the waste hierarchy, the precautionary approach, best available techniques,

and the ISO 14001 environmental management principles. These environmental management practices are embedded in our

governance, risk and performance framework.

In the planning phase of all our assets, before construction or operations can commence, a key part of our management approach is

environmental, social risk and impact assessments. This is of particular importance when planning for operations in or near sensitive

areas, which for example are present in the Arctic. In addition to stakeholder engagement, these processes include baseline studies,

surveys, monitoring programmes, and collaborative research projects.

Collaborating in and learning from global initiatives

To enhance our approach to the protection of nature, we take part in and/or closely follow a range of industry initiatives and, in 2023,

there were many important developments on the global nature agenda. For example:

Group performance

Equinor 2023 Integrated Annual Report 72

●

 The Taskforce for Nature-related Financial Disclosures (TNFD) published its recommendations in September 2023. We are

a member of the TNFD Forum, and work with peers to further our understanding of the related risks, opportunities and

specific disclosures for the energy sector.

●

 Through our membership of the World Business Council for Sustainable Development (WBCSD), we supported its

development of a Roadmap to Nature Positive for the energy system.

●

 We contributed to various public consultations exercises, such as the Norwegian government’s expert commission on nature

risk.

●

 We continued to support a project led by the International Union for Conservation of Nature (IUCN) which aims to identify

good practices for renewable energy development, specifically addressing the assessment of cumulative impacts and spatial

planning.

Reducing pollution and other adverse impacts on nature

Our governance, risk and performance framework seek to enable us to systematically manage environmental aspects. Our priority is

to avoid or minimise potential adverse impacts. For example, substitution of chemicals for less environmentally harmful ones is part of

our continual improvement efforts.

In 2023, we continued our focus on environmental regulatory compliance and made improvements at our Norwegian oil and gas

assets. This included strengthened management focus, with new competence requirements for operational leaders, development of

new training programmes, and related operational measures.

We also worked with the Norwegian authorities to map and monitor the spread of Didemnum vexillum – an invasive species

commonly known as sea vomit – and established our own ongoing monitoring programme. While the species was not observed at any

of our installations or harbours, we made an important contribution by monitoring its development and implementing measures to

prevent its spread.

Improving responsible resource use and circularity

In locations where freshwater resources might be at risk, we are committed to avoiding irreversible harm to these. Through the supply

chains for both our oil and gas and renewables activities, we purchase large quantities of steel, cement and other metals and

materials. In 2023 we matured our understanding of what circularity may imply for Equinor. We conducted an assessment to identify

the most material circularity-related topics, and where the most immediate opportunities lie. These include our approach to waste

management in general and in decommissioning in particular, embedding circular options in design of facilities, sourcing of secondary

materials, extending the useful life of facilities, and pursuing partnerships to achieve more circular value chains. Specific recycling

opportunities include wind turbine blades, critical raw materials, and materials from the decommissioning and removal of offshore

facilities.

Pursuing positive impacts on nature

In line with our Biodiversity Position, in 2023 we started to implement a novel site-specific inventory and net-positive impact (NPI)

plans. The site-specific inventory is a company-wide overview of key biodiversity features near our installations. When developing our

net-positive approach, it was useful to draw on our participation in research programmes and industry partnerships, such as the UN

Environment Programme World Conservation Monitoring Centre’s (UNEP-WCMC) Proteus Partnership.

We recognise that there are currently no global standards for net-positive approaches, and that there are certain knowledge gaps, for

example, related to the feasibility and costs of potential measures and how to monitor effects, particularly in a dynamic marine

environment. For this reason, we continue to invest in research and development projects, and examples from 2023 include research

on nature-based solutions, nature-inclusive design of offshore wind farms, and metrics and indicators for nature.

Sharing our insights and data externally

One of the ways Equinor can have a positive impact is by sharing our biodiversity data with academia and other external stakeholders

and, in 2023, we worked on the technical solutions needed to enable broader data sharing. We continued our engagement in the UN

Ocean Decade Corporate Data Group, co-hosted by the Intergovernmental Oceanographic Commission (IOC) of UNESCO and

Fugro. The aim of the group is to make privately held ocean data available for scientific research and decision-making by addressing

challenges for data sharing.

Relevant policies and standards

•

 The Equinor Book -> Who We Are -> Commitments

•

 Code of conduct 

•

 Equinor Biodiversity position

Group performance

Equinor 2023 Integrated Annual Report 73

Performance disclosure

ALWAYS SAFE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

PROTECTING NATURE

Serious accidental spills (number of)

0 (2023)

l

0

0

New projects with net positive impact plans (NPI) (number of

projects)

New projects in protected areas or areas of high

biodiversity value to establish a plan aiming to

demonstrate net positive impact (one project in scope

for 2023)

o

0

n/r

Sites with site-specific inventory of key biodiversity features

(number of assets)

Establish site-specific inventory of key biodiversity

features for 35 existing sites

l

35

n/r

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Group performance

Equinor 2023 Integrated Annual Report 74

Selected environmental performance data for 2023 is shown in the table. A complete set of performance data can be found in our

Sustainability datahub at equinor.com.

Indicators

Units

2023

2022

2021

2020

2019

SO

x

 emissions

ktonnes

1.1

1.1

0.9

1.3

2.2

NO

x

 emissions

ktonnes

30

32

34

36

41

Non-methane volatile organic compounds

ktonnes

33

23

26

35

40

Accidental oil spills (net volume >0)

Number

m

3

132

111

120

136

219

18

33

40

154

8,913

Other accidental spills (net volume >0)

Number

m

3

132

122

98

117

204

370

302

3,335

3,997

57

Serious accidental spills

Number

0

0

0

2

3

Regular discharges of oil in water to sea

ktonnes

1.0

1.1

1.1

1.3

1.2

Hazardous waste generated 

ktonnes

339

304

280

318

313

Non-hazardous waste generated

ktonnes

34

37

33

29

40

Exempt waste generated - drill cuttings and solids

from US onshore operations

ktonnes

16

1.2

0.09

17

84

Exempt waste generated - produced water and

flowback water from US onshore operations

million m

3

0.02

0.05

2

5

7

Total freshwater withdrawal and consumption 

million m

3

6 

6 

8 

8 

12 

New projects with net positive impact plans 

Number 

0 

n/r 

n/r 

n/r 

n/r 

Sites with site-specific inventory of key biodiversity

features 

Number 

35 

n/r 

n/r 

n/r 

n/r 

Pollution and other adverse impacts on nature

Non-GHG emissions and discharges

 - Over the past four-to-five years, non-GHG emissions to air and regular, permitted discharges

of oil in water to sea have improved slightly, or remained at the same level. The decrease in NO

x

 emissions is mainly due to

decreased drilling and well activity in 2023.

Electricity from Hywind Tampen also contributed to a reduction in NO

x

 emissions from the Gullfaks A and Snorre A platforms. In the

other direction, increased NO

x

 and SO

x

 emissions at Peregrino C, which had its first full year of operation in 2023. The increase of

emissions of non-methane volatile organic compounds from 23 thousand tonnes in 2022 to 33 thousand tonnes in 2023 was mainly

due to resumption of production and change in methodology for fugitive emissions at Peregrino.

The decrease in regular discharges of oil in water to sea was mainly caused by higher injection rates and improved oil in water quality

at Mariner A and planned and unplanned production stops.

There were no serious accidental spills in 2023. The total number of accidental oil spills and other spills increased from 2022 to 2023.

However, the total volume of accidental oil spills decreased. The main reason for the increased volume of other accidental spills was

an unintended discharge of 155 m

3

 from a drain tank at Njord A due to ejector suction effects from wind and waves during bad

weather.

Group performance

Equinor 2023 Integrated Annual Report 75

Land- and sea-use change

-

A summary of our presence in relation to protected areas and areas of high biodiversity value is shown

below and a complete overview is available in the Sustainability Data Hub on equinor.com. The overview includes a short assessment

of potential impacts of the activities on the protected areas/areas of high biodiversity value. The number of assets and licences inside

protected areas remained unchanged from 2022 to 2023. The number of assets in the proximity of protected areas/areas of high

biodiversity value increased from 2022 to 2023. The increase is due to onshore wind and solar activity in Poland and Brazil, and

battery storage facilities in the UK.

Equinor is technical service provider on behalf of other operators, resulting in inclusion of the Europipe I and II pipelines, both of which

cross the Wadden Sea UNESCO World Heritage Site (WHS). The Wadden Sea was included in the WHS list in 2009, while the

pipeline installations were completed in 1995 and 1999, respectively. We otherwise did not operate within other sites on the WHS list

or sites in the International Union of Conservation of Nature (IUCN) category 1a (“Strict nature reserve”) or category 1b (“Wilderness

area”).

1.

 “Assets” means all Equinor group operated activities within solar, onshore and offshore wind, battery storage, onshore and offshore

production and processing facilities for oil and gas including pipelines and other linear infrastructure, in operation or under construction.

2.

 “Licences” includes only those licences where there were operational activities other than 1) above, e.g., seismic acquisition, exploration

drilling, site surveys.

3.

If several protected areas (PA) or areas of high biodiversity value (AHBV) are present within a proximity category around a given asset or

operation, they are counted as one. If a given PA or AHBV are within proximity categories for several assets or operations, it is counted in for

each of these assets or operations. Subsea installations within a field are included in the counting of the platform it is tied in to. For existing

linear infrastructure like pipelines, service lines and cables, only the ‘Inside’ and ‘Adjacent’ categories are applied. In cases where linear

infrastructure is installed during a given reporting year, all proximity categories are applied. Information on geographic location of cases

represented in the table above can be found in the “Sustainability performance data hub” on Equinor.com.

Resource use, circularity and waste

Hazardous waste quantities increased from 2022, mainly due to increased volumes of water dispatched from Mongstad for further

treatment. This water stems from well cleaning at offshore platforms. Drill cuttings and solids exempt waste quantities for our US

onshore operations increased due to higher drilling activity, while the produced and flowback water quantity was low due to no well

fracturing activity.

Withdrawal and consumption of freshwater in 2023 was 6 million m³, the same level as in 2022. We had no oil and gas production in

areas of high or extremely high baseline water stress as defined by the World Resources Institute’s Aqueduct® tool. Four solar and

wind assets in Poland are in such areas. However, water consumption for these assets is insignificant.

Pursuing positive impacts on nature

Group performance

Equinor 2023 Integrated Annual Report 76

NPI plans are being developed for several assets, for which the Rosebank project in the UK and the Empire Wind project in the US

are first in scope. The development of the NPI plan for Rosebank was planned completed in 2023, but it was delayed and will continue

into 2024.

In 2023 we developed our site-specific inventory of key biodiversity features for our operated oil and gas and offshore wind assets.

Subsidiaries in our onshore renewables business are not yet included in the scope.

Performance evaluation

Pollution and other adverse impacts on nature

Non-GHG emissions to air and discharges of oil in water to sea vary with activity level, production stops and start-up of new fields.

However, we saw improvements relating to better cleaning of produced water and increasing use of renewable electricity as a cleaner

energy source for power generation at some platforms.

For the last two years, we have avoided the large spill volumes we experienced in 2019 to 2021. However, we are not satisfied with

not seeing a downward trend in the number and volume of accidental spills from 2022 to 2023. Although we see a decreasing

occurrence of breaches of permits since the previous year, the improvement activity addressing governance, competence, awareness

and performance in this area, continues.

The increased number of assets and licences in the proximity of protected areas and areas of high biodiversity value, related to our

onshore renewables activity, shows the importance of good management approaches aiming to avoid adverse impacts on these.

Improvement activities are ongoing to update internal requirements and practices and improve mapping and understanding of

biodiversity features around our facilities.

Resource use, circularity and waste

The increased volumes of hazardous water arising from well cleaning at offshore platforms, and dispatched for further third-party

treatment, is an issue we are addressing and aim to manage better. Our improvement activity on circular economy will continue in

2024, focusing on improving awareness and practices, for example to extend useful life of facilities and increase re-use of equipment

and recycling of materials.

Pursuing positive impacts on nature

The new site-specific inventory of key biodiversity features developed in 2023 constitutes an important step towards better

understanding and management of nature around our facilities. NPI plans are being developed, in line with our Biodiversity position.

We consider these developments satisfactory.

Group performance

Equinor 2023 Integrated Annual Report 77

Respecting human rights

Indicators/Metrics

Human rights (HR) assessments of suppliers conducted

Workers interviewed

Countries in which supplier HR assessments undertaken

Employees working with our suppliers trained (classroom

course)

Contextual introduction

Our commitment to conduct our business consistently with the United Nations Guiding Principles on Business and Human Rights

(UNGPs) to respect the rights of people affected by our business stands firm and is also fundamental to a just and responsible

transition.

Understanding and managing the risk of adverse human rights impacts related to our activities is at the core of our human rights

commitment. This is consistent with the UNGPs, the 10 principles of the UN Global Compact and the Voluntary Principles on Security

and Human Rights. We recognise that our activities may cause, contribute to, or be linked to adverse human rights and other social

impacts, especially in jurisdictions with weak regulatory frameworks, insufficient enforcement, and where our activities face inherent

risks.

Equinor can be linked to human rights impacts related to our own workforce, workers in supply chain and communities affected by our

business. In this section we address the potential

adverse

 human rights impacts Equinor may cause, contribute to or be directly linked

to.

We have had a stand-alone Human Rights Policy since 2015. In the Human Rights Policy, we define particular commitments related

to our key risks (commonly referred to as ‘salient issues’), which guide our human rights due diligence efforts.

These areas of particular priority are:

●

 Discrimination

●

 Working conditions

Key impacts on nature and society

Equinor has operations and supply chains in geographies where human and labour rights may

be at risk. With about 23,000 employees, presence in approximately 30 countries and around

8,000 direct suppliers, our activities could impact a high number of people.

Financial materiality

•

 Failure to uphold our Human Rights policy, or a breach of human rights due diligence and

reporting legislation could lead to fines, damage our reputation and social licence to

operate. or potentially lead to project delays.

"Respecting human rights" pertains to the following GRI standards: GRI 409; GRI 411; GRI 414; GRI 416

For more information regarding our risk factors, please visit 5.2 Risk factors.

Equinor's account for due diligence under the requirements of the Norwegian

Transparency act can be found in the stand-

alone Human Rights Statement.

Group performance

Equinor 2023 Integrated Annual Report 78

●

 Forced and child labour

●

 Affected community members

●

 Security activities 

Based on our current portfolio, priorities, and experience from human rights risk assessments, we consider the most severe human

rights issue to be the risk of poor working conditions and indicators of forced labour within our supply chains.

Management approach

Our Human Rights Policy and the Code of Conduct apply to all our activities. Further internal requirements and work processes for

conducting human rights due diligence are part of our management system. Through our risk management system, we work to identify

adverse human rights risks and impacts, and seek to prevent, mitigate or remediate such, as relevant in each situation.

To further guide our efforts in line with the Human Rights Policy, we define general and specific human rights priorities for different

parts of our business, and when deciding where to focus, the concept of severity and likelihood is applied.

Governance of human rights issues is multi-tiered. Assessing and addressing human rights risks in our daily operations is a business

line responsibility. Defining priorities is based on regular risk and portfolio assessments and supported by a corporate team of human

rights experts to ensure alignment across the portfolio.

The executive-level human rights steering committee continues to serve as an advisory group tasked with providing guidance and

facilitate experience transfer and good practice, supporting actions to address Equinor’s human rights risks, and facilitating

engagement with and reporting to the CEC and BoD.

To understand risks related to our new activities at large, we perform environmental and social impact assessments. These are an

essential part of our project development process and include consultation with potentially affected stakeholders. What we learn

through these consultations is used to inform our understanding of and address potential impacts on local stakeholders and

communities, including indigenous peoples. Impact assessments in the early phases of project planning inform decision making and

allow for more effective mitigation.

Working conditions in our supply chains

Managing the risk of forced labour and poor working conditions in our supply chains, which was increased by global instability and

rising inequality, is a priority. Accordingly, a set of “Human Rights Expectations of Suppliers” was developed. We continue to actively

look for indications of forced labour and unacceptable working conditions in our supply chains, with a particular focus on fabrication

and construction activities across Asia and in our core countries such as Brazil. For certain high-risk activities, we may also perform

specific human rights risk assessments, typically supported by external human rights experts. Worker dialogue allows us to gain a

better understanding of potential issues and to respond with appropriate actions. We follow up with suppliers based on identified risks,

including through verifications, tracking of actions and ongoing dialogue. We expect all current and future suppliers to be familiar with

and meet our general human rights expectations. Based on factors like scope and location of delivery, which help define risk level, we

seek to include specific human rights clauses in our contracts.

Relevant policies and standards

•

 Human rights policy

•

 The Equinor Book -> Who We Are -> Commitments

•

 Code of Conduct 

•

 Human Rights Expectations of Suppliers

Group performance

Equinor 2023 Integrated Annual Report 79

Performance disclosure

ALWAYS SAFE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

RESPECTING HUMAN RIGHTS

No relevant monitoring indicator available

1

Determine a suitable human rights indicator

 (2023)

l

Completed

n/r

1

Developed two internal monitoring indicators to be piloted in 2024.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

During 2023, we continued our efforts to further integrate human rights practices into the way we work, supported by regular senior

leadership engagement. We further strengthened our management system and adopted global Equinor working requirements for

human rights due diligence. We continued our work to improve our internal framework for recording and monitoring human rights data.

In our efforts to address our most salient issue, forced labour like conditions in our supply chain, we developed two indicators for

internal monitoring that will be tested from 2024.

Labour rights and decent work

We require new suppliers to be screened for social criteria. In line with our approach to performing risk assessments in the early

phases of our projects, we assessed 303 suppliers for social impacts in 2023. From this, 124 suppliers were identified as having

significant gaps. 85% of these suppliers have through closing of gaps become qualified, while the rest of the suppliers are yet to

complete their improvement plans. If we find that a supplier is not willing or able to implement necessary improvements, the supplier

might not be awarded a contract. On one occasion, a supplier did not follow up Equinor’s requirements to become qualified, and the

relationship was discontinued.

We continued to prioritise HRDD work in project planning and procurement, as we believe early engagement with possible suppliers is

key to effectively avoid or mitigate potential adverse impacts and facilitate compliance with our human rights expectations.

Based on our priorities, in 2023, we performed 25 onsite supplier assessments supported by external human rights experts, resulting

in 642 workers interviewed and a total sum of 283 total findings in seven countries (Angola, Brazil, India, Indonesia, Norway, South-

Korea, USA). The most serious findings relate to indicators of forced labour as defined by the 11 ILO Forced Labour Indicators.

Although all such findings are concerning, our primary focus was towards payment of recruitment fees, retention of identity papers and

lack of freedom of movement. The reason for this is that we consider presence of these indicators to exacerbate the risk of forced

labour. No actual impacts related to the three priority forced labour indicators noted above were identified in 2023.

In addition to the assessments referenced above, several of our direct suppliers have started to perform third party on-site

assessments including worker interviews. Equinor does not currently have reporting procedures in place to be able to track findings

and outcomes of such assessments. However, we engage on a case-by-case basis with the supplier in addressing findings and

follow-up actions are taken accordingly.

At times, the risk of adverse human rights impacts we encounter is not specific to our supply chains, partners, or projects. Rather,

such risk can be more systemic in nature and form an integral part of an economy, a particular sector, or an industry. Such systemic

challenges are often too large for one company alone to take on successfully. In 2023, we continued our efforts to address systemic

challenges related to our supply chains. Such initiatives are further described in the Annual Human Rights Statement for 2023.

Group performance

Equinor 2023 Integrated Annual Report 80

Labour rights and working conditions in the supply chain

Indicators

Boundary

Unit

2023

2022

2021

2020

2019

2018

Human rights (HR) assessments of

suppliers conducted

Equinor group

number

25

24

30

37

50

75

Workers interviewed

Equinor group

number

642

808

974

343

650

1000

Countries in which supplier HR

assessments undertaken

Equinor group

number

7

11

10

9

16

20

Employees working with our suppliers

trained (classroom course)

Equinor group

number

102

264

128

190

409

514

Community risks and impacts

Equinor has set up community grievance mechanisms in countries where we have activities, within oil and gas and renewables, such

as Argentina, Brazil Poland and South-Korea. Equinor received 14 grievances through our local grievance mechanisms in Tanzania

and Brazil, all of which were handled and are now closed. Further, no actual adverse impacts of indigenous peoples’ rights were

identified during 2023.

Equinor, together with Shell, continued in 2023 to work towards mitigating human rights risks and impacts associated with the

potential LNG site in Tanzania. Since finalising the resettlement of families from the land designated for the project, Shell and Equinor

have contracted a third-party service provider to run a post-compensation livelihood programme available to all those that were

resettled. The agricultural livelihood programme has commenced, and other sub-programmes are being planned. This was followed

up with monitoring and evaluation and is supported by a local grievance mechanism.

Equinor has over the course of the development process for planned offshore wind projects in the US worked to address concerns

regarding the potential impact of these activities on local communities. This includes engagement with potentially affected fishing

communities and assessing potential impacts that may disturb ancient, submerged landforms culturally significant to tribal nations.

Equinor has agreed to more than 15 measures to avoid or minimise impacts to tribal communities during construction and operation of

Empire Wind.

Governance and capacity building

The BoD’s Safety, Sustainability and Ethics Committee received an in-depth human rights report in 2023 related to the risk of forced

labour in our supply chain.

The human rights steering committee has continued meeting regularly and topics of discussion include risk mitigation, frameworks for

performance and reporting, industry collaboration to increase leverage and indigenous people's rights.

We continued to build our corporate capabilities and competence through the recruitment of specialists, establishment of an internal

network between function and business, training and on the job-learning.

Group performance

Equinor 2023 Integrated Annual Report 81

To mark the international Human Rights Day on 10 December, Equinor held internal awareness sessions focusing on indigenous

people's rights. 

Information requests according to the Transparency Act

In 2023, Equinor received six information requests, which were all responded to within the legislative deadline.

Conclusion of complaint filed to NCP Norway

Early 2023, the National Contact Point for Responsible Business Conduct (NCP Norway) issued a final statement regarding the

complaint filed against Equinor and others following a 2017 major crane accident at a Korean yard. The final statement was issued

following extensive but ultimately unsuccessful mediations. The NCP Norway statement did not identify any violations of the OECD

Guidelines for Multinational Enterprises by Equinor but did include a set of recommendations to the group of companies involved in

the complaint process. The NCP complaint process was, through the final statement, formally concluded.

Performance evaluation

We are pleased with the approval in 2023 of the strengthened internal work processes for human rights due diligence. As we outlined

in the 2022 Integrated annual report, these efforts were aimed at further integrating human rights practices into the way we work. The

consistent implementation of these processes will enable greater systematic and documented due diligence across the portfolio.

Our efforts to improve our internal practices for recording data related to our human rights due diligence efforts are over time intended

to improve our ability to monitor and evaluate performance, and to prepare for upcoming legislation on sustainability reporting. 

We continue to see risk of adverse human rights impacts within our supply chains, particularly related to poor working conditions and

indicators of forced labour. Within significant parts of our portfolio, typically major construction projects where there is good visibility

and extensive experience, we consider that our efforts and performance have improved over time and are currently adequate.

However, we acknowledge that within newer value chains, such as low carbon solutions and renewables, and on lower-level tiers of

the supply chain, we currently have less insight and active engagement. We seek to gradually increase the coverage of our human

rights due diligence efforts as we evolve our business, while improving consistency in how we work.

A key priority in the coming year is to initiate a review of our Human Rights Policy considering the external context, our strategy and

our portfolio of business activities. As part of this initiative, we intend to perform a corporate-wide saliency review to guide our future

efforts and facilitate effective human rights due diligence within key areas of risk.

Group performance

Equinor 2023 Integrated Annual Report 82

Workforce for the future

Indicators/Metrics

Inclusion index score (%)

Contextual introduction

A changing portfolio of capabilities

Equinor’s approach to building the workforce for the future within the realm of low carbon solutions and renewable energy consists of

different elements. A key priority is upholding a strong safety culture to ensure the health, safety and security of people. Additionally,

our capabilities will need to evolve to align with what is needed for the company to succeed in the energy transition through adaptation

of new technology, people development, the external market, recruitment, new ventures, and regulatory demands.

Today’s workforce supports our portfolio of activities and will continue to evolve as we grow within low carbon and renewable energy.

The capabilities we need in our future workforce are different than what we have today, but our strong expertise within oil and gas

provides us with a great foundation for development and reapplication of competences. Today, 14% of our workforce is aged 60 or

above, and we aim to harness their expertise as we develop the workforce to meet future goals.

We believe that all employees should own their development and we strive to provide opportunities for everyone to develop future-fit

competencies. We believe initiatives to build skills and prepare our people for the future should be equally available to all Equinor

employees, regardless of age, gender, and nationality.

We are dedicated to conducting our operations in a safe and socially responsible manner to adapt to the just energy transition and we

embed diversity and inclusion (D&I) in our human resources (HR) processes. In Equinor, D&I aligns with our values, our focus on

safety and our purpose as a company.

Management approach

Enabling our workforce for the future

We believe the right technology has the power to engage employees in learning and development and needs to be supported by HR

processes that encourage both career and competence development. In 2023, we initiated the development of new HR IT technology

that will assist us to further operationalise our D&I strategy by enabling fair HR processes. The new technology will empower

employees to develop skills in careers that inspire them, while also providing developmental opportunities. We are planning to begin

implementation of the new technology in 2024.

In Equinor, we aim to empower all employees’ development and provide diverse learning opportunities. In 2023, employees spent

over 624,000 hours on formal learning. These learnings aim to improve competence development and facilitate innovation and

Key impacts on nature and society

Equinor employs a large and diverse workforce of about 23,000 employees, with operations and value

chains in approximately 30

countries. 

Financial materiality

•

 Equinor depends on workforce capacity and competence to deliver on its strategy, including the

transition to a broad energy company. Equinor may not be able to secure the right level of

workforce competence and capacity, or to leverage efficient organisational operating models, to

create expected value through business operations and strategy execution.

"Workforce for the future" pertains to the following GRI standards: GRI 401; GRI 402; GRI 404; GRI 405; GRI 406; 407; GRI 409

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 83

digitalisation. Externally, we actively interact with students and young individuals in Norway to promote the fields of science,

technology, engineering, and mathematics (STEM), along with other competencies crucial for our future needs.

Equinor’s workforce includes diverse professional disciplines crucial to our portfolio. In 2023, we strengthened operational leadership

through training and reviewed our senior professional network to ensure that our expertise aligns with the energy transition. Based on

the findings, we plan to expand our internal and external networks to reapply our expertise in new areas such as low carbon solutions

and renewables. This year, we began implementing initiatives to identify and address any gaps in commercial and technical

competencies related to low carbon solutions and renewable energy.

One of the strategies to address the growing need for low carbon solutions and renewable energy, is acquisition of and investment in

relevant production and technology companies within our industry. Between 2021 and 2023, we invested in five companies within

onshore renewables, welcoming more than 300 new colleagues with renewables competencies and local market knowledge to the

Equinor group.

Interacting with companies in the energy industry in new ways enables us to transfer specific competence. Within the Equinor &

Techstars Energy Accelerator programme run in 2023, mentors, experts, and senior leadership in Equinor supported nine start-ups

from six different countries in accelerating their development in shaping and serving the energy sector.

Fair and objective recruitment

Equinor recruits new employees across our locations, including graduates, interns, apprentices, and experienced workers. We

continuously use our annual workforce planning process to pinpoint where today’s workforce needs to be developed to meet future

ambitions. We are dedicated to maintaining a transparent talent marketplace, embedding the Equality and Anti-Discrimination Act into

people processes to promote equality and ensure equal opportunities for all. One of our goals as a global organisation is to join forces

with local institutions to develop local talent pools. This is becoming increasingly important as we see a scarcity of people in the

market.

In preparation for recruitment processes, we normally engage hiring managers with recruitment training to ensure fair and unbiased

assessment of all applicants. We currently have a global ambition of a 50:50 balance in gender and nationality (Norwegian and other

than Norwegian) when hiring for our corporate graduate programme, and an ambition of one-third female for our apprenticeship

programme in Norway. We are further re-evaluating our D&I recruitment strategy, and these targets ensure that we build a diverse

and robust pipeline of talent to make up our workforce of the future. Prioritising fair and objective recruitment practices in combination

with a strong safety culture can help us to establish a solid foundation for a healthy and successful workforce.

Diversity and inclusion (D&I)

Equinor is committed to being transparent about our performance, monitor relevant performance indicators, integrate D&I into our

business strategy and measure progress. Our agreement with unions (Likestillingsavtalen) applies to all employees in Equinor ASA to

ensure equal treatment regarding recruitment, pay, working conditions, training, and career development. We continuously use the

global annual people survey (GPS), our ethics helpline, and leadership to identify and manage risks, obstacles, causes and measures

of discrimination in the workplace. To deliver on our purpose of turning natural resources into energy for people and progress for

society, we rely on diversity of thought to find the best solutions and make good decisions, which is stated in the functional

requirements for HR, part of our governing documentation. We believe initiatives to build skills and prepare our people for the future

should be equally available to all Equinor employees, regardless of diversity characteristics like age, gender, ethnicity, disabilities,

sexual orientation and more. As outlined in our Code of Conduct, we do not tolerate any discrimination or harassment of colleagues,

or others affected by our operations, and require everyone to be treated with fairness, respect, and dignity.

Strengthening an inclusive culture

In 2022, we updated our D&I strategy and ambition, with the aim to further integrate D&I into our systems and processes and continue

to strengthen an inclusive culture. Our ambition is “We are a diverse and inclusive organisation where everyone feels valued and that

they belong”. We value diversity of thought and believe in creating an inclusive and psychologically safe work environment, ensuring

Relevant policies and standards

•

 The Equinor Book -> Who We Are -> Commitments

•

 The Equinor Book -> Who We Are -> People

•

 Code of Conduct

Group performance

Equinor 2023 Integrated Annual Report 84

fair and equal opportunities for all, also beyond our own organisation. To achieve our ambition, we rely on three key enablers: global

ambition with a local approach, transparency in data and processes, and leadership coupled with culture. Throughout 2023, we took

concrete steps to advance these enablers, and this effort will continue in 2024.

Our D&I strategy empowering the organisation to drive impactful initiatives aligned with local context and legislative requirements. Our

employee resource groups (ERGs) gained more members and exposure in 2023, and CEC members have actively partaken in

activities to promote internationally recognised awareness days. This year, the ERGs helped raise awareness about the importance of

several topics. Through hosting seminars, workshops and different types of sessions, several employee groups discussed gender

balance in the workplace, different ethnicities in a multicultural global company, and the need to stand up against racial discrimination.

Through events focused on expanding our knowledge and awareness, we aim to increase the understanding of and break stigmas

around mental health, inclusion of the LGBTQ+ community, and visible and non-visible disabilities.

ERGs are voluntary, employee-led groups that come together with the aim to create a diverse and inclusive workplace, with a

particular focus on a common diversity characteristic, cause, or goal. The establishment and support for ERGs is important for Equinor

to learn about opportunities and challenges linked to equality and equity, and to ensure that we set actions that remove barriers for

individuals who identify as part of underrepresented groups. 

Statement on equality and anti-discrimination

Equinor’s statement on the actual gender equality in numbers and the work related to the

activity duty (statement on equality and anti-discrimination) is included in pages 77-83.

Group performance

Equinor 2023 Integrated Annual Report 85

Performance disclosure

ALWAYS SAFE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

WORKFORCE FOR THE FUTURE

Inclusion index score (%)

I: ≥80 (2025)

t

78

77

Highlighted:

Performance indicator.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Indicators

Boundary

Unit

2023

2022

2021

2020

2019

2018

Employment and recruitment

Total number of permanent

employees

Equinor

group

number

23,449

21,936

21,126

21,245

21,412

20,525

Total new hires

Equinor

group

number

2,350

1,988

886

774

1,568

905

Indicators

Boundary

Unit

2023

2022

2021

2020

2019

2018

Employees - by gender

Male

Equinor group

number

16,013

15,109

14,600

n/r

n/r

n/r

Female

Equinor group

number

7,436

6,827

6,526

n/r

n/r

n/r

Total

Equinor group

number

23,449

21,936

21,126

n/r

n/r

n/r

Diversity and gender balance

Indicators

Boundary

Unit

 2023

2022

2021

2020

2019

2018

Gender balance (women share of total) by category - Norway

Norway

Equinor

ASA

%

32

31

31

n/r

n/r

n/r

Norway - Operation and

Support

Equinor

ASA

%

24

23

24

n/r

n/r

n/r

Norway - Associate

Equinor

ASA

%

41

46

49

n/r

n/r

n/r

Norway - Professional

Equinor

%

45

45

46

n/r

n/r

n/r

Group performance

Equinor 2023 Integrated Annual Report 86

ASA

Norway - Principal

Equinor

ASA

%

35

34

33

n/r

n/r

n/r

Norway - Leading

Equinor

ASA

%

30

29

29

n/r

n/r

n/r

Norway - Manager and

Executive

Equinor

ASA

%

32

32

31

n/r

n/r

n/r

Indicators

Boundary

Unit

 2023

2022

2021

2020

2019

2018

Gender balance – Equinor group

Gender balance total females

(percentage females)

Equinor group

%

32

31

31

31

30

31

Leadership positions (women

share of total)

Equinor group

%

35

35

35

32

30

29

●

 Corporate Executive Group

(CEC)

Equinor group

%

36

36

60

30

30

30

●

 Leaders reporting to CEC

Equinor group

%

45

51

49

45

41

n/r

●

 Business unit

Equinor group

%

39

37

38

35

36

35

●

 Business sector

Equinor group

%

37

36

37

34

35

34

●

 Business department

Equinor group

%

32

32

32

27

24

24

New hires (women share of total)

Equinor group

%

35

29

29

33

27

32

Indicators

Boundary

Unit

 2023

2022

2021

2020

2019

2018

Earnings ratio base salary (women:men) by category - Norway

Norway

Equinor ASA

%

 100

100

99

n/r

n/r

n/r

Norway - Operation and

Support

Equinor ASA

%

 97

97

97

n/r

n/r

n/r

Norway - Associate

Equinor ASA

%

 98

98

98

n/r

n/r

n/r

Norway - Professional

Equinor ASA

%

 98

98

98

n/r

n/r

n/r

Norway - Principal

Equinor ASA

%

 98

98

98

n/r

n/r

n/r

Norway - Leading

Equinor ASA

%

 97

97

96

n/r

n/r

n/r

Norway - Manager and

Executive

Equinor ASA

%

 97

98

97

n/r

n/r

n/r

Earnings ratio total compensation (women:men) by category - Norway

Norway

Equinor ASA

%

 87

87

86

n/r

n/r

n/r

Group performance

Equinor 2023 Integrated Annual Report 87

Norway - Operation and

Support

Equinor ASA

%

 84

84

82

n/r

n/r

n/r

Norway - Associate

Equinor ASA

%

 88

87

85

n/r

n/r

n/r

Norway - Professional

Equinor ASA

%

 89

86

84

n/r

n/r

n/r

Norway - Principal

Equinor ASA

%

 87

87

87

n/r

n/r

n/r

Norway - Leading

Equinor ASA

%

 91

91

91

n/r

n/r

n/r

Norway - Manager and

Executive

Equinor ASA

%

 96

95

92

n/r

n/r

n/r

Indicators

Boundary

Unit

 2023

2022

2021

2020

2019

2018

Employment

Temporary workers (number

of employees)

Equinor ASA

number

374

n/r

n/r

n/r

n/r

n/r

Temporary workers (share

of women)

Equinor ASA

%

37

34

n/r

n/r

n/r

n/r

Temporary workers (share

of men)

Equinor ASA

%

63

n/r

n/r

n/r

n/r

n/r

Part-time workers (number

of employees)

Equinor ASA

number

0

1

n/r

n/r

n/r

n/r

n/r

Part-time workers (share of

women)

Equinor ASA

%

0

1

73

n/r

n/r

n/r

n/r

Part-time workers (share of

men)

Equinor ASA

%

 0

1

n/r

n/r

n/r

n/r

n/r

Involuntary part-time

(number of employees)

Equinor ASA

number

 0

0

n/r

n/r

n/r

n/r

Involuntary part-time (share

of women)

Equinor ASA

%

0

0

n/r

n/r

n/r

n/r

Involuntary part-time (share

of men)

Equinor ASA

%

 0

n/r

n/r

n/r

n/r

n/r

1) Equinor does not have any employees in part-time positions. In previous years, Equinor has reported share of women of employees who has reduced

working hours under section 10-2 (4) of the Norwegian Employment Act under the section for part-time positions. This is the reason for the significant

change in numbers.

Norwegian statutory parental leave, Equinor ASA 2023

Proportion of employees who

have taken parental leave

Number of employees

Average weeks

Median number of weeks

Female

147

19

18

Male

465

11

12

The numbers above include both statutory paid and employee requested unpaid parental leave.

Group performance

Equinor 2023 Integrated Annual Report 88

Diversity in early talent programmes

Equinor continues to invest in our emerging talents through our graduate, summer internship and apprenticeship programmes.

We focus on diversity in our early talent programs and have set targets in terms of gender and nationality. In 2023, we welcomed

162 graduates, representing 35 nationalities and 41% females. In Norway, we welcomed 162 apprentices. This year we saw an

increase in female apprentices with 39% of the apprentices being female, exceeding our gender target of 33% female. We also

offered a summer internship programme to 204 students, representing 28 nationalities and 41% female candidates.

In 2023, Equinor was chosen as the preferred employer for the 27th time in a row by engineering students in Norway and

recognised as one of the three most popular employers in the main categories within finance and IT by students. For

professionals, we were recognised as top employer amongst engineers and business professionals and third amongst IT

professionals in “Universum’s annual ranking”. In addition, the company was awarded Norway’s most attractive technology

workplace 2023 in the “Tekjobb-indeksen” among 70 technology companies.

Programme

Gender balance (female:male)

Nationality balance (non-

Norwegian: Norwegian

Hired

Target

Hired

Target

Graduates 2023

41:59

50:50

46:54

50:50

Apprentices 2023

39:61

33/66

1

N/A

N/A

1

The apprenticeship programme targets are set aligned to the gender share studying technical fields in Norwegian upper secondary schools.

Performance evaluation

Workforce composition

Equinor welcomed 2,350 new employees in 2023, Our efforts to recruit new talent into renewables and low carbon solutions supports

our ambition of being a leader in the energy transition and our goal of being an attractive employer within these areas. As a result of

our apprenticeship programmes, recruitment efforts, and initiatives for experience transfer and development within our workforce, the

average age for Equinor employees in Norway was 46 in 2023. We are encouraged by the work being done by all new and existing

employees to build competence that meets our strategic needs, and we are confident that we are building a talent pipeline that

enables Equinor's business ambitions.

1. Inclusion Index 

To leverage the diversity of thought we have in Equinor, we actively work to increase our employees’ sense of belonging, inclusion,

and psychological safety. Since the establishment of the inclusion index in 2019, Equinor has used this data to determine actions and

opportunities to strengthen our culture and make people feel safe to speak up and report inappropriate actions and behaviour. Equinor

D&I roadmap in 2023 focused on actions to ensure inclusion of people with disabilities or caring responsibilities, people belonging to

different ethnicities, the LGBTQ+ community, and people on pregnancy/parental leave. We will continue to work systematically on

inclusion across diversity dimensions in 2024 to expand and build stronger competence and deeper understanding of what D&I means

across Equinor globally. 

In 2023, Equinor had significant positive engagement on D&I activities supported by the work done by our ERGs. For the first time, we

raised global awareness on ethnicity together with the Black in Equinor ERG, and on disabilities with the Able ERG. Together with the

newly established Healthy Mind ERG we made mental health resources and activities available for all employees, and focused on

building healthy work environments. The Pride Makers ERG increased its internal and external activity, gaining more members,

generating safety focused deliverables, and organising local pride events. The Women in Equinor ERG established two new chapters

in UK and Canada during 2023, and held events and workshops throughout the year with support from colleagues, senior

management, and HR. All these efforts have jointly contributed to better understanding of diversity, a safer and more inclusive

workplace, increased employee well-being, and progress towards a more gender-balanced workplace. 

Equinor has worked systematically with D&I since 2019. Overall, our performance in 2023 was satisfactory, with a focus on

operationalising the D&I strategy and ambition. We have strengthened metrics relevant to further integrate D&I in our business and

strengthening our future performance. Awareness about various diversity topics were raised, and our 2024 focus is to continue to

build more knowledge and understanding about different diversity dimensions and importance of an inclusive work environment

across the locations where we operate.

2. Diversity in leadership 

Equinor works systematically to build a sustainable, robust, and diverse leadership pipeline that feeds through to diverse leadership

Group performance

Equinor 2023 Integrated Annual Report 89

teams. Our focus was on monitoring gender balance and nationality, while continually working to set up teams that, together,

represent diversity beyond these two dimensions. Our systematic focus on developing female leaders is reflected in the continued

increase in female leadership over the years, with 45% females among leaders reporting to the CEC in 2023. We continue to focus on

representation of nationalities other than Norwegian in our leadership to ensure we represent our global operations.

3. Gender pay gap 

We monitor our progress on D&I using available diversity data on gender balance and nationality. Equinor reports the earnings ratio

between males and females for both total compensation and base pay. Norwegian authorities require reporting on full breakdown of

earning ratios in all major Equinor locations by Equinor’s job structure every other year. Equinor will report on this data annually to

strengthen transparency on our gender pay gap. Further details on our gender pay gap reporting are available in the Equinor data

hub. For 2023, we are pleased to see that the gender pay gap for base pay is 0 for Equinor ASA. We note that there is a gender pay

gap in total compensation than in base pay in all our locations. This is largely driven by additional compensation items linked to roles

where there is a higher representation of men than women, for example offshore roles receiving offshore allowances. We have

partnered with Mercer to perform regression analysis in Norway, UK, US and Brazil to better understand the adjusted total pay gap

which is a better reflection of differences in pay for like work. The results of this study show an adjusted total pay gap of 0.73% in

favour of men across those four major locations, and an adjusted total pay gap of 0.63% in Equinor ASA in favour of men. During

2024, Equinor will work to better understand the drivers for these differences and identify potential remedial actions to address them.

4. Monitoring our D&I progress

The number of sexual harassment cases in 2023 remained stable compared to 2022. By openly discussing sexual harassment in the

workplace through sessions and safety moments available for the organisation globally, as well as specific leadership workshops, we

attained an increased awareness and deeper understanding of the seriousness of the topic in 2023 across the orginisation. Our Code

of Conduct was updated with a strengthened emphasis on the expectation for leaders and employees to contribute to a working

environment free from harassment and discrimination through improved guidelines to prevent these cases. The 2023 GPS results are

strong and show significant improvement in the scores for the question about our employees feeling safe to speak up without fear of

retaliation. This is particularly important evidence of our ambitions to prevent sexual harassment or any similar inappropriate actions

and behaviours. We will continue to keep the topic high on our agenda for 2024 by actively promoting existing initiatives.

Group performance

Equinor 2023 Integrated Annual Report 90

High value

We place value at the forefront of everything we do. Our value can be determined by “how” we perform and operate in

addition to “what” we deliver and achieve. The High value material topics seek to enable us to be competitive and

create value throughout the energy transition. 

●

 Profitable portfolio: Portfolio development and composition to ensure ongoing profitability with risk assessment and

management of current asset base. 

●

 Energy provision and value creation for society: Securing energy supply and generating revenue, job opportunities and

economic prosperity through local employment, procurement and taxes.

●

 Integrity and anti-corruption: Preventing corruption and ensuring ethical business culture across the company.

Profitable portfolio

Indicators/Metrics

Relative Total Shareholder Return (Relative TSR)

(quartile)

Relative ROACE* (peer group rank)

Return on Average Capital Employed* (ROACE) (%)

Organic Capex* (USD billion)

Equity production liquids and gas 

(mboe per day)

Key impacts on nature and society

We aim to have a profitable and robust portfolio to provide long-term value to our employees, shareholders

and societies where we operate, as well as supporting ongoing investments to create future value from energy

transition opportunities. 

Financial materiality

•

 Market conditions such as fluctuating commodity prices, as well as exchange rates and general

macroeconomic outlook could significantly affect financial performance of our investments.

•

 Geopolitical and political factors, including legal and policy changes, could impact our business plans,

including access to resources, and financial performance . 

•

 Physical effects of climate change could disrupt our operations or increase costs and impact financial

performance.

•

 Changes to Equinor’s hydrocarbon resource base estimates and ability to access low carbon

opportunities can impact future production, revenues and expenditures as well as delivery of our

strategy. 

"Profitable portfolio" pertains to the following GRI standards: GRI 201; GRI 302

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 91

Contextual introduction

Equinor’s portfolio delivered strong results in 2023 based on our ability to maintain stable delivery of oil and gas, particularly to

Europe. Sustaining a profitable portfolio and reliably supply energy through the transition, Equinor is transforming its portfolio to

become a broad energy company. Equinor believes that by being a leading company in the energy transition, we can not only reduce

our own CO2 footprint, but also maximise value for both society and our shareholders. Building a portfolio that has robust profitability

through future cycles will be essential for us to deliver on our Energy transition plan and provide shareholder value.

Management approach

Portfolio composition

Our ambition is to build a focused, carbon efficient oil and gas portfolio, complemented with renewable and low-carbon solutions to

create long-term value while supplying reliable energy with progressively lower emissions. Future commodity prices are uncertain and

Equinor believes it is positioned to capture the upside and withstand the downside.

As illustrated by the following graph, the gross capex* share to renewables and low-carbon solutions increased from 14% in 2022 to

20% in 2023. Based on current portfolio forecasts, we are progressing on our ambitions to have more than 30% of annual gross

capex* to renewables and low-carbon solutions in 2025 and above 50% in 2030. Our capital allocation will be contingent on access

and profitability, aligning with our ambition of maintaining an average return on capital employed of around 15% in 2035.

Group performance

Equinor 2023 Integrated Annual Report 92

Due to the long-term nature of investments in energy projects, the increasing proportion of our investments in renewable projects is

expected to have a growing impact on oil, gas and renewable production ratios as projects come into operation. In 2023 Equinor

produced a total of 4.4 million TJ of energy, of which 18 thousand TJ was from renewables. By 2030, we have an ambition to have a

total of 12-16 GW of installed net renewable capacity, expected to produce between 35 and 60 TWh annually, while maintaining our

energy production from oil and gas at around the same level as today. By 2035 we aim to produce more than 80 TWh of renewable

power and decarbonised energy

1

, of which above 65 TWh is aimed to be renewable power. 

1) Decarbonised energy defined as hydrogen, ammonia and gas to power with CCS.

Investment criteria

Equinor’s strategy is to continue to create long-term, high value growth by developing a broad portfolio and applying strict robustness

criteria to investments. To maintain a valuable portfolio in different possible energy transition pathways, Equinor has a financial

framework in place addressing climate-related risks and the robustness of investment proposals.

When a project is being sanctioned, it is assessed on multiple measures:

•

 Net present value (NPV): to bring value to the company and our shareholders. 

•

 Price sensitivities: to assess the impact of different prices on the investment. 

•

 Other considerations include: safety, security and sustainability, optionality, resource efficiency and alternative cost, strategic

value, country risk, operational capacity and capability. We undertake environmental and social impact assessments for all new

projects including consideration of potential human rights impacts. 

In addition, for oil and gas projects, the following assessments are undertaken:

•

 Break-even price: to remain robust in low-price scenarios we use a break-even target for all oil and gas projects. 

•

 CO2 intensity: all oil and gas projects are measured on scope 1 CO2 intensity (upstream). 

•

 Carbon pricing: a CO2 cost acts as an additional element of robustness, including application of Equinor’s internal carbon price

when calculating financial metrics.

For renewable projects we also assess the internal rate of return (IRR), real, after tax, full cycle, excluding effects from farm downs

and project financing.

Equinor recognises that planned investments that are not sanctioned can have negative economic consequences for connected

suppliers, partners, and end users of energy. We therefore work closely with all stakeholders, including local governments to explore

solutions that enable Equinor to proceed with investment, or alternatively to find new developers or owners.

Climate scenario testing

Group performance

Equinor 2023 Integrated Annual Report 93

Transition stress test -

 Since 2016 Equinor has assessed its resilience against the scenarios from the IEAs World Energy Outlook

(WEO) report. We assess the portfolio transition risk by testing the net present value after tax (NPV) and the revenue robustness by

applying price assumptions for oil, natural gas and CO

2

tax in each of the WEO scenarios, relative to using Equinor`s commodity price

assumptions. Additionally, we assess potential impairments (detailed in note 3 Climate change and energy transition to the

Consolidated financial statements) when applying the price assumptions in the relevant WEO scenarios.

Physical climate risk assessment -

Equinor also disclose an assessment of the portfolio exposure to possible climate-related

hazards, using the Shared Socioeconomic Pathways (SSP`s) scenarios provided by the Intergovernmental Panel on Climate Change

(IPCC).

By evaluating our portfolio against the scenarios outlined in the WEO report and assessing physical climate risk exposure, we can

ensure that we have a resilient value creating portfolio that is able to remain profitable through challenging market conditions and

climate scenarios.

IEAs WEO scenarios

Stated policies 

scenario (STEPS)

Announced pledges

scenario (APS)

Net zero emissions by

2050 scenario (NZE)

Description

A scenario based on the

latest implemented policy

settings, including energy,

climate, and related

industrial policies.

A scenario where all

national energy and climate

targets made by

governments are met on

time and in full.

A scenario where the world

moves on a potential path

towards limiting global

warming to 1.5 °C relative to

pre-industrial levels.

Temperature rise to 2100

(from preindustrial levels

2.4 °C

1.7 °C

1.4 °C

Change in demand for 

Oil in 2050 (from 2022)

+1%

-43%

-75%

Change in demand for

Natural Gas in 2050 

(from 2022)

0%

-42%

-78%

Change in REN TWh

production in 2050 

(from 2022)

~350%

~550%

~700%

Transition stress test results -

Compared to last year’s annual report, the positive impact of the STEPS scenario declined from

41% to 11%, while the impact of the APS scenario changed from positive 17% to negative 5%, as illustrated by the figure below. The

impact from the NZE scenario resulted in a 42% decrease in NPV this year, compared to a decrease of 22% in the previous year.

Consistent with previous years, we assume a linear bridging between the prices in the current year and the first price point given by

the IEA in 2030, which also this year significantly impact the change in results from year to year.

The figure below illustrates the changes in revenues from Equinor`s portfolio in the WEO scenarios relative to using Equinor`s

commodity price assumptions for 2030 and 2035. The STEPS scenario provides a positive effect, with a 4% and 3% increase in 2030

and 2035 respectively. In the APS scenario, the revenue decreases by 3% and 5% in 2030 and 2035, while the revenue in the NZE

decreases by 27% and 23% in 2030 and 2035 respectively.

Group performance

Equinor 2023 Integrated Annual Report 94

Our long-term strategy remains firm, and our portfolio and capex flexibility can reduce the negative impact seen in the low-price

scenarios by mitigating actions such as re-optimising the non-sanctioned portfolio. Furthermore, the scenarios only stress oil, natural

gas and CO

2

price, not reflecting the potential impact on our renewable and low carbon solution projects in an accelerated transition

scenario, as indicated by the increasing market size of CCUS and a global growth in renewable energy production of ~700% by 2050

in the NZE scenario, as illustrated in the IEAs WEO scenarios table.

Portfolio robustness -

The figure below illustrates the oil price in each of the scenarios from the IEAs WEO report, based on

interpolation between the price points in 2030, 2040 and 2050, relative to Equinor`s price assumptions on Brent Blend in the

equivalent years. These price paths are used to assess the robustness of Equinor`s portfolio towards the outcomes in each of the

scenarios.

The oil and gas projects coming on stream within the next 10 years have a pay-back time at around 2.5

2

 years and a volume-weighted

break-even at around 35 USD/bbl

3

, below the oil price in NZE in both 2030 and 2040. As such, our oil and gas portfolio is expected to

remain robust even to a sharp decline in prices as seen in the NZE scenario. Equinor also maintains significant capex flexibility in our

current portfolio, with only our sanctioned projects being committed, representing less than 50% of the yearly organic capex* from

2025. This will allow us to optimise and re-prioritise our non-sanctioned projects to ensure we continue to generate high value through

cycles. 

As previously mentioned, these scenarios do not fully capture the upside potential Equinor could capture in renewables and low

carbon solutions. For renewables, we maintain our expectations of a real base project return of 4% to 8% (after tax, full cycle,

excluding effects from farm downs and project financing). From this level we can capture additional value by pulling different levers

depending on the project and market, as exemplified by Dogger Bank and our onshore solar plants in Europe achieving equity returns

of 12-16%. For our low carbon solution projects, we expect real base project returns of 4-8% in the early phase with government

support while maturing the markets. As markets mature, we expect further value uplift potential. 

2: Includes sanctioned, non-sanctioned and IOGR projects. Based on reference case 75 USD/bbl. Volume weighted from production start.

3: Includes sanctioned, non-sanctioned and IOGR projects. Volume weighted average. 

Portfolio robustness and Oil price per WEO scenario

1

(USD/bbl)

Group performance

Equinor 2023 Integrated Annual Report 95

Methodology -

NPV is calculated forward looking from 2024. We test the change in NPV and revenues of our portfolio by applying

the price assumptions for oil, natural gas and CO

2

 tax in each of these scenarios and compare the impact towards the value

calculated at our commodity price assumptions. Equinor`s commodity price assumptions are based on management`s best estimate

of the development of relevant current circumstances and the likely future development of such circumstances. This price-set is

currently not equal to the price-set in accordance with achieving net-zero emissions by 2050 as outlined in the WEO Net Zero

Emissions by 2050 scenario. Consistent with previous years, we assume a linear bridging between 2023 prices and the first price

point given by the IEA in 2030. We further assume a linear interpolation between IEA`s prices from 2030 to 2050 and that the price in

2050 is kept constant in real terms thereafter. USD 2 per boe transportation cost for oil production is added to compare with Brent

Blend. Finally, exploration activities are not included due to the uncertainties related to potential discoveries and development

solutions. The results of this NPV and revenue transition test should not be directly compared with the result of the impairment test

shown in note 3 Climate change and energy transition to the Consolidated financial statements, as they are not stress testing the

same financial metric, although both are based on the same WEO scenarios and commodity price assumptions.

Carbon pricing and carbon costs -

For portfolio and decision analysis, our base assumptions include a carbon cost for all assets

and projects. In countries where no such cost exists, we use a generic cost starting from 2025. We use a default minimum at 82 USD

per tonne (real 2023), that increases to 115 USD per tonne by 2030 and stays flat thereafter. In countries with higher carbon costs, we

use the country-specific cost expectations. This carbon cost is included in investment decisions and is part of break-even calculations

when testing for profitability robustness. The actual CO2 costs for Equinor-operated assets were USD 1,276 million in 2023.

The illustration above shows the total carbon cost in the WEO scenarios, relative to the total cost using Equinor’s commodity price

assumptions, based on the same volume base. The STEPS and APS scenarios from the WEO report predicts lower absolute carbon

costs compared to Equinor’s assumed CO

2

cost. The NZE scenario has a marginal higher carbon cost compared Equinor's internal

assumptions,

which demonstrates that Equinor`s carbon pricing assumptions are in line with a potential scenario where the

world moves towards limiting global warming

 to 1.5 °C relative to pre-industrial levels.

Physical climate risk 

Equinor’s portfolio comprises offshore and onshore assets across a diverse set of regions around the world. While the company’s core

business today is centered on the NCS, the move towards a broader and more international energy company will lead to changes in

the company’s geographic footprint.

Group performance

Equinor 2023 Integrated Annual Report 96

In accordance with the TCFD

1

 recommendations, Equinor is addressing climate-related physical risks for our assets, including both

acute (extreme weather events) and chronic risks (longer-term shifts, such as sea level rise). To assess the exposure of our assets to

possible climate-related hazards we model the portfolio to different climate scenarios using data analytics software, provided by

Jupiter Intelligence. In 2023 we assessed the exposure of 117 assets in which Equinor has an equity interest to several hazards,

including wind, heat, fire, flood, hail, waves, sea level rise and precipitation. The data provide details on hazard exposure both today

and the expected change in exposure between 2020 and 2050. We have also performed a third-party verification of the results for

some selected assets to enhance our understanding of uncertainties and give input to further improvements.

The results for our onshore and offshore assets for the SSP5-8.5 scenario can be seen in the figures below, which also show the

relative book value of different clusters of assets by reporting segment. An increase in temperature and an increase in the frequency

and intensity of extreme weather events under SSP 5-8.5 is widely considered to be an unlikely scenario beyond current business-as-

usual scenario, but it is included following the precautionary principle and in accordance with EU Commission guidance. Consistent

with information published in the 2022 report, the model provides hazard scores equally weighting across wildfire, flooding, hail, heat,

precipitation and wind. Sea level rise is also included in the modeling. While the assessment provides details on the exposure of

assets to different hazards, it is not a direct indication of risk, as all Equinor installations are designed to tolerate a range of

meteorological conditions as appropriate to their location.

As shown in the figure below, the results show that the majority of Equinor’s onshore assets by book value are assessed as having

relatively limited exposure to climate-related change in physical environment. The onshore assets subject to the highest present-day

exposure and with the greatest changes in exposure towards 2050 are the EPI and REN assets in South America.

Several of the parameters studied are not relevant for our offshore portfolio, and in 2023 we have added wave modeling to the

assessments of the offshore assets. As the results for the wave modeling and wind are consistent, the resulting scores for our

offshore portfolio are based on a single parameter, the 100-year return period wind speed, which also is commonly used to measure

tropical cyclone risk.

Group performance

Equinor 2023 Integrated Annual Report 97

As shown in the figure above, the results show that the majority of Equinor’s offshore assets by book value are assessed as having

relatively limited exposure to physical climate risks. For most of the installations, the initial screening of exposure indicates that the

increased exposure will be within the design margins of the installation. Those assets subject to the highest present-day exposure are

offshore installations in the US Gulf of Mexico and REN North America, while those with the greatest changes in exposure towards

2050 are the renewable installations in North America and oil and gas assets in Sub-Saharan Africa.

More detailed risk assessments are required to assess the climate risk and to implement mitigating measures, as required. In 2023 we

have outlined a methodology in accordance with our risk management process and performed initial risk assessments. This includes

input to a bankability report for a Polish wind farm, including supply of personnel and goods, in accordance with the TCFD

requirements. The results for the assets assessed so far show that these facilities are resilient to the changes in the modelled future

climate scenarios. We will continue to assess the current and future exposure of our portfolio to physical climate changes and to

implement preventive and mitigating measures.

Profitable portfolio

By carefully evaluating investment criteria to develop our future portfolio and assessing our current portfolio for physical climate risk

exposure, we can ensure we have resilient value creating assets able to be profitable through challenging market conditions and

climate scenarios. It also empowers us with knowledge to implement any measures to ensure we are profitable for the future and able

to create value for shareholders through capital allocation and distribution.

1

TCFD: Task Force on Climate-Related Financial Disclosure.

Relevant policies and standards

•

 The Equinor Book

•

 Code of Conduct

Group performance

Equinor 2023 Integrated Annual Report 98

Performance disclosure 

HIGH VALUE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATU

S

PERFORMANCE

2023

2022

PROFITABLE PORTFOLIO

Relative Total Shareholder Return (Relative TSR)

(quartile)

Above average in ranking among peers¹

o

8 of 12

6 of 12

Relative ROACE* (peer group rank)

First quartile in ranking among peers¹

l

1 of 12

1 of 12

Return on Average Capital Employed* (ROACE) (%)

>15% yearly (2023-2030)

1,

2

t

24.9

55.1

Organic Capex* (USD

billion)

2023 outlook guiding 10-11¹

t

10.2

8.3

3

Equity production liquids and gas 

(mboe per day)

2023 outlook guiding

˜3% above 2022

1

o

Growth 2%

(2,082)

2,039

Highlighted:

Performance indicator.

¹ Outlook and ambitions presented at CMU 2023 or in Annual report 2022.

2

 Based on 2023 CMU reference case (70 USD/bbl). 

3

 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Performance evaluation

Investments 

In 2023, capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in note 5 Segments to the

Consolidated financial statements, amounted to USD 14.5 billion, of which USD 10.2 billion were organic capital expenditures*.

In 2022, capital expenditures were USD 10.0 billion, as per note 5 Segments to the Consolidated financial statements, of which

organic capital expenditures* amounted to USD 8.1 billion.

In Norway, a substantial proportion of 2024 capital expenditures will be spent on ongoing development projects such as the Johan

Castberg, Munin, Irpa, and Halten Øst. In addition, capital expenditures will be spent on various extensions, modifications and

improvements on currently producing fields and on exploration opportunities.

Internationally, we estimate that a substantial proportion of 2024 capital expenditures will be spent on projects with recent final

investment decisions such as Raia, Rosebank and Sparta. In addition, 2024 capital expenditures will be mainly spent in Bacalhau field

and non-operated onshore activity.

Within renewable energy, capital expenditure in 2024 is expected to be spent mainly on offshore wind projects. In addition, further

investments are planned in our onshore projects.

Equinor finances its capital expenditures both internally and externally. For more information, see debt and liquidity management in

the section 2.1.

Equinor has committed to certain investments in the future. A large part of the capital expenditure for 2024 is committed. The further

into the future, the more flexibility we will have to revise expenditures. This flexibility is partially dependent on the expenditure joint

venture partners agree to commit to. For further information, see note 26 Other commitments, contingent liabilities and contingent

assets to the Consolidated financial statements.

Equinor may alter the amount, timing or segmental or project allocation of capital expenditures in anticipation of, or as a result of

several factors outside our control.

Group performance

Equinor 2023 Integrated Annual Report 99

Return on average capital employed (ROACE)

*

The return on average capital employed (ROACE)* was 24.9% in 2023, compared to 55.1% in 2022. The change from 2022 was due

to decrease in adjusted earnings* after tax.

Relative ROACE

*

 (peer group rank)

On relative ROACE* Equinor was ranked first in the peer group, which is a position in the first quartile.

(in USD million, unless stated otherwise)

 For the year ended 31 December

2023

2022

2021

2020

2019

Share information

1)

Diluted earnings per share (in USD)

3.93

9.03

2.63

(1.69)

0.55

Share price at OSE (Norway) on 31 December (in NOK)

2)

322.15

351.80

235.90

144.95

175.50

Share price at NYSE (USA) on 31 December (in USD)

31.64

35.52

26.33

16.42

19.91

Dividend paid per share (in USD)

3)

3.60

1.68

0.56

0.71

1.01

Weighted average number of ordinary shares outstanding (in millions)

3,021

3,174

3,254

3,269

3,326

1)

See section 5.1 Shareholder information for a description of how dividends are determined and information on share repurchases.

2)

Last day of trading on Oslo Børs was December 29th, 2023, and December 30th, 2022.

3)

See note 20 Shareholders' equity, capital distribution and earnings per share to the Consolidated Financial Statements.

Relative TSR

Equinor performs an assessment of performance against a peer group of 11 European and U.S. companies by relative Total

Shareholder Return (TSR). In 2023 Equinor is number eight with a TSR of -0.2% (measured in USD).

Group performance

Equinor 2023 Integrated Annual Report 100

Energy provision and value creation for society

Indicators/Metrics

Energy production (TJ to market)

Payments to governments (USD billion)

Share of procurement spend locally (%)

Contextual introduction 

Energy powers businesses, fuels transportation, and enables the production of goods and services. Within our home, energy provides

heating, cooling and lighting, and allows for access to digital services. As the energy transition progresses, we continue to balance our

obligation to provide energy security with the need for decarbonisation and affordability.

With the recent energy crisis and geopolitical instability, a key priority in 2023 was energy security, given that Equinor is one of

Europe’s largest energy companies. This year, we provided 2,082 mboe per day of oil and gas and 4,235 GWh of electric power. The

aim of being a reliable energy partner stays firm. 

Delivering value to society beyond its products and services, is fundamental to any business. In the communities where we are

present, we also create jobs, pay taxes to governments, and provide income opportunities to our approximately 8,000 suppliers and

sub-suppliers. In addition, we support socioeconomic development and humanitarian relief through voluntary and mandatory social

investments, strategic sponsorships and donations. 

Key impacts on nature and society

Through our balancing of affordability, security and sustainability in our energy provision, and through making

contributions to the societies where we operate, we can significantly influence socio-economic development.

Financial materiality

•

 Changes in political, economic, and social factors related to the energy trilemma could present new

opportunities, affect attractiveness of opportunities and value from current and future investments.

•

 Remaining commercially and technologically competitive is important to develop and operate an

attractive portfolio of assets in current and new value chains. Deployment of innovative or new

energy technologies could enhance or threaten value of Equinor’s expected energy portfolio and

impact our planned strategy execution in the transition to a broad energy company. 

•

 Changes in investor and societal sentiment related to our portfolio and performance can affect our

access to capital markets, attractiveness for investors, and potentially restrict access to finance or

increase financing costs.

"Energy provision and value creation for society" pertains to the following GRI standards: GRI 202, GRI 203; GRI 204; GRI 207; GRI 413; GRI 415

For more information regarding our risk factors, please visit 5.2 Risk factors.

More information about our tax contributions and payments to governments can be found in the

stand-

alone Payments to governments report.

Group performance

Equinor 2023 Integrated Annual Report 101

Management approach

Energy provision

To produce and provide energy in a way that creates value to society is a balancing act that we face daily. As an energy company, we

need to balance the energy trilemma of affordability, security, and sustainability. The economic and geopolitical instability in 2023

emphasised the societal importance of energy security. 

To increase security of supply we are shifting towards more long-term agreements that are predictable for all parties and facilitate

energy planning. The 2023 gas sales agreements with Germany’s state-owned energy company SEFE, for 111 terawatt hours until

2034, and a Letter of Intent for hydrogen supply towards 2060, serve as examples of how we manage long-term, reliable supply of

energy and decarbonisation at scale. 

Tax contribution

We believe that responsible and ethical behaviour is a prerequisite for sustainable business. Tax transparency is promoted through

our Tax and transparency policy and our Code of Conduct, and supported through our membership in the Extractive Industries

Transparency Initiative (EITI), where Equinor has been an active supporter since its beginning in 2009. Equinor was among the first

major O&G companies that voluntarily disclosed payments to governments in 2004. 

We do not tolerate or support the facilitation of illegal tax evasion. Our tax planning is driven by the objective to match income with

expenses to obtain a tax deduction for all valid business costs and to avoid double taxation according to the principles of domestic

laws and guidelines.

Equinor ensures efficient compliance with tax rules and regulations by engaging openly with tax authorities around the globe

concerning uncertainties or tax disputes which may arise. 

We believe that transparency goes beyond the provision of legally required information to tax authorities, it extends to proactive

consideration of other stakeholders. Therefore, we publish annually a Tax contribution report and a Payment to governments report,

read more here Governance and transparency - Equinor.

Local procurement and employment

Equinor strongly supports building local capacity, and we seek to prioritise goods and services from local suppliers wherever possible.

Where goods and services are competitive in terms of price, quality and delivery, our contracting and procurement strategy gives first

consideration to those produced and provided locally. First consideration for employment and training opportunities is also given to

qualified local residents who otherwise meet all of the qualifications required. We actively engage in local supplier development,

training, wider social investment partnerships and local outreach programmes to facilitate local employment and use of local suppliers.

Social investments

In alignment with our just transition approach, our social investments strategy focuses on education, skills-and capacity-building,

nature restoration and enhancement, and access to energy for vulnerable groups. These investments are identified and managed at a

local level and will be measured by positive impact to people, as well as annual investment cost. All social investments are evaluated

for strategic fit and comply with internal procedures, including anti-corruption compliance requirements, as well as local regulations. 

Local authorities and non-governmental organisations also help us understand the needs and expectations of our host communities.

These are key to informing business models and project strategies that can deliver lasting value to the community and its support to

our activities.

Our new long-term partnerships with humanitarian aid organisations Red Cross and the Norwegian Refugee Council with fixed yearly

donations allow for predictability and continued engagement as well as efficiency in delivering ad hoc local projects.

Relevant policies and standards

•

 The Equinor Book -> Our Purpose

•

 The Equinor book -> Our Vision

Group performance

Equinor 2023 Integrated Annual Report 102

Performance disclosure

HIGH VALUE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATU

S

PERFORMANCE

2023

2022

ENERGY PROVISION AND VALUE CREATION FOR SOCIETY

Energy production (TJ to market)

 1

Not applicable

4,365,682

4,265,540

Payments to governments (USD

billion)

Not applicable

31.0

49.2

Share of procurement spend locally (%)

Not applicable

89

89

1

 Oil prod: 2,313,473 TJ, Gas prod: 2,018,514 TJ, Gas to power: 15,514 TJ, Wind to grid: 15,153 TJ and Solar to grid: 3,028 TJ.

Economic value created and distributed

Indicators

Boundary

Unit

2023

2022

2021

2020

2019

2018

Energy provision

Equinor Group

Terra joule

(TJ)

4,365

,682

4,265,

540

4,341,

168

4,334,9

98

4,335,

242

4,403,

821

Tax contribution

Equinor group

USD billion

28.0

45.2

9.0

3.1

8.8

9.6

Payment to governments (Total

economic contributions to governments)

Equinor group

USD billion

31.0

49.2

11.8

4.5

11.6

13.4

Purchase of goods and services (Total

procurement spend)

Equinor group

USD billion

18.1

17.1

15.7

16.1

18.4

17.4

Total share of spend locally

Equinor group

%

89

89

91

89

85

n/r

Corporate donations spend

Equinor ASA

USD million

6.4

7.6

1.6

1.8

0.2

0.8

Total social investments spend (excl.

Norway and Denmark)

Equinor group

USD million

3.4

6.3

1.9

1.4

3.1

2.1

Voluntary social investments spend

Equinor group

USD million

0.9

0.6

0.4

0.6

2.2

1.1

Mandatory social investments spend

Equinor group

USD million

2.5

5.7

1.4

0.8

0.9

1.0

4,365,682 TJ of energy provided 

USD 28 billion in taxes paid

8,000 suppliers and sub-suppliers

USD 18.1 billion in local procurement/89% of procurement spent locally

USD 9.8 million in social investments and donations

Group performance

Equinor 2023 Integrated Annual Report 103

Energy provision

Enabling societal progress through tax contributions

Paying the right tax where value is created is central to Equinor’s commitment to contributing to progress for societies. In 2023, the

Equinor group paid USD 28 billion in corporate income taxes and USD 3 billion in royalty payments and fees to local and national

governments, including host entitlement. USD 27 billion was paid in Norway, where Equinor has the largest share of its operations

and earnings. The reduction in corporate income tax payments relative to the prior year is due to the impact of lower commodity prices

in 2023 compared to the extraordinary market conditions of 2022.

The full Payments to governments report for 2023 pursuant to the Norwegian Accounting Act §3-3d and the Norwegian Security

Trading Act §5-5a can be found at our website: Governance and transparency - Equinor. We published our second tax contribution

report in December 2023, which provides further insight into our approach to tax and explains why and where we pay the taxes we

pay. 

Procurement and employment that enable growth and opportunities

Thriving domestic supply chains are important for regional economic development and for us, as we deliver new projects and invest in

long-term infrastructure that will be operational for decades. A significant contribution to society in terms of monetary value is our

purchase of goods and services, totalling approx. USD 18.1 billion in 2023, of which 89% was spent locally. As a large company, we

are also a significant source of employment in the communities where we operate. In 2023 we employed 2,350 number of people

across 17 countries. 

Group performance

Equinor 2023 Integrated Annual Report 104

Social investments 

In 2023, we spent USD 3.4 million

1

 on social investments internationally, the majority of which were contractual obligations. The

mandatory investments are often longer-term initiatives targeted towards underprivileged groups with a focus on science, technology,

engineering and maths (STEM) education, vocational training and skills building to improve employability, as well as healthcare and

economic empowerment for women. Our voluntary social investments are aligned with our just transition framework, helping drive

resilience in our host communities. In 2023 material contributions included support for our community funds in the US and UK, as well

as collaboration with the fishing industry in Brazil. An overview of Equinor’s social investments in 2023 is presented in our

Sustainability data hub.

1)

 Total social investments spend, excluding Norway.

Supporting humanitarian efforts in the longer-term

Supporting humanitarian organisations is aligned with Equinor’s sustainability strategy and our just transition plan. We prioritse

longterm partnerships to increase predictability and effectiveness for our partners. In 2023, we signed partnership agreements with

Red Cross and the Norwegian Refugee Council, which commit us to a dedicated yearly amount per partnership. 50% is allocated to

mutually agreed projects, and 50% is allocated freely by the partner organisation. This amounts to a total of NOK 40 million per year

Supporting a just energy transition

We are committed to contributing to an energy transition that is just and inclusive, that respect human rights and brings about

long-term social and economic benefits. To achieve this, we engage in dialogue and collaboration with all our key stakeholders –

our workforce, supply chain, partners, industrial customers and local communities. Notable examples include:

Norway: The Northern Area Unit

Equinor has established a unit called “the Northern Area Unit” with a mandate to strengthen value creation, collaboration and

competence building in this region. The unit works with suppliers to identify opportunities for local deliveries, and to enhance

supplier development. Measures to strengthen local recruitment are also initiated, e.g. the "North development program", and an

industry development program, "Empowering northern societies" is also established, addressing key challenges related to market,

technology and society in the energy transition.

UK: Rosebank investments bring local opportunities

In the UK, Rosebank oil and gas field is expected to create ripple effects in the supply chain and boost local job creation.

According to a socioeconomic study, if sanctioned, it is estimated to create GBP 8.5 billion of direct investment, of which GBP 6.6

billion is likely to be invested in UK-based businesses. During the peak of the construction phase the project is expected to

support around 2,000 jobs, and it will continue to support around 525 UK-based jobs during the 25 years lifetime of the field. We

acknowledge there is public debate about our Rosebank oil and gas field in the UK, and we respect the differing views.

Nevertheless, we believe there are sound reasons for developing Rosebank. This project is part of our contribution to energy

security, creating jobs, and we plan to reduce CO

2

 emissions from production through electrification measures.

US: Offshore Wind Ecosystem Fund

The

Ecosystem Fund is a collaboration between Equinor and the New York City Economic Development Corporation (NYCEDC)

to foster the offshore wind industry in New York City. The Ecosystem Fund will contribute $5 million towards the following

objectives:

 Scaling the talent pipeline in offshore wind-related careers

 Supporting low-income New Yorkers and New York City Housing Authority residents in the green energy transition

 Growing the green energy innovation ecosystem in New York City

Group performance

Equinor 2023 Integrated Annual Report 105

for both organisations. Equinor will also use the partnerships for additional local donations to projects, as relevant. The agreements

run for three years, plus an optional extension for two more years.

Performance evaluation

While the urgency of the climate challenge is clear, the world faces several related imperatives, including affordability of energy,

security of supply, and ensuring a just and equitable energy transition. The political and market volatility of recent years has

underlined the importance of energy security and the close relationship between energy prices and macroeconomic stability. With an

inflation affecting both consumer ability to pay as well as prices of input goods through the supply chain, the need for reliable and

affordable energy has become more apparent.

Overall, we increased our provision of energy by 2% in 2023, positively contributing to energy security. However, as gas prices were

significantly down compared to the extraordinary price levels seen in 2022, our revenues decreased, and our tax contributions and

payments to governments reduced accordingly. 

Despite the drop in revenues, we continued our local spending and job creation at former levels, and we increased our voluntary

investment spending. We deem our contributions to the communities we operate in a key element of sustainable and long-term value

creation.

Group performance

Equinor 2023 Integrated Annual Report 106

Integrity and anti-corruption

Contextual introduction

At Equinor, we believe that an ethical business culture is the cornerstone of a sustainable company. As our presence around the

world includes countries with high risk of corruption, we recognise the need to uphold and follow the highest integrity and anti-

corruption standards. 

Our commitment to conduct business in an ethical, socially responsible and transparent manner remains constant. A main focus area

in 2023 was to further integrate Equinor’s ethics and compliance programmes when developing our business as part of the energy

transition and to help drive a powerful integrity culture within a fast-growing organisation. 

Equinor has a zero-tolerance policy towards all forms of corruption. This is embedded across the company through our values, Code

of Conduct and ethics and compliance programmes.

Management approach

Code of Conduct 

The Equinor Code of Conduct sets out our commitment and requirements for how we do business. It applies to our employees, board

members and hired personnel who, each year, are required to confirm that they understand and will comply with the Code of Conduct.

We expect our suppliers to act in a way that is consistent with our Code of Conduct, and we engage with them to help them

understand our ethical requirements and how we do business. If our expectations are not met, we take appropriate action. In 2023,

the Code of Conduct was reviewed and several sections were updated, and in particular, those related to harassment, bullying and

discrimination.

Anti-corruption 

Indicators/Metrics

Confirmed corruption cases (number of)

Employees who signed-off the Code of Conduct (%)

Key impacts on nature and society 

Corruption undermines democratic institutions, slows economic development, threatens the environment,

distorts competition, damages reputations and exposes companies and individuals to civil and criminal

penalties and other reactions.

Financial materiality

•

 Non-compliance with anti-corruption and bribery laws, anti-money laundering laws, competition and

antitrust laws, sanctions and trade restrictions or other applicable laws, or failure to meet Equinor’s

ethical requirements, could expose Equinor to legal liability, lead to a loss of business, loss of access

to capital and damage our license to operate. 

•

 Equinor’s operations in various countries are subject to dynamic legal and regulatory factors that could

impact our business plans and financial performance. 

•

 The actions of our partners, contractors and subcontractors could also lead to legal liability, loss of

business or other forms of financial loss for Equinor.

"Integrity and anti-corruption" pertains to the following GRI standards: GRI 204; GRI 205; GRI 206

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 107

Our Code of Conduct explicitly prohibits engaging in bribery and corruption in any form. Equinor’s anti-corruption compliance

programme summarises the standards, requirements and procedures implemented to comply with applicable laws and regulations

and maintain our high ethical standards. The programme lays down the foundation for ensuring that bribery and corruption risks are

identified, concerns are reported, and measures are taken to mitigate risks in all parts of the organisation. We have a global network

of compliance officers who support the business in identifying and handling business integrity risks and ensure that ethical and anti-

corruption considerations are integrated into our activities no matter where they take place. Equinor provides risk-based regular

training across the organisation to build awareness and understanding of the anti-corruption compliance programme. 

Competition and antitrust compliance 

Equinor’s Code of Conduct also addresses the requirement to comply with applicable competition and antitrust laws. Our competition

and antitrust programme consists of governing documents and manuals, and training of employees in high-risk positions, as well as

regular risk assessments and assurance activities. 

Trade Controls compliance 

Equinor’s Code of Conduct also addresses the requirement to comply with applicable sanctions and export control laws. Our trade

controls programme consists of governing documents and guidance, and training of employees in high-risk positions, as well as

regular risk assessments and assurance activities.

Key 2023 improvement initiatives

Fundamental and advanced business integrity competence requirements mapped to position and role in the company is consecutively

being implemented in all business areas and functions. One main task in 2023 and going forward was to monitor the training statistics

generated, and to deliver relevant trainings where needed. Our training efforts included general and targeted training and awareness

sessions. Ethics and compliance was further strengthened as an integrated part of performance and reward assessments. A

leadership onboarding programme was developed and is currently being piloted. The programme includes, among other items,

elements on ethics, integrity, and creating and maintaining a speak-up culture through self-study, a gamified app solution and a three-

day physical programme. 

In 2023 Equinor further strengthened the risk-based bottom-up approach of its business integrity risk process, by adding new

requirements for corruption risk assessment at asset and organisational entity level.

Reporting and handling of concerns 

According to Equinor’s Code of Conduct, all employees have a duty to report suspected violations of the Code or other unethical

conduct. We require that our leaders work systematically and pro-actively to prevent, detect and respond to possible breaches of the

Code and other ethical issues. Employees are encouraged to report/discuss concerns with their line manager or the line manager’s

superior, or to use available internal channels established to provide support. Concerns can also be reported through our Ethics

Helpline which allows for anonymous reporting and is open for employees, business partners and the general public. Equinor has a

strict non-retaliation policy and does not tolerate any form of retaliation against any person who has raised an ethical or legal concern

in good faith.

Roles and responsibilities

The legal business ethics and compliance function is headed by the chief ethics and compliance officer (CECO), who reports to the

executive vice president legal and compliance. The CECO is also able to report matters directly to the CEO, the BoD, the board audit

committee (BAC) and the board’s safety, sustainability and ethics committee (SSEC).

Collaboration and stakeholder engagement

At Equinor, we believe in the value of collective action to actively promote anti-corruption and revenue transparency. We have long

standing relationships with the UN Global Compact, the World Economic Forum’s Partnering Against Corruption Initiative (PACI) and

Transparency International (TI). We are also a long-standing supporter of the Extractive Industries Transparency Initiative (EITI). In

2023 Equinor was assessed by EITI to meet all EITI company expectations.

Relevant policies and standards

•

 The Equinor Book -> Who We Are -> Commitments

•

 Code of Conduct

•

 Ethics and compliance in Equinor

Group performance

Equinor 2023 Integrated Annual Report 108

Performance disclosure

HIGH VALUE

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATU

S

PERFORMANCE

2023

2022

INTEGRITY AND ANTI-CORRUPTION

Confirmed corruption cases (number of)

0 (2022)

l

0

0

Employees who signed-off the Code of Conduct (%)

≥95% (2022)

l

96

95

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Ethics Helpline

Indicator

Boundary

Unit

2023

2022

2021

2020

2019

Cases and inquiries to the Ethics Helpline

Public

number

250

192

160

183

194

Confirmed corruption cases

Public

number

0

0

0

n/r

n/r

Ethics and compliance training

Indicator

Boundary

Unit

2023

2022

2021

2020

2019

People completing Code of conduct

training and sign-off (Employees)

Equinor group

%

96

95

84

87

93

Group performance

Equinor 2023 Integrated Annual Report 109

Performance evaluation

The number of cases received through the Ethics Helpline was 250 in 2023, of which 195 were reports of concerns. The cases

included 130 reported concerns relating to harassment, discrimination and other conduct affecting the working environment, 58 of

these reports were related to our partner and supply chain. We experienced a large increase in the number of cases related to our

suppliers but some of the cases related to the same concern. The Code of Conduct yearly sign-off is a mandatory competence

requirement, and by following up on the sign-off rates for each business area we were able to monitor the trends closely and saw a

continuing positive development compared to previous years.

Group performance

Equinor 2023 Integrated Annual Report 110

Low carbon

We aim to be a leading company in the energy transition. It requires advancement of new technologies, new value

chains and new ways of working, as well as strong leadership from policymakers. The Low carbon material topic

seeks to reduce our emissions and increase investments in renewables and low carbon solutions.

●

 Net-zero pathway: Reducing greenhouse gas emissions towards net zero by 2050, including emissions

from the use of our products.

Net-zero pathway

Indicators/Metrics

Upstream CO2 intensity, Scope 1 (kg CO2/boe)

Absolute GHG emissions scope 1 and 2 (million

tonnes CO2e)

Net carbon intensity (gCO2e/MJ)

(Includes GHG emissions from scope 1, 2 and 3 -

Category 11, Use of sold products)

Annual gross CAPEX* to renewables and low carbon

solutions (%)

Renewable energy installed capacity (GW, equity)

Key impacts on nature and society

Equinor has significant emissions from its operations (11.6 mt

CO2e scope 1+2 operated) and from use of sold products (250

million tonnes CO2e, scope 3 - Category 11).

Financial materiality

•

 Policy, legal, regulatory, market and technology

developments, including stakeholder sentiment, related to

the issue of climate change, could affect our current and

future business plans and financial performance. 

•

 Competition for assets, changing levels of policy support,

different commercial/contractual models, as well as interest

and inflation rates pose risks to returns within the

renewables and low carbon industries. 

“Net-zero pathway” pertains to the following GRI standards: GRI 302; GRI 305

For more information regarding our risk factors, please visit 5.2 Risk factors.

Group performance

Equinor 2023 Integrated Annual Report 

111

Contextual introduction

Science and evidence of climate change is clear

In 2023, the world saw further evidence of the effects of, and the prognosis for, global climate change. The Intergovernmental Panel

on Climate Change Synthesis Report (March 2023) found that average global temperatures have already risen 1.1°C since pre-

industrial levels; that every region of the world is facing “widespread adverse impacts” of climate change; and that global warming is

now “more likely than not” to reach 1.5°C above pre-industrial levels. The IPCC’s models found that limiting global warming to 1.5°C

or 2°C would depend on deep global emissions reductions this decade”. Importantly, the IPCC found that feasible, effective, and low-

cost options for mitigation and adaptation are available. According to the International Energy Agency (IEA), the speed of the roll-out

of key clean energy technologies means that demand for coal, oil and natural gas will all peak this decade even without any new

climate policies. Despite the progress, much more is needed to get the world on track to achieve the ambitions of the Paris

agreement. The IEA projects that current policies will result in emissions leading to temperature increases of around 2.4°C, and that

clean energy investment needs to increase from the record level of USD 1.8 trillion in 2023 to around USD 4.5 trillion a year by the

early 2030s to be in line with the 1.5°C pathway.

As an industrial company focused on the production and delivery of oil, gas, electricity, low-carbon products and services, our

business has both direct and indirect impacts on the climate. The indirect emissions (scope 3) associated with the use of the oil and

gas products we sell are many times higher than those under our operational control. There are also emissions in our broader supply

chain, with over 8000 direct suppliers delivering goods and services including transportation of our products and the capital goods

embedded in the projects we develop. While the scale and urgency of the climate challenge are clear, the world faces several related

imperatives, including affordability of energy, security of supply, and ensuring a just and equitable energy transition. This context

presents a complex external landscape for Equinor as we execute on our transition strategy where climate-related changes in policy,

technology, markets and public sentiment presents risks and opportunities that could affect Equinor’s business plans and financial

performance.

Management approach

Finding opportunities in the energy transition

Equinor sees opportunities for value creation in the energy transition both through optimisation of its oil and gas business and through

utilising its competitive capabilities across new areas of the energy system. In a decarbonising world with a broad energy mix, we

expect that policymakers and stakeholders will set a premium on oil and gas produced in a responsible and increasingly carbon

efficient way. We also see long term opportunities in developing a profitable low carbon and renewables portfolio which will help us

meet our own net-zero ambitions and those of society at large. 

In renewables, we have an ambition to become a leading global player in offshore wind. We were an early mover in key offshore wind

markets – including floating – and are well placed to strengthen our competitive position and achieve the economies of scale

necessary to improve returns. To build a competitive wind portfolio, we are applying our extensive experience in technology,

innovation and project delivery. Another key opportunity set lies within low carbon solutions, where we focus on carbon capture and

storage (CCS) and hydrogen. This is a natural role for Equinor: to decarbonise the energy we supply and to help industrial end-users

with transporting and storing captured carbon. Building on our strong position in industrial value chains in Europe, we are applying our

technical and engineering competence to bring low-carbon products and services to the market. We are developing a broad funnel of

projects to be at the forefront of de-risking and maturing new technologies and business models. These include early positioning in

CCS licences, innovative commercial agreements with industrial emitters for the transport and storage of emissions, and piloting of

high-impact hydrogen projects.

Equinor’s pathway to net zero

Equinor’s strategy for achieving net zero is summarised in our Energy transition plan (ETP), a plan that was informed by engagement

with a wide range of stakeholders, including shareholders, governments, non-governmental organisations, academia, and civil society.

The ETP is based on three main pillars: reduction in our operated emissions to 2030; increased allocation of capex to investments in

renewables and low carbon solutions (gross capex*) to 2030; and reduction in the carbon intensity of energy we provide (including

scope 3) according to specific milestones on the way to net zero in 2050. In addition to the main corporate decarbonisation and

transition ambitions, the plan includes a series of short-term industrial project milestones that demonstrate our concrete commitment

to delivering our transition strategy. A 2023 progress report Energy transition plan, summarising performance on key ambitions, can

be found in chapter 1.

Risk management and governance

As outlined in Equinor’s governing documents, the board is responsible for overseeing the company’s strategy, internal controls and

risk management. Climate-related upside and downside risks, and Equinor’s strategic response to these are discussed frequently by

Group performance

Equinor 2023 Integrated Annual Report 112

the board.  Our management system includes our policies, requirements, and guidelines. Together with our corporate governance

principles and performance framework, this forms the basis for how we are embedding climate and sustainability issues in our

business activities. Management of climate-related risks is embedded in our enterprise risk management framework and applied

across the company with the aim of creating value and avoiding incidents. We have standardised risk processes to identify, evaluate

and manage upside and downside risk, and which consider risks with potential to affect our business in the short, medium and long

term.

We assess climate-related risks across two main dimensions: transition risk and physical climate risk. To assess and manage

transition risks we use scenario and sensitivity analysis, including net present value (NPV) stress tests against all relevant scenarios

published by the IEA. Details of our stress testing and scenario analysis are published in section Climate Scenario Testing (Transition

Stress Test), Profitable portfolio. For physical climate risk, we map the exposure of our global asset portfolio against a range of

climate-related perils and scenarios, including heat, flood, fire, and wind, and assess potential asset vulnerability. The results of the

2023 exposure mapping can be seen in section Physical Climate Risk, Profitable portfolio. Equinor aligns its climate-related

disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and we include explicit

reference to the TCFD recommendations in section 5.6. 

Success also requires an internal governance and performance framework that is informed by our transition ambitions.

Climate and energy transition-related goals and ambitions are included as part of the remuneration policies. Performance on the

upstream CO

2

 intensity of the oil and gas portfolio is integrated as a performance indicator for the corporate CEC and is linked to

remuneration. The same performance indicator also influences remuneration as input to the decision on general bonus. The CEO, his

direct reports and Equinor’s wider leadership are assessed based on results within a broad range of topics, including safety, security

and sustainability. The ability of executive leaders to be role models and drive the energy transition forward forms part of the holistic

performance evaluation.

Relevant policies and standards

•

 The Equinor Book -> Our Vision

•

 The Equinor Book -> Who We Are ->

Commitments

•

 Code of Conduct

•

 Our Climate Policies

Group performance

Equinor 2023 Integrated Annual Report 113

Performance disclosure 

LOW CARBON

INDICATORS/METRICS

2023 AMBITION 

(TARGET YEAR)

STATUS

PERFORMANCE

2023

2022

NET-ZERO PATHWAY

Upstream CO2 intensity, Scope 1 (kg CO2/boe)

<7 kg/boe (2025)

¹

<6 kg/boe (2030)

l

6.7

6.9

Absolute GHG emissions scope 1 and 2 (million tonnes

CO2e)

Net 50% emission 

reduction 

(2015 -> 2030)

v

11.6

(-30%)

11.4

(-31%)

Net carbon intensity (gCO2e/MJ)

(Includes GHG emissions from scope 1, 2 and 3 - Category

11, Use of sold products )

-20% (2019 -> 2030)

-40% (2019 -> 2035)

t

67.0

(-1%)

66.5

(-2%)

Annual gross CAPEX* to renewables and low carbon

solutions (%)

>30% (2025)

>50% (2030)

t

20

14

Renewable energy installed capacity (GW, equity)

12-16 installed (2030)

t

0.9

0.6

Highlighted:

Performance indicator.

¹ 2025 ambition changed to 7kg CO2e/boe from 8kg CO2e/boe.

l

Ambition met in 2023. 

o

Ambition not met in 2023. 

t

Plan in place, on track to reach longer-term ambition. 

v

Plan in place, not on track to reach longer-term ambition.

Acting on our own emissions

Our ambition is to reduce emissions from our own operations by net 50% by 2030 compared to 2015 levels. We aim for at least 90%

of this ambition to be realised by absolute emission reductions. Our total scope 1 and 2 operated greenhouse gas (GHG) emissions

for 2023 were 11.6 million tonnes CO

2

, meaning that our operated emissions are 30% lower than in 2015. However, because of

several operational developments, including resumption of the Hammerfest LNG facility in Norway and the Peregrino field in Brazil,

the 2023 operated scope 1+2 emissions were 2% higher than in 2022. While operational factors contributed to a slight increase in

2023, we made progress on the portfolio of emission abatement measures that provide the main contribution to reaching our 2030

ambition. Examples of emissions abatement milestones in 2023 included the start-up of the Hywind Tampen offshore wind supplying

renewable power to the Gullfaks and Snorre fields and the electrification of the Gina Krog field with power from shore. In 2023, the

Norwegian Government approved Snøhvit Future project, for full electrification of the Hammerfest LNG facility, expected to result in

annual reductions of 850,000 tonnes of CO

2

.

Group performance

Equinor 2023 Integrated Annual Report 114

At the end of 2023, Equinor’s emissions prognosis shows that we are tracking slightly behind schedule on our ambition of a 50% net

reduction by 2030, assuming that all current abatement projects in the project portfolio are approved by our partners and authorities. A

portfolio of options for emissions abatement continues to be explored to enable us to reach the 2030 ambition.

Equinor continued its work to reduce the upstream CO

2

 intensity, which was 6.7 kg CO2/boe in 2023, below the level of 6.9 kg

CO2/boe in 2022 and ambition of 7.0 kg CO2/boe in 2025. This development is, on track towards the ambition of 6 kg CO2/boe in

2030, and significantly lower than the industry average of 16 kg CO2/boe (IOGP 2022). Our 2023 upstream flaring intensity was 0.8

tonnes/1000 tonnes of hydrocarbon produced compared with 0.7 in 2022. The main reason for the marginal increase in flaring levels

in 2023 was the restart of production from the Njord A field and increased flaring at Gullfaks C due to turnaround and maintenance.

Equinor’s low flaring levels are due to continued efforts to improve operational efficiency and leveraging the well-established gas

infrastructure in Norway. The average methane intensity of our operated assets in 2023 remained very low at 0.016% - around one

tenth of the industry average (based on OGCI (Oil and Gas Climate Initiative) collective average) of 0.15%. Equity scope 1 CO

2

emissions in 2023 were 9.5 million tonnes, an increase from 9.1 in 2022. The main driver of the increase was the first full-year

operation of the Triton gas-fired power plant since Equinor’s joint acquisition of the facility in 2022.

We were pleased to be named by the IEA as an “example of best practice” for the average emissions intensity of our Norwegian

upstream operations in its November 2023 report on the Oil & Gas Industry in Net Zero Transitions.

The IEA also provided a framework for assessing oil and gas company alignment with its Net Zero Emissions scenario. According to

the framework, companies in the sector can only be fully aligned with Net Zero Emissions if they do not have investments in new oil

and gas projects. For companies continuing to invest in new projects, the framework assesses alignment across two dimensions:

scope 1+2 emissions reductions and plans for investment into clean energy. The combination of Equinor's carbon efficient operations

and its 2030 capex ambitions put us in the leading segment for each category.

Group performance

Equinor 2023 Integrated Annual Report 115

Source: https://www.iea.org/reports/the-oil-and-gas-industry-in-net-zero-transitions

Increased investments in renewables and low carbon solutions

In 2023, we saw continued progress on the leading indicator of capital allocation to transition-related activities, with 20% of our gross

capex* allocated to renewables and low carbon solutions, a materially higher share than in 2022 (14%), and on track towards our

ambition of 50% in 2030. Over 90% of this investment was allocated to renewables, with the remainder allocated to our Northern

Lights Carbon Capture and Storage (CCS) project. However, on net carbon intensity (NCI), the metric we use to track our corporate

progress towards net zero in 2050, we saw a regression in 2023. Our ambition is to reduce the NCI of the energy we provide by 20%

by 2030 and by 40% by 2035. This ambition includes scope 3 emissions from the use of our products. The NCI of the energy we

provided in 2023 was 67 CO2e/MJ, which is 1 percentage point higher than in 2022 and 1% reduction compared to the 2019 baseline

year. The year-over-year rise was due to an increase in the ratio of oil to gas in our production portfolio as the energy security crisis in

Europe stabilised and the extraordinary increase in demand for Equinor’s gas seen in 2022 subsided. Key drivers for reducing net

carbon intensity in the coming years will be rapid buildout of our renewables business and the deployment and scaling up of low

carbon value chains, including carbon capture and storage (CCS). For renewables, we have an ambition to have an installed capacity

of 12-16GW by 2030, while for CCS we increased our ambitions in early 2024, targeting 30 million to 50 million tonnes per year (mtpa)

by 2035 - up from our previous ambition of 15-30mtpa.

In 2023, Equinor’s installed renewable capacity was 0.9GW (equity share) and renewable energy production was 1938GWh, an

increase on both metrics compared to 0.6GW and 1649GWh in 2022. The delivery of first power from our Dogger Bank A project in

October 2023 marked a significant milestone in the development of what will be the world’s largest offshore wind farm. The project,

which is expected to reach full commercial operation in 2026, is planned to have a total capacity of 3.6GW. Our acquisition of Rio

Energy,

a leading onshore renewables company in Brazil and the closing of the acquisition of Danish solar company BeGreen energy added

around 8 GW of capacity to our project pipeline.

Like other developers, Equinor faced an increasingly challenged business environment in the offshore wind sector in 2023. Empire

Wind, our flagship development on the US east coast, saw increased costs due to inflation and supply chain constraints.

Nevertheless, we remain committed to the ambition of profitable growth in renewables DELETED TEXT. US federal approval of

Empire Wind in November was a welcomed development and we continue to work to improve value creation for the project.

DELETED TEXT

In addition to progress on renewables, we saw an increase in the volume of CO2 stored in 2023 to 0.8 million tonnes, up from 0.5

million tonnes in 2022. Accumulated, Equinor has stored 27.1 million tonnes of CO2 on the Norwegian Continental Shelf since 1996.

We saw two major developments in our CCS portfolio in 2023: the acquisition of a 25% stake in Bayou Bend, a major CCS project in

the US Gulf Coast with gross potential storage resources of more than one billion metric tonnes, adding 5 million tonnes per year

(mtpa) of transport and storage to our portfolio; and the award by the UK North Sea Transition Authority to Equinor and its partners of

additional CCS storage licenses, which will enable the Northern Endurance Partnership project to double its CO

2

 storage capacity to

around 10 mtpa from 2030.

These projects will be important contributors to our new ambition of 30-50 mtpa of transport and storage by 2035.

As outlined in our Energy transition plan, delivering on each pillar of our transition strategy will require the necessary frame conditions

and the support of policy makers. Our ambitions to continue to expand our global renewables and CCS portfolios will be contingent on

Group performance

Equinor 2023 Integrated Annual Report 116

governments putting in place the necessary permitting and fiscal regimes and making acreage available for both offshore wind and

carbon storage.

Supply chain decarbonisation

In our broader supply chain, we see opportunities to use our procurement and supplier relationships to drive decarbonisation in

integrated and adjacent sectors, including shipping, steel, and cement. Our Energy transition plan includes a commitment to “work

with our suppliers and customers, host governments, and civil society to develop the business models, policies and frameworks to

enable the world to achieve net zero by 2050”. In 2023 Equinor established group-wide expectations to all our suppliers that lay out

expectations to have net-zero plans and emissions reductions ambitions, and to disclose their emissions. They also include an

expectation for suppliers to work with their own suppliers on emissions disclosure and net-zero plans. Progress on the number of

suppliers that meet these expectations will be followed up and published as part of our annual reporting and internal performance

indicators were established by our procurement organisation to measure and incentivise compliance.

In 2023, we also signed up to the CDP Supply Chain module to get more detailed insight into our suppliers’ emissions data and

climate policies. Equinor contacted the most material suppliers, in total representing around two thirds of spending on upstream goods

and services: 60% responded, with over three quarters of respondents reporting scope 1+2 emissions and scope 3 emission

estimates. The 2023 data will provide a baseline from which we will be able to measure progress on our supplier expectations in

future years.

Monitoring of climate performance of most material suppliers

Oil and Gas Decarbonisation Charter

At COP28, Equinor signed the historic Oil and Gas Decarbonisation Charter, an industry-wide initiative joined by 50 national and

international oil producing companies, equivalent to more than 40% of global oil and gas production. While Equinor’s emissions

reduction and transition plans already exceed the Charter’s provisions, the initiative provides a much needed platform for ambition and

transparency among companies and a framework for cooperation with national oil companies continued decarbonisation efforts.

Global Flaring and Methane Reduction Fund

In December 2023, Equinor became a founding corporate donor to the Global Flaring and Methane Reduction (GFMR) fund, a new

World Bank-administered initiative to support flaring reduction and methane abatement in the oil and gas sector. The GFMR is a multi-

donor trust fund focused on helping developing countries cut carbon dioxide and methane emissions generated by the oil and gas

industry. According to the World Bank, the GFMR will provide more than $250 million and mobilise billions from the private sector to

support those countries with the least capacity and resources to address these emissions. The partnership will focus on providing

grant funding, technical assistance, policy and regulatory reform advisory services, institutional strengthening, and mobilising

financing to support action by governments and operators.

OGCI Satellite Monitoring Campaign

Policy and partnerships

In addition to laying out our own ambitions toward net zero, our Energy transition plan is

an invitation to our partners, customers, suppliers, and host governments to work

together on the necessary actions to accelerate the energy transition. In 2023 we

achieved significant progress with partners in the public and private sector on

accelerating decarbonisation.

Group performance

Equinor 2023 Integrated Annual Report 117

Together with fellow members of the Oil and Gas Climate Initiative, we made significant progress on a key initiative for industry

leadership on methane emissions in 2023. OGCI’s flagship programme on methane is the Satellite Monitoring Campaign, which

collects high-resolution data on large-magnitude methane plumes and uses confidential engagement with local operators to help them

identify and address the sources of the emissions. The SMC published its first set of findings in 2023; continued with execution on the

second phase of the project in Algeria, Kazakhstan, and Egypt; and began work on the third phase of the project, which more than

doubles the number of countries and assets covered and has the potential for the elimination of millions of tonnes of CO

2

e per year.

Policy engagement and advocacy

Equinor promotes policies supporting the goals of the Paris Agreement and actions to accelerate the energy transition. We also

actively work to ensure that the policy positions and advocacy of our membership organisations are supportive of and aligned with the

objectives of the Paris Agreement. To ensure transparency, we conducted and published our annual review of industry association

and membership organisations in 2023 showing areas of potential misalignment. The 2023 review included details of our withdrawal

from industry association which was found to be misaligned with our climate policies. Our climate policy positions and our

expectations of our membership associations are available on Equinor.com. We engage with a wide range of external independent

benchmarking and assessment organisations, including Climate Action 100+, CDP, InfluenceMap and others, in an effort to be a

proactive stakeholder in the development of effective frameworks for assessing corporate performance in the energy transition.

Indicators 

Boundary

Unit

2023

2022

2021

2020

2019

2018

Energy production

Oil and gas production

Operational

control

million barrels of

oil equivalent

(mmboe)

1,163

1,129

1,115

1,106

1,055

1,077

Oil and gas production

Equity basis

million barrels of

oil equivalent

(mmboe)

760

744

759

758

757

770

Gas to power

Equity basis

GWh

2,298

1,012

0

0

0

0

Renewable energy

delivered to grid

Equity basis

GWh

1,859

1,641

1,562

1,662

1,754

1,251

Renewable energy

generated for use by

Equinor

Equity basis

GWh

80

8

0

0

0

0

SUM renewable energy

generated

Equity basis

GWh

1,938

1,649

1,562

1,662

1,754

1,251

Renewable installed

capacity

Operational

control

GW

1.2

0.9

0.7

0.7

0.7

0.8

Renewable installed

capacity

Equity basis

GW

0.9

0.6

0.5

0.5

0.5

0.6

Net carbon intensity

Operational

control/Equity

basis

g CO

2

e per MJ

energy produced

67.0

66.5

67.1

67.8

67.8

n/r

CO

2

 emissions captured

and stored per year

Operational

control

million tonnes

0.8

0.5

0.3

0.9

1.2

1.3

Accumulated CO

2

emissions captured and

stored

Operational

control

million tonnes

27.1

26.3

25.8

25.6

24.6

23.4

Gross capital expenditure*

in renewables and low

carbon solutions, share of

total

Equinor group

%

20

14

11

4

2

4

Top suppliers, with near-

term emissions reductions

target, absolute or

intensity basis, within

2030

Equinor group

%

71

1

65

n/r

n/r

n/r

n/r

Indicators

Boundary

Unit

2023

2022

2021

2020

2019

2018

Scope 1 GHG

emissions

Operational control

million tonnes

CO

2

e

11.5

11.4

12.0

13.3

14.7

14.9

Scope 1+2 GHG

emissions Norway

Operational control

million tonnes

CO

2

e

10.9

11.0

11.1

11.9

12.4

13.0

Scope 1+2 GHG

Operational control

million tonnes

11.6

11.4

12.1

13.5

14.9

15.1

Group performance

Equinor 2023 Integrated Annual Report 118

emissions

CO

2

e

Scope 2 GHG

emissions (location

based)

Operational control

million tonnes

CO

2

e

0.1

0.1

0.1

0.3

0.2

0.2

Scope 2 GHG

emissions (market

based)

Operational control

million tonnes

CO

2

e

3.1

2.5

2.7

2.5

2.9

3.0

Scope 3 GHG

emissions (GHG

Protocol cat. 11, use of

sold products)

Equity basis

million tonnes

CO

2

e

250

243

249

250

247

252

Business travel GHG

emissions (GHG

Protocol cat. 6)

Operational control

million tonnes

CO

2

e

0.09

0.05

0.01

0.02

0.1

0.1

CO

2

 emissions

Operational control

million tonnes

11.1

11.1

11.6

12.9

14.2

14.4

CO

2

 emissions excl.

flaring

Operational control

million tonnes

10.6

10.4

11.0

11.9

13.0

13.3

CO

2

 emissions from

flaring

Operational control

million tonnes

0.6

0.6

0.7

1.0

1.2

1.2

CO2 emissions from

upstream operations

Operational control

million tonnes

7.5

7.6

7.8

8.7

9.6

9.3

CO

2

 emissions from

midstream operations

Operational control

million tonnes

3.6

3.5

3.8

4.2

4.6

5.1

CO

2

 emissions from

other operations

Operational control

million tonnes

0.01

0.02

0.01

0.01

0.01

0.11

CO

2

 emissions

Equity basis

million tonnes

9.5

9.1

9.9

10.1

11.5

11.6

Upstream CO

2

emissions intensity

Operational control

kg CO

2

 per

barrel of oil

equivalent

(boe)

6.7

6.9

7.0

8.0

9.5

9.0

Upstream CO

2

emissions intensity

Equity basis

kg CO

2

 per

barrel of oil

equivalent

(boe)

8.1

8.5

8.8

9.2

10.7

10.3

Maritime CO

2

 emissions

Operational control

million tonnes

CO

2

e

4.1

3.8

3.8

4.9

n/r

n/r

CH

4

 emissions

Operational control

thousand

tonnes

11.5

11.2

14.5

17.7

19.0

20.0

CH4 intensity

Operational control

% (m³ CH4

emitted per m³

marketed gas)

0.02

0.02

0.02

0.03

0.03

0.03

Hydrocarbons flared

Operational control

thousand

tonnes

182

203

201

339

414

396

Group performance

Equinor 2023 Integrated Annual Report 119

Upstream flaring

intensity

Operational control

tonnes of

hydrocarbons

flared per 1000

tonnes of

hydrocarbon

produced

0.8

0.7

0.9

1.7

2.5

2.4

Routine flaring (share of

total)

Operational control

%

4

3

14

31

27

21

Performance evaluation

For Equinor’s decarbonisation and transition ambitions, 2023 was a year of execution and capacity building against a backdrop of

continuing energy security concerns and new market challenges. Our 2023 performance on operated scope 1+2 emissions reductions

and net carbon intensity (NCI) was in line with expectations. Our year-over-year performance underlines the effects of market

fluctuations, operational factors and project schedules on individual metrics, as well as the need to maintain a multiyear perspective to

see the effects of decarbonisation and transition investments.

2023 saw a significant increase in the power generated from our renewable portfolio as well as substantial additions to our portfolio

pipelines in renewables and CCS. As deployment of renewable and CCS accelerates in the coming years, we expect to see greater

progress in NCI reductions, with the majority of progress towards the 20% reduction ambition in 2030 expected in the second half of

this decade. As a leading indicator, capital allocation is the metric that showed the most progress in 2023 as we increased the share

of gross capex* to renewables and low carbon solutions, from 14% in 2022 to 20% in 2023.

We remain committed on delivering on the ambitions in our Energy transition plan. Meeting the 2030 and 2035 NCI ambitions will put

us well ahead of society’s progress towards net zero in 2050. Equinor’s ability to deliver on its transition ambitions and its net 2050

ambition will continue to be dependent on enabling policy and regulatory frameworks. It will also require continued engagement with

suppliers and peers. In both of these areas, we saw positive progress in 2023. Our participation in the CDP Supply Chain module

gave use a higher level of granularity into supplier emissions plans and performance while our new climate expectations to suppliers

send an important signal that we will use our influence as a customer to drive decarbonisation through the value chain. We are proud

to have engaged in several initiatives in 2023 to help the broader industry efforts towards decarbonisation, including through our

participation in the Oil and Gas Decarbonisation Charter, our contribution to the World Bank Global Flaring and Methane Reduction

fund and our ongoing work with peers and partners through bilateral engagement and through industry associations.

2.3 Fuelling innovation

Building on our strong technological legacy, we are developing technologies to deliver reliable energy

and realise our ambitions in the Energy transition plan towards net zero by 2050.

One of our strategic ambitions is to transform through technology. Building on our strong technological legacy, we are stepping up on

innovation. In 2023 we invested more than USD 650 million

9

 in R&D including digitalisation efforts. The TDI business area is working

closely together with the other BAs to solve the most important challenges to reach our ambitions. By combining partnerships,

competence, data, technology and by fully utilising the opportunities within AI, we aim to secure longevity and competitiveness in our

oil and gas portfolio as well as unlock new business opportunities in the energy transition.

In our Energy transition plan, we set out to allocate 40% of our R&D funding to low carbon and renewable technologies by 2025. Two

years ahead of target, we achieved this ambition level in 2023.

Equinor is deepening its external technology collaboration in several dimensions. The main ambition for the academia agreements is

to develop capabilities that are needed to succeed in both current and new business. We are collaborating extensively with research

facilities and suppliers in Norway and internationally to accelerate innovation. We are also exploring how technology ecosystems,

where industrial players are collaborating with start-ups and research facilities, can contribute to solving the big challenges the energy

transition brings.

Biodiversity is a topic with special focus across the research portfolio. Equinor collaborates and co-innovates with international

academic institutions and consultancies to ensure trustworthy and acknowledged results. A few examples of our work in this space

9

Research and digital investments included.

Group performance

Equinor 2023 Integrated Annual Report 120

include enhancing understanding of potential impacts of our activities on seabirds and migratory birds and utilising new infrastructure

such as drones, surveillance cameras etc. to document and disclose impacts on nature.

In the following sections, we summarise some of the key technologies that we are developing to deliver reliable energy, deliver on our

ambitions in the Energy transition plan and finally reach net zero by 2050. A significant share of the technologies and competence that

are developed for oil and gas can be reused for renewable, low carbon solutions and other new possible future business

opportunities.

Oil and Gas

To unlock the total potential in our oil and gas portfolio we are combining data, new technology and competence. Over the last two

years we have invested USD 200 million in new high-quality exploration seismic data with technologies like Ocean bottom and

Topseis on the NCS, representing a step change in image quality. To significantly increase insight and processing speed we have

developed AI based technologies using deep learning algorithms which recognise complex patterns in pictures, sound waves, and

other data sets. By combining new technologies with our industry leading subsurface competence, we are identifying opportunities in

mature areas that we were not able to see before. An example of this is the Troll area where 500 million new boe were proven with a

significant upside potential. This is equivalent to a full year of NCS equity production.

To secure competitiveness across the portfolio, we are constantly seeking improvements through technology in safety, emission

reduction, value generation and cost. Some examples of such improvements from 2023 include:

By using drones for inspection in confined spaces, we reduced human exposure to hazardous components. Also, robots are used for

observation and cleaning operations on drilling deck to avoid humans in red zone.

In 2019 we opened our Integrated Operation Centre (IOC) in Bergen. IOC is monitoring a huge amount of data from our offshore

operations to optimise production and improve decisions through AI. The value created from increased production and reduced CO

2

emissions was more than USD 2 billion in 2023 (100%).

Using AI-based predictive maintenance to reduce unplanned downtime is one area where we have already seen large savings. One

recent example is from the Kårstø processing plant where a machine learning algorithm picked up early signals of a turbine failing.

The savings from this alone are estimated to be USD 30 million. We are widely implementing predictive maintenance across our entire

portfolio.

Offshore wind

In 2023 we made several technological achievements within offshore wind. Our focus areas in the offshore wind research are

improved early phase assessments, high quality metocean and wind modelling, improved hydrodynamics and marine concepts for

offshore wind farms. Environmental site characterisation for safe and cost-efficient design and operation of offshore wind farms is key.

We are utilising our world class competence on marine biology and weather/wake models for wind farm planning and layout.

Building on our experience from the Integrated Operation Centre we are introducing new technology for operation and maintenance at

the Dogger Bank windfarm. We have developed digital solutions, that in combination with sensor data and machine learning

algorithms, give us a unique operating system that can expand the lifetime of our wind turbines. These solutions are currently not

available in the industry. This has extended the expected lifetime of the project from 25 to 35 years, allowing us to increase revenues

from the merchant period, reduce operational costs and increase efficiency. We intend to scale these solutions to the entire wind

portfolio.

We are using our offshore wind farms like Hywind Tampen, the world’s largest floating wind farm, to increase knowledge of possible

environmental impact and how these can be mitigated.

Hydrogen and Ammonia

Equinor's research portfolio includes several projects addressing the safety, governance and potential environmental effects of

Hydrogen and Ammonia. Minimising and monitoring hydrogen leakages is vital for sustainable hydrogen deployment. Equinor has

initiated projects aimed at detection and quantification of hydrogen emissions, as well as the development of sensors and

measurement procedures for fugitive hydrogen emissions.

Ammonia, a low carbon maritime fuel, has significant potential and we are participating in a pilot to demonstrate an ammonia-power

combustion engine, combined with an ammonia-powered fuel cell. The pilot combines EU funding through the EU ShipFC project and

ENOVA funding through the APOLLO project. The pilot is a platform supply vessel “Viking Energy”, owned and operated by Eidesvik

Offshore ASA and contracted to Equinor. Ammonia bunkering solutions will also be tested.

Group performance

Equinor 2023 Integrated Annual Report 121

To realise the hydrogen value chain, large scale hydrogen storage in salt caverns may be an important enabler. Equinor has

conducted technology assessments and established a roadmap for hydrogen salt cavern qualification which includes participation in

external pilot projects including the EU-funded Hypster project.

Carbon Capture and Storage (CCS)

We have 27 years of experience from CCS on the NCS and our subsurface and drilling capabilities are crucial for de-risking and

developing CO

2

 storage sites. Our experience in developing complex large offshore infrastructure, our pipeline operational capabilities

and high-end technology capabilities like multiphase flow gives us a great starting point to develop next generation gas infrastructure

– CO

2

 and H

2

.

The research projects address the entire CCS value chain to mature, cost-efficient technology solutions within CO

2

 capture, transport,

and subsurface storage. To ensure safety and sustainability it is key to understand CO

2

 behaviour and appropriately monitor CO

2

 in

the subsurface.

Equinor has 22% ownership in Test Center Mongstad (TCM), the world's largest test center for CO

2

 capture. Since its inception in

2012, almost all key global carbon capture companies have tested and developed technologies here. In 2023 we signed an

agreement to continue operations of TCM for 2 more years.

In 2023 we started implementing AI algorithms for automatic seismic fault interpretation, which are aimed at improving precision and

speed of fault interpretation for both oil and gas and within CCS. For CCS this is highly important as accurate and efficient mapping of

potential CO

2

 leakage routes along faults are vital for identification of safe, long-term CO

2

 sequestration sites.

Venture opportunities

Equinor Ventures is Equinor's corporate venture capital arm investing in innovative scalable companies and developing relationships

to accelerate the energy transition. We believe that the innovation, creativity and agility of startups in collaboration with industrial

players like Equinor can drive change towards a low-carbon future. More than 70% of our venture capital and more than 90% of new

investments are allocated to renewables, low-carbon solutions and future opportunities.

Last year we entered a strategic partnership with Captura to develop an industrial scale solution to remove CO

2

 from the ocean. We

will pilot Captura’s Direct Ocean Capture (DOC) technology at the Kårstø processing plants where we re-use the seawater used for

cooling the processing plant. The captured CO

2

 is planned for the commissioning of the Northern Lights facilities. This pilot is an

important step towards commerciality for DOC.

The second example is our partnership with Lithium de France (ldF), a start-up aiming to extract lithium and heat from brines. Equinor

and LdF have a strategic collaboration agreement which includes a wide range of topics related to lithium extractions from brines and

where Equinor’s core competence like subsurface is relevant. We are currently testing Direct Lithium Extraction (DLE) technologies at

Equinor’s research center in Trondheim. The DLE technologies could pave the way for new types of lithium resources with a lower

environmental footprint than current extraction methods.

Reporting segment performance

Equinor 2023 Integrated Annual Report 122

Reporting segment performance

3.1

3.2

3.3

3.4

3.5

3.6

Our reporting segment

s

E

xploration

& P

roduction Norway

Exploration & Production International

Exploration & Production USA

Marketing,

M

idstream and

P

rocessing

Renewables

Other group

Reporting segment performance

Equinor 2023 Integrated Annual Report 123

Reporting segment performance

Our reporting segments

Equinor’s operations are organised into business areas and followed up through operating

segments in order to effectively manage and execute our strategy, including the ability to

measure the progress of the business against its strategic goals

Reporting segment performance

Equinor 2023 Integrated Annual Report 124

3.1 Exploration & Production Norway

The Exploration & Production Norway (E&P Norway) segment covers exploration, field development, production, and operations on

the Norwegian continental shelf (NCS), which includes the North Sea, the Norwegian Sea, and the Barents Sea. Equinor holds

202

operated licences and is partner in

82

 licences across the NCS.

After more than 50 years of operation, Equinor’s equity production from the NCS remains high, at around 1,374 mboe per day

generated from

46

 fields operated by Equinor and

7

 fields operated by partners. E&P Norway’s net operating income exceeded USD

29 billion in 2023.

1) Producing over 2mboe/d

Equinor has a strong belief in the longevity of the NCS and expects substantial value creation for decades to come. The production

from NCS strengthens the energy security in Europe and is a key enabler in realising Equinor’s strategy.

Exploration activity

 resulted in 12 commercial discoveries in 2023 all of which were made close to existing infrastructure, in line with

the exploration strategy. Approximately 80% of the wells each year are focused on infrastructure led exploration, while the remaining

20% test new ideas or new plays. Exploration activity was carried out in 28 wells with 26 wells completed in 2023, including 7

sidetracks, compared to activity in 22 wells with 19 wells completed in 2022.

Reporting segment performance

Equinor 2023 Integrated Annual Report 125

E&P Norway has a

 project pipeline

 of over 20 sanctioned projects where the largest projects are:

●

 Johan Castberg (Equinor 50%, operator), a subsea field development connected to the Johan Castberg FPSO currently

under construction, with scheduled start-up in the fourth quarter of 2024. 

●

 Irpa (Equinor 51%, operator), a tie-in project to Asta Hansteen with planned start-up in 2026.

●

 Halten East (Equinor 57.7%, operator), a tie-in project to Åsgard with scheduled start-up in 2025.

●

 Snøhvit Future project (Equinor 36.79%, operator), which cuts emissions and extends the life of the Snøhvit field. Scope

covering onshore gas compression has scheduled start-up in 2028.

Carbon reduction ambitions:

E&P Norway’s ambition is to reduce the CO

2

 emissions from operated fields by 50% by 2030, 70% by 2040, and be close to net zero

by 2050 (when compared to 2005 levels). E&P Norway aims to achieve these targets through energy efficiency (20%), consolidation

(20%) and electrification of long-lived production hosts (60%).

E&P Norway has adopted a plan backed by concrete actions and has sanctioned two thirds of the projects needed to reach the 2030

ambition while the remaining projects are being further matured.

Ongoing projects to electrify Sleipner, Troll B and Troll C (scheduled start-up in 2024), Oseberg (scheduled start-up in 2026), Njord

(scheduled start-up in 2027), and Snøhvit Melkøya (scheduled start-up in 2030) are expected to contribute further to reducing the

carbon footprint.

Electrification on the Norwegian continental shelf will reduce emissions in Norway. Offshore, the energy efficiency of power production

is only about 25-35%, whereas in Europe, efficiency is about 60% if used in a gas-fired power plant, and close to 100% when used for

heating and industry. Replacing gas turbines, either completely, or partially, with electric power therefore provides increased energy

efficiency and thus climate benefits.

Highlights for carbon reduction in 2023 include:

●

 Hywind Tampen, offshore wind farm supplying power to Snorre and Gullfaks field was officially opened in August 2023.

●

 Gina Krog started receiving power from shore in September 2023.

Key events

●

 January: 26 new licences awarded in January 2023

●

 February: PDO approved for

Halten East

●

 March: Divested 28% equity share in the

Statfjord

 field to OKEA.

●

 March: Acquired equity interest in five discoveries in the Troll, Fram and Kvitebjørn area from Wellesley Petroleum AS

●

 April: The

Bauge

 field started production

●

 May: The

Njord

 field officially reopened

●

 May:

Johan Sverdrup

 produces at increased plateau

●

 June: PDO approved for

Irpa

and

Verdande

●

 August: The floating wind farm

Hywind Tampen

 officially opened

●

 August: The

Statfjord East

 Gas lift project started production six months ahead of schedule 

●

 September: Replaced

Åsgard

 subsea gas compression

●

 September: PDO submitted for the

Eirin

gas field 

●

 September:

Gina Krog

 started receiving electricity from shore

●

 October:

Breidablikk

began production, four months ahead of schedule

●

 December: Equinor entered into an agreement to acquire Shell’s equity in and operatorship in the

Linnorm

 discovery in the

Norwegian sea

●

 January 2024: PDO for the

Eirin

gas field approved

●

 January 2024: 39 new licences awarded in January 2024

Reporting segment performance

Equinor 2023 Integrated Annual Report 126

Strategic progress

Transform the NCS to deliver sustained value for decades

Realising the potential of the NCS

Delivering on CO

2

 ambitions

From an oil and gas province to a

broad energy province

Equinor expects to continue to add

profitable barrels from the NCS towards

2035. With a robust project portfolio in the

execution phase and a valuable non-

sanctioned portfolio, field development

activity is expected to remain high on the

NCS. In addition, a large remaining

potential from improved recovery and

exploration could be realised through new

technologies. Overall, E&P Norway’s

ambition is to deliver 20-30 exploration

wells and 50-70 improved recovery wells

each year. This would result in at least

125 wells every year, including project

wells.

In 2023, E&P Norway was awarded 26

new production licences, and 12

discoveries were made close to existing

infrastructure.

The CO2 abatement portfolio is

progressing towards the ambition of a

50% emissions reduction from operations

in Norway by 2030, through electrification,

consolidation, and improved energy

efficiency on the existing installations. In

2023 approvals were received for Njord

Electrification and the Snøhvit Future

Project. The Gina Krog platform was

electrified and connected to the Utsira

High power grid in September. In August

the Hywind Tampen floating offshore wind

farm was officially opened, and it is

delivering 35% of Snorre and the Gullfaks

fields total energy needs.

Norway Energy Hub, Equinor's industrial

plan to transform the NCS into a broad

energy province led by E&P Norway, saw

good progress. Equinor and RWE signed

a collaboration agreement to develop low-

carbon energy solutions with a focus on

establishing an energy partnership

between Germany and Norway.

Equinor applied for new CO

2

 storage

acreage during the year, and matured

Smeaheia CO

2

 storage project further.

The Norwegian government also

announced two processes for awarding

offshore wind acreage on competitive

terms. Equinor is seeking to participate in

both. The first is announced to be held by

the Government in March 2024. Further

licence rounds from the authorities are

expected in 2025. Equinor continues to

support further development of CCS,

offshore wind, and hydrogen in Norway as

part of this industrial plan.

Exploratory wells drilled

1)

 For the year ended 31 December

2023

2022

2021

North Sea

Equinor operated

12

6

10

Partner operated

9

3

2

Norwegian Sea

Equinor operated

3

4

2

Partner operated

1

4

0

Barents Sea

Equinor operated

0

2

2

Partner operated

1

0

2

Total (gross)

26

19

18

1) Wells completed during the year, including appraisals of

earlier discoveries.

Reporting segment performance

Equinor 2023 Integrated Annual Report 127

Performance review

Operational performance

In 2023, E&P Norway delivered solid production throughout the year, continuing to be a reliable energy provider to Europe. The NCS

remains a globally competitive oil and gas province with significant high value resources that can be developed and produced with a

low carbon footprint enabled by world-class infrastructure.

Total production from the NCS in 2023 was on par with the production in 2022, with a strong close to the year compensating for

operational challenges in second and third quarter. In total for 2023, liquids production increased by 7% and gas production

decreased by 7% - delivering a total production of 1,374 mboe per day compared to 1,387 mboe per day in 2022. The decrease in gas

production was mainly caused by natural decline and unplanned turnaround extensions on several gas fields, including Troll and

Aasta Hansteen. The liquids production benefitted from Johan Sverdrup phase 2 coming on stream and increased full field capacity, in

addition to the startup of Breidablikk and re-start of production from Njord, Hyme and Bauge. 

Over time, the volumes lifted and sold will equal entitlement production, but may be higher or lower in any period due to differences

between the capacities and timing of the vessels lifting the volumes and the actual entitlement production during the period.

In 2023, the Troll field produced an amount of

gas equivalent to 26% of E&P Norway's total

gas production on the NCS.

In 2023, Johan Sverdrup achieved a production

efficiency of 96%.

After 6 weeks of ramp-up, Breidablikk already

produced 20 mboe/d.

Reporting segment performance

Equinor 2023 Integrated Annual Report 128

E&P Norway - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

38,340

75,930

(50%)

Operating, selling, general and administrative expenses

(3,759)

(3,782)

(1%)

Depreciation, amortisation and net impairment losses

(5,017)

(4,167)

20%

Exploration expenses

(476)

(366)

30%

Net operating income/(loss)

29,087

67,614

(57%)

Adjusted earnings*

29,577

66,260

(55%)

Additions to PP&E, intangibles and equity accounted investments

5,939

4,922

21%

Organic capex*

5,383

4,848

11%

For the year ended 31 December

Operational information

2023

2022

Change

E&P Norway entitlement liquid and gas production (mboe/day)

1,374

1,387

(1%)

E&P Norway entitlement liquids production (mboe/day)

645

605

7%

E&P Norway entitlement gas production (mboe/day)

729

782

(7%)

Average liquids price (USD/bbl)

78.6

97.5

(19%)

Average internal gas price (USD/MMBtu)

12.20

31.22

(61%)

Financial performance

Equinor revenues continued to remain strong for 2023 with production on par with 2022, even though lower prices for gas and liquids

during the year led to a decrease in net operating income and revenues compared to 2022. Other income was impacted by gain from

sale of ownership shares, with USD 222 million in 2023 for the Statfjord area compared to USD 730 million for Martin Linge and

Ekofisk in 2022. In addition, other income in 2022 included a significant positive effect on embedded derivatives from higher short

term gas prices.

Increased operation and maintenance costs, as well as environmental expenses led to increased operating, selling, general and

administrative expenses from 2022 to 2023. The development in interest rates and increased cost estimates impacted the Gassled

removal cost negatively, when comparing 2023 to 2022. In contrast, falling energy prices, led to decreased transportation and

electricity cost partially offsetting the increases. Exchange rate development in the NOK/USD during the year 2023 offset the cost

increases and their visibility in the reported numbers.

The NOK/USD exchange rate development in the year and the sale of ownership shares in Martin Linge and Ekofisk in 2022 reduced

depreciation, amortisation and net impairment losses in 2023. However, depreciation, amortisation and net impairment losses were

negatively impacted by a USD 588 million impairment of a North Sea asset in 2023

as opposed to net impairment reversals of USD

819 million in 2022 driving an overall increase year-on-year.

Increased exploration drilling activity levels (28 wells this year compared to 22 wells last year) and increased seismic and field

development led to an increase in exploration expenses in 2023 compared to 2022. An increased capitalisation rate partially offset the

increase.

During 2023, organic capex* and additions to PP&E, intangibles and equity accounted investments increased mainly due to increased

activity in the sanctioned projects portfolio both for Equinor- and partner operated projects. Decreased investments on the Johan

Sverdrup field following completion of phase 2 partially offset this.

Reporting segment performance

Equinor 2023 Integrated Annual Report 129

Sustainability performance

E&P Norway

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF) (number per

million hours worked)

0.4

0.5

Upstream CO2 intensity, Scope 1 (kg CO2/boe)

6.4

6.6

Monitoring indicator

Total Recordable Injury Frequency (TRIF)

(number per million hours worked)

3.4

3.8

SIF for E&P Norway improved in 2023 compared to the prior year. Although there was a slight increase in the number of actual

incidents compared to the previous year, the reduction in the number of incidents with serious potential, especially those associated

with falling objects, offset this increase. TRIF also improved compared to 2022. However, there are still too many personnel injuries.

Throughout the year, reinforcement measures in the "I am Safety Roadmap" were carried out systematically. Measures related to

increased attention on observations, reporting, and actions to prevent falling objects positively influenced the number of falling objects.

Increased attention to quality in compliance and leadership conversation, and pre-job briefings on site also contributed positively to

identifying and managing risks in the execution of work.

The reduction in the upstream CO

2

 intensity is primarily attributable to Johan Sverdrup being fully electrified and producing at

increased plateau. These gains were partially offset by turnarounds on the Troll fields, declining production at Martin Linge and startup

of production on Njord. 

CO

2

capture and storage (CCS) is important for E&P Norway’s sustainability performance. Emissions of more than 700 Ktonnes CO

2

were avoided in 2023 due to CCS at the Sleipner and Snøhvit fields. Through energy management, E&P Norway is making continuous

efforts to improve energy efficiency of its operations. In 2023, more than 60 energy efficiency measures were implemented with the

potential to reduce around 200 Ktonnes of CO

2

.

As a response to Equinor’s biodiversity position, site-specific inventories (SSI) of important biodiversity features were established for

all facilities on the NCS in 2023. The SSI also included identification of possible pressures from site activities and an assessment of

how the pressures were managed.

Reporting segment performance

Equinor 2023 Integrated Annual Report 130

3.2 Exploration & Production International

The Exploration & Production International (E&P International) reporting segment covers exploration, development and production of

oil and gas outside the NCS and the US.

E&P International was present in 12 countries and had production in 10 countries in 2023 producing at around 345 mboe per day,

from the combination of five operated assets and 16 partner operated assets. This accounted for around 17% of Equinor’s total equity

production of oil and gas in 2023, compared to 16% in 2022. E&P International reported a net operating income of USD 2.3 billion in

2023.

Equinor believes that continued development within well-established areas of the international portfolio will realise high value potential

for the future.

Exploration activity

: In 2023, four onshore appraisal wells in Argentina were completed by the operator YPF in Bajo del Toro license

in Vaca Muerta, including test production. Eight exploration licences were awarded in the year with four in the UK, three in Angola and

one in Brazil.

A strong

project pipeline

 in core countries:

Brazil

●

 Bacalhau (Equinor 40%, operator) is being developed with subsea wells tied back to an FPSO, with first oil scheduled for

2025. A second phase of the Bacalhau field development is being considered to fully exploit the value potential.

●

 Raia (Equinor 35%, operator) includes both oil and gas discoveries and will be developed with a new FPSO, with start-up

expected in 2028. Raia represents one of the main gas projects in the country, playing a key role in the further development

of the Brazilian gas market

. 

UK

●

 The Rosebank field (Equinor 80%, operator) will be developed with subsea wells tied back to a redeployed FPSO, with start-

up planned in 2026-2027

Reporting segment performance

Equinor 2023 Integrated Annual Report 131

Committing to low carbon ambitions

In 2023, E&P International continued to implement measures to deliver on its climate ambitions and worked closely with partners to

drive CO

2

and methane reductions in both operated and non-operated assets.

Peregrino in Brazil started importing gas to power turbines at the Peregrino C platform

10

 and switched from diesel to fuel gas at the

FPSO. When completed, this is expected to avoid 100kt per year of CO

2

 emissions. In addition, a vent gas recovery unit was

commissioned. This is expected to eliminate E&P International’s single biggest source of methane emissions.

Mariner in the UK is systematically implementing opportunities identified as part of the Emissions Reduction Action Plan (ERAP).

Three of the prioritised projects include flare bypass tie-ins, use of biodiesel, and optimising crude pump controls, which are expected

to deliver emissions reductions of up to approximately 125kt CO

2

e over the field life

Key Events

● March: Equinor signed an agreement to acquire

Suncor Energy UK Limited

● March: Sale of

Corrib

 was completed

● May: Final investment decision to develop the

Raia

 project (Formerly

BM-C-33

) 

● June:

Suncor Energy UK Limited

transaction closed 

● September: Final investment decision to progress Phase 1 of the

Rosebank

 field

● September: Declaration of Commerciality and Plans for Development was submitted for the

Raia

concession

● November: Agreement was reached to sell Equinor’s

Nigerian

 business to Chappal Energies

● December: Equinor signed an agreement with State Oil Company of Azerbaijan Republic (SOCAR) for the sale of its

business in

Azerbaijan

10

 The Peregrino gas import is expected to be offline for 2024 due to pipeline repairs

Reporting segment performance

Equinor 2023 Integrated Annual Report 132

Strategic progress

Strengthening the current positions

Focusing and deepening

Decarbonising the portfolio and improving sustainability

performance

In 2023, E&P International executed on its strategy by deepening

its portfolio in the UK through the acquisition of Suncor Energy

UK Limited. Progress was made in core areas of the operated

project portfolio by approving the final investments for the

Rosebank project in the UK and the Raia project in Brazil.

Additionally, E&P International took steps to focus its portfolio by

signing an agreement to sell the business in Nigeria to Chappal

Energies and by agreeing to sell all interests in assets in

Azerbaijan to SOCAR.

Going forward, E&P International seeks to work systematically to

improve the robustness of the portfolio. This is expected to

improve the ability to deliver positive cash flow year-on-year. E&P

International continues to, in collaboration with partners and key

stakeholders, mature the unsanctioned projects such as Bay du

Nord and Tanzania LNG with the aim to improve value and

resilience to low prices. Exploration will primarily be focused on

lower-risk opportunities in areas with existing activities and where

existing infrastructure can be leveraged.

Decarbonising and improving the sustainability performance of

the portfolio remains a top priority to ensure competitiveness

through the energy transition. E&P International has increased

decarbonisation efforts in existing assets, and new production is

designed for lower emission intensity. Mariner’s Emissions

Reduction Action Plan was submitted to the authorities in 2023

and implementation is in progress. All new development projects

have been designed for lower emissions to support delivery of

Equinor’s Energy transition plan. Rosebank is going to be

designed for electrification from shore and the projects in Brazil

will use combined-cycle gas turbines and closed flare system.

E&P International is also focusing on (i) increasing voluntary

social investments in both core and other countries, along the

‘resilient host communities’ dimension in the just transition

framework and (ii) 'identifying key biodiversity features associated

with projects through site-specific inventories to enable

biodiversity preservation.

Exploratory wells

drilled

1)

 For the year ended 31 December

2023

2022

2021

Americas (excluding US)

Equinor operated

0

3

0

Partner operated

4

7

2

Africa

Equinor operated

0

0

0

Partner operated

0

2

0

Other regions

Equinor operated

0

0

1

Partner operated

0

0

0

Total (gross)

4

12

3

1) Wells completed during the year, including appraisals of

earlier discoveries.

Reporting segment performance

Equinor 2023 Integrated Annual Report 133

Performance review

Operational performance

In 2023, E&P International achieved consistent growth in production throughout the year, with an increase of 17 mboe per day

compared to 2022. Liquid volumes increased by 8%, while gas volumes decreased by 13%, compared to 2022. The main contributor

to the growth in liquid production was the Peregrino field which had a full year of production in 2023 following resumption of production

in the second half of 2022 and phase 2 start-up in October 2022. Additionally, the Buzzard field in the UK contributed positively to the

growth following the Suncor Energy UK Limited acquisition in July 2023. The decrease in gas volumes is mainly due to the divestment

of the Corrib field in Ireland.

The decreased effect from production sharing agreements (PSA) in 2023 compared to 2022 was mainly caused by lower oil and gas

prices, in combination with a decrease in production from several fields with PSAs.

Peregrino is producing at plateau and is expected to

continue maintaining this level of production in the

coming years.

1)

51% of E&P International production in 2023 was from

Africa.

2)

E&P International's newly acquired equity shares of

Buzzard increased the average production in the UK by

15 mboe/d from mid-year 2023.

Reporting segment performance

Equinor 2023 Integrated Annual Report 134

E&P International - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

7,032

7,431

(5%)

Purchases [net of inventory]

(70)

(116)

(40%)

Operating, selling, general and administrative expenses

(2,176)

(1,698)

28%

Depreciation, amortisation and net impairment losses

(2,433)

(1,731)

41%

Exploration expenses

(20)

(638)

(97%)

Net operating income/(loss)

2,332

3,248

(28%)

Adjusted earnings*

2,863

3,806

(25%)

Additions to PP&E, intangibles and equity accounted investments

4,376

2,623

67%

Organic capex*

2,553

1,864

37%

For the year ended 31 December

Operational information

2023

2022

Change

E&P International equity liquid and gas production (mboe/day)

345

328

5%

E&P International entitlement liquid and gas production (mboe/day)

266

235

13%

Production sharing agreements (PSA) effects (mboe/d)

79

94

(15%)

Average liquids price (USD/bbl)

72.6

92.0

(21%)

Financial performance 

The growth in entitlement production across E&P international contributed to strong financial results, despite the impact of lower prices

in 2023. The decrease in operating income and revenues was mainly due to the reduction in liquid commodity prices, as liquids

constitute 90% of E&P International’s entitlement production. The sharp decline in gas prices further contributed to the decrease in

revenues.

Increased operation and maintenance expenses associated with turnarounds across various fields led to increased operating

expenses from 2022 to 2023. Increased royalties and production fees linked to increased production at the Peregrino field also

contributed to the overall rise in costs. This was partially offset by decreased royalties at Roncador due to lower prices in 2023.

The inclusion of Buzzard following the Suncor Energy UK Limited acquisition, increased production from Peregrino in Brazil and

Bandurria Sur in Argentina, in addition to several new investments in producing fields resulted in an overall increase in depreciation

from 2022 to 2023.

Net impairment related to property, plant, and equipment increased from USD 286 million in 2022 to USD 310 million in 2023. In 2023,

the impairment was mainly related to the planned exit from Azerbaijan. In 2022, the main contributors were impairments related to

Equinor’s exit from Russia, partially offset by an impairment reversal of an asset in the Europe and Asia area, supported by a slight

increase in reserves estimates.

Well costs related to Karabagh in Azerbaijan, and drilling costs in Canada expensed in 2022 were the main drivers for the reduction in

exploration expenses from 2022 to 2023. The capitalisation of previously expensed exploration wells in Brazil also positively impacted

the 2023 numbers.

The main driver for increased organic capex* from 2022 to 2023 is the development project Raia in Brazil, following the final

investment decision in May 2023. In addition, increased activity from Argentina and the final investment decision for the Rosebank

project in the UK, added to the increase.

The Suncor Energy UK Limited acquisition in 2023 further influenced the movement in the

additions to PP&E, intangibles and equity accounted investments.

Reporting segment performance

Equinor 2023 Integrated Annual Report 135

Sustainability performance

E&P International 

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF)

(number per million hours worked)

 11

0.9

0.4

Upstream CO2 intensity, Scope 1 (kg

CO2/boe)

14

18

Monitoring indicator

Total Recordable Injury Frequency

(TRIF) (number per million hours

worked)

 1

3.0

2.5

E&P International’s SIF increased in 2023. Of the eight recorded serious incidents (SI), two of the incidents had major accident

potential, as described in section 2.2. Safe and secure operations. Five of the SIs happened in Brazil, one in Argentina, one in the US

and one in UK. These incidents were thoroughly investigated in order to learn and improve. Continuous work is ongoing to prevent

similar incidents in the future.

TRIF increased in 2023. Of the 27 recordable injuries, 20 happened in Brazil, four in UK, two in the US, and one in Argentina. This

roughly corresponds to the distribution of manhours recorded by the different business clusters.

In 2023, E&P International continued to work diligently to improve its overall safety performance, in line with the I am Safety Roadmap.

Key focus areas included Major Accident Prevention, proactive and visible safety leadership, collaboration with suppliers and partners,

as well as the implementation of digital observation cards. While the results of 2023 do not reflect these, E&P International firmly

11

 E&P International’s safety indicators include also E&P USA, due to low manhours reported in USA operations

Reporting segment performance

Equinor 2023 Integrated Annual Report 136

believes that consistently applying safety practices, protocols, and reporting routines to learn from incidents will strengthen the safety

performance over time. E&P International remains committed to the aspiration of zero harm, and this is reflected in the regular safety

trainings, focus on human and organisational principles as well as assurance activities, and the belief that all accidents are

preventable.

E&P International has a strong focus on reducing GHG emissions. For Equinor-operated licences this means continually identifying,

prioritising, and executing measures to reduce emissions. For partner-operated assets and joint-operated entities this means

supporting partners, operators, and relevant stakeholders to improve detection, reporting and forecasting of GHG emissions; to

identify the most effective opportunities to reduce emissions; and supporting implementation of these. CO

2

 intensity of Equinor-

operated assets forms a performance indicator both at E&P International and business cluster level, and in 2023 it decreased for E&P

International following the return of the Peregrino field to full production.

Environmental performance is based around avoiding harm, with a performance indicator relating to accidental spills. In order to better

understand opportunities for protecting and enhancing nature, in 2023 site-specific inventories for biodiversity were completed for

Equinor-operated assets.

Reporting segment performance

Equinor 2023 Integrated Annual Report 137

3.3 Exploration & Production USA

The Exploration & Production USA (E&P USA) reporting segment covers exploration, development and production of oil and gas in

the US. E&P USA is the 5th largest producer of oil & gas in the US Gulf of Mexico and the US onshore operations are Equinor’s

largest international production outside Norway.

E&P USA produced around 363 mboe per day, from the combination of two operated assets and 11 partner operated assets. The

production accounted for 17% of Equinor’s total equity production of oil and gas in 2023, compared to 16% in 2022. E&P USA

reported a net operating income of USD 1,353 million for 2023.

Equinor has continued shaping the US oil and gas portfolio, focusing activity in areas with high value potential while maintaining a low

operational CO

2

 footprint.

Exploration activity

: Equinor is one of the most active exploration companies in the Gulf of Mexico, with more than 100 exploration

leases in its portfolio including multiple prospects and leads. In 2023, E&P USA added leases to the portfolio of opportunities in the

Gulf of Mexico. Equinor continues to evaluate these prospects and mature the opportunities in the Gulf of Mexico. In 2023, E&P USA

participated in drilling activity for five exploration prospects in the area. One prospect was determined to be a discovery while the

remaining four prospects were dry or non-commercial.

Strong project pipeline:

Vito platform (Equinor 36.89%, non-operated) was brought online in 2023 and reached plateau production during the year.

Development will continue by drilling additional production wells.

Sparta (Equinor 49%, non-operated) development was sanctioned at the end of 2023, which will include eight production wells tied

back to a semi-submersible floating production unit. The Sparta development will utilise 20k technology and have a designed capacity

of 100,000 boe per day at peak and is expected to start production in 2028.

Along with the development of Sparta, E&P USA continues to look for opportunities to add value through exploration and expansion

opportunities to existing infrastructure.

Committing to low carbon ambitions

The US assets, onshore and offshore, have some of the lowest carbon intensities within the Equinor international portfolio and E&P

USA remains committed to working with partners to maintain this.

Reporting segment performance

Equinor 2023 Integrated Annual Report 138

Key Events 2023

●

 February: Vito in the US Gulf of Mexico on stream

●

 December: Sanction of Sparta field

Strategic progress

Focusing and deepening

Decarbonising the portfolio and improving sustainability

In 2023, E&P USA continued to deepen its portfolio in line with

the overall E&P International strategy. Production started at the

Vito field reaching plateau production during the year. The

development of the Sparta project, a Paleogene subsalt

discovery in the Garden Banks area, was sanctioned. With these

developments E&P USA continues to strengthen its presence in

the US Gulf of Mexico.

Through the investments in onshore gas assets in the Appalachia

Basin, E&P USA continued to deliver valuable and low-carbon

gas production. Throughout 2023, E&P USA participated in the

drilling and completion of 162 wells in the states of Pennsylvania,

West Virginia, and Ohio. 

The US assets, onshore and offshore, have among the lowest

carbon intensities within the Equinor international portfolio. E&P

USA is still working to reduce CO

2

and methane emissions where

it is possible. On Appalachian Basin, a vapour recovery unit at

the Eisenbarth well pad was installed in 2023, and work was

started to replace natural gas with nitrogen for valve actuation.

E&P USA is committed to minimising its environmental impact,

and in 2023 completed a biodiversity site-specific inventory of the

Appalachian Basin gas asset. E&P USA has also started work to

determine long-term, community- informed social investment

opportunities which create positive benefits for the communities,

both of which support the just transition framework.

Exploratory wells

drilled

1)

 For the year ended 31 December

2023

2022

2021

US

Equinor operated

0

1

1

Partner operated

4

0

2

Total (gross)

4

1

3

1) Wells completed during the year, including appraisals of

earlier discoveries.

Reporting segment performance

Equinor 2023 Integrated Annual Report 139

Performance review

Operational performance

The average daily production of liquids and gas increased by 12%, mainly due to the start-up of the Vito offshore field in the US Gulf

of Mexico in the first quarter of 2023, the impact of new flowlines, which was installed in second half of 2022 in the Caesar Tonga field

in the US Gulf of Mexico, and additional wells onstream in the Appalachian basin. The increase was partially offset by a natural

decline in the Appalachian basin and several mature fields in the Gulf of Mexico.

During 2023, E&P USA completed drilling a carbon capture well in the Appalachian basin albeit with negative results. E&P USA also

participated in five partner-operated exploration wells during 2023 to continue the high value potential opportunities. However, four of

the partner-operated exploration wells were determined to be dry or non-commercial.

Entitlement production differs from equity production in the USA where entitlement production is expressed net of royalty interests.

Equity production represents volumes that correspond to Equinor’s percentage ownership in a particular field and is larger than

Equinor’s entitlement production where the royalties are excluded from entitlement production.

Equinor's entitlement production in the USA was 16% of Equinor's total entitlement production in 2023.

The Gulf of Mexico portfolio had a record

high production efficiency in 2023.

During start-up in 2023, Vito field’s production

got ramped up to 33 mboe/d.

The Appalachian Basin assets have 439

mmboe of proved reserves in total.

Reporting segment performance

Equinor 2023 Integrated Annual Report 140

E&P USA - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

4,319

5,523

(22%)

Operating, selling, general and administrative expenses

(1,178)

(938)

26%

Depreciation, amortisation and net impairment losses

(1,489)

(361)

>100%

Exploration expenses

(299)

(201)

49%

Net operating income/(loss)

1,353

4,022

(66%)

Adjusted earnings*

1,076

2,957

(64%)

Additions to PP&E, intangibles and equity accounted investments

1,206

764

58%

Organic capex*

1,172

775

51%

For the year ended 31 December

Operational information

2023

2022

Change

E&P USA equity liquids and gas production (mboe/day)

363

324

12%

E&P USA entitlement liquid and gas production (mboe/day)

314

279

12%

Royalties (mboe/d)

49

44

10%

Average liquids price (USD/bbl)

64.4

81.0

(20%)

Average internal gas price (USD/mmbtu)

1.77

5.55

(68%)

Financial performance 

Increased entitlement production due to Vito field start-up, Caesar Tonga flowline installation, and increased well count partially offset

the impact of lower realised liquids and gas prices which were the main drivers for the decrease in revenues in 2023 compared to

2022.

Operating expenses increased due the start-up of the Vito platform, combined with increased maintenance activity in the Appalachian

basin contributing to increased operations and maintenance expenditure.

Depreciation increased in 2023 due to additional production, decreased impairment reversals, and additional capital expenditures both

offshore and onshore. This increase was partially offset by improved reserves.

Impairment reversals related to property, plant, and equipment amounted to USD 290 million in 2023 which were primarily driven by

improved expected reserves due to additional well opportunities. In 2022, impairment reversals amounted to USD 1,060 million mainly

driven by increased short-term prices.

Increased exploration expenses were driven by drilling activity for four exploration prospects in the Gulf of Mexico. The four prospects

were dry or non-commercial and were expensed accordingly, resulting in a significant increase in exploration cost.

Investments in 2023 in the recently sanctioned Sparta project, St. Malo Water Injection, and Appalachian Basin Partner Operated

assets drove the increase in Organic capex* and additions to PPE, intangibles and equity accounted investments from 2022.

Reporting segment performance

Equinor 2023 Integrated Annual Report 141

Sustainability performance 

E&P USA

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF) (number per

million hours worked)

 12

N/A

N/A

Upstream CO2 intensity, Scope 1 (kg

CO2/boe)

3.6

3.3

Monitoring indicator

Total Recordable Injury Frequency (TRIF)

(number per million hours worked

)

1

N/A

N/A

In 2023 E&P USA experienced a slight improvement in the number of incidents while having increased activities. The 2023 numbers

included one serious incident and two recordable injuries. E&P USA had two serious incidents and two recordable injuries in 2022.

While there is progress, continued vigilance will always be necessary. E&P USA remains committed to the goal of zero incidents and

has taken numerous measures to improve the overall safety performance and strengthen its reporting culture. E&P USA believes that

a learning culture where the safety practices, protocols, and reporting routines are consistently improved, will strengthen the safety

performance in a more sustainable manner over time.

Equinor-operated assets recorded a small increase in CO

2

 intensity compared to 2022 due to increased drilling and completion activity

in the Appalachian Basin. Equinor-operated and partner-operated equity production from E&P USA, covering approximately half of

Equinor’s production outside of Norway, had an upstream CO

2

 intensity of 3 kg CO

2

/boe in 2023.

12

 For E&P USA the hours worked are below one million and, therefore, separate frequencies are not calculated and published. The

safety indicators are reported on total E&P International level in section 3.2.

Reporting segment performance

Equinor 2023 Integrated Annual Report 142

3.4 Marketing, Midstream & Processing 

Marketing, Midstream & Processing (MMP) works to maximise corporate value creation in Equinor’s mid- and downstream business

through safe, reliable, and efficient operations. It is responsible for capturing the full value potential of all marketed and traded

products, such as crude oil, liquids, and natural gas. In addition, MMP is responsible for Equinor’s low carbon solutions.

Marketing, Midstream & Processing (MMP) is responsible for:

●

 Marketing, trading, processing, and transporting crude oil and condensate, natural gas, natural gas liquids (NGL) and refined

products. 

●

 Operation of a refinery, terminals, and processing plants. 

●

 Trading power.

●

 Providing transport solutions for natural gas, liquids, and crude oil from Equinor assets, including pipelines, shipping, trucking,

and rail.  

●

 Developing Equinor’s low-carbon solutions.

The business activities within MMP are organised in the following business clusters:

In total, MMP markets, trades, and transports around 70% of all Norwegian gas exports and 60% of all liquids exports, comprising

Equinor’s own products, the Norwegian State’s direct financial interest (SDFI) equity production, and third-party volumes. 

MMP presence across the world

Reporting segment performance

Equinor 2023 Integrated Annual Report 143

Gas and Power

Equinor’s gas marketing and trading business is conducted from Norway and from offices in Belgium, the UK, Germany and the US.

As owner of Danske Commodities (DC), a trading company for power and gas, MMP increased its presence in energy trading. DC is

active in Europe and also operates in the US, Brazil, Singapore and Australia. The major export markets for natural gas produced

from the NCS are the UK, Germany, France, the Netherlands and Belgium. LNG from the Snøhvit field, combined with third-party LNG

cargoes, allows Equinor to reach global gas markets.

MMP is active in both the physical and exchange markets, such as the Intercontinental Exchange (ICE) and Trayport, and optimises

the value of the gas volumes through a mix of bilateral contracts and over the trading desk, via its production and transportation

systems and downstream assets. Some of Equinor’s long-term gas contracts have price review clauses which can be triggered by the

parties

13

. MMP receives a marketing fee from E&P Norway for the Norwegian gas sold on behalf of the company.

Crude, products and liquids 

MMP is responsible for the sale of crude oil and NGL produced on the NCS. It also markets the equity volumes from Equinor’s assets

in the US, Brazil, Canada, Angola, Nigeria, Algeria, Azerbaijan, and the UK, as well as third-party volumes. Value is maximised

through marketing, physical and financial trading, and the optimisation of owned and leased capacity such as refineries, processing,

terminals, storage, pipelines, railcars, and vessels. 

 

These operations are headquartered in Norway, with offices in the UK, Singapore, the US, and Canada. 

MMP main assets

The below table shows MMP’s main assets including ownership and operator responsibilities. 

Asset

Type

Country

Capacity/Size

Ownership

Operated

Mongstad refinery

Refinery

Norway

226000 bbl/day

100%

Y

Tjeldbergodden 

Methanol plant

Norway

2600 ton/day

82%

Y

Kårstø

1

Gas processing plant

Norway

151 MSm3/day

5%

TSP

2

Kollsnes

1

Gas processing plant

Norway

97 MSm3/day

5%

TSP

2

Gassled 

Gas processing

plants and pipelines

NW. Europe

5%

N

Nyhamna 

Gas processing plant

Norway

84 MSm3/day

30.1%

N

Aldbrough Gas Storage 

Gas Storage 

U.K.

260 MSm3

storage

33.3%

N

Etzel Gas Lager 

Gas Storage 

Germany

1200 MSm3

storage

24.78%

Y

Mongstad terminal 

Crude oil terminal

Norway

9.4 mbbl storage

65%

Y

Sture terminal

Crude oil terminal

Norway

6.7 mbbl storage

36.2%

Y

Triton Power 

Power Generation

U.K.

1200 MW

50%

N

1)

 Part of Gassled. 2) Technical service provider

Low-carbon solutions

Equinor believes decarbonising hydrocarbons with carbon capture and storage (CCS) is key to reaching net zero, and aims to

combine its long experience from CCS on the NCS, its reservoir expertise and experience from developing value chains with peers,

suppliers and customers to develop large-scale, commercially viable decarbonisation solutions. By 2030, more than 50% of Equinor’s

gross capex* is intended to be dedicated to renewables and low carbon solutions. Equinor’s solutions include:

● Developing carbon management services to offer industries based on CO

2

 transport and storage: 

-

Northern Lights:

 Equinor is, together with Shell and TotalEnergies, developing infrastructure for CO

2

 transport and storage

on the NCS from various industries. Phase 1 has a capacity of 1.5 million tonnes of CO

2

 annually and is planned to be

operational in 2024. The Northern Lights infrastructure will enable the transport of CO

2

 from industrial capture sites to a

terminal in Øygarden for intermediate storage before transport by pipeline for permanent storage. Phase 1 is fully utilised

with Oslo Celsio, Heidelberg Cement Brevik, Yara Sluiskil and Ørsted’s two biomass power stations Asnæs and Avedøre as

the first customers.

13

For ongoing price reviews, Equinor provides in its financial statements for probable liabilities based on Equinor’s best judgement. For further information, see note 26 Other commitments, contingent liabilities and contingent

assets to the Consolidated financial statements.

Reporting segment performance

Equinor 2023 Integrated Annual Report 144

-

 Future CCS projects under development include:

o

East Coast Cluster & Net Zero Teesside power:

 Equinor is a partner in the bp-operated CO

2

transport and storage

project Northern Endurance Partnership (NEP) in the UK. NEP will serve CO

2

 capture projects in the two industrial

clusters Teesside and Humber and have an annual storage capacity of 4 million tonnes.

o

Smeaheia:

 Equinor was awarded the CO

2

 storage licence for Smeaheia in the North Sea by the Norwegian Ministry of

Energy in 2022 on a 100% equity basis. The licence has an estimated CO

2

 storage capacity of 20 million tonnes

annually.

o

CO

2

 Highway Europe

is a large-scale CO

2

pipeline planned to connect CO

2

capture projects in North-West Europe to

different

storage sites on the NCS. The pipeline is planned to have a capacity of between 20-30 million tonnes annually.

o

Bayou Bend:

Equinor has a 25% interest in Bayou Bend CCS LLC, which is positioned to be one of the largest US

CCS projects located along the Gulf Coast in Southeast Texas. The project aims to have a CO

2

 storage potential of 10-

20 million tonnes annually.

●

 Providing hydrogen by reforming natural gas with CCS. Hydrogen provides a solution to hard to abate emissions from industries.

Equinor is involved in projects aimed at producing low-carbon hydrogen from natural gas with CCS, including the H2BE project in

Belgium, the H2M Eemshaven project in the Netherlands, and a proposed 600 MW low-carbon hydrogen production plant at

Saltend Chemicals Park in the UK.

Key events 

●

 June: Equinor signs long-term LNG purchase agreement with Cheniere

●

 June: Net Zero Teesside Power project progressed

●

 July: Equinor acquires stake in the Bayou Bend CCS project

●

 October: New supply agreement for natural gas signed with RWE

●

 December: Major gas sales agreement signed with Germany’s state-owned company SEFE

Strategic progress 

Positioned for short- and long-term value creation

Asset backed trading strategy with limited downside and

large upside and well positioned for market volatility

Uniquely positioned to build low carbon value chains

During 2023 MMP worked to maximise value from Equinor’s

equity production of oil and gas for the producing units and to

capture value from Equinor’s global mid- and downstream

positions through marketing, trading, and optimisation.

MMP operated its onshore plants and shipping portfolio in a

safe, secure and competitive manner to ensure flow

assurance. MMP utilised its asset-backed trading strategy,

capturing both financial and physical market opportunities

.

As a leading energy trading company, Danske Commodities

(DC) connects producers and large-scale consumers to

wholesale markets. DC brings renewables to the market at

scale, and through their portfolio of gas storages and assets,

DC provides the flexibility needed to meet the energy demands

and intermittency of renewable power generation. DC also

supported Equinor’s power and renewables strategy as the

balancing agent for Dogger Bank wind power production.

Low-carbon solutions strategy aimed to develop new business

and reduce GHG emissions through CO

2

 transportation and

storage, hydrogen value chains for natural gas

decarbonisation, technology development, carbon footprint

reduction and the market development of low-carbon products.

Within low carbon, Equinor strengthened its position in the US

with the acquisition in Bayou Bend. Equinor will participate in

the first power generation with CO

2

 capture through Net Zero

Teesside which together with Northern Endurance Partnership

were selected for funding by UK authorities. Customers for

CCS storage in Northern Lights phase 1 are now fully secured.

Reporting segment performance

Equinor 2023 Integrated Annual Report 145

Performance review

Operational performance

The total natural gas sales volumes were 58.9 bcm in 2023, a decrease of 4.4 bcm compared to total volumes for 2022. This

difference is mainly due to decreased production from the NCS caused by turnarounds and natural decline of gas producing fields.

The average crude, condensate and NGL sales were 2.6 mmbbl per day in 2023, 17% higher than 2022

14

 due to increased sales of

equity and third-party volumes.

High regularity at onshore gas processing plants, ensured gas deliveries and portfolio flexibility allowing MMP to continue to be a

reliable provider of energy in Europe. MMP utilised its transport systems and shipping portfolio to deliver crude, LNG and products

where they were needed the most, thereby increasing the overall value creation.

In 2023, the average realised piped gas price in Europe was USD 13.86 per MMBtu, down from USD 32.84 per MMBtu in 2022.

European gas prices reduced significantly during the year compared to 2022 due to decreased demand, increased LNG imports and

increased storage levels.

In 2023, the average realised piped gas price in North America was USD 2.09 MMBtu, down from USD 5.89 MMBtu in 2022. North

American gas price decrease was driven by high gas production, storage surplus and mild weather.

All of Equinor's gas produced on the NCS is sold by MMP and purchased from E&P Norway at the fields’ lifting point at a market-

based internal price with a deduction for the cost of bringing the gas from the field to the market and a marketing fee. The NCS

transfer price for gas was USD 12.20 per MMBtu in 2023, a decrease from USD 31.22 per MMBtu in 2022, aligned with market price

development.

14

 Sold liquids volumes restated for 2022 and 2021.

Reporting segment performance

Equinor 2023 Integrated Annual Report 146

MMP - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

105,908

148,105

(28%)

Purchases [net of inventory]

(95,769)

(139,916)

(32%)

Operating, selling, general and administrative expenses

(4,916)

(4,591)

7%

Depreciation, amortisation and net impairment losses

(1,239)

14

N/A

Net operating income/(loss)

3,984

3,612

10%

Adjusted earnings*

1)

3,242

4,234

(23%)

- Gas and Power

2)

2,038

3,942

(48%)

- Crude, Products and Liquids

2)

1,359

683

99%

- Other

2)

(155)

(391)

60%

Additions to PP&E, intangibles and equity accounted investments

844

1,212

(30%)

Organic capex*

191

288

(34%)

For the year ended 31 December

Operational information

2023

2022

Change

Liquid sales volume (mmbbl)

3)

956.3

815.9

17%

Natural gas sales Equinor (bcm)

58.9

63.3

(7%)

Natural gas entitlement sales Equinor (bcm)

53.2

56.1

(5%)

Power generation (GWh) Equinor share

2,298

1,012

>100%

Realised piped gas price Europe (USD/MMBtu)

3)

13.86

32.84

(58%)

Realised piped gas price US (USD/MMBtu)

2.09

5.89

(65%)

1) Restated. For more information, see Amended principles for Adjusted earnings* in the section 5.6 Use and reconciliation of non-GAAP

financial measures 

2) From 2023, the presentation of MMP’s adjusted earnings* was changed to align with organisational structure and management’s review of

performance, with retrospective effect.

3) Restated. Restatement due to a change in definition of the price marker for realised gas price and improved methodology for calculating

liquids sales volumes. For more information, see section 5.7 Other definitions and abbreviations

Financial performance 

Net operating income includes net effects from changes in fair value related to storage and commodity derivatives utilised to manage

price risk exposure. During 2023, the net operating income included impairments of USD 343 million, in contrast to USD 895 million of

net impairment reversals in the prior year.

Adjusted earnings* in 2023 decreased from the previous year. The result from Crude, Products and Liquids doubled by effectively

capturing financial and physical market opportunities and optimising the shipping portfolio. However, this was more than offset by a

decreased result from Gas and Power trading, as reduced gas market volatility and diminished geographical spreads reduced the

2023 result compared to the extraordinary performance in 2022.

Total revenues and other income decreased from 2023 to 2022 due to lower gas and oil sales prices in both Europe and North

America and decreased gas volumes. This was partially offset by increased liquid sales.

Purchases [net of inventory] decreased from 2022 to 2023 due to lower prices for both gas and liquids.

The increase in Operating expenses and selling, general and administrative

expenses from 2022 to 2023 was mainly due to

significant increased transportation costs for liquids and increased selling, general and administrative expenses mainly due to

increased activity within Low Carbon Solutions.

Reporting segment performance

Equinor 2023 Integrated Annual Report 147

Depreciation, amortisation and net impairment increased from 2022 to 2023 driven by the impairment of refinery assets in 2023 and

an impairment reversal in 2022.

The main driver for the decrease in organic capex* from 2022 to 2023 are lower investments in projects related to onshore plants.

Sustainability performance

Marketing, Midstream and Processing

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF) (number per

million hours worked)

0.4

0.6

CO

2

 emissions reduction (kt)

55

358

Monitoring indicator

Total Recordable Injury Frequency (TRIF)

(number per million hours worked)

3.5

3.0

MMP’s systematic efforts within safety resulted in a reduction in the frequency of serious incidents in 2023. As part of the “I am safety

framework” main priorities for the Onshore Plants in 2023 included actions to prevent major accidents including trainings, actions to

prevent falling objects, strengthening use of lifesaving rules and C&L, proactive reporting and learning, self-assessments, and internal

verifications. Within shipping, MMP worked closely with the shipowners to improve reporting and learning from incidents. All shipping

companies operating for MMP must be prequalified before contracts are entered into, and all vessels undergo regular thorough

inspections. During the third quarter MMP experienced a man overboard fatality on a tanker in Malaysia.

MMP achieved CO

2

 emission reductions in 2023 of a total of 55 Ktonnes of CO

2

 due to more efficient and stable operations in

Hammerfest LNG and process improvements at Mongstad and Kårstø. The decrease against last year is due to the large reduction

achieved last year through the rebuild of the Mongstad Combined Heat and Power.

As a part of Equinor’s biodiversity position, site-specific inventories of important biodiversity features were established for all onshore

facilities. Possible pressures from activities and operations were assessed, using both internal and external data and analyses. The

site-specific inventory is an important contribution to future sustainability and biodiversity risk management, both at site level and a

regional level.

Reporting segment performance

Equinor 2023 Integrated Annual Report 148

3.5 Renewables

Renewables (REN) segment is responsible for safe, profitable operations and project development in renewable energy

activity

.

The focus for REN is offshore wind, onshore renewables, and energy storage solutions across four main regions: the

Americas, Asia-Pacific, Europe, and Norway.

Power is currently being produced from 5 offshore wind farms and 5 onshore wind and solar projects, with an additional 16

projects under construction and development, operated by Equinor and partners. 

In 2023, REN achieved a significant milestone with the first power generation from the largest offshore wind farm in the UK,

Dogger Bank, and further expansion in onshore renewables in the Americas and Europe.

By 2030, Equinor aims to become a leading provider of renewable energy globally and maintain the position as Norway's

leading energy major. Simultaneously, Equinor seeks to grow its presence and emerge as a leading company in the energy

transition in selected international markets. 

Map of activities

Reporting segment performance

Equinor 2023 Integrated Annual Report 149

Overview

Offshore wind

Equinor is a leading player in the offshore wind industry, with a strong commitment to harnessing the power of wind energy to

drive the transition towards sustainable and renewable energy sources. Equinor is seeking opportunities for floating offshore

wind and is developing offshore projects and partnerships in selected markets. Floating wind is still at an early development

phase compared with other renewable energy sources. REN’s offshore wind activities span multiple regions, including Norway,

the UK, the US Northeast, and the Baltic Sea, where wind farms are being operated and developed.

The below table shows REN’s offshore wind assets in operation including ownership and operator responsibilities.

Asset

Asset type

Country

Generation capacity

Equinor (MW)

Ownership

Operated

Sheringham Shoal

Fixed

UK

127

40%

Y

Dudgeon Offshore 

Wind Farm

Fixed

UK

141

35%

Y

Hywind Scotland

Floating

UK

23

75%

Y

Arkona

Fixed

Germany

96

25%

N/RWE

Hywind Tampen

1

Floating

Norway

36

41%

Y

1

 Hywind Tampen is owned by E&P Norway segment and operated by REN segment.

REN is currently planning and developing several offshore wind projects in Northern Europe, the US and South Korea. Dogger Bank A

started generating first power in 2023 and is expected to officially commence operation in 2024. Dogger Bank B and C are under

construction and are expected to start generating power during the next three years. During the developmental stage, SSE

Renewables operates these three projects, which Equinor will assume operatorship when the wind farms come on stream.

Offshore wind projects on the US Northeast Coast are facing cost inflation and supply chain constraints. The rejection of petitions

relating to offtake agreements resulted in the recognition of an impairment loss for the year. Equinor and bp decided to reset the

Empire Wind 2 project and explore alternative business opportunities. On 25 January 2024, Equinor entered a swap transaction with

bp, under which Equinor will take full ownership of the Empire Wind lease and projects and bp will take full ownership of the Beacon

Wind lease and projects. Following the signing of agreement, Equinor submitted a bid for the Empire Wind 1 project in New York’s

fourth offshore wind solicitation round and on 29 February 2024 was awarded the offtake contract.

Onshore renewables and energy storage solutions

As the demand for integrated solar, wind, and energy storage solutions continues to rise, Equinor is expanding its presence in

onshore renewable energy in specific power markets across Europe, North America, and South America. Equinor is also

integrating battery storage assets into its renewable portfolio, with a primary focus on the UK and the US, two prominent

battery storage markets where the company holds substantial offshore wind assets. These market entries involve the

acquisition of local energy companies and Equinor aims to enhance value through collaboration with local teams, fostering

transformation and leveraging synergies within the company. 

The below table shows REN’s onshore assets in operation including ownership and operator responsibilities.

Asset

Asset type

Country

Generation capacity

Equinor (MW)

Storage capacity

(MW/MWh)

Ownership

Operated

Apodi

Solar

Brazil

71

44%

N/Scatec

Wilko

Onshore wind

Poland

26

100%

Y/Wento

Stępień

Solar

Poland

58

100%

Y/Wento

Zagórzyca

Solar

Poland

60

100%

Y/Wento

Serra da Babilônia 1

Onshore wind

Brazil

223

100%

Y/Rio Energy

Blandford Road

Battery storage

UK

25/50

100%

Y/Noriker

Equinor currently has three onshore renewable projects under construction in Europe, with an expected completion date within

the next two years, at which point the projects are expected to begin generating power.

In addition, hydrogen based on renewable energy sources is expected be a key contributor to the energy transition, primarily

by decarbonising the hard-to-abate sectors. Equinor has taken positions in green hydrogen projects in Northwest Europe and

is exploring further opportunities. Green hydrogen has the potential to unlock additional value through storage and balancing

energy systems where renewables penetration is high. 

Reporting segment performance

Equinor 2023 Integrated Annual Report 150

Key events

●

 January: Acquisition of leading Danish solar developer BeGreen was closed 

●

 June: The second Polish solar plant Zagórzyca started production

●

 Aug: The Hywind Tampen, the world’s largest floating offshore wind farm, officially opened 

●

September: Acquisition of the Wilko onshore wind farm in Poland

●

 October: Sold the 117 MW Guañizuil II power plant in Argentina

●

 October: First power from Dogger Bank A offshore wind farm, SSE lead developer 

●

 Nov: Acquisition of onshore renewables company Rio Energy in Brazil. 

●

 January (2024): Blandford Road, the first commercial battery storage asset, started operations in the UK

●

 January (2024): Empire Wind 2 offshore wind project announced reset, seeking new future offtake opportunities. 

o

 Swap transaction with bp, under which Equinor will take full ownership of the Empire Wind lease and

projects and bp will take full ownership of the Beacon Wind lease and projects. 

o

Submitted bid for the Empire Wind 1 project in New York’s fourth offshore wind solicitation round

●

 February (2024): Empire Wind 1 awarded offtake contract in New York’s fourth offshore wind solicitation round.

Strategic progress

Developing a high-value renewables business 

Delivering on Equinor’s strategy to be a leader in the energy transition requires profitable growth at scale in renewables.

REN is aiming to deliver above 65 TWh from renewables power generation by 2035, with real project returns in the 4-8% range and

further potential equity value upsides from the selective use of project financing and farm-downs. Renewables growth initially relies on

the following two strategic pillars, which will over time converge into flexible power and energy offerings in selected markets.

Becoming an offshore wind major and floating wind leader

Building onshore renewables and storage positions

REN aims to create value through industrial scale-up in offshore

wind by building on its early entry and successful track-record in

the industry and leveraging the leading position in floating

offshore wind. Key milestones in 2023 include reaching full

production capacity at Hywind Tampen, the world’s largest

floating wind farm, as well as delivering first power from Dogger

Bank, the world’s largest offshore wind farm.

REN aims to build low-cost onshore renewables positions in

attractive markets, backed by storage and trading. REN’s

onshore strategy is to enter markets through the acquisition of

local companies with strong teams and capabilities. Key

milestones in 2023 include the closing of the BeGreen

transaction in Denmark, the acquisition of Rio Energy in Brazil

(onshore wind and solar), and the expansion of Wento – onshore

renewables platform in Poland – into onshore wind.

Reporting segment performance

Equinor 2023 Integrated Annual Report 151

Performance review

Operational performance

Power generation (Equinor share) was 1,859 GWh (gigawatt hours) in 2023, compared to 1,641 GWh in 2022. In 2023, the offshore

wind farms produced 1,384 GWh with the majority coming from Dudgeon, Sheringham Shoal and Arkona, while onshore renewables

contributed an additional 474 GWh of power, mainly from the onshore wind farm, Serra da Babilonia, in Brazil. The substantial

increase in production was driven by the ramp-up of new onshore power plants in Poland and Brazil compared to 2022.

In 2023, the equity-based installed renewable energy capacity was 0.86 GW. REN has a pipeline to deliver on the strategic ambition

towards 2030 of 12-16 GW installed renewables capacity, with associated production of 35-60 TWh annually. There is line of sight to

2030 GW ambition. Value creation will be the priority over reaching volume targets.

Progress was demonstrated in 2023 on both project execution and on building the portfolio pipeline. Hywind Tampen, the world’s

largest floating wind farm, was officially opened in August, supplying renewable power to the Snorre and Gullfaks fields in Norway.

Another significant achievement was the world's largest offshore wind farm, Dogger Bank A (SSE lead developer), reaching first

power in the UK. In addition, REN successfully initiated production from solar projects in Brazil and Poland and diversified its

renewable portfolio by making bolt-on acquisitions of onshore platforms in Denmark, Poland and Brazil. The acquisition of the onshore

solar and wind platforms in these countries was a significant move towards expanding the portfolio and providing more options for

sustainable energy generation.

REN - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Revenues third party, other revenue and other income

50

127

(61%)

Net income/(loss) from equity accounted investments

(33)

58

N/A

Total revenues and other income

17

185

(91%)

Operating, selling, general and administrative expenses

(462)

(265)

74%

Depreciation, amortisation and net impairment losses

(312)

(4)

>100%

Net operating income/(loss)

(757)

(84)

>(100%)

Adjusted earnings*

(454)

(184)

>(100%)

Additions to PP&E, intangibles and equity accounted investments

2,007

298

>100%

Organic capex*

843

247

>100%

For the year ended 31 December

Operational information

2023

2022

Change

Renewables power generation (GWh) Equinor share

1,859

1,641

13%

Financial performance 

European offshore wind assets in operation within the equity accounted investment portfolio decreased in revenue contribution by

26% within net income/(loss) from equity accounted investments in 2023. This decline was due to lower prices experienced in 2023,

increased maintenance costs and increased expenditure associated with early phase projects.

Added revenue from the newly acquired onshore wind farm in Brazil and the start-up of production at solar plants in Poland

contributed positively to total revenues in 2023. Combined with the decreased results from equity accounted investments in 2023, total

revenues and other income decreased relative to 2022. Favourable effects of divestments early in 2022 significantly impacted the

decline.

Reporting segment performance

Equinor 2023 Integrated Annual Report 152

The notable decrease in net operating income for 2023 compared to the prior year was primarily due to the recognition of a USD 300

million impairment in the third quarter for offshore wind projects in the US Northeast following the rejection of petitions related to

offtake agreements. In addition, increased business development expenditures and increased operating activity levels contributed to

an upward trend in operating and administrative expenses in 2023. The increased costs associated with maturing projects, which

predominantly originated from offshore wind activities in the UK and Asia, contributed to the reduction in adjusted earnings* in 2023

compared to 2022.

For 2023, USD 114 million of organic capex* was allocated for onshore renewables, while USD 729 million was for offshore wind

projects and investments related to projects in the US and the UK. In 2022, total organic capex* was USD 247 million, mainly related

to investments in US and the Europe.

The acquisitions of BeGreen and Rio Energy in the year drove the increase in additions to PP&E, intangibles and equity accounted

investments compared to 2022.

The gross capex* for the renewable business amounted to USD 2.6 billion, of which organic gross capital expenditures* amounted to

USD 1.5 billion. Equinor’s ambition is to have more than 50% of gross capex* allocated to renewable and low carbon solutions by

2030 and is on track to deliver on the ambitions.

Sustainability performance 

Renewables

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF) (number per

million hours worked)

1.0

0.8

Monitoring indicator

Total Recordable Injury Frequency (TRIF)

(number per million hours worked)

2.2

4.3

Renewables offshore wind GHG intensity,

scope 1 and 2 (g CO

2

/kWh)

3.2

2.9

The number and frequency of personnel injuries for Renewables was reduced over the last year. However, REN experienced four

potential serious incidents in 2023, resulting in a negative development in the serious incident frequency. Continuous improvements

for routine operational activities have been established and are ongoing. 

The GHG intensity for offshore wind fields in operation recorded a slight increase over the last year, mainly because maritime vessel

diesel consumption increased more than electricity production. Reducing maritime emissions is part of the activities planned for 2024

to support the net-zero ambition.

To address Equinor Renewables’ aims within circularity and biodiversity, following ambitions have been set:

● Ban landfill of blades from 2024 and perform 100% recirculation of decommissioned blades by 2030.

● All new offshore wind projects will establish net positive biodiversity impact plans.

Site-specific inventories of key biodiversity features were established for four Equinor operated offshore wind assets in operation,

Sheringham Shoal, Dudgeon, Hywind Scotland and Hywind Tampen.

Reporting segment performance

Equinor 2023 Integrated Annual Report 153

3.6 Other group

The Other reporting segment includes activities in Projects, Drilling and Procurement (PDP), the Technology, Digital & Innovation

(TDI) segment and corporate staffs and support functions.

Overview

Technology, Digital & Innovation

To strengthen the development of technologies, digital solutions and innovation, Equinor has gathered the activities into a business

area, Technology, Digital & Innovation (TDI). 

TDI brings together research, technology development, specialist advisory services, digitisation, IT, improvement, innovation, ventures

and future business to one technology powerhouse. TDI is responsible for safe and efficient development and operation of assets;

and for providing expertise, projects and products across the company.

Equinor Ventures is also part of TDI. Ventures is a corporate venture capital arm investing in innovative scalable companies and

developing relationships to accelerate the energy transition. To read more about Equinor Ventures, please see section 2.3 Research

and innovation.

In 2023 TDI updated the Equinor Technology Strategy with a mission to transform through technology by six guiding principles and

addressing strategic themes across three pillars, see overview below.

Projects, Drilling & Procurement

Projects, Drilling & Procurement (PDP) is responsible for oil and gas field development, well delivery, electrification, CCS and

hydrogen projects, and procurement in Equinor. PDP aims to deliver safe, secure and efficient project development, including well

construction, founded on world-class project execution and technology excellence. PDP utilises innovative technologies, digital

solutions and carbon-efficient concepts to shape a competitive project portfolio at the forefront of the energy industry transformation.

Sustainable value is created together with suppliers through a simplified and standardised fit-for-purpose approach.

In 2023 PDP had 33 projects (including third party projects) in execution, 8 of which came on stream during the year. 105 wells were

delivered, and 98 of these were on the Norwegian continental shelf. Through 2023 PDP contributed to the Equinor strategy by

executing and driving projects, such as:

●

One of the projects delivered in 2023 was Breidablikk, a tie in to Grane. The project came on stream in October, four months

ahead of schedule. The project was delivered within budget and with higher initial production than expected. The project is

highly profitable, provides important volumes to the market and value to the Norwegian society and its owners.

●

 The Wisting investment decision was postponed to mature a profitable Wisting project together with partners and suppliers.

Also, the Bay Du Nord investment decision was postponed to further improve overall project competitiveness.

●

 PDP has a front role in developing new projects related to carbon capture and storage, such as the Northern Lights project,

Smeaheia and CO

2

 Highway Europe.

PDP Transforming Execution (PDPTex) project:

Going forward, PDP aims to transform to ensure long-term competitiveness, safeguard Equinor’s licence to operate and efficiently

manage an increasingly diverse and complex portfolio. This requires addressing new challenges and opportunities which will be done

in the PDPTex project:

Reporting segment performance

Equinor 2023 Integrated Annual Report 154

1.

Lift human rights understanding, performance and transparency

2.

Secure longevity of oil and gas cash flow from NCS, by making marginal tie-back volumes profitable

3.

Accelerate the CCS business build, generating new cash flows and reducing net carbon intensity

Corporate staff and support functions

Corporate staff and support functions comprise the non-operating activities supporting Equinor and include head office and central

functions that provide business support such as finance and control, corporate communication, safety, security and sustainability,

corporate audit, legal and compliance and people and organisation.

Performance review

Financial performance

In 2023 the Other reporting segment recorded a net operating loss of USD 92 million compared to a net operating loss of USD 178

million in 2022. The improvement was mainly due to an increase in proceeds from insurance claims, relating to South Riding Point and

the fire at Melkøya LNG in 2020.

The sum of equity accounted investments and non-current segment assets was relatively consistent with the prior year at USD 1,075

million for the year ending 31 December 2023, compared to USD 1,096 million for the year ending 31 December 2022. The organic

capex* for Other reporting segment was USD 91 million in 2023 and USD 76 million in 2022.

Sustainability performance

Other group

Performance

Performance indicator

2023

2022

Serious Incident Frequency (SIF) (number per million hours worked)

0.2

0.3

TDI R&D expenditure on renewables, low-carbon solutions and energy

efficiency (share of total)

40%

36%

Monitoring indicator

Total Recordable Injury Frequency (TRIF) (number per million hours

worked)

1.3

1.6

Altogether the safety results of the Other reporting segment improved in 2023 compared to 2022. This was mainly due to the good

development in PDP and TDI but was offset by a slight increase SIF and TRIF in the Corporate staff and support function.

The safety results for TDI continued to improve with zero SIs in 2023. TDI had one recordable incident, reducing TRIF from 2022 to

2023. Focus areas included preventing falling objects and safety incidents on pressurised systems for test rigs and laboratories. TDI

also contributes to improving safety through technology by improving safety in new value chains (H

2

, NH

3

, CO

2

), establishing

monitoring methods for corrosion under insulation, and using drones and robotics to improve health and safety.

PDP repeated another year without serious well control incidents. The total number of serious incidents was 11 in 2023, decreased

from 19 in 2022. The improvements were related to the systematic and consequent follow up of the PDP safety charters between

Equinor and contractors over many years. The SIF incidents included two serious personnel injuries. PDP is committed to further

improvements in its safety results to avoid serious injuries and well control incidents.

In the Energy transition plan, Equinor set out to allocate 40% of the TDI R&D funding to low carbon and renewable technologies by

2025. Two years ahead of target, Equinor achieved this ambition in 2023. Two important 2023 milestones that are the outcome of

research projects in TDI were:

Reporting segment performance

Equinor 2023 Integrated Annual Report 155

●

 FPSO with technology to lower emissions - Bacalhau will be the first asset to have a FPSO in Brazil that uses combined cycle

gas turbines, which is expected to significantly reduce carbon emissions. The technology combines a gas turbine with a steam

turbine to take advantage of excess heat that would otherwise be lost. The introduction of combined cycle technology is expected

to increase energy efficiency and reduce CO

2

 emissions by about 3 million tons over the field lifetime (-25%).

●

 Methane measurements using drones - In June 2023, Equinor successfully tested three drone-based technologies, and one

LIDAR-based technology for methane measurements at Kollsnes to meet current and future methane measurement obligations

and requirements. Data collection was deemed successful by vendors and results are being analysed.

One of PDP’s main focus is developing projects that contribute to deliver on Equinor’s 'Scope 1 and 2 GHG emissions’ performance

indicator of a 50% reduction by 2030, and tailor for portfolio optimisation by project emissions forecast. PDP Procurement and

Supplier Relations is accelerating the energy transition by integrating net zero in supply chain management, through upstream Scope

3 emissions data collection and supplier collaboration for net zero. PDP drilling & well is mainly pursuing efficiency and reduced

emissions in its drilling operations. PDP is supporting the inclusion of Equinor biodiversity position: Site-specific inventories of

important biodiversity features, enhancement opportunities for existing project sites and plans on how to have a positive contribution

to biodiversity are a requisite for all projects.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 156

Financial statements and notes

4.1 Consolidated financial statements

 of the Equinor Group

4.2 Parent company financial statements

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 157

4.1 Consolidated financial statements 

of the Equinor group

CONSOLIDATED STATEMENT OF INCOME

Full year

(in USD million)

Note

2023

2022

2021

Revenues

7

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

7

107,174

150,806

90,924

Purchases [net of inventory variation]

(48,175)

(53,806)

(35,160)

Operating expenses

(10,582)

(9,608)

(8,598)

Selling, general and administrative expenses

(1,218)

(986)

(780)

Depreciation, amortisation and net impairment

12, 13,

14

(10,634)

(6,391)

(11,719)

Exploration expenses

13

(795)

(1,205)

(1,004)

Total operating expenses

(71,404)

(71,995)

(57,261)

Net operating income/(loss)

5

35,770

78,811

33,663

Interest income and other financial income

10

2,449

1,222

38

Interest expenses and other financial expenses

10

(1,660)

(1,379)

(1,223)

Other financial items

10

1,325

(50)

(895)

Net financial items

2,114

(207)

(2,080)

Income/(loss) before tax

37,884

78,604

31,583

Income tax

11

(25,980)

(49,861)

(23,007)

Net income/(loss)

11,904

28,744

8,576

Attributable to shareholders of the company

20

11,885

28,746

8,563

Attributable to non-controlling interests

19

(3)

14

Basic earnings per share (in USD)

20

3.93

9.06

2.64

Diluted earnings per share (in USD)

20

3.93

9.03

2.63

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 158

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Full year

(in USD million)

Note

2023

2022

2021

Net income/(loss) 

11,904

28,744

8,576

Actuarial gains/(losses) on defined benefit pension plans

(276)

461

147

Income tax effect on income and expenses recognised in OCI

1)

66

(105)

(35)

Items that will not be reclassified to the Consolidated statement of income

22

(211)

356

111

Foreign currency translation effects

(587)

(3,609)

(1,052)

Share of OCI from equity accounted investments

(113)

424

0

Items that may subsequently be reclassified to the Consolidated statement of income

(701)

(3,186)

(1,052)

Other comprehensive income/(loss)

(911)

(2,829)

(940)

Total comprehensive income/(loss)

10,992

25,914

7,636

Attributable to the shareholders of the company

10,974

25,917

7,622

Attributable to non-controlling interests

19

(3)

14

1) Other Comprehensive Income (OCI).

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 159

CONSOLIDATED BALANCE SHEET

 At 31 December

(in USD million)

Note

2023

2022

ASSETS

Property, plant and equipment

12

58,822

56,498

Intangible assets

13

5,709

5,158

Equity accounted investments

15

2,508

2,758

Deferred tax assets

11

7,936

8,732

Pension assets

22

1,260

1,219

Derivative financial instruments

28

559

691

Financial investments

16

3,441

2,733

Prepayments and financial receivables

16

1,291

2,063

Total non-current assets

81,525

79,851

Inventories

17

3,814

5,205

Trade and other receivables

1)

18

16,933

22,452

Derivative financial instruments

28

1,378

4,039

Financial investments

16

29,224

29,876

Cash and cash equivalents

2)

19

9,641

15,579

Total current assets

60,990

77,152

Assets classified as held for sale

6

1,064

1,018

Total assets

143,580

158,021

EQUITY AND LIABILITIES

Shareholders’ equity

48,490

53,988

Non-controlling interests

10

1

Total equity

20

48,500

53,989

Finance debt

21

22,230

24,141

Lease liabilities

25

2,291

2,409

Deferred tax liabilities

11

13,345

11,996

Pension liabilities

22

3,925

3,671

Provisions and other liabilities

23

15,304

15,633

Derivative financial instruments

28

1,795

2,376

Total non-current liabilities

58,890

60,226

Trade, other payables and provisions

24

11,870

13,352

Current tax payable

12,306

17,655

Finance debt

21

5,996

4,359

Lease liabilities

25

1,279

1,258

Dividends payable

20

2,649

2,808

Derivative financial instruments

28

1,619

4,106

Total current liabilities

35,719

43,539

Liabilities directly associated with the assets classified as held for sale

6

471

268

Total liabilities

95,080

104,032

Total equity and liabilities

143,580

158,021

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 160

1)

 Of which Trade receivables of USD 13,017 million in 2023 and USD 17,334 million in 2022.

2)

 Includes collateral deposits of USD 1,572 million for 2023 related to certain requirements set out by exchanges where Equinor is

participating. The corresponding figure for 2022 is USD 6,128 million.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 161

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in USD million)

Share

capital

Additional

paid-in

capital

Retained

earnings

Foreign

currency

translation

reserve

OCI from equity

accounted

investments

1)

Shareholders'

equity

Non-

controlling

interests

Total equity

At 1 January 2021

1,164

6,852

30,050

(4,194)

0

33,873

19

33,892

Net income/(loss)

8,563

8,563

14

8,576

Other comprehensive income/(loss)

111

(1,052)

(940)

(940)

Total comprehensive income/(loss)

7,636

Dividends

(2,041)

(2,041)

(2,041)

Share buy-back

(429)

(429)

(429)

Other equity transactions

(15)

(15)

(18)

(33)

At 31 December 2021

1,164

6,408

36,683

(5,245)

0

39,010

14

39,024

Net income/(loss)

28,746

28,746

(3)

28,744

Other comprehensive income/(loss)

356

(3,609)

424

(2,829)

(2,829)

Total comprehensive income/(loss)

25,914

Dividends

(7,549)

(7,549)

(7,549)

Share buy-back

(22)

(3,358)

(3,380)

(3,380)

Other equity transactions

(10)

(10)

(10)

(20)

At 31 December 2022

1,142

3,041

58,236

(8,855)

424

53,988

1

53,989

Net income/(loss)

11,885

11,885

19

11,904

Other comprehensive income/(loss)

(211)

(587)

(113)

(911)

(911)

Total comprehensive income/(loss)

10,992

Dividends

(10,783)

(10,783)

(10,783)

Share buy-back

(42)

(3,037)

(2,606)

(5,685)

(5,685)

Other equity transactions

(3)

(3)

(10)

(13)

At 31 December 2023

1,101

0

56,521

(9,442)

310

48,490

10

48,500

1) OCI items from equity accounted investments that may subsequently be reclassified to the Consolidated statement of income, are

presented as part of OCI from equity accounted investments. OCI items that will not be reclassified to the Consolidated statements of income

will be included in retained earnings. 

Please refer to note 20 Shareholders’ equity, capital distribution and earnings per share for more details.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 162

CONSOLIDATED STATEMENT OF CASH FLOWS

Full year

(in USD million)

Note

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Depreciation, amortisation and net impairment

12, 13, 14

10,634

6,391

11,719

Exploration expenditures written off

13

(53)

342

171

(Gains)/losses on foreign currency transactions and balances

(852)

(2,088)

(47)

(Gains)/losses on sale of assets and businesses

6

8

(823)

(1,519)

(Increase)/decrease in other items related to operating activities

1)

(1,313)

468

106

(Increase)/decrease in net derivative financial instruments

28

1,041

1,062

539

Interest received

1,710

399

96

Interest paid

(1,042)

(747)

(698)

Cash flows provided by operating activities before taxes paid and working capital items

48,016

83,608

41,950

Taxes paid

(28,276)

(43,856)

(8,588)

(Increase)/decrease in working capital

4,960

(4,616)

(4,546)

Cash flows provided by operating activities 

24,701

35,136

28,816

Cash used in business combinations

6

(1,195)

147

(111)

Capital expenditures and investments

6

(10,575)

(8,758)

(8,040)

(Increase)/decrease in financial investments

443

(10,089)

(9,951)

(Increase)/decrease in derivative financial instruments

(1,266)

1,894

(1)

(Increase)/decrease in other interest-bearing items

(87)

(23)

28

Proceeds from sale of assets and businesses

6

272

966

1,864

Cash flows provided by/(used in) investing activities

(12,409)

(15,863)

(16,211)

Repayment of finance debt

21

(2,818)

(250)

(2,675)

Repayment of lease liabilities

25

(1,422)

(1,366)

(1,238)

Dividends paid

20

(10,906)

(5,380)

(1,797)

Share buy-back

20

(5,589)

(3,315)

(321)

Net current finance debt and other financing activities

2,593

(5,102)

1,195

Cash flows provided by/(used in) financing activities

21

(18,142)

(15,414)

(4,836)

Net increase/(decrease) in cash and cash equivalents

(5,850)

3,860

7,768

Foreign currency translation effects

(87)

(2,268)

(538)

Cash and cash equivalents at the beginning of the period (net of overdraft)

19

15,579

13,987

6,757

Cash and cash equivalents at the end of the period (net of overdraft)

2)

19

9,641

15,579

13,987

1)

 The line item mainly consists of provisions, unrealised gains and losses and items of income or expense for which the cash effects are

included in increase/(decrease) in working capital within operating cash flow and investing cash flows. In 2023 the main item is related to

interest income and expense included in the line item interest received and interest paid. In 2022 the line item includes a fair value loss

related to inventory of USD 672 million. The amount for 2021 includes USD (822) million in redetermination settlement for the Agbami

field. 

2)

 At 31 December 2023 and 2022 cash and cash equivalents net overdraft was zero. At 31 December 2021 cash and cash equivalents

included a net overdraft of USD 140 million.

Interest paid

in cash flows provided by operating activities excludes capitalised interest of USD 468 million, USD 382 million, and USD 334

million for the years ending 31 December 2023, 2022 and 2021, respectively. Capitalised interest is included in Capital expenditures and

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 163

investments in cash flows used in investing activities. Total interest paid amounts to USD 1,510 million, USD 1,129 million, and USD 1,032

million for the years 2023, 2022 and 2021, respectively.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 164

Notes to the Consolidated financial statements

Table of contents for notes to the financial statements

1

Organisation

2

Accounting policies

3

Climate change and energy transition

4

Financial risk and capital management

5

Segments

6

Acquisitions and disposals

7

Total revenues and other income

8

Salaries and personnel expenses

9

Auditor’s remuneration and Research and development

expenditures

10

Financial items

11

Income taxes

12

Property, plant and equipment

13

Intangible assets

14

Impairments

15

Joint arrangements and associates

16

Financial investments and financial receivables

17

Inventories

18

Trade and other receivables

19

Cash and cash equivalents

20

Shareholders’ equity, capital distribution and earnings per share

21

Finance debt

22

Pensions

23

Provisions and other liabilities

24

Trade, other payables and provisions

25

Leases

26

Other commitments, contingent liabilities and contingent assets

27

Related parties

28

Financial instruments and fair value measurement

29

Subsequent events

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 165

1 Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and

listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The address of its registered office is Forusbeen 50, N-

4035 Stavanger, Norway.

Equinor’s objective is to develop, produce and market various forms of energy and derived products and services, as well as other

businesses. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy AS, a

100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the Norwegian

continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2023 were approved for issuance by the board of directors on 12

March 2024 and is subject to approval by the annual general meeting on 14 May 2024.

2 Accounting policies

Statement of compliance

The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with IFRS

Accounting Standards as adopted by the European Union (EU) and with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB), IFRIC® Interpretations issued by IASB and the additional requirements of the Norwegian

Accounting Act, effective on 31 December 2023.

Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement

is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting

policies described in these Consolidated financial statements have been applied consistently to all periods presented.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in

the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some

of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

The line items included in Total operating expenses in the Consolidated statement of income are presented as a combination of

function and nature in conformity with industry practice. Purchases [net of inventory variation] and Depreciation, amortisation and net

impairments are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative

expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc.

are presented by their nature in the notes to the Consolidated financial statements.

Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor’s interests in jointly

controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses

arising from Equinor's internal transactions, have been eliminated.

Foreign currency translation

Foreign exchange differences arising on translation of transactions, assets and liabilities to the functional currency of individual

entities in Equinor are recognised in the Consolidated statement of income as foreign exchange gains or losses within Net financial

items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as

part of the change in the underlying estimate.

When preparing the Consolidated financial statements, the financial statements of entities with functional currencies other than the

Group’s presentation currency USD are translated into USD, and the foreign exchange differences are recognised separately in the

Consolidated statement of comprehensive income within Other comprehensive income (OCI).

The cumulative amount of such

translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of the

gain or loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional currencies than the parent company,

and for which settlement is neither planned nor likely in the foreseeable future, are considered part of the parent company’s net

investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial

statements.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 166

Statement of cash flows

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss) before tax is adjusted

for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations

and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items of income or expense

for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments, derivative financial

instruments, and other interest-bearing items are all presented net as part of Investing activities, either because the transactions are

financial investments and turnover is quick, the amounts are large, and the maturities are short, or due to materiality.

--------------------------------------------------------------------------------------------------------------------------------

Accounting judgement and key sources of estimation uncertainty

The preparation of the Consolidated financial statements requires management to make accounting judgements, estimates and

assumptions.

Information about judgements made in applying the accounting policies that have the most significant effects on the amounts

recognised in the Consolidated financial statements is described in the following notes:

Note 6 – Acquisitions and disposals

Note 7 – Total revenues and other income

Note 25 – Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models. The

assumptions on which the estimates are based rely on historical experience, external sources of information and various other factors

that management assesses to be reasonable under the current conditions and circumstances. These estimates and assumptions form

the basis of making the judgements about carrying values of assets and liabilities when these are not readily apparent from other

sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going

basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity prices, foreign currency

exchange rates, market risk premiums and interest rates as well as financial instruments with fair values derived from changes in

these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to

several of these economic assumptions. In addition, Equinor's results are influenced by the level of production, which in the short term

may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of

exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty are described in each of the following notes:

Note 3 – Climate change and energy transition

Note 11 – Income taxes

Note 12 – Property, plant and equipment

Note 13 – Intangible assets

Note 14 – Impairments

Note 23 – Provisions and other liabilities

Note 26 – Other commitments, contingent liabilities and contingent assets

--------------------------------------------------------------------------------------------------------------------------------

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations effective and adopted by

Equinor from 1 January 2023 do not have significant impact on Equinor’s Consolidated financial statements upon adoption. This

includes among others IFRS 17 Insurance Contracts and amendments to IAS 12 International Tax Reform – Pillar Two Model Rules

(top-up tax).

IFRS Accounting Standards, amendments to IFRS Accounting Standards, and IFRIC Interpretations issued, but not yet effective, are

either not expected to materially impact Equinor's Consolidated financial statements upon adoption or are not expected to be relevant.

Equinor has not early adopted any IFRS Accounting Standard, amendments to IFRS Accounting Standards, or IFRIC Interpretations

issued, but not yet effective.

3 Climate change and energy transition

Risks arising from climate change and the transition to a lower carbon economy

Policy, legal, regulatory, market and technology developments related to climate change, can affect Equinor’s business plans and

financial performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery

and outcomes associated with Equinor’s strategy. In its long-term planning, Equinor analyses how the global energy markets may

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 167

develop, such as future changes in demand for Equinor’s products (oil, gas and power in key markets). Commodity price sensitivities

are presented in a table below, including the World Energy Outlook 2023 (WEO) scenarios presented by International Energy Agency

(IEA), and in note 14 Impairments.

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness of the company’s

business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates to the exposure and

potential vulnerability of Equinor’s assets to climate-related perils in different climate change scenarios. Equinor’s net-zero strategy

and climate related ambitions are responses to the challenges and opportunities presented by the energy transition. Below is a

summary of relevant risks and risk adjusting actions:

Risks – upsides and downsides

Risk adjusting actions

Transition risks

●

Stricter climate laws, regulations, and policies as well

as adverse litigation outcomes could adversely impact

Equinor's financial results and outlook, including the

value of its assets. These might be direct impacts, or

indirect impacts through changes in consumer

behaviour or technology developments.

●

Changing demand and more cost-competitive

solutions for renewable energy and low-carbon

solutions represent both threats and opportunities for

Equinor future value creation and the value of

Equinor’s assets.

●

Multiple factors in the energy transition contribute to

uncertainty in future energy price assumptions and

changes in investor and societal sentiment can affect

Equinor’s access to capital markets and financing

costs.

●

 Strong competition for assets, changing levels of

policy support, and different commercial/contractual

models may lead to diminishing returns within the

renewable and low carbon industries and hinder

Equinor ambitions. These investments may be

exposed to interest rate risk and inflation risk.

●

 Equinor sees opportunities for value creation in the

energy transition both through optimisation of

Equinor’s oil and gas business and through utilising its

competitive capabilities across new areas of the

energy system. In a decarbonising world with a broad

energy mix, the expectation is that policymakers and

stakeholders will set a premium on oil and gas

produced in a responsible and increasingly carbon

efficient way.

●

Equinor monitors trends in relevant policies and

regulations and addresses regulatory and policy risk

in capital investment processes and through

enterprise risk management in the business line. 

●

Equinor has developed its corporate strategy and

Energy transition plan (ETP) to demonstrate

commitment to a low carbon business transformation

that balances investor and societal expectations.

●

Equinor includes actual or default minimum carbon

pricing across investments, applies price robustness

criteria and routinely stress tests the portfolio for

different future price scenarios towards net zero.

Hurdle rates and other financial sensitivity testing are

included in decision making.

●

 Equinor has presented an ambitious abatement plan

to reduce absolute emissions and emissions

intensity from its activities. 

●

 Equinor assesses climate-related risks related to

external technology development trends and invests

in research, innovation and technology ventures that

support positive value creation for its portfolio.

Examples of relevant technologies within Equinor’s

portfolio include carbon capture and storage (CCS),

blue/green hydrogen, battery technology, solar and

wind renewable energy, low CO2 intensity solutions,

improvements in methane emissions and application

of renewables in oil and gas production.

Physical

climate

risks

●

 Changes in physical climate parameters could impact

Equinor 's operations, resulting in disruption to

operations, increased costs, or incidents. This could

be through extreme weather events or chronic

physical impacts such as rising sea level

accompanied by increased wave heights. As

Equinor’s renewable portfolio grows, unexpected

changes in meteorological parameters, such as

average wind speed or changes in wind patterns and

cloud cover can affect energy production as well as

factors such as maintenance and equipment lifetimes.

●

Physical climate risks are taken into account through

technical and engineering functions in design,

operations, and maintenance, with consideration of

how the external physical environment may be

changing.

●

 With assistance from leading expert consultants and

climate scenario models, Equinor continues to

assess vulnerability of its assets to potential climate-

related changes in the physical environment.

However, there is uncertainty regarding the

magnitude of impact and time horizon for the

occurrence of physical impacts of climate change,

which leads to uncertainty regarding the potential

impact for Equinor.

Impact on Equinor’s financial statements

CO2-cost and EU ETS carbon credits

Equinor’s oil & gas operations in Europe are part of the EU Emission Trading System (EU ETS). Equinor buys EU ETS allowances

(quotas or carbon credits) for the emissions related to its oil & gas production and processing. Currently Equinor receives a share of

free quotas according to the EU ETS regulation, according to which free quotas are to be phased out by 2035.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 168

Total expensed CO2 cost related to emissions and purchase of CO2 quotas in Equinor related to activities resulting in GHG emissions

(Equinor’s share of the operating licences in addition to land-based facilities) amounted to USD 486 million in 2023, USD 510 million

in 2022 and USD 428 million in 2021. A large portion of the cost of CO2 is related to the purchase of EU ETS quotas. The table below

shows, on a 100% operated basis, an analysis of number of quotas utilised and the related monetary amounts recognised in financial

statements by Equinor’s operated licences and land-based facilities subject to the requirements under EU ETS. Allocated free quotas

consist of actual free quotas received in ETS during the year. The closing balance for the number of quotas consists mainly of

purchased quotas for current year and remaining quotas after the settlement of current and previous year(s), including free quotas.

The closing balance in USD consists mainly of the value of the remaining quotas after the preliminary allocation of the current year

quotas.

Number of EU ETS quotas in

thousands

in USD million

2023

2022

2023

2022

Opening balance at 1 January

10,782

11,026

20

59

Allocated free quotas

356

3,697

Purchased quotas on the ETS market

7,822

5,985

708

509

Sold quotas on the ETS market

0

0

Returned excess free quotas

(544)

0

Settled quotas (offset against emissions)

(9,840)

(9,926)

(635)

(548)

Closing balance at 31 December

8,576

10,782

93

20

All numbers in the table are presented gross (100%) for Equinor operated licenses and include both EU ETS and UK ETS quotas.

Investments in renewables and low carbon solutions

Equinor’s ambition is to build a focused, carbon efficient oil and gas portfolio complemented with renewable and low-carbon solutions

to create long-term value while supplying reliable energy with progressively lower emissions. 2023 saw a significant increase in the

power generated from Equinor’s renewable portfolio as well as substantial additions to the portfolio pipelines in renewables. However,

due to inflation and supply chain constraints, Equinor recognised an impairment in the Renewables segment on the US North East

Coast offshore wind projects, see note 14 Impairments for more details.

Equinor’s investments in renewables are included as Additions to PP&E, intangibles and equity accounted investments in the REN-

segment in note 5 Segments. See table below for details. Over the course of 2023, the acquisition of BeGreen, a commercial-scale

offshore wind lease in California, Rio Energy in Brazil and investments related to projects in the US and the UK contributed to the

significant increase in the book value compared to the prior year. See note 6 Acquisitions and disposals for more details.

(in USD million)

2023

2022

Offshore, REN

880

146

Onshore, REN

1,127

152

Total Additions to PP&E, intangibles and equity accounted investments - REN

2,007

298

Low carbon solutions (within MMP)

179

36

Accounting policies - cost of CO2 quotas

Purchased CO2 quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses as incurred in

line with emissions. Accruals for CO2 quotas required to cover emissions to date are valued at market price and reflected as a current

liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the

balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas are acquired in order to cover

own emissions and may be kept to cover subsequent years’ emissions.

Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought, paid, and

expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the balance sheet.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 169

Total Additions to PP&E, intangibles and equity accounted investments - REN and

LCS 

2,186

334

Equinor is making significant steps to industrialise CCS and is already involved in the Northern Lights project in Norway providing CO2

transport and storage solutions (in partnership with Shell and TotalEnergies). Equinor is also pursuing CCS projects in other regions

that have the necessary frame conditions for low carbon solutions. The acquisition of a 25% stake in Bayou Bend, positions Equinor to

be one of the largest US carbon capture and storage projects located along the Gulf Coast in Southeast Texas. Acquisition

investments and capital contributions in these projects amounted to USD 179 million in 2023 (USD 36 million in 2022).

Investments in electrification of oil and gas assets

During 2023, Equinor invested around USD 200 million in electrification (around USD 250 million in 2022). Equinor’s abatement

projects primarily include full and partly electrification of offshore assets in Norway at key fields and plants, including the Troll,

Oseberg, Sleipner, Njord and the Hammerfest LNG plant, mainly by power from shore. Emissions abatement milestones in 2023

included the start-up of the Hywind Tampen offshore wind supplying carbon-free power to the Gullfaks A field and the electrification of

the Gina Krog field with power from shore.

Research and development activities (R&D)

Equinor is involved in several R&D projects aimed at optimizing oil and gas activities, reducing emissions, and developing new

business opportunities in renewables and low carbon solutions. Equinor’s total R&D activities are presented in note 9 Auditor’s

remuneration and Research and development expenditures (expensed R&D) and in note 12 Property, Plant & Equipment (capitalised

R&D).

Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of Equinor’s

economic assumptions and future cash flow estimations. The resulting effects and Equinor's exposure to them are sources of

uncertainty. Estimating global energy demand and commodity prices towards 2050 is challenging due to various complex factors,

including technology change, taxation and production limits, which may change over time. This could lead to significant changes in

accounting estimates, such as useful life (depreciation period and timing of asset retirement obligations), value-in-use (impairment

assessments), and deferred tax assets (see note 11 Income taxes for expected utilisation period of tax losses carried forward and

recognised as deferred tax assets).

Commodity prices

Equinor’s commodity price assumptions applied in value-in-use impairment testing are based on management’s best estimate of

future market trends. This price-set is currently not equal to the price-set in accordance with achieving net zero emissions by 2050 as

outlined in the WEO Net Zero Emissions by 2050 scenario. Changes in how the world acts with regards to achieving the goals in the

Paris agreement could have a negative impact on the valuation of Equinor’s assets. Calculated possible impairments of upstream

production assets and certain intangible assets using assumed prices for two scenarios estimated by the International Energy Agency

(IEA) are provided in the sensitivity table below. These illustrative impairment sensitivity calculations are based on a simplified model

with limitations as described in note 14 Impairments. A linear bridging was applied between current prices and the first price point in

the price sets disclosed in both scenarios. USD 2 per bbl of transportation cost was added to the Brent-prices in the scenarios for

comparability with management’s current best estimate. The IEA scenarios primarily stress oil and gas prices, not reflecting the

potential impact on Equinor’s renewable and low carbon projects or trading and refinery margins. Furthermore, the MMP and REN

segments represent only around 12% of Equinor’s total book value of non-current segment assets and equity accounted investments,

as disclosed in note 5 Segments.

Cost of CO

2

The EU ETS price has increased significantly from 25 EUR/tonne in 2020 to an average cost of EU ETS allowances of 86 EUR/tonne

in 2023 (81 EUR/tonne in 2022). In its commodity price assumptions Equinor projects the price to remain high, in the region of 80

EUR/tonne for the next couple of years in real 2023 terms. In 2040 the price expected to increase to around 130 EUR/tonne (109

EUR/tonne projected in 2022), thereafter increasing to around 150 EUR/tonne in 2050 (135 EUR/tonne project in 2022) in real 2023

terms. As such, Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical

range than today, and a global tax on CO2 emissions will have a negative impact on the valuation of Equinor’s oil and gas assets.

Currently, Equinor pays CO2 fees in Norway, the UK, Germany, Canada and Nigeria. Norway’s Climate Action Plan for the period

2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO2 tax (the total of EU ETS + Norwegian CO2 tax) in

Norway to 2,000 NOK/ tonne (real 2020) in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor’s responses to this risk include evaluation of carbon intensity on both project and portfolio level in investment and divestment

decisions. Equinor currently uses an internal cost of carbon, set at 82 USD/tonne in 2025 and increasing to 115 USD/ tonne by 2030

and staying flat thereafter (in countries with higher carbon costs, country specific cost expectations are used). This cost-scenario is

uncertain but serves as a placeholder for possible future CO2 pricing systems, making sure the assets are financially robust.

Climate-related considerations are included directly in the impairment calculations by estimating the CO2 taxes in the cash flows, and

indirectly through estimated commodity prices related to supply and demand. The CO2 prices also have effect on the estimated

production profiles and economic cut-off of the projects. To reflect that carbon will have a cost for all Equinor’s assets, the current best

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 170

estimate of CO

2

 prices is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where

Equinor has not established specific estimates.

Sensitivity table

The table below presents some relevant prices and variables compared to management’s best estimate, and an illustrative potential

impairment effect given these scenarios. The scenario price-sets were retrieved from IEA’s report, World Energy Outlook 2023. Prices

were adjusted for inflation and presented in Real 2023. See section Profitable portfolio in Chapter 2.2. in the Integrated annual report

for more details about the scenarios:

Management's price assumptions

1)

Net Zero Emissions (NZE) by 2050

Scenario

4)

Announced Pledges Scenario (APS)

5)

Brent blend, 2030

78

USD/bbl

46

USD/bbl

79

USD/bbl

Brent blend, 2040

73

USD/bbl

37

USD/bbl

72

USD/bbl

Brent blend, 2050

68

USD/bbl

28

USD/bbl

65

USD/bbl

TTF, 2030

9.1

USD/MMBtu

4.5

USD/MMBtu

6.8

USD/MMBtu

TTF, 2040

9.5

USD/MMBtu

4.4

USD/MMBtu

6.2

USD/MMBtu

TTF, 2050

9.5

USD/MMBtu

4.3

USD/MMBtu

5.6

USD/MMBtu

EU ETS

2), 3)

, 2030

123

USD/tCO

2

146

USD/tCO

2

141

USD/tCO

2

EU ETS

2), 3)

, 2040

150

USD/tCO

2

214

USD/tCO

2

182

USD/tCO

2

EU ETS

2), 3)

, 2050

176

USD/tCO

2

261

USD/tCO

2

208

USD/tCO

2

Illustrative potential impairment (USD)

~

10.0

billion

~

3.0

billion

1)

 Management’s future commodity price assumptions applied when estimating value in use, see note 14 Impairments.

2)

 Scenarios: Price of CO

2

 quotas in advanced economies with net zero pledges, not including any other CO

2

 taxes.

3)

 EU ETS price assumptions have been translated from EUR to USD using Equinor’s assumptions for currency rates, EUR/USD = 1,176.

4)

 A scenario where all national energy and climate targets made by governments are met on time and in full. Using this scenario, the world is expected to

reach a 1.7ºC increase in the year 2100.

5)

 A scenario where the world moves on a potential path towards limiting global warming to 1.5 °C relative to pre-industrial levels.

Compared to last year’s results, the illustrative potential impairments associated with the APS scenario have increased from less than

USD 0.5 billion to around USD 3 billion. Similarly, the NZE scenario has increased to around USD 10 billion, compared to around USD

4 billion last year. This is significantly impacted by the linear bridging between the current commodity prices and the first price point for

the WEO scenarios, consistent with previous year’s methodology, but with lower current prices this year.

An increase in systematic climate risk may result in a higher discount rate applied for impairment testing purposes. Please see note 14

Impairments for further information on discount rate sensitivity.

Robustness of Equinor’s portfolio, and risk of stranded assets

The transition to renewable energy, technological development, and the expected reduction in global demand for carbon-based

energy, may impact the future profitability of certain upstream oil and gas assets. Equinor uses scenario analysis to outline different

possible energy futures, some of which imply lower oil and natural gas prices and higher CO

2

 tax. If this materialises, it can lead to a

decrease in the cash flow from oil and gas, and potentially reduce the economic lifetime of some assets. Equinor seeks to mitigate this

risk by improving the resilience of the existing upstream portfolio, maximising the efficiency of the infrastructure on the NCS and

optimising the high-quality international portfolio. The project portfolio is robust to low oil and gas prices and actions are in place to

maintain cost discipline across the company. Equinor will continue to add high value barrels to the portfolio through exploration and

increased recovery, with the expectation to maintain strong oil and gas cash flow from operations until 2035. Equinor aims to maintain

significant capex flexibility in the current portfolio, with only sanctioned projects being committed representing less than 50% of the

yearly organic capex from 2025. This is expected to allow Equinor to optimise and re-prioritise non-sanctioned projects to ensure

continued generation of high value through cycles. Equinor will continuously assess the current and future exposure of its portfolio and

take preventative measures to manage physical climate risks.

Based on the current production profiles, approximately 65% of Equinor’s proved oil and gas reserves, as defined by the SEC, are

expected to be produced in the period 2024-2030 and more than 99% in the period 2024-2050. This indicates a lower risk of early

cessation of production and can provide flexibility in adapting to the changing market conditions or a shift in global energy demand.

Equinor aims to continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to

minimise emissions and maximise value. During the transition, Equinor anticipates allocating a reducing share of its gross

capex to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching Equinor’s net

50% reduction ambition for operated scope 1 and 2 emissions will require a company-wide, coordinated effort to execute and

mature the abatement projects, improve energy efficiency, develop new technologies, and strengthen the resilience of the

portfolio. Equinor aims to achieve a 20% reduction in net carbon intensity by 2030 and a 40% reduction by 2035, including

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 171

scope 3 emissions. The combination of increased renewables and decarbonised energy, the scale up of low carbon solutions

such as CCS and optimisation of the oil and gas portfolio provides confidence that Equinor can meet its medium-term

ambitions. As such, Equinor’s ambition to become a net-zero company by 2050 have currently not resulted in the identification

of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market, and strategic considerations. Provided that the economic assumptions

would deteriorate to such an extent that undeveloped assets controlled by Equinor should not materialise, assets at risk are mainly

comprised of the intangible assets Oil and Gas prospects, signature bonuses and the capitalised exploration costs, with a total

carrying value of USD 3,205 million in 2023 (USD 3,634 million in 2022). See note 13 Intangible assets for more information regarding

Equinor’s intangible assets.

Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result of Equinor’s ambition to become a net-

zero company by 2050. However, if the business cases of Equinor’s producing oil and gas assets should change materially, this could

affect the timing of cessation of the assets. A shorter production period will increase the carrying value of the liability. To illustrate,

performing removal five years earlier than currently scheduled would increase the liability by around USD 1.2 billion before tax (around

USD 1 billion in 2022). See note 23 Provisions and other liabilities for more information regarding Equinor’s ARO, including expected

timing of cash outflows of recognised asset retirement obligations. The most significant cash outflows are expected within the year

2043.

4 Financial risk and capital management

General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including commodity price risk, currency

risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor’s approach to risk management includes assessing

and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio level between the most

important market risks and the natural hedges inherent in Equinor’s portfolio. This approach allows Equinor to reduce the number of

risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is an advisory body in Enterprise Risk Management, is responsible for Equinor’s Enterprise Risk

Management and for proposing appropriate measures to adjust risk at the corporate level. This includes assessing Equinor’s financial

risk policies.

Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity markets and is exposed to market risks

including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that can affect the revenues

and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with a focus on achieving

the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures are managed at the corporate level,

while short-term exposures are managed according to trading strategies and mandates. Mandates in the trading organisations within

crude oil, refined products, natural gas, and electricity are relatively restricted compared to the total market risk of Equinor.

Commodity price risk

Equinor’s most important long-term commodity risk (crude oil and natural gas) is related to future market prices as Equinor´s risk

policy is to be exposed to both upside and downside price movements. In the longer term, also power price risk is to a large extent

expected to contribute to Equinor’s commodity price risk portfolio.

To manage short-term commodity risk, Equinor enters into

commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market swaps and

contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor’s bilateral gas sales

portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-

Continental Exchange (ICE), the CME group, the OTC Brent market, and crude and refined products swap markets. The term of

natural gas, power, and emission derivatives is usually three years or less, and they are mainly OTC physical forwards and options,

NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX and ICE.

The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative contracts. Equinor's assets

and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded

instruments, including embedded derivatives that have been bifurcated and recognised at fair value in the Consolidated balance

sheet.

Price risk sensitivities at the end of 2023 and 2022 at 30% are assumed to represent a reasonably possible change based on the

duration of the derivatives. Since none of the derivative financial instruments included in the table below are part of hedging

relationships, any changes in the fair value would be recognised in the Consolidated statement of income.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 172

Commodity price sensitivity

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

442

(442)

666

(666)

Natural gas, electricity and CO2 net gains/(losses)

86

(52)

(3)

140

Currency risk

Equinor’s cash flows from operating activities deriving predominantly from oil and gas sales, operating expenses and capital

expenditures are mainly in USD, but taxes, dividends to shareholders on the Oslo Børs and a share of our operating expenses and

capital expenditures are in NOK. Accordingly, Equinor’s currency management is primarily linked to mitigate currency risk related to

payments in NOK. This means that Equinor regularly purchases NOK, primarily spot, but also on a forward basis using conventional

derivative instruments.

The following currency risk sensitivity for financial instruments has been calculated, by assuming a 11% reasonable possible change

in the most relevant foreign currency exchange rates that impact Equinor’s financial accounts, based on balances at 31 December

2023. As of 31 December 2022, a change of 12% in the most relevant foreign currency exchange rates was viewed as a reasonable

possible change. With reference to the table below, a negative figure represents a negative equity impact / loss, while a positive figure

represents a positive equity impact / gain.

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

1,519

406

903

Shareholders equity through P&L

(413)

(418)

(92)

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(1,519)

(406)

(903)

Shareholders equity through P&L

413

418

92

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

Impact from a 12% strengthening of given currency vs USD on:

Shareholders equity through OCI

3,552

837

750

Shareholders equity through P&L

(889)

(259)

(389)

Impact from a 12% weakening of given currency vs USD on:

Shareholders equity through OCI

(3,552)

(837)

(750)

Shareholders equity through P&L

889

259

389

Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these bonds are

converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond

portfolio based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed/floating

mix on interest rate exposure may vary from time to time. For more detailed information about Equinor’s long-term debt portfolio see

note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of 1.3 percentage points as a reasonable

possible change in interest rates at the end of 2023. In 2022, a change of 1.2 percentage points in interest rates was viewed as a

reasonable possible change. A decrease in interest rates will have an estimated positive impact on net financial items in the

Consolidated statement of income, while an increase in interest rates will have an estimated negative impact on net financial items in

the Consolidated statement of income.

Interest risk sensitivity

At 31 December

2023

2022

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 173

(in USD million)

 - 1.3 percentage

points

+ 1.3 percentage

points

 - 1.2 percentage

points

+ 1.2 percentage

points

Positive/(negative) impact on net financial items

336

(333)

369

(366)

Equity price risk

Equinor’s captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some other listed

and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor is exposed to equity price risk,

defined as the risk of declining equity prices, which can result in a decline in the carrying value of certain Equinor’s assets recognised

in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive insurance company is managed, with the aim of

maintaining a moderate risk profile, through geographical diversification and the use of broad benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a 35% reasonable possible change in equity prices that

impact Equinor’s financial accounts, based on balances at 31 December 2023. At 31 December 2022, a change of 35% in equity

prices was equally viewed as a reasonable possible change. The estimated gains and the estimated losses following from a change in

equity prices would impact the Consolidated statement of income.

Equity price sensitivity

At 31 December

2023

2022

(in USD million)

- 35%

+ 35%

- 35%

+ 35%

Net gains/(losses)

(552)

552

(450)

450

Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The purpose of

liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made six times per year.

Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls

from counterparties. 

If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Equinor

raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The policy is to have a maturity profile

with repayments not exceeding 5% of capital employed in any year for the nearest five years. Equinor’s non-current financial liabilities

have a weighted average maturity of approximately nine years. For more information about Equinor’s non-current financial liabilities,

see note 21 Finance debt.

Short-term funding needs will normally be covered by the USD 5.0 billion US Commercial paper programme (CP) which is backed by

a revolving credit facility of USD 6.0 billion, supported by 19 core banks, maturing in 2026. The facility supports secure access to

funding, supported by the best available short-term rating. As at 31 December 2023 the facility has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor’s financial liabilities.

At 31 December

2023

2022

(in USD million)

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Year 1

20,209

1,369

857

20,172

1,325

1,065

Year 2 and 3

6,035

1,434

636

6,292

1,421

752

Year 4 and 5 

5,601

496

404

5,785

504

486

Year 6 to 10

6,846

405

1,016

8,749

465

1,202

After 10 years

10,751

72

340

11,204

120

706

Total specified

49,442

3,776

3,253

52,202

3,835

4,211

Credit risk

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 174

Credit risk is the risk that Equinor’s customers or counterparties will cause Equinor financial loss by failing to honour their obligations.

Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments, derivative financial

instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce or control credit risk both on a

counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments, and cash collateral.

Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where Equinor has

material credit exposure to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor’s

assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements

and other relevant business information. All counterparties are re-assessed regularly.

Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor’s portfolio as well as maximum

credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual, material exposures

against limits on a daily basis. Equinor’s total credit exposure is geographically diversified among a number of counterparties within

the oil and energy sector, as well as larger oil and gas consumers and financial counterparties. The majority of Equinor’s credit

exposure is with investment- grade counterparties.

The following table contains the carrying amount of Equinor’s financial receivables and derivative financial instruments split by

Equinor’s assessment of the counterparty's credit risk. Trade and other receivables include 1% overdue receivables of more than 30

days. A provision has been recognised for expected credit losses of trade and other receivables using the expected credit loss model.

Only non-exchange traded instruments are included in derivative financial instruments.

(in USD million)

Non-current financial

receivables

Trade and other

receivables

Non-current

derivative financial

instruments

Current derivative

financial instruments

At 31 December 2023

Investment grade, rated A or above

193

5,857

305

565

Other investment grade

8

5,132

7

565

Non-investment grade or not rated

140

5,204

247

248

Total financial assets

341

16,193

559

1,378

At 31 December 2022

Investment grade, rated A or above

1,633

6,125

390

1,715

Other investment grade

12

8,725

41

1,393

Non-investment grade or not rated

14

6,761

259

931

Total financial assets

1,659

21,611

690

4,039

For more information about Trade and other receivables, see note 18 Trade and other receivables.

The table below presents the amounts offset under the terms of various offsetting agreements for financial assets and

liabilities. These agreements are mainly entered into to manage the credit risks associated with over-the-counter commodity

trading as well as regular commodity purchases and sales and enable Equinor and their counterparties to set off financial

liabilities against financial assets in the ordinary course of business as well as in case of default. In addition, exchange-traded

commodity derivatives are offset towards collateral receipts/payments as a result of day-to-day cash settlements based on

change in fair value of open derivative positions. Amounts not qualifying for offsetting consists of collateral receipts or

payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There

exist no restrictions on collaterals received.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 175

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2023

Financial assets

Trade receivables

17,139

3,133

14,006

0

14,006

Collateral receivables

8,713

6,526

2,186

2,186

0

Derivative financial instruments

12,767

10,829

1,937

677

1,260

Total financial assets

38,619

20,488

18,129

2,863

15,266

Financial liabilities

Trade payables

14,184

3,133

11,051

0

11,051

Collateral liabilities

7,791

7,333

458

458

0

Derivative financial instruments

13,437

10,023

3,414

2,405

1,009

Total financial liabilities

35,412

20,488

14,923

2,863

12,060

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2022

Financial assets

Trade receivables

25,607

7,464

18,143

0

18,143

Collateral receivables

16,923

13,455

3,468

3,468

0

Derivative financial instruments

28,535

23,806

4,730

1,708

3,022

0

Total financial assets

71,065

44,725

26,341

5,176

21,164

Financial liabilities

Trade payables

19,913

7,464

12,449

0

12,449

Collateral liabilities

13,936

12,365

1,571

1,571

0

Derivative financial instruments

31,377

24,895

6,482

3,605

2,877

Total financial liabilities

65,226

44,725

20,502

5,176

15,326

Capital management

The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to ensure sufficient

financial flexibility. Equinor’s primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts

for Norwegian Government ownership). Equinor’s current long-term ratings are AA- with a stable outlook (including one notch uplift)

and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody’s, respectively. In order to monitor financial robustness,

a key ratio utilised by Equinor is the non-GAAP metric of “Net interest-bearing debt adjusted (ND2) to Capital employed adjusted

(CE2)”.

At 31 December

(in USD million)

2023

2022

Net interest-bearing debt adjusted, including lease liabilities (ND1)

(5,040)

(6,750)

Net interest-bearing debt adjusted (ND2)

(8,610)

(10,417)

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 176

Capital employed adjusted, including lease liabilities (CE1)

43,460

47,239

Capital employed adjusted (CE2)

39,890

43,571

Net debt to capital employed adjusted, including lease liabilities (ND1/CE1)

(11.6%)

(14.3%)

Net debt to capital employed adjusted (ND2/CE2)

(21.6%)

(23.9%)

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial investments,

adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD 2,030 million and USD

6,538 million for 2023 and 2022, respectively). CE1 is defined as Equinor's total equity (including non-controlling interests) and ND1.

ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD 3,570 million and USD 3,668 million for 2023 and 2022,

respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

5 Segments

Accounting policies

Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production

USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the

line-item Additions to PP&E, intangibles and Equity accounted investments in which movements related to changes in asset

retirement obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external

parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current

financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly

from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market

prices. The transactions are eliminated upon consolidation.

The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources, commercial

development and safe and efficient operation of the oil and gas portfolios within their respective geographical areas: E&P Norway on

the Norwegian continental shelf, E&P USA in USA and E&P International worldwide outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and

ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas, NGL and

refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading

and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines, shipping, trucking and rail. In

addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such as offshore wind, green hydrogen,

storage solutions, and solar power.

Segment information for the years ended 31 December 2023, 2022, and 2021 are presented below. For revenues per geographical

area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments,

please refer to the related notes: note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments, contingent

liabilities, and contingent assets.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 177

 2023

E&P

Norway 

E&P

International

E&P USA

MMP

REN

Other

Eliminations 

Total group

(in USD million)

Revenues third party

230

993

277

105,242

20

85

0

106,848

Revenues and other income inter-segment

37,999

6,009

4,009

633

12

33

(48,695)

0

Net income/(loss) from equity accounted

investments

0

28

0

12

(33)

(8)

0

(1)

Other income

111

1

32

23

18

142

0

327

Total revenues and other income 

38,340

7,032

4,319

105,908

17

253

(48,695)

107,174

Purchases [net of inventory variation]

0

(70)

0

(95,769)

0

(1)

47,665

(48,175)

Operating, selling, general and

administrative expenses

(3,759)

(2,176)

(1,178)

(4,916)

(462)

(201)

893

(11,800)

Depreciation and amortisation

(4,429)

(2,123)

(1,779)

(897)

(12)

(133)

0

(9,373)

Net impairment (losses)/reversals

(588)

(310)

290

(343)

(300)

(10)

0

(1,260)

Exploration expenses

(476)

(20)

(299)

0

0

0

0

(795)

Total operating expenses

(9,253)

(4,700)

(2,966)

(101,925)

(774)

(345)

48,558

(71,404)

Net operating income/(loss)

29,087

2,332

1,353

3,984

(757)

(92)

(137)

35,770

Additions to PP&E, intangibles and equity

accounted investments

5,939

4,376

1,206

844

2,007

128

0

14,500

Balance sheet information

Equity accounted investments 

3

0

0

783

1,665

57

0

2,508

Non-current segment assets 

28,915

17,977

11,049

3,997

1,575

1,018

0

64,530

Non-current assets not allocated to

segments 

14,487

Total non-current assets 

81,525

Assets classified as held for sale

0

1,064

0

0

0

0

0

1,064

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 178

 2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

304

1,099

305

147,164

16

115

0

149,004

Revenues and other income inter-segment

74,631

6,124

5,217

527

0

55

(86,554)

0

Net income/(loss) from equity accounted

investments

0

172

0

406

58

(16)

0

620

Other income

994

35

0

9

111

33

0

1,182

Total revenues and other income 

75,930

7,431

5,523

148,105

185

187

(86,554)

150,806

Purchases [net of inventory variation]

0

(116)

0

(139,916)

0

0

86,227

(53,806)

Operating, selling, general and

administrative expenses

(3,782)

(1,698)

(938)

(4,591)

(265)

(223)

904

(10,593)

Depreciation and amortisation

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

0

(8,878)

Net impairment (losses)/reversals

819

(286)

1,060

895

0

0

0

2,487

Exploration expenses

(366)

(638)

(201)

0

0

0

0

(1,205)

Total operating expenses

(8,315)

(4,183)

(1,501)

(144,493)

(269)

(365)

87,130

(71,995)

Net operating income/(loss)

67,614

3,248

4,022

3,612

(84)

(178)

577

78,811

Additions to PP&E, intangibles and equity

accounted investments

4,922

2,623

764

1,212

298

176

0

9,994

Balance sheet information

Equity accounted investments 

3

550

0

688

1,452

65

0

2,758

Non-current segment assets 

28,510

15,868

11,311

4,619

316

1,031

0

61,656

Non-current assets not allocated to

segments 

15,437

Total non-current assets 

79,851

Assets classified as held for sale

0

1,018

0

0

0

0

0

1,018

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 179

2021

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

261

1,115

377

86,883

8

99

0

88,744

Revenues and other income inter-segment

38,972

4,230

3,771

321

0

41

(47,335)

0

Net income/(loss) from equity accounted

investments

0

214

0

22

16

7

0

259

Other income

154

5

0

168

1,386

208

0

1,921

Total revenues and other income

39,386

5,565

4,149

87,393

1,411

355

(47,335)

90,924

Purchases [net of inventory variation]

0

(58)

0

(80,873)

0

(1)

45,772

(35,160)

Operating, selling, general and

administrative expenses

(3,653)

(1,405)

(1,074)

(3,753)

(163)

(432)

1,102

(9,378)

Depreciation and amortisation

(6,002)

(1,734)

(1,665)

(869)

(3)

(158)

0

(10,432)

Net impairment (losses)/reversals

1,102

(1,587)

(69)

(735)

0

2

0

(1,287)

Exploration expenses

(363)

(451)

(190)

0

0

0

0

(1,004)

Total operating expenses

(8,915)

(5,237)

(2,998)

(86,230)

(166)

(590)

46,873

(57,261)

Net operating income/(loss)

30,471

329

1,150

1,163

1,245

(234)

(461)

33,663

Additions to PP&E, intangibles and equity

accounted investments

4,943

1,834

690

517

457

64

0

8,506

Balance sheet information

Equity accounted investments

3

1,417

0

113

1,108

45

0

2,686

Non-current segment assets

36,502

15,422

11,406

4,006

157

1,032

0

68,527

Non-current assets not allocated to

segments

13,406

Total non-current assets

84,618

Assets classified as held for sale

0

676

0

0

0

0

0

676

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 180

Non-current assets by country

At 31 December

(in USD million)

2023

2022

Norway

32,977

33,242

USA

12,587

12,343

Brazil

10,871

9,400

UK

5,535

3,688

Canada

1,157

1,171

Angola

1,103

895

Denmark

973

497

Argentina

648

615

Algeria

474

622

Poland

447

270

Other

265

1,672

Total non-current assets

1)

67,038

64,414

1)

Excluding deferred tax assets, pension assets and non-current financial assets. Non-current assets are attributed to country of

operations.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 181

6 Acquisitions and disposals

Accounting policies

Business combinations and divestments

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition

method when control is transferred to the group. The purchase price includes total consideration paid to acquire the entity’s assets

and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are

measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative

expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the

Consolidated statement of income under Other income.

Equinor recognises a gain or loss on disposal of a subsidiary when control is lost. Any interest retained in the former subsidiary is

measured at fair value at the time of loss of control. However, when partially divesting subsidiaries that do not constitute a business,

and where the retained investment in the former subsidiary is an associate or a jointly controlled investment, Equinor recognises the

gain or loss only on the divested part within Other income or Operating expenses, respectively. The interest retained in the former

subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities

previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of

income.

Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This

condition is met when an asset is available for immediate sale in its present condition, Equinor’s management is committed to the

sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are

normally met when management has approved a negotiated letter of intent with the counterparties (a ‘DGC’). Liabilities directly

associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified

separately.

Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-

case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an asset purchase,

and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar

assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of oil

and gas exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to

represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10

Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The assessment requires judgement to

be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the IFRS Accounting Standards’

requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been

postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal

entities concurrently with a portion of the entities’ shares being sold to a third party, thereby resulting in Equinor’s loss of control of

those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to

recognise the gain only on the divested portion.

----------------------------------------------------------------------------------------------------------------------------------------

2023

Acquisitions

Acquisition of Rio Energy

On 3 November 2023, Equinor closed a transaction with Denham Capital to acquire 100% of the shares in Horus Investimentos S.A.,

the parent company of Rio Energy Participações S.A., a leading onshore renewables company in Brazil. The cash consideration

amounted to USD 82 million in addition to USD 268 million in capital contribution to settle Rio Energy’s external financing. The

acquired portfolio includes a producing onshore wind farm in the north-eastern state of Bahia, a pre-construction solar photovoltaic

(PV) portfolio and a pipeline of 1.2 GW of onshore wind and solar projects. This transaction resulted in an increase in Equinor’s

property, plant and equipment of USD 350 million. The transaction has been accounted for as a business combination within the REN

segment. The purchase price and the purchase price allocation are preliminary.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 182

Acquisition of Suncor Energy UK Limited

On 30 June 2023, Equinor closed a transaction with Suncor Energy UK Holdings Ltd to acquire 100% of the shares in Suncor Energy

UK Limited for a total consideration of USD 847 million after customary adjustments for working capital. The transaction includes a

non-operated interest in the producing Buzzard oil field (29.89%) and an additional interest in the operated Rosebank development

(40%). The transaction has been accounted for within the E&P International segment as a business combination, resulting in an

increase in Equinor’s property, plant and equipment of USD 1,490 million and deferred tax liabilities of USD 672 million. The purchase

price allocation remains preliminary.

Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar

Aps to acquire 100% of the shares in the Danish solar developer BeGreen Solar Aps. The cash consideration amounted to USD 252

million (EUR 235 million), in addition to a consideration contingent on the successful delivery of future solar projects above an agreed

megawatt threshold. The transaction has been accounted for within the REN segment as a business combination, resulting in an

increase of Equinor’s intangible assets of USD 423 million.

Disposals

Equinor Energy Ireland Limited

On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity

position in the Corrib gas project in Ireland, covering 100% of the shares in Equinor Energy Ireland Limited (EEIL). Prior to closing,

Equinor received an extraordinary dividend of USD 371 million from EEIL. Total consideration amounted to USD 362 million, including

cash settlement of contingent consideration. A loss of USD 258 million has been recognised within the E&P International segment and

presented in the line item Operating expenses in the Consolidated statement of income.

Held for sale

Divestment of interest in Azerbaijan

On 22 December 2023, Equinor entered into an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR) to sell

its interest in its Azerbaijan assets. The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in

the Azerbaijan sector of the Caspian Sea, 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh oil

field. Closing is expected during 2024 subject to regulatory and contractual approvals. The assets have been classified as held for

sale resulting in a USD 310 million impairment within the E&P International segment, presented in the line item Depreciation,

amortisation and net impairments in the Consolidated statement of income.

2022

Acquisitions

Acquisition of Triton Power

On 1 September 2022, Equinor and SSE Thermal Generation Holdings Limited (SSE Thermal) closed a transaction to acquire the UK

power company Triton Power Holdings Ltd (Triton Power) from Triton Power Partners LP owned by Energy Capital Partners (ECP).

Equinor’s share of the consideration was USD 141 million (GBP 120 million), after adjustments that mainly related to net debt and

working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station with an installed capacity of 1.2

GW. Equinor and SSE Thermal own 50% each of Triton Power, and Equinor is accounting for the investment under the equity method

as a joint venture in the MMP segment.

Acquisition of Statfjord

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy’s ownership interests in production licences in the

Statfjord area which covers the Norwegian and UK Continental Shelves ranging from 11.56% to 48.78%. All licences are operated by

Equinor. The cash consideration received was USD 168 million. The assets and liabilities acquired have been reflected in accordance

with the principles in IFRS 3 Business Combinations. The transaction is reflected in the E&P Norway and E&P International segments.

In the segment E&P Norway, the acquisition resulted in an increase of USD 98 million in property, plant and equipment, an increase of

USD 390 million in asset retirement obligation, a reduction of deferred tax liability of USD 298 million and an increase in taxes payable

of USD 98 million. In the segment E&P International, the acquisition resulted in an increase of USD 98 million in property, plant and

equipment, an increase of USD 241 million in asset retirement obligation and an increase of deferred tax asset of USD 86 million.

Disposals

Ekofisk and Martin Linge on the Norwegian Continental Shelf

On 30 September 2022, Equinor closed a transaction with Sval Energi AS to divest Equinor’s entire ownership share in the Greater

Ekofisk Area including its share in Norpipe Oil AS, and a 19% ownership share in Martin Linge. The cash consideration at closing

amounted to USD 293 million. Equinor retained a 51% ownership share in Martin Linge and continues as operator of the field. The

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 183

disposal resulted in a decrease in property, plant and equipment of USD 1,493 million, a decrease in asset retirement obligation of

USD 376 million, a decrease in deferred tax liability of USD 597 million and a decrease in taxes payable of USD 686 million. A post-

tax gain of USD 655 million is presented in the line item Other income in the Consolidated statement of income in the E&P Norway

segment.

Exit Russia

Following Russia’s invasion of Ukraine in February 2022, Equinor announced that it had decided to stop new investments in Russia

and start the process of exiting Equinor’s joint arrangements. Based on this decision, Equinor evaluated its assets in Russia and

recognised net impairments of USD 1,083 million in the first quarter, of which USD 251 million was related to property, plant and

equipment and intangible assets and USD 832 million was related to investments accounted for using the equity method. The

impairments were net of contingent consideration from the time of acquiring the assets. The impairments were recognised in the line

items Depreciation, amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based

on the nature of the impaired assets and reflected in the E&P International segment. During the second quarter, Equinor transferred

its participating interests in four Russian entities to Rosneft and was released from all future commitments and obligations with no

material impact on the financial statements. The ownership interests in Kharyaga were transferred to the operator.

Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any new trades or engage in new transport of

oil and oil products from Russia. Equinor has assessed the accounting impact of certain commitments arising from such contracts

entered into prior to the invasion and deem the impact to be immaterial.

10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank C project in the UK for

a total consideration of USD 91 million (GBP 68 million), resulting in a gain of USD 87 million (GBP 65 million). After closing, Equinor’s

ownership share is 40%. Equinor continues to equity account for the remaining investment as a joint venture. The gain is presented in

the line item Other income in the Consolidated statement of income in the REN segment.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 184

7 Total revenues and other income

Accounting policies

Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption, Revenues, in the Consolidated

statement of income.

Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products, power and other merchandise is recognised when a customer

obtains control of those products, which for tangible products normally is when title passes at point of delivery, based on the

contractual terms of the agreements. Each such sale normally represents a single performance obligation. In the case of natural gas

as well as power, which is delivered on a continuous basis through pipelines and grid, sales are completed over time in line with the

delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and

Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial

instruments or part of Equinor’s trading activities, they are settled and presented on a net basis as Other revenue. Reference is made

to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of

Equinor’s own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of

volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the

ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership

interest, costs are deferred for the underlift.

Certain long-term LNG and natural gas sales contracts include clauses which entail price reviews at regular intervals at the discretion

of either party. Where updated prices have not yet been agreed upon for volumes already delivered, it is necessary to estimate the

amount of variable consideration Equinor expects to be entitled to for these volumes. In the frequently volatile markets, there is a

degree of estimation uncertainty and reasoned judgement in establishing the expected variable consideration.

Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as other revenue

if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain

production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related

to sales contracts or revenue-related risk management.

Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The

Norwegian State's participation in petroleum activities is organised through the Norwegian State’s Direct Financial Interests (SDFI). All

purchases and sales of the SDFI's oil and natural gas liquids production are classified as purchases [net of inventory variation] and

revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI’s account and risk, the SDFI’s production of natural gas including Liquefied Natural

Gas (LNG). These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial

statements. Natural gas sales made in the name of Equinor’s subsidiaries are also presented net of the SDFI’s share in the

Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement,

Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards sales to third party customers.

Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor

purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has

concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although

Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI.

On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and

SDFI.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 185

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Revenues from contracts with customers by geographical areas

Equinor has business operations in around 30 countries.

When attributing the line-item Revenues from contracts with customers for 2023

to the country of the legal entity executing the sale, Norway constitutes 79% and USA constitutes 18%. For 2022 the revenues to

Norway and USA constituted 84% and 13% respectively, and for 2021 81% and 13% respectively. Revenues from contracts with

customers are mainly reflecting such revenues from the reporting segment MMP.

Revenues from contracts with customers and other revenues

(in USD million)

Note

2023

2022

2021

Crude oil

56,861

58,524

38,307

Natural gas

26,386

65,232

28,050

 - European gas

23,174

58,239

24,900

 - North American gas

1,111

2,884

1,783

 - Other incl LNG

2,102

4,109

1,368

Refined products

10,083

11,093

11,473

Natural gas liquids

8,345

9,240

8,490

Transportation

1,425

1,470

921

Other sales

3,032

4,702

1,006

Total revenues from contracts with customers

106,132

150,262

88,247

Taxes paid in-kind

342

412

345

Physically settled commodity derivatives

1,331

(2,534)

(1,075)

Gain/(loss) on commodity derivatives

(1,041)

739

951

Change in fair value of trading inventory

(334)

(194)

0

Other revenues

418

319

276

Total other revenues

716

(1,258)

497

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 186

8 Salaries and personnel expenses 

(in USD million, except average number of employees)

2023

2022

2021

Salaries

1)

2,876

2,875

2,962

Pension costs

2)

441

458

488

Payroll tax

511

433

414

Other compensations and social costs

375

324

288

Total payroll expenses

4,203

4,090

4,152

Average number of employees

3)

22,600

21,500

21,400

1)

 Salaries include bonuses and expatriate costs in addition to base pay.

2)

 See note 22 Pensions.

3)

 Part time employees amount to 2% for 2023 and 3% for 2022 and 2021.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours

incurred basis.

Compensation to the board of directors (BoD) and the corporate executive committee (CEC)

(in USD million)

1)

2023

2022

2021

Current employee benefits

10.7

12.9

12.2

Post-employment benefits

0.3

0.4

0.4

Other non-current benefits

0.0

0.0

0.0

Share-based payment benefits

0.3

0.2

0.1

Total benefits

11.3

13.5

12.7

1) All figures in the table are presented on accrual basis.

At 31 December 2023, 2022, and 2021 there are no loans to the members of the BoD or the CEC.

Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions

and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of

purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts vested for bonus shares

granted and related social security tax was USD 78 million, USD 85 million, and USD 79 million related to the 2023, 2022 and 2021

programmes, respectively. For the 2024 programme (granted in 2023), the estimated compensation expense is USD 83 million. At 31

December 2023 the amount of compensation cost yet to be expensed throughout the vesting period is USD 176 million.

See note 20 Shareholders’ equity, capital distribution and earnings per share for more information about share-based compensation.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 187

9 Auditor’s remuneration and Research and development expenditures 

Auditor's remuneration

Full year

(in USD million, excluding VAT)

2023

2022

2021

Audit fee

14.9

11.4

14.4

Audit related fee 

1.2

1.8

1.1

Tax fee

-

-

-

Other service fee 

-

-

-

Total remuneration

16.1

13.2

15.5

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences amount to USD

0.5 million, USD 0.6 million and USD 0.5 million for 2023, 2022 and 2021, respectively.

Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D activities

contribute to maximising and developing long-term value from Equinor’s assets. R&D expenditures are partially financed by partners

of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD 311 million, USD 308 million and USD 291 million in 2023, 2022

and 2021, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated

statement of income.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 188

10 Financial items

Full year

(in USD million)

2023

2022

2021

Foreign currency exchange gains/(losses) derivative financial instruments 

(1,476)

797

870

Other foreign currency exchange gains/(losses)

2,328

1,291

(823)

Net foreign currency exchange gains/(losses)

852

2,088

47

Dividends received

218

93

39

Interest income financial investments, including cash and cash equivalents

1,468

398

38

Interest income non-current financial receivables

31

30

26

Interest income other current financial assets and other financial items

732

701

48

Interest income and other financial income

2,449

1,222

151

Gains/(losses) financial investments

123

(394)

(348)

Gains/(losses) other derivative financial instruments

351

(1,745)

(708)

Interest expense bonds and bank loans and net interest on related derivatives

(1,263)

(1,029)

(896)

Interest expense lease liabilities

(132)

(90)

(93)

Capitalised borrowing costs

468

382

334

Accretion expense asset retirement obligations

(538)

(449)

(453)

Interest expense current financial liabilities and other financial expense

(195)

(192)

(114)

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Net financial items

2,114

(207)

(2,080)

Equinor's main financial items relate to assets and liabilities in the fair value through profit or loss and the amortised cost categories.

For more information about financial instruments by category see note 28 Financial instruments and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to

liquidity and currency risk. Other foreign currency exchange gains/(losses) includes a fair value gain from derivatives related to non-

current debt of USD 315 million in 2023, and a loss of USD 691 million and USD 702 million in 2022 and 2021 respectively.

Interest income financial investments, including cash and cash equivalents includes interest income related to balances at amortised

cost of USD 1,410 million, USD 364 million, and USD 12 million for 2023, 2022 and 2021, respectively.

Gains/(losses) other derivative financial instruments primarily include fair value changes from interest rate related derivatives, with a

gain of USD 332 million in 2023 and a loss of USD 1,760 million and USD 724 million in 2022 and 2021 respectively.

Interest expense bonds and bank loans and net interest on related derivatives includes interest expenses of USD 857 million, USD

918 million, and USD 990 million for 2023, 2022 and 2021, respectively, on financial liabilities at amortised cost. It also includes net

interest on related derivatives at fair value through profit or loss, amounting to a net interest expense of USD 405 million for 2023 and

USD 111 million for 2022, and a net interest income of USD 94 million for 2021.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 189

11 Income taxes

Accounting policies 

Income tax

Income tax in the Consolidated statement of income comprises current income tax and effects of changes in deferred tax positions.

Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in other comprehensive

income (OCI).

Current tax consists of the expected tax payable for the year and any adjustment to tax payable for previous years. Uncertain tax

positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each

case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for

which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to differences between the carrying

amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses and credits carried forward, subject

to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income

will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income,

convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of

expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate

movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding

deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items.

Equinor has adopted amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules (top-up tax) with effect from 1

January 2023. Equinor has applied the mandatory exception and does not recognise or disclose information about deferred tax assets

and liabilities related to Pillar Two income taxes. 

The mandatory exception applies retrospectively. However, since no new legislation to implement the top-up tax was enacted or

substantively enacted on 31 December 2022 in any jurisdiction in which Equinor operates, and no related deferred tax was recognised

at that date, the retrospective application has no impact on the Consolidated financial statements. 

Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred

tax assets and deferred tax liabilities. There may be uncertainties related to interpretations of applicable tax laws and regulations

regarding amounts in Equinor’s tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may

take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions

through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations

and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is

dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the

case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions

against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased

the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient

future taxable income before tax losses expire.

-----------------------------------------------------------------------------------------------------------------------------------

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 190

Significant components of income tax expense

Full year

(in USD million)

2023

2022

2021

Current income tax expense in respect of current year

(24,028)

(52,124)

(21,271)

Prior period adjustments

(121)

(112)

(28)

Current income tax expense

(24,149)

(52,236)

(21,299)

Origination and reversal of temporary differences

(1,529)

(2,136)

(1,778)

Recognition / derecognition of previously (un)recognised deferred tax assets

(137)

4,401

126

Change in tax regulations

4

0

4

Prior period adjustments

(169)

110

(60)

Deferred tax income/(expense)

(1,831)

2,375

(1,708)

Income tax

(25,980)

(49,861)

(23,007)

Changes to tax regimes

Pillar Two

On 24 November 2023 the Norwegian Ministry of Finance published a draft resolution on the implementation of the OECD Pillar Two

Model Rules into Norwegian legislation. The rules are introducing a global minimum tax of 15%. The proposal was sanctioned in

January 2024 and the Norwegian Top Up Tax Act (No: “Suppleringsskatteloven”) has entered into effect for the income year 2024.

The Pillar Two rules will be applicable to the Equinor group, but Equinor’s preliminary assessment is that we do not expect any

significant economic impact from the rules.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 191

Reconciliation of statutory tax rate to effective tax rate

Full year

(in USD million)

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Calculated income tax at statutory rate

1)

(8,833)

(18,168)

(7,053)

Calculated Norwegian Petroleum tax

2)

(17,226)

(36,952)

(17,619)

Tax effect uplift

3)

160

259

914

Tax effect of permanent differences regarding divestments

82

417

90

Tax effect of permanent differences caused by functional currency different from tax currency

5

145

150

Tax effect of other permanent differences

453

403

228

Recognition / derecognition of previously (un)recognised deferred tax assets

4)

(137)

4,401

126

Change in unrecognised deferred tax assets

(29)

(34)

619

Change in tax regulations

4

0

4

Prior period adjustments

(290)

(3)

(88)

Other items including foreign currency effects

(169)

(327)

(378)

Income tax

(25,980)

(49,861)

(23,007)

Effective tax rate

68.6 %

63.4 %

72.8 %

1)

 The weighted average of statutory tax rates was 23.3% in 2023, 23.1% in 2022 and 22.3% in 2021. The rates are influenced by

earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates.

2)

 The Norwegian petroleum income is taxable at a tax rate of 71.8% after deducting a calculated 22% corporate tax.

3)

 As from 2023 the uplift deduction for investments on NCS has been abolished except for asset investments that fall under the

temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to the authorities before 31

December 2022 the rules allow a direct deduction of the whole uplift in the year the capital expenditure is incurred. In 2022 the

rate was 17.69% and this rate was reduced to 12.4% in 2023. 

4)

 Equinor performs its assessment on DTA recognition based on sources of income such as the reversal pattern of taxable timing

differences and projections of taxable income and recognises the amount of deferred tax assets that is probable to be realised. In

2023 USD 137 million was derecognised due to an increase in valuation allowance mainly related to Angola and Canada,

compared to a recognition of USD 4,401 million in 2022 mainly related to unused accumulated tax losses in the US. 

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 192

Deferred tax assets and liabilities comprise

(in USD million)

Tax losses

carried

forward

Property,

plant and

equipment 

and

intangible

assets

Asset

retirement

obligations

Lease

liabilities

Pensions

Derivatives

Other

Total

Deferred tax assets

8,575

514

7,816

1,298

747

446

1,495

20,892

Deferred tax liabilities

(28)

(26,042)

0

(2)

(6)

0

(300)

(26,378)

Net asset/(liability) at 31 December

2023

8,547

(25,528)

7,816

1,296

741

446

1,195

(5,485)

Deferred tax assets

8,105

694

7,356

1,306

694

1,131

1,348

20,634

Deferred tax liabilities

(28)

(23,356)

0

(3)

(12)

(3)

(411)

(23,813)

Net asset/(liability) at 31 December

2022

8,077

(22,662)

7,356

1,303

682

1,128

937

(3,179)

Changes in net deferred tax liability during the year were as follows:

(in USD million)

2023

2022

2021

Net deferred tax liability at 1 January

3,179

7,655

6,250

Charged/(credited) to the Consolidated statement of income

1,831

(2,375)

1,708

Charged/(credited) to Other comprehensive income

(66)

105

35

Acquisitions and disposals

981

(968)

36

Foreign currency translation effects and other effects

(440)

(1,239)

(374)

Net deferred tax liability at 31 December

5,485

3,179

7,655

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 193

Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a

legally enforceable right to offset current tax assets against current tax liabilities. After netting deferred tax assets and liabilities by

fiscal entity and reclassification to Assets held for sale, deferred taxes are presented on the Consolidated balance sheet as follows:

At 31 December

(in USD million)

2023

2022

Deferred tax assets

7,936

8,732

Deferred tax liabilities

13,345

11,996

Net deferred tax classified as held for sale

(76)

85

Deferred tax assets are recognised based on the expectation that sufficient taxable income will be available through reversal of

taxable temporary differences or future taxable income. At year-end 2023, the deferred tax assets of USD 7,952 million were primarily

recognised in the US, the UK, Norway, Angola, Canada and Brazil. Of this amount, USD 965 million was recognised in entities which

have suffered a tax loss in either the current or the preceding period. The corresponding amounts for 2022, were USD 8,817 million

and USD 1,953 million, respectively. The tax losses will be utilised through reversal of taxable temporary differences and future

taxable income, mainly from production of oil and gas. Around 80% of the tax losses carried forward and recognised as deferred tax

assets are expected to be fully utilised within 10 years.

Unrecognised deferred tax assets

At 31 December

2023

2022

(in USD million)

Basis

Tax

Basis

Tax

Deductible temporary differences

2,555

1,030

2,558

968

Unused tax credits

0

185

0

129

Tax losses carried forward

3,944

947

3,458

930

Total unrecognised deferred tax assets

6,499

2,162

6,016

2,027

Approximately 90% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the unrecognised

tax losses that cannot be carried forward indefinitely expire after 2027. The unrecognised tax credits expire from 2030, while the

unrecognised deductible temporary differences do not expire under the current tax legislation. Deferred tax assets have not been

recognised in respect of these items because currently there is insufficient evidence to support that future taxable profits will be

available to secure utilisation of the benefits.

At year-end 2023, unrecognised deferred tax assets in Angola and Canada represents USD 712 million and USD 415 million,

respectively, of the total unrecognised deferred tax assets of USD 2,162 million. Similar amounts for 2022 were USD 636 million in

Angola and USD 346 million in Canada of a total of USD 2,027 million. The remaining unrecognised deferred tax assets originate from

several different tax jurisdictions.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 194

12 Property, plant and equipment

Accounting policies

Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset

comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate

of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.

Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with

later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the

asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing

agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective

countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and

overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and

carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection

and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or completion of

infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport systems for oil

and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when

designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the

unit of production method (UoP) based on proved reserves expected to be recovered from the area during the concession or contract

period. Depreciation of production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs

of proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances where the use

of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset’s future economic benefits are

expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets and transport systems used by

several fields is calculated on the basis of their estimated useful lives, normally using the straight-line method. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For

exploration and production assets, Equinor has established separate depreciation categories which as a minimum distinguish

between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are

accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on

derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably

certain, are recognised in the Consolidated balance sheet as a deduction to the carrying value of the asset and subsequently

recognised in the Consolidated statement of income over the life of the depreciable asset as a reduced depreciation expense.

Research and development

Equinor undertakes research and development both on a funded basis for licence holders and on an unfunded basis for projects at its

own risk, developing innovative technologies to create opportunities and enhance the value of current and future assets. Expenses

relate both to in-house resources and the use of suppliers. Equinor's own share of the licence holders' funding and the total costs of

the unfunded projects are considered for capitalisation under the applicable IFRS Accounting Standard requirements. Subsequent to

initial recognition, any capitalised development costs are accounted for in the same manner as Property, plant and equipment. Costs

not qualifying for capitalisation are expensed as incurred, see note 9 Auditor’s remuneration and Research and development

expenditures for more details.

Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and gas quantities are

always uncertain. Estimating reserves is complex and based on a high degree of professional judgement involving geological and

engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and

installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and

economic data and the efficiency of extracting and processing the hydrocarbons.

Estimation uncertainty; Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets, as changes in the proved reserves, will

impact the unit of production rates used for depreciation and amortisation. 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. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves only reflect the period before

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 195

the contracts providing the right to operate expire. For future development projects, proved reserves estimates are included only

where there is a significant commitment to project funding and execution and when relevant governmental and regulatory approvals

have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed reserves are to be

recovered through existing wells with existing equipment and operating methods, or where the cost of the required equipment is

relatively minor compared to the cost of a new well. Proved undeveloped reserves are to be recovered from new wells on undrilled

acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled well locations can be classified as

having proved undeveloped reserves if a development plan is in place indicating that they are scheduled to be drilled within five years

unless specific circumstances justify a longer time horizon. Specific circumstances are for instance fields which have large up-front

investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled to continue for much

longer than five years. For unconventional reservoirs where continued drilling of new wells is a major part of the investments, such as

the US onshore assets, the proved reserves are always limited to proved well locations scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry standards and are governed by

the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission (SEC) regulations S-K and S-X,

and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have

been based on a 12-month average product price and on existing economic conditions and operating methods as required, and

recovery of the estimated quantities have a high degree of certainty (at least a 90% probability). An independent third party has

evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates.

Estimation uncertainty; Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of asset retirement obligations, as a consequence

of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets, possibly affecting impairment

testing and the recognition of deferred tax assets. Expected oil and gas reserves are the estimated remaining, commercially

recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in operation or decided for

development. As per Equinor’s internal guidelines, expected reserves are defined as the ‘forward looking mean reserves’ when based

on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which case the expected reserves

are the deterministic base case or best estimate. Expected reserves are therefore typically larger than proved reserves as defined by

the SEC, which are high confidence estimates with at least a 90% probability of recovery when a probabilistic approach is used.

Expected oil and gas reserves have been estimated by internal qualified professionals based on industry standards and classified in

accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate.

-----------------------------------------------------------------------------------------------------------------------------

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 196

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

4)

Total

Cost at 1 January 2023

1,343

171,948

8,285

562

10,815

6,633

199,586

Additions through business acquisition

7)

48

1,121

339

38

370

8

1,923

Additions and transfers

6)

113

7,286

60

19

3,196

1,087

11,761

Changes in asset retirement obligations

0

772

0

0

55

0

827

Disposals at cost

(64)

(3,567)

(446)

(29)

(30)

(634)

(4,771)

Assets reclassified to held for sale

8)

(1)

(3,944)

0

0

(245)

(8)

(4,198)

Foreign currency translation effects

0

(2,705)

(133)

1

(64)

(36)

(2,937)

Cost at 31 December 2023

1,438

170,911

8,105

591

14,097

7,050

202,191

Accumulated depreciation and impairment at

1 January 2023

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Depreciation

(44)

(7,976)

(224)

(26)

0

(1,079)

(9,350)

Impairment

(2)

(844)

(323)

0

(18)

(1)

(1,188)

Reversal of impairment

0

288

0

0

3

0

290

Transfers

6)

1

(11)

0

(1)

10

0

(2)

Accumulated depreciation and impairment

on disposed assets

52

3,355

442

28

22

634

4,533

Accumulated depreciation and impairment

assets classified as held for sale

8)

1

3,176

0

0

0

6

3,183

Foreign currency translation effects

7

2,142

88

0

3

10

2,251

Accumulated depreciation and impairment at

31 December 2023

5)

(1,188)

(131,325)

(6,780)

(337)

(117)

(3,623)

(143,369)

Carrying amount at 31 December 2023

250

39,585

1,325

254

13,980

3,427

58,822

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 30

 10 - 33

2)

 1 - 20

3)

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 197

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2022

1,335

183,358

8,481

596

12,614

5,850

212,234

Additions and transfers

6)

52

9,390

378

6

(813)

1,319

10,332

Changes in asset retirement obligations

0

(4,756)

0

0

(48)

0

(4,805)

Disposals at cost

(9)

(3,487)

2

(20)

(5)

(347)

(3,865)

Foreign currency translation effects

(36)

(12,557)

(576)

(19)

(934)

(188)

(14,310)

Cost at 31 December 2022

1,343

171,948

8,285

562

10,815

6,633

199,586

Accumulated depreciation and impairment

at 1 January 2022

(1,188)

(137,763)

(7,926)

(320)

(344)

(2,619)

(150,159)

Depreciation

(52)

(7,643)

(160)

(33)

0

(969)

(8,856)

Impairment

(8)

(187)

(39)

0

(49)

(4)

(286)

Reversal of impairment

4

2,585

802

0

207

0

3,599

Transfers

6)

(2)

(20)

2

0

20

(8)

(8)

Accumulated depreciation and impairment

on disposed assets

8

2,002

(4)

5

0

347

2,359

Foreign currency translation effects

34

9,571

562

9

30

59

10,264

Accumulated depreciation and impairment

at 31 December 2022

5)

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Carrying amount at 31 December 2022

140

40,493

1,522

224

10,679

3,439

56,498

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 20

 10 - 33

2)

 1 - 20

3)

1)

 Depreciation according to unit of production method.

2)

 Land is not depreciated

.

Buildings include leasehold improvements.

3)

 Depreciation linearly over contract period.

4)

 Right of use assets at 31 December 2023 mainly consist of Land and buildings USD 1,038 million, Vessels USD 1,578 million

and Drilling rigs USD 504 million.

5)

 See note 14 Impairments.

6)

 The carrying amount of assets transferred to Property plant and equipment from Intangible assets

in 2023 and 2022 amounted to

USD 1,280 million and USD 982 million, respectively.

7)

 For additions through business acquisition, see note 6 Acquisitions and disposals.

8)

 For assets reclassified to held for sale, see note 6 Acquisitions and disposals.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 198

13 Intangible assets

Accounting policies

Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible assets include acquisition cost for oil

and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas resources, goodwill, and other intangible

assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil and natural gas resources are not

amortised. When the decision to develop a particular area is made, related intangible exploration and evaluation assets are

reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or group of units, expected to benefit

from the combination’s synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment. In

acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred tax is reflected in the accounts

based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to

such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group of CGUs on whose tax depreciation basis

the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line method.

Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to acquire mineral interests

in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells and evaluation expenditures

are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas prospects. Geological and

geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangible assets during the

evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the

evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons, the previously capitalised costs are

evaluated for derecognition or tested for impairment. Any derecognition or impairment is classified as Exploration expenses in the

Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred to Property,

plant and equipment at the time of sanctioning of the development project. The timing from evaluation of a discovery until a project is

sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery,

whether a host government agreement is in place, the complexity of the project and the financial robustness of the project. For

onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for

production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund a portion of the selling

partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected in the Consolidated

financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain or loss

recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying amount of the asset. If the

consideration exceeds the carrying amount of the asset, the excess amount is reflected in the Consolidated statement of income

under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with only immaterial cash considerations

are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether a major capital

expenditure can be justified, will remain capitalised during the evaluation phase for the findings on the exploration wells. Thereafter it

will be considered a trigger for impairment evaluation of the well if no development decision is planned for the near future, and there

moreover are no concrete plans for future drilling in the licence. Judgements as to whether these expenditures should remain

capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the

operating income for the period.

------------------------------------------------------------------------------------------------------------------------------

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 199

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2023

1,599

2,035

1,380

528

5,542

Additions through business acquisition

0

5

348

446

799

Additions

410

360

9

210

989

Disposals at cost

0

0

(10)

(124)

(135)

Transfers

(961)

(319)

4

(4)

(1,280)

Expensed exploration expenditures previously capitalised

114

(61)

0

0

53

Foreign currency translation effects

7

16

2

16

41

Cost at 31 December 2023

1,169

2,036

1,733

1,072

6,010

Accumulated amortisation and impairment at 31 December 2023

1)

(302)

(302)

Carrying amount at 31 December 2023

1,169

2,036

 1,733

2)

770

5,709

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2022

1,958

2,670

1,467

722

6,816

Additions

227

4

36

57

324

Disposals at cost

(10)

(50)

0

1

(58)

Transfers

(227)

(516)

0

(239)

(982)

Expensed exploration expenditures previously capitalised

(283)

(59)

0

0

(342)

Impairment of goodwill

0

0

(3)

0

(3)

Foreign currency translation effects

(65)

(14)

(121)

(13)

(213)

Cost at 31 December 2022

1,599

2,035

1,380

528

5,542

Accumulated amortisation and impairment at 31 December 2022

1)

(384)

(384)

Carrying amount at 31 December 2022

1,599

2,035

1,380

144

5,158

1) See note 14 Impairments.

2) Goodwill at 31 December 2023 mainly consists of technical goodwill related to business acquisitions in 2019, of which USD 533

million in the Exploration & Production Norway area and USD 440 million in the Marketing Midstream & Processing area.

The table below shows the aging of capitalised exploration expenditures.

(in USD million)

2023

2022

Less than one year

345

250

Between one and five years

458

340

More than five years

366

1,009

Total capitalised exploration expenditures

1,169

1,599

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 200

The table below shows the components of the exploration expenses.

Full year

(in USD million)

2023

2022

2021

Exploration expenditures

1,275

1,087

1,027

Expensed exploration expenditures previously capitalised

(53)

342

171

Capitalised exploration

(427)

(224)

(194)

Exploration expenses

795

1,205

1,004

14 Impairments

Accounting policies

Impairment of property, plant and equipment, right-of-use assets, intangible assets including goodwill and equity accounted

investments

Equinor assesses individual assets or groups of assets for impairment whenever events or changes in circumstances indicate that the

carrying value may not be recoverable. Assets are grouped into cash generating units (CGUs). Normally, separate CGUs are

individual oil and gas fields or plants, or equity accounted investments. Each unconventional asset play is considered a single CGU

when no cash inflows from parts of the play can be reliably identified as being largely independent of the cash inflows from other parts

of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the

recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the

asset or CGU to which the unproved properties belong may exceed its recoverable amount, and at least once a year. Exploratory

wells that have found reserves, but where classification of those reserves as proved depends on whether major capital expenditure

can be justified or where the economic viability of that major capital expenditure depends on the successful completion of further

exploration work, will remain capitalised during the evaluation phase for the exploratory finds. If, following evaluation, an exploratory

well has not found proved reserves, the previously capitalised costs are tested for impairment. After the initial evaluation phase for a

well, it will be considered a trigger for impairment testing of a well if no development decision is planned for the near future and there

is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value

may be impaired. Impairment is determined by assessing the recoverable amount of the CGU, or group of units, to which the goodwill

relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred tax provision in a post-

tax transaction on the NCS, the remaining amount of the deferred tax provision will factor into the impairment valuation. 

Impairment and reversals of impairment are presented in the Consolidated statement of income as Exploration expenses or

Depreciation, amortisation and net impairment, on the basis of the nature of the impaired assets as either exploration assets

(intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets),

respectively.

Measurement

The recoverable amount applied in Equinor’s impairment assessments is normally estimated value in use. Equinor may also apply the

assets’ fair value less cost of disposal as the recoverable amount when such a value is available, reasonably reliable, and based on a

recent and comparable transactions.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and

supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the

remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions and economic conditions

in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs

with an expected useful life or timeline for production of expected oil and natural gas reserves extending beyond five years, including

planned onshore production from shale assets with a long development and production horizon, the forecasts reflect expected

production volumes, and the related cash flows include project or asset specific estimates reflecting the relevant period. Such

estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted using a real post-tax discount rate

which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a

monetary adjustment to the projects’ cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 201

adjusted for risk that influences the expected cash flow of a project and which is not part of the project itself. The use of post-tax

discount rates in determining value in use does not result in a materially different determination of the need for, or the amount of,

impairment that would be required if pre-tax discount rates had been used.

Impairment reversals

A previously recognised impairment is reversed only if there has been a change in the estimates used to determine the asset’s

recoverable amount since the last impairment was recognised. Previously recognised impairments of goodwill are not reversed in

future periods.

Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a high degree of judgement and may to a

large extent depend upon the selection of key assumptions about the future. In Equinor's line of business, judgement is involved in

determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product pricing, management

actions and other factors may over time lead to changes in CGUs such as splitting one original CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic factors such as future

commodity prices and discount rates, and uncertainty in asset specific factors such as reserve estimates and operational decisions

impacting the production profile or activity levels. Changes in foreign currency exchange rates will also affect value in use, especially

for assets on the NCS, where the functional currency is NOK. When estimating the recoverable amount, the expected cash flow

approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used in the estimated future cash flows.

For example, climate-related matters (see also Note 3

Climate change and energy transition

) are expected to have a pervasive effect on

the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-

related levies, and other matters with mainly mid-term and long-term effects. These effects have been factored into the price

assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor’s, market participants’ and other external sources’ assumptions about the future

and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires

long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, foreign

currency exchange rates and future output, discount rates, impact of the timing of tax incentive regulations, and political and country

risk among others. Long-term assumptions for major economic factors are made at a group level, and there is a high degree of

reasoned judgement involved in establishing these assumptions, in determining other relevant factors such as forward price curves, in

estimating production outputs, and in determining the ultimate terminal value of an asset.

------------------------------------------------------------------------------------------------------------------------------

Net impairments/(reversal of impairments)

Full year

(in USD million)

2023

2022

2021

Property, plant and equipment

897

(3,313)

1,285

Intangible assets

61

62

154

Equity accounted investments

363

832

0

Total net impairments/(reversals) including exploration expenses

1,321

(2,419)

1,439

1)

 The intangible assets line includes Goodwill, amortizable intangible assets, and certain acquisition costs related to oil and

gas prospects.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 202

For impairment purposes, the asset’s carrying amount is compared to its recoverable amount. The table below describes, per area,

the Producing and development assets being impaired/(reversed), net impairment/(reversal), and the carrying amount after

impairment.

At 31 December 2023

At 31 December 2022

At 31 December 2021

(in USD million)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Exploration & Production Norway

887

588

3,201

(819)

5,379

(1,102)

Exploration & Production USA - onshore

0

0

546

(204)

1,979

48

Exploration & Production USA - offshore Gulf of Mexico

1,165

(290)

2,691

(882)

798

18

Europe and Asia

0

310

1,551

295

1,566

1,609

Marketing, Midstream & Processing

949

343

1,416

(895)

868

716

Renewables USA - offshore

134

300

0

0

0

0

Other

112

10

30

0

20

(7)

Total

3,247

1,261

9,435

(2,505)

10,611

1,282

Exploration & Production Norway

In 2023, the net impairment mainly relates to reduced expected reserves on a producing asset on the Norwegian Continental Shelf.

2022, the net impairment reversal was mainly caused by increased price estimates and changed gas export strategy. In 2021, the net

impairment reversal was mainly due to increased price estimates and an upward reserve revision.

Exploration & Production USA - onshore

In 2023, there were no impairments related to exploration and production assets USA – onshore. In 2022, the impairment reversal

was caused by increased gas price assumptions, while in 2021 the net impairment was caused by revision of reserves and sale of an

asset.

Exploration & Production USA - offshore Gulf of Mexico

In 2023, impairment reversals mainly relate to increased expected reserves on a producing asset. In 2022, the impairment reversal

was caused by increased price assumptions and higher reserves estimates, while in 2021, the impairment was due to a negative

reserve revision.

Exploration & Production International – Europe and Asia

In 2023, the impairment relates to the held for sale reclassification of Azerbaijan assets at the end of the year (see note 6 Acquisitions

and disposals). In 2022, the net impairment was mainly caused by the decision to exit Russia. This was to a large extent offset by a

reversal on Mariner in the UK mainly due to optimisation of the production profile and higher prices, supported by a slight increase in

reserves estimates. In 2021, the net impairment was mainly caused by downward reserve revisions partially offset by higher prices.

Marketing, Midstream & Processing

In 2023, net impairment mainly relates to expectations of stabilizing refinery margins at a lower level than the margins consumed in

recent periods. In 2022 the net impairment reversal was mainly related to increased refinery margin assumptions, while in 2021, the

impairment losses were caused by increased CO

2

 fees and – quotas on a refinery and a classification to held for sale.

Renewables USA – Offshore

In 2023, Equinor’s offshore wind projects on the US North East Coast are facing increased costs due to inflation and supply chain

constraints. On 12 October 2023, the New York State Public Service Commission (PSC) rejected price increase petitions related to

offtake agreements from several offshore and onshore wind farm developers, including Equinor’s joint ventures. As a consequence,

an impairment of USD 300 million has been recognised. The recoverable amount of Equinor’s investments in the offshore wind

projects on the US North East Coast has been established applying a fair value approach. These investments are accounted for using

the equity method.

Accounting assumptions

There are inherent uncertainties in the assumptions, however the commodity price assumptions as well as currency assumptions

reflect management’s best estimate of the price and currency development over the life of the Group’s assets based on its view of

relevant current circumstances and the likely future development of such circumstances, including energy demand development,

energy and climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks,

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 203

technology and cost development and other factors. Management’s best estimate also takes into consideration a range of external

forecasts.

Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and

exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon

economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions

with effect from the second quarter of 2023. The main price assumptions applied in impairment and impairment reversal assessments

are disclosed in the table below as price-points on price curves. Previous price-points applied from the third quarter of 2022 and up to

and including the first quarter of 2023 are provided in brackets.

Year

Prices in real term 1)

2025

2030

2040

2050

Brent Blend (USD/bbl)

79

(78)

78

(78)

73

(73)

68

(68)

European gas (USD/MMBtu) - TTF 

15.5

20.9

9.1

(9.9)

9.5

(9.4)

9.5

(9.4)

Henry Hub (USD/MMBtu)

3.6

(4.2)

4.3

(3.9)

4.3

(3.9)

4.3

(3.9)

Electricity Germany (EUR/MWh)

106

(122)

78

(74)

71

(60)

71

(60)

EU ETS (EUR/tonne)

90

(84)

105

(84)

128

(111)

150

(137)

1) Basis year 2023. The prices in the table are price-points on price-curves.

Climate considerations are included in the impairment calculations directly by estimating the CO

2

 taxes in the cash flows. Indirectly,

the expected effect of climate change is also included in the estimated commodity prices where supply and demand are considered.

The prices also have effect on the estimated production profiles and economic cut-off of the projects. Furthermore, climate

considerations are a part of the investment decisions following Equinor’s strategy and commitments to the energy transition.

Norway’s Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

2

 tax (the

total of EU ETS + Norwegian CO

2

 tax) in Norway to 2,000 NOK/tonne in 2030 is used for impairment calculations of Norwegian

upstream assets.

To reflect that carbon will have a cost for all our assets the current best estimate is considered to be EU ETS for countries outside EU

where carbon is not already subject to taxation or where Equinor has not established specific estimates.

The long-term NOK currency exchange rates are expected to be unchanged compared to previous long-term assumptions. The

NOK/USD rate from 2026 and onwards is kept at 8.50, the NOK/EUR at 10.00. The USD/GBP rate is kept at 1.35.

The base discount rate applied in value in use calculations is 5.0% real after tax. The discount rate is derived from Equinor’s weighted

average cost of capital. For projects, mainly within the REN segment in periods with fixed low risk income, a lower discount rate will be

considered. A derived pre-tax discount rate is in the range of 24% for E&P Norway, 6% for E&P USA and 7% for MMP depending on

the asset’s characteristics, such as specific tax treatments, cash flow profiles, and economic life. The pre-tax rates for 2022 were 42-

102%, 6-9% and 7% respectively, in addition to 8-9% for E&P International.

Sensitivities

Significant downward adjustments in Equinor's commodity price assumptions would result in impairment losses on certain producing

and development assets, including intangible assets subject to impairment assessment, while an opposite adjustment could lead to

impairment-reversals. Assuming a reasonably possible 30% decline in commodity price forecasts over the assets' lifetime could result

in an illustrative impairment recognition of approximately USD 11 billion before tax effects. See note 3 Climate change and energy

transition for possible effect of using the prices in a 1.5ºC compatible Net Zero Emission by 2050 scenario and the Announced

Pledges.

Similarly, for illustrative purposes, Equinor assessed the sensitivity of the discount rate used in the value in use calculations for

upstream producing assets and certain related intangible assets. It was determined an increase in the discount rate from 5.0% to 6%

real after tax, in isolation, the impairment amount recognised could have a potential impact of USD 2 billion before tax effects.

The illustrative impairment sensitivities above are based on a simplified method, which assumes no changes to other input factors.

However, Equinor notes a price reduction of 30% or those representing Net Zero Emission scenario and Announced Pledges

Scenario would likely impact business plans and other factors used in estimating an asset’s recoverable amount. The correlated

changes reduce the stand-alone impact of the price sensitivities. Changes in such input factors would likely include a reduction in the

cost level in the oil and gas industry and offsetting foreign currency effects, which has historically occurred following significant

changes in commodity prices.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 204

15 Joint arrangements and associates

Accounting policies

Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an activity subject to joint control, i.e.

when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are

classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor considers the nature of

products and markets of the arrangements and whether the substance of the agreements is that the parties involved have rights to

substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have rights to the net

assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues and expenses in joint operations in

accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope of IFRS 11 Joint Arrangements have been

classified as joint operations. A considerable number of Equinor's unincorporated joint exploration and production activities are

conducted through arrangements that are not jointly controlled, either because unanimous consent is not required among all parties

involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through

agreement between more than one combination of involved parties are considered to be outside the scope of IFRS 11, and these

activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all

such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for

financial information related to Equinor’s participation in joint operations within upstream activities.

Joint ventures, in which Equinor has rights to the net assets currently include the majority of Equinor’s investments in the Renewables

(REN) operating and reporting segment. Equinor’s participation in joint arrangements that are joint ventures and investments in

companies in which Equinor has neither control nor joint control but has the ability to exercise significant influence over operating and

financial policies, are classified and accounted for as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost plus post-acquisition changes in

Equinor’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. Equinor also

reflects its share of the investment’s other comprehensive income (OCI) arisen after the acquisition. The part of an equity accounted

investment’s dividend distribution exceeding the entity’s carrying amount in the Consolidated balance sheet is reflected as income

from equity accounted investments in the Consolidated statement of income. Equinor will subsequently only reflect the share of net

profit in the investment that exceeds the dividend already reflected as income.

The Consolidated statement of income reflects Equinor’s share of the results after tax of an equity accounted entity, adjusted to

account for depreciation, amortisation and any impairment of the equity accounted entity’s assets based on their fair values at the

date of acquisition. In case of material differences in accounting policies, adjustments are made in order to bring the accounts of the

equity accounted investment in line with Equinor’s accounting policies. Net income/loss from equity accounted investments is

presented on a separate line as part of Total revenues and other income, as investments in and participation with significant influence

in other companies engaged in energy-related business activities is considered to be part of Equinor’s main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the activity constitutes a business,

are accounted for in accordance with the requirements applicable to business combinations. Please refer to note 6 Acquisitions and

disposals for more details on acquisitions.

Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These costs are allocated on an hours’

incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside

the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are

reimbursed and only Equinor's share of the statement of income and balance sheet items related to Equinor-operated joint operations

and similar arrangements are reflected in the Consolidated statement of income and the Consolidated balance sheet.

-----------------------------------------------------------------------------------------------------------------------------

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 205

Joint ventures and other equity accounted investments

(in USD million)

2023

2022

Net investments at 1 January

2,758

2,686

Net income/(loss) from equity accounted investments

(1)

620

Impairment

1)

(363)

(832)

Acquisitions and increase in capital

926

337

Dividend and other distributions

(286)

(210)

Other comprehensive income/(loss)

(10)

384

Divestments, derecognition and decrease in paid in capital

2)

(517)

(22)

Other

0

(205)

Net investments at 31 December

2,507

2,758

1)

 Mainly related to Renewable offshore wind industry in US, see also note 14 Impairments.

2)

 Mainly related to change in accounting treatment for Bandurria Sur (accounted for by proportionally consolidation from 1

st

 of April

2023).

Equity accounted investments consist of several investments, none above USD 0.5 billion. None of the investments are significant on

an individual basis. Voting rights correspond to ownership share.

16 Financial investments and financial receivables

Non-current financial investments

At 31 December

(in USD million)

2023

2022

Bonds

1,863

1,448

Listed equity securities

1,035

794

Non-listed equity securities

543

491

Financial investments

3,441

2,733

Bonds and equity securities mainly relate to investment portfolios held by Equinor’s captive insurance company and other listed and

non-listed equities held for long-term strategic purposes, mainly accounted for using fair value through profit or loss.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 206

Non-current prepayments and financial receivables

At 31 December

(in USD million)

2023

2022

Interest-bearing financial receivables 

341

1,658

Other interest-bearing receivables

40

66

Prepayments and other non-interest-bearing receivables

910

339

Prepayments and financial receivables

1,291

2,063

Prepayments and other non-interest-bearing receivables mainly relate to commodity sales contracts with customers and lease

prepayments. Interest-bearing financial receivables primarily relate to loans to employees and project financing of equity accounted

companies. Other interest-bearing receivables primarily relate to financial sublease and tax receivables.

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,846

12,373

Interest-bearing securities

11,378

17,504

Financial investments

29,224

29,876

At 31 December 2023, current financial investments

include USD 458 million in investment portfolios held by Equinor’s captive

insurance company which mainly are accounted for using fair value through profit or loss. The corresponding balance at 31 December

2022 was USD 410 million.

For information about financial instruments by category, see note 28

Financial instruments and fair value measurement

.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 207

17 Inventories

Accounting policies

Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable value. Cost is determined by the

first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing expenses.

Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with subsequent changes in fair

value recognised in the Consolidated statement of income as part of Revenues. These inventories are categorised within level 2 of the

fair value hierarchy.

------------------------------------------------------------------------------------------------------------------------------

At 31 December

(in USD million)

2023

2022

Crude oil

2,051

2,115

Petroleum products

380

451

Natural gas

54

127

Commodity inventories at the lower of cost and net realisable value

2,485

2,693

Natural gas held for trading purposes measured at fair value

810

1,994

Other

520

517

Total inventories

3,814

5,205

Inventories held for trading purposes consist of natural gas storages held by Danske Commodities.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 208

18 Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables from contracts with customers

1)

10,706

15,213

Other current receivables

1,774

992

Collateral receivables

2)

2,186

3,468

Receivables from participation in joint operations and similar arrangements

471

661

Receivables from equity accounted associated companies and other related parties

1,056

1,276

Total financial trade and other receivables

16,193

21,611

Non-financial trade and other receivables

740

841

Trade and other receivables

16,933

22,452

1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses.

2) Mainly related to cash paid as security for a portion of Equinor's credit exposure. 

For more information about the credit quality of Equinor's counterparties, see note 4 Financial risk and capital management. For

currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on receivables from

equity accounted associated companies and other related parties, see note 27 Related parties.

19 Cash and cash equivalents

Accounting policies

Cash and cash equivalents are accounted for at amortised cost and include cash in hand, bank deposits, and short-term highly liquid

investments with original maturity of three months or less which are readily convertible to known amounts of cash and subject to

insignificant risk of changes in fair value. Contractually mandatory deposits in escrow bank accounts are included as restricted cash

and cash equivalents if the deposits are provided as part of the Group’s operating activities and therefore are deemed as held for the

purpose of meeting short-term cash commitments, and the deposits can be released from the escrow account without undue

expenses.

At 31 December

(in USD million)

2023

2022

Cash at bank available

2,295

2,220

Time deposits

1,337

836

Money market funds

1,875

3,106

Interest-bearing securities

2,563

3,276

Restricted cash and cash equivalents, including collateral deposits

1,572

6,140

Cash and cash equivalents

9,641

15,579

Restricted cash and cash equivalents at 31 December 2023 includes collateral deposits of USD 1,572 million related to trading

activities. Correspondingly, collateral deposits at 31 December 2022 were USD 6,128 million. Collateral deposits are related to certain

requirements of exchanges where Equinor is trading. The terms and conditions related to these requirements are determined by the

respective exchanges.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 209

20 Shareholders' equity, capital distribution and earnings per share

Number of shares

NOK per value

NOK

USD

Share capital at 1 January 2023

3,175,470,159

2.50

7,938,675,397.50

1,142,036,265

Capital reduction

(172,365,554)

2.50

(430,913,885.00)

(41,519,325)

Share capital at 31 December 2023

3,003,104,605

2.50

7,507,761,512.50

1,100,516,940

Number of shares

NOK per value

Common Stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares

Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Employees share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

Equinor ASA has only one class of shares and all shares have voting rights. The holders of shares are entitled to receive dividends as

and when declared and are entitled to one vote per share at the annual general meeting of the company.

Dividend

During 2023, dividend for the third and for the fourth quarter of 2022 and dividend for the first and second quarter of 2023 were

settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated balance sheet. The Consolidated

statement of changes in equity shows declared dividend in the period (retained earnings). Dividend declared in 2023 relates to the

fourth quarter of 2022 and to the first three quarters of 2023.

On 6 February 2024, the board of directors proposed to the annual general meeting on 14 May 2024 an ordinary cash dividend for the

fourth quarter of 2023 of USD 0.35 per share and an extraordinary cash dividend of USD 0.35 per share. The Equinor share will trade

ex-dividend 15 May 2024 on Oslo Børs and for ADR holders on New York Stock Exchange. Record date will be 16 May 2024 and

payment date will be 28 May 2024.

At 31 December

(in USD million)

2023

2022

Dividends declared

10,783

7,549

USD per share or ADS

3.6000

2.4000

Dividends paid

10,906

5,380

USD per share or ADS

3.6000

1.6800

NOK per share

37.8522

16.4837

-------------------------------------------------------------------------------------------------------------------------------------

Accounting policies

Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme or has placed an irrevocable order with a third

party for Equinor shares to be acquired in the market, such shares are reflected as a reduction in equity as treasury shares. Treasury

shares are not included in the weighted average number of ordinary shares outstanding in the calculation of Earnings per share. The

remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and

provisions.

-------------------------------------------------------------------------------------------------------------------------------------

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 210

Share buy-back programme

The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part

of the programme will be cancelled. According to an agreement between Equinor and the Norwegian State, the Norwegian State will

participate in share buy-backs on a proportionate basis, ensuring that its ownership interest in Equinor remains unchanged at 67%.

On 6 February 2024, the board of directors decided to announce a two-year share buy-back programme for 2024-2025 of USD 10-12

billion in total, with USD 6 billion for 2024. The share buy-back programme will be subject to market outlook and balance sheet

strength.

The first tranche of up to USD 1.2 billion of the 2024 share buy-back programme will commence on 8 February and end no later than

5 April 2024. The first tranche of the 2024 share buy-back programme is based on the authorisation from the annual general meeting

in May 2023, valid until the next annual general meeting, but no later than 30 June 2024. Commencement of new share buy-back

tranches after the first tranche in 2024 will be decided by the board of directors on a quarterly basis in line with the company’s

dividend policy and will be subject to existing and new board authorisations for share buy-back from the company’s annual general

meeting and agreement with the Norwegian State regarding share buy-back.

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Equity impact of share buy-back programmes

(in USD million)

2023

2022

First tranche

330

330

Second tranche

550

440

Third tranche

550

605

Fourth tranche

550

605

Total open market share

1,980

1,980

Norwegian state share

1)

3,705

1,399

Total

5,685

3,380

1) Relates to second to fourth tranche of previous year programme and first tranche of current year programme.

Based on the authorisation from the annual general meeting on 10 May 2023, the Board of directors has, on a quarterly basis,

decided on share buy-back tranches. The 2023 programme was up to USD 6 billion, including shares to be redeemed from the

Norwegian State.

During 2023, four tranches of in total USD 6 billion were launched, including shares to be redeemed from the Norwegian State. The

acquisition of the fourth tranche in the open market was finalised in January 2024. As of 31 December 2023, USD 410 million of the

fourth tranche had been purchased in the open market, of which USD 388 million had been settled. Due to an irrevocable agreement

with a third party, the remaining order of USD 162 million is accrued for and classified as Trade, other payables and provisions.

In order to maintain the Norwegian State’s ownership share in Equinor, a proportionate share of the second, third and fourth tranche

of the 2022 programme as well as the first tranche of the 2023 programme was redeemed and annulled after approval by the annual

general meeting on 10 May 2023. The liability to the Norwegian State of USD 3.705 billion (NOK 39.071 billion) was settled in June

2023.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 211

Employees share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

In 2023 and 2022 treasury shares were purchased to employees participating in the share saving plan for USD 68 million and USD 72

million, respectively. For further information, see note 8 Salaries and personnel expenses.

Earnings per share

(in USD million)

2023

2022

Basic earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding

3,021

3,174

Basic earnings per share (in USD)

3.93

9.06

Diluted earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding, diluted

3,027

3,183

Diluted earnings per share (in USD)

3.93

9.03

Basic and diluted earnings per share amounts are calculated by dividing the Net income (loss) for the year attributable to shareholders

by relevant weighted average number of ordinary shares outstanding during the year. Shares purchased to employees participating in

the share saving plan is the only diluting element. 

21 Finance debt

Non-current finance debt

Finance debt measured at amortised cost

Weighted average interest

rates in %

1)

Carrying amount in USD

millions at 31 December

Fair value in USD 

millions at 31 December

2)

2023

2022

2023

2022

2023

2022

Unsecured bonds

United States Dollar (USD)

3.82

3.82

15,705

17,190

15,037

16,167

Euro (EUR)

1.51

1.42

6,633

7,465

6,177

6,782

Great Britain Pound (GBP)

6.08

6.08

1,747

1,652

2,013

1,836

Norwegian Kroner (NOK)

4.18

4.18

295

304

302

311

Total unsecured bonds

24,380

26,612

23,529

25,097

Unsecured loans

Brazilian real (BRL)

10.10

-

179

-

179

-

Japanese Yen (JPY)

4.30

4.30

71

76

83

90

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 212

Total unsecured loans

250

76

262

90

Total

24,630

26,688

23,791

25,187

Non-current finance debt due within one year

2,400

2,547

2,415

2,597

Non-current finance debt

22,230

24,141

21,376

22,590

1)

 Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December and do

not include the effect of swap agreements.

2)

 Fair values are determined from external calculation models based on market observations from various sources, classified at

level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair

value measurement.

Unsecured bonds amounting to USD 15,705 million are denominated in USD and unsecured bonds denominated in other currencies

amounting to USD 7,848 million are swapped into USD. One bond denominated in EUR amounting to USD 827 million is not

swapped. The table does not include the effects of agreements entered into to swap the various currencies into USD. For further

information see note 28 Financial instruments and fair value measurement.

Substantially all unsecured bonds and unsecured bank loan agreements contain provisions restricting future pledging of assets to

secure borrowings without granting a similar secured status to the existing bondholders and lenders.

No new bonds were issued in 2023.

Out of Equinor's total outstanding unsecured bond portfolio, 34 bond agreements contain provisions allowing Equinor to call the debt

prior to its final redemption at par or at certain specified premiums if there are changes to the Norwegian tax laws. The carrying

amount of these agreements is USD 24,076 million at the 31 December 2023 closing currency exchange rate.

For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk management,

see note 4 Financial risk and capital management. 

Non-current finance debt maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

4,683

4,794

Year 4 and 5

4,511

4,510

After 5 years

13,035

14,837

Total repayment of non-current finance debt

22,230

24,141

Weighted average maturity (years - including current portion)

9

9

Weighted average annual interest rate (% - including current portion)

3.41

3.29

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities

458

1,571

Non-current finance debt due within one year

2,400

2,547

Other including US Commercial paper programme and bank overdraft

3,138

241

Total current finance debt

5,996

4,359

Weighted average interest rate (%)

3.77

2.22

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 213

Collateral liabilities and other current liabilities mainly relate to cash received as security for a portion of Equinor's credit exposure and

outstanding amounts on US Commercial paper (CP) programme. Issuance on the CP programme amounted to USD 1,895 million as

of 

31 December 2023 and USD 227 million as of 31 December 2022.

Reconciliation of cash flows from financing activities to finance line items in balance sheet 

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2023

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Repayment of finance debt

(2,818)

(2,818)

Repayment of lease liabilities

(1,422)

(1,422)

Dividend paid

(10,906)

(10,906)

Share buy-back

(5,589)

(5,589)

Net current finance debt and other

finance activities

1,385

1,287

(69)

(10)

2,593

Net cash flow from financing activities

(2,818)

1,385

1,287

(5,658)

(10)

(10,906)

(1,422)

(18,142)

Transfer to current portion

147

(147)

Effect of exchange rate changes

321

44

(5)

-

(25)

Dividend declared

10,783

Debt in RIO Energy

437

New leases

1,379

Other changes

2

354

(1)

2,617

19

(36)

(29)

Net other changes

907

251

(6)

2,617

19

10,747

1,325

At 31 December 2023

22,230

5,995

(2,185)

-

10

2,649

3,570

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2022

27,404

5,273

(1,577)

6,408

14

582

3,562

Repayment of finance debt

(250)

(250)

Repayment of lease liabilities

(1,366)

(1,366)

Dividend paid

(5,380)

(5,380)

Share buy-back

(3,315)

(3,315)

Net current finance debt and other

finance activities

-

(2,982)

(2,038)

(73)

(8)

(5,102)

Net cash flow from financing activities

(250)

(2,982)

(2,038)

(3,388)

(8)

(5,380)

(1,366)

(15,414)

Transfer to current portion

(2,297)

2,297

Effect of exchange rate changes

(710)

(78)

145

(3)

(149)

Dividend declared

7,549

New leases

1,644

Other changes

(7)

(151)

21

(2)

57

(24)

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 214

Net other changes

(3,014)

2,068

145

21

(5)

7,606

1,471

At 31 December 2022

24,140

4,359

(3,468)

3,041

1

2,808

3,667

1)

 Financial receivable collaterals are included in Trade and other receivables in the Consolidated balance sheet. See note 18

Trade and other receivables for more information.

2)

 Other changes in additional paid in capital have been moved to retained earnings. 

3)

 See note 25 Leases for more information.

22 Pensions

Accounting policies

Equinor has pension plans for employees that either provide a defined pension benefit upon retirement or a pension dependent on

defined contributions and related returns. A portion of the contributions are provided for as notional contributions, for which the liability

increases with a promised notional return, set equal to the actual return of assets invested through the ordinary defined contribution

plan. For defined benefit plans, the benefit to be received by employees generally depends on many factors including length of

service, retirement date and future salary levels.

Equinor's proportionate share of multi-employer defined benefit plans is recognised as liabilities in the Consolidated balance sheet as

sufficient information is considered available, and a reliable estimate of the obligation can be made.

The cost of pension benefit plans is expensed over the period that the employees render services and become eligible to receive

benefits. The calculation is performed by an external actuary. Equinor's net obligation from defined benefit pension plans is calculated

separately for each plan by estimating the amount of future benefit that employees have earned in return for their services in the

current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The recognition of a net surplus for the funded plan is based on the assumption that the net assets represent a future value for

Equinor, either as a possible distribution to premium fund which can be used for future funding of new liabilities, or as disbursement of

equity in the pension fund.

Contributions to defined contribution schemes are recognised in the Consolidated statement of income as pension costs in the period

in which the contribution amounts are earned by the employees.

Notional contribution plans, reported in the parent company Equinor ASA, are recognised as Pension liabilities with the actual value of

the notional contributions and promised return at reporting date. Notional contributions are recognised in the Consolidated statement

of income as periodic pension cost, while changes in fair value of the employees’ notional assets are reflected in the Consolidated

statement of income under Net financial items.

Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor’s operated joint operations (licences)

on an hours’ incurred basis and recognised in the Consolidated statement of income based on the function of the cost.

------------------------------------------------------------------------------------------------------------------------------------

Pension plans in Equinor

The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans which includes certain

unfunded elements (notional contribution plans). In addition, several employees and former employees of the Equinor Group is a

member of certain defined benefit plans. The benefit plan in Equinor ASA was closed in 2015 for new employees and for employees

with more than 15 years to regular retirement age. Equinor's defined benefit plans are generally based on a minimum of 30 years of

service and 66% of the final salary level, including an assumed benefit from the Norwegian National Insurance Scheme. The

Norwegian companies in the group are subject to, and complies with, the requirements of the Norwegian Mandatory Company

Pensions Act.

The defined benefit plans in Norway are managed and financed through Equinor Pensjon (Equinor's pension fund - hereafter Equinor

Pension). Equinor Pension is an independent pension fund that covers the employees in Equinor's Norwegian companies. The

pension fund's assets are kept separate from the company's and group companies' assets. Equinor Pension is supervised by the

Financial Supervisory Authority of Norway ("Finanstilsynet") and is licenced to operate as a pension fund.

Equinor has more than one defined benefit plan, but the disclosure is made in total since the plans are not subject to materially

different risks. Pension plans outside Norway are not material and as such not disclosed separately. In this note pension costs are

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 215

presented on a gross basis before allocation to licence partners. In the Consolidated statement of income, the pension costs in

Equinor ASA are presented net of costs allocated to licence partners.

Equinor is also a member of a Norwegian national agreement-based early retirement plan (“AFP”), and the premium is calculated

based on the employees' income but limited to 7.1 times the basic amount in the National Insurance scheme (7.1 G). The premium is

payable for all employees until age 62. Pension from the AFP scheme will be paid from the AFP plan administrator to employees for

their full lifetime.

Net pension cost

Total pension costs amount to USD 441 million in 2023, USD 458 million in 2022 and USD 488 million in 2021. In addition, interest

cost and interest income related to defined benefit plans are included in the Consolidated statement of income within Net financial

items.

Changes in pension liabilities and plan assets during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,664

9,358

Current service cost

145

183

Interest cost

318

105

Actuarial (gains)/losses and currency effects

338

(1,785)

Changes in notional contribution liability and other effects

56

67

Benefits paid

(284)

(258)

Losses/(gains) from curtailment, settlement or plan amendment

91

(5)

Pension liabilities at 31 December

8,328

7,664

Fair value of plan assets at 1 January

5,213

6,404

Interest income

190

116

Return on plan assets (excluding interest income)

202

(622)

Company contributions

211

104

Benefits paid

(141)

(121)

Losses (gains) from curtailment, settlement or plan amendment

113

(5)

Other effects

-

6

Foreign currency translation effects

(124)

(669)

Fair value of plan assets at 31 December

5,664

5,213

Net pension liability at 31 December

2,665

2,452

Represented by:

Asset recognised as non-current pension assets (funded plan)

1,260

1,219

Liability recognised as non-current pension liabilities (unfunded plans)

3,925

3,671

Pension liabilities specified by funded and unfunded pension plans

8,328

7,664

Funded

4,404

3,994

Unfunded

3,925

3,670

Equinor recognised an actuarial loss from changes in financial assumptions in 2023. No changes in interest rate compared to year

end 2022, but other assumptions increased with 50 basis points. An actuarial gain was recognised in 2022.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 216

Actuarial assumptions

Assumptions used to determine

benefit obligations in %

Rounded to the nearest quartile

2023

2022

Discount rate

3.75

3.75

Rate of compensation increase

4.00

3.50

Expected rate of pension increase

3.25

2.75

Expected increase of social security base amount (G-amount)

3.75

3.25

Weighted-average duration of the defined benefit obligation

13.25

13.50

The assumptions presented are for the Norwegian companies in Equinor which are members of Equinor's pension fund. The defined

benefit plans of other subsidiaries are immaterial to the consolidated pension assets and liabilities.

Sensitivity analysis

The table below presents an estimate of the potential effects of changes in discount rate and expected rate of pension increase for the

defined benefit plans. The following estimates are based on facts and circumstances as of 31 December 2023.

Discount rate

Expected rate of

pension increase

(in USD million)

0.50%

-0.50%

0.50%

-0.50%

Effect on:

Defined benefit obligation at 31 December 2023

(521)

587

494

(451)

The sensitivity of the financial results to each of the key assumptions has been estimated based on the assumption that all other

factors would remain unchanged. The estimated effects on the financial result would differ from those that would actually appear in the

Consolidated financial statements because the Consolidated financial statements would also reflect the relationship between these

assumptions.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 217

Pension assets

The plan assets related to the defined benefit plans were measured at fair value. Equinor Pension invests in both financial assets and

real estate.

The table below presents the portfolio weighting as approved by the board of Equinor Pension for 2023. The portfolio weight during a

year will depend on the risk capacity.

Target portfolio

weight

(in %)

2023

2022

Equity securities

33.6

32.9

 30-38

Interest bearing investments

61.7

60.5

 52-65

Real estate

4.7

6.6

 5-10

Total

100.0

100.0

In 2023, 100% of the equity securities and 13% of bonds had quoted market prices in an active market. 87% of bonds and 100% of

money market instruments had market prices based on inputs other than quoted prices. If quoted market prices are not available, fair

values are determined from external calculation models based on market observations from various sources.

In 2022, 44% of the equity securities and 3% of bonds had quoted market prices in an active market. 54% of the equity securities,

97% of bonds and 100% of money market instruments had market prices based on inputs other than quoted prices.

For definition of the various levels, see note 28 Financial instruments and fair value measurement.

Estimated company contributions to be made to Equinor Pension in 2024 is approximately USD 109 million.

23 Provisions and other liabilities

Accounting policies

Asset retirement obligations (ARO)

Provisions for asset retirement obligations (ARO) are recognised when Equinor has an obligation (legal or constructive) to dismantle

and remove a facility or an item of property, plant and equipment and to restore the site on which it is located, and when a reliable

estimate of that liability can be made. Normally an obligation arises for a new facility, such as an oil and natural gas production or

transportation facility, upon construction or installation. An obligation may also arise during the period of operation of a facility through

a change in legislation or through a decision to terminate operations or be based on commitments associated with Equinor's ongoing

use of pipeline transport systems where removal obligations rest with the volume shippers.

The amount recognised is the present value of the estimated future expenditures determined in accordance with local conditions and

requirements. The cost is estimated based on current regulations and technology, considering relevant risks and uncertainties. The

discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of

the underlying cash flows. The provisions are classified under Provisions in the Consolidated balance sheet.

When a provision for ARO is recognised, a corresponding amount is recognised as an increase of the related asset within property,

plant and equipment and is subsequently depreciated over the useful life of the asset. Any change in the present value of the

estimated expenditure is reflected as an adjustment to the provision and the corresponding adjustment to the carrying value of the

property, plant and equipment. When a decrease in the ARO related to a producing asset exceeds the carrying amount of the asset,

the excess is recognised as a reduction of Depreciation, amortisation and net impairment in the Consolidated statement of income.

When an asset has reached the end of its useful life, all subsequent changes to the ARO are recognised as they occur in Operating

expenses in the Consolidated statement of income.

Removal provisions associated with Equinor's role as shipper of volumes through third party transport systems are expensed as

incurred.

Estimation uncertainty regarding asset retirement obligations

Establishing the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing

technological developments, expectations about future regulatory and technological development and involve the application of

judgement and an inherent risk of significant adjustments. The costs of decommissioning and removal activities require revisions due

to changes in current regulations and technology while considering relevant risks and uncertainties. Most of the removal activities are

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 218

many years into the future, and the removal technology and costs are constantly changing. The speed of the transition to renewable

energy sources may also influence the production period, hence the timing of the removal activities. The estimates include

assumptions of norms, rates and time required which can vary considerably depending on the assumed removal complexity.

Moreover, changes in the discount rate and foreign currency exchange rates may impact the estimates significantly. As a result, the

initial recognition of ARO and subsequent adjustments involve the application of significant judgement.

---------------------------------------------------------------------------------------------------------------------------------

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

Non-current portion at 31 December 2022

11,569

4,064

15,633

Current portion at 31 December 2022 reported as Trade, other payables and

provisions

165

494

659

Provisions and other liabilities at 31 December 2022

11,734

4,558

16,292

New or increased provisions and other liabilities

488

443

931

Change in estimates

845

25

870

Amounts charged against provisions and other liabilities

(126)

(301)

(427)

Effects of change in the discount rate

(276)

13

(263)

Reduction due to divestments

(403)

97

(306)

Accretion expenses

462

76

538

Reclassification, transfer and other

(174)

(1,387)

(1,561)

Foreign currency translation effects

(190)

62

(128)

Provisions and other liabilities at 31 December 2023

12,360

3,586

15,946

Non-current portion at 31 December 2023

12,171

3,133

15,304

Current portion at 31 December 2023 reported as Trade, other payables and

provisions

190

452

642

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 219

Equinor's estimated asset retirement obligations (ARO) have increased by USD 626 million to USD 12,360 million at 31 December

2023 compared to year-end 2022. Changes in ARO are reflected within Property, plant and equipment and Provisions and other

liabilities in the Consolidated balance sheet.

In certain production sharing agreements (PSA), Equinor’s estimated share of asset retirement obligation (ARO) is paid into an escrow

account over the producing life of the field. These payments are considered down-payments of the liabilities and included in the line

item Amounts charged against provisions and other liabilities.

Claims and litigations mainly relate to expected payments for unresolved claims. The timing and amounts of potential settlements in

respect of these claims are uncertain and dependent on various factors that are outside management's control. For further information

on provisions and contingent liabilities, see note 26 Other commitments, contingent liabilities and contingent assets. 

The timing of cash outflows of asset retirement obligations depends on the expected cease of production at the various facilities.

Line item Reclassification, transfer and other includes USD 1,388 million related to SDFI liability. See note 27 Related parties for

further details.

Sensitivities with regards to discount rate on the total ARO portfolio

The discount rate sensitivity has been calculated by assuming a reasonably possible change of 1.3 percentage points.

An increase in the discount rate of 1.3 percentage points would reduce the ARO liability by USD 1,994 million. A corresponding

reduction would increase the liability by USD 2,507 million. See note 3 Climate change and energy transition for sensitivity with

regards to change in the removal year.

Expected timing of cash outflows

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

2024 - 2028

1,512

2,580

4,092

2029 - 2033

997

342

1,339

2034 - 2038

2,605

134

2,739

2039 - 2043

4,610

(42)

4,568

Thereafter

2,636

572

3,208

At 31 December 2023

12,360

3,586

15,946

24 Trade, other payables and provisions

At 31 December

(in USD million)

2023

2022

Trade payables

5,317

6,207

Non-trade payables and accrued expenses

2,210

2,688

Payables due to participation in joint operations and similar arrangements

2,283

2,074

Payables to equity accounted associated companies and other related parties

1,242

1,479

Total financial trade and other payables

11,052

12,449

Current portion of provisions and other non-financial payables

819

903

Trade, other payables and provisions

11,870

13,352

Included in Current portion of provisions and other non-financial payables are certain provisions that are further described in note 23

Provisions and other liabilities and in note 26 Other commitments, contingent liabilities and contingent assets. For information

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 220

regarding currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on payables to

equity accounted associated companies and other related parties, see note 27 Related parties.

25 Leases

Accounting policies

Leases

A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for

consideration. At the date at which the underlying asset is made available for Equinor, the present value of future lease payments

(including extension options considered reasonably certain to be exercised) is recognised as a lease liability. The present value is

calculated using Equinor’s incremental borrowing rate. A corresponding right-of-use (RoU) asset is recognised, including lease

payments and direct costs incurred at the commencement date. Lease payments are reflected as interest expense and a reduction of

lease liabilities. The RoU assets are depreciated over the shorter of each contract’s term and the assets’ useful life.

Short term leases (12 months or less) and leases of low value assets are expensed or (if appropriate) capitalised as incurred,

depending on the activity in which the leased asset is used.

Many of Equinor’s lease contracts, such as rig and vessel leases, involve several additional services and components, including

personnel cost, maintenance, drilling related activities, and other items. For a number of these contracts, the additional services

represent a not inconsiderable portion of the total contract value. Non-lease components within lease contracts are accounted for

separately for all underlying classes of assets and reflected in the relevant expense category or (if appropriate) capitalised as

incurred, depending on the activity involved.

Accounting judgement regarding leases

In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar arrangements, the application

of IFRS 16 Leases requires evaluations of whether the joint arrangement or its operator is the lessee in each lease agreement and

consequently whether such contracts should be reflected gross (100%) in the operator’s financial statements, or according to each

joint operation partner’s proportionate share of the lease.

In many cases where an operator is the sole signatory to a lease contract of an asset to be used in the activities of a specific joint

operation, the operator does so implicitly or explicitly on behalf of the joint arrangement. In certain jurisdictions, and importantly for

Equinor as this includes the Norwegian continental shelf (NCS), the concessions granted by the authorities establish both a right and

an obligation for the operator to enter into necessary agreements in the name of the joint operations (licences).

As is the customary norm in upstream activities operated through joint arrangements, the operator will manage the lease, pay the

lessor, and subsequently re-bill the partners for their share of the lease costs. In each such instance, it is necessary to determine

whether the operator is the sole lessee in the external lease arrangement, and if so, whether the billings to partners may represent

sub-leases, or whether it is in fact the joint arrangement which is the lessee, with each participant accounting for its proportionate

share of the lease. Where all partners in a licence are considered to share the primary responsibility for lease payments under a

contract, Equinor’s proportionate share of the related lease liability and RoU asset will be recognised net by Equinor. When Equinor is

considered to have the primary responsibility for the full external lease payments, the lease liability is recognised gross (100%).

--------------------------------------------------------------------------------------------------------------------------------

Equinor leases certain assets, notably drilling rigs, transportation vessels, storages and office facilities for operational activities.

Equinor is mostly a lessee, and the use of leases serves operational purposes rather than as a tool for financing.

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

95

Lease repayments 

(1,452)

(1,452)

(1,389)

(1,389)

Foreign currency translation effects

(25)

(149)

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 221

Lease liabilities at 31 December

3,569

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

Equinor recognised revenues of USD 337 million in 2023 and USD 319 million in 2022 related to lease costs recovered from licence

partners related to lease contracts being recognised gross by Equinor.

Commitments relating to lease contracts which had not yet commenced at year-end are included within Other commitments in note 

26 Other commitments, contingent liabilities and contingent assets.

A maturity profile based on undiscounted contractual cash flows for lease liabilities is disclosed in note 4 Financial risk and capital

management.

Non-current lease liabilities maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

1,342

1,360

Year 4 and 5

470

483

After 5 years

478

566

Total repayment of non-current lease liabilities

2,291

2,409

The Right of use assets are included within the line item Property, plant and equipment in the Consolidated balance sheet. See also

note 12 Property, plant and equipment.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 222

26 Other commitments, contingent liabilities and contingent assets

Accounting policies

Estimation uncertainty regarding levies

Equinor’s global business activities are subject to taxation on income and indirect taxes in various jurisdictions around the

world. In these jurisdictions, governments can respond to global or local development, including climate related matters and

public fiscal balances, by issuing new laws or other regulations stipulating changes in income tax, value added tax, tax on

emissions, customs duties or other levies which may affect profitability and even the viability of Equinor’s business in that

jurisdiction. Equinor mitigates this risk by using local legal representatives and staying up to date with the legislation in the

jurisdictions where activities are carried out. Occasionally, legal disputes arise from difference in interpretations. Equinor’s

legal department, together with local legal representatives, estimate the outcome from such legal disputes based on first-hand

knowledge. Such estimates may differ from the actual results.

--------------------------------------------------------------------------------------------------------------------------------

Contractual commitments

Equinor had contractual commitments of USD 11,259 million as of 31 December 2023. The contractual commitments reflect Equinor's

proportional share and mainly comprise construction and acquisition of property, plant and equipment as well as committed

investments/funding or resources in equity accounted entities. It also includes Equinors’ estimated expenditures related to

commitments to drill a certain number of wells, commitments which sometimes can be a prerequisite to be awarded oil and gas

exploration and production licences.

At the end of 2023, Equinor was committed to participate in 34 wells, with an average ownership interest of approximately 46%.

Equinor's share of estimated expenditures to drill these wells amounts to USD 609 million. Additional wells that Equinor may become

committed to participating in depending on future discoveries in certain licences are not included in these numbers.

Other long-term commitments

Equinor has entered into various long-term agreements for pipeline transportation as well as terminal use, processing, storage and

entry/exit capacity commitments and commitments related to specific purchase agreements. The agreements ensure the rights to the

capacity or volumes in question, but also impose on Equinor the obligation to pay for the agreed-upon service or commodity,

irrespective of actual use. The contracts' terms vary, with durations of up to 2060.

Take-or-pay contracts for the purchase of commodity quantities are only included in the table below if their contractually agreed

pricing is of a nature that will or may deviate from the obtainable market prices for the commodity at the time of delivery.

Obligations payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below

with Equinor’s full proportionate share. For assets (such as pipelines) that are included in the Equinor accounts through joint

operations or similar arrangements, and where consequently Equinor’s share of assets, liabilities, income and expenses (capacity

costs) are reflected on a line-by-line basis in the Consolidated financial statements, the amounts in the table include the net

commitment payable by Equinor (i.e. Equinor’s proportionate share of the commitment less Equinor's ownership share in the

applicable entity).

The table below also includes USD 3,600 million as the non-lease components of lease agreements reflected in the accounts

according to IFRS 16, as well as leases not yet commenced. For commenced leases, please refer to note 25 Leases.

Nominal minimum other long-term commitments at 31 December 2023:

(in USD million)

2024

2,659

2025

1,972

2026

1,615

2027

1,187

2028

1,010

Thereafter

6,775

Total other long-term commitments

15,218

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 223

Guarantees

Equinor has guaranteed for its proportionate share of some of our associates’ long-term bank debt, payment obligations under

contracts, and certain third-party obligations. The total amount guaranteed at year-end 2023 is USD 1,564 million. The book value of

the guarantees is immaterial.

Contingent liabilities and contingent assets

Claim from Petrofac regarding multiple variation order requests performed in Algeria (In Salah)

Petrofac International (UAE) LLC (“PIUL”) was awarded the EPC Contract to execute the ISSF Project (the In Salah Southern Fields

Project in central Algeria). Following a suspension of activity in 2013, PIUL issued multiple Variation Order Requests (“VoRs”) related

to the costs incurred for stand-by and remobilization costs. Several VoRs have been paid, but the settlement of the remaining has

been unsuccessful. PIUL initiated arbitration in August 2020 claiming an estimated amount of USD 533 million, of which Equinor holds

a 31.85% share. Equinor's maximum exposure amounts to USD 163 million. Equinor has provided for its best estimate in the matter.

Withholding tax dispute regarding remittances from Brazil to Norway

Remittances made from Brazil for services are normally subject to withholding income tax. In 2012, Equinor’s subsidiaries in Brazil

filed a lawsuit to avoid paying this tax on remittances made to Equinor ASA and Equinor Energy AS under the Double Tax Treaty

Brazil has with Norway. The lawsuit relates to services without transfer of technology on fields where Equinor is a partner. Court

proceedings through several levels in the legal system have been ongoing, and a final verdict has not yet been reached. Withholding

tax has not been paid since 2014. Equinor's share of maximum exposure in the case at year end 2023 is estimated at approximately

USD 159 million. Although Equinor continues to be of the view that all applicable tax regulations have been applied in the case, recent

developments in similar litigation in Brazil have led to an updated evaluation of the likelihood of loss, and Equinor has provided for the

best estimate in the case as income tax expense.

Suit for an annulment of Petrobras’ sale of the interest in BM-S-8 to Equinor

In March 2017, an individual connected to the Union of Oil Workers of Sergipe (Sindipetro) filed a class action suit against Petrobras,

Equinor, and ANP - the Brazilian Regulatory Agency - to seek annulment of Petrobras’ sale of the interest and operatorship in BM-S-8

to Equinor, which was closed in November 2016 after approval by the partners and authorities. In February 2022, sentence in the

annulment case was issued at the first instance level, and Equinor won on all merits. The case was appealed by the plaintiff and

Equinor has filed counter arguments. At the end of 2023, the acquired interest remains on Equinor’s balance sheet, where the assets

related to phase 1 have been reclassified to property, plant and equipment and the assets related to phase 2 are presented as

intangible assets, all of which are part of the Exploration & Production International (E&P International) segment.

Brazilian law creating uncertainty regarding certain tax incentives

Equinor is currently part in two legal matters in the state of Rio de Janeiro in Brazil related to a law requiring taxpayers that benefits

from ICMS tax incentives (i.e. Repetro) to deposit 10% of the savings made from such benefits into a state fund. Equinor is of the

opinion that specific incentives so far relevant for the Roncador and Peregrino fields are not in scope of the law, while the state of Rio

de Janeiro requires deposits to be paid with the addition of fines and interest. While legal developments in 2023 have included

clarification from the Supreme Court that the law is constitutional, subject to a final ruling, Equinor’s litigation in the matter continues,

mainly related to the law’s impact specifically for Repetro and other state tax incentives. Equinor believes that our view in the matter

will ultimately be upheld by the courts, and no amounts have consequently been provided for in the financial statements. At year-end

2023, the maximum exposure for Equinor in the matter has been estimated to be a total of USD 114 million.

KKD oil sands partnership

Canadian tax authorities have issued a notice of reassessment for 2014 for Equinor's Canadian subsidiary which was party to

Equinor's divestment of 40% of the KKD Oil Sands partnership at that time. The reassessment adjusts the allocation of the proceeds

of disposition of certain Canadian resource properties from the partnership. Maximum exposure is estimated to be approximately USD

380 million. Following an administrative appeal process with Canadian tax authorities, Equinor commenced court proceedings in the

matter in 2023. While the court process may take several years, the reassessment will impact Equinor’s tax paying position while the

proceedings are ongoing. Equinor is of the view that all applicable tax regulations have been applied in the case and that Equinor has

a strong position. No amounts have consequently been provided for in the financial statements.

Other claims

During the normal course of its business, Equinor is involved in legal proceedings, and several other unresolved claims are currently

outstanding. The ultimate liability or asset, in respect of such litigation and claims cannot be determined at this time. Equinor has

provided in its Consolidated financial statements for probable liabilities related to litigation and claims based on its best estimate.

Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of

these legal proceedings. Equinor is actively pursuing the above disputes through the contractual and legal means available in each

case, but the timing of the ultimate resolutions and related cash flows, if any, cannot at present be determined with sufficient reliability.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 224

Provisions related to claims other than those related to income tax are reflected within note 23 Provisions and other liabilities.

Uncertain income tax related liabilities are reflected as current tax payables or deferred tax liabilities as appropriate, while uncertain

tax assets are reflected as current or deferred tax assets.

27 Related parties

Transactions with the Norwegian State

The Norwegian State is the majority shareholder of Equinor and also holds major investments in other Norwegian companies. As of 

31 December 2023, the Norwegian State had an ownership interest in Equinor of 67.0% (excluding Folketrygdfondet, the Norwegian

national insurance fund, of 3.6%). This ownership structure means that Equinor participates in transactions with many parties that are

under a common ownership structure and therefore meet the definition of a related party.

For accounting policies and accounting judgement related to transactions with the Norwegian State, see note 7 Total revenues and

other income. Total purchases of oil and natural gas liquids from the Norwegian State amounted to USD 10.1 billion, USD 12.6 billion

and USD 9.6 billion in 2023, 2022 and 2021, respectively. Payables to equity accounted associated companies and other related

parties specified in note 24 Trade and other payables are mostly related to these purchases, and is included in the below table within

Trade, other payables and provisions. In addition, Equinor sells in its own name, but for the Norwegian State’s account and risk, the

Norwegian State’s gas production.

Trade and other receivables include a receivable from the Norwegian State under the Marketing Instruction in relation to the state’s

(SDFI) participation in the gas sales activities of a foreign subsidiary of Equinor, estimated at USD 0.1 billion. At year-end 2022, the

corresponding estimated amount of USD 1.5 billion was classified as a non-current item and included within Prepayments and

financial receivables. The decrease is mainly related to reduced cost price for gas storage volume and realised gains in the period. A

corresponding non-current liability of USD 0.1 billion has been recognised, representing SDFI's estimated interest in the gas sales

activities in the foreign subsidiary, and is included within Provisions and other liabilities in the below table. The estimated total non-

current liabilities to SDFI amount to USD 0.8 billion at 31 December 2023 (USD 2.1 billion at year end 2022).

In addition, the line-item Finance debt, which form part of the sub-total Total current liabilities, includes a liability of USD 0.9 billion to

SDFI due to cash received for collateral deposits requirement (0 at year end 2022).

Transactions with the Norwegian State related to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity,

capital distribution and earnings per share.

Other transactions

In its ordinary business operations, Equinor enters into contracts such as pipeline transport, gas storage and processing of petroleum

products, with companies in which Equinor has ownership interests.

Gassled and certain other infrastructure assets are operated by Gassco AS, which is an entity under common control by the

Norwegian Ministry of Energy. Gassco’s activities are performed on behalf of and for the risk and reward of pipeline and terminal

owners, and capacity payments flow through Gassco to the respective owners. Equinor payments that flowed through Gassco in this

respect amounted to USD 1.0 billion in 2023, USD 1.2 billion and USD 1.0 billion in 2022 and 2021 respectively. The stated amounts

represent Equinor’s capacity payment net of Equinor’s own ownership interests in Gassco operated infrastructure. In addition, Equinor

manages, in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s share of the Gassco costs. These

transactions are presented net.

Equinor has had transactions with other associated companies and joint ventures in the course of its ordinary business, for which

amounts have not been disclosed due to materiality. In addition, Equinor has had transactions with joint operations and similar

arrangements where Equinor is operator. Indirect operating expenses incurred as operator are charged to the joint operation or similar

arrangement based on the “no-gain/no-loss” principle.

Related party transactions with management are presented in note 8 Salaries and personnel expenses. Related party transactions

due to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity, capital distribution and earnings per

share. Outstanding balances to related parties split on SDFI and other related parties are presented in the below table. All related

party transactions are carried out on market terms.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 225

At 31 December 2023

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

0

103

1,188

1,291

Trade and other receivables

1,007

49

15,877

16,933

Liabilities

Non-current provisions and other liabilities

850

-

14,454

15,304

Trade, other payables and provisions

1,195

47

10,628

11,870

Current finance debt 

893

-

5,103

5,996

At 31 December 2022

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

1,461

61

541

2,063

Trade and other receivables

1,103

173

21,176

22,452

Liabilities

Non-current provisions and other liabilities

2,072

-

13,561

15,633

Trade, other payables and provisions

1,419

60

11,873

13,352

Current finance debt 

-

-

4,359

4,359

28 Financial instruments and fair value measurement

Accounting policies

Financial assets

Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset.

Short-term highly liquid investments with original maturity exceeding 3 months are classified as current financial investments. Current

financial investments are primarily accounted for at amortised cost.

Trade receivables are carried at the original invoice amount less a provision for doubtful receivables which represent expected losses

computed on a probability-weighted basis.

A part of Equinor's financial investments is managed together as an investment portfolio of Equinor's captive insurance company and

is held in order to comply with specific regulations for capital retention. The investment portfolio is managed and evaluated on a fair

value basis in accordance with an investment strategy and is accounted for at fair value through profit or loss.

Financial assets are presented as current if they contractually will expire or otherwise are expected to be recovered within 12 months

after the balance sheet date, or if they are held for the purpose of being traded. Financial assets and financial liabilities are shown

separately in the Consolidated balance sheet, unless Equinor has both a legal right and a demonstrable intention to net settle certain

balances payable to and receivable from the same counterparty.

Gains and losses arising on the sale, settlement or cancellation of financial assets are recognised within Net financial items.

Financial liabilities

Financial liabilities are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the liability. The

subsequent measurement of financial liabilities is either as financial liabilities at fair value through profit or loss or financial liabilities

measured at amortised cost using the effective interest method, depending on classification. The latter applies to Equinor's non-

current bank loans and bonds.

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 226

Financial liabilities are presented as current if the liability is expected to be settled as part of Equinor’s normal operating cycle, the

liability is due to be settled within 12 months after the balance sheet date, Equinor does not have the right to defer settlement of the

liability more than 12 months after the balance sheet date, or if the liabilities are held for the purpose of being traded.

Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised within Net financial items.

Derivative financial instruments

Equinor uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates, interest

rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a

derivative contract is entered into and are subsequently remeasured at fair value through profit and loss. The impact of commodity-

based derivative financial instruments is recognised in the Consolidated statement of income as part of Revenues, as such derivative

instruments are related to sales contracts or revenue-related risk management for all significant purposes. The impact of other

derivative financial instruments is reflected under Net financial items.

Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivative assets or

liabilities expected to be settled, or with the legal right to be settled more than 12 months after the balance sheet date, are classified

as non-current. Derivative financial instruments held for the purpose of being traded are however always classified as current.

Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument are accounted for as

financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a

non-financial item in accordance with Equinor's expected purchase, sale or usage requirements, also referred to as own-use, are not

accounted for as financial instruments. Such sales and purchases of physical commodity volumes and power are reflected in the

Consolidated statement of income as Revenue from contracts with customers and Purchases [net of inventory variation], respectively.

This is applicable to a significant number of contracts for the purchase or sale of crude oil and natural gas, as well as for some

contracts for the purchase or sale of power.

For contracts to sell a non-financial item that can be settled net in cash, but which ultimately are physically settled despite not

qualifying as own use prior to settlement, the changes in fair value are included in Gain/loss on commodity derivatives. When these

derivatives are physically settled, the previously recognised unrealised gain/loss is included in Physically settled commodity

derivatives. Both these elements are included as part of Revenues. The physical deliveries made through such contracts are included

in Revenue from contracts with customers at contract price.

Derivatives embedded in host contracts which are not financial assets within the scope of IFRS 9 are recognised as separate

derivatives and are reflected at fair value with subsequent changes through profit and loss, when their risks and economic

characteristics are not closely related to those of the host contracts, and the host contracts are not carried at fair value. Where there is

an active market for a commodity or other non-financial item referenced in a purchase or sale contract, a pricing formula will, for

instance, be considered to be closely related to the host purchase or sales contract if the price formula is based on the active market

in question. A price formula with indexation to other markets or products will however result in the recognition of a separate derivative.

In Equinor, this mainly relates to certain natural gas sales contracts where the pricing formula references power.

--------------------------------------------------------------------------------------------------------------------------------------

Financial instruments by category

The following tables present Equinor's classes of financial instruments and their carrying amounts by the categories as they are

defined in IFRS 9 Financial Instruments. For financial investments, the difference between measurement as defined by IFRS 9

categories and measurement at fair value is immaterial. For trade and other receivables and payables, and cash and cash

equivalents, the carrying amounts are considered a reasonable approximation of fair value. See note 21 Finance

debt for fair value

information of non-current bonds and bank loans.

At 31 December 2023

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

559

559

Non-current financial investments

16

75

3,366

3,441

Prepayments and financial receivables

16

341

950

1,291

Trade and other receivables

18

16,193

740

16,933

Current derivative financial instruments

1,378

1,378

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 227

Current financial investments

16

28,822

402

29,224

Cash and cash equivalents

19

7,767

1,875

9,641

Total 

53,198

7,580

1,690

62,467

At 31 December 2022

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

691

691

Non-current financial investments

16

117

2,616

2,733

Prepayments and financial receivables

16

1,658

404

2,063

Trade and other receivables

18

21,611

841

22,452

Current derivative financial instruments

4,039

4,039

Current financial investments

16

29,577

300

29,876

Cash and cash equivalents

19

12,473

3,106

15,579

Total 

65,436

10,752

1,245

77,433

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 228

At 31 December 2023

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

22,230

22,230

Non-current derivative financial instruments

1,795

1,795

Trade, other payables and provisions

24

11,052

819

11,870

Current finance debt

21

5,996

5,996

Dividend payable

2,649

2,649

Current derivative financial instruments

1,619

1,619

Total 

41,927

3,414

819

46,159

At 31 December 2022

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

24,141

24,141

Non-current derivative financial instruments

2,376

2,376

Trade, other payables and provisions

24

12,449

903

13,352

Current finance debt

21

4,359

4,359

Dividend payable

2,808

2,808

Current derivative financial instruments

4,106

4,106

Total 

43,757

6,482

903

51,142

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 229

Measurement of fair values

Quoted prices in active markets represent the best evidence of fair value and are used by Equinor in determining the fair values of

assets and liabilities to the extent possible. Financial instruments quoted in active markets will typically include financial instruments

with quoted market prices obtained from the relevant exchanges or clearing houses. The fair values of quoted financial assets,

financial liabilities and derivative instruments are determined by reference to mid-market prices, at the close of business on the

balance sheet date.

Where there is no active market, fair value is determined using valuation techniques. These include using recent arm's-length market

transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and pricing models and

related internal assumptions. In the valuation techniques, Equinor also takes into consideration the counterparty and its own credit

risk. This is either reflected in the discount rate used or through direct adjustments to the calculated cash flows. Consequently, where

Equinor reflects elements of long-term physical delivery commodity contracts at fair value, such fair value estimates to the extent

possible are based on quoted forward prices in the market and underlying indexes in the contracts, as well as assumptions of forward

prices and margins where observable market prices are not available. Similarly, the fair values of interest and currency swaps are

estimated based on relevant quotes from active markets, quotes of comparable instruments, and other appropriate valuation

techniques.

Fair value hierarchy

The following table summarises each class of financial instruments which are recognised in the Consolidated balance sheet at fair

value, split by Equinor's basis for fair value measurement.

(in USD million)

Non-current

financial

investments

Non-current

derivative

financial

instruments

- assets

Current

financial

investments

Current

derivative

financial

instruments

- assets

Cash

equivalents

Non-current

derivative

financial

instruments

- liabilities

Current

derivative

financial

instruments

- liabilities

Net fair

value

At 31 December 2023

Level 1

1,294

0

-

6

0

-

1,300

Level 2

1,528

104

402

1,195

1,875

(1,754)

(1,577)

1,773

Level 3

543

455

177

(42)

(41)

1,092

Total fair value

3,366

559

402

1,378

1,875

(1,795)

(1,619)

4,166

At 31 December 2022

Level 1

903

-

-

25

-

(60)

868

Level 2

1,222

97

300

3,722

3,106

(2,352)

(3,952)

2,143

Level 3

491

594

292

(24)

(94)

1,259

Total fair value

2,616

691

300

4,039

3,106

(2,376)

(4,106)

4,270

Level 1, fair value based on prices quoted in an active market for identical assets or liabilities, includes financial instruments actively

traded and for which the values recognized in the Consolidated balance sheet are determined based on observable prices on identical

instruments. For Equinor this category will, in most cases, only be relevant for investments in listed equity securities and government

bonds.

Level 2, fair value based on inputs other than quoted prices included within level 1, which are derived from observable market

transactions, includes Equinor's non-standardised contracts for which fair values are determined on the basis of price inputs from

observable market transactions. This will typically be when Equinor uses forward prices on crude oil, natural gas, interest rates and

foreign currency exchange rates as inputs to the valuation models to determine the fair value of it derivative financial instruments.

Level 3, fair value based on unobservable inputs, includes financial instruments for which fair values are determined on the basis of

input and assumptions that are not from observable market transactions. The fair values presented in this category are mainly based

on internal assumptions. The internal assumptions are only used in the absence of quoted prices from an active market or other

observable price inputs for the financial instruments subject to the valuation.

The fair value of certain earn-out agreements and embedded derivative contracts are determined by the use of valuation techniques

with price inputs from observable market transactions as well as internally generated price assumptions and volume profiles. The

discount rate used in the valuation is a risk-free rate based on the applicable currency and time horizon of the underlying cash flows

adjusted for a credit premium to reflect either Equinor's credit premium, if the value is a liability, or an estimated counterparty credit

Financial statements and supplements

Consolidated financial statements and notes

Equinor 2023 Integrated Annual Report 230

premium if the value is an asset. In addition, a risk premium for risk elements not adjusted for in the cash flow may be included when

applicable. The fair values of these derivative financial instruments have been classified in their entirety in the third category within

current derivative financial instruments and non-current derivative financial instruments. Another reasonable assumption, that could

have been applied when determining the fair value of these contracts, would be to extrapolate the last observable forward prices with

inflation. If Equinor had applied this assumption, the fair value of the contracts included would have increased by approximately USD

0.3 billion at end of 2023, while at end of 2022 the increase in fair value was approximately USD 0.5 billion.

During 2023 the financial instruments within level 3 have had a net decrease in fair value of USD 167 million, of which a loss of USD

191 million was recognised in the Consolidated statement of income, mainly due to changes in fair value of certain embedded

derivatives and earn-out agreements. During 2022, the same financial instruments had a net increase in fair value of USD 416 million,

of which a gain of USD 370 million was recognised in the Consolidated statement of income.

29 Subsequent events

Swap of US Offshore Wind assets

In January 2024, Equinor entered into a swap agreement with bp. Equinor will acquire bp’s 50% share and take full ownership of Empire

Offshore Wind Holdings LLC, including the Empire Wind lease and projects, while bp will acquire Equinor’s 50% share and take full ownership

of Beacon Wind Holdings LLC, including the Beacon Wind lease and projects. It is anticipated that Equinor will consolidate Empire Wind and

derecognise its 50% share of Beacon Wind in the first quarter of 2024. Equinor will also acquire bp's 50% interest in the South Brooklyn

Marine Terminal (SBMT) lease. The transaction, pending regulatory approvals, is anticipated to be cash neutral, with the exception of standard

cash and working capital settlements and will be recognised in the REN segment.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 231

4.3 Parent company financial statements

STATEMENT OF INCOME EQUINOR ASA

Full year

(in USD million)

Note

2023

2022

Revenues

3

62,286

68,154

Net income/(loss) from subsidiaries and other equity accounted investments

10

10,056

28,630

Other income

100

0

Total revenues and other income

72,442

96,784

Purchases [net of inventory variation]

(58,195)

(64,932)

Operating expenses

(2,522)

(2,499)

Selling, general and administrative expenses

(390)

(342)

Depreciation, amortisation and net impairment

9

(664)

(623)

Exploration expenses

(13)

(23)

Total operating expenses

(61,784)

(68,419)

Net operating income/(loss)

10,658

28,365

Interest income and other financial income

7

3,746

2,178

Interest expenses and other financial expenses

7

(3,084)

(1,889)

Other financial items

7

980

(1,176)

Net financial items

1,641

(888)

Income/(loss) before tax

12,299

27,477

Income tax

8

(618)

68

Net income/(loss)

11,681

27,546

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 232

STATEMENT OF COMPREHENSIVE INCOME EQUINOR ASA

Full year

(in USD million)

Note

2023

2022

Net income/(loss)

11,681

27,546

Actuarial gains/(losses) on defined benefit pension plans

(276)

461

Income tax effect on income and expense recognised in OCI

1)

66

(105)

Items that will not be reclassified to the Statement of income

17

(211)

356

Foreign currency translation effects

(378)

(2,389)

Share of OCI from equity accounted investments

10

(113)

424

Items that may subsequently be reclassified to the Statement of income

(491)

(1,965)

Other comprehensive income/(loss)

(702)

(1,609)

Total comprehensive income/(loss)

10,979

25,937

Attributable to the equity holders of the company

10,979

25,937

1) Other Comprehensive Income (OCI).

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 233

BALANCE SHEET EQUINOR ASA

At 31 December

(in USD million)

Note

2023

2022

ASSETS

Property, plant and equipment

9, 20

1,820

2,021

Intangible assets

15

4

Investments in subsidiaries and other equity accounted companies

10

49,408

50,548

Deferred tax assets

8

1,144

1,354

Pension assets

17

1,234

1,163

Derivative financial instruments

2

91

95

Financial investments

2

208

166

Prepayments and financial receivables

612

1,838

Receivables from subsidiaries and other equity accounted companies

11

14,642

19,129

Total non-current assets

69,175

76,319

Inventories

12

1,580

1,771

Trade and other receivables

13

11,064

14,190

Receivables from subsidiaries and other equity accounted companies

11

10,084

26,413

Derivative financial instruments

2

424

979

Financial investments

11

28,706

29,466

Cash and cash equivalents

14

6,187

10,204

Total current assets

58,045

83,023

Total assets

127,220

159,342

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 234

BALANCE SHEET EQUINOR ASA

At 31 December

(in USD million)

Note

2023

2022

EQUITY AND LIABILITIES

Share capital

1,101

1,142

Reserves for valuation variances

7,975

8,705

Reserves for unrealised gains

469

131

Retained earnings

36,628

40,936

Total equity

15

46,173

50,914

Finance debt

16

22,051

24,141

Lease liabilities

20

1,074

1,269

Liabilities to subsidiaries and other equity accounted companies

515

315

Pension liabilities

17

3,909

3,656

Provisions and other liabilities

18

384

1,841

Derivative financial instruments

2

1,795

2,376

Total non-current liabilities

29,729

33,598

Trade, other payables and provisions

19

5,207

4,037

Current tax payable

180

255

Finance debt

16

5,488

2,786

Lease liabilities

20

546

528

Dividends payable

15

4,698

5,608

Liabilities to subsidiaries and other equity accounted companies

11

33,954

59,587

Derivative financial instruments

2

1,245

2,029

Total current liabilities

51,319

74,830

Total liabilities

81,047

108,428

Total equity and liabilities

127,220

159,342

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 235

STATEMENT OF CASH FLOWS EQUINOR ASA

Full year

(in USD million)

Note

2023

2022

Income/(loss) before tax

12,299

27,477

Depreciation, amortisation and net impairment

9

664

623

(Gains)/losses on foreign currency transactions and balances

(615)

(756)

(Gains)/losses on sale of assets and businesses

10

258

0

(Income)/loss from equity accounted subsidiaries and investments

1)

17,702

(20,758)

(Increase)/decrease in other items related to operating activities

(1,020)

(321)

(Increase)/decrease in net derivative financial instruments

2

(185)

561

Interest received

2,375

1,059

Interest paid

(2,977)

(1,763)

Cash flows provided by operating activities before taxes paid and working capital items

28,500

6,122

Taxes paid

(225)

135

(Increase)/decrease in working capital

1,127

2,665

Cash flows provided by operating activities

29,401

8,923

Capital expenditures and investments

9, 10

(2,294)

(5,823)

(Increase)/decrease in financial investments

1,116

(9,937)

(Increase)/decrease in derivative financial instruments

(1,324)

1,930

(Increase)/decrease in other interest-bearing items

(129)

8

(Increase)/decrease in financial receivables from group companies

3,778

4,553

Proceeds from sale of assets and businesses and capital contribution received

1,677

202

Cash flows provided by/(used in) investing activities

2,825

(9,069)

Repayment of finance debt

16

(2,556)

(250)

Repayment of lease liabilities

20

(567)

(588)

Dividends paid

15

(10,906)

(5,380)

Share buy-back

15

(5,589)

(3,315)

Net current finance debt and other financing activities

3,240

(5,690)

Increase/(decrease) in financial receivables and payables to/from subsidiaries

2)

(19,732)

16,431

Cash flows provided by/(used in) financing activities

(36,109)

1,208

Net increase/(decrease) in cash and cash equivalents

(3,882)

1,062

Foreign currency translation effects

(135)

(1,568)

Cash and cash equivalents at the beginning of the period (net of overdraft)

14

10,204

10,710

Cash and cash equivalents at the end of the period (net of overdraft)

3)

14

6,187

10,204

1) The line includes dividend from Equinor Energy AS of USD 25,954 million in 2023 and USD 6,807 million in 2022.

2) Mainly deposits in Equinor group's internal bank arrangement.

3) At 31 December 2023 and 2022 cash and cash equivalents net overdraft were zero.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 236

Notes to the Financial statements Equinor ASA

1 Organisation and material accounting policies

Equinor ASA (“the company”) is the parent company of the Equinor Group (Equinor), consisting of Equinor ASA and its subsidiaries.

Equinor ASA’s main activities include shareholding in group companies, group management, corporate functions and group financing.

Equinor ASA also carries out activities related to external sales of oil and gas products, purchased externally or from group

companies, including related refinery and transportation activities. Reference is made to disclosure note 1 Organisation in Equinor’s

Consolidated financial statements.

The financial statements of Equinor ASA have been prepared in accordance with simplified application of international accounting

standards according to section 3-9 of the Norwegian Accounting Act and regulations regarding simplified application of international

accounting standards issued by the Norwegian Ministry of Finance on 7 February 2022. The presentation currency of Equinor ASA is

US dollar (USD), consistent with the presentation currency for the group financial statements and with the company’s functional

currency.

Equinor ASA’s financial statements should be read in connection with the Consolidated financial statements of Equinor, published

together with these financial statements. With the exceptions described below, Equinor ASA applies the accounting policies of the

group, as described in Equinor’s Consolidated financial statements.

Subsidiaries, associated companies and joint ventures

Shareholdings and interests in subsidiaries and associated companies (companies in which Equinor ASA does not have control, or

joint control, but has the ability to exercise significant influence over operating and financial policies, generally when the ownership

share is between 20% and 50%), as well as Equinor ASA’s participation in joint arrangements that are joint ventures, are accounted

for using the equity method. Under the equity method, the investment is carried on the balance sheet at cost plus post-acquisition

changes in Equinor ASA’s share of net assets of the entity, less distribution received and less any impairment in value of the

investment. Goodwill may arise as the surplus of the cost of investment over Equinor ASA’s share of the net fair value of the

identifiable assets and liabilities of the subsidiary, joint venture or associate. Goodwill included in the balance sheets of subsidiaries

and associated companies is tested for impairment as part of the related investment in the subsidiary or associated company. The

Statement of income reflects Equinor ASA’s share of the results after tax of an equity-accounted entity, adjusted to account for

depreciation, amortisation and any impairment of the equity-accounted entity’s assets based on their fair values at the date of

acquisition in situations where Equinor ASA has not been the owner since the establishment of the entity. Equinor also reflects its

share of the investment’s other comprehensive income (OCI) arisen after the acquisition. Net income/loss from equity accounted

investments is presented as part of Total revenues and other income, as these investments in other companies engaged in energy-

related business activities are considered part of Equinor ASA’s main operating activities.

Within Equinor ASA’s equity, a reserve for valuation variances has been established. All positive differences between the equity

accounted investments’ carrying value and the acquisition cost are allocated to this reserve.

Expenses related to the Equinor group as operator of joint operations and similar arrangements (licences)

Indirect operating expenses incurred by the company, such as personnel expenses, are accumulated in cost pools. Such expenses

are allocated in part on hours incurred cost basis to Equinor Energy AS, to other group companies and to licences where Equinor

Energy AS or other group companies are operators. Costs allocated in this manner reduce the expenses in the company's statement

of income, with the exception of operating subleases and cost recharges related to lease liabilities being recognised gross, which are

presented as revenues in Equinor ASA.

Asset transfers between the company and its subsidiaries

Transfers of assets and liabilities between the company and the entities that it directly or indirectly controls are accounted for at the

carrying amounts (continuity) of the assets and liabilities transferred, when the transfer is part of a reorganisation within the Equinor

group.

Embedded derivatives

Embedded derivatives within sales or purchase contracts between Equinor ASA and other companies within the Equinor group are

not separated from the host contract.

Dividends payable and group contributions

Dividends are reflected as Dividends payable within current liabilities. Group contributions for the year to other entities within Equinor's

Norwegian tax group are reflected in the balance sheet as current liabilities within Liabilities to group companies. Under simplified

application of international accounting standards according to section 3-9 of the Norwegian Accounting Act the presentation of

dividends payable and group contributions payable differs from the presentation under IFRS Accounting Standards, as it also includes

dividends and group contributions payable which at the date of the balance sheet is subject to a future annual general meeting

approval before distribution.

Reserves for unrealised gains

Reserves for unrealised gains included within the company’s equity consists of accumulated unrealised gains on non-exchange

traded financial instruments and accumulated positive fair value changes from embedded derivatives.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 237

2 Financial risk management and measurement of financial instruments

General information relevant to financial risks

Equinor ASA's activities expose the company to market risk, liquidity risk and credit risk. The management of such risks does not

substantially differ from the Group’s. See note 4

Financial risk and capital management in the Consolidated financial statements.

Measurement of financial instruments by categories

The following tables present Equinor ASA's classes of financial instruments and their carrying amounts by the categories as they are

defined in IFRS 9 Financial Instruments. For financial investments, the difference between measurement as defined by IFRS 9

categories and measurement at fair value is immaterial. For trade and other receivables and payables and cash and cash equivalents,

the carrying amounts are considered a reasonable approximation of fair value.

See note 21 Finance debt in the Consolidated financial statements for fair value information of non-current bonds and bank loans and

note 28 Financial instruments and fair value measurement in the Consolidated financial statements where fair value measurement is

explained in detail.

(in USD million)

Note

Amortised

cost

Fair value

through profit

or loss

Non-

financial

assets

Total

carrying

amount

At 31 December 2023

Assets

Non-current derivative financial instruments

91

91

Non-current financial investments

208

208

Prepayments and financial receivables

201

411

612

Receivables from subsidiaries and other equity accounted companies

11

14,163

479

14,642

Trade and other receivables

13

10,884

180

11,064

Receivables from subsidiaries and other equity accounted companies

11

10,036

48

10,084

Current derivative financial instruments

424

424

Current financial investments

11

28,706

28,706

Cash and cash equivalents

14

4,312

1,875

6,187

Total financial assets

68,302

2,598

1,119

72,018

(in USD million)

Note

Amortised

cost

Fair value

through profit

or loss

Non-

financial

assets

Total

carrying

amount

At 31 December 2022

Assets

Non-current derivative financial instruments

95

95

Non-current financial investments

166

166

Prepayments and financial receivables

1,645

193

1,838

Receivables from subsidiaries and other equity accounted companies

11

18,563

566

19,129

Trade and other receivables

13

13,963

227

14,190

Receivables from subsidiaries and other equity accounted companies

11

26,363

50

26,413

Current derivative financial instruments

979

979

Current financial investments

11

29,466

29,466

Cash and cash equivalents

14

7,098

3,106

10,204

Total financial assets

97,098

4,346

1,037

102,481

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 238

(in USD million)

Not

e

Amortised

cost

Fair value

through

profit or

loss

Non-

financial

liabilities

Total carrying

amount

At 31 December 2023

Liabilities

Non-current finance debt

16

22,051

22,051

Liabilities to subsidiaries and other equity accounted companies

27

488

515

Non-current derivative financial instruments

1,795

1,795

Trade and other payables

19

5,114

93

5,207

Current finance debt

16

5,488

5,488

Dividends payable

4,698

4,698

Liabilities to subsidiaries and other equity accounted companies

11

33,954

33,954

Current derivative financial instruments

1,245

1,245

Total financial liabilities

71,332

3,041

581

74,953

(in USD million)

Not

e

Amortised

cost

Fair value

through

profit or

loss

Non-

financial

liabilities

Total carrying

amount

At 31 December 2022

Liabilities

Non-current finance debt

16

24,141

24,141

Liabilities to subsidiaries and other equity accounted companies

25

291

315

Non-current derivative financial instruments

2,376

2,376

Trade and other payables

19

3,707

329

4,037

Current finance debt

16

2,786

2,786

Dividends payable

5,608

5,608

Liabilities to subsidiaries and other equity accounted companies

11

59,587

59,587

Current derivative financial instruments

2,029

2,029

Total financial liabilities

95,854

4,405

620

100,879

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 239

Financial instruments recognised at fair value through profit or loss, with a net fair value of negative USD 442 million in 2023 and

negative USD 59 million in 2022, are mainly classified within Level 1 and Level 2 categories in the Fair Value hierarchy.

The following table contains the estimated fair values of Equinor ASA’s derivative financial instruments split by type.

Fair value of

assets

Fair value of

liabilities 

Net fair value

(in USD million)

At 31 December 2023

Foreign currency instruments

130

(478)

(348)

Interest rate instruments

81

(1,761)

(1,679)

Crude oil and refined products

52

(19)

33

Natural gas and electricity 

251

(783)

(531)

Total fair value

515

(3,041)

(2,526)

At 31 December 2022

Foreign currency instruments

82

(595)

(514)

Interest rate instruments

56

(2,418)

(2,362)

Crude oil and refined products

31

(12)

19

Natural gas and electricity 

905

(1,380)

(475)

Total fair value

1,074

(4,405)

(3,331)

Sensitivity analysis of market risk

Commodity price risk

Equinor ASA's assets and liabilities resulting from commodity based derivative contracts consist of both exchange traded and non-

exchange traded instruments mainly in crude oil, refined products and natural gas.

Price risk sensitivities at the end of 2023 and 2022 at 30% are assumed to represent a reasonably possible change based on the

duration of the derivatives.

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

222

(222)

342

(342)

Natural gas and electricity net gains/(losses)

63

(63)

530

(530)

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 240

Currency risk

The following currency risk sensitivity has been calculated by assuming a 11% reasonable possible change in the main foreign

currency exchange rates that impact Equinor ASA’s financial accounts, based on balances at 31 December 2023. At 31 December

2022, a change of 12% in the most relevant foreign currency exchange rates was viewed as a reasonable possible change. With

reference to the table below, a negative figure represents a negative equity impact / loss, while a positive figure represents a positive

equity impact / gain.

The currency risk sensitivity of Equinor ASA mainly differs from that of the Group due to interest-bearing receivables and liabilities

from/to subsidiaries. For more detailed information about these receivables and liabilities, see note 11 Financial assets and liabilities.

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

BRL

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

816

406

903

47

Shareholders equity through P&L

376

(418)

(88)

600

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(816)

(406)

(903)

(47)

Shareholders equity through P&L

(376)

418

88

(600)

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

BRL

Impact from an 12% strengthening of given currency vs USD on:

Shareholders equity through OCI

2,761

837

750

6

Shareholders equity through P&L

(189)

(259)

(95)

519

Impact from an 12% weakening of given currency vs USD on:

Shareholders equity through OCI

(2,761)

(837)

(750)

(6)

Shareholders equity through P&L

189

259

95

(519)

Interest rate risk

The following interest rate risk sensitivity has been calculated by assuming a change of 1.3 percentage points as a reasonable

possible change in interest rates at the end of 2023. A change of 1.2 percentage points in interest rates was viewed as a reasonable

possible change in 2022. The estimated gains following from a decrease in the interest rates and the estimated losses following from

an interest rate increase would impact the company’s statement of income.

Interest risk sensitivity

At 31 December

2023

2022

(in USD million)

 - 1.3 percentage

points sensitivity

+ 1.3 percentage

points sensitivity

 - 1.2 percentage

points sensitivity

+ 1.2 percentage

points sensitivity

Positive/(negative) impact on net financial items

569

(569)

795

(795)

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 241

3 Revenues

Full year

(in USD million)

2023

2022

Revenues third party

61,050

65,386

Intercompany revenues

1,236

2,768

Revenues 

62,286

68,154

4 Salaries and personnel expenses

Equinor ASA remuneration

(amounts in USD million)

2023

2022

Salaries

1)

2,360

2,428

Pension cost

2)

374

416

Payroll tax

415

357

Other compensations and social costs

312

266

Total remuneration

3,462

3,467

Average number of employees

3)

19,700

18,700

1) Salaries include bonuses and expatriate costs in addition to base pay.

2) See note 17 Pensions.

3) Part time employees amount to 2% for both 2023 and 2022.

Total payroll expenses are accumulated in cost-pools and charged to partners of Equinor operated licences and group companies on

an hours incurred basis. For further information see note 22 Related parties.

Compensation to and share ownership of the board of directors (BoD), the corporate executive committee (CEC) and the

corporate assembly

Compensation to the BoD during 2023 was USD 0.8 million and the total share ownership of the members of the BoD at the end of

the year was 15,270 shares. Compensation to the CEC during 2023 was USD 10,5 million and the total share ownership of the

members of the CEC at the end of the year was 288,672 shares. Compensation to the corporate assembly during 2023 was USD 0,1

million and the total share ownership of the members of the corporate assembly at the end of the year was 18,794 shares.

At 31 December 2023 and 2022 there are no loans to the members of the BoD or the CEC.

The 2023 remuneration report for the CEC, BoD and the corporate assembly is available at Equinor.com/Reports. The 2021 executive

remuneration policy is applicable for 2023 and is included as an Appendix to the 2023 remuneration report.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 242

Severance pay arrangements

The chief executive officer and the executive vice presidents are entitled to a severance payment equivalent to six months’ salary,

commencing after the six months’ notice period, when the resignation is requested by the company. The same amount of severance

payment is also payable if the parties agree that the employment should be discontinued, and the executive vice president gives

notice pursuant to a written agreement with the company. Any other payment earned by the executive vice president during the period

of severance payment will be fully deducted. This relates to earnings from any employment or business activity where the executive

vice president has active ownership.

The entitlement to severance payment is conditional on the chief executive officer or the executive vice president not being guilty of

gross misconduct, gross negligence, disloyalty or other material breach of his/her duties.

The chief executive officer’s/executive vice president’s own notice will not instigate any severance payment.

5 Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions.

If the shares are kept for two full calendar years of continued employment, following the year of purchase, the employees will be

allocated one bonus share for each one they have purchased.

Estimated compensation expense including the contribution by Equinor ASA for purchased shares, amounts vested for bonus shares

granted and related social security tax was USD 69 million in 2023, and USD 77 million in 2022. For the 2024 programme (granted in

2023), the estimated compensation expense is USD 74 million. At 31 December 2023, the amount of compensation cost yet to be

expensed throughout the vesting period is USD 157 million.

6 Auditor’s remuneration

Auditor's remuneration

(in USD million, excluding VAT)

2023

2022

Audit fee

5.9

5.1

Audit related fee

0.4

0.5

Total remuneration

6.3

5.6

There are no fees incurred related to tax advice or other services.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 243

7 Financial items

Full year

(in USD million)

2023

2022

Foreign currency exchange gains/(losses) derivative financial instruments 

(1,427)

809

Other foreign currency exchange gains/(losses)

2,042

(53)

Net foreign currency exchange gains/(losses)

615

756

Interest income from group companies

1,617

1,218

Interest income other current financial assets and other financial items

2,129

960

Interest income and other financial income

3,746

2,178

Gains/(losses) financial investments

14

(187)

Gains/(losses) other derivative financial instruments

351

(1,745)

Interest expense to group companies

(1,541)

(710)

Interest expense non-current finance debt and lease liabilities

(1,333)

(1,069)

Interest expense current financial liabilities and other financial expenses

(211)

(110)

Interest expenses and other financial expenses

(3,084)

(1,889)

Net financial items

1,641

(888)

Equinor's main financial items relate to assets and liabilities categorised in the fair value through profit or loss category and the

amortised cost category. For more information about financial instruments by category see note 2 Financial risk management and

measurement of financial instruments.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to

liquidity and currency risk. The line item Other foreign currency exchange gains/(losses) includes a fair value gain from derivatives

related to non-current debt of USD 316 million in 2023 and a loss of USD 691 million in 2022.

Interest income other current financial assets and other financial items includes interest income related to balances at amortised cost

of USD 1,646 million and USD 404 million for 2023 and 2022, respectively.

Gains/(losses) financial investments include a net gain of USD 14 million in 2023 and a net loss of USD 194 million and 2022, from

non-current financial investments in the fair value through profit and loss category.

Gains/(losses) other derivative financial instruments primarily includes fair value changes from interest rate related derivatives. For

2023, a gain of USD 332 million is included, compared to a loss of USD 1,760 million in 2022.

Interest expense non-current finance debt and lease liabilities primarily includes two items; interest expense on financial liabilities at

amortised cost (USD 856 million and USD 912 million for 2023 and 2022, respectively), and net interest on related derivatives at fair

value through profit or loss (net interest expense of USD 405 million and USD 111 million, for 2023 and 2022, respectively).

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 244

8 Income taxes

Income tax

Full year

(in USD million)

2023

2022

Current taxes

(349)

(233)

Change in deferred tax

(269)

301

Income tax

(618)

68

Reconciliation of Norwegian statutory tax rate to effective tax rate

Full year

(in USD million)

2023

2022

Income/(loss) before tax

12,299

27,477

Nominal tax rate

1)

(2,706)

(6,045)

Tax effect of:

Permanent differences caused by NOK being the tax currency

(136)

50

Tax effect of permanent differences related to equity accounted companies

2,411

6,289

Other permanent differences

29

(36)

Income tax prior years

(109)

(16)

Other

(107)

(172)

Income tax

(618)

68

Effective tax rate

5.0%

(0.2%)

1)

 Statutory tax rate is 22% for 2023 and 2022. 

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 245

Significant components of deferred tax assets and liabilities were as follows:

At 31 December

(in USD million)

2023

2022

Deferred tax assets

Pensions

628

588

Derivatives

407

623

Lease liabilities

345

380

Other

118

157

Total deferred tax assets

1,498

1,749

Deferred tax liabilities

Property, plant and equipment

354

394

Total deferred tax liabilities

354

394

Net deferred tax assets

1)

1,144

1,355

1)

 At 31 December 2023, Equinor ASA had recognised net deferred tax assets of USD 1,1 billion, as it is considered probable that

taxable profit will be available to utilise the deferred tax assets.

Movement in deferred tax

(in USD million)

2023

2022

Deferred tax assets at 1 January

1,355

1,117

Charged to the Statement of income

(269)

301

Actuarial losses pension 

59

(98)

Other

0

34

Deferred tax assets at 31 December

1,144

1,355

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 246

9 Property, plant and equipment

(in USD million)

Machinery,

equipment and

transportation

equipment

Buildings

and land

Other

Right of

use

assets

3)

Total

Cost at 1 January 2023

771

292

160

3,743

4,966

Additions and transfers

27

3

0

428

459

Disposals at cost

(2)

0

0

(372)

(375)

Cost at 31 December 2023

796

295

160

3,799

5,051

Accumulated depreciation and impairment at 1 January 2023

(722)

(170)

(154)

(1,899)

(2,945)

Depreciation

(27)

(12)

(1)

(620)

(660)

Accumulated depreciation and impairment on disposed assets

2

0

0

372

375

Accumulated depreciation and impairment at 31 December 2023

(746)

(183)

(155)

(2,147)

(3,230)

Carrying amount at 31 December 2023

50

113

5

1,652

1,820

Estimated useful lives (years)

3 - 10

10 - 33

1)

1 - 19

2)

1) Land is not depreciated. Buildings include leasehold improvements. 

2) Depreciation linearly over contract period.

3) Right of use assets as per 31 December 2023 consist of Vessels USD 884 million, Land and buildings USD 677 million and Storage

facilities USD 92 million.

10 Investments in subsidiaries and other equity accounted companies

2023 (in USD million)

Equinor

Energy AS

Other Equity

accounted

investments

Total

Investments at 1 January

26,652

23,896

50,548

Net income/(loss) from subsidiaries and other equity accounted investments

9,044

1,012

10,056

Increase/(decrease) in paid-in capital

0

2,249

2,249

Distributions

(9,208)

(3,055)

(12,263)

Share of OCI from equity accounted investments

0

(113)

(113)

Foreign currency translation effects

(1,397)

956

(441)

Divestment

0

(628)

(628)

Investments at 31 December

25,091

24,317

49,408

2022 (in USD million)

Equinor

Energy AS

Other Equity

accounted

investments

Total

Investments at 1 January

21,096

15,220

36,316

Net income/(loss) from subsidiaries and other equity accounted investments

24,754

3,876

28,630

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 247

Increase/(decrease) in paid-in capital

0

5,794

5,794

Distributions

(17,498)

(708)

(18,206)

Share of OCI from equity accounted investments

0

423

423

Foreign currency translation effects

(1,700)

(688)

(2,388)

Divestment

0

(20)

(20)

Investments at 31 December

26,652

23,896

50,548

The closing balance of investments at 31 December 2023 of USD 49,408 million consists of investments in subsidiaries amounting to

USD 49,353 million and investments in other equity accounted companies amounting to USD 55 million. In 2022, the amounts were

USD 50,483 million and USD 65 million respectively.

The foreign currency translation adjustments relate to currency translation effects from subsidiaries with functional currencies other

than USD.

In 2023, Net income/(loss) from subsidiaries and other equity accounted investments was impacted by a net impairment loss of USD

696 million after tax.

In 2022, Net income/(loss) from subsidiaries and other equity accounted investments was impacted by net impairment reversals of

USD 1,241 million after tax mainly caused by increased price estimates partially offset by the effect from the decision to exit Russia

which amounted to USD 994 million after tax.

Increase/(decrease) in paid-in capital in 2023 mainly consist of equity contribution from Equinor ASA to Equinor UK Limited of USD

1,566 million, Equinor New Energy AS of USD 255 million, Equinor Insurance AS of USD 210 million and Equinor Ventures AS of

USD 196 million.

Increase/(decrease) in paid-in capital in 2022 mainly consist of equity contributions from Equinor ASA to Equinor Refining Norway AS

of USD 4,145 million, Equinor New Energy AS of USD 974 million and Equinor UK Ltd of USD 629 million.

Distributions during 2023 consist of dividend from Equinor Energy AS of USD 9,190 million, change in group contributions from group

companies related to previous years of USD 291 million and dividends from group companies of USD 2,782 million related to 2022.

Distributions during 2022 consist of dividend from Equinor Energy AS of USD 17,550 million related to 2022, change in group

contributions from group companies related to previous years of USD 451 million and dividends from group companies of USD 1,107

million related to 2021.

The sale of Equinor Energy Ireland Limited was closed during 2023, and a loss of USD 258 million has been recognised and

presented in the line item Operating expenses in the Statement of income.

The acquisition costs for investments in subsidiaries and other equity accounted companies were USD 41,432 million at 31 December

2023 and USD 41,843 million at 31 December 2022.

The following table shows significant subsidiaries and equity accounted companies directly held by Equinor ASA at 31 December

2023:

Name

Ownership

share in %

Country of

incorporation

Name

Ownership

share in %

Country of

incorporation

Equinor Angola Block 17 AS

100

Norway

Equinor New Energy AS

100

Norway

Equinor Apsheron AS

100

Norway

Equinor Refining Norway AS

100

Norway

Equinor Energy AS

100

Norway

Equinor UK Ltd.

100

United Kingdom

Equinor In Salah AS

100

Norway

Equinor Ventures AS

100

Norway

Equinor Insurance AS

100

Norway

For Investments, voting rights correspond to ownership.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 248

11 Financial assets and liabilities

Non-current receivables from subsidiaries and other equity accounted companies

At 31 December

(in USD million)

2023

2022

Interest-bearing receivables from subsidiaries and other equity accounted companies

14,163

18,563

Non-interest-bearing receivables from subsidiaries

479

566

Receivables from subsidiaries and other equity accounted companies

14,642

19,129

Interest-bearing receivables from subsidiaries and other equity accounted companies are mainly related to Equinor Energy AS and

Equinor Brasil Energia Ltda. The remaining amount on financial receivables interest bearing primarily relate to long-term funding of

other subsidiaries.

Of the total interest-bearing non-current receivables at 31 December 2023 USD 2,434 million is due later than five years. USD 11,729

million is due within the next five years.

Current receivables from subsidiaries and other equity accounted companies include positive internal bank balances of USD 1,593

million at 31 December 2023. The corresponding amount was USD 332 million at 31 December 2022.

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,822

12,350

Interest-bearing securities 

10,884

17,116

Financial investments

28,706

29,466

Interest-bearing securities per debtor category 

At 31 December

(in USD million)

2023

2022

Public Sector

1,405

2,982

Banks

5,820

9,280

Credit undertakings

593

1,048

Private Sector - Other

3,065

3,806

Total Interest-bearing securities

10,884

17,116

Current financial investments in Equinor ASA are accounted for at amortised cost. For more information about financial instruments by

category, see note 2 Financial risk management and measurement of financial instruments.

In 2023, interest-bearing securities were split in the following currencies: NOK (44%), EUR (19%), SEK (15%), USD (11%), AUD (9%),

and GBP (2%). Time deposits were split in EUR (47%), NOK (42%) and USD (11%). In 2022, interest-bearing securities were split in:

EUR (32%), USD (27%), NOK (21%), SEK (11%), DKK (6%), GBP (2%) and AUD (1%) while time deposits were split in: EUR (48%),

NOK (39%) and USD (13%).

Current liabilities to subsidiaries and other equity accounted companies

Liabilities to subsidiaries and other equity accounted companies of USD 33,954 million at 31 December 2023 and USD 59,587 million

at 31 December 2022 mainly relates to Equinor group’s internal bank arrangements.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 249

12 Inventories

At 31 December

(in USD million)

2023

2022

Crude oil

1,157

1,244

Petroleum products

417

505

Other

6

22

Inventories

1,580

1,771

13 Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables

7,371

10,624

Other receivables

3,693

3,566

Trade and other receivables

11,064

14,190

Other receivables mainly consist of collateral receivables. Total collateral receivables amount to USD 2,120

million in 2023 and USD 2,902 million in 2022. This is mainly related to cash paid as security for a portion of

Equinor’s credit exposure.

14 Cash and cash equivalents

At 31 December

(in USD million)

2023

2022

Cash at banks

88

166

Time deposits

1,253

836

Money market funds

1,875

3,106

Interest-bearing securities

2,547

3,263

Collateral deposits

423

2,833

Cash and cash equivalents

6,187

10,204

Collateral deposits consist of restricted cash and cash equivalents pledged as collateral related to trading activities. Collateral deposits

are related to certain requirements set out by exchanges where Equinor ASA is trading. The terms and conditions related to these

requirements are determined by the respective exchanges.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 250

15 Equity and shareholders

Change in equity

(in USD million)

2023

2022

Shareholders’ equity at 1 January

50,914

37,428

Net income/(loss)

11,681

27,546

Actuarial gain/(loss) defined benefit pension plans

(211)

356

Foreign currency translation effects

(377)

(2,389)

Dividend

(10,032)

(9,061)

Share buy-back 

(5,685)

(3,380)

Share of OCI from equity accounted investments

(113)

424

Value of stock compensation plan

(3)

(10)

Total equity at 31 December

46,173

50,914

The accumulated foreign currency translation effect as of 31 December 2023 decreased total equity by USD 3,831 million. 

At 31 December 2022, the corresponding effect was a decrease in total equity of USD 3,453 million. The foreign currency translation

adjustments relate to currency translation effects from subsidiaries with functional currencies other than USD.

Common stock

Number of shares

NOK per value

At 31 December 2023

Common stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares/Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Treasury shares/Share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

There is only one class of shares and all the shares have the same voting rights.

Share buy-back programme

Based on the authorisation from the annual general meeting on 10 May 2023, the Board of directors has, on a quarterly basis,

decided on share buy-back tranches. The 2023 programme was up to USD 6 billion, including shares to be redeemed from the

Norwegian State.

During 2023, four tranches of in total USD 6 billion were launched, including shares to be redeemed from the Norwegian State. The

acquisition of the fourth tranche in the open market was finalised in January 2024. As of 31 December 2023, USD 410 million of the

fourth tranche had been purchased in the open market, of which USD 388 million had been settled. Due to an irrevocable agreement

with a third party, the remaining order of USD 162 million is accrued for and classified as Trade, other payables and provisions.

In order to maintain the Norwegian State’s ownership share in Equinor, a proportionate share of the second, third and fourth tranche

of the 2022 programme as well as the first tranche of the 2023 programme was redeemed and annulled after approval by the annual

general meeting on 10 May 2023. The liability to the Norwegian State of USD 3.705 billion (NOK 39.071 billion) was settled in June

2023.

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 251

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Employees' share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

In 2023 and 2022, treasury shares were purchased to employees participating in the share saving plan for USD 68 million and USD

72 million, respectively. For further information, see note 5 Share-based compensation.

For information regarding the 20 largest shareholders in Equinor ASA, please see Major shareholders in section 5.1 Shareholder

information.

16 Finance debt

Non-current finance debt

At 31 December

(in USD million)

2023

2022

Unsecured bonds

24,380

26,612

Unsecured loans

71

76

Total 

24,451

26,688

Non-current finance debt due within one year

2,400

2,547

Non-current finance debt

22,051

24,141

Weighted average interest rate (%)

3.36

3.29

Equinor ASA uses currency swaps to manage foreign currency exchange risk on its non-current financial liabilities. For information

about the Equinor Group and Equinor ASA´s interest rate risk management, see note 4 Financial risk and capital management in the

Consolidated financial statements and note 2 Financial risk management and measurement of financial instruments in these financial

statements.

No new bonds were issued in 2023.

Substantially all unsecured bond and unsecured bank loan agreements contain provisions restricting future pledging of assets to

secure borrowings without granting a similar secured status to the existing bond holders and lenders.

Out of Equinor ASA total outstanding unsecured bond portfolio, 34 bond agreements contain provisions allowing Equinor to call the

debt prior to its final redemption at par or at certain specified premiums if there are changes to the Norwegian tax laws. The carrying

amount of these agreements is USD 24,076 million at the 31 December 2023 closing currency exchange rate.

Short-term funding needs will normally be covered by the USD 5,000 million US Commercial paper programme (CP) which is backed

by a revolving credit facility of USD 6,000 million, supported by 19 core banks, maturing in 2026. The facility supports secure access

to funding, supported by the best available short-term rating. As of 31 December 2023, the facility has not been drawn.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 252

Non-current finance debt repayment profile

(in USD million)

Repayments

2025

2,414

2026

2,237

2027

2,376

2028

2,095

Thereafter

12,929

Total repayment of non-current finance debt

22,051

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities and other current financial liabilities

3,089

239

Non-current finance debt due within one year

2,400

2,547

Current finance debt

5,488

2,786

Weighted average interest rate (%)

3.75

2.13

Collateral liabilities and other current financial liabilities relate mainly to cash received as security for a portion of Equinor ASA's credit

exposure and outstanding amounts on US Commercial paper (CP) programme. At 31 December 2023, USD 1,895 million was issued

on the CP programme. Corresponding at 31 December 2022 was USD 227 million.

17 Pensions

Equinor ASA is subject to the Mandatory Company Pensions Act, and the company's pension scheme follows the requirements of the

Act. For a description of the pension scheme in Equinor ASA, reference is made to note 22 Pensions in the Consolidated financial

statements.

Employer contribution for pension cost is accrued for in current service cost and for the notional and defined contribution plans. Unpaid

employer contribution is recognised as part of the pension liabilities. 

Net pension cost

Total pension costs amount to USD 374 million in 2023, USD 416 million in 2022 and USD 446 million in 2021. In addition, interest cost and

interest income related to defined benefit plans are included in the Statement of income within Net financial items.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 253

Changes in pension liabilities and plan assets during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,441

8,938

Current service cost

143

181

Interest cost

303

98

Actuarial (gains)/losses and currency effects

308

(1,587)

Changes in notional contribution liability and other effects

56

62

Benefits paid

(274)

(251)

Pension liabilities at 31 December

7,977

7,441

Fair value of plan assets at 1 January

4,946

5,919

Interest income

173

109

Return on plan assets (excluding interest income)

247

(452)

Company contributions

208

100

Benefits paid

(132)

(115)

Foreign currency translation effects

(140)

(615)

Fair value of plan assets at 31 December

5,302

4,946

Net pension liability at 31 December

2,676

2,495

Represented by:

Asset recognised as non-current pension assets (funded plan)

1,234

1,163

Liability recognised as non-current pension liabilities (unfunded plans)

3,909

3,657

Pension liabilities specified by funded and unfunded pension plans

7,977

7,441

Funded

4,068

3,784

Unfunded

3,909

3,657

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 254

Actuarial assumptions and sensitivity analysis

Actuarial assumptions, sensitivity analysis, portfolio weighting and information about pension assets in Equinor Pension are presented

in note 22 Pensions in the Consolidated financial statements for Equinor Group. The number of employees, including pensioners,

related to the main benefit plan in Equinor ASA is 8,670 at end of 31 December 2023 and 8,697 at end of 31 December 2022. In

addition, all employees are members of the early retirement plan (“AFP”) and different groups of employees are members of other

unfunded plans.

Estimated company contributions to be made to Equinor Pension in 2024 is approximately USD 109 million.

18 Provisions and other liabilities

(in USD million)

Non-current portion at 31 December 2022

1,841

Current portion at 31 December 2022

183

Provisions and other liabilities at 31 December 2022

2,024

New or increased provisions and other liabilities

0

Change in estimates

(222)

Amounts charged against provisions and other liabilities

13

Reclassification, transfer and other

(1,346)

Foreign currency translation effects

0

Provisions and other liabilities at 31 December 2023

469

Non-current portion at 31 December 2023

384

Current portion at 31 December 2023

86

Line item Reclassification, transfer and other includes USD 1,347 million related to SDFI liability.

See also comments on provisions in note 21 Other commitments, contingent liabilities and contingent assets

.

19 Trade, other payables and provisions

At 31 December

(in USD million)

2023

2022

Trade payables

2,673

1,331

Non-trade payables, accrued expenses and provisions

1,512

1,665

Payables to equity accounted associated companies and other related parties

1,021

1,041

Trade, other payables and provisions

5,207

4,037

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 255

20 Leases

Equinor ASA leases certain assets, notably transportation vessels, storage facilities and office buildings which are used in operational

activity. Equinor ASA is mostly a lessee in its lease contracts and the leases serve operational purposes rather than as a tool for

financing.

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

1,797

1,696

New leases, including remeasurements and cancellations

428

783

Gross lease payments

(636)

(645)

Lease interest

53

36

Lease repayments 

(584)

(584)

(609)

(609)

Foreign currency translation effects

(21)

(74)

Lease liabilities at 31 December

1,621

1,797

Current lease liabilities

546

528

Non-current lease liabilities

1,074

1,269

Equinor ASA recognised revenues of USD 146 million in 2023 and USD 199 million in 2022 related to lease costs recovered from

other Equinor group entities related to lease contracts being recognised gross by Equinor ASA.

Commitments relating to lease contracts which had not yet commenced at year-end are included within Other long-term commitments

in note 21 Other Commitments, contingent liabilities and contingent assets.

Non-current lease liabilities' maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

576

659

Year 4 and 5

210

257

After 5 years

288

354

Total repayment of non-current lease liabilities

1,074

1,269

Undiscounted contractual lease payments for Equinor's lease liabilities are USD 592 million in 2024, USD 862 million within two to

five years and USD 316 million after five years.

The right of use assets are included within the line item Property, plant and equipment in the balance sheet. See also note 9 Property,

plant and equipment.

21 Other commitments, contingent liabilities and contingent assets

Contractual commitments

Equinor ASA has entered into various long-term agreements for pipeline transportation as well as terminal use, processing, storage

and entry/exit capacity commitments and commitments related to specific purchase agreements. The agreements ensure the rights to

the capacity or volumes in question, but also impose on Equinor the obligation to pay for the agreed-upon service or commodity,

irrespective of actual use. The contracts' terms vary with durations of up to 2060.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 256

Take-or-pay contracts for the purchase of commodity quantities are only included in the table below if their contractually agreed

pricing is of a nature that will or may deviate from the obtainable market prices for the commodity at the time of delivery.

Obligations payable by Equinor ASA to entities accounted for as associates and joint ventures are included gross in the table below.

Obligations payable by Equinor ASA to entities accounted for as joint operations (for example pipelines) and where consequently

Equinor’s share of assets, liabilities, income and expenses (capacity costs) are reflected on a line-by-line basis in the Financial

statements, are included net (i.e. gross commitment less Equinor ASA’s ownership share).

The table below includes USD 931 million related to the non-lease components of lease agreements reflected in the accounts

according to IFRS 16, as well as leases not yet commenced. See note 20 Leases for information regarding lease related

commitments.

Nominal minimum other long-term commitments at 31 December 2023:

(in USD million)

2024

1,084

2025

1,080

2026

811

2027

748

2028

689

Thereafter

5,165

Total other long-term commitments

9,576

Guarantees

Equinor ASA has provided parent company guarantees and also counter-guaranteed certain bank guarantees to cover liabilities of

subsidiaries in countries of operations. Equinor ASA has guaranteed for its proportionate portion of an associate’s long-term bank

debt, payment obligations under the contracts and some third-party obligations, amounting to USD 305 million. The fair value and

book value of the guarantees are immaterial.

Contingencies

Equinor ASA is the participant in certain entities ("DAs") in which the company has unlimited responsibility for its proportionate share

of such entities' liabilities, if any, and participates in certain companies ("ANSs") in which the participants in addition have joint and

several liabilities. For further details, see note 10 Investments in subsidiaries and other equity accounted investments.

Other claims

During the normal course of its business, Equinor ASA is involved in legal proceedings, and several other unresolved claims are

currently outstanding. The ultimate liability or asset in respect of such litigation and claims cannot be determined at this time. Equinor

ASA has provided in its financial statements for probable liabilities related to litigation and claims based on the company's best

judgment. Equinor ASA does not expect that its financial position, results of operations or cash flows will be materially affected by the

resolution of these legal proceedings.

Provisions related to claims and disputes are reflected within note 18 Provisions and other liabilities.

Financial statements and supplements

Parent company financial statements and notes

Equinor 2023 Integrated Annual Report 257

22 Related parties

Reference is made to note 27 Related parties in the Consolidated financial statements for information regarding Equinor ASA’s related

parties. This includes information regarding related parties as a result of Equinor ASA’s ownership structure and also information

regarding transactions with the Norwegian State.

Transactions with group companies

Revenue transactions with related parties are presented in note 3 Revenues. Total intercompany revenues amounted to USD 1.2

billion and USD 2.8 billion in 2023 and 2022, respectively. Intercompany revenues consisted of commodity sales and purchases with

subsidiaries, mainly attributed to sales of crude oil and sales of refined products to Equinor Marketing & Trading (US) Inc. of USD 2.2

billion and USD 2.5 billion in 2023 and 2022, partly offset by net gas purchases from physically settled commodity derivatives with

Danske Commodities A/S of USD 1.2 billion and USD 0.4 billion in 2023 and 2022.

Equinor ASA sells natural gas and pipeline transport on a back-to-back basis to Equinor Energy AS. Similarly, Equinor ASA enters

into certain financial contracts, also on a back-to-back basis with Equinor Energy AS. All of the risks related to these transactions are

carried by Equinor Energy AS and the transactions are therefore not reflected in Equinor ASA's financial statements.

Equinor ASA buys volumes from its subsidiaries and sells them into the market. Total purchases of goods from subsidiaries amounted

to USD 32.9 billion and USD 33.8 billion in 2023 and 2022, respectively. The major part of intercompany purchases of goods is

attributed to Equinor Energy AS, USD 18.5 billion and USD 21.3 billion in 2023 and 2022, respectively and Equinor US Holdings Inc,

USD 9 billion and USD 6.5 billion in 2023 and 2022, respectively.

Expenses incurred by the company, such as personnel expenses, are accumulated in cost pools. Such expenses are allocated in part

on an hours incurred cost basis to Equinor Energy AS, to other group companies, and to licences where Equinor Energy AS or other

group companies are operators. Costs allocated in this manner are not reflected in Equinor ASA's financial statements. Expenses

allocated to group companies amounted to USD 6.6 billion and USD 10.5 billion in 2023 and 2022, respectively. The major part of the

allocation is related to Equinor Energy AS, USD 5.6 billion, and USD 9.6 billion in 2023 and 2022, respectively.

Other transactions

Reference is made to note 27 Related parties in the Consolidated financial statements for information regarding Equinor ASAs

transactions with related parties based on ordinary business operations.

Current receivables and current liabilities from subsidiaries and other equity accounted companies are included in note 11 Financial

assets and liabilities.

Related party transactions with management and management remunerations for 2023 are presented in note 4 Salaries and

personnel expenses.

Financial statements and supplements

Equinor 2023 Integrated Annual Report 258

The board of directors and the chief executive officer approves the consolidated financial statements for the group, the parent

company financial statements for Equinor ASA as of 31 December 2023 and the board of directors’ report. 

12 March 2024

THE BOARD OF DIRECTORS OF EQUINOR ASA

/s/ JON ERIK REINHARDSEN

CHAIR

/s/ ANNE DRINKWATER

DEPUTY CHAIR

/s/ REBEKKA GLASSER HERLOFSEN

/s/ JONATHAN LEWIS

/s/ FINN BJØRN RUYTER

/s/ TOVE ANDERSEN

/s/ HAAKON BRUUN-HANSSEN

/s/ STIG LÆGREID

/s/ PER MARTIN LABRÅTEN

/s/ HILDE MØLLERSTAD

/s/ ANDERS OPEDAL 

PRESIDENT AND CEO

Additional information

Equinor 2023 Integrated Annual Report 259

Additional information

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

Shareholder information

Risk factors

EU Taxonomy for sustainable activities

Additional sustainability information

Statements on this report incl. independent auditor reports

Use and reconciliation of non-GAAP financial measures

Other definitions and abbreviations

Forward-looking statements

Additional information

Equinor 2023 Integrated Annual Report 260

5.1 Shareholder information

Major shareholders

The Norwegian State is the largest shareholder in Equinor. It has a direct ownership interest of 67%, which is managed by the

Norwegian Ministry of Trade, Industry and Fisheries, and a 3.6% indirect interest through the National Insurance Fund

(Folketrygdfondet), totalling 70.6%.

Additional information

Equinor 2023 Integrated Annual Report 261

Equinor has one class of shares, and each share confers one vote at the annual general meeting. The Norwegian State does not

have any voting rights that differ from the rights of other ordinary shareholders.

Pursuant to the Norwegian Public Limited Liability Companies Act, a majority of at least two-thirds of the votes cast at the general

meeting is required to amend our articles of association. As long as the Norwegian State owns more than one-third of our shares,

it is able to prevent any amendments to our articles of association. Since the Norwegian State, acting through the Norwegian

Ministry of Trade, Industry and Fisheries, has more than two-thirds of the shares in the company, it also has the sole power to

amend our articles of association. In addition, as majority shareholder, the Norwegian State has the power to control any decision

at a general meeting that requires a majority vote, including approval of dividend proposed by the BoD and election of the majority

of the corporate assembly which, in turn, has the power to elect the BoD.

The Norwegian State endorses the principles set out in The Norwegian Code of Practice for Corporate Governance,and has

stated that it expects companies in which the State has an ownership interest to adhere to the code. The principle of ensuring

equal treatment of different groups of shareholders is a key element in the State's own guidelines. In companies in which the State

is one of the shareholders, its intention is to exercise the same rights and obligations as any other shareholder and not act in a

manner that has a detrimental effect on the rights or financial interests of other shareholders. In addition to the principle of equal

treatment of shareholders, emphasis is also placed on transparency in relation to the State's ownership and on general meetings

being the correct forum for owner decisions and formal resolutions.

Shareholders at 31st of December 2023

Number of Shares

Ownership in %

1

Government of Norway

2,012,080,085

67.0%

2

Folketrygdfondet

107,381,599

3.6%

3

The Vanguard Group, Inc.

1)

33,351,324

1.1%

4

BlackRock Institutional Trust Company, N.A.

1)

28,866,990

1.0 %

5

T. Rowe Price Associates, Inc.

1)

20,095,889

0.7%

6

DNB Asset Management AS

19,929,666

0.7%

7

Storebrand Kapitalforvaltning AS

19,690,113

0.7%

8

KLP Fondsforvaltning AS

18,220,065

0.6%

9

Arrowstreet Capital, Limited Partnership

1)

17,381,133

0.6%

10

RBC Global Asset Management (UK) Limited

16,892,817

0.6%

11

Dodge & Cox

1)

14,150,538

0.5%

12

Nuveen LLC

1)

13,008,248

0.4%

13

Fidelity Management & Research Company LLC

1)

12,949,739

0.4%

14

State Street Global Advisors (US)

1)

11,824,393

0.4%

15

BlackRock Advisors (UK) Limited

11,130,795

0.4%

16

SAFE Investment Company Limited

10,135,834

0.3%

17

Amundi Asset Management, SAS

9,304,533

0.3%

18

Wellington Management Company, LLP

1)

8,761,910

0.3%

19

Schroder Investment Management Ltd. (SIM)

8,675,563

0.3%

20

Sarasin & Partners LLP

8,360,610

0.3%

1) Shareholders with a US-registered address

Source: Data collected by third party, authorised by Equinor, 31st of December 2023.

Equinor's share incentive plans

Since 2004, Equinor has had share savings plans for its employees. The purpose of these plans is to strengthen the business

culture and encourage loyalty through employees becoming part-owners of the company. As of 31.12.2023, 84% of eligible

employees worldwide participated in share incentive plans.

Through regular salary contributions, employees can invest up to 5% of their base salary in Equinor shares. In addition, the company

provides a contribution of up to a maximum of NOK 1,500 per year (approximately USD 150) to the total share investment made by

employees in Norway. After a holding period of two calendar years following the year of purchase

15

, one extra share is awarded for

each share purchased. Under current Norwegian tax legislation, the share award is a taxable employee benefit, with a value equal to

the value of the shares awarded and taxed at the time of the award.

15

For members of the Corporate Executive Committee, the holding period is three calendar years following the year of purchase.

Additional information

Equinor 2023 Integrated Annual Report 262

Equinor ASA runs a share-based long-term incentive (LTI) plan for approximately 100 employees (comprising executive

committee members, senior vice presidents, and nominated vice presidents). A gross LTI grant is made at a fixed percentage of

the employee’s base salary. Equinor shares are allocated for the net-after-tax amount, to be held in for a period of 36 months. The

gross LTI grant is a taxable employee benefit.

On behalf of the company, the BoD is authorised to acquire Equinor shares on the open market in order to continue the operation

of the share-based incentive plans. This authorisation is valid until 30 June 2024, and it is Equinor’s intention to renew it at the

annual general meeting on 14 May 2024.

Voting rights may not be exercised for shares in Equinor ASA which belong to the company itself or a subsidiary.

Share buy-backs

For the period 2013-2023, the BoD was authorised by the annual general meeting to repurchase Equinor shares on the open

market for subsequent annulment. It is Equinor’s intention to renew this authorisation at the annual general meeting in May 2024.

The annual general meeting on 10 May 2023 authorised the BoD to acquire shares in the open market. The authorisation is valid

until either 30 June 2024 or the annual general meeting in 2024 (whichever is the earliest). A total of 64,861,696 shares were

bought back as part of this 2023 share buy-back programme for USD 1.98 billion. Of the announced share buy-back programme

of USD 6 billion for 2023, 67% will be settled with the Norwegian State in order to keep the State’s ownership share unchanged.

The State share of the first tranche of the 2023 programme was settled in June 2023, while the State share of the second, third

and fourth tranches in 2023 will be settled in July 2024, subject to approval by the annual general meeting in May 2024. 

Additional information

Equinor 2023 Integrated Annual Report 263

Summary of share buy-backs

All share buy-backs have been carried out in the open market and pursuant to the authorisations outlined above. Also, see note

20 Shareholders’ equity and dividends to the Consolidated financial statements for more information.

Period in

which shares

were bought

back

Shares repurchased under AGM mandate for share-based

incentive plans

Shares repurchased under AGM mandate for

subsequent annulment

Number of

shares

repurchase

d

1)

Average

price per

share in

NOK

Total number

of shares

purchased as

part of

programme

Maximum

number of

shares that may

yet be

purchased

under the

programme

authorisation

Number of

shares

repurchased

2

)

Average

price per

share in

NOK

Total number

of shares

bought back

in the market

Maximum

number of

shares that

may yet be

bought back in

the market

under AGM

mandate

3)

Average

price per

share in

NOK

Total number

of shares

repurchased

Jan-23

376,047

311.13

8,403,299

6,796,701

3,434,958

320.63

46,054,130

28,945,870

319.69

3,811,005

Feb-23

375,164

327.86

8,778,463

6,421,537

5,391,501

322.51

51,445,631

23,554,369

322.86

5,766,665

Mar-23

417,673

296.88

9,196,136

6,003,864

5,435,002

312.25

56,880,633

18,119,367

311.15

5,852,675

Apr-23

404,004

306.93

9,600,140

5,599,860

-

-

 - 

94,000,000

306.93

404,004

May-23

492,290

300.94

492,290

10,507,710

5,081,465

298.59

5,081,465

88,918,535

298.80

5,573,755

Jun-23

384,592

322.42

876,882

10,123,118

11,604,252

309.48

16,685,717

77,314,283

309.90

11,988,844

Jul-23

418,680

300.95

1,295,562

9,704,438

3,527,000

311.30

20,212,717

73,787,283

310.20

3,945,680

Aug-23

391,723

321.66

1,687,285

9,312,715

6,337,076

320.98

26,549,793

67,450,207

321.02

6,728,799

Sep-23

352,858

357.08

2,040,143

8,959,857

6,899,000

347.72

33,448,793

60,551,207

348.18

7,251,858

Oct-23

337,998

372.78

2,378,141

8,621,859

3,864,000

358.67

37,312,793

56,687,207

359.80

4,201,998

Nov-23

361,555

354.03

2,739,696

8,260,304

6,192,000

357.13

43,504,793

50,495,207

356.96

6,553,555

Dec-23

387,957

335.09

3,127,653

7,872,347

5,982,000

330.23

49,486,793

44,513,207

330.53

6,369,957

Jan-24

419,574

309.84

3,547,227

7,452,773

4,548,400

318.52

54,035,193

39,964,807

317.79

4,967,974

Total

5,120,115

 322.68

4)

68,296,654

 325.49

4)

 324.14

4)

73,416,769

1)

The shares bought back from February 2023 to January 2024 were acquired on the open market under the buyback programme for shares

to be used in the share-based incentive plans for employees announced 8 February 2023, with duration from 15 February 2023 to 15

January 2024. 

2)

The shares bought back in the market have been bought under the following tranches:

Tranches

Announced

Duration

Maximum total

consideration (USD)*

 Fourth tranche for 2022 

 28 October 2022 

 27 January 2023 

 1,830,000,000 

 First tranche for 2023 

 8 February 2023 

 24 March 2023 

 1,000,000,000 

 Second tranche for 2023 

 4 May 2023 

 25 July 2023 

 1,666,666,667 

 Third tranche for 2023 

 26 July 2023 

 26 October 2023 

 1,666,666,667 

 Fourth tranche for 2023 

 27 October 2023 

 29 January 2024 

 1,666,666,667 

 * Including the State's share 

3)

The maximum number of shares that may yet be bought back in the market from January 2023 to March 2023 refers to the authorisation

granted by the annual general meeting in May 2022. The maximum number of shares that may yet be bought back in the market from May

2023 to January 2024 refers to the authorisation granted by the annual general meeting in May 2023.

4)

Weighted average price per share.

Additional information

Equinor 2023 Integrated Annual Report 264

5.2 Risk factors

The risks discussed below could, separately or in combination, affect our operational and financial performance, the implementation of

our strategy, our reputation and the value of our securities.

Strategic and commercial risks

Prices and markets

Fluctuating prices of oil and natural gas as well as exchange rates and general macroeconomic conditions impact our financial

performance. Generally, Equinor does not have control over the factors that affect market developments and prices.

Uncertainty in global and regional energy supply and demand means that Equinor's long-term plans should take into consideration

many outcomes for how global energy markets may develop. Examples of factors that can affect supply and demand, and

consequently the prices of oil, natural gas, electricity and other energy products include: global and regional economic conditions,

political and regulatory developments, geopolitical tensions, the actions of OPEC+ and other large energy suppliers, the social and

health situation in any country or region, technological advances, availability of energy resources or access to energy-related

acreages, development of supply chains and consumer preferences, including those related to climate issues.

Over recent years, there has been significant volatility in energy prices, triggered by the supply and demand impacts of the Covid-19

pandemic and the post-pandemic recovery, the European security situation, including Russia’s invasion of Ukraine, and its effect on

global energy flows. Hamas' attack on Israel in October 2023 and the subsequent war between the parties, have escalated the

potential for further tension in the Middle East and added to uncertainty and volatility in energy prices.

Energy prices and predominantly oil and natural gas prices are the primary drivers of Equinor’s business results, financial condition

and liquidity, and its ability to finance planned capital expenditures. A significant or prolonged period of low prices could lead to

changes in production, impairment of assets or reassessment of the viability of projects under development and future business

opportunities.

Increases in prices can lead to increased taxes, cost inflation or higher access costs for Equinor.

Fluctuating foreign exchange rates, especially between USD, EUR, GBP and NOK, can have a significant impact on Equinor’s

operational and financial results. A large percentage of Equinor’s revenues and cash receipts are denominated in or driven by USD,

sales of gas and refined products are mainly denominated in EUR and GBP, while a large portion of operating expenses, capital

expenditures and income taxes payable accrue in NOK. The majority of Equinor’s long-term debt has USD exposure. See also the

description of market risk (including commodity price risk and currency risk) in note 4 Financial risk and capital management in the

Consolidated Financial Statements.

Such risks could have a material adverse effect on Equinor’s business, financial condition, and results of operations.

Hydrocarbon resource base and renewable and low carbon opportunities

Changes to Equinor’s hydrocarbon resource base estimates and the ability to access renewable and low-carbon opportunities can

impact future production, revenues, and expenditures as well as delivery of our strategy

.

Our estimates relating to current and future energy resources depend on many factors, variables and assumptions that are beyond

Equinor’s control, and which may prove to be incorrect over time. The reliability of resource estimates depends on the quality and

quantity of Equinor’s geological, technical and economic data together with extensive engineering judgements. Substantial upward or

downward revisions in Equinor’s resources outlook may be required should additional information become available after the initial

estimates were prepared. A substantial downward revision could potentially lead to impairments.

Equinor’s future oil and gas resource base depends on the company’s timely success in accessing, acquiring, and developing

attractive opportunities. If unsuccessful, future production will decline and future revenue will be reduced. Equinor’s access to

resources is impacted by the choices of governments and, outside of Norway, national oil and gas companies. Changes in fiscal terms

and fluctuations in oil and gas prices will have a direct impact on Equinor’s resource base. Proved oil and gas reserves are estimated

based on the US Securities and Exchange Commission (SEC) requirements and may differ substantially from Equinor’s view on

expected reserves and contingent resources.

Equinor’s ability to build material renewable and low-carbon business portfolios depends on access to attractive opportunities where

the right commercial terms are key. Future conditions, along with risks and uncertainties in power, hydrogen and carbon markets as

well as internal factors, will influence our ability to achieve our ambitions relating to renewable energy resources and low-carbon

business.

Additional information

Equinor 2023 Integrated Annual Report 265

Such risks could have a material adverse effect on Equinor’s business, financial condition and results of operations.

Climate change and transition to a lower carbon economy

Policy, legal, regulatory, market and technology developments, including stakeholder sentiment, related to the issue of climate

change, can affect our business plans and financial performance.

Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery and outcomes

associated with Equinor’s strategy.

Stricter climate laws, regulations, and policies as well as adverse litigation outcomes could adversely impact Equinor's financial results

and outlook, including the value of its assets. This might be directly (through regulatory changes towards energy systems free of

unabated fossil fuels, changes in taxation, increased costs or access to opportunities) or indirectly (through changes in consumer

behaviour or technology developments).

Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical range than today.

Equinor applies a default minimum carbon price in investment analysis starting at USD 82 per tonne in 2025, increasing towards USD

115 per tonne by 2030. In countries where the actual or predicted carbon price is higher than our default at any point in time, Equinor

applies the actual or expected cost, such as in Norway where both a CO

2

 tax and the EU Emission Trading System (EU ETS) apply. A

higher carbon price provides an incentive to reduce emissions and increase investment in new low-carbon solutions and technology.

Changing demand for renewable energy and low-carbon technologies, and innovation and technology changes supporting their cost-

competitive development, represent both threats and opportunities for Equinor.

Market development and our ability to reduce costs and capitalise on technology improvements are important but unpredictable risk

factors. Multiple factors in the energy transition contribute to uncertainty in future energy price assumptions, and changes in investor

and societal sentiment can affect our access to capital markets, attractiveness for investors, and potentially restrict access to finance

or increase financing costs.

Strong competition for assets, changing levels of policy support, and different commercial/contractual models may lead to diminishing

returns within the renewable and low-carbon industries and hinder Equinor ambitions. These investments may be exposed to interest

rate risk and inflation risk.

Equinor’s net-zero strategy and climate-related ambitions are responses to challenges and opportunities in the energy transition.

There is no assurance that these ambitions will be achieved or that all stakeholders will accept our approach or methods to set,

measure or reach our ambitions. Successful strategy execution depends on development of new technologies, new value chains,

societal shifts in consumer demand, as well as firm leadership from policy makers. Should societal demands, technological innovation

and policy support from governments not shift in parallel with Equinor’s pursuit of significant greenhouse gas emission reductions and

energy transition investments, our business plans and financial performance may be adversely affected and Equinor may be unable to

fulfil its net-zero strategy and/or meet its climate-related ambitions.

International politics and geopolitical change

Political, economic, and social developments or instability in regions where Equinor has interests and may seek future opportunities

could adversely affect Equinor’s business causing financial loss.

Political instability, civil strife, strikes, insurrections, acts of terrorism, acts of war, sanctions and trade disputes, public health situations

(including pandemics such as Covid-19), adverse and hostile actions against Equinor’s staff, its facilities, its transportation systems

and its digital infrastructure (cyberattacks) may disrupt or curtail Equinor’s operations and business opportunities. These may in turn

lead to a decline in production and otherwise adversely affect Equinor’s business, operations, results and financial condition. Similarly,

Equinor’s response to such situations could lead to claims from partners and relevant stakeholders, litigation, and litigation-related

costs.

Equinor exited all projects in Russia in 2022. The European security situation will continue to impact our business environment

volatility, uncertainty, and complexity for the foreseeable future, including through impacts related to oil and gas supply and demand,

policy response, supply chains and security. The situation in the Middle East remains volatile with potential energy market

implications.

Digital and cyber security

Increasing digitisation and reliance on information technology (IT) and operational technology (OT) means that digital and cyber

disruption could materially impact Equinor’s operations and financial condition.

Damage, disruption or shutdown of digital IT and OT systems can occur due to failures during the operation and maintenance of

software and hardware, databases or components, power or network outages, hardware or software failures, negligence, user error,

or breaches of cyber security.

Additional information

Equinor 2023 Integrated Annual Report 266

Risks from cyber disruption are interconnected, company-wide, and may be linked to third party personnel, practices, hardware,

software and infrastructure. Cyber disruption may arise from factors such as unauthorised access, usage or attacks, computer viruses,

errors or wrongdoing by employees or others who have gained access to Equinor’s or any connected networks and systems, as well

as threats to our assets from insiders who exploit, or intend to exploit, their legitimate access to Equinor’s facilities or networks for

unauthorised purposes. Risks related to cyber disruption may also be impacted by increasing artificial intelligence capabilities.

Digital and cyber-disruption, whether in respect of Equinor’s systems and networks or those of third parties on which Equinor relies,

could result in delayed activities, loss of production, loss of sensitive or personal information, misuse of information or systems, as well

as safety and environmental losses as a result of damage to our physical assets caused by such disruption, and the company could

face associated regulatory actions, legal liability, reputational damage and loss of revenue. Equinor could be required to spend

significant financial and other resources to avoid, limit or remedy the damage caused by a security breach or to repair or replace

networks and information systems, which in turn could affect our financial performance.

See also section 2.2 Safe and secure operations – Performance disclosure – Security incidents.

Project delivery and operations

Uncertainties in development projects and production operations in the Equinor portfolio could prevent Equinor from realising profits

and cause substantial losses.

Oil and gas, renewable, low-carbon and other projects or assets may be curtailed, delayed, cancelled or suspended for many

reasons. Situations such as equipment shortages or failures, natural hazards, unexpected drilling conditions or reservoir

characteristics, irregularities in geological formations, challenging soil conditions, accidents, mechanical and technical difficulties,

power cost and availability, protestor actions, health issues (including pandemics such as Covid-19), new technology implementation

and quality issues might have significant impact. The risk is higher in new and challenging areas such as deep waters or other harsh

environments, and in new value chains. Cost inflation in capital and operational expenditures can negatively affect project deliveries,

results from operations and longer-term financial outcomes.

Equinor’s portfolio of development projects includes a high number of major development-projects as well as “first-off” projects (i.e.

involving new development concepts, operating regions, execution models, partners/contractors, value chains and markets) that

increase portfolio complexity and potentially execution risk.

Equinor’s ability to commercially exploit energy resources and carbon products depends, among other factors, on the availability of

adequate capacity of transportation and/or transmission infrastructure to markets at a commercially viable price. Equinor may be

unsuccessful in its efforts to secure commercially viable transportation, transmission, and markets for all its potential production in a

cost-efficient manner or at all, which in turn could affect our operational and financial performance.

Joint arrangement and contractors

The actions of our partners, contractors and sub-contractors could result in legal liability and financial loss for Equinor.

Many of Equinor’s activities are conducted through joint arrangements and with contractors and sub-contractors which may limit

Equinor’s influence and control over the performance of such operations. If operators, partners, or contractors fail to fulfil their

responsibilities, Equinor can be exposed to financial, operational, safety, security, and compliance risks as well as reputational risks

and risks related to ethics, integrity and sustainability.

Equinor is also exposed to enforcement actions by regulators or claimants in the event of an incident in an operation where it does not

exercise operational control. Operators, partners. and contractors may be unable or unwilling to compensate Equinor for costs

incurred on their behalf or on behalf of the relevant arrangement.

Such risks could impact Equinor’s operational and financial performance, the implementation of its strategy, our reputation and the

value of our securities.

Competition and technological innovation

If competitors move faster or in other directions related to the development and deployment of new technologies and products,

Equinor’s financial performance and ability to deliver on our strategy may be adversely affected

.

Equinor could be adversely affected if we do not remain commercially and technologically competitive to efficiently develop and

operate an attractive portfolio of assets, to obtain access to new opportunities, and to keep pace with deployment of new technologies

and products that can impact our transition to a broad energy company.

Equinor’s financial performance may be negatively impacted by competition from players with stronger financial resources or with

increased agility and flexibility, and from an increasing number of companies applying new business models.

Additional information

Equinor 2023 Integrated Annual Report 267

Ownership and actions by the Norwegian State

The interests of Equinor’s majority shareholder, the Norwegian State, may not always be aligned with the interests of Equinor’s other

shareholders. A change in the Norwegian State’s ownership policy or in the manner in which the Norwegian State exercises its

ownership can impact Equinor’s ability to execute its strategy and deliver on its ambitions or impact Equinor’s financial performance.

The Norwegian State, as our majority shareholder with 67% ownership as of 31 December 2023, has the power to influence the

outcome of any vote of shareholders, including amendments to Equinor’s articles of association (which require the support of two-

thirds of the votes cast at the general meeting) and the election of all non-employee members of the corporate assembly (which

requires a majority of the votes cast). Factors influencing the voting of the Norwegian State could be different from the interests of the

other shareholders.

The Norwegian State has resolved that its shares in Equinor and the State’s Direct Financial Interests in NCS licenses must be

managed in accordance with a coordinated ownership strategy for the Norwegian State’s oil and gas interests. Under this strategy, the

Norwegian State has required Equinor to market the Norwegian State’s oil and gas together with Equinor’s own oil and gas as a single

economic unit and to take account of the Norwegian State’s interests in all decisions that may affect the marketing of these resources.

If the Norwegian State’s coordinated ownership strategy is not adequately implemented, then Equinor’s mandate to sell the

Norwegian State’s oil and gas together with its own oil and gas is likely to be prejudiced which could have an adverse effect on

Equinor’s position in the markets in which it operates

16

.

Any change to the manner in which the Norwegian State exercises its ownership of Equinor could influence Equinor’s ability to

execute its strategy and deliver on its ambitions and could therefore have an adverse effect on our financial performance. 

Policies and legislation

Equinor’s operations in various countries are subject to dynamic legal and regulatory factors that could impact our business plans and

financial performance.

Equinor operates in certain countries which lack well-functioning and reliable legal systems, where the enforcement of contractual

rights is uncertain, and where the governmental, fiscal, and regulatory regimes can change over time or can be subject to unexpected

or rapid change. Such changes could constrain our plans, cause operational delays, increase costs of regulatory compliance, increase

litigation risk, impact the sale of our products, require us to divest or curtail operations, limit access to new opportunities, and affect

provisions for pension, tax, and legal liabilities.

Moreover, if a country in which Equinor operates changes its laws, regulations, policies, or practices relating to energy or the oil and

gas industry, including in response to environmental, social or governance concerns, Equinor’s national and/or international

exploration, development and production activities, and the results of its operations, could be affected. In addition, changes in the tax

laws of the countries in which Equinor operates could have a material adverse effect on liquidity and the results of operations.

Equinor's exploration and production activities undertaken together with national oil companies are subject to a significant degree of

state control. In recent years, governments and national oil companies have in some regions exercised greater authority and imposed

more stringent conditions on energy companies. Intervention by governments could take a variety of forms, such as nationalisation,

expropriation, cancellation, non-renewal, restriction or renegotiation of our interests, assets, and related rights. Equinor could be

subject to the imposition of new contractual obligations, price and exchange controls, tax or royalty increases, payment delays, and

currency and capital transfer restrictions.

Equinor's US operations use hydraulic fracturing, which is subject to a range of federal, state, and local laws. Various US states and

local governments have implemented, or are considering, changes to regulations or increased regulatory oversight of hydraulic

fracturing that could adversely affect Equinor's US onshore business and the demand for its fracturing services.

The ongoing maturation of the regulatory framework and permitting requirements for low-carbon value chains in various countries can

also impact financial outcomes from Equinor’s investment in related technologies, opportunities, and projects.

Equinor incurs, and expects to continue to incur, substantial capital, operating, maintenance and remediation costs relating to

compliance with increasingly complex laws, regulations and obligations related to the protection of the environment and human health

and safety, as well as in response to concerns relating to climate change. Such occurrences could have a materially adverse effect on

Equinor’s operations and opportunities, liquidity, and financial performance.

Financial risks, liquidity and capital management 

Equinor’s business is exposed to liquidity, interest rate, equity and credit risks that could adversely affect the results of Equinor’s

operations, our financial position and ability to operate, as described in note 4 to the Consolidated Financial Statements.

16

See also Equinor’s Report on corporate governance published on equinor.com/reports for further details on State ownership and equal treatment of

shareholders and transactions with close associates.

Additional information

Equinor 2023 Integrated Annual Report 268

Trading and commercial supply activities

Equinor’s trading and commercial supply activities in the commodity markets can lead to financial losses.

Equinor uses financial instruments such as futures, options, over-the-counter (OTC) forward contracts, market swaps and contracts

for differences related to crude oil, petroleum products, natural gas and electricity to manage price differences and volatility. Trading

activities involve elements of forecasting, and Equinor bears the risk of market movements, the risk of losses if prices develop contrary

to expectations, and the risk of default by counterparties.

There is a risk that an individual or group of traders acting for or on behalf of Equinor could act outside of their respective mandates

which could therefore result in financial loss, fines, or loss of licence to operate, including permissions to trade. Should such risks

materialise, they may adversely affect the Group’s financial results and performance.

Workforce capabilities and organisational change 

Equinor may not be able to secure the right level of workforce competence and capacity, or to leverage efficient organisational

operating models, to execute on strategy and operations, which could have an adverse effect on Equinor’s current and future

business and performance.

Equinor depends on workforce capacity and competence to deliver on its strategy, including transition to a broad energy company.

Uncertainties related to the future of the oil and gas industry and the rate of growth of new value chains, the need for new capabilities,

and increased competition for talent, pose a risk to securing the right level of workforce competence and capacity through industry

cycles.

Further, we may implement internal restructuring and changes to our operating model to meet the needs of the oil and gas, renewable

and low-carbon domains, but such changes may not deliver on expectations.

Any such failure to secure the right level of workforce competence and capacity and/or to leverage efficient organisational operating

models could have an adverse effect on Equinor’s current and future business.

Crisis management, business continuity and insurance coverage

Equinor's crisis management and business continuity systems may prove inadequate to limit disruption to our business causing

losses. Equinor’s insurance coverage may not provide adequate protection from losses, with a potential material adverse effect on

Equinor’s financial position.

Our business could be severely affected if Equinor does not respond or is perceived not to have prepared, prevented, responded, or

recovered in an effective and appropriate manner to a crisis or major incident. A crisis or disruption might occur as a result of a

security or cybersecurity incident or if a risk described under Security, safety and environmental risks materialises.

Equinor maintains insurance coverage that includes physical damage to its properties, third-party liability, workers’ compensation and

employers’ liability, general liability, sudden pollution, and other cover. Equinor’s insurance coverage includes deductibles that must

be met prior to recovery and is subject to caps, exclusions, and limitations. There is no assurance that such cover will adequately

protect Equinor against liability from all potential consequences and damages as illustrated by the financial loss for the group related

to the fire at Hammerfest LNG in 2020.

The Equinor group retains parts of its insurable risks in a wholly owned captive insurance company, so insurance recovery outside of

the Equinor group may be limited.

Security, safety and environmental risks

Health, safety and environmental factors

Equinor is exposed to a wide range of risk factors that could result in harm to people, the environment, and our assets, as well as

cause significant losses through business interruption, increased costs, regulatory action, legal liability, and damage our reputation

and social licence to operate.

Risk factors that could lead to impacts on health, safety and the environment include human performance, operational failures, breach

of digital security, detrimental substances, subsurface conditions (including conditions related to hydraulic fracturing), technical

integrity failures, vessel collisions, natural disasters, adverse weather or climatic conditions, physical effects of climate change (see

section 2.2 Profitable portfolio), epidemics or pandemics (such as Covid-19), breach of human rights, structural and organisational

changes and other occurrences. Continuation, resurgence or emergence of a pandemic, could precipitate or aggravate the other risk

factors identified in this report and materially impact Equinor’s operations and financial condition.

These risk factors could result in disruptions of our operations and could, among other things, lead to blowouts, structural collapses,

loss of containment of hydrocarbons or other hazardous materials, fires, explosions and water contamination that cause harm to

people, loss of life or environmental damage. All modes of transportation of hydrocarbons are susceptible to a loss of containment of

Additional information

Equinor 2023 Integrated Annual Report 269

hydrocarbons and other hazardous materials and represent a significant risk to people and the environment. Equinor could also be

subject to civil and/or criminal liability and the possibility of incurring substantial costs, including for remediation if any such health,

safety or environmental risk materialises.

It is not possible to guarantee that the management system or other policies and procedures will be able to identify or mitigate all

aspects of health, safety and environmental risks or that all activities will be carried out in accordance with these systems.

Security breaches

Equinor’s personnel, assets, infrastructure, and operations may be subject to hostile or malicious acts that disrupt our operations,

cause loss of data, harm to people or the environment, and affect Equinor’s financial performance.

Security threats may arise from terrorism, crime, acts of sabotage, armed conflict, civil unrest, maritime crime, insiders and social

engineering or illegal or unsafe activism. A changing geopolitical, political, technological and social context makes these factors

increasingly unpredictable.

Management of security risks, and the application of national security laws or policies, can incur significant costs, restrict our ability to

do business in a particular jurisdiction and limit operations, including our supply chains and the supply of our products. Failure to avoid

security breaches can disrupt Equinor operations, cause loss, misuse or manipulation of data, harm to our people, assets, or the

environment, result in fines or liabilities and impact our reputation and future business, all of which may affect Equinor’s financial

performance.

Equinor could be required to spend significant financial and other resources to avoid, limit or remedy the damage

caused by a security breach, which in turn may adversely affect Equinor’s operational and financial performance.

Compliance and control risks

Supervisions, regulatory reviews and reporting

Supervision, review and sanctions for violations of laws and regulations at the supranational, national and local level may lead to legal

liability, substantial fines, claims for damages, criminal sanctions and other sanctions for noncompliance, and reputational damage.

Applicable laws and regulations include, among others, those relating to financial reporting, taxation, bribery and corruption, securities

and commodities trading, fraud, competition and antitrust, safety and the environment, labour and employment practices and data

privacy rules. The enactment of, or changes to, such laws and regulations could create compliance challenges and increase the

likelihood of a violation occurring.

Equinor is subject to supervision by the Norwegian Ocean Industry Authority (Havtil), whose regulatory authority covers the whole

NCS including offshore-wind as well as petroleum-related plants onshore in Norway. Equinor may become subject to supervision or

be required to report to other regulators internationally, and such supervision could result in audit reports, orders, and investigations.

Equinor is listed on Oslo Børs (OSE) and the New York Stock Exchange (NYSE) and is a reporting company under the rules and

regulations of the US Securities and Exchange Commission (the SEC). Equinor is required to comply with the continuing obligations of

relevant regulatory authorities, and violation of these obligations may result in legal liability, the imposition of fines and other

sanctions.

Equinor is also subject to financial review from financial supervisory authorities such as the Norwegian Financial Supervisory Authority

(FSA) and the SEC. Reviews performed by financial supervisory authorities could result in changes to previously published financial

statements and future accounting practices. In addition, failure of external reporting to report data accurately and in compliance with

applicable standards could result in regulatory action, legal liability, and damage to Equinor’s reputation.

Audits of financial statements could identify material weaknesses or deficiencies in Equinor’s internal control over financial reporting

and cause loss of investor confidence that can potentially impact the share price.

Business integrity and ethical misconduct

Non-compliance with anti-corruption and bribery laws, anti-money laundering laws, competition and antitrust laws, sanctions and trade

restrictions or other applicable laws, or failure to meet Equinor’s ethical requirements, could expose Equinor to legal liability, lead to a

loss of business, loss of access to capital and damage our reputation and social licence to operate.

Equinor is subject to anti-corruption and bribery laws and anti-money laundering laws in multiple jurisdictions, including the Norwegian

Penal code, the US Foreign Corrupt Practices Act and the UK Bribery Act. A violation of such applicable laws could expose Equinor to

investigations from multiple authorities and may lead to criminal and/or civil liability with substantial fines. Incidents of noncompliance

with applicable anti-corruption and bribery laws and regulations and the Equinor Code of Conduct could be damaging to Equinor’s

reputation, competitive position, and shareholder value. Similarly, a breach of human rights due diligence and reporting legislation or a

failure to uphold our human rights policy may lead to fines or damage our reputation and social licence to operate.

Additional information

Equinor 2023 Integrated Annual Report 270

Equinor has a diverse portfolio of projects worldwide and operates in markets and sectors impacted by sanctions and international

trade restrictions. Sanctions and trade restrictions are complex, unpredictable and are often implemented at short notice. While

Equinor remains committed to comply with sanctions and trade restrictions and takes steps to ensure, to the extent possible,

compliance therewith, there can be no assurance that an Equinor entity, officer, director, employee, or agent is not in violation of such

sanctions and trade restrictions. Any such violation, even if minor in monetary terms, could result in substantial civil and/or criminal

penalties and could materially adversely affect Equinor’s business and results of operations or financial condition.

Equinor is subject to competition and antitrust laws in multiple jurisdictions, including the Norwegian Competition Act, the Treaty of the

Functioning of the European Union and the Unites States’ Sherman Act, Clayton Act, HSR Act and Federal Trade Commission Act.

A

violation of such laws could expose Equinor to investigations from multiple authorities and may lead to criminal and/or civil liability with

substantial fines. Incidents of noncompliance with applicable competition and antitrust laws and the Equinor Code of Conduct could be

damaging to Equinor’s reputation, competitive position, and shareholder value.

5.3 EU Taxonomy for sustainable activities

Equinor has implemented the EU Taxonomy disclosure in accordance with EU Regulation 2020/852 and the Delegated Acts. The

regulation establishes criteria to determine whether an economic activity qualifies as environmentally sustainable and specifies

quantitative economic performance indicators to disclose the degree of sustainability. The activities defined to be eligible under the EU

Taxonomy regulations are listed within the delegated acts and continue to evolve with review. 

Net Zero

In order to achieve its ambition to become a net-zero emissions company by 2050, Equinor undertakes emission reducing activities

that are supporting the continued operation of oil and gas production. While these help Equinor towards its ambition, some of these

activities (notably onshore electrification of offshore assets) are not eligible per the EU Taxonomy regulations and therefore are not

visible in our eligibility scores. 

DEFINITIONS

TAXONOMY

ELIGIBLE

: if the activity is described in the regulation*, irrespective of whether it

complies with the technical screening criteria

TAXONOMY

ALIGNED

: if the activity contributes substantially to one or more environmental

objectives, does no significant harm to any of the other objectives, and is carried out in compliance

with minimum safeguards

* EU Regulation 2020/852 and the Delegated Acts

Additional information

Equinor 2023 Integrated Annual Report 271

Key performance indicators

2023

(in USD million)

Turnover

Capex

Opex

Aligned Eligible activity

2

102

0

Eligible & not Aligned activity 

12

1,085

1

Non Eligible activity

106,118

12,030

1,723

Total

106,132

13,217

1,724

Aligned Eligible activity

0.0%

0.8%

0.0%

Eligible & not Aligned activity 

0.0%

8.2%

0.1%

Non Eligible activity

100.0%

91.0%

99.9%

2022

Turnover

Capex

Opex

Aligned Eligible activity

0.0%

1.6%

0.0%

Eligible & not Aligned activity 

0.0%

0.9%

0.0%

Non Eligible activity

100.0%

97.5%

100.0%

The increase of 6.5% in the eligible capex mandatory KPI from 2022 primarily relates to investments in the solar Energy company

BeGreen, Wind Lease in California and the Renewable company Rio Energy during the year. 

Equinor’s aligned activities in 2023 included in the mandatory KPIs above primarily consist of the offshore wind projects Hywind

Tampen and Empire Wind,

and an onshore solar project in Poland. 

The investments in 2023 of BeGreen and the wind lease in California consist of acquisition costs related to future project

developments which were not deemed material for alignment testing in 2023. The investment in the renewable company Rio Energy

in the fourth quarter 2023 will be assessed for alignment in 2024. 

Eligible activity in equity accounted investments

EU Taxonomy regulations exclude contributions to the KPI’s from activities in equity accounted investments. A large proportion of

Equinor’s environmentally sustainable activities are conducted through equity accounted investments and therefore are not evaluated

in the mandatory key performance indicator (KPI) disclosure. To provide more holistic information of the environmentally sustainability

activities of Equinor, a voluntary disclosure including the capex KPI for eligible and aligned equity accounted investments has been

included below. These activities are conducted through both operated and non-operated joint ventures mainly outside the EU

jurisdiction.

Based on the stage of development of the projects, operational activity is limited. Therefore, turnover and opex are not considered

material, and as such have not been included in the voluntary KPI for 2023. Only power production from Triton, our gas to power plant

in the UK, contributed towards a 1% KPI for turnover of eligible activity.

The KPIs have been calculated on a pro rata basis corresponding to Equinor’s share of capex in the joint ventures.

Additional information

Equinor 2023 Integrated Annual Report 272

2023

2022

 Proportion of taxonomy - eligible economic activities in total capex including

equity accounted investments: 

Mandatory

Capex KPI

Voluntary Capex

KPI including

equity

accounted

investments

Mandatory

Capex KPI

Voluntary Capex

KPI including

equity

accounted

investments

1)

Aligned Eligible Activity

Electricity generation from wind power

0.4 %

8.4 %

1.0 %

n/a

Electricity generation using solar photovoltaic technology

0.3 %

0.3 %

0.7 %

n/a

Underground permanent geological storage of CO2

0.0 %

0.4 %

0.0 %

n/a

Transport of CO2

0.0 %

0.1 %

0.0 %

n/a

Total Aligned Eligible Activity

0.8 %

9.2 %

1.6 %

n/a

Eligible and not Aligned activity

Electricity generation from wind power

4.7 %

5.2 %

0.4 %

10.9 %

Electricity generation using solar photovoltaic technology

3.2 %

3.7 %

0.0 %

0.8 %

Underground permanent geological storage of CO2

0.0 %

0.1 %

0.0 %

0.9 %

Storage of electricity

0.3 %

0.3 %

0.5 %

0.5 %

Electricity generation from fossil gaseous fuels

0.0 %

0.2 %

0.0 %

0.1 %

Total Eligible and not Aligned activity

8.2 %

9.5 %

0.9 %

13.2 %

Total

9.0 %

18.6 %

2.5 %

13.2 %

1) Voluntary KPI not split by aligned and not aligned in 2022. All aligned capex from the mandatory KPI is therefore presented as "Eligible

and not aligned" for the voluntary KPI.

During 2023 Equinor continued its investment into wind activity, with larger projects in equity accounted investments such as Dogger

Bank and Empire Wind being tested and recognised as aligned with the taxonomy during the year. 

The increase in total eligible activity mainly corresponds with the increase in the mandatory KPI and relates to acquisitions in the year. 

Additional information

Equinor 2023 Integrated Annual Report 273

Our eligible activities

A development portfolio

The development of the

Hywind/Tampen floating wind farm

intended to provide electricity for the

Snorre and Gullfaks offshore oil and

gas fields

1

 is one of Equinor’s

primary wind projects. 

Equinor is also engaged in offshore

wind projects conducted through

equity accounted investment in UK,

Germany, Poland and the US,

Dogger Bank and Empire Wind for

which Equinor has investments

included both in the mandatory KPI

and in equity accounted

investments.

Equinor has onshore renewables

solar projects in Poland, Denmark

and Brasil covering construction or

operation of electricity generation

facilities that produce electricity

using solar photovoltaic (PV).

The activity consists of storing

electricity from renewable sources to

return to the grid at a later time and

includes battery storage

development projects in the US and

UK. 

Transportation of CO2 and

Underground permanent geological

storage of CO2

These activities consist of the

ongoing Northern Lights project and

Bayou Bend CCS LLC to be

developed in in the US. 

Equinor are engaged in several

Hydrogen development activities

which are undergoing continued

maturation. These activities have no

significant effect on the KPIs for

2023. 

The Triton power plant in the UK

provides electricity during periods of

low output from solar and wind from

a gas turbine (CCGT) that uses

natural gas. Work has started to

prepare the power plant to use up to

30% hydrogen from 2027, with an

ambition to eventually increase to

100% hydrogen. 

Activity present in subsidiaries

Activity in equity accounted investments, and therefore only shown in the voluntary disclosure

1

Electricity generation from wind power contributes directly to the environmental objectives and is not a

transitional or enabling economic activity subject to the assessment of the lock-in effects, even if it would provide for

continuing operation of oil and gas installations. 

Note: Double counting of the relevant amounts of turnover and expenditure across the reporting has been avoided

based on the eligible economic activities included in the KPIs are independent activities.

Additional information

Equinor 2023 Integrated Annual Report 274

Alignment

Alignment testing was conducted over activities in subsidiaries and also those with equity accounted investments during 2023. Testing

was conducted on projects involved in the following activities:

• Electricity generation from wind power

• Electricity generation from solar photovoltaic energy

• Storage of electricity

• Transportation of

CO

2

• Underground storage of

CO

2

When assessing compliance with the Do No Significant Harm criteria the following interpretations and judgments were applied: 

• Climate change adaption - relevant climate-related hazards have been assessed based on a risk 

assessment. 

• Circular economy - durability and recyclability have been assessed where feasible. 

• For DNSH criteria that reflect legal requirements under EU regulations, the technical screening 

criteria are considered met when the operations are conducted within normal, lawful operations, 

comply with emission permits, environmental impact assessments have been performed and necessary action have been taken when

required.

• Where a detailed assessment of the minimum safeguards requirements has not been possible due to the size of the entity, this is not

included in our aligned activities.

Technical screening procedures

Equinor has conducted the assessment of the technical screening criteria in accordance with the Delegated act related to article 8.

For 2023 Equinor’s activity relates to activities within the climate change mitigation objective.

Additional information

Equinor 2023 Integrated Annual Report 275

Equinor have carried out the assessment process as followed: 

●

 Assessment of substantial contribution

o

 Compliance with the technical screening criteria is tested individually for each economic activity unless the criteria

allow compliance to be assessed at the level of the entire economic activity, an operating segment or the group as

a whole. 

o

 All tested activities disclosed met the requirements of the relevant substantial contribution criteria.

●

 Assessment of do no significant harm (DNSH)

o

 The purpose of the do no significant harm assessment is to prevent investment processes, which would focus on a

particular environmental or social objective without sufficient consideration for the other five environmental

objectives. The assessments mainly reflect legal requirements under EU regulations.

o

 See table below for further details.

●

 Assessment minimum safeguards

o

 The minimum safeguards are assessed based on Equinor’s group wide approach to ensuring compliance with the

minimum safeguards. Equinor is committed to respecting human rights in all business processes. To prevent

human right violations, Equinor adhere to external standards and defines its own principles and policies. Equinor

minimum safeguards procedures are based on the United Nations Guiding principles on Business and Human

Rights (UNGPs). Mitigating actions are initiated to respond to any identified risks. 

o

 For the non-operated activities the requirements have been evaluated based on the operators corporate minimum

safeguards policies. 

o

 Compliance with the requirements have been determined by assessing the criteria against the four topics: 

◾

 Human rights, including workers’ rights

◾

 Bribery/Corruption

◾

 Taxation

◾

 Fair competition 

o

 For minor investments in eligible activities the minimum safeguards have been evaluated when possible and

considering Equinor group policies and due diligence conducted. 

o

 For the non-operated activities the requirements have been evaluated based on the operators corporate minimum

safeguards policies. 

An economic activity contributes substantially to climate change mitigation where that activity contributes substantially to

the stabilisation of greenhouse gas concentrations in the atmosphere at a level which prevents dangerous anthropogenic

interference with the climate system consistent with the long-term temperature goal of the Paris Agreement through the

avoidance or reduction of greenhouse gas emissions or the increase of greenhouse gas removals, including through

process innovations or product innovations

Additional information

Equinor 2023 Integrated Annual Report 276

Wind power

Solar power

Storage of electricity

Transportation of CO

2

Underground

permanent geological

storage of CO

2

Climate change adaption

For 2023, Equinor has conducted a climate risk and vulnerability

mapping of the eligible assets covering the climate-related hazards we

consider most relevant. The assessment has been conducted for the

representative Concentration Pathway (RCP) scenario’s RCP 2.6, RCP

4.5 and RCP 8.5 including 10, 30 and 50 years climate projections.

Equinor installations are designed with margins to tolerate a range of

meteorological conditions. No significant changes in the relevant risk

perils based on the scenarios for the tested assets were detected. 

Water and marine resources

In case of construction of offshore wind, the activity must not hamper the

achievement of good environmental status in accordance with EU

regulations. Appropriate measures in accordance with the relevant

criteria and methodological standards are required to prevent or mitigate

impacts related to noise and energy. 

Environmental impact assessments have been conducted and the

activities are conducted within normal lawful operations.

N/A

Circular economy

Availability of and, where feasible, use of equipment and components of

high durability and recyclability which are easy to dismantle and

refurbish have been assessed. Based on the requirement at the time of

investments and current feasibility the tested activities are deemed to be

aligned with the screening criteria. 

N/A

N/A

Pollution prevention

For underground permanent storage of

CO

2,

the activity complies with

Directive 2009/21/EC.

N/A

N/A

N/A

N/A

Biodiversity

For sites/operations located in or near biodiversity sensitive areas, an

appropriate assessment, where applicable, must have been conducted

in accordance with specific EU directives and based on its conclusions

the necessary mitigation measures implemented. 

In case of construction of offshore wind, appropriate measures in

accordance with the criteria and methodological standards set out in

accordance with specific EU directives, must be taken to prevent or

mitigate impacts related to biodiversity and seabed integrity.

Environmental impact assessments have been conducted and the

activities are conducted within normal lawful operations.

 DNSH application for eligible activities 

N/A Not applicable

/

A

Additional information

Equinor 2023 Integrated Annual Report 277

Appendix 1: Reconciliation of denominators to the Consolidated financial statements

Turnover

Total turnover consists of the reported revenue for contracts with customers included in the revenue line item and presented in note 5

Segments to the Consolidated financial statements. Net income/(loss) from equity accounted investments and other income (i.e. gain

on divestment of assets) are excluded from the definition of the mandatory KPI, and not part of the turnover denominator. For Equinor

the KPI denominator related to turnover will be highly impacted by changes in commodity prices.

The denominators are calculated based on reported IFRS Accounting Standards numbers in the Consolidated financial statements.

For Equinor this has the effect that the proceeds from the sale of the Norwegian State’s (SDFI) oil production on the NCS, that

Equinor markets and sells on their behalf (see note 27 Related Parties to the Consolidated financial statements), that is reported on

gross basis and recognised as revenue in the income statement, will have a negative impact on the reported KPI related to taxonomy-

eligible and aligned turnover. Total purchases of oil and natural gas liquids from the Norwegian state amounted to USD 10 billion in

2023 and USD 13 billion in 2022.

Capex

Total capital expenditures consist of additions to property, plant and equipment including right of use assets line item as specified in

note 12 Property, plant and equipment and additions to intangible assets as specified in note 13 Intangible assets to the Consolidated

financial statements. Additions excludes additions and subsequent changes in estimated asset retirement obligations based on policy

interpretation of the delegated act. Capitalised exploration and acquisition costs of oil and gas prospects related to exploration are

recognised as intangible assets, and by interpretation of the Taxonomy regulation, considered to be included the KPI denominator, as

this is a part of Equinor’s ongoing activity (see assessment below). Goodwill acquired through business combinations is excluded from

the capital expenditure KPI.

(in USD million)

Note

2023

2022

Additions to PP&E, intangibles and equity accounted investments

5

14,500

9,994

Less:

Additions to Equity accounted investments

15

(926)

(337)

Goodwill additions through business acquisition

13

(348)

-

Goodwill Additions

13

(9)

(36)

Capex denominator as defined by the EU Taxonomy

13,217

9,621

The definition of the capex KPI includes intangible assets in accordance with IAS 38. Acquired goodwill and capitalised costs

according to the successful efforts method under IFRS 6 is out of the scope of IAS 38. The rationale for excluding IFRS 6 from the

capex KPI is not clearly stated in the Taxonomy regulation. Equinor regards exploration activities as part of the ongoing core activities

and has included capitalised exploration costs in the capex denominator. The exploration costs are not covered by the EU Taxonomy

opex definition and not included in the opex KPI. Capitalised exploration expenditures do not have significant effect on the reported

capex KPIs for the year-end 2023.

Opex

Total operating expenditures under the Taxonomy cover direct non-capitalised costs that relate to research and development, building

renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing

of assets of property, plant and equipment that are necessary to ensure the continued and effective functioning of such assets. 

Other direct expenditures relating to the day-to-day servicing of assets of property includes direct maintenance-related expenses.

Operating expenditures consist of a subset of the operating expenditures in the income statement and does not include any selling,

general and administrative expenditures, depreciation, amortisation, impairment, and exploration expenses.

Appendix 2: Reconciliation to Share of gross capex to REN and LCS

The difference between the mandatory 9% capex KPI as defined within the EU Taxonomy and the 20% REN / LCS Gross capex * is

mainly related to eligible activity in equity accounted investments which is included within the voluntary EU taxonomy KPI. In addition,

additions to right-of-use asset (leasing) are excluded and additions to goodwill are included in the REN / LCS Gross capex * which

differs in treatment to the EU taxonomy KPI.

Additional information

Equinor 2023 Integrated Annual Report 278

Appendix 3

2023 Revenue

SUBSTANTIAL CONTRIBUTION CRITERIA

DOES NOT SIGNIFICANT HARM

Economic activities

Code

2023

Abso

lute

Reve

nue

USD

millio

n

2023

Proportio

n of

Revenue

%

Clim

ate

chan

ge

mitig

ation

%

Clima

te

chan

ge

adapt

ation

%

Water

and

marine

resourc

es %

Circula

r

econo

my %

Polluti

on % 

Biodiver

sity and

ecosyst

ems %

Climat

e

change

mitigati

on

Climate

change

adaptati

on

Water

and

marine

resource

s

Circula

r

econo

my

Pollut

ion

Biodiver

sity and

ecosyste

ms

Minimu

m

safegua

rds

2022

Taxonom

y-aligned

proportio

n of

Revenue

%

Categor

y

(enablin

g

activity)

Category

(transitio

nal

activity)

A. TAXONOMY-ELIGIBLE ACTIVITIES (A.1. +

A.2.)

A.1. Environmentally sustainable activities

(Taxonomy-aligned)

Electricity generation from wind power

D35.11

0 

0.0 %

100

%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

0%

Electricity generation using solar photovoltaic

technology

F42.22

 (2)

0.0 %

100

%

0%

0%

0%

0%

0%

Y

Y

N/A

Y

N/A

Y

Y

0%

Storage of electricity

0 

0.0 %

100

%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

0%

E

Revenue of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

 (2)

0.0 %

100

%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

Of which enabling

 - 

0.0 %

0%

Of which transitional

 - 

0.0 %

0%

A.2. Taxonomy -eligible but not environmentally

sustainable activities (not Taxonomy -aligned

activities)

EL;N

/EL

EL;N/

EL

EL;N/E

L

EL;N/E

L

EL;N/E

L

EL;N/E

L

Electricity generation from wind power

D35.11

 (11)

0.0 %

100

%

0%

0%

0%

0%

0%

0%

Electricity generation using solar photovoltaic

technology

F42.22

 (1)

0.0 %

100

%

0%

0%

0%

0%

0%

0%

Storage of electricity

0 

0.0 %

100

%

0%

0%

0%

0%

0%

0%

Revenue of Taxonomy-eligible but not

environmentally sustainable activities (not Taxonomy-

aligned activities) (A.2)

 (12)

0.0 %

100

%

0%

0%

0%

0%

0%

0%

B. TAXONOMY NON-ELIGIBLE ACTIVITIES

Revenue of Taxonomy-non-eligible activities (B)

(106,

118)

100.0 %

Total (A+B)

(106,

132)

100.0 %

2023 Capex

Additional information

Equinor 2023 Integrated Annual Report 279

SUBSTANTIAL CONTRIBUTION

CRITERIA

DOES NOT SIGNIFICANT HARM

Economic activities

Code

2023

Absolut

e

Capex

USD

million

2023

Proportio

n of

Capex %

Climate

change

mitigati

on %

Clim

ate

chan

ge

adap

tatio

n %

Wate

r and

marin

e

resou

rces

%

Circul

ar

econ

omy

%

Pollut

ion % 

Biodiv

ersity

and

ecosy

stems

%

Climat

e

change

mitigati

on

Climate

change

adaptat

ion

Water

and

marine

resourc

es

Circula

r

econo

my

Polluti

on

Biodiver

sity and

ecosyste

ms

Minimu

m

safegua

rds

2022

Taxonomy-

aligned

proportion of

Capex %

Categor

y

(enablin

g

activity)

Category

(transitio

nal

activity)

A. TAXONOMY-ELIGIBLE ACTIVITIES (A.1. +

A.2.)

A.1. Environmentally sustainable activities

(Taxonomy-aligned)

Electricity generation from wind power

D35.11

58 

0.4 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

1.0%

Electricity generation using solar photovoltaic

technology

F42.22

44 

0.3 %

100%

0%

0%

0%

0%

0%

Y

Y

N/A

Y

N/A

Y

Y

0.7%

Storage of electricity

0 

0.0 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

0%

E

Capex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

102 

0.8 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

1.6%

Of which enabling

 - 

0%

0%

Of which transitional

 - 

0%

0%

A.2. Taxonomy -eligible but not environmentally

sustainable activities (not Taxonomy -aligned

activities)

EL;N/E

L

EL;N

/EL

EL;N/

EL

EL;N/

EL

EL;N/

EL

EL;N/

EL

Electricity generation from wind power

D35.11

622 

4.7 %

100%

0%

0%

0%

0%

0%

0.4%

Electricity generation using solar photovoltaic

technology

F42.22

418 

3.2 %

100%

0%

0%

0%

0%

0%

0.0%

Storage of electricity

45 

0.3 %

100%

0%

0%

0%

0%

0%

0.5%

Capex of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy -aligned

activities) (A.2)

1,085 

8.2 %

100%

0%

0%

0%

0%

0%

0.9%

B. TAXONOMY NON-ELIGIBLE ACTIVITIES

Capex of Taxonomy-non-eligible activities (B)

12,030 

91.0 %

Total (A+B)

13,217 

100.0 %

Additional information

Equinor 2023 Integrated Annual Report 280

2023 Opex

SUBSTANTIAL CONTRIBUTION CRITERIA

DOES NOT SIGNIFICANT HARM

Economic activities

Code

2023

Absol

ute

Opex

USD

million

2023

Proporti

on of

Opex %

Climat

e

chang

e

mitiga

tion %

Climate

change

adaptati

on %

Water

and

marine

resourc

es %

Circular

econom

y %

Pollutio

n % 

Biodive

rsity

and

ecosyst

ems %

Climat

e

chang

e

mitigati

on

Climate

change

adaptat

ion

Water

and

marine

resour

ces

Circul

ar

econo

my

Polluti

on

Biodive

rsity

and

ecosyst

ems

Minimu

m

safegua

rds

2022

Taxonomy-

aligned

proportion of

Opex %

Categor

y

(enablin

g

activity)

Categor

y

(transiti

onal

activity)

A. TAXONOMY-ELIGIBLE ACTIVITIES (A.1. +

A.2.)

A.1. Environmentally sustainable activities

(Taxonomy-aligned)

Electricity generation from wind power

D35.11

0 

0.0 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

0%

Electricity generation using solar photovoltaic

technology

F42.22

0 

0.0 %

100%

0%

0%

0%

0%

0%

Y

Y

N/A

Y

N/A

Y

Y

0%

Storage of electricity

0 

0.0 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

N/A

Y

Y

0%

E

Opex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 

0.0 %

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

Of which enabling

 - 

0.0 %

0%

Of which transitional

 - 

0.0 %

0%

A.2. Taxonomy -eligible but not environmentally

sustainable activities (not Taxonomy -aligned

activities)

EL;N/

EL

EL;N/E

L

EL;N/E

L

EL;N/E

L

EL;N/E

L

EL;N/E

L

Electricity generation from wind power

D35.11

1 

0.1 %

100%

0%

0%

0%

0%

0%

0%

Electricity generation using solar photovoltaic

technology

F42.22

0 

0.0 %

100%

0%

0%

0%

0%

0%

0%

Storage of electricity

0 

0.0 %

100%

0%

0%

0%

0%

0%

0%

Opex of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy -aligned

activities) (A.2)

1 

0.0 %

100%

0%

0%

0%

0%

0%

0%

B. TAXONOMY NON-ELIGIBLE ACTIVITIES

Opex of Taxonomy-non-eligible activities (B)

1,723 

99.9 %

Total (A+B)

1,724 

100%

Additional information

Equinor 2023 Integrated Annual Report 281

5.4 Additional sustainability information

About the sustainability elements of the report

Reporting standards 

This report has been prepared in accordance with the Global Reporting Initiative (GRI) Universal Standards (2021) and GRI

11: Oil and Gas Sector 2021. The report should be read in conjunction with the GRI index available at equinor.com, to get an

overview of the full extent of the report. We view this report to be our Communication on Progress to the UN Global Compact

(advanced reporting level). We also use reporting guidance from Ipieca, the global oil and gas industry association for

advancing environmental and social performance across the energy transition, and recommendations from the Task Force on

Climate-related Financial Disclosures. This year’s report has also been informed by the European Sustainability Reporting

Standard as a first step towards compliance with the Corporate Sustainability Reporting Directive.

Assurance

We recognise that the quality of our reported sustainability data can be affected by inherent limitations in accuracy in raw data,

calculation and estimation procedures including assumptions for such purposes, and in manual transfer of data. We strive to

achieve data quality in line with expectations set out in GRI 1 Foundation 2021 and continue our work to improve internal

reporting and control processes in line with the COSO framework for internal control. These processes are laid out in our

internal performance framework. Examples of our internal assurance mechanisms are independent internal audits and

verifications, quarterly reviews of the data at business area and corporate level, and an annual process where all reported

sustainability data are reviewed by named individuals and their relevant leaders confirm, in documented form, that quality

assurance has been performed. This report has been externally assured by EY, with reasonable level of assurance for

selected climate, environment and safety indicators, and a limited level of assurance for the rest of the report, excluding

forward looking information and field-specific reporting. The independent assurance statement, as listed in appendix,

concludes that the report is presented in all material respects, in accordance with the GRI Standards.

Reporting boundaries 

Defining consistent boundaries for sustainability reporting is challenging due to the complexity of ownership and operational

arrangements, such as joint operating agreements. We strive to be consistent and transparent about variations in boundaries

and provide a complete report in line with industry practice. 

●

 Environmental data is, unless otherwise stated, reported on a 100% basis for our operated assets, facilities and

vessels, including subsidiaries and operations where we are the technical service provider, for contracted drilling

rigs and flotels (“operational control basis”), and for service operations vessels (SOV) and crew transfer vessels

(CTV) during operations in REN. 

●

 Scope 1 CO2 emissions and upstream CO2 intensity are reported both on an operational control basis and on

equity basis (financial ownership interest). 

●

 Scope 3 greenhouse gas emissions are reported on the basis of equity (products sold). Maritime emissions are

reported from maritime vessels under Equinor contract, including project and supply vessels, drilling rigs, and

tankers transporting both Equinor and third-party volumes. 

●

 Scope 3 emissions related to business travel is for Equinor employees only. 

●

 Health and safety incident data is reported for our operated assets, facilities and vessels, including subsidiaries

and operations where we are the technical service provider. These include contracted drilling rigs, flotels, vessels,

projects and modifications, and transportation of personnel and products, using a risk-based approach. 

●

 Economic and energy production data are reported on an equity basis, unless otherwise stated. 

●

 Workforce data covers employees in our direct employment. Temporary employees are not included. 

●

 Human rights data is collected from operated and non-operated assets including from our supply chain. 

Operations acquired or disposed of during the year are included for the period in which we owned them, unless otherwise

stated. Entities that we do not control, but have significant influence over, are included in the form of disclosures of

management approach. The report does not include data from equity interest fields/projects, such as joint ventures, where we

are not operator. Exceptions are for climate data or where specified. 

Restatements 

Historic numbers are sometimes adjusted due to for example changes in reporting principles, changes of calculation factors

used by authorities, or re-classification of incidents after investigations. We restate historic numbers and explain the changes if

the adjustment represents a change of minimum 5% for indicators with reasonable level of assurance, and 10% for indicators

with limited level of assurance.

Additional information

Equinor 2023 Integrated Annual Report 282

Task Force on Climate-related Financial Disclosures (TCFD) reference index 2023 

Equinor aligns its climate-related disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures.

Relevant context and disclosures for each of the TCFD recommendations can be found at several places in the following disclosure

products:

●

Equinor’s 2023 Integrated Annual Report (IR)

●

Sustainability performance data (datahub on Equinor.com) (SPD)

●

The Board statement on corporate governance (BSCG)

●

Equinor’s 2023 CDP response (CDP)

TCFD recommendation

Reference to Equinor disclosure products

Governance – Disclose the organisation’s governance around climate-related risks and opportunities

a) Describe the board’s oversight of

climate-related risks and opportunities.

●

IR 1.9 – Governance and risk management

●

IR 2.2 – Sustainability performance, Low carbon, Net-zero pathway

●

BSCG – Section 9 (The work of the board of directors) and section 10 (Risk

management and internal control)

●

CDP C1 - Governance

b) Describe management’s role in

assessing and managing climate-related

risks and opportunities.

●

IR 1.9 – Governance and risk management

●

IR 2.2 – Sustainability performance, Low carbon, Net-zero pathway

●

CDP C1 – Governance

●

CDP C2 – Risks and opportunities

Strategy – Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s

businesses, strategy, and financial planning where such information is material

a) Describe the climate-related risks and

opportunities the organisation has

identified over the short, medium, and

long term.

●

IR 1.9 – Governance and risk management

●

IR 2.2 – Sustainability performance, Low carbon, Net-zero pathway

●

IR 5.2 – Risk factors

●

CDP C2 – Risks and opportunities

b) Describe the impact of climate-related

risks and opportunities on the

organisation’s businesses, strategy, and

financial planning.

●

IR 1.5 – Our strategy

●

IR 1.6 – Progress on our Energy transition plan in 2023

●

IR 2.0 – Our 2023 performance

●

IR 2.2 – Profitable portfolio, Climate scenario testing

●

IR 2.2 – Profitable portfolio, Physical climate risk

●

IR 2.2 – Sustainability performance, Low carbon, Net-zero pathway

●

IR 3.4 – Marketing, midstream and processing (MMP), including low carbon

solutions

●

IR 3.5 – Renewables 

●

IR 4.1 Consolidated financial statements of the Equinor group – Notes to the

Consolidated financial statements – Note 3: Climate change and energy

transition and Note 14: Impairments, 

●

CDP C2 – Risks and opportunities

●

CDP C3 – Business strategy 

c) Describe the resilience of the

organisation’s strategy, taking into

consideration different climate-related

scenarios, including a 2°C or lower

scenario.

●

IR 1.5 – Our strategy

●

IR 1.6 – Progress on our Energy transition plan in 2023

●

IR 2.2 – Sustainability performance, Profitable portfolio, Climate scenario

testing

●

IR 2.2 – Sustainability performance, Profitable portfolio, Physical climate risk

●

IR 4.1 Consolidated financial statements of the Equinor group – Notes to the

Consolidated financial statements – Note 3: Climate change and energy

transition and Note 14: Impairments,

CDP C3 – Business strategy 

Risk management – Disclose how the organisation identifies, assesses, and manages climate-related risks

a) Describe the organisation’s

processes for identifying and assessing

climate-related risks.

●

IR 1.9 – Governance and risk management

●

IR 2.2 – Sustainability performance, Profitable portfolio, Climate scenario testing

●

IR 2.2 – Sustainability performance, Profitable portfolio, Physical climate risk

●

CDP C2 – Risks and opportunities

b) Describe the organisation’s

processes for managing climate-related

●

IR 1.9 – Governance and risk management

Additional information

Equinor 2023 Integrated Annual Report 283

risks

●

IR 2.2 – Sustainability performance, Profitable portfolio, Climate scenario

testing

●

IR 2.2 – Sustainability performance, Profitable portfolio, Physical climate risk

●

IR 2.2 – Sustainability performance, Net-zero pathway

●

CDP C2 – Risks and opportunities

c) Describe how processes for

identifying, assessing, and managing

climate-related risks are integrated into

the organisation’s overall risk

management.

●

IR 1.9 – Governance and risk management

●

IR 2.2 – Sustainability performance, Net-zero pathway

●

CDP C2 – Risks and opportunities

Metrics and targets – Disclose the metrics and targets used to assess and manage relevant climate-related risks and

opportunities where such information is material

a) Disclose the metrics used by the

organisation to assess climate-related

risks and opportunities in line with its

strategy and risk management process.

●

IR 1.6 – Progress on our Energy transition plan in 2023

●

IR 2.2 – Sustainability performance, Performance 2023, Material topics and 2023

performance

●

IR 2.2 – Sustainability performance, Profitable portfolio, Climate scenario testing

●

IR 2.2 – Sustainability performance, Profitable portfolio, Physical climate risk

●

IR 2.2 – Sustainability performance, Net-zero pathway

●

CDP C4 – Targets and performance

●

SPD Climate

b) Disclose Scope 1, Scope 2, and, if

appropriate, Scope 3 greenhouse gas

(GHG) emissions, and the related risks.

●

IR 1.6 – Progress on our Energy transition plan in 2023

●

IR 2.2 – Sustainability performance, Performance 2023, Material topics and

2023 performance

●

IR 2.2 – Sustainability performance, Net-zero pathway

●

CDP C4 – Targets and performance

●

SPD Climate

c) Describe the targets used by the

organisation to manage climate-related

risks and opportunities and performance

against targets.

●

IR 1.6 – Progress on our Energy transition plan in 2023

●

IR 2.2 – Sustainability performance, Performance 2023, Material topics and

2023 performance

●

IR 2.2 – Sustainability performance, Net-zero pathway

●

CDP C4 – Targets and performance

●

SPD Climate

Additional information

Equinor 2023 Integrated Annual Report 284

Overview of climate ambitions

Ambition

year

Ambitions

Boundary

Scope

Baseline year

2025

Upstream CO2 intensity 7kg CO2/boe

Operational control 100%, upstream

Scope 1 CO2

NA

>30% share of annual gross capex* to renewables and low

carbon solutions

Equinor gross capex*

NA

NA

2030

Net 50% emission reduction

1)

Operational control 100%

Scope 1 and 2 CO2 and CH

4

2015

>50% share of annual gross capex* to renewables and low

carbon solutions

Equinor gross capex*

NA

NA

Reduce net carbon intensity by 20%

2)

Scope 1 and 2 GHG emissions (100% operator basis). Scope 3

GHG emissions from use of sold products (equity production),

net of negative emissions. Energy production (equity)

Scope 1, 2 and 3 CO2 and CH

4

2019

Renewable energy capacity 12-16 GW

Equity basis

Installed capacity (GW)

NA

Upstream CO2 intensity ~6kg CO2/boe

Operational control 100%, upstream

Scope 1 CO2

NA

Reduce absolute emissions in Norway

by 50%

Operational control 100% Norway

Scope 1 and 2 CO2 and CH

4

2005

5-10 million tonnes CO2 transport and

storage capacity per year

Equity basis

NA

NA

Eliminate routine flaring

Operational control 100%

Flared hydrocarbons

NA

Keep methane emission intensity near zero

Operational control 100%

CH

4

2016

Reduce maritime emissions by 50% in Norway

Scope 1 GHG emissions from drilling rigs and floatels. Scope 3

GHG emissions from all vessel contracted by Equinor.

Scope 1 and 3 CO2 and CH

4

2005

2035

30-50 million tonnes CO2 transport and storage capacity per

year

Equity basis

NA

NA

3-5 major industrial clusters for clean hydrogen projects

NA

NA

NA

Reduce net carbon intensity by 40%

2)

Scope 1 and 2 GHG emissions (100% operator basis). Scope 3

GHG emissions from use of sold products (equity production),

net of negative emissions. Energy production (equity)

Scope 1, 2 and 3 CO2 and CH

4

2019

2040

Reduce absolute emissions in Norway by 70%

Operational control 100%, Norway

Scope 1 and 2 CO2 and CH

4

2005

2050

Net-zero emissions and 100% net carbon intensity reduction

2)

Scope 1 and 2 GHG emissions (100% operator basis).

Scope 3 GHG emissions from use of sold products

(equity production), net of negative emissions. Energy

production (equity)

Scope 1, 2 and 3 CO2 and CH

4

2019

Reduce absolute emissions in Norway to near zero

Operational control 100% Norway

Scope 1 and 2 CO2 and CH

4

2005

Reduce maritime emissions by 50% globally

Scope 1 GHG emissions from drilling rigs and floatels. Scope 3

GHG emissions from all vessel contracted by Equinor

Scope 1 and 3 CO2 and CH

4

2008

Additional information

Equinor 2023 Integrated Annual Report 285

90% of these reductions to be met by absolute reductions

For more details, please see the Net-GHG emissions and net carbon intensity methodology note on equinor.com.

Additional information

Equinor 2023 Integrated Annual Report 286

5.5 Statements on this report incl. independent auditor reports

Statement on compliance

Today, the board of directors and the chief executive officer reviewed the 2023 Integrated Annual Report, which includes the board of

directors' report, the Equinor ASA Consolidated and parent company annual financial statements as of 31 December 2023, and the

corporate social responsibility statement. The parts of the 2023 Integrated Annual Report that constitute the board of directors’ report

are indicated under About the Report in the Introduction.

Pursuant to the Norwegian Securities Trading Act section 5-5 with pertaining regulations we confirm to the best of our knowledge that:

●

 the Equinor Consolidated annual financial statements for 2023 have been prepared in accordance with IFRS Accounting

Standards as adopted by the European Union (EU), IFRS Accounting Standards as issued by the International Accounting

Standards Board (IASB) and additional Norwegian disclosure requirements in the Norwegian Accounting Act, and that

●

 the parent company financial statements for Equinor ASA for 2023 have been prepared in accordance with simplified application

of international accounting standards according to the Norwegian Accounting Act §3-9 and regulations regarding simplified

application of international accounting standards issued by the Norwegian Ministry of Finance, and that

●

 the information presented in the financial statements gives a true and fair view of the company's and the group's assets, liabilities,

financial position and results, and that

●

 the board of directors' report gives a true and fair view of the development, performance, financial position, principal risks and

uncertainties of the company and the group.

Additionally, and pursuant to the Norwegian Securities Trading Act section 5-5 (a) we confirm to the best of our knowledge that the

report Payment to governments, as referred to in the Integrated Annual Report, has been prepared in accordance with the

requirements in the Norwegian Accounting Act section 3-3 d and Norwegian Securities Trading Act Section 5-5a with pertaining

regulations.

12 March 2024

THE BOARD OF DIRECTORS OF EQUINOR ASA

/s/ JON ERIK REINHARDSEN

CHAIR

/s/ ANNE DRINKWATER

DEPUTY CHAIR

/s/ REBEKKA GLASSER HERLOFSEN

/s/ JONATHAN LEWIS

/s/ FINN BJØRN RUYTER

/s/ TOVE ANDERSEN

/s/ HAAKON BRUUN-HANSSEN

/s/ STIG LÆGREID

/s/ PER MARTIN LABRÅTEN

/s/ HILDE MØLLERSTAD

/s/ ANDERS OPEDAL 

PRESIDENT AND CEO

Additional information

Equinor 2023 Integrated Annual Report 287

Recommendation of the corporate assembly

Resolution:

At the meeting on March 20, 2024, the corporate assembly discussed the consolidated annual accounts for Equinor ASA and its

subsidiaries, the annual accounts for the parent company Equinor ASA, as well as the board's proposal for the allocation of net

income in Equinor ASA.

The corporate assembly recommends that the consolidated annual accounts, the annual accounts for the parent company Equinor

ASA, and the allocation of net income proposed by the board of directors are approved.

Oslo, 20 March 2024

/s/ JARLE ROTH

Chair of the corporate assembly

Corporate assembly

Jarle Roth

Nils Bastiansen

Finn Kinserdal

Kari Skeidsvoll Moe

Kjerstin Fyllingen

Kjerstin R. Braathen

Mari Rege

Trond Straume

Martin Wien Fjell

Merete Hverven

Helge Aasen

Liv B. Ulriksen

Peter B. Sabel

Trine Hansen Stavland

Ingvild Berg Martiniussen

Berit Søgnen Sandven

Frank I. Gundersen

Per Helge Ødegård

Additional information

Equinor 2023 Integrated Annual Report 288

Independent auditor reports

The report set out below is provided in accordance with law, regulations, and auditing standards and practices generally accepted in

Norway, including International Standards on Auditing (ISAs). Ernst & Young AS (PCAOB ID: 1572) has also issued reports in

accordance with standards of the Public Company Accounting Oversight Board (PCAOB) in the US, which include opinions on the

Consolidated financial statements of Equinor ASA and on the effectiveness of internal control over financial reporting as at 31

December 2023. Those reports are set out on in the 2023 Form 20-

F.

To the Annual Shareholders' Meeting of Equinor ASA

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Equinor ASA (the Company) which comprise the financial statements of the Company

and the consolidated financial statements of the Company and its subsidiaries (the Group). The financial statements of the Company

comprise the balance sheet as at 31 December 2023 and the income statement, statement of comprehensive income, statement of

cash flows and statement of changes in equity for the year then ended and notes to the financial statements, including a summary of

significant accounting policies. The consolidated financial statements of the Group comprise the balance sheet as at 31 December

2023, the income statement, statement of comprehensive income, statement of cash flows and statement of changes in equity for the

year then ended and notes to the financial statements, including material accounting policy information.

In our opinion

●

 the financial statements comply with applicable legal requirements,

●

 the financial statements give a true and fair view of the financial position of the Company as at 31 December 2023 and its

financial performance and cash flows for the year then ended in accordance with simplified application of international

accounting standards according to section 3-9 of the Norwegian Accounting Act,

●

 the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2023

and its financial performance and cash flows for the year then ended in accordance with IFRS Accounting Standards as

adopted by the EU.

Our opinion is consistent with our additional report to the audit committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are

further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of

the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and the International

Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International

Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these

requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1

have been provided.

We have been the auditor of the Company for 5 years from the election by the general meeting of the shareholders on 15 May 2019

for the accounting year 2019.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements for 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming

our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our

audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our

report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to

our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the

procedures performed to address the matters below, provide the basis for our audit opinion on the financial statements.

Additional information

Equinor 2023 Integrated Annual Report 289

Impact of climate change and energy transition on the financial statements

Basis for the key audit matter

As described in Note 3 to the Consolidated Financial Statements, the

effects of the initiatives to limit climate change and the potential

impact of the energy transition are relevant to some of the economic

assumptions in the Company’s estimation of future cash flows.

Climate considerations are included directly in the impairment

assessments by estimating the carbon costs in the cash flows, and

indirectly as the expected effects of the climate change are included

in the estimated commodity prices. As also described in Note 3,

commodity price assumptions applied in value-in-use impairment

testing are based on management’s best estimate, which differs from

the price-set required to achieve the goals of the Paris Agreement as

described in the International Energy Agency (IEA) World Energy

Outlook’s Announced Pledges Scenario, or the Net Zero Emissions

by 2050 Scenario.

The impact of the energy transition and potential restrictions by

regulators, market and strategic considerations may also have an

effect on the estimated production profiles and the economic lifetime

of the Company’s assets and projects. In addition, if the Company’s

business cases for the oil and gas producing assets in the future

should change materially due to governmental initiatives to limit

climate change, it could affect the timing of cessation of the assets

and the asset retirement obligations (ARO).

Auditing management’s estimate of the impact of climate change and

energy transition on the financial statements is complex and involves

a high degree of judgement. Significant assumptions used in such

estimate are commodity prices and carbon costs.

We consider the impact of climate change and energy transition on

the financial statements to be a key audit matter given the

significance of this matter and the complexity and uncertainty in the

estimates and assumptions used by management.

Our audit response

 We obtained an understanding of the Company’s process for

evaluating the impact of climate change and energy transition

on the financial statements. This included testing controls over

management’s review of the significant assumptions

commodity prices and carbon costs.

With the involvement of climate change and sustainability

specialists, we evaluated management’s assessment of the

impact of climate change and energy transition on the financial

statements. Our audit procedures among other comprised the

following:

● We evaluated management’s methodology to factor

climate-related matters into their determination of

future commodity price assumptions and compared

those with external benchmarks

● We evaluated management’s methodology to

determine future carbon costs and compared those

with the current legislation in place in the relevant

jurisdictions and the jurisdictions’ announced pledges

regarding escalation of carbon costs

● We evaluated management’s sensitivity analyses over

its future commodity prices and carbon cost

assumptions by taking into consideration, among

other sources, the Net Zero Emissions by 2050

Scenario and Announced Pledges Scenario estimated

by the International Energy Agency (IEA)

● We evaluated management’s sensitivity analyses over

the effect of performing removal five years earlier than

currently scheduled due to potential governmental

initiatives to limit climate change

● We have also evaluated management’s disclosures

related to the consequences of initiatives to limit

climate change, including the effects of the

Company’s climate change strategy on the

Consolidated Financial Statements and the energy

transition’s effects on estimation uncertainty,

discussed in more detail in Notes 3, 14 and 23

Additional information

Equinor 2023 Integrated Annual Report 290

Recoverable amounts of production plants and oil and gas assets including assets under development

Basis for the key audit matter

As of 31 December 2023, the Company has recognised

production plants and oil and gas assets, including assets under

development, of USD 39,585 million and USD 13,980 million,

respectively, within Property, plant and equipment. Refer to Note

14 to the Consolidated Financial Statements for the related

disclosures. As described in Note 14, determining the recoverable

amount of an asset involves an estimate of future cash flows,

which is dependent upon management’s best estimate of the

economic conditions that will exist over the asset’s useful life. The

asset’s operational performance and external factors have a

significant impact on the estimated future cash flows and

therefore, the recoverable amount of the asset.

Auditing management’s estimate of the recoverable amount of

production plants and oil and gas assets is complex and involves

a high degree of judgement. Significant assumptions used in

forecasting future cash flows are future commodity prices,

currency exchange rates, expected reserves, capital

expenditures, and the discount rate.

These significant assumptions are forward-looking and can be

affected by future economic and market conditions, including

matters related to climate change and energy transition. For more

detail, please refer to the key audit matter related to the Impact of

climate change and energy transition on the financial statements.

Additionally, the treatment of tax in the estimation of the

recoverable amount is challenging, as the Company is subject to

different tax structures that are inherently complex, particularly in

Norway.

We consider the determination of the recoverable amounts of

production plants and oil and gas assets including assets under

development to be a key audit matter given the significance of the

accounts on the balance sheet and the complexity and uncertainty

of the estimates and assumptions used by management in the

cash flow models.

Our audit response

We obtained an understanding, evaluated the design, and tested

the operating effectiveness of controls over the Company’s process

for evaluating the recoverability of production plants and oil and gas

assets including assets under development. This included testing

controls over management’s review of assumptions and inputs to

the assessments of impairment and impairment reversals.

Our audit procedures performed over the significant assumptions

and inputs included, among others, evaluation of the methods and

models used in the calculation of the recoverable amount. We also

evaluated the relevant tax effects based on the local legislation of

the relevant jurisdictions, particularly in Norway, and tested the

clerical accuracy of the models through independently recalculating

the value in use. We involved valuation specialists to assist us with

these procedures. In addition, we compared projected capital

expenditures to approved operator budgets or management

forecasts. For those assets previously impaired, we compared

actual results to the forecasts used in historical impairment

analyses. We also compared expected reserve volumes with

internal production forecasts and external evaluations of expected

reserves and we compared the historical production with

management’s previous production forecasts, with the involvement

of our reserves specialists.

To test price assumptions, we evaluated management’s

methodology to determine future commodity prices and compared

such assumptions to external benchmarks, among other

procedures. We involved valuation specialists to assist in

evaluating the reasonableness of the Company’s assessment of

currency exchange rates and the discount rate, by assessing the

Company’s methodologies and key assumptions used to calculate

the rates and by comparing those rates with external information.

We also evaluated management’s methodology to factor climate-

related matters into their determination of future commodity prices

and carbon cost assumptions. For more detail, please refer to the

key audit matter related to the Impact of climate change and energy

transition on the financial statements.

Additional information

Equinor 2023 Integrated Annual Report 291

Estimation of the asset retirement obligation

Basis for the key audit matter

As of 31 December 2023, the Company has recognised a

provision for decommissioning and removal activities of USD

12,360 million classified within Provisions and other liabilities.

Refer to Note 23 to the Consolidated Financial Statements for the

related disclosures. As described in Note 23, the appropriate

estimates for such obligations are based on historical knowledge

combined with knowledge of ongoing technological developments,

expectations about future regulatory and technological

development and involve the application of judgement and an

inherent risk of significant adjustments. The estimated costs of

decommissioning and removal activities require revisions due to

changes in current regulations and technology while considering

relevant risks and uncertainties.

Auditing management’s estimate of the decommissioning and

removal of offshore installations at the end of the production

period is complex and involves a high degree of judgement.

Determining the provision for such obligations involves application

of considerable judgement related to the assumptions used in the

estimate, the inherent complexity and uncertainty in estimating

future costs, and the limited historical experience against which to

benchmark estimates of future costs. Significant assumptions

used in the estimate are the discount rates and the expected

future costs, which include the underlying assumptions norms and

rates, and time required to decommission and can vary

considerably depending on the expected removal complexity.

These significant assumptions are forward-looking and can be

affected by future economic and market conditions, including

matters related to climate change and energy transition. For more

detail, please refer to the key audit matter related to the Impact of

climate change and energy transition on the financial statements.

We consider the estimation of the asset retirement obligations to

be a key audit matter given the significance of the accounts on the

balance sheet and the complexity and uncertainty of the

assumptions used in the estimate.

Our audit response

We obtained an understanding, evaluated the design, and tested

the operating effectiveness of controls over the Company’s

process to calculate the present value of the estimated future

decommissioning and removal expenditures determined in

accordance with local conditions and requirements. This included

testing controls over management’s review of assumptions

described above, used in the calculation of the ARO.

To test management’s estimation of the provision for

decommissioning and removal activities, our audit procedures

included, among others, evaluating the completeness of the

provision by comparing significant additions to property, plant and

equipment to management’s assessment of new ARO obligations

recognized in the period.

To assess the expected future costs, among other procedures, we

compared day rates for rigs, marine operations and heavy lift

vessels to external market data or existing contracts. For time

required to decommission, we compared the assumptions against

historical data. We compared discount rates to external market

data. With the support of our valuation specialists, we evaluated

the methodology and models used by management to estimate the

ARO and performed a sensitivity analysis on the significant

assumptions. In addition, we recalculated the formulas in the

models.

We also evaluated management’s methodology to factor climate-

related matters into their determination of the timing of cessation

of the assets and the asset retirement obligations. For more detail,

please refer to the key audit matter related to the Impact of climate

change and energy transition on the financial statements.

Additional information

Equinor 2023 Integrated Annual Report 292

Other information

Other information consists of the information included in the annual report other than the financial statements and our auditor’s report

thereon. Management (the board of directors and Chief Executive Officer) is responsible for the other information. Our opinion on the

financial statements does not cover the other information, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information, and, in doing so, consider

whether the board of directors’ report, the statement on corporate governance, the statement on corporate social responsibility and

the report on payments to government contain the information required by applicable legal requirements and whether the other

information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated. If, based on the work we have performed, we conclude that the other information is materially inconsistent with

the financial statements, there is a material misstatement in this other information or that the information required by applicable legal

requirements is not included in the board of directors’ report, the statement on corporate governance, the statement on corporate

social responsibility or the report on payments to government, we are required to report that fact.

We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement on corporate governance, the

statement on corporate social responsibility and the report on payments to governments are consistent with the financial statements

and contain the information required by applicable legal requirements.

Responsibilities of management for the financial statements

Management is responsible for the preparation of the financial statements of the Company that give a true and fair view in accordance

with simplified application of international accounting standards according to section 3-9 of the Norwegian Accounting Act, and for the

preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting

Standards as adopted by the EU. Management is responsible for such internal control as management determines is necessary to

enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as

a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

management either intends to liquidate the Company or the Group, or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material

misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the

audit. We also:

●

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and

perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.

●

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’s

internal control.

●

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by management.

●

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on

the Company’s and the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we

are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such

disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date

of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as

a going concern.

●

 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether

the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

●

 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the

Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and

performance of the group audit. We remain solely responsible for our audit opinion.

Additional information

Equinor 2023 Integrated Annual Report 293

We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant

audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding

independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our

independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit of

the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s

report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be

expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirement

Report on compliance with regulation on European Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of Equinor ASA we have performed an assurance engagement to obtain reasonable

assurance about whether the financial statements included in the annual report, with the file name eqnr20231231NO.zip, have been

prepared, in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the

European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading

Act, which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the

consolidated financial statements.

In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in compliance with

the ESEF Regulation.

Management’s responsibilities

Management is responsible for the preparation of the annual report in compliance with the ESEF Regulation. This responsibility

comprises an adequate process and such internal control as management determines is necessary.

Auditor’s responsibilities

Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects, the financial

statements included in the annual report have been prepared in accordance with the ESEF Regulation. We conduct our work in

accordance with the International Standard for Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or

reviews of historical financial information”. The standard requires us to plan and perform procedures to obtain reasonable assurance

about whether the financial statements included in the annual report have been prepared in accordance with the ESEF Regulation.

As part of our work, we perform procedures to obtain an understanding of the company’s processes for preparing the financial

statements in accordance with the ESEF Regulation. We test whether the financial statements are presented in XHTML-format. We

evaluate the completeness and accuracy of the iXBRL tagging of the consolidated financial statements and assess management’s

use of judgement. Our procedures include reconciliation of the iXBRL tagged data with the audited financial statements in human-

readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Stavanger, 12 March 2024

ERNST & YOUNG AS

Tor Inge Skjellevik

State Authorised Public Accountant (Norway)

(This translation from Norwegian has been prepared for information purposes only.)

Additional information

Equinor 2023 Integrated Annual Report 294

Independent accountant’s assurance report

To the Annual Shareholders' Meeting of Equinor ASA

Scope

We have been engaged by Equinor ASA (the “Company”) to perform an assurance engagement, that will give

●

 Limited assurance, as defined by International Standards on Assurance Engagements, to report on Equinor ASA ’s sustainability

reporting as defined and specified in the Equinor ASA’s GRI Index (see the document GRI Index 2023 on

https://www.equinor.com/sustainability/reporting) (the “Subject Matter for limited assurance”) as for the year ended 31 December

2023.

●

 Reasonable assurance, as defined by International Standards on Assurance Engagements, to report on Equinor ASA’s

sustainability reporting as defined and specified in Table 1, which Equinor ASA has defined in the Company's GRI index (see the

document GRI Index 2023 on https://www.equinor.com/sustainability/reporting) (the “Subject Matter for reasonable assurance”) as

for the year ended 31 December 2023. 

Table 1: Disclosure description and boundary as defined in the GRI index

Disclosure description:

Boundary:

Renewable energy production

Equity basis

Renewable installed capacity

Equity basis

Scope 1 GHG emissions

Operational control

CO

2

 emissions (Scope 1)

Operational control

CH

4

 emissions

Operational control

Scope 2 GHG emissions (location based)

Operational control

Scope 2 GHG emissions (market based)

Operational control

Number of oil spills 

Operational control

Volume of oil spills

Operational control

Oil and gas leakages with a leakage rate of 0.1kg per second or more

[performance indicator]

Operational control

GRI 403-9 (This includes reporting on the performance indicators

“Total serious incident frequency (SIF) [performance indicator]”,

“Actual SIF”, Total recordable injury frequency (TRIF) [performance

indicator]”, “Employee TRIF”, “Contractor TRIF”, “Total fatalities”,

“Employees’ fatalities”, “Contractors’ fatalities”)

Operational control

We did not perform assurance procedures over section “Portfolio robustness” in the Equinor 2023 Integrated Annual Report, or on Equinor’s

reporting on Greenhouse gas (“GHG”) emissions at individual field level presented in Equinor Sustainability Data hub, or on Equinor’s

reporting on “New projects with net positive impact plans (NPI)”. 

Furthermore, we did not perform assurance procedures on the historical information presented for 2018 referred to by Equinor ASA in the

Equinor 2023 Integrated Annual Report.

Other than as described in the first paragraph, which sets out the scope of our engagement, we did not perform assurance procedures on the

remaining information included in the Equinor 2023 Integrated Annual report, and accordingly, we do not express an opinion on this

information. 

Criteria applied by Equinor ASA

In preparing the Subject Matter for limited assurance and the Subject Matter for reasonable assurance (the ”Subject Matters”), Equinor ASA

applied the relevant criteria from the Global Reporting Initiative (GRI) sustainability reporting standards as well as own defined criteria (the

“Criteria”). The Criteria can be accessed at globalreporting.org and in Equinor’s GRI-index and are available to the public. Such Criteria were

Additional information

Equinor 2023 Integrated Annual Report 295

specifically designed for companies and other organizations that want to report their sustainability impacts in a consistent and credible way. As

a result, the information may not be suitable for another purpose. 

Equinor ASA’s responsibilities

The Board of Directors and management are responsible for selecting the Criteria, and for presenting the Subject Matters in accordance with

the Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records

and making estimates that are relevant to the preparation of the Subject Matters, such that they are free from material misstatement, whether

due to fraud or error.

EY’s responsibilities – limited assurance engagement

Our responsibility is to express a conclusion on the presentation of the Subject Matter for limited assurance based on the evidence we have

obtained. 

We conducted our engagement in accordance with the International Standard for Assurance

Engagements Other Than Audits or Reviews of

Historical Financial Information (‘ISAE 3000 (Revised)’)

. This standard requires that we plan and perform our engagement to obtain limited

assurance about whether, in all material respects, the Subject Matter for limited assurance is presented in accordance with the Criteria, and to

issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risk of

material misstatement, whether due to fraud or error. 

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusions.

EY’s responsibilities – reasonable assurance engagement

Our responsibility is to express an opinion on the presentation of the Subject Matter for reasonable assurance based on the evidence we have

obtained. 

We conducted our engagement in accordance with the International Standard for Assurance

Engagements Other Than Audits or Reviews of

Historical Financial Information (‘ISAE 3000 (Revised)’)

. This standard requires that we plan and perform our engagement to obtain

reasonable assurance about whether, in all material respects, the Subject Matter for reasonable assurance is presented in accordance with

the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an

assessment of the risk of material misstatement, whether due to fraud or error. 

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our reasonable assurance opinion.

Our Independence and quality control

We are independent of the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and

the

International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International

Independence Standards)

 (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

EY also applies International Standard on Quality Management 1,

Quality Management for Firms that Perform Audits or Reviews of Financial

Statements, or Other Assurance or Related Services engagements

, which requires that we design, implement and operate a system of quality

management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and

regulatory requirements. 

Description of procedures performed

This engagement is designed to express a) limited assurance on the Subject Matter for limited assurance and b) reasonable assurance on the

Subject Matter for reasonable assurance. 

The GHGs are quantified when preparing the Subject Matters. The quantification process used in preparing the reporting is subject to scientific

uncertainty, which arises because of incomplete scientific knowledge about the measurement of GHGs, including CO

2

 and CH

4

. Additionally,

GHG emissions are subject to estimation and measurement uncertainty resulting from the calculation process used to quantify emissions

within the bounds of existing scientific knowledge. Our verification of these disclosures relates to the criteria for estimation set by local

authorities. 

a) Procedures performed to express a statement with limited assurance

Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable

assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the

assurance that would have been obtained if a reasonable assurance engagement had been performed. Our procedures were designed to

obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a

reasonable level of assurance.

Although we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our

assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or

performing procedures relating to checking aggregation or calculation of data within IT systems.

Additional information

Equinor 2023 Integrated Annual Report 296

A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the Subject Matter for limited

assurance and related information and applying analytical and other appropriate procedures. 

Our procedures included: 

●

 Interviews with key personnel to understand the reporting process for collecting information, collating and reporting the Subject

Matter during the reporting period

●

 Tested on a sample basis the calculation Criteria against the methodologies outlined in the Criteria

●

 Analyses of Subject Matter data 

●

 Comparison, on a sample basis, of Subject Matter data against supporting documentation 

●

 Comparison of the presentation of the Subject Matter with the presentation requirements outlined in the Criteria. 

We believe that our procedures provide us with an adequate basis for our conclusion. We also performed such other procedures as we

considered necessary in the circumstances.

b) Procedures performed to express a statement with reasonable assurance

Procedures to obtain a reasonable assurance level include examining, on a test basis, evidence supporting the quantitative and qualitative

information.

Our procedures included:

●

 Interviews with key personnel to understand the Company’s reporting process for collecting, collating and reporting the Subject

Matter during the reporting period

●

 Tested on a sample basis the calculation Criteria against the methodologies outlined in the Criteria

●

 Analyses of Subject Matter data

●

 Comparison, on a sample basis, of Subject Matter data against supporting documentation 

●

 Comparison of the presentation of the Subject Matter with the presentation requirements outlined in the Criteria. 

●

 Performed digital site visits and interviews with Company’s personnel at a sample of locations in order to gather and review

underlying data and assess the implementation of the processes and controls related to the preparation of the selected safety and

environmental performance indicators

●

 Recalculating of safety and climate disclosures presented in Table 1 presented above, and assessing the reasonableness of the

estimates made by the Company 

We believe that our procedures provide us with an adequate basis for our opinion. We also performed such other procedures as we

considered necessary in the circumstances.

Limited assurance conclusion

Based on our procedures and the evidence obtained, we are not aware of any material modifications that should be made to the Subject

Matter for limited assurance as for the reporting year ended 31 December 2023 in order for it to be in accordance with the Criteria.

Reasonable assurance opinion

In our opinion the Subject Matter for reasonable assurance as for the reporting year ended 31 December 2023 is presented, in all material

respects, in accordance with the Criteria.

Stavanger, 12 March 2024

ERNST & YOUNG AS

Tor Inge Skjellevik

State Authorised Public Accountant (Norway)

(This translation from Norwegian has been prepared for information purposes only.)

Additional information

Equinor 2023 Integrated Annual Report 297

5.6 Use and reconciliation of non-GAAP financial measures

Non-GAAP financial measures, also known as alternative performance measures, are defined as numerical measures that either

exclude or include amounts that are not excluded or included in the comparable measures calculated and presented in accordance

with generally accepted accounting principles (i.e, IFRS Accounting Standards in the case of Equinor). The following financial

measures may be considered non-GAAP financial measures:

a)

 Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital

employed ratio adjusted

b)

 Return on average capital employed (ROACE)

c)

 Organic capital expenditures

d)

 Gross capital expenditures (Gross capex)

e)

 Cash flow from operations after taxes paid (CFFO after taxes paid)

f)

 Net cash flow (previously named Free cash flow)

g)

 Adjusted earnings and adjusted earnings after tax

a) Net debt to capital employed ratio 

In Equinor’s view, net debt ratios provide a more informative picture of Equinor’s financial strength than gross interest-bearing financial

debt.

Three different net debt to capital ratios are provided below: 1) net debt to capital employed, 2) net debt to capital employed ratio

adjusted, including lease liabilities, and 3) net debt to capital employed ratio adjusted.

These calculations are all based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance sheet

and exclude cash, cash equivalents and current financial investments.

The following adjustments are made in calculating the net debt to capital employed ratio adjusted, including lease liabilities and the

net debt to capital employed ratio adjusted: collateral deposits (classified as Cash and cash equivalents in the Consolidated balance

sheet), and financial investments held in Equinor Insurance AS (classified as Current financial investments in the Consolidated

balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP measures. Collateral deposits are

excluded since they relate to certain requirements of exchanges where Equinor’s securities are trading and therefore are presented as

restricted cash and cash equivalents. Financial investments in Equinor Insurance are excluded as these investments are not readily

available for the group to meet short term commitments. These adjustments result in a higher net debt figure and in Equinor’s view

provides a more prudent measure of the net debt to capital employed ratio than would be the case without such exclusions.

Additionally, lease liabilities are further excluded in calculating the net debt to capital employed ratio adjusted.

The accompanying table details the calculations for these non-GAAP measures and reconciles them with the most directly

comparable IFRS Accounting Standards financial measure or measures.

Additional information

Equinor 2023 Integrated Annual Report 298

Calculation of capital employed and net debt to capital employed ratio

For the year ended 31

December

(in USD million)

2023

2022

Shareholders' equity

48,490

53,988

Non-controlling interests

10

1

Total equity

A

48,500

53,989

Current finance debt and lease liabilities

7,275

5,617

Non-current finance debt and lease liabilities

24,521

26,551

Gross interest-bearing debt

B

31,796

32,168

Cash and cash equivalents

9,641

15,579

Current financial investments

29,224

29,876

Cash and cash equivalents and current financial investment

C

38,865

45,455

Net interest-bearing debt before adjustments

B1 = B-C

(7,069)

(13,288)

Other interest-bearing elements

 1)

2,030

6,538

Net interest-bearing debt adjusted, including lease liabilities

B2

(5,040)

(6,750)

Lease liabilities

3,570

3,668

Net interest-bearing debt adjusted

B3

(8,610)

(10,418)

Calculation of capital employed:

Capital employed

A+B1

41,431

40,701

Capital employed adjusted, including lease liabilities

A+B2

43,460

47,239

Capital employed adjusted

A+B3

39,890

43,571

Calculated net debt to capital employed

Net debt to capital employed

(B1)/(A+B1)

(17.1%)

(32.6%)

Net debt to capital employed ratio adjusted, including lease liabilities

(B2)/(A+B2)

(11.6%)

(14.3%)

Net debt to capital employed ratio adjusted

(B3)/(A+B3)

(21.6%)

(23.9%)

1)

The following adjustments are made in calculating the net debt to capital employed adjusted, including lease liabilities ratio and the net

debt to capital employed adjusted ratio: collateral deposits (classified as Cash and cash equivalents in the Consolidated balance sheet),

and financial investments held in Equinor Insurance AS (classified as Current financial investments in the Consolidated balance sheet) are

treated as non-cash and excluded from the calculation of these non-GAAP measures. Collateral deposits are excluded since they relate to

certain requirements of exchanges where Equinor is trading and presented as restricted cash and cash equivalents. Financial investments

in Equinor Insurance are excluded as these investments are not readily available for the group to meet short term commitments. These

adjustments result in a higher net debt figure and in Equinor’s view provides a more prudent measure of the net debt to capital employed

ratio than would be the case without such exclusions.

Additional information

Equinor 2023 Integrated Annual Report 299

b) Return on average capital employed (ROACE)

Return on average capital employed (ROACE) is the ratio of adjusted earnings after tax to the average capital employed adjusted.

The reconciliation for adjusted earnings after tax is presented in section g). Average capital employed adjusted refers to the average

of the capital employed adjusted values as of 31 December for both the current and the preceding year, as presented under the

heading Calculation of capital employed in section a).

Equinor uses ROACE to evaluate performance by measuring how effectively the company employs its capital, whether financed

through equity or debt.

An IFRS Accounting Standards measure most directly comparable to ROACE would be calculated as the ratio of net income/(loss) to

average capital employed that is based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance

sheet, excluding cash, cash equivalents and current financial investments.

ROACE is used as a supplementary measure and should not be viewed in isolation or as an alternative to measures calculated in

accordance with IFRS Accounting Standards including income before financial items, income taxes and minority interest, or net

income, or ratios based on these figures.

Forward-looking ROACE included in this report is not reconcilable to its most directly comparable IFRS Accounting Standards

measure without unreasonable efforts, because the amounts included or excluded from IFRS Accounting Standards measures used

to determine ROACE cannot be predicted with reasonable certainty.

Calculated ROACE based on IFRS Accounting Standards 

31 December

(in USD million, except percentages)

2023

2022

Net income/(loss)

A

11,904

28,744

Average total equity

1

51,244

46,506

Average current finance debt and lease liabilities

6,446

6,001

Average non-current finance debt and lease liabilities

25,536

28,202

- Average cash and cash equivalents

(12,610)

(14,853)

- Average current financial investments

(29,550)

(25,561)

Average net-interest bearing debt

2

(10,178)

(6,210)

Average capital employed

B = 1+2

41,066

40,296

Calculated ROACE based on Net income/loss and capital employed

A/B

29.0%

71.3%

Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted 

31 December

(in USD million, except percentages)

2023

2022

Adjusted earnings after tax

A

10,371

22,680

Average capital employed adjusted

B

41,731

41,134

Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted

A/B

24.9%

55.1%

Additional information

Equinor 2023 Integrated Annual Report 300

c) Organic capital expenditures

Organic capital expenditures represent additions to PP&E, intangibles and equity accounted investments, excluding expenditures

related to acquisitions, leased assets, and other investments with significantly different cash flow patterns. Equinor believes this

measure gives stakeholders relevant information to understand the company’s investments in maintaining and developing its existing

business operations.

Calculation of organic capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to PP&E, intangibles and equity accounted investments

14.5

 10.0 

Acquisition-related additions

 (3.2)

 (0.6)

Right of use asset additions

 (1.1)

 (1.3)

Other additions (with unique cash flow patterns)

Organic capital expenditures

 10.2 

 8.1 

Forward-looking organic capital expenditures included in this report are not reconcilable to its most directly comparable IFRS

Accounting Standards measure without unreasonable efforts, because the amounts excluded from such IFRS Accounting Standards

measure to determine organic capital expenditures cannot be predicted with reasonable certainty.

d) Gross capital expenditures (Gross capex)

Gross capital expenditures represent capital expenditures, defined as Additions to PP&E, intangibles and equity accounted

investments as presented in the financial statements, excluding additions to right of use assets related to leases and capital

expenditures financed through government grants. Equinor adds the proportionate share of capital expenditures in equity accounted

investments not included in Additions to PP&E, intangibles and equity accounted investments. Equinor believes that by excluding

additions to right of use assets related to leases, this measure better reflects the company's investments in the business to drive

growth.

Calculation of gross capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to Property, plant and equipment, Intangibles and Equity accounted companies

14.5

10.0

Less adjustments

0.4

0.4

Gross capital expenditures

14.1

9.6

Forward-looking gross capital expenditures included in this report are not reconcilable to its most directly comparable IFRS

Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from such IFRS Accounting

Standards measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

e) Cash flows from operations after taxes paid (CFFO after taxes paid)

Cash flows from operations after taxes paid represents, and is used by management to evaluate, cash generated from operating

activities after taxes paid, which is available for investing activities, for debt servicing and for distribution to shareholders. Cash flows

from operations after taxes paid is not a measure of our liquidity under IFRS Accounting Standards and should not be considered in

isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Cash flows from operations after

taxes paid is limited and does not represent residual cash flows available for discretionary expenditures.

The table below provides a reconciliation of Cash flows from operations after taxes paid to its most directly comparable IFRS

Accounting Standards measure, Cash flows provided by operating activities before taxes paid and working capital items, as of the

specified dates:

Additional information

Equinor 2023 Integrated Annual Report 301

Cash flow from operations after taxes paid (CFFO after taxes paid)

(in USD million)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

 48,016 

 83,608 

Taxes paid

 (28,276)

 (43,856)

Cash flow from operations after taxes paid (CFFO after taxes paid)

 19,741 

 39,752 

Forward-looking cash flows from operations after taxes paid included in this report are not reconcilable to its most directly comparable

IFRS Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from such IFRS

Accounting Standards measure to determine cash flows from operations after taxes paid cannot be predicted with reasonable

certainty.

f) Net cash flow (previously named Free cash flow)

Net cash flow represents, and is used by management to evaluate, cash generated from operational and investing activities available

for debt servicing and distribution to shareholders. The measure underwent a name change in 2023; however, all other aspects of the

measure remain unchanged. Net cash flow is not a measure of our liquidity under IFRS Accounting Standards and should not be

considered in isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Net cash flow is

limited and does not represent residual cash flows available for discretionary expenditures.

The table below reconciles Net cash flow with its most directly comparable IFRS Accounting Standards measure, Cash flows provided

by operating activities before taxes paid and working capital items, as of the specified dates:

Net cash flow

(in USD billion)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

 48.0 

 83.6 

Taxes paid

 (28.3)

 (43.9)

Cash used/received in business combinations

 (1.2)

 0.1 

Capital expenditures and investments

 (10.6)

 (8.8)

(Increase)/decrease in other interest-bearing items

 (0.1)

 (0.0)

Proceeds from sale of assets and businesses

 0.3 

 1.0 

Net cash flow before capital distribution

 8.2 

 32.1 

Dividends paid

 (10.9)

 (5.4)

Share buy-back

 (5.6)

 (3.3)

Net cash flow

 (8.3)

 23.4 

g) Adjusted earnings and adjusted earnings after tax

Adjusted earnings

 are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in order

to separate out effects that management considers may not be well correlated to Equinor’s underlying operational performance in the

individual reporting period. Management believes adjusted earnings provides an indication of Equinor’s underlying operational

performance in the period and facilitates comparison of operational trends between periods. The calculation of Adjusted earnings was

changed in 2023, as detailed below.

Adjusted earnings after tax

 equals the sum of net operating income/(loss) less income tax in reporting segments and includes

adjustments to operating income to take the applicable marginal tax into consideration. Adjusted earnings after tax excludes net

financial items and the associated tax effects on net financial items. It is based on adjusted earnings less the tax effects on all

elements included in adjusted earnings (or calculated tax on operating income and on each of the adjusting items using an estimated

marginal tax rate). In addition, tax effects related to tax exposure items not related to the individual reporting period are excluded from

adjusted earnings after tax. Management believes adjusted earnings after tax provides an indication of Equinor’s underlying

operational performance and facilitates comparisons of operational trends between periods as it reflects the tax charge associated

with operational performance excluding the impact of financing. Certain net USD denominated financial positions are held by group

companies that have a USD functional currency that is different from the currency in which the taxable income is measured. As

currency exchange rates change between periods, the basis for measuring net financial items for IFRS Accounting Standards will

Additional information

Equinor 2023 Integrated Annual Report 302

change disproportionally with taxable income which includes exchange gains and losses from translating the net USD denominated

financial positions into the currency of the applicable tax return. Therefore, the effective tax rate may be significantly higher or lower

than the statutory tax rate for any given period. Adjusted taxes included in adjusted earnings after tax should not be considered

indicative of the amount of current or total tax expense (or taxes payable) for the period.

Adjusted earnings and adjusted earnings after tax are supplementary measures and should not be viewed in isolation or as

substitutes for net operating income/(loss) and net income/(loss), which are the most directly comparable IFRS Accounting Standards

measures. There are material limitations associated with the use of adjusted earnings and adjusted earnings after tax compared with

the IFRS Accounting Standards measures as these non-GAAP measures do not include all the items of revenues/gains or

expenses/losses of Equinor that are needed to evaluate its profitability on an overall basis. Adjusted earnings and adjusted earnings

after tax are only intended to be indicative of the underlying developments in trends of our ongoing operations for the production,

manufacturing and marketing of our products and exclude pre- and post-tax impacts of net financial items. Equinor reflects such

underlying developments in our operations by eliminating the effects of certain items that may not be directly associated with the

period's operations or financing. However, for that reason, adjusted earnings and adjusted earnings after tax are not complete

measures of profitability and should therefore not be used in isolation.

Amended principles for Adjusted earnings with effect from 2023:

Equinor has made the following changes to the items adjusted for within Adjusted earnings:

●

 With effect from 2023, movements in the fair value of commodity derivatives used to manage price risk exposure of future

sale and purchase contracts are excluded from adjusted earnings and deferred until the time of the physical delivery. This

change minimises the effects of timing differences and presents a measure more indicative of underlying economic

performance.

●

 With effect from 2023, the principle used to adjust the valuation of commercial storages is based on the forward price at the

expected realisation date. Prior to this amendment, the valuation adjustment was based on short-term forward prices which,

for some storages, did not correspond to the forward price at the expected realisation date. This change brings the valuation

principle in line with how the corresponding derivative contract used to manage price exposure is valued.

These changes have been applied retrospectively to the comparative figures. The majority of the impact is due to the revised

treatment of commodity derivatives. These changes only affect the MMP reporting segment and currently do not have an impact on

other segments. Equinor deems that these changes lead to a better representation of performance in each period by appropriately

reflecting the economic impact of its risk management activities.

For further information on Adjusted earnings, see note 28 Financial instruments and fair value measurement to the Consolidated

financial statements.

Impact of change

Full year of 2022

MMP segment

As reported

Impact

Restated

Change in Fair Value of derivatives

(149)

1,801

1,651

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

147,599

1,981

149,580

Adjusted earnings/(loss)

2,253

1,981

4,234

Adjusted earnings/(loss) after tax

2,727

(10)

2,717

Impact of change

Full year of 2022

Equinor group

As reported

Impact

Restated

Change in Fair Value of derivatives

(207)

1,801

1,593

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

149,910

1,981

151,891

Adjusted earnings/(loss)

74,940

1,981

76,921

Adjusted earnings/(loss) after tax

22,691

(10)

22,680

Effective tax rates on adjusted earnings

69.7%

0.8%

70.5%

No other line items or segments were affected by the change.

Additional information

Equinor 2023 Integrated Annual Report 303

Adjusted earnings adjust for the following items:

●

Changes in fair value of derivatives

: In the ordinary course of business, Equinor enters into commodity derivative contracts to

manage the price risk exposure relating to future sale and purchase contracts. These commodity derivatives are measured at fair

value at each reporting date, with the movements in fair value recognised in the income statement. By contrast, the sale and

purchase contracts are not recognised until the transaction occurs resulting in timing differences. Therefore, with effect from

2023, the unrealised movements in the fair value of these commodity derivative contracts are excluded from adjusted earnings

and deferred until the time of the physical delivery to minimise the effect of these timing differences. Further, embedded

derivatives within certain gas contracts and contingent consideration related to historical divestments are carried at fair value.

Any accounting impacts resulting from such changes in fair value are also excluded from adjusted earnings, as these fluctuations

are not indicative of the underlying performance of the business.

●

Periodisation of inventory hedging effect:

 Equinor enters into derivative contracts to manage price risk exposure relating to its

commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of

cost or market price. An adjustment is made to align the valuation principles of inventories with related derivative contracts. With

effect from 2023, the adjusted valuation of inventories is based on the forward price at the expected realisation date. This is so

that the valuation principles between commercial storages and derivative contracts are better aligned.

●

Over/underlift

: Over/underlift is accounted for using the sales method and therefore revenues are reflected in the period the

product is sold rather than in the period it is produced. The over/underlift position depends on a number of factors related to our

lifting programme and the way it corresponds to our entitlement share of production. The effect on income for the period is

therefore adjusted to show estimated revenues and associated costs based upon the production for the period to reflect

operational performance.

●

The

operational storage

 is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the

FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or

losses will fluctuate from one period to another and are not considered part of the underlying operations for the period.

●

Impairment and reversal of impairment

 are excluded from adjusted earnings since they affect the economics of an asset for

the lifetime of that asset, not only the period in which it is impaired or the impairment is reversed. Impairment and reversal of

impairment can impact both the exploration expenses and the depreciation, amortisation and net impairments line items.

●

Gain or loss from sales of assets

 is eliminated from the measure since the gain or loss does not give an indication of future

performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is

acquired until it is sold.

●

Eliminations (internal unrealised profit on inventories):

 Volumes derived from equity oil inventory vary depending on several

factors and inventory strategies, i.e. level of crude oil in inventory, equity oil used in the refining process and level of in-transit

cargoes. Internal profit related to volumes sold between entities within the group and still in inventory at period end is eliminated

according to IFRS Accounting Standards (write down to production cost). The proportion of realised versus unrealised gain

fluctuates from one period to another due to inventory strategies and consequently impacts net operating income/(loss). Write

down to production cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit

related to equity volumes is excluded in adjusted earnings.

●

Other items of income and expense

 are adjusted when the impacts on income in the period are not reflective of Equinor’s

underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions, but they may

also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. However, other

items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully

assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.

●

Change in accounting policy

 are adjusted when the impacts on income in the period are unusual or infrequent, and not

reflective of Equinor’s underlying operational performance in the reporting period.

Additional information

Equinor 2023 Integrated Annual Report 304

Items impacting net operating

income/(loss) in the full year of 2023

Equinor

group

Exploratio

n &

Productio

n Norway

Exploratio

n &

Productio

n

Internatio

nal

Exploratio

n &

Productio

n USA

Marketing

,

Midstrea

m &

Processin

g

Rene-

wables

Other

(in USD million)

Total revenues and other income

 107,174 

 38,340 

 7,032 

 4,319 

 105,908 

 17 

 (48,442)

Adjusting items

 (1,303)

 (128)

 (76)

 (32)

 (1,049)

 (17)

 (1)

Changes in fair value of derivatives

 (711)

 128 

 (96)

 - 

 (743)

 - 

 - 

Periodisation of inventory hedging effect

 (183)

 - 

 - 

 - 

 (183)

 - 

 - 

Impairment from associated companies

 1 

 - 

 - 

 - 

 - 

 1 

 - 

Over-/underlift

 10 

 (35)

 45 

 - 

 - 

 - 

 - 

Other adjustments

 (100)

 - 

 - 

 - 

 (100)

 - 

 - 

Gain/loss on sale of assets

 (319)

 (221)

 (25)

 (32)

 (23)

 (17)

 (1)

Adjusted total revenues and other income

 105,871 

 38,213 

 6,956 

 4,286 

 104,860 

 (0)

 (48,443)

Purchases [net of inventory variation]

 (48,175)

 (0)

 (70)

 - 

 (95,769)

 0 

 47,664 

Adjusting items

 173 

 - 

 - 

 - 

 36 

 - 

 137 

Operational storage effects

 41 

 - 

 - 

 - 

 41 

 - 

 - 

Provisions

 (5)

 - 

 - 

 - 

 (5)

 - 

 - 

Eliminations

 137 

 - 

 - 

 - 

 - 

 - 

 137 

Adjusted purchases [net of inventory

variation]

 (48,003)

 (0)

 (70)

 - 

 (95,733)

 0 

 47,801 

Operating and administrative expenses 

 (11,800)

 (3,759)

 (2,176)

 (1,178)

 (4,916)

 (462)

 692 

Adjusting items

 260 

 29 

 261 

 22 

 (72)

 20 

 - 

Over-/underlift

 7 

 29 

 (22)

 - 

 - 

 - 

 - 

Other adjustments

 36 

 - 

 - 

 22 

 - 

 14 

 - 

Gain/loss on sale of assets

 289 

 - 

 283 

 - 

 - 

 6 

 - 

Provisions

 (72)

 - 

 - 

 - 

 (72)

 - 

 - 

Adjusted operating and administrative

expenses 

 (11,540)

 (3,730)

 (1,915)

 (1,156)

 (4,988)

 (442)

 692 

Depreciation, amortisation and net

impairments

 (10,634)

 (5,017)

 (2,433)

 (1,489)

 (1,239)

 (312)

 (143)

Adjusting items

 1,259 

 588 

 310 

 (290)

 343 

 300 

 9 

Impairment

 1,550 

 588 

 310 

 - 

 343 

 300 

 9 

Reversal of impairment

 (290)

 - 

 - 

 (290)

 - 

 - 

 - 

Adjusted depreciation, amortisation and net

impairments

 (9,374)

 (4,429)

 (2,123)

 (1,779)

 (897)

 (12)

 (134)

Exploration expenses

 (795)

 (476)

 (20)

 (299)

 - 

 - 

 - 

Adjusting items

 61 

 - 

 36 

 25 

 - 

 - 

 - 

Impairment

 61 

 - 

 36 

 25 

 - 

 - 

 - 

Adjusted exploration expenses

 (734)

 (476)

 16 

 (274)

 - 

 - 

 - 

Net operating income/(loss)

 35,770 

 29,087 

 2,332 

 1,353 

 3,984 

 (757)

 (229)

Sum of adjusting items

 451 

 490 

 532 

 (277)

 (742)

 303 

 145 

Adjusted earnings/(loss)

 36,220 

 29,577 

 2,863 

 1,076 

 3,242 

 (454)

 (84)

Tax on adjusted earnings

 (25,850)

 (23,083)

 (1,213)

 (304)

 (1,364)

 63 

 51 

Adjusted earnings/(loss) after tax

 10,371 

 6,494 

 1,650 

 773 

 1,877 

 (391)

 (33)

Additional information

Equinor 2023 Integrated Annual Report 305

Items impacting net operating income/(loss)

in the full year of 2022

Equinor

group

Exploratio

n &

Productio

n Norway

Exploratio

n &

Productio

n

Internatio

nal

Exploratio

n &

Productio

n USA

Marketing

,

Midstrea

m &

Processi

ng

Rene-

wables

Other

(in USD million)

Total revenues and other income

 150,806 

 75,930 

 7,431 

 5,523 

 148,105 

 185 

 (86,367)

Adjusting Items

 1,085 

 (487)

 185 

 - 

 1,475 

 (110)

 22 

Changes in fair value of derivatives

 1,593

1)

 (263)

 205 

 - 

 1,651

1)

 - 

 - 

Periodisation of inventory hedging effect

 (168)

1)

 - 

 - 

 - 

 (168)

1)

 - 

 - 

Impairment from associated companies

 1 

 - 

 - 

 - 

 - 

 1 

 - 

Over-/underlift

 510 

 507 

 3 

 - 

 - 

 - 

 - 

Other adjustments

 (0)

 - 

 (22)

 - 

 - 

 - 

 22 

Gain/loss on sale of assets

 (850)

 (731)

 - 

 - 

 (9)

 (111)

 (0)

Adjusted total revenues and other income

 151,891

1)

 75,443 

 7,616 

 5,523 

 149,580

1)

 75 

 (86,345)

Purchases [net of inventory variation]

 (53,806)

 0 

 (116)

 (0)

 (139,916)

 - 

 86,227 

Adjusting Items

 (610)

 - 

 - 

 - 

 (33)

 - 

 (577)

Operational storage effects

 (33)

 - 

 - 

 - 

 (33)

 - 

 - 

Eliminations

 (577)

 - 

 - 

 - 

 - 

 - 

 (577)

Adjusted purchases [net of inventory variation]

 (54,415)

 0 

 (116)

 (0)

 (139,949)

 - 

 85,650 

Operating and administrative expenses

 (10,593)

 (3,782)

 (1,698)

 (938)

 (4,591)

 (265)

 681 

Adjusting Items

 64 

 (54)

 22 

 6 

 75 

 10 

 5 

Over-/underlift

 (41)

 (54)

 13 

 - 

 - 

 - 

 - 

Change in accounting policy

 7 

 - 

 2 

 - 

 - 

 - 

 5 

Gain/loss on sale of assets

 23 

 - 

 7 

 6 

 - 

 10 

 - 

Provisions

 75 

 - 

 - 

 - 

 75 

 - 

 - 

Adjusted operating and administrative

expenses

 (10,530)

 (3,836)

 (1,675)

 (933)

 (4,516)

 (255)

 686 

Depreciation, amortisation and net impairments

 (6,391)

 (4,167)

 (1,731)

 (361)

 14 

 (4)

 (142)

Adjusting Items

 (2,488)

 (819)

 286 

 (1,060)

 (895)

 - 

 - 

Impairment

 1,111 

 3 

 1,033 

 - 

 75 

 - 

 - 

Reversal of impairment

 (3,598)

 (821)

 (747)

 (1,060)

 (970)

 - 

 - 

Adjusted depreciation, amortisation and net

impairments

 (8,879)

 (4,986)

 (1,445)

 (1,422)

 (881)

 (4)

 (142)

Exploration expenses

 (1,205)

 (366)

 (638)

 (201)

 - 

 - 

 0 

Adjusting Items

 59 

 4 

 65 

 (11)

 - 

 - 

 - 

Impairment

 85 

 4 

 65 

 15 

 - 

 - 

 - 

Reversal of impairment

 (26)

 - 

 - 

 (26)

 - 

 - 

 - 

Adjusted exploration expenses

 (1,146)

 (361)

 (573)

 (212)

 - 

 - 

 0 

Net operating income/(loss)

 78,811 

 67,614 

 3,248 

 4,022 

 3,612 

 (84)

 399 

Sum of adjusting items

 (1,890)

1)

 (1,355)

 559 

 (1,065)

 621

1)

 (100)

 (550)

Adjusted earnings/(loss)

 76,921

1)

 66,260 

 3,806 

 2,957 

 4,234

1)

 (184)

 (151)

Tax on adjusted earnings

 (54,241)

1)

 (51,373)

 (1,248)

 (79)

 (1,517)

1)

 14 

 (38)

Adjusted earnings/(loss) after tax

 22,680

1)

 14,887 

 2,558 

 2,878 

 2,717

1)

 (171)

 (189)

1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value of derivatives' and

'periodisation of inventory hedging effect'.

Additional information

Equinor 2023 Integrated Annual Report 306

5.7 Other definitions and abbreviations

Operational abbreviations

●

 ACG – Azeri-Chirag-Gunashli 

●

 API – American Petroleum Institute

●

 BTC – Baku-Tbilisi-Ceyhan 

●

 CCS – Carbon capture and storage

●

 EMTN – Euro medium-term note

●

 FPSO – Floating production, storage and offload vessel

●

 GHG – Greenhouse gas

●

 GWO – Global Wind Offshore

●

 IOR – Increased oil recovery

●

 LCS – Low carbon solutions

●

 LNG - Liquefied natural gas

●

 NCS - Norwegian continental shelf

●

 NGL – Natural gas liquids

●

 NHO – Norwegian Confederation of Business

●

 NOx – Nitrogen oxide

●

 NZE – Net zero emissions

●

 OTC – Over-the-counter

●

 PDO – Plan for development and operation

●

 PSA – Production sharing agreement

●

 PSC – New York State Public Service Commission

●

 TSP – Technical service provider

Organisational abbreviations

●

 AFP – Agreement-based early retirement plan

●

 AGM – Annual general meeting

●

 ARO – Asset retirement obligation

●

 BAC – Board of Directors’ Audit Committee 

●

 BCC – Board of Directors’ Compensation and Executive Development Committee

●

 BoD – Board of Directors

●

 CEC – Corporate Executive Committee

●

 CMU – Capital Markets Update

●

 EU ETS – EU Emissions Trading System

●

 EEX – European Energy Exchange 

●

 EPA – Economic Planning Assumptions

●

 E&P – Exploration & Production

●

 EPI – Exploration & Production International

●

 EPN – Exploration & Production Norway 

●

 ERM – Enterprise Risk Management

●

 GAAP – Generally Accepted Accounting Principles 

●

 GPS – Global People Survey

●

 HSE – Health, safety and environment 

●

 HOP – Human and Organizational Performance

●

 IASB – International Accounting Standards Board

●

 IEA – International Energy Agency 

●

 IETA – International Emissions Trading Association

●

 IFRS – International Financial Reporting Standards

●

 IOGP – International Association of Oil & Gas Producers

●

 MMP – Marketing, Midstream & Processing

●

 MPE – Norwegian Ministry of Petroleum and Energy

●

 OPEC+ – Organisation of the Petroleum Exporting Countries incl. a number of non-OPEC member countries

●

 PDP – Projects, Drilling and Procurement

●

 REN – Renewables

●

 SEC – Securities and Exchange Commission

●

 SDFI – Norwegian State's Direct Financial Interest

●

 SSEC – Board of Directors’ Safety, Sustainability and Ethics Committee

●

 TDI – Technology, Digital & Innovation

Financial abbreviations 

●

 Capex – Capital expenditure

●

 CE – Capital employed

●

 GDP – Gross domestic product 

●

 Dividends declared – Includes cash dividend and scrip dividend.

Additional information

Equinor 2023 Integrated Annual Report 307

●

 ICE – Intercontinental Exchange

●

 KPI – Key Performance Indicator

●

 ND – Net interest-bearing debt adjusted

●

 NPV – Net Present Value

●

 n/r – Not reported 

●

 NYSE – New York Stock Exchange

●

 NYMEX – New York Mercantile Exchange

●

 OECD – Organisation of Economic Co-Operation and Development

●

 OCI – Other Comprehensive Income

●

 Opex – Operating expense

●

 OSE – Oslo Børs

●

 PP&E – Property, plant and equipment

●

 R&D – Research and development

●

 ROACE – Return on average capital employed

●

 TSR – Total shareholder return

●

 UPC – Unit production cost

●

 WACC – Weighted average cost of capital

●

 WEF – World Economic Forum

Metric abbreviations etc.

●

 bbl – barrel

●

 mbbl – thousand barrels

●

 mmbbl – million barrels

●

 boe – barrels of oil equivalent

●

 mboe – thousand barrels of oil equivalent

●

 mmboe – million barrels of oil equivalent

●

 mmmcf – billion cubic feet

●

 MMBtu – million British thermal units

●

 bcm – billion cubic metres

●

 MW – megawatt

●

 MWh – megawatt hours

●

 GW – gigawatt

●

 GWh – gigawatt hours

●

 TW – terawatt

●

 TWh – terawatt hours

Sustainability abbreviations

●

 CCSA – The Carbon Capture and Storage Association is the trade association promoting the commercial deployment of Carbon Capture,

Utilisation and Storage (CCUS).

●

 CCUS – Carbon capture, utilisation and storage

●

 CSRD – EU Corporate Sustainability Reporting Directive

●

 D&I – Diversity and inclusion

●

 EITI – Extractive Industries Transparency Initiative

●

 ESG – Referring to non-financial reporting topics “Environmental”, “Social” and “Governance”

●

 GRI – Global Reporting Initiative is an independent, international organisation that provide the world’s most widely used standards for

sustainability reporting – the GRI Standards

●

 IPCC – Intergovernmental Panel on Climate Change

●

 IUCN – International Union for Conservation of Nature

●

 OGCI – Oil and Gas Climate Initiative

●

 TCFD – Task Force on Climate-related Financial Disclosures

●

 TNFD – Task Force on Nature-related Financial Disclosures

●

 UNGP – United Nations Guiding Principles on Business and Human Rights

●

 WBCSD – World Business Council for Sustainable Development

Sustainability terms

●

 Announced Pledges (APS) – IEA scenario which includes all recent major national announcements of 2030 targets and longer-term net

zero and other pledges, regardless of whether these have been anchored in implementing legislation or in updated NDCs.

●

 Area of high biodiversity value – Comprises “Key biodiversity areas” included in the World Database on Key Biodiversity Areas managed

by International Union for Conservation of Nature (IUCN) and Particularly Valuable and Sensitive Areas (“Særlig verdifulle og sårbare

områder”) on the Norwegian continental shelf.

●

 Carbon dioxide (CO2) emissions – CO2 released to the atmosphere as a result of our processes and activities, including CO2 emissions

from energy generation, heat production, flaring (including well testing/well work-over), and remaining emissions from carbon capture and

treatment plants. Separate data compiled for Equinor operated activities and equity basis.

●

 Carbon dioxide equivalents (CO2e) – Carbon dioxide equivalent is a quantity that describes, for a given mixture and amount of

greenhouse gas, the amount of CO2 that would have the same global warming potential.

Additional information

Equinor 2023 Integrated Annual Report 308

●

 CDP – Carbon Disclosure Project is a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and

regions to report and benchmark their environmental impacts.

●

 Energy consumption – Energy used for power generation and heat production in combustion processes, unused energy from flaring

(including well testing/work-over and venting), energy sold/delivered to third parties and gross energy (heat and electricity) purchased.

●

 Flared hydrocarbons – Weight of hydrocarbons combusted in operational flare systems. Includes safety and production flaring. For

Equinor operated activities.

●

 Flaring intensity – Volume of flared hydrocarbons from upstream activities (including LNG) per thousand tonnes of hydrocarbons

produced.

●

 Hazardous waste – Waste is considered to be hazardous according to the regulations under which the activity operates or where the

waste can pose a substantial hazard to human health and/or the environment when improperly managed.

●

 Methane emissions – CH

4

 released to the atmosphere including emissions from energy generation and heat production at own plants,

flaring (including well testing/well work-over), cold venting, diffuse emissions, and the storage and loading of crude oil.

●

 Methane intensity – Total methane emissions from our up- and midstream oil and gas activities divided by the marketed gas, both on a

100% operated basis.

●

 Net carbon intensity (NCI) – GHG emissions associated with the production and use of energy produced by Equinor, including negative

emissions related to carbon services and offsets, divided by the amount of energy produced by the company (g CO2e/MJ). A detailed

description of the net carbon intensity indicator is available at equinor.com.

●

 Net zero emissions ambition – Covers scope 1 and 2 GHG emissions on an operational control basis (100%) and scope 3 GHG

emissions (use of products, category 11, on an equity share basis).

●

 Non-hazardous waste – Waste that is not defined as hazardous. This excludes drill cuttings and produced and flow-back water from our

US onshore operations which are exempted from regulation and are registered separately as ‘exempted waste’.

●

 Non-methane volatile organic compounds (nmVOC) emissions – nmVOC released to the atmosphere from power generation and heat

production, flaring (including well testing/well work-over), process, cold venting and fugitives.

●

 Produced water – Water that is brought to the surface during operations that extracts hydrocarbons from oil and gas reservoirs.

●

 Protected area – A protected area is a clearly defined geographical space, recognised, dedicated and managed, through legal or other

effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values. (IUCN

Definition 2008)

●

 Regular discharges of oil in water to sea – Oil in regulated or controlled discharges to the sea from Equinor operated activities. This

includes produced water, process water, displacement water, ballast water, jetting water, drainage water and water discharged from

treatment plants.

●

 Scope 1 GHG emissions – Direct GHG emissions from operations that are owned and/or controlled by the organisation (Source:

Greenhouse gas protocol). The global warming potential (GWP) of CH

4

 is, in accordance with the Intergovernmental Panel on Climate

Change (IPCC) Fifth Assessment Report (AR5) (2022), considered to be 28 times the GWP of CO2.

●

 Scope 2 GHG emissions – Indirect GHG emissions from energy imported from third parties, heating, cooling, and steam consumed within

the organisation. We use IEA/NVE/e-grid (location-based) and AIB (market-based) as sources of scope 2 emissions factors, expressed

as kg CO2/kWh. The location-based calculation method reflects the emission intensity of grids, taking electricity trade adjustments into

account. The market-based calculation method reflects emissions from electricity that companies have purposefully chosen (or their lack

of choice). It derives emission factors from contracts between two parties for the sale and purchase of energy bundled with attributes

about the energy generation, or for unbundled attribute claims. (Source: Greenhouse gas protocol). When no such contracts are in place,

residual mix emission factors are used.

●

 Scope 3 GHG emissions – All GHG emissions that occur as a consequence of the operations of the organisation but are not directly

controlled or owned by the company, such as use of sold products (equity basis). Emissions from use of sold products is calculated from

IPCC emission factors, combined with IEA statistics on regional energy consumption. 

●

 Serious incident frequency (SIF) – The number of serious incidents (including near misses) per million hours worked. An incident is an

event or chain of events that has caused or could have caused injury, illness and/or damage to/loss of property, the environment or a

third party. All undesirable incidents are categorised according to degree of seriousness, based on established categorisation matrices.

●

 Stated Policies (STEPS) – IEA scenario STEPS provides a conservative benchmark for the future, because it does not take it for granted

that governments will reach all announced goals. Includes what has actually been put in place to reach these and other energy-related

objectives.

●

 Sulphur oxides (SOx emissions) – SOX released from power generation and heat production flaring and process.

●

 Total recordable injury frequency (TRIF) – Number of fatal accidents, lost-time injuries, injuries involving substitute work and medical

treatment injuries at work, per million hours worked, amongst Equinor employees and contractors.

●

 Upstream CO2 intensity – Total scope 1 emissions of CO2 (kg CO2) from exploration and production, divided by total production (boe).

Miscellaneous terms

●

 Appraisal well – A well drilled to establish the extent and the size of a discovery.

●

 Crude oil, or oil – Includes condensate and natural gas liquids.

●

 Downstream – The selling and distribution of products derived from upstream activities.

●

 Liquids – Refers to oil, condensates and NGL

●

 Midstream - Processing, storage, and transport of crude oil, natural gas, natural gas liquids and sulphur

●

 Natural gas – Petroleum that consists principally of light hydrocarbons. It can be divided into 1) lean gas, primarily methane but often

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.

●

 Oil sands – A naturally occurring mixture of bitumen, water, sand, and clay. A heavy viscous form of crude oil.

Additional information

Equinor 2023 Integrated Annual Report 309

●

 Petroleum – A collective term for hydrocarbons, whether solid, liquid, or gaseous. Hydrocarbons are compounds formed from the

elements 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.

●

 Proved reserves – 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.

●

 Refining reference margin – Is a typical average gross margin of our refinery, Mongstad The reference margin will differ from the actual

margin, due to variations in type of crude and other feedstock, throughput, product yields, freight cost, inventory etc.

●

 Upstream – Includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, subsequent

operating wells which bring the liquids and or natural gas to the surface.

Restatement for liquids sales volumes and gas prices

Below are the restated liquids sales volumes and average invoiced gas prices. 

Liquids sales volume restatement (mmbbl)

Full year

2022

Liquids sales volume (old)

740.1

Liquids sales volume (new)

815.9

Average invoiced gas price restatement (MMBtu)

Full year

2022

Average invoice gas price - Europe (old)

32.46

Realised piped gas price - Europe (new)

32.84

Additional information

Equinor 2023 Integrated Annual Report 310

5.8 Forward-looking statements

This integrated annual report contains certain forward-looking statements that involve risks and uncertainties, in particular in the

sections "Equinor’s market perspective", "Our strategy" and “Strategic Financial Framework”. In some cases, we use words such as

"aim", "ambition", "anticipate", "believe", "continue", “commit”, "could", "estimate", "expect", "intend", "likely", "objective", "outlook",

"may", "plan", "schedule", "seek", "should", "strategy", "target", "will", "goal" and similar expressions to identify forward-looking

statements. All statements other than statements of historical fact, including: the commitment to develop as a broad energy company

and diversify our energy mix; the ambition to be a leading company in the energy transition; ambition to reach net zero by 2050 and

expectations regarding progress on our energy transition plan; our ambitions regarding reduction in operated emissions and net

carbon intensity and allocation of gross capex* to renewables and low carbon solutions; our ambitions and expectations regarding

decarbonisation; our ambition to maintain value in oil and gas, focus on high value growth in renewables and contribute to maturing

CCS and hydrogen markets; ambition to attain a leadership position in the European CCS market and expectations regarding market

share for storage and hydrogen; aims, expectations and plans for renewables production capacity and power generation, investments

in renewables and low-carbon solutions and the balance between oil and gas and renewables production; our expectations with

respect to net carbon intensity, operated emissions, carbon and methane intensity and flaring reductions; our internal carbon price

and other financial metrics for investment decisions; break-even considerations and targets; robustness of our portfolio; aims and

expectations regarding Equinor’s resilience across different climate scenarios; future levels of, and expected value creation from, oil

and gas production, scale and composition of the oil and gas portfolio, and development of CCS and hydrogen businesses; plans to

develop fields; our intention to optimise and mature our portfolio; future worldwide economic trends, market outlook and future

economic projections and assumptions, including commodity price assumptions; expectations and plans regarding capital

expenditures; future financial performance, including earnings, cash flow, liquidity and return on average capital employed (ROACE)*;

the ambition to grow cash flow and returns; expectations regarding cash flow and returns from our oil and gas portfolio and

renewables and low carbon solutions portfolio; organic capital expenditures for 2024; expectations and estimates regarding production

and execution of projects; the ambition to keep unit of production cost in the top quartile of our peer group; scheduled maintenance

activity and the effects thereof on equity production; business strategy and competitive position; sales, trading and market strategies;

research and development initiatives and strategy, including ambitions regarding allocation of research and development capital

towards renewables and low carbon-solutions; expectations related to production levels, unit production cost, investments, exploration

activities, discoveries and development in connection with our ongoing transactions and projects; our ambitions, expectations and

plans regarding diversity and inclusion, employee training and supporting a just energy transition; plans and expectations regarding

completion and results of acquisitions, disposals and other contractual arrangements and delivery commitments; plans, ambitions and

expectations regarding recovery factors and levels, future margins and future levels or development of capacity, reserves or

resources; planned turnarounds and other maintenance activity; expectations regarding growth in oil and gas, , including for volumes

lifted and sold to equal entitlement production, and renewable power production; estimates related to production and development,

forecasts, reporting levels and dates; operational expectations, estimates, schedules and costs; expectations relating to licences and

leases; oil, gas, alternative fuel and energy prices, volatility, supply and demand; plans and expectations regarding processes related

to human rights laws, corporate structure and organizational policies; digitization, technological innovation, implementation, position

and expectations; expectations regarding role and composition of the board and our remuneration policies; our goal of safe and

efficient operations; effectiveness of our internal policies and plans; our ability to manage our risk exposure, our liquidity levels and

management of liquidity reserves; future credit ratings; estimated or future liabilities, obligations or expenses; expected impact of

currency and interest rate fluctuations; projected outcome, impact or timing of HSE regulations; HSE goals and objectives of

management for future operations; our ambitions and plans regarding biodiversity (including our aim to develop a net-positive impact

approach for projects) and value creation for society; expectations related to regulatory trends; impact of PSA effects; projected

impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation laws); projected

impact of legal claims against us; plans for capital distribution, share buy-backs and amounts and timing of dividends are forward-

looking statements.

You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those

anticipated in the forward-looking statements for many reasons, including the risks described above in "Risk factors", and elsewhere in

this integrated annual report.

Forward-looking statements are not guarantees of future performance. They reflect current views about future events, are based on

management’s current expectations and assumptions and are, by their nature, subject to significant risks and uncertainties because

they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual

results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of

industry product supply, demand and pricing, in particular in light of significant oil price volatility; unfavourable macroeconomic

conditions and inflationary pressures; exchange rate and interest rate fluctuations; levels and calculations of reserves and material

differences from reserves estimates; regulatory stability and access to resources, including attractive low carbon opportunities; the

effects of climate change and changes in stakeholder sentiment and regulatory requirements regarding climate change; changes in

market demand and supply for renewables; inability to meet strategic objectives; the development and use of new technology; social

and/or political instability, including as a result of Russia’s invasion of Ukraine and the conflict in the Middle East; failure to prevent or

manage digital and cyber disruptions to our information and operational technology systems and those of third parties on which we

rely; operational problems, including cost inflation in capital and operational expenditures; unsuccessful drilling; availability of

Additional information

Equinor 2023 Integrated Annual Report 311

adequate infrastructure at commercially viable prices; the actions of field partners and other third-parties; reputational damage; the

actions of competitors; the actions of the Norwegian state as majority shareholder and exercise of ownership by the Norwegian state;

changes or uncertainty in or non-compliance with laws and governmental regulations; adverse changes in tax regimes; the political

and economic policies of Norway and other oil-producing countries; regulations on hydraulic fracturing and low-carbon value chains;

liquidity, interest rate, equity and credit risks; risk of losses relating to trading and commercial supply activities; an inability to attract

and retain personnel; ineffectiveness of crisis management systems; inadequate insurance coverage; health, safety and

environmental risks; physical security risks to personnel, assets, infrastructure and operations from hostile or malicious acts; failure to

meet our ethical and social standards; non-compliance with international trade sanctions; and other factors discussed elsewhere in

this integrated annual report. 

The achievement of Equinor’s climate ambitions depends, in part, on broader societal shifts in consumer demands and technological

advancements, each of which are beyond Equinor’s control. Should society’s demands and technological innovation not shift in

parallel with Equinor’s pursuit of its energy transition plan, Equinor’s ability to meet its climate ambitions will be impaired. The

calculation of Equinor’s net carbon intensity presented in this report includes an estimate of emissions from the use of sold products

(GHG protocol category 11) as a means to more accurately evaluate the emission lifecycle of what we produce to respond to the

energy transition and potential business opportunities arising from shifting consumer demands. Including these emissions in the

calculations should in no way be construed as an acceptance by Equinor of responsibility for the emissions caused by such use.

The reference to any scenario in this report, including any potential net-zero scenarios, does not imply Equinor views any particular

scenario as likely to occur. Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their

respective authors, not Equinor, and their use by Equinor is not an endorsement by Equinor of their underlying assumptions, likelihood

or probability. Investment decisions are made on the basis of Equinor’s separate planning process. Any use of the modeling of a third-

party organization within this report does not constitute or imply an endorsement by Equinor of any or all of the positions or activities

of such organization.

We use certain terms in this document, such as “resource” and “resources” that the SEC’s rules prohibit us from including in our filings

with the SEC. U.S. investors are urged to closely consider the disclosures in our annual report on Form 20-F, SEC File No. 1-15200,

which is available on our website or by calling 1-800-SEC-0330 or logging on to www.sec.gov.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our

future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person

assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks

only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update

any of these statements after the date of this integrated annual report, either to make them conform to actual results or changes in our

expectations.

EX-15

Equinor 2023 Oil and gas reserves report 1

Equinor 2023 Oil and gas reserves report 2

2023 Oil and gas reserves report

Equinor 2023 Oil and gas reserves report 3

Contents

3 Introduction

4 Proved oil and gas reserves

14 Preparation of reserves estimates

15 Operational statistics

18 Delivery commitments

19 Entitlement production

20 Supplementary oil and gas information (unaudited)

30 Terms and abbreviations

Equinor 2023 Oil and gas reserves report 4

Introduction 

About the report

This report presents Equinor`s proved oil and gas reserves as of 31 December 2023. 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 definitions of reserves to be used in filings with the US Securities and

Exchange Commission (SEC) contained in Rule 4-10(a) (1)-(32) of the SEC’s Regulation S-X. All numbers are internal estimates produced by

Equinor. Estimates of reserves may change over time as further production history and additional information becomes available. The

determination of these reserves estimates 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.

This report is included as Exhibit 15.5 to the

2023 Annual report on Form 20-

F.

Equinor 2023 Oil and gas reserves report 5

Operational performance

Proved oil and gas reserves

Proved oil and gas reserves were estimated to be 5,214

1

 million boe at year end 2023, compared to 5,191 million boe at the end of

2022.

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 proved reserves estimates 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 product 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 category in the tables that follow 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 SEC. The geographical areas are defined by country and continent. In 2023 these are Norway, Eurasia excluding

Norway, Africa, the USA and the Americas excluding USA.

In Norway and other countries where there is a reasonable 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 assets 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 83% of Equinor’s proved reserves are located in countries that are members of the Organisation of Economic Co-

Operation and Development (OECD). 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, Libya and

Nigeria. Other proved non-OECD reserves are related to concession fields in Brazil and Argentina, representing together 12% of

Equinor's total proved reserves.

1

 Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

Equinor 2023 Oil and gas reserves report 6

1

 Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

Equinor 2023 Oil and gas reserves report 7

Changes in proved reserves in 2023

The total volume of proved reserves increased by 23 million boe in 2023.

Change in proved reserves

For the year ended 31 December

(in million boe)

2023

2022

2021

Revisions and improved recovery 

232

344

596

Extensions and discoveries

507

278

306

Purchases of reserves-in-place

31

36

-

Sales of reserves-in-place

(35)

(128)

(96)

Total reserve additions

734

530

806

Production

(711)

(695)

(710)

Net change in proved reserves

23

(165)

96

Revisions and improved recovery

Revisions of previously booked reserves, including the effect of improved recovery, increased the proved reserves by 

net 232 million boe in 2023. The increase is the result of

366 million boe in positive revisions and increased recovery, partially offset

by 135 million boe in negative revisions. Many producing assets 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. Increased

entitlement volumes from several fields with PSAs added to the positive revisions. The negative revisions were mainly related to

unforeseen events and operational challenges resulting in reduced production potential on some assets. The negative revisions also

included a direct effect of lower commodity prices, decreasing the proved reserves by approximately 17 million boe through decreased

economic lifetime on several assets.

Extensions and discoveries

A total of 507 million boe of new proved reserves were added through extensions and discoveries. The Raia field in Brazil, the

Rosebank field in the United Kingdom (UK) and the Sparta field in the USA are the main contributors in this category and are included

in the proved reserves for the first time this year. In addition, this category includes extension of the proved area through continuous

drilling of new wells in previously undrilled areas in the Appalachian basin assets in the USA and in Argentina.

Purchases and sales of reserves-in-place

A total of 31 million boe of proved reserves were added through the purchase of Suncor Energy UK Limited in 2023 which included a

working interest in the producing Buzzard field.

A

total of 35 million boe of sales of reserves-in-place in 2023 are related to

the sale of a 28% working interest in the Statfjord area on

the Norwegian continental shelf (NCS) and the sale of our interests in the Corrib field in Ireland.

Equinor 2023 Oil and gas reserves report 8

In the fourth quarter of 2023, Equinor entered into an agreement to divest our interests in the Azeri-Chirag-Gunashli (ACG) field in

Azerbaijan. Closing is subject to regulatory and contractual approvals and is expected to take place in mid 2024. The sale will result in

an estimated reduction in proved reserves of approximately 45 million boe.

Production

The 2023 entitlement production was 711 million boe, compared to 695 million boe in 2022. The increase was mainly due to ramp up

to plateau production at the Johan Sverdrup field in Norway and the Peregrino field in Brazil.

Equinor 2023 Oil and gas reserves report 9

Development of reserves 

In 2023, 325 million boe were matured from proved undeveloped to proved developed reserves mainly due to continued drilling in

major offshore assets, Johan Sverdrup being the largest contributor, and in the Appalachian basin in the USA. The production start of

Vito in the USA in addition to Breidablikk and Bauge in Norway added to the maturation of proved undeveloped reserves. The positive

revision and improved recovery of proved undeveloped reserves of 90 million boe is related to large offshore fields in Norway such as

the Oseberg area, Visund, Johan Sverdrup and Snorre due to continued high activity level and planned future infill wells. Finally, 475

million boe was added to proved undeveloped reserves through extensions and discoveries. The largest additions in this category are

related to the sanctions of Raia in Brazil, Rosebank in the UK and Sparta in the USA, in addition to further development in the

Appalachian basin.

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 was 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 were 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 were 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.

Equinor has matured 2,123 million boe of proved undeveloped reserves to proved developed reserves over the last five years.

Development of proved reserves

2023

2022

2021

(in million boe)

Total

proved

reserves

Developed

Undeveloped

Total

proved

reserves

Developed

Undeveloped

Total

proved

reserves

Developed

Undeveloped

At 1 January

5,191

3,672

1,519

5,356

3,818

1,538

5,260

3,222

2,038

Revisions and improved

recovery

232

141

90

344

322

22

596

471

125

Extensions and discoveries

507

31

475

278

22

256

306

37

269

Purchases of reserves-in-place

31

31

1

36

29

7

-

-

-

Sales of reserves-in-place

(35)

(30)

(5)

(128)

(66)

(62)

(96)

(83)

(13)

Production

(711)

(711)

-

(695)

(695)

-

(710)

(710)

-

Moved from undeveloped to

developed

-

325

(325)

-

241

(241)

-

881

(881)

At 31 December

5,214

3,459

1,755

5,191

3,672

1,519

5,356

3,818

1,538

Equinor 2023 Oil and gas reserves report 10

Proved developed and undeveloped reserves

At 31 December 2023

Oil and

condensate

NGL

Natural gas

Total oil and

gas 

(mmboe)

(mmboe)

(mmmcf)

(mmboe)

Developed

Norway

720

124

9,131

2,470

Eurasia excluding Norway

57

1

16

61

Africa

107

7

70

126

USA

201

51

1,859

583

Americas excluding USA

211

-

42

219

Total proved developed reserves

1,296

182

11,118

3,459

Undeveloped

Norway

426

57

2,175

871

Eurasia excluding Norway

156

2

55

168

Africa

16

1

4

18

USA

79

10

408

162

Americas excluding USA

410

-

710

537

Total proved undeveloped reserves

1,089

69

3,353

1,755

Total proved reserves

2,384

251

14,471

5,214

As of 31 December 2023, the total proved undeveloped reserves amounted to 1,755 million boe, close to 50% of which are related to

fields in Norway. The Oseberg area, Snøhvit and Johan Sverdrup fields, which have continuous development activities, together with

fields not yet in production, such as Johan Castberg, Munin and Ormen Lange Phase 3, have the largest proved undeveloped

reserves in Norway. The largest assets with proved undeveloped reserves outside Norway, are Raia, Bacalhau, Peregrino and

Roncador in Brazil, Rosebank and Mariner in the UK, Sparta and the Appalachian basin in the USA, and ACG in Azerbaijan. All these

assets are either currently in the production phase or will start production within the next five years.

For assets 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, that would require a

separate future investment decision by management, included in our proved reserves estimates. Some offshore development

activities will take place more than five years from the disclosure date on many assets, 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 the 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, but the start-up is delayed to the

fourth quarter of 2024.

For our onshore assets, all proved undeveloped reserves are limited to wells that are scheduled to be drilled within five years.

In 2023, Equinor incurred USD 8.1 billion in development costs relating to assets carrying proved reserves, of which USD 6.7 billion

was related to proved undeveloped reserves.

Equinor 2023 Oil and gas reserves report 11

Reserves replacement

The reserves replacement ratio is defined as the net amount of proved reserves added for a given period divided by produced

volumes in the same period.

The 2023 reserves replacement ratio was 103% and the corresponding three-year average was 98%, compared to 76% and 62%

respectively at the end of 2022.

The organic reserves replacement ratio, excluding sales and purchases, was 104% in 2023 compared to 89% in 2022. The organic

three-year average replacement ratio was 107% at the end of 2023 compared to 70% at the end of 2022.

Reserves replacement ratio

For the year ended 31 December

2023

2022

2021

Annual

103%

76%

113%

Three-year-average

98%

62%

61%

Equinor 2023 Oil and gas reserves report 12

Proved reserves by region

Proved reserves in Norway

A total of 3,341 million boe was recognised as proved reserves on the NCS, representing 64% of Equinor's total proved reserves at

year end 2023. Of these, 2,923 million boe are related to fields and field areas currently in production, 95% 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 241 million boe in 2023. Negative revisions totalled 85 million boe and were mainly related to reduced well performance as well as

operational challenges on some fields, and lower commodity prices. A total of 25 million boe of sales of reserves-in-place are related

to the sale of a 28% working interest in the Statfjord area.

Of total proved reserves on the NCS, 2,470 million boe (74%) are proved developed reserves at year end 2023. Of the total proved

reserves in this region, 60% are gas reserves mainly related to large fields such as Troll, the Oseberg area, Snøhvit, Ormen Lange,

Visund, Tyrihans and Aasta Hansteen, and 40% are liquid reserves mainly related to large fields such as Johan Sverdrup, Johan

Castberg, Snorre, the Oseberg area, the Gullfaks area and Munin.

Proved reserves in Eurasia excluding Norway

A total of 229 million boe was recognised as proved reserves in the UK and Azerbaijan

2

 at year end 2023. Eurasia excluding Norway

represents 4% of Equinor's total proved reserves. All fields in this region except for Rosebank are in the production phase at year end.

The sanctioning of the Rosebank field in 2023 added a total of 117 million boe in the extensions and discoveries category. A total of

31 million boe of new proved reserves were added through the purchase of Suncor Energy UK Limited in 2023 which included a

working interest in the producing Buzzard field. The sale of our interest in the Corrib field in Ireland in 2023 resulted in a reduction of

proved reserves of 11 million boe.

Of total proved reserves in Eurasia excluding Norway, 61 million boe (27%) are proved developed reserves at year end 2023. Of the

total proved reserves in this region, 94% are liquid reserves mainly related to larger fields such as Rosebank, ACG and Mariner, and

6% are gas reserves mainly related to the Rosebank field and the UK part of the Statfjord field.

2

 Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

Equinor 2023 Oil and gas reserves report 13

Proved reserves in Africa

A total of 144 million boe was recognised as proved reserves in PSAs in Angola, Algeria, Libya and Nigeria at year end 2023. Angola

and Algeria are the primary contributors to the proved reserves in this region. Africa represents 3% of Equinor's total proved reserves.

All fields in this region are currently producing.

Net positive revisions increased the proved reserves by 34 million boe in 2023, mainly

related to positive reservoir performance and new wells.

Lower commodity prices increased the proved reserves in Africa by 9 million

boe due to increased entitlement to produced volumes.

Of total proved reserves in Africa, 126 million boe (88%) are proved developed reserves at year end 2023. Of the total proved

reserves in this region, 91% are liquid reserves mainly related to large oil fields such as CLOV, Agbami and In Amenas, and 9% are

gas reserves related to the In Salah field.

Proved reserves in the USA

A total of 745 million boe was recognised as proved reserves related to both onshore and offshore assets in the USA at year end

2023. The USA represents 14% of Equinor's total proved reserves. All assets in this region except for Sparta are in the production

phase at year end.

Most of the onshore and offshore assets in the USA are mature assets and on decline. New wells extending the

proved areas in the USA onshore assets and the sanctioning of the Sparta field in 2023, added a total of 147 million boe in the

extensions and discoveries category. The revisions and improved recovery category increased the proved reserves by net 18 million

boe. Better performance on some fields in the Gulf of Mexico area increased the proved reserves by 62 million boe, while reduced

activity level on some onshore assets in the USA reduced the proved reserves by 44 million boe.

Of total proved reserves in the USA, 583 million boe (78%) are proved developed reserves at year end 2023. Of the total proved

reserves in this region, 54% are gas reserves mainly related to the Appalachian basin, and 46% are liquid reserves mainly related to

the offshore fields Sparta, Caesar-Tonga and St. Malo in addition to the Appalachian basin.

Equinor 2023 Oil and gas reserves report 14

Equinor 2023 Oil and gas reserves report 15

Proved reserves in the Americas excluding USA

A total of 756 million boe was recognised as proved reserves in the Americas excluding USA at year end 2023. Four fields are located

offshore Brazil, two fields offshore Canada and one field onshore in Argentina. The Americas excluding USA represents 14% of

Equinor's total proved reserves. All fields in this region except for Bacalhau and Raia are in the production phase at year end. The

sanctioning of the Raia field in 2023, added a total of 215 million boe in the extensions and discoveries category. 

Of total proved reserves in the Americas excluding USA, 219 million boe (29%) are proved developed reserves at year end 2023. Of

the total proved reserves in this region, 82% are liquid reserves mainly related to large oil fields such as Bacalhau, Peregrino, Raia

and Roncador, and 18% are gas reserves mainly related to the Raia field.

Equinor 2023 Oil and gas reserves report 16

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 26 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

degree in petroleum exploration and exploitation from Chalmers University of Technology in Gothenburg, Sweden. She has 38 years'

experience in the oil and gas industry, 37 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 2023 using data provided by Equinor. The evaluation accounts for 100% of Equinor's proved reserves.

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 2023.

Net proved reserves

Oil and

condensate

NGL/LPG

Natural gas

Oil equivalent 

At 31 December 2023

(mmboe)

(mmboe)

(mmmcf)

(mmboe)

Estimated by Equinor

2,384

251

14,471

5,214

Estimated by DeGolyer and MacNaughton

2,447

280

15,105

5,418

Equinor 2023 Oil and gas reserves report 17

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 2023, are

presented in the table below.

Total developed and undeveloped oil and gas acreage

At 31 December 2023 (in thousands of acres)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Developed acreage 

- gross

1

913

45

847

404

259

2,468

- net

2

367

14

267

100

63

811

Undeveloped acreage 

- gross

1

9,694

1,555

7,154

1,647

22,223

42,274

- net

2

4,609

813

2,372

676

9,919

18,389

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 represent the largest net developed acreage.

The largest concentration of net undeveloped acreage is in Argentina, which represents 35% of Equinor’s total net undeveloped

acreage, followed by Norway and Canada. 

Equinor holds acreage in numerous concessions, blocks and leases. The terms and conditions regarding expiration dates vary

significantly from property to property. Work programs 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 2023 Oil and gas reserves report 18

Productive oil and gas wells

The number of gross and net productive oil and gas wells, in which Equinor had interests at 31 December 2023, are presented in the

table below.

The gross and net number of oil wells has increased from last year mainly due to the purchase of Suncor Energy UK Limited which

included a working interest in the producing Buzzard field and continued drilling in Argentina. 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 2023 includes 324 oil wells and 13 gas wells with multiple completions or wells

with more than one branch.

Number of productive oil and gas wells

At 31 December 2023

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Oil wells

- gross

1

784

201

482

78

266

1811

- net

2

312

47

74

25

80

538

Gas wells

- gross

1

240

0

119

2572

0

2931

- net

2

105

0

46

493

0

644

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 2023 Oil and gas reserves report 19

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 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 2023

Net productive and dry exploratory wells drilled

10.0

-

-

1.4

2.0

13.5

- Net dry exploratory wells

4.4

-

-

0.9

-

5.3

- Net productive exploratory wells

5.7

-

-

0.5

2.0

8.1

Net productive and dry development wells drilled

34.8

4.7

5.6

25.3

13.7

84.1

- Net dry development wells

1.1

1.4

0.5

0.6

1.7

5.2

- Net productive development wells

33.6

3.3

5.1

24.8

12.0

78.9

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

1) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.

Equinor 2023 Oil and gas reserves report 20

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 2023.

Number of wells in progress

At 31 December 2023

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Exploratory wells

- gross

1

3.0

-

-

1.0

1.0

5.0

- net

2

1.3

-

-

0.5

0.4

2.1

Development wells

- gross

1

27.0

10.0

10.0

47.0

45.0

139.0

- net

2

11.2

3.4

2.6

4.3

13.8

35.3

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 2024, 2025, 2026 and 2027 expressed

as the sum of expected gas off-take, are equal to 50.6, 39.5, 26.8 and 18.7 bcm, respectively.

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 2023 Oil and gas reserves report 21

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 assets with multiple owners and does not include production of the Norwegian

State's oil and gas. NGL includes both LPG and naphtha. From 2023 all our assets are classified as consolidated companies. For

further information on production volumes see section Terms and abbreviations.

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)

2023

202

15

32

40

39

327

-

-

-

327

2022

188

11

32

33

23

287

1

3

4

291

2021

200

15

32

37

19

303

5

2

7

310

NGL (mmboe)

2023

29

0

2

10

-

42

-

-

-

42

2022

34

0

2

8

-

45

-

-

-

45

2021

38

0

3

9

-

49

-

-

-

49

Natural gas (mmmcf)

2023

1,515

5

32

357

11

1,920

-

-

-

1,920

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

Sum of oil, condensate, NGL and natural gas (mmboe)

2023

501

16

40

114

41

711

-

-

-

711

2022

508

16

40

103

24

691

1

3

5

695

2021

505

18

42

117

20

703

6

2

8

710

The Troll field in Norway is the only field containing more than 15% of the estimated total proved reserves based on barrels of oil

equivalent. 

For the year ended 31 December

Troll entitlement production

2023

2022

2021

Troll field 

Oil and condensate (mmboe)

4

7

8

NGL (mmboe)

2

2

2

Natural gas (mmmcf)

399

427

403

Sum of oil, condensate, NGL and natural gas (mmboe)

78

85

82

Equinor 2023 Oil and gas reserves report 22

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 2023.

There have been no incidents since 31 December 2023, which would cause a significant change in the estimated proved reserves or

any other numbers presented in this report.

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 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 proved reserves is part of an ongoing process subject to continual revision as additional information

becomes available. Estimates of proved reserves 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 estimated 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 2023, 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 5% and 6% of total proved reserves for 2022 and 2021, respectively. Net entitlement oil and gas

production from fields with such agreements was 44 million boe during 2023, compared to 44 million boe for 2022 and 49 million boe

for 2021. 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. The

estimated proved reserves do 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 2023 Oil and gas reserves report 23

Volume weighted average prices 

Brent blend

Oil

Condensate

NGL

Natural gas 

At 31 December

(USD/boe)

(USD/boe)

(USD/boe)

(USD/boe)

(USD/mmbtu)

2023

83.27

80.86

72.70

40.27

11.02

2022

101.24

100.30

90.79

56.23

30.66

2021

69.22

67.61

65.02

47.17

11.89

Lower commodity prices affected the profitable reserves to be recovered from accumulations, resulting in decreased proved reserves.

The negative revisions due to lower prices are in general a result of earlier economic cut-off. For PSA fields the effect of lower prices

is to some degree offset by increased entitlement to the reserves. These changes are all included in the revision category, resulting in

a net decrease of Equinor’s estimated 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 SDFI.

These volumes 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 to be by geographic area,

defined as country or continent containing 15% or more of total proved reserves. At 31 December 2023, Norway is the only country in

this category, with 64% of the total estimated proved reserves. The USA contains close to 15% of the total proved reserves at 31

December 2023 and has been close to this level for several years. Management has therefore determined that the most meaningful

presentation of geographical areas in 2023 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 shown in the table Net proved reserves (in million boe) that represent 10% or more of the

net estimated proved reserves in million boe at the beginning of each year are discussed.

Proved reserves movements 2023

Eurasia excluding Norway

The increase of 117 million boe in extensions and discoveries in Eurasia excluding Norway is the result of the sanctioning of the

Rosebank field in the UK. Purchase of reserves-in-place of 31 million boe is the result of the purchase of Suncor Energy UK Limited

which included a working interest in the producing Buzzard field. Sale of reserves-in-place of 11 million boe is the result of the sale of

our share in the Corrib field in Ireland.

Africa

The increase of 34 million boe in the revisions and increased recovery category is the sum of several smaller positive revisions on

most fields in this area, mainly related to positive reservoir performance and new planned wells. Lower commodity prices also resulted

in an increase of 9 million boe through increased entitlement volumes, which is included in this category.

USA

The increase of 147 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 and sanctioning of the Sparta field in the Gulf of Mexico.

Americas excluding USA

The increase of 239 million boe in extensions and discoveries in the Americas excluding USA is mainly the result of the sanctioning of

the Raia discovery offshore Brazil. This category also includes some additions through drilling of new wells in previously unproven

areas in our onshore developments in Argentina and in the Roncador field in Brazil. From 2023 all our equity accounted assets in this

region have been reclassified to consolidated companies. This reclassification is presented as a negative revision of 24 million boe of

reserves in the equity accounted assets, and as a positive revision of 24 million boe of reserves in the consolidated companies.

Equinor 2023 Oil and gas reserves report 24

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 sale 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

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.

The following tables present the estimated oil, condensate, NGL and natural gas proved reserves at 31 December 2020 through 2023

and the changes therein. From 2023 all our assets are classified as consolidated companies.

Equinor 2023 Oil and gas reserves report 25

Consolidated companies

Equity accounted

Net proved oil and condensate

reserves

(in million boe)

Norway

Eurasia

excludin

g

Norway

1

Africa

USA

America

s

excludin

g USA

Subtotal

Eurasia

excludin

g

Norway

America

s

excludin

g USA

Subtotal

Total

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

Revisions and improved recovery

2

67

7

30

52

33

190

-

(19)

(19)

170

Extensions and discoveries

0

106

1

51

114

273

-

-

-

273

Purchases of reserves-in-place

-

31

-

-

-

31

-

-

-

31

Sales of reserves-in-place

(12)

-

-

-

-

(12)

-

-

-

(12)

Production

(202)

(15)

(32)

(40)

(39)

(327)

-

-

-

(327)

At 31 December 2023

1,146

213

123

280

622

2,384

-

-

-

2,384

Proved developed oil and

condensate reserves

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

At 31 December 2023

720

57

107

201

211

1,296

-

-

-

1,296

Proved undeveloped oil and

condensate reserves

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

At 31 December 2023

426

156

16

79

410

1,089

-

-

-

1,089

1) Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

2) From 2023 all our equity accounted assets have been reclassified to consolidated companies.

Equinor 2023 Oil and gas reserves report 26

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 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

Revisions and improved recovery

4

(1)

1

(1)

-

3

-

-

-

3

Extensions and discoveries

1

2

-

12

-

15

-

-

-

15

Purchases of reserves-in-place

-

-

-

-

-

-

-

-

-

-

Sales of reserves-in-place

(4)

-

-

-

-

(4)

-

-

-

(4)

Production

(29)

(0)

(2)

(10)

-

(42)

-

-

-

(42)

At 31 December 2023

180

3

7

61

-

251

-

-

-

251

Proved developed NGL reserves

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

At 31 December 2023

124

1

7

51

-

182

-

-

-

182

Proved undeveloped NGL

reserves

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

At 31 December 2023

57

2

1

10

-

69

-

-

-

69

Equinor 2023 Oil and gas reserves report 27

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 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

Revisions and improved

recovery

1

480

(11)

16

(185)

53

353

-

-

(26)

(26)

327

Extensions and discoveries

11

52

-

465

700

1,228

-

-

-

-

1,228

Purchases of reserves-in-

place

-

-

-

-

-

-

-

-

-

-

-

Sales of reserves-in-place

(51)

(59)

-

-

-

(110)

-

-

-

-

(110)

Production

(1,515)

(5)

(32)

(357)

(11)

(1,920)

-

-

-

-

(1,920)

At 31 December 2023

11,306

72

74

2,267

752

14,471

-

-

-

-

14,471

Proved developed natural

gas reserves

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

At 31 December 2023

9,131

16

70

1,859

42

11,118

-

-

-

-

11,118

Proved undeveloped natural

gas reserves

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

At 31 December 2023

2,175

55

4

408

710

3,353

-

-

-

-

3,353

1) From 2023 all our equity accounted assets have been reclassified to consolidated companies.

Equinor 2023 Oil and gas reserves report 28

Consolidated companies

Equity accounted

Net proved reserves 

(in million boe)

Norway

Eurasia

excludin

g

Norway

1

Africa

USA

America

s

excludin

g USA

Subtotal

Eurasia

excludin

g

Norway

America

s

excludin

g USA

Subtotal

Total

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

Revisions and improved recovery

2

157

4

34

18

43

256

-

(24)

(24)

232

Extensions and discoveries

3

117

1

147

239

507

-

-

-

507

Purchases of reserves-in-place

-

31

-

-

-

31

-

-

-

31

Sales of reserves-in-place

(25)

(11)

-

-

-

(35)

-

-

-

(35)

Production

(501)

(16)

(40)

(114)

(41)

(711)

-

-

-

(711)

At 31 December 2023

3,341

229

144

745

756

5,214

-

-

-

5,214

Proved developed reserves

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

At 31 December 2023

2,470

61

126

583

219

3,459

-

-

-

3,459

Proved undeveloped reserves

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

At 31 December 2023

871

168

18

162

537

1,755

-

-

-

1,755

1) Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

2) From 2023 all our equity accounted assets have been reclassified to consolidated companies.

Equinor 2023 Oil and gas reserves report 29

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

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.

At 31 December 2023

(in USD million)

Norway

Eurasia

excluding

Norway

1

Africa

USA

Americas

excluding

USA

Total

Consolidated companies

Future net cash inflows

261,852

18,468

11,062

27,256

55,255

373,892

Future development costs

(14,383)

(4,297)

(807)

(3,460)

(6,556)

(29,502)

Future production costs

(52,468)

(8,217)

(3,304)

(9,521)

(23,769)

(97,279)

Future income tax expenses

(161,063)

(2,254)

(2,625)

(2,537)

(6,875)

(175,352)

Future net cash flows

33,938

3,701

4,327

11,738

18,055

71,759

10% annual discount for estimated timing of cash flows

(12,395)

(2,230)

(1,047)

(4,296)

(9,710)

(29,677)

Standardised measure of discounted future net cash flows

21,543

1,471

3,280

7,443

8,346

42,082

Equity accounted investments

2

Standardised measure of discounted future net cash flows

-

-

-

-

-

-

Total standardised measure of discounted future net cash flows

including equity accounted investments

21,543

1,471

3,280

7,443

8,346

42,082

1) Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

2) From 2023 all our equity accounted assets have been reclassified to consolidated companies.

Equinor 2023 Oil and gas reserves report 30

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

Equinor 2023 Oil and gas reserves report 31

Changes in the standardised measure of discounted future net cash flows from proved reserves

(in USD million)

2023

2022

2021

Consolidated companies

Standardised measure at 1 January

88,418

43,439

18,209

Net change in sales and transfer prices and in production (lifting) costs related to future production

(224,133)

231,555

126,974

Changes in estimated future development costs

(4,940)

(4,739)

(5,915)

Sales and transfers of oil and gas produced during the period, net of production cost

(43,225)

(91,580)

(43,998)

Net change due to extensions, discoveries, and improved recovery

3,794

15,928

7,734

Net change due to purchases and sales of minerals in place

710

386

(2,280)

Net change due to revisions in quantity estimates

11,706

34,325

17,080

Previously estimated development costs incurred during the period

8,101

6,691

6,619

Accretion of discount

35,905

15,063

4,078

Net change in income taxes

165,746

(162,965)

(85,062)

Total change in the standardised measure during the year

(46,336)

44,663

25,230

Standardised measure at 31 December

42,082

88,102

43,439

Equity accounted investments

1

Standardised measure at 31 December

-

316

350

Standardised measure at 31 December including equity accounted investments

2

42,082

88,418

43,789

1) From 2023 all our equity accounted assets have been reclassified to consolidated companies.

2) Volumes related to the planned exit from Azerbaijan are included in the proved oil and gas reserves at year end 2023.

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. From 2023 all our assets are classified as consolidated companies.

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 2022. The proved reserves at 31

December 2022 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 2023 Oil and gas reserves report 32

Terms and abbreviations

Organisational abbreviations 

●

 ACG - Azeri-Chirag-Gunashli

●

 CLOV – Cravo, Lirio, Orquidea and Violeta

●

 LPG - Liquefied petroleum gas

●

 NCS - Norwegian continental shelf

●

 NGL - Natural gas liquids

●

 OECD - Organisation of Economic Co-Operation and Development

●

 PDO - Plan for development and operation

●

 PSA - Production sharing agreement

●

 SDFI - Norwegian State's Direct Financial Interest

●

 SEC - US Securities and Exchange Commission

●

 UK – United Kingdom

●

 USA - United States of America

●

 USD - United States dollar

Measurement abbreviations etc.

●

 bbl - barrel

●

 mmbbl - million barrels

●

 boe - barrels of oil equivalent

●

 mmboe - million barrels of oil equivalent

●

 cf - cubic feet

●

 mmmcf - billion cubic feet

●

 mmbtu - million british thermal units

●

 bcm - billion cubic metres of natural gas

●

 one billion - one thousand million

Equivalent measurements are based upon

●

 1 barrel equals 0.134 tonnes of oil (33 degrees API)

●

 1 barrel equals 0.159 standard cubic metres

●

 1 barrel of oil equivalent equals 1 barrel of crude oil

●

 1 barrel of oil equivalent equals 159 standard cubic metres of natural gas

●

 1 barrel of oil equivalent equals 5,612 cubic feet of natural gas

●

 1 barrel of oil equivalent equals 0.0837 tonnes of NGLs

●

 1 billion standard cubic metres of natural gas equals 1 million standard cubic metres of oil equivalent

●

 1 cubic metre equals 35.3 cubic feet

●

 1 cubic metre of natural gas equals 1 standard cubic metre of natural gas

●

 1,000 standard cubic meter gas equals 1 standard cubic meter oil equivalent

●

 1,000 standard cubic metres of natural gas equals 6.29 boe

●

 1 standard cubic foot equals 0.0283 standard cubic metres

●

 1 standard cubic foot equals 1000 British thermal units (btu)

●

 1 tonne of NGLs equals 1.9 standard cubic metres of oil equivalent

Miscellaneous terms

●

 Appraisal well: A well drilled to establish the extent and the size of a discovery.

●

 Barrels of oil equivalent (boe): A measure to quantify crude oil, natural gas liquids and natural gas amounts using the same basis. Natural

gas volumes are converted to barrels on the basis of energy content.

●

 Condensates: The heavier natural gas components, such as pentane, hexane, heptane and so forth, which are liquid under atmospheric

pressure – also called natural gasoline or naphtha.

●

 Development: The drilling, construction, and related activities following discovery that are necessary to begin production of crude oil and

natural gas assets.

●

 Equity and entitlement volumes of oil and gas: Equity volumes represent volumes produced under a production sharing agreement (PSA)

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.

●

 IOR (improved oil recovery): Actual measures resulting in an increased oil recovery factor from a reservoir as compared with the

expected value at a certain reference point in time. IOR comprises both of conventional and emerging technologies.

●

 Liquids: Refers to oil, condensates and NGL.

●

 LPG (liquefied petroleum gas): Consists primarily of propane and butane, which turn liquid under a pressure of six to seven atmospheres.

LPG is shipped in special vessels.

Equinor 2023 Oil and gas reserves report 33

●

 Natural gas: Petroleum that consists principally of light hydrocarbons. It can be divided into 1) lean gas, primarily methane but often

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.

●

 NGL (natural gas liquids): Light hydrocarbons mainly consisting of ethane, propane and butane which are liquid under pressure at normal

temperature.

●

 Petroleum: A collective term for hydrocarbons, whether solid, liquid or gaseous. Hydrocarbons are compounds formed from the elements

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.

●

 Proved reserves: 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. 

EX-15

1

Equinor remuneration report for 2023

Corporate executive committee, board of directors and corporate assembly

Contents

1 Preamble ................................ ................................ ................................ ........................ 2

1.1 Introduction ................................ ................................ ................................ ............. 2

1.2 Letter from the chair of the board of directors ................................ .......................... 3

Equinor in 2023

 ................................ ................................ ................................ ............................... 3

Equinor executive performance and remuneration in 2023

 ................................ .............................. 3

A revised executive remuneration policy

 ................................ ................................ .......................... 3

1 January 2024 base salary adjustment

 ................................ ................................ .......................... 5

Changes in the CEC in 2023

 ................................ ................................ ................................ ........... 6

2 Key developments in remuneration – 2023 ................................ ................................ ..... 7

2.1 Overall company performance in 2023 ................................ ................................ .... 7

Safety, security and sustainability

 ................................ ................................ ................................ .... 7

People and organisation

 ................................ ................................ ................................ .................. 7

Operations

 ................................ ................................ ................................ ................................ ....... 7

Market

 ................................ ................................ ................................ ................................ ............. 8

Finance

 ................................ ................................ ................................ ................................ ........... 8

2.2 Performance-based modifiers used in calculating variable pay ................................ 8

Threshold for payments under variable pay plans

................................ ................................ ............ 9

Company performance modifier

 ................................ ................................ ................................ ....... 9

2.3 The board of directors’ assessment of the chief executive officer’s performance ... 10

2.4 Summary of targets and achievement of corporate performance indicators and goals forming

the basis for annual variable pay ................................ ................................ ......................

11

From performance to AVP award ................................ ................................ ................................ .. 12

2.5 Key developments in corporate executive remuneration in 2023 ........................... 13

Execution of policy on executive remuneration in 2023

 ................................ ................................ . 13

Remuneration policy changes - 2024

................................ ................................ ............................. 14

General notes on remuneration elements - 2023

 ................................ ................................ ........... 14

Notes on roles and remuneration of CEC members in 2023

 ................................ .......................... 16

2.6 Derogations and deviations from remuneration policy ................................ ........... 16

2.7 Right to reclaim (‘malus and clawback’) ................................ ................................ . 17

2.8 Shareholder feedback on the remuneration report for 2022 ................................ ... 17

2.9 Activities of the compensation and executive development committee in 2023...... 17

3 Remuneration and share ownership of the board of directors and corporate assembly 17

2

3.1 Remuneration of the board of directors................................ ................................ .. 17

3.2 Total number and value of shares held by the members of the board of directors . 18

3.3 Remuneration of the corporate assembly ................................ .............................. 19

3.4 Shares held by the members of the corporate assembly ................................ ....... 20

4 Remuneration and share ownership of the CEC ................................ ........................... 20

4.1 Remuneration of the CEC................................ ................................ ...................... 20

4.2 Shares awarded or due to the CEC in the reported financial year ......................... 22

4.3 Total number and value of shares held by the CEC ................................ ............... 26

4.4 Performance and AVP awarded to the CEC members in the reported financial year27

4.5 Key performance indicators and behaviour goals forming the basis for AVP for the CEC in

2024 36

5 Remuneration and company performance for 2019-2023 ................................ ............. 38

5.1 Comparative tables over the remuneration and company performance compared to the last

five reported financial years ................................................................ ............................. 38

6 Statement by the board of directors on the remuneration report ................................ ... 41

7 Independent auditor’s statement on the remuneration report ................................ ........ 43

8 Appendix: Executive remuneration policy 2021 ................................ ............................ 44

8.1 Remuneration to the board of directors................................ ................................ .. 44

8.2 Remuneration to the corporate assembly ................................ .............................. 44

8.3 Remuneration to the CEC................................ ................................ ...................... 44

1 Preamble 

1.1 Introduction

The remuneration report contains information on the remuneration for: 

-

 Equinor’s corporate executive committee (CEC) consisting of the chief executive officer (CEO)

and the executive vice presidents (EVPs)

-

 Equinor’s corporate assembly 

-

 Equinor’s board of directors (BoD)

The remuneration report is proposed by the BoD, where an advisory vote shall be held by the 2024

annual general meeting (AGM), pursuant to the Norwegian Public Limited Liability Companies Act,

section 6-16b and regulation 2020-12-

11

-2730 and the Norwegian Accounting Act section 7-31b.

The remuneration report should be read in conjunction with the 2021 remuneration policy, which is

included in the Appendix.

3

1.2 Letter from the chair of the board of directors

On behalf of the BoD, I present to you Equinor’s remuneration report for 2023. Our objective is to

provide a comprehensive and transparent overview of the remuneration of the BoD, the corporate

assembly and the CEC in 2023.

Equinor in 2023

In 2023, we continued our focus on developing the energy solutions for tomorrow, while securing the

energy needed today.

The geopolitical situation in the world remains tense. Uncertainty and volatility have continued to impact

economic growth and energy markets. Equinor’s role as a reliable energy provider has never been

more important, particularly with respect to securing a stable supply of gas to Europe. 

Equinor’s strategy has been resilient, ensuring energy security, transition, and growth. In 2023, we

delivered our second-best result ever on adjusted earnings. More details on Equinor’s performance

results within the different perspectives of our performance assessment are presented further in this

report and in Equinor’s annual report.

Equinor executive performance and remuneration in 2023

The base salary increases for the members of the CEC in 2023 were at, below and above the general

salary increase frame for Equinor ASA employees. 

Equinor’s overall strong financial and operational results in 2023 as described in section 2, was

confirmed through the CEC members’ individual performance results and reflected in their annual

variable pay awards.

An important focus area in 2023 was work on developing and deciding changes to the remuneration of

the CEC members, to meet the requirements of the revised State's Guidelines for the Remuneration of

Senior Executives in Companies with Direct State Ownership (state guidelines) of 12 December 2022. 

A revised executive remuneration policy

In May 2023, the AGM approved a revised remuneration policy for Equinor senior executives effective

from 1 January 2024. The policy contains the principles and approach for setting remuneration for the

CEC. 

Shareholder expectations, including those of the Norwegian state as set out in the state guidelines, are

important inputs considered in the new policy. 

The policy states that reward in Equinor shall be competitive, but not market leading. It should support

the fulfillment of the company's strategy and be acknowledged as moderate, fair, transparent,

consistent, and non-discriminatory.

In response to the state guidelines and the introduction of the new remuneration policy, market

benchmarks have been conducted by two independent survey providers to establish Equinor’s position

towards relevant peers in Norway. The peer group encompasses the largest companies in Norway,

including peers where the Norwegian state has ownership interests. Based on Equinor’s financial value,

business complexity and impact, the executive roles are generally being weighted higher than similar

roles amongst peers in Norway. The benchmarks have therefore been supplemented with an extensive

4

market data report allowing for comparison of remuneration data for similarly weighted executive roles

across all market segments in Norway. This combined approach has enabled the establishment of

broadly substantiated base salary market medians for all the Equinor CEC roles in a Norwegian market

context. 

Equinor senior executives have proved to be attractive outside Norway. To fully understand and monitor

retention risk for this group, benchmarking towards the Nordic and European markets and towards the

companies in Equinor’s corporate industry peer group has also been conducted. Equinor’s CEC roles

are significantly below median compared to these markets. This is also confirmed by comparison of

salary levels between industry peers’ corporate groups, see figure below.

Equinor’s positioning vs. corporate industry peer group. Numbers are total remuneration in MNOK. Source: 2022 annual

reports/remuneration reports

In this context the BoD considers the established market medians for the Norwegian market to

represent the minimum competitive remuneration level for the CEC roles. Overall, Equinor’s CEC roles

are positioned at or below the Norwegian market medians.

Equinor seeks to build and retain a diverse executive team that reflects the company’s global footprint

and strategy of becoming a broad energy company. The market positioning of individual roles was the

main objective when deciding the annual base salary adjustments for the CEO and other members of

the CEC in 2023. The aim for the adjustments has been to maintain, or progress over time, towards a

position at the market medians in Norway. Individual performance has been utilized to tune the final

adjustments. The annual salary review for all employees in Equinor ASA has also been considered. 

Equinor has historically applied a consistent and moderate approach to salary placement and growth

for senior executives and other employees. This has resulted in CEO remuneration levels relative to all

employee's remuneration levels in Norway being substantially reduced over the last decade. The

average CEO-to-employee remuneration ratio for 2012-2013 was 18.13 compared to 14.38 for 2022-

2023 ref figure below. This exemplifies how the principle of moderation has been applied for

remuneration on executive level in Equinor over time.

5

0,00

5,00

10,00

15,00

20,00

2012-2013

(18.13)

2022-2023

(14.38)

CEO vs ASA employees in Norway

Total remuneration ratio

CEO vs. Equinor ASA employees in Norway, total remuneration ratio

Source: annual reports/remuneration reports

1 January 2024 base salary adjustment

The revised remuneration policy includes a reduction in the annual bonus from the previous max 45%

to max 25% of base salary and a reduction of maximum combined bonus and share programs from

80% to max 55% of base salary. The revised policy was effective from 1 January 2024.

This reduction in variable pay would weaken remuneration competitiveness for all CEC members.

Correspondingly, the financial impact of such a sudden and significant year-on-year reduction in

compensation entails increased retention risk. The reduction is also a departure from market practice

and represents as such a significant challenge in terms of recruiting to CEC positions. 

To secure competitiveness the BoD decided to maintain total remuneration levels after the reduction in 

variable pay levels. This is done through providing an extraordinary base salary adjustment, effective 1

January 2024. Although not effective in the 2023 reporting year, the BoD deems it pertinent to disclose

this adjustment now, as this was decided in 2023 and is effective at the time of the executive

remuneration report being published.

When deciding this adjustment, emphasis has been placed on predictability and fairness through

retaining a simple, stable, and transparent reward framework also for the CEC group of employees. The

adjustment further strengthens the weight placed on fixed pay as a percentage of total remuneration.

6

Alignment with Equinor’s long-term approach of offering competitive remuneration within a moderate

framework for senior executives was also considered.

Changes in the CEC in 2023

Philippe François Mathieu joined the CEC on 1 January taking over as

EVP Exploration & Production

International (EPI) from

Alasdair Cook who resigned from the company.

There were no other changes and all members served on the CEC the full calendar year.

Jon Erik Reinhardsen

 Chair of the board of directors 

2 Key developments in remuneration – 2023

2.1 Overall company performance in 2023

The below summarises Equinor’s results for 2023 within the five perspectives of our performance

assessment, as described in the annual report. 

7

Safety, security and sustainability

Strategic objective: An industry leader in safety and security with a clear energy transition plan

Equinor’s key safety indicators have improved over several years, and this level has been maintained

for 2023. The serious incident frequency indicator (SIF) for 2023 is at a historical low level, and only

marginally above the target. This was, however, overshadowed by one tragic fatality incident from a

contracted LPG tanker in Malaysia. The total recordable incident frequency was at 2.4, which is above

the target, but improved compared to 2022. There were 10 oil and gas leakages compared to eight in

2022. The improvement in safety critical maintenance continued in 2023 to the lowest levels ever

recorded. The CO

2

 intensity for the upstream portfolio was reduced further to 6.7 kg/boe in 2023, less

than half of the industry average.

People and organisation

Strategic objective: A values-based and purpose driven company that attracts and develops people 

The company continues to strengthen the capacity and capability through new recruitment. In 2023

Equinor welcomed around 2,000 new colleagues. The effort to reach the ambition set for diversity and

inclusion parameters continues. The 2023 global people survey (GPS) results show significant

improvement in the scores indicating that employees are feeling safe addressing concerns without fear

of negative consequences. Scores for engagement and commitment are the highest in five years.

Scores related to delivering on ambitions and contributing to sustainability are slightly reduced

compared to last year. 

Operations

Strategic objective: A top performing energy company 

The total equity production of gas and liquids increased by around 2% from 2,039 kboe/d in 2022 to

2,082 kboe/d in 2023. International production was strong in 2023. The increased capacity at Johan

Sverdrup contributed well to the growth. Turnarounds on the Norwegian continental shelf (NCS)

impacted production in the second and third quarter. The total gas production decreased by 5%, whilst

liquid production increased by 10%. 

The total power generation increased by 59% from 2022 to 2023 driven by Triton Power and Rio

Energy, up from 2,661 GWh to 4,235 GWh. The annual production was impacted by delays on the

Doggerbank A development. 

Market

Strategic objective: A flexible and sustainable energy portfolio

8

Business development and sanctioning of new projects improved the oil and gas portfolio during 2023.

Sanctioning of key projects Raia, Rosebank, Sparta, the acquisition of Suncor UK and announced

divestments from Nigeria and Azerbaijan contributed to this. Equinor’s profitable project portfolio has an

average break-even price of around 35 USD per barrel. Maintaining this level, with the recent cost

inflation, demonstrates strong capital discipline and improvements. 

Equinor’s performance is in line with the ambitions in the energy transition plan to reach net zero in

2050. In 2023, 8 GW of renewable capacity was added to the project portfolio through the acquisitions

of Rio Energy and BeGreen. Gross capex share to renewables and low carbon was 20 %, on track to

above 30% by 2025, and above 50% by 2030. 

Finance

Strategic objective: A cash generating, profitable and competitive company delivering value to our

stakeholders 

Equinor delivered its second-best adjusted earnings result ever in 2023. The guiding for the midstream

segment was increased in 2023 and deliveries were in, or above the range for all quarters. Equinor

was ranked number one among peer group companies

1

 on relative return on average capital employed

(RoACE) and in 3rd quartile on total shareholder return (TSR) in 2023. Despite reduced gas prices and

continued cost pressure, Equinor maintained financial robustness and solid cash flow from operations

after tax in 2023 of around 20 USD bn, in line with the guiding for the year. Operating and

administrative expenses have increased by 10% from 2022, driven by inflation, increased production

and exchange rate movements. Organic, net capex was USD 10.2 billion for the full year, in line with

the guiding. 

2.2 Performance-based modifiers used in calculating variable pay

As described in the remuneration policy, a threshold and a company performance modifier (CPM) are

applied as a means of strengthening the link between the company’s overall financial results and the

individual’s variable pay. The results of these modifiers for 2023 are presented below. 

Threshold for payments under variable pay plans

With reference to the definitions and parameters described in the remuneration policy, the company

performance for 2023 is assessed as being in the green zone.

1

The composition of Equinor’s defined peer group can be found on equinor.com

– link

9

(1) Cash flow provided by

operating activities after tax and

before working capital items was

USD 19.7 billion 

(2) Net debt ratio and

development was -21.6% 

(3) Company’s overall

operational and financial

performance: ref. section 2.1.

Combined result in

green zone

No

reduction

in

payout 

Company performance modifier

With reference to the definitions and parameters described in the remuneration policy, the CPM for

2023 is set at 117%.

-

 Relative RoACE result: number 1 (first quartile) in the peer group of 12 companies, including

Equinor. 

-

 Relative TSR result: number 8 (third quartile) in the same peer group.

-

 This results in a CPM at 117%

2.3 The board of directors’ assessment of the chief executive officer’s

performance

2023 proved to be yet another special year for Equinor. The challenging global security

situation deteriorated throughout the year and the uncertainty in the macroeconomic outlooks

observed in 2022 manifested itself through supply chain disruption, inflation, significant rise in

interest rates and energy market volatility. This impacted the company`s performance both

positively and negatively throughout the different areas of the business. 

10

Equinor’s position as a key enabler for Europe’s energy security and supply was further

consolidated throughout the year with the initiation of new partner relations and stable

deliveries with long-term prospects. 

The year saw the transitional strategy continued to be brought into practice. There was a

significant increase in land- and offshore based power generation. Further commitment to the

strategy was proven through acquisitions and restructuring within renewable-, low carbon

solutions- and the oil and gas portfolios. 

The BoD would like to express that it recognizes that 2023 saw the best SSU results ever

measured. However, the result sadly enough includes a fatality accident on board an Equinor

chartered vessel, and this does overcast this achievement. The BoD appreciates the CEO’s

long term and continuous commitment to improving results within the wider SSU perspective

and is confident this systemic effort will continue to show results both short and long term.

The year was influenced by operational challenges. Still the financial result for Equinor came

out second best in the history of the company. This demonstrates and reinforces the company’s

proven ability to maintain high earnings, deliver on its ambitions and with very good relative

RoACE, even under demanding frame conditions.

In its total assessment of the CEO’s performance for 2023, the BoD has considered that the

deliveries in the key areas have been above, at or below targets. 

The

business delivery

 dimension (WHAT)

 used for the assessment of the CEO’s variable

remuneration (performance year 2023) was based on the following performance indicators

(KPIs): SIF, upstream CO

₂

 intensity, REN power production, relative TSR, relative

RoACE, unit

production cost (UPC). Ref. also Table 4 for details.

The 12 months

SIF

indicator had a target of 0.3. Although the result was at 0.4 (0.37), it was

historically low. Over the last 12 months 50 serious incidents have occurred. This is

approximately 10% less than the 2022 number. The activity level was higher than 2022

(approximately 1% more hours). 

The

CO

2

 intensity

 for the upstream portfolio ended at 6.7 kg CO

2

/boe in 2023. This is a

significant reduction from 2022 by more than 3%, and well below the target of 8.0 kg CO

2

/per

boe. The upstream production levels increased by around 1.4% and CO

2

 emissions decreased

by 0.7% compared to 2022.

 The result was delivered despite high liquid production, mainly due to

increased capacity at Johan Sverdrup. 

Unit production cost

 (UPC) increased 5% above target, in a market that was still highly

affected by inflation. The NOK/USD currency effect has been favourable for UPC whilst lower

production has had a negative effect. 

REN power production

 at 1,937 GWh was marginally below 2023 target of 2,000 GWh, but

still a substantial increase (288 GWh) from 2022. The main contributors were the new fields in

operation and acquired assets.

11

With regards to the financial results, 2023 has shown very strong earnings. Equinor ended on

top in the peer group ranking on

 RoACE

and number 8 out of 12 on the

TSR

 ranking. The

financial robustness remains strong. 

The

business behaviour

 dimension

(HOW)

 used for the assessment of the CEO’s variable

remuneration was based on the following set of goals: Demonstrate accountability, visibility,

and engagement for safety, security, and compliance, Build trust in Equinor, Transform the

organization to deliver on our common purpose and become a leading company in the energy

transition, Develop strong and diverse succession pipeline, ref Table 4. 

The BoD's total assessment of these goals showed a robust result and an overall improvement

from 2022. 

Competence building to support the company’s transition strategy improved during the year

and ended above set target.

Equinor's recruitment level during 2023 was high. Increased attractiveness led to both renewal

and to closing the overall staffing gap. Although improved in some areas, the diversity and

inclusion result requires continued focus going forward.

The Equinor GPS shows general strong results and significant improvements from 2022. The

BoD’s impression of further progress and status on overall employee satisfaction remains

positive. 

Overall, the BoD is very satisfied with the CEO’s performance and will in particular highlight his strong

and consistent leadership whilst transitioning the company in a challenging external environment.

2.4 Summary of targets and achievement of corporate performance indicators

and goals forming the basis for annual variable pay

The BoD decides on a comprehensive set of KPIs and behaviour goals to facilitate direction and areas

of focus prior to each calendar year. The KPIs and behaviour goals to be used by the BoD to assess

the CEO’s performance in relation to the AVP for the upcoming calendar year are selected from this set

and included in an annual performance contract with the CEO. The selected performance indicators

and goals are those assessed to be most critical in achieving the core strategic objectives for the

company in the coming year. 

The corporate delivery KPIs and behaviour goals selected for the CEO are similarly set forth in a

performance contract between the CEO and EVPs, to the extent these are deemed relevant. For the

EVPs of business areas, a selection of additional business area KPIs supporting the company’s

strategic ambitions from the specific business area is included in their performance contracts. 

From performance to AVP award

12

As described in the remuneration policy, performance forms the basis for the decision on annual

variable pay (“AVP”) percentages for the members of the CEC.

Common corporate delivery KPIs, business area specific delivery KPIs and behaviour goals are

measured separately and assessed holistically, as described below.

These together form the basis for payment of annual variable pay, where delivery KPIs and behaviour

goals each have a weight of 50%. For EVPs in business areas delivery KPIs are weighted to comprise

50% corporate KPIs and 50% business area specific KPIs. 

The individual KPIs and goals within a category are equally weighted initially and can be adjusted to

reflect prevailing business context and strategic priorities.

Group of CEC member 

Weighting of KPIs in “what” 

dimension – 50%

Weighting of goals

in “how”

dimension – 50%

Corporate

delivery KPIs

Business area

delivery KPIs

Corporate

behaviour goals

CEO and staffs EVPs (EVPs without BA responsibility)

50%

-

50%

EVPs with BA responsibility

25%

25%

50%

Delivery in 2023 against the selected corporate delivery goals (“what” dimension) which are applied to

the CEO, as well as the individual EVPs, is summarized as follows:

KPI 

Target 

Performance 

• Serious Incident Frequency 

0.3 or better 

0.4

• CO

2

 intensity for the upstream portfolio

8 kg CO

2

 per boe or better

6.7 kg/boe

• Relative TSR 

Above average in the peer ranking list

'ge 

Third quartile

• Relative RoACE 

Ranked in first quartile among peers

First quartile

• Unit production cost (UPC)

2

<6.0 USD/boe

6.2 USD/boe

• Renewable (REN) power production

3

2 TWh

1.9 TWh

For EVPs with business area responsibilities, the assessment of the business delivery dimension has in

addition been made against the following KPIs:

Business area

KPI

Unit

Target

EPN

Production

kboe/d

1,446

UPC

nominal USD/boe

5.8

Break-even price (CMU portfolio)

USD/bbl

<35

EPI

Production

kboe/d

677

UPC

nominal USD/boe

6.5

Break-even price (CMU portfolio)

USD/bbl

<35

2

O

nly apply to the CEO and staffs EVPs 

13

MMP

Production efficiency

%

 93.3

Net operating income (ex derivatives)

bn USD

 3.3

Fixed opex & SG&A

mill USD

1,285

REN

REN power generation

TWh

2 

Net operating income adjusted

mill USD

> -200

PDP

Number of wells

number

104

Break-even price (CMU portfolio)

USD/bbl

<35

Estimate development DG3-DG4

%

100

TDI

Low carbon R&D

 %

>30

Software consolidation progress

 %

50

TDI task responsibility cost savings

NOK mill, 100%

500

In terms of the “how” dimension, common behaviour goals are defined for the CEO and the EVPs with

reference to Equinor’s core values and leadership principles, as follows:

-

 Demonstrate accountability, visibility, and engagement for safety, security and compliance 

-

 Build trust in Equinor

-

 Transform the organization to deliver on our common purpose and become a leading company in

the energy transition

-

 Develop strong and diverse succession pipeline

Performance against these behaviour goals is measured on an individual basis for the CEC members.

The KPI targets and results of the business deliveries (“what”), and the behaviour goals and results

(“how”) and how these translate into the AVP award are presented for the individual CEC members in

the Table 4 section further below. 

The KPI targets and behaviour goals applicable for the performance measurement for

AV

P in 2024 are

presented in section 4.5.

2.5 Key developments in corporate executive remuneration in 2023

Execution of policy on executive remuneration in 2023

The remuneration of the CEC members for 2023 was determined in accordance with the remuneration

policy and principles approved by the AGM on 11 May 2021. These principles, as well as details on the

elements constituting executive remuneration are outlined in Equinor’s remuneration policy, see

Appendix.

The values-based performance framework and the main elements of remuneration applies to the CEC

members employed by Equinor ASA and subsidiaries, in accordance with Equinor’s remuneration

policy. 

No changes were introduced to the executive remuneration policy in relation to the 2023 reporting year.

14

Remuneration policy changes - 2024

Although not effective in the 2023 reporting year, the BoD finds it appropriate to inform of the revised

remuneration policy approved by the AGM on 10 May 2023, adopting the expectations set out in the

revised state guidelines from December 2022, effective from 1 January 2024. 

The policy introduces the following changes:

●

 The annual variable pay (AVP) target for CEC members employed in Equinor ASA is reduced

from 25% to 12.5% of base salary, with a maximum pay-out of 25% including the effect of the

CPM. 

●

 The CEO’s annual long-term incentive grant (LTI) is reduced from 30% to 25% of base salary. 

The 25% LTI grant for EVPs, the 5% share saving plan (SSP) contribution and 18% fixed allowance

paid in lieu of pension contributions above 12G

3

 remain unchanged.

The above ensures that no CEC member exceeds the maximum of 55% variable remuneration as set

out in Equinor's remuneration policy.

To mitigate the changes in AVP and LTI, an adjustment has been calculated and applied to the base

salary from 1 January 2024 to ensure that total remuneration is maintained at the current level.

Although the base salary is increased, the AVP payment will be reduced due to the lower percentage

applied in the calculations. SSP amounts will be higher as the maximum percentage for savings

remains unchanged. The same applies for LTI except for the CEO whose LTI is reduced.

In total, the adjustment ensures that the increase in base salary balances the changes to levels of AVP,

LTI and SSP, having a zero effect on total remuneration.

As payments of AVP vary year-on-year by both the individuals’ performance and the company

performance modifier, calculations on AVP are based on the results of these parameters for the

preceding 5-year period. This is to ensure that calculations under the new policy are based on historical

remuneration levels. 

General notes on remuneration elements - 2023

Fixed pay

The objective of the annual base salary review has been to maintain or progress towards market

median for similar positions in Norway. 

Individual performance and the average salary growth for all employees in Equinor ASA has also been

considered. 

Market median in Norway and Equinor’s executive roles relative to this has been established through

extensive benchmarking conducted by two independent survey providers. Equinor’s CEC roles are

positioned at or below market median for similar roles in the Norwegian market, and significantly below

median in the Nordic and European markets.

3

G represents the basic amount of the Norwegian social security system. 1G per 31 December 2023 equals NOK 118,620

15

The salary negotiations for Equinor ASA were settled at 5.6% in 2023. For the CEO and half of the

CEC, the base salary adjustment as measured in percentage was at or below the salary settlement in

Equinor ASA. 

Strengthening competitiveness and the need for calibrating towards median in the market has been the

main driver when providing the remaining CEC members with a salary adjustment above average in

Equinor ASA. The adjustment will move these CEC roles from a significant gap to market median closer

to market median. Most of the roles will however remain below median compared to similar positions in

Norway, and significantly below median in other relevant markets. Equinor’s objective is to progress

these roles towards market median in Norway over time.

Limiting the CEC base salary adjustment to the average salary adjustment for all employees in Equinor

ASA as measured in NOK has been considered. The BoD has, however, given the salary levels relative

to benchmarks, seen such salary adjustment of executive pay as a significant increase in risk when it

comes to recruitment and retention of key competencies and capabilities and the need for maintaining

attractive terms that support motivation and secure the leadership qualities amongst Equinor’s senior

executives required to safeguard secure and profitable operations and the continuing development of

the company in line with its established strategy.

Variable remuneration

Based on the overall company performance in 2023 and in accordance with the threshold criteria

described in the remuneration policy the AVP payments were not reduced. 

The target for annual variable pay for the CEC members, all of whom were employees of Equinor ASA

in 2023 was 25% of base salary, and the maximum annual variable pay for 2023 was 45% of base

salary. 

The company performance modifier and the threshold affect the final annual variable pay award. As

described above, the CPM was set at 117% for 2023. There was no threshold effect applied for 2023.

The LTI grants in 2023 were not reduced, as the threshold for the previous year – 2022 – was in the

green zone.

Benefits 

As described in the remuneration policy, members of the CEC employed in Equinor ASA are covered

by the company’s general occupational defined contribution pension scheme. A defined benefit scheme

is retained for a grandfathered group of employees. In 2023, this applies to Geir Tungesvik. 

A fixed salary addition calculated as 18% of base salary is provided in lieu of pension accrual above 12

G to members of the CEC covered by the general defined contribution pension scheme and

who were

employed by Equinor ASA before 1 September 2017. This addition does not form part either of the

pensionable salary or of the basis for variable pay.

Notes on roles and remuneration of CEC members in 2023

16

CEC member

Position

Period on CEC in 2023 and

notes on remuneration

Anders Opedal 

President and chief executive officer

(CEO)

Full year

Irene Rummelhoff 

EVP Marketing, Midstream &

Processing (MMP)

Full year

Geir Tungesvik

EVP Projects, Drilling & Procurement

(PDP)

Full year

Geir Tungesvik maintained in

the closed defined benefit

scheme.

Jannicke Nilsson 

EVP Safety, Security & Sustainability

(SSU)

Full year

Pål Eitrheim 

EVP Renewables (REN)

Full year

Philippe François

Mathieu

EVP Exploration & Production

International (EPI)

Full year

Kjetil Hove 

EVP Exploration & Production Norway

(EPN)

Full year

Hege Skryseth

EVP Technology, Digital & Innovation

(TDI)

Full year

Torgrim Reitan

EVP and Chief financial officer (CFO)

Full year

Torgrim Reitan is entitled to

early retirement from age 65

with a pension level amounting

to 66% of pensionable salary.

Siv Helen Rygh

Torstensen 

EVP Legal & Compliance (LEG)

Full year

Aksel Stenerud

EVP People & Organisation (PO)

Full year

Jannik Lindbæk

EVP Communication (COM)

Full year

2.6 Derogations and deviations from remuneration policy 

There were no derogations or deviations from the remuneration policy in 2023.

2.7 Right to reclaim (‘malus and clawback’)

There were no cases where the right to reclaim was exercised in 2023.

17

2.8 Shareholder feedback on the remuneration report for 202 2

The remuneration report for 2022 was presented for approval (advisory vote) at the annual general

meeting on 10 May 2023 and was endorsed by a significant majority. The portion of the votes in favour

of the remuneration report for 2022 constituted 99.15% of the total votes cast. There were no additional

statements from shareholders regarding the 2022 remuneration report to the 2023 AGM.

2.9 Activities of the compensation and executive development committee in 2023

The activities of the board compensation and executive development committee (BCC) in 2023 were in

line with the instructions from the BoD which are available on

equinor.com

. 

The BCC had a high focus in 2023 on ensuring compliance with the revised state guidelines. This

included discussing and reviewing the proposal for revising the balance and level of the CEC members’

remuneration elements effective 1 January 2024, as described in section 1.2.

Other activities included:

-

 Discussions on the trends within the executive talent market and executive remuneration

-

 Executive succession planning and talent review

-

 Recommendation to the BoD on the threshold used in calculating variable remuneration, based on

relevant company performance results

-

 Recommendation to the BoD on the base salary review for the CEO

-

 Review and submission for approval of the BoD of the performance evaluation and goals for the

CEO 

-

 Assessment and submission for the decision of the BoD of the proposal for AVP of the CEO

-

 Presentation by the CEO of the performance assessment and considerations on AVP awards to

the EVPs

-

 Discussion of the evaluation by the BoD and self-assessment of the performance of the BCC

-

 Review and submission for approval of the BoD of the instructions to the BCC

3 Remuneration and share ownership of the board of directors and

corporate assembly

3.1 Remuneration of the board of directors 

In 2023, the total remuneration to the BoD, including fees for the BoD's three committees, was USD

746 thousand (NOK 7,885 thousand). 

Detailed information about the individual remuneration to the members of the BoD in 2023 is provided

in the table below.

18

Total remuneration

Members of the BoD (figures in USD thousand)

2019

2020

2021

2022

2023

Jon Erik Reinhardsen (chair of the BoD)

110

108

119

110

103

Anne Drinkwater (deputy chair of the BoD)

100

88

82

96

101

Rebekka Glasser Herlofsen

62

59

66

66

67

Jonathan Lewis

93

76

70

80

82

Finn Bjørn Ruyter

37

69

77

71

67

Tove Andersen

-

27

59

55

52

Michael Lewis

1

28

37

Haakon Bruun-Hanssen

-

-

-

-

66

Per Martin Labråten

2

56

54

66

65

62

Stig Lægreid

2

56

54

59

55

53

Hilde Møllerstad

2

32

59

66

61

57

Employee representative deputy members of the BoD

Hans Einar Haldorsen

3

Bjørn Palerud

-

-

-

-

Anita Skaga Myking

-

-

-

-

Harald Wesenberg

4

1) Member of the BoD until 16 March 2023 

2) Employee-representative members of the BoD 

3) Deputy member until 30 June 2023 

4) Deputy member from 1 July 2023

Total remuneration of members of the BoD (figures in USD thousand)

2019

2020

2021

2022

2023

714

754

832

801

746

3.2 Total number and value of shares held by the members of the board of

directors

The number of Equinor shares owned by members of the BoD of and/or owned by their close

associates is shown below. Individually, each member of the BoD owned less than 1% of the

outstanding Equinor shares.

The voting rights of members of the BoD, the CEC and the corporate assembly as a shareholder do not

differ from those of ordinary shareholders.

Ownership of Equinor

shares (incl. shares

owned by close

associates)

As of 1 Jan.

2023

As of

31

Dec.

2023

Market value as of 31

Dec. 2023, USD

thousand

As of 12

March 2024

Jon Erik Reinhardsen

4,584

4,584

140

4,584

Anne Drinkwater

1,100

1,100

34

1,100

Rebekka Glasser

Herlofsen

220

220

7

220

Jonathan Lewis

-

-

-

-

Finn Bjørn Ruyter

620

620

19

620

19

Tove Andersen

4,700

4,700

143

4,700

Michael Lewis

-

-

-

-

Haakon Bruun-Hanssen

-

-

-

-

Per Martin Labråten

587

894

27

1,052

Stig Lægreid

5

147

4

147

Hilde Møllerstad

6,290

3,005

92

3,676

Deputy members

Hans Einar Haldorsen

1,875

-

-

Bjørn Palerud

974

1,305

40

1,497

Anita Skaga Myking

6,240

6,654

203

6,891

Harald Wesenberg

-

936

29

1,137

3.3 Remuneration of the corporate assembly 

In 2023, the total remuneration to the shareholder and employee-elected members of the corporate

assembly was USD 117 thousand (NOK 1,240 thousand).

Total

remuneratio

n

Corporate assembly employee elected members (figures in USD

thousand)

2022

2023

Peter Bernhard Sabel

5

5

Trine Hansen Stavland

1

-

3

Ingvild Berg Martiniussen

2

5

5

Berit Søgnen Sandven

5

5

Frank Indreland Gundersen

3

1

3

Per Helge Ødegård

2

5

5

3

Raymond Midtgård (observer)

4

-

3

Vidar Frøseth (observer)

5

1

3

Kjetil Gjerstad (observer)

5

2

4

Oddvar Karlsen

6

5

2

Lars Olav Grøvik

6

5

2

Terje S. Enes

6

5

2

Frode Mikkelsen

6

5

-

Anne Kristi Horneland (observer)

6

5

2

Employee elected deputy members who received member fees

Terje Herland

1

1

Porfirio Esquivel

7

-

1

Steinar Kåre Dale

6

2

-

Katrine Knarvik-Skogstø

6

2

-

Total remuneration

54

45

20

1) New member from 11 May 2023 

2) New member from 11 May 2023, previous observer 

3) New member from 11 May 2023, previous deputy 

4) New observer from 11 May 2023 

5) New observer from 11 May 2023, previous deputy 

6) Left the corporate assembly as of 10 May 2023 

7) New deputy from 11 May 2023

3.4 Shares held by the members of the corporate assembly

Individually, each member of the corporate assembly owned less than 1% of the outstanding Equinor

shares as of 31 December 2023 and as of 12 March 2024. In aggregate, members of the corporate

assembly owned a total of 18,794 shares as of 31 December 2023 and a total of 21,035 shares as of

12 March 2024. Information about the individual share ownership of the members of the corporate

assembly is presented in section 8 of the annual report «Board statement on corporate governance”. 

4 Remuneration and share ownership of the CEC

4.1 Remuneration of the CEC

In 2023, the aggregate remuneration to the CEC was USD 10,689 thousand (2022: USD 12,647

thousand). 

No loans have been granted by the company to members of the CEC.

Below is an overview of the total remuneration of the CEC members in 2023.

21

Table 1 – Remuneration of the corporate executive committee for the reported financial year

2023

All remuneration elements are provided in the currency of the employing entity and converted to USD at

the average exchange rate for the year. As of 2023, the exchange rate used in quarterly reporting is

consistently applied to remuneration reporting, i.e. USD/NOK. For 2023 the exchange rate is USD/NOK

= 10.5647.

Fixed remuneration

Variable remuneration

Fees

One-

year

variable

Multi-year

variable

Members of the corporate 

executive committee 

(figures in USD thousand)

Base

salary

Fixed

salary

addition

Other

fees

Fringe

benefits

AVP

LTI

SSP

Extra-

ordinary

items

Pension

expenses

Total

remune-

ration

Proportion of

fixed and

variable

remuneration

Anders Opedal

951

171

105

29

391

281

9

0

27

1,963

65%/35%

Irene Rummelhoff

419

75

55

5

149

102

39

0

28

873

67%/33%

Jannicke Nilsson

342

61

65

47

124

84

32

0

35

790

70%/30%

Pål Eitrheim

378

68

63

25

135

92

0

0

22

783

71%/29%

Kjetil Hove

472

85

59

34

180

115

30

0

29

1,005

68%/32%

Siv Helen Rygh Torstensen

297

53

74

5

115

73

26

0

26

670

68%/32%

Geir Tungesvik

375

68

60

10

141

92

27

0

21

794

67%/33%

Philippe François Mathieu

396

71

72

37

160

97

22

0

27

883

68%/32%

Torgrim Reitan

450

81

59

7

165

110

40

0

25

936

66%/34%

Aksel Stenerud

298

54

30

29

108

73

17

0

31

639

69%/31%

Hege Skryseth

381

0

78

14

145

95

0

0

17

731

67%/33%

Jannik Lindbæk

292

53

24

26

103

72

23

0

29

623

68%/32%

Remuneration of the corporate executive committee for the financial year 2022

All remuneration elements are provided in the currency of the employing entity and converted to USD at

the average exchange rate for the year. The exchange rate used for 2022 was: NOK/USD =0.1043

(corresponding to USD/NOK 9.5877).

22

Fixed remuneration

Variable remuneration

Fees

One-

year

variable

Multi-year

variable

Members of the corporate 

executive committee 

(figures in USD thousand)

Base

salary

Fixed

salary

addition

Other

fees

Fringe

benefits

AVP

LTI

SSP

Extra-

ordinary

items

Pension

expenses

Total

remune-

ration

Proportion of

fixed and

variable

remuneration

Anders Opedal

999

180

97

28

411 

295

6

0

28

2,042

65 %/ 35 %

Irene Rummelhoff

436

78

74

10

198 

107

28

0

29

961

65 %/ 35 %

Jannicke Nilsson

360

65

87

47

138 

89

23

0

37

844

70 % / 30

%

Pål Eitrheim

393

71

31

23

146 

97

0

0

23

783

69 % / 31

%

Kjetil Hove

490

88

72

31

202 

120

21

0

30

1,055

67 % / 33%

Siv Helen Rygh Torstensen

311

56

68

20

120 

77

14

0

27

691

70 % / 30

%

Geir Tungesvik

264

48

37

1

98 

65

12

0

17

541

68 % / 32

%

Torgrim Reitan

116

20

21

1

46 

29

7

0

6

245

67 % / 33%

Aksel Stenerud

260

47

49

17

101 

64

10

0

28

575

70 % / 30

%

Hege Skryseth

139

0

33

1

52 

35

0

156

6

422

42 %/ 58 %

Jannik Lindbæk

257

46

24

17

99 

63

14

0

26

546

68 % / 32

%

Notes to the table “Remuneration of the corporate executive committee for the reported financial year”:

●

 The figures are presented on an accrual basis, i.e. for the earning period. 

●

 Comparative figures for 2022 are included for those employees who were part of the CEC in both

2023 and 2022.

●

 All CEC members received their remuneration in NOK.

●

 All figures in the table are presented in USD based on average foreign currency exchange rates.

Average rates 2023: USD

/

NOK = 10.5647, (2022: NOK/USD = 0.1043, corresponding to USD/NOK

9.5877). 

●

Other fees

 include car allowance, holiday pay and other cash payments. 

23

●

Fringe benefits

 include benefits in kind such as company car, commuter apartments and health

program. 

●

AVP

(annual variable pay) is earned in the reporting year and paid out in the following year. 

●

LTI

(long-term incentive)

:

The value included in Table 1 represents the grant, i.e. gross amount,

which, after deduction of tax is invested in shares in the reporting year and subject to a lock-in

period. 

●

SSP

(share savings plan):

the amounts represent the value of the bonus shares received in the

reporting year after the applicable holding period. Refer to the remuneration policy in the Appendix,

section 8.3, for details of this plan. 

●

Pension expenses:

Estimated pension cost for the defined benefit scheme is calculated based on

actuarial assumptions and pensionable salary (mainly base salary) at 31 December 2022 and is

recognised as pension cost in the statement of income for 2023. Geir Tungesvik is maintained in

the closed defined benefit scheme. The pension cost for the defined contribution scheme is

represented by the respective contributions. For the notional contribution scheme, the pension cost

is represented by the contributions and the fair value changes of the employees’ notional assets.

The remaining members of the CEC employed are covered by the defined contribution pension

scheme.

4.2 Shares awarded or due to the CEC in the reported financial year 

Table 3 

Refer to the remuneration policy for details of the share-based plans.

-

 Column 4 “Vesting date” has been excluded from the table, as this represents the same date as

shown in column 5 “End of holding period”.

-

 Column 9 “Shares subject to a performance condition” has been excluded from the table, as there

are no performance conditions in relation to shares.

-

 Column 10 “Shares awarded and unvested at year end” has been excluded from the table, as this

represents the same date as shown in column 11 “Shares subject to a holding period“

-

 For the purposes of this table, “holding period” with respect to LTI represents the period in which

shares are “locked-in” and cannot be disposed of according to plan rules

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

 Opening

 balance

During the year

Closing

balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2020 - 2022

29/05/2020

28/05/2023

3,830

3,830

USD 106,910

2021 - 2023

17/06/2021

16/06/2024

3,614

3,614

Anders Opedal

2022 - 2024

20/05/2022

19/05/2025

4,002

4,002

CEO

2023 - 2025

19/05/2023

18/05/2026

4,530

4,530

USD 129,039

SSP

2023

10/02/2023

319

24

USD 9,042

SUM

11,446

4,849

3,830

12,146

USD 138,081

USD 106,910

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

Name,

Position

1 

Specifi-

cation of

plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning of

the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2020 - 2022

29/05/2020

28/05/2023

3,802

3,802

USD 106,128

2021 - 2023

17/06/2021

16/06/2024

1,267

1,267

2022 - 2024

20/05/2022

19/05/2025

1,487

1,487

2023 - 2025

19/05/2023

18/05/2026

1,684

1,684

Irene Rummelhoff

USD 47,970

EVP MMP

SSP

2023

10/02/2023

1,371

USD 38,860

SUM

6,556

3,055

3,802

4,438

USD 86,830

USD 106,128

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2022 - 2024

20/05/2022

19/05/2025

863

863

 2023 - 2025

19/05/2023

18/05/2026

1,551

1,551

USD 44,181

Geir Tungesvik

SSP

2023

10.02.2023

939

EVP PDP

USD 26,615

SUM

863

2,490

2,414

USD 70,796

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2020 - 2022

29/05/2020

28/05/2023

3,205

3,205

USD 89,464

2021 - 2023

17/06/2021

16/06/2024

1,091

1,091

2022 - 2024

20/05/2022

19/05/2025

1,254

1,254

2023 - 2025

19/05/2023

18/05/2026

1,415

1,415

Jannicke Nilsson

USD 40,307

EVP SSU

SSP

2023

10/02/2023

1,134

USD 32,143

SUM

5,550

2,549

3,205

3,760

USD 72,450

USD 89,464

The main conditions of share award plans

Information regarding the reported financial year

25

Name,

Position

Opening

balance

During the year

Closing

balance

1 

Specifi

-cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2020 - 2022

29/05/2020

28/05/2023

3,385

3,385

USD 94,488

2021 - 2023

17/06/2021

16/06/2024

1,153

1,153

2022 - 2024

20/05/2022

19/05/2025

1,478

1,478

2023 - 2025

19/05/2023

18/05/2026

1,549

1,549

Pål Eitrheim

USD 44,124

EVP REN

SUM

6,016

1,549

3,385

4,180

USD 44,124

USD 94,488

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi

-cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2021 - 2023

17/06/2021

16/06/2024

997

997

2022 - 2024

20/05/2022

19/05/2025

1,670

1,670

Kjetil Hove

2023 - 2025

19/05/2023

18/05/2026

1,894

1,894

USD 53,952

EVP DPN/EPN

SSP

2023

10/02/2023

1,071

USD 30,357

SUM

2,667

2,965

4,561

USD 84,308

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi

-cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2022 - 2024

18/11/2022

17/11/2025

461

461

2023 - 2025

19/05/2023

18/05/2026

1,595

1,595

Hege Skryseth

USD 45,434

EVP TDI

SUM

461

1,595

USD 45,434

2,056

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

26

LTI

2020 - 2022

29/05/2020

28/05/2023

3,376

3,376

USD 94,237

2022 - 2024

20/05/2022

19/05/2025

283

283

2022 - 2024

18/11/2022

17/11/2025

117

117

Torgrim Reitan

2023 - 2025

19/05/2023

18/05/2026

1,892

1,892

 CFO

USD 53,895

SSP

2023

10/02/2023

1,406

USD 39,852

SUM

3,776

3,298

3,376

2,292

USD 93,747

USD 94,237

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi

-cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2021 - 2023

17/06/2021

16/06/2024

545

545

2022 - 2024

20/05/2022

19/05/2025

1,172

1,172

2023 - 2025

19/05/2023

18/05/2026

1,355

1,355

Siv H Rygh Torstensen

USD 38,598

EVP LEG

SSP

2023

10/02/2023

926

USD 26,247

SUM

1,717

2,281

3,072

USD 64,845

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2022 - 2024

20/05/2022

19/05/2025

922

922

2023 - 2025

19/05/2023

18/05/2026

1,256

1,256

USD 35,778

Aksel Stenerud

SSP

2023

10/02/2023

594

EVP PO

USD 16,837

SUM

922

1,850

2,178

USD 52,614

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2022 - 2024

20/05/2022

19/05/2025

952

952

2023 - 2025

19/05/2023

18/05/2026

1,261

1,261

USD 35,920

27

Jannik Lindbæk

SSP

2023

10/02/2023

825

EVP COM

USD 23,384

SUM

952

2,086

2,213

USD 59,304

Name,

Position

The main conditions of share award plans

Information regarding the reported financial year

Opening

balance

During the year

Closing

balance

1 

Specifi-

cation

of plan

2 

Perfor-

mance

period 

3

Award date

5 

End of

holding

period

6 

Shares

awarded at

the

beginning

of the year

7 

Shares

awarded

8 

Shares vested

11 

Shares

subject to a

holding

period

LTI

2023 - 2025

19/05/2023

18/05/2026

1,771

1,771

USD 50,448

Philippe François Mathieu

SSP

2023

10/02/2023

775

EVP EPI

USD 21,967

SUM

2,546

1,771

USD 72,415

4.3 Total number and value of shares held by the CEC

The number of Equinor shares owned by members of the CEC and/or their close associates is shown

below. Individually, each member of the CEC owned less than 1% of the outstanding Equinor shares.

The voting rights of members of the CEC members as shareholders do not differ from those of ordinary

shareholders.

Ownership of

Equinor shares

(incl. shares owned

by close

associates)

As of 1 Jan.

2023

As of 31 Dec.

2023

Market value as of

31 Dec. 2023, USD

thousand

As of 12 March

2024

Anders Opedal

46,996

56,649

1,727

58,602

Torgrim Reitan

11,473

15,482

472

16,530

Geir Tungesvik

17,624

20,702

631

21,401

Irene Rummelhoff

28,152

31,872

972

32,893

Jannicke Nilsson

59,380

63,106

1,924

67,271

Pål Eitrheim

19,644

21,737

663

21,737

Philippe F. Mathieu

4,645

7,529

230

8,105

Kjetil Hove

20,149

23,861

728

24,658

Hege Skryseth

2,633

5,364

164

5,364

Siv Helen Rygh

Torstensen

15,832

19,136

584

20,105

Aksel Stenerud

9,372

11,642

355

12,084

Jannik Lindbæk

12,542

11,592

353

12,206

4.4 Performance and AVP awarded to the CEC members in the reported

financial year 

28

In accordance with Equinor’s performance framework and remuneration policy, performance in relation

to behaviour goals has formed an equal part to the business performance in the holistic performance

assessment. 

The assessment of the performance results for 2023 is presented below, including a score

measurement against the set KPI targets and behaviour goals. 

Each delivery KPI is given a score within a range of 1-5, where 5 is the highest result. Each score

reflects a holistic assessment, where applicable. The holistic assessment may reflect events outside the

control of the CEO or EVPs, such as exceptional fluctuations in commodity prices, changes in global

conditions, the industry operating environment or other relevant context. 

The overall performance on the behaviour goals is also given a score within the range of 1-5.

Performance on behaviour goals is a qualitative assessment by the BoD and the CEO, as applicable,

and is supported by the results of employee feedback surveys. 

The scores are converted into the AVP award percentage, as shown in the below conversion table. 

As mentioned above, two factors – the threshold and the company performance modifier (CPM) - are

applied to the percentage to arrive at the final AVP award pay-out levels, as described above.

Select business delivery KPIs (“what” dimension) set at the corporate level are applicable to both CEO

and the EVPs. 

Table 4 - Performance of CEC members in the reported financial year

29

Corporate delivery KPIs

“WHAT”-dimension – corporate delivery KPIs for CEO and staffs EVPs - total

assessment

3.5

“WHAT”-dimension – corporate delivery for EVPs with business area

responsibilities - total assessment

3.8

Target

Achievements

Assessment

Serious incident frequency

≤ 0.3

0.4

2.9

Upstream CO

2

 intensity

≤ 8 kg/boe

6.7 kg/boe

4.8

Relative TSR

Above average in

peer ranking list

3

rd

 quartile

2.4

Relative RoACE

Ranked in first

quartile among peers 

1

st

 quartile

5.0

Unit production cost (UPC)

4

< 6.0 USD/boe

6.2 USD/boe

3.0

REN power production

4

2 TWh

1.9 TWh

3.0

Holistic assessment of corporate delivery KPIs:

The final scores for the following KPIs have been adjusted from actual score through the

BoD' holistic assessment:   

1)

 Final score for unit production cost was increased due to impact from inflation and

cost pressure

2)

 Final score for REN power production was increased due to close to target result

and substantial improvement from 2022

Additional BA-specific delivery KPIs (“what” dimension) apply to EVPs with business areas

responsibilities, as shown in the respective tables further below. 

Select behaviour goals (“how” dimension) are set in relation to both CEO and the EVPs and assessed

on an individual basis. The total score representing the assessment of the results is shown below for

the respective CEC member. The assessment of individual behaviour goals is not disclosed.

“HOW”-dimension – behaviour goals

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

The performance results of each member of the CEC with respect to the delivery KPIs and behaviour

goals set for such member are set forth further, together with the resulting AVP award level.

Anders Opedal (CEO)

«WHAT»-dimension – corporate delivery KPIs for CEO 

3.5

“HOW”-dimension – behaviour goals

3.8

4

O

nly apply to the CEO and staffs EVPs 

30

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.7

AVP award pre company performance modifier

34 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

982

Award based on performance

evaluation

34%

n/a

334

Adjustment for company modifier

117%

0.17

57

Annual AVP award

391

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Irene Rummelhoff (EVP MMP)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

3.0

Target

Achievements

Assessment

Production efficiency

93.30%

90.90%

2.7

Net operating income (ex derivatives)

(bn USD)

3.3

3.24

3.6

Fixed opex and SG&A (mill USD)

1,285

1,346

2.8

“HOW”-dimension – behaviour goals

3.1

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

AVP award pre company performance modifier

29%

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

440

Award based on performance

evaluation

29%

n/a

128

Adjustment for company modifier

117%

0.17

22

Annual AVP award

149

The performance assessment included the following holistic considerations, which have

influenced the overall score:

31

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

BA-specific KPIs

: The final scores for the following KPIs have been adjusted from actual

score through the CEO’s holistic assessment of the performance: 

Net operating income (ex derivatives) bn USD: Adjusted score for the 2023 market context

and impact of actual delivery 

Jannicke Nilsson (EVP SSU)

«WHAT»-dimension – corporate delivery KPIs for staffs EVPs

3.5

“HOW”-dimension – behaviour goals

3.1

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

AVP award pre company performance modifier

30 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

353

Award based on performance

evaluation

30%

n/a

106

Adjustment for company modifier

117%

0.17

18

Annual AVP award

124

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Pål Eitrheim (EVP REN)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

2.4

Target

Achievements

Assessment

REN power generation (TWh)

2

1.9

2.5

Net operating income adjusted (mill

USD)

> -200

- 454

2.3

“HOW”-dimension – behaviour goals

3.5

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

AVP award pre company performance modifier

29 %

32

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1000)

398

Award based on performance

evaluation

29%

n/a

115

Adjustment for company modifier

117%

0.17

20

Annual AVP award

135

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

BA-specific KPIs:

 The final scores for the following KPIs have been adjusted from actual

score through the CEO’s holistic assessment of the performance:

REN power generation: Adjusted score for impact of delayed startup for Doggerbank unit.

Net operating income adjusted (mill USD): Adjusted for impact from high pre-production

and early phase activity

Kjetil Hove (EVP EPN)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

3.0

Target

Achievements

Assessment

Production (kboe/d)

1,446

1,374

2.5

UPC (nominal USD/boe)

5.8

5.8

3.1

Break-even price (CMU portfolio)

(USD/bbl)

<35

37

3.3

“HOW”-dimension – behaviour goals

3.5

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.4

AVP award pre company performance modifier

31 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

498

Award based on performance

evaluation

31%

n/a

154

Adjustment for company modifier

117%

0.17

26

Annual AVP award

180

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

33

BA-specific KPIs

: The final scores for the following KPIs have been adjusted from actual

score through the CEO’s holistic assessment of the performance: 

Break-even price (CMU portfolio), USD/bbl: Adjusted score for impact on result from high

inflation.

Siv Helen Rygh Torstensen (EVP LEG)

«WHAT»-dimension – corporate delivery KPIs for staffs EVPs

3.5

“HOW”-dimension – behaviour goals

3.5

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.5

AVP award pre company performance modifier

32 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

307

Award based on performance

evaluation

32%

n/a

98

Adjustment for company modifier

117%

0.17

17

Annual AVP award

115

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Geir Tungesvik (EVP PDP)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

3.2

Target

Achievements

Assessment

Number of wells

104

105

3.5

Break-even price (CMU portfolio) 

(USD/bbl)

<35

37

3.3

Estimate development DG3-DG4

100 %

101 %

2.8

“HOW”-dimension – behaviour goals

3.3

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.4

AVP award pre company performance modifier

31 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

34

AVP target

25%

Annual base salary, USD (1,000)

389

Award based on performance

evaluation

31%

n/a

121

Adjustment for company modifier

117%

0.17

20

Annual AVP award

141

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

BA-specific KPIs

: The final scores for the following KPIs have been adjusted from actual

score through the CEO's holistic assessment of the performance:

Break-even price (CMU portfolio), USD/bbl: Adjusted score for impact on result from high

inflation

Torgrim Reitan (CFO)

«WHAT»-dimension – corporate delivery KPIs for staffs EVPs

3.5

“HOW”-dimension – behaviour goals

3.1

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

AVP award pre company performance modifier

30 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

469

Award based on performance

evaluation

30%

n/a

141

Adjustment for company modifier

117%

0.17

24

Annual AVP award

165

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Aksel Stenerud (EVP PO)

«WHAT»-dimension – corporate delivery KPIs for staffs EVPs

3.5

“HOW”-dimension – behaviour goals

3.1

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

35

AVP award pre company performance modifier

30 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

308

Award based on performance

evaluation

30%

n/a

93

Adjustment for company modifier

117%

0.17

16

Annual AVP award

108

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Hege Skryseth (EVP TDI)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

3.1

Target

Achievements

Assessment

Low Carbon R&D

> 30%

40%

3.0

Software consolidation progress

50%

100%

5.0

TDI task responsibility cost savings,

mill NOK, 100%

500

1,000

1.3

“HOW”-dimension – behaviour goals

3.4

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.4

AVP award pre company performance modifier

31 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

400

Award based on performance

evaluation

31%

n/a

124

Adjustment for company modifier

117%

0.17

21

Annual AVP award

145

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

BA-specific KPIs

: The final scores for the following KPIs have been adjusted from actual

score through the CEO’s holistic assessment of the performance: 

Low carbon R&D: Adjusted for impact on target from re-prioritization of R&D portfolio on

low carbon 

36

Jannik Lindbæk (EVP COM)

«WHAT»-dimension – corporate delivery KPIs for staffs EVPs

3.5

“HOW”-dimension – behaviour goals

3.0

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.3

AVP award pre company performance modifier

29 %

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

303

Award based on performance

evaluation

29%

n/a

88

Adjustment for company modifier

117%

0.17

15

Annual AVP award

103

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

Philippe François Mathieu (EVP EPI)

«WHAT»-dimension – corporate delivery KPIs for EVPs with business area

responsibilities 

3.8

“WHAT”-dimension – business area delivery KPIs

3.4

Target

Achievements

Assessment

Production (kboe/d)

677

708

4.0

UPC, nominal USD/boe

6.5

7.1

2.8

Break-even price (CMU portfolio)

(USD/bbl)

<35

37

3.3

“HOW”-dimension – behaviour goals

3.5

Demonstrate accountability, visibility, and engagement for safety, security and

compliance

Build trust in Equinor

Transform the organization to deliver on our common purpose and become a

leading company in the energy transition

Develop strong and diverse succession pipeline

Total performance assessment for AVP

3.6

AVP award pre company performance modifier

33%

AVP award

Award

outcome AVP

%

Reduction

for threshold

USD (1,000)

AVP target

25%

Annual base salary, USD (1,000)

413

Award based on performance

evaluation

33%

n/a

136

37

Adjustment for company modifier

117%

0.17

23

Annual AVP award

160

The performance assessment included the following holistic considerations, which have

influenced the overall score:

Corporate delivery KPIs:

Ref comments to separate table above on corporate delivery

KPIs

BA-specific KPIs:

 The final scores for the following KPIs have been adjusted from actual

score through the CEO’s holistic assessment of the performance:

Break-even price (CMU portfolio), USD/bbl: Adjusted score for impact on result from high

inflation.

4.5 Key performance indicators and behaviour goals forming the basis for AVP

for the CEC in 2024 

The business delivery dimension (“what”) for the variable remuneration (performance year 2024) for the

CEC members will be based on an assessment against the following common corporate KPIs: 

●

 Serious incident frequency (SIF): 0.3 or better 

●

 CO

₂

 intensity for the upstream portfolio: 7 kg CO

₂

/ boe or better 

●

 Unit production cost (UPC): better than 6.5 USD / boe 

●

 Renewable (REN) power production: Doubling from 2023

●

 Relative total shareholder return (TSR): Ranked better than peer average

●

 Relative return on average capital employed (RoACE): Ranked in first quartile among peers 

For EVPs with business area responsibilities, the assessment of the business delivery dimension will in

addition be made against the following KPIs:

Busines

s area

KPI

Unit

Target

EPN

Production

kboe/d

1,400

Unit Production Cost (UPC)

Nominal

USD/boe

< 6.0

Break-even project portfolio 

USD/bbl

real 2023

~ 35

EPI

Production

kboe/d

672

Unit Production Cost (UPC)

Nominal

USD/boe

< 7.8

Break-even project portfolio 

USD/bbl

real 2023

~ 35

MMP

Production efficiency

%

≥ 91.5

Accessed storage volume additions

Mton

not

disclosed

5

Adjusted earnings

USD bn

Above mid

range

(>2,4)

5

 Not disclosed due to commercial sensitivity

38

REN

REN power production 

TWh

Doubling

from 2023

Adjusted earnings

USD bn

not

disclosed

6

Strategic progress in renewables - Projects progressed to Final

Investment Decision

GW

2.5

PDP

Number of new wells 

number

107

Break-even project portfolio 

USD/bbl

real 2023

~ 35

Estimate development DG3-DG4 (changes)

%

 ≤ 0

TDI

High Impact Technology Implementation (HITI) - Tier 1

Implementation (value and implementation %, EPN)

%

> 90

IT investment and R&D (cost development %)

%

< 0

IT Opex (cost development %)

%

< 0

The behaviour dimension (“how”) will be based on an individual assessment against the following goals: 

-

 Demonstrate accountability, visibility, and engagement for safety, security and compliance

-

 Build trust in Equinor 

-

 Transform the organization to deliver on our common purpose and become a leading company in

the energy transition 

-

 Develop strong and diverse succession pipeline

5 Remuneration and company performance for 2019-2023

5.1 Comparative tables over the remuneration and company performance

compared to the last five reported financial years 

Table 5 - Comparative table over the remuneration and company performance over the last five reported financial years

(RFY)

Executive remuneration for 2019-2023

All amounts in USD

Remuneration

2019

2020

2021

2022

2023

Anders Opedal, CEO

Total remuneration and %

change vs previous year

881,029

-24.79%

814,098

-7.60%

2,055,02

3

152.43%

2,042,382

-0.62%

1,963,097

-3.88%

Base salary % increase in annual

salary review and on other

adjustments

4.00%

-

0.00%

133.30

%

3.50%

-

4.90%

-

5.00%

0

AVP % pre and post threshold

and company performance

modifier

28.00%

23.24%

0,00%

0,00%

30.00%

45.00%

30.00%

39.90%

34.00%

39.78%

LTI % pre and post threshold 

25.00%

25.00%

25.00%

25.00%

30.00%

15,00%

30.00%

30.00%

30.00%

30.00%

Remuneration

2019

2020

2021

2022

2023

39

Irene Rummelhoff, EVP MMP

Total remuneration and %

change vs previous year

826,342

-10.66%

681,363

-

17.54%

923,578

35.55%

960,784

4.03%

873,398

-9.10%

Base salary % increase in annual

salary review and on other

adjustments

3.80%

-

-

-

3.00%

5.40%

4.90%

-

7.70%

0

AVP % pre and post threshold

and company performance

modifier

26.00%

21.58%

-

-

28.00%

42.00%

33.00%

43.89%

29.00%

33.93%

LTI % pre and post threshold 

25.00%

25.00%

25.00%

25.00%

25.00%

12.50%

25.00%

25.00%

25.00%

25.00%

Jannicke Nilsson, EVP SSU

Total remuneration and %

change vs previous year

757,055

-14.98%

623,702

-

17.61%

829,810

33.05%

844,012

1.71%

790,367

-6.36%

Base salary % increase in annual

salary review and on other

adjustments

3.60%

-

-

-

3.00%

5.40%

4.50%

-

5.00%

0

AVP % pre and post threshold

and company performance

modifier

23.00%

19.09%

-

-

27.00%

40.50%

28.00%

37.24%

30.00%

35.10%

LTI % pre and post threshold 

25.00%

25.00%

25.00%

25.00%

25.00%

12.50%

25.00%

25.00%

25.00%

25.00%

Pål Eitrheim, EVP REN

Total remuneration and %

change vs previous year

669,000

-17.19%

524,113

-

21.66%

796,048

51.88%

782,549

-1.70%

782,576

0.00%

Base salary % increase in annual

salary review and on other

adjustments

3.40%

-

-

-

4.00%

17.20%

4.90%

-

8.30%

0

AVP % pre and post threshold

and company performance

modifier

26.00%

21.58%

-

-

31.00%

46.50%

27.00%

35.91%

29.00%

33.93%

LTI % pre and post threshold 

25.00%

25.00%

25.00%

25.00%

25.00%

12.50%

25.00%

25.00%

25.00%

25.00%

All amounts in USD

Remuneration

2019

2020

2021

2022

2023

Kjetil Hove, EVP EPN

Total remuneration and %

change vs previous year

-

-

-

-

1,004,28

3

-

1,055,271

5.08%

1,004,604

-4.80%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

5.05%

-

8.30%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

32.00%

48.00%

30.00%

39.90%

31.00%

36.27%

LTI % pre and post threshold 

-

-

-

-

25.00%

12.50%

25.00%

25.00%

25.00%

25.00%

All amounts in USD

Remuneration

2019

2020

2021

2022

2023

Torgrim Reitan, EVP CFO

Total remuneration and %

change vs previous year

904,980

-24.97%

766,448

-

15.31%

-

-

1,027,357

-

935,718

-8.92%

40

Base salary % increase in annual

salary review and on other

adjustments

3.73%

-

-

-

-

-

-

-

6.50%

0

AVP % pre and post threshold

and company performance

modifier

27.00%

22.41%

-

-

-

-

30.00%

39.90%

30.00%

35.10%

LTI % pre and post threshold 

25.00%

25.00%

25.00%

25.00%

-

-

25.00%

25.00%

25.00%

25.00%

Siv Helen Rygh Torstensen, EVP LEG

Total remuneration and %

change vs previous year

-

-

-

-

645,511

-

691,436

7.11%

669,609

-3.16%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

4.90%

-

5.30%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

27.00%

40.50%

28.00%

37.24%

32.00%

37.44%

LTI % pre and post threshold 

-

-

-

-

25.00%

12.50%

25.00%

25.00%

25.00%

25.00%

Geir Tungesvik, EVP PDP

Total remuneration and %

change vs previous year

-

-

-

-

-

-

806,131

-

794,266

-1.47%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

-

-

5.60%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

-

-

27.00%

35.91%

31.00%

36.27%

LTI % pre and post threshold 

-

-

-

-

-

-

25.00%

25.00%

25.00%

25.00%

Hege Skryseth, EVP TDI

Total remuneration and %

change vs previous year

-

-

-

-

-

-

1,262,536

-

730,784

-42.12%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

-

-

5.60%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

-

-

28.00%

37.24%

31.00%

36.27%

LTI % pre and post threshold 

-

-

-

-

-

-

25.00%

25.00%

25.00%

25.00%

Aksel Stenerud, EVP PO

Total remuneration and %

change vs previous year

-

-

-

-

-

-

686,387

-

639,089

-6.89%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

-

-

5.60%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

-

-

28.00%

37.24%

30.00%

35.10%

LTI % pre and post threshold 

-

-

-

-

-

-

25.00%

25.00%

25.00%

25.00%

Jannik Lindbæk, EVP COM

41

Total remuneration and %

change vs previous year

-

-

-

-

-

-

650,737

-

622,577

-4.33%

Base salary % increase in annual

salary review and on other

adjustments

-

-

-

-

-

-

-

-

5.30%

0

AVP % pre and post threshold

and company performance

modifier

-

-

-

-

-

-

28.00%

37.24%

29.00%

33.93%

LTI % pre and post threshold 

-

-

-

-

-

-

25.00%

25.00%

25.00%

25.00%

Philippe François Mathieu, EVP

EPI

-

-

-

-

-

-

-

-

-

-

Notes to the table “Executive remuneration for 2019-2023”:

-

 Total remuneration consists of taxable compensation, non-taxable benefits in kind, and estimated

pension cost for the years 2019-2020

Company performance - effect on

AVP and LTI

2019

2020

2021

2022

2023

AVP

LTI

AVP

LTI

AVP

LTI

AVP

LTI

AVP

LTI

Threshold

-

-

50 %

reduct.

-

-

50 %

reduct.

-

-

-

-

Company performance modifier

83%

-

133%

-

150%

-

133%

-

117%

-

All amounts in USD

Average remuneration on a full-time

equivalent basis of employees

2019

2020

2021

2022

2023

Equinor ASA

4)

Average base salary and %

change vs previous year, based

on USD amounts

90,260

-4.90%

86,229

-4.50%

95,893

11.20%

88,923

-7.27%

84,568

-4.90%

Change in average base salary

vs previous year, based on NOK

amounts

-

3.00%

-

1.60%

-

2.00%

-

3.40%

-

4.82%

Average total remuneration and

% change vs previous year,

based on USD amounts

123,626

-7.50%

115,137

-6.90%

135,597

17.80%

144,868

6.84%

135,611

-6.39%

Change in average total

remuneration vs previous year,

based on NOK amounts

-

0.20%

-

-0.90%

-

8.10%

-

19.2%

-

3.17%

General salary increase frame

-

3.50%

-

0.80%

-

3.50%

-

4.90%

-

5.60%

General bonus %

-

4.50%

-

3.50%

-

10.50%

-

9.30%

-

8.00%

AVP % range from manager to

SVP pre and post company

performance modifier and

threshold

11.25% -

17.5%

9.34% -

14.53%

11.25% -

17.5%

7.48% -

11.64%

11.25% -

17.5%

16.88% -

26.25%

11.25%-

17.50%

14.96%-

23.28%

11.25%-

17.50%

13.16%-

20.48%

Notes to the table “Average remuneration on a full-time equivalent basis of employees”:

●

 Offshore workers with 2-4 schedule reported as FTE 100%

42

●

 Annual salary increase is affected by the USD/NOK exchange rate

●

 Holiday and bonus pay are included for the year of accrual

●

 Annual total remuneration increase is affected by bonus and any bonus shares from the SSP or

LTI

●

 Overtime allowance is not included. Pension is included as of 2022

●

 The general bonus is payable to all permanent employees of Equinor ASA who do not

participate in other short-term incentive plans, such as the AVP.

6 Statement by the board of directors on the remuneration report

The BoD has today considered and approved the remuneration report of Equinor for the financial year 1

January - 31 December 2023. 

The remuneration report has been prepared in accordance with Norwegian Public Limited Liability

Companies Act, section 6-16b and regulation 2020-12-

11

-2730 and the Norwegian Accounting Act

section 7-31b.

In our opinion, the remuneration report is in accordance with the remuneration policy adopted at the

annual general meeting, and is free from material misstatement and omissions, whether due to fraud or

error.

The remuneration report will be presented for an advisory vote at the annual general meeting.

Oslo, 17

March 2024

The Board of directors of Equinor 

Jon Erik Reinhardsen, Chair

Anne Drinkwater, Deputy-chair

Hilde Møllerstad 

Per Martin Labråten 

Tove Andersen

Rebekka Glasser Herlofsen 

Finn Bjørn Ruyter 

Haakon Bruun-Hanssen

Stig Lægreid 

Jonathan Lewis 

43

7 Independent auditor’s statement on the remuneration report

[Removed from Exhibit 15.6 as it does not form part of Equinor’s Annual Report on Form 20-F as filed

with the SEC.]

44

8 Appendix: Executive remuneration policy 2021

8.1 Remuneration to the board of directors 

Approach to setting fees

Basis of fees

Other items

The remuneration to the board

and its committees is decided

by the corporate assembly,

based on a recommendation

from the nomination

committee.

The board members have an annual,

fixed remuneration, except for deputy

members (only elected for employee-

representative board members) who

receive remuneration per meeting

attended.

Separate rates are set for the board's

chair, deputy chair and other members.

Separate rates are also adopted for the

board's committees, with similar

differentiation between the chair and the

other members of each committee.

The employee-representative members of

the board receive the same remuneration

as the shareholder-representative

members. The board receives its

remuneration by cash payment.

The board members from outside Scandinavia and

outside Europe, respectively, receive separate

travel allowances for each meeting attended.

Remuneration for board membership is not linked to

performance and no share or option programmes or

similar structures are in place.

Employee-representative board members may

participate in variable pay, pension and benefit

programs according to their location and grade in

line with other employees.

None of the shareholder-representative board

members have a pension scheme or agreement

concerning pay after termination of their office with

the company.

If shareholder-representative members of the board

and/or companies they are associated with should

take on specific assignments for Equinor in addition

to their board membership, this will be disclosed to

the full board.

8.2 Remuneration to the corporate assembly 

Approach to setting fees

Basis of fees

The remuneration to the corporate assembly is decided by the

general meeting, based on a recommendation from the

nomination committee

The members have an annual, fixed remuneration, except for

deputy members who receive remuneration per meeting

attended.

Separate rates are set for the corporate assembly’s chair,

deputy chair and other members. The employee-elected

members of the corporate assembly receive the same

remuneration as the shareholder-elected members.

8.3 Remuneration to the CEC

The board of directors’ complete remuneration policy and report for executive personnel follows. 

Remuneration policy 

The following guidelines for remuneration of Equinor’ corporate

executive committee proposed by the board of directors were

approved by the 2021 annual general meeting, pursuant to the

Norwegian Public Limited Liability Companies Act, section 6-16

a and supplementing regulations. The policy also includes

compensation to members of the board of directors and the

corporate assembly employed by the company, which is

explained in the above section “ Remuneration to the board of

directors and corporate assembly”. The policy is subject to

approval by the annual general meeting at every material

change and, in any case, at least every fourth year. 

Equinor’s remuneration policy and terms are aligned with the

company’s overall strategy, values, people policy and

performance-oriented framework. Our rewards and recognition

for executives are designed to attract and retain the right

people; people who are committed to deliver on our business

strategy and able to adapt to a changing business

environment. Equinor’s remuneration framework contributes to

the business strategy, long-term interests and sustainability of

the company. 

45

A key role for the board of directors is to ensure that executive

compensation is competitive, but not market leading, in the

markets where we operate. The board is committed to

ensuring that executive compensation is fair and aligned with

our overall remuneration philosophy and compensation levels

in the company, and in line with shareholders’ interests.

The remuneration policy is an integrated part of our values-

based performance framework. It has been designed to:

●

 Contribute to the business strategy, long-term

interests and sustainability of the company

●

 Strengthen the common interests of employees in the

Equinor group and its shareholders

●

 Reflect the company’s overall performance and

financial results

●

 Be competitive and aligned with local markets

●

 Equally reward and recognise “What” we deliver and

“How” we deliver 

●

 Differentiate on the basis of responsibilities and

performance

●

 Be acknowledged as fair, transparent, consistent and

non-discriminatory

●

 Promote collaboration and teamwork

●

 Fully align with our values and HSE standards

●

 Promote continuous improvement and a sustainable

cost level

The decision-making process 

The decision-making process for implementing or changing our

remuneration policy, and the determination of salaries and

other remuneration for the corporate executive committee, are

in accordance with the provisions of the Norwegian public

limited liability companies act sections 5-6 and 6-16 a and the

board’s rules of procedure. The board of director’s rules of

procedure are available at www.equinor.com/board.

The board of directors has appointed a designated

compensation and executive development committee. The

compensation and executive development committee is a

preparatory body for the board of directors. The committee’s

main objective is to assist the board of directors in its work

relating to the terms of employment for Equinor’s chief

executive officer and the main principles and strategy for the

remuneration and leadership development of our senior

executives. The board of directors determines the chief

executive officer’s salary and other terms of employment. The

committee shall prepare a proposal for new guidelines at every

material change and, in any case, every fourth year and submit

it to the general meeting for resolution. The guidelines shall be

in force until new guidelines have been adopted by the general

meeting. 

The compensation and executive development committee

answers to the board of Equinor ASA for the performance of its

duties. The work of the committee in no way alters the

responsibilities of the board of directors or the individual board

members.

For further details about the roles and responsibilities of the

compensation and executive development committee, please

refer to the committee’s instructions available at

www.equinor.com/compensationcommittee.

Equinor purpose, vision and overall strategy

Equinor’s purpose is turning natural resources into energy for

people and progress for society, and our vision is to shape the

future of energy. We are strongly committed to creating

shareholder value and with a leading role in the energy

transition towards a low-carbon future. 

While our strategic pillars of “always safe”, “high value” and

“low carbon” remain firm, we will further strengthen in the areas

of a) an optimised oil & gas portfolio, b) a faster growing

renewable business, c) expanding our low-carbon solutions

business. 

Within all areas, technology and innovation will be key

accelerators to drive value and improved performance. We will

use our strengths and experience within the oil & gas portfolio

as a foundation for developing offshore wind at scale,

establishing new value chains, and for developing new low

carbon energy sources.

Equinor’s performance framework and the

link to business strategy, long-term interests

and sustainability of the company

Our performance framework translates the company vision,

values and strategy into actions and results for the company,

its units, teams and every leader and employee. 

Performance is evaluated in two dimensions; “What” we deliver

and “How” we deliver. This is the core of our values-based

performance culture and means that delivery (“what”) and

behaviour (“how”) are equally weighted when recognising and

rewarding individual performance. 

“What” we deliver (business delivery) is defined through the

company’s performance framework “Ambition to Action”, which

addresses strategic objectives, key performance Indicators

(performance indicators) and actions across the five

perspectives; Safety, Security and Sustainability, People and

Organisation, Operations, Market and Finance. Generally,

Equinor believes in setting ambitious targets to inspire and

drive strong performance. Each year individual performance

goals (“what”) based on the company’s “Ambition to Action” are

established for the CEO and the executive vice presidents.

The board decides annually a set of strategic objectives and

performance indicators that will form basis for the assessment

of the business delivery dimension (“What”). These

performance indicators and related targets for the upcoming

performance year shall be disclosed in the annual

remuneration report. Examples of such performance indicators

are Serious Incident Frequency (SIF), CO2 intensity for the

upstream portfolio, Levelised cost of energy (LCOE),

Production efficiency (PE), Production based availability (PBA),

Relative Total Shareholder Return (TSR), Relative ROACE,

Improvement impact etc.

Goals on “How” we deliver are based on Equinor’s core values

and leadership principles and address the behaviour required

and expected to achieve the delivery goals. We believe in

46

developing a strong leadership and culture recognised by our

values, driving the long-term and sustainable success of the

company. The CEO and the executive vice presidents have

individual behaviour goals within prioritised behaviour themes

such as safety and compliance, empowerment, diversity and

inclusion, collaboration and sustainability and climate.

Performance evaluation is holistic, involving both measurement

and assessment. Significant changes in assumptions are taken

into account, as well as target ambition levels, sustainability of

delivered results and strategic contribution.

The balanced approach, which involves a broad set of goals

defined in relation to both “What” and “How” dimensions and

an overall performance evaluation, significantly reduces the

likelihood that remuneration policies may incentivise excessive

risk-taking or have other material adverse effects.

The remuneration concept for the corporate executive

committee Equinor’s remuneration for the corporate executive

committee consists of the following core elements;

●

 Fixed remuneration: base salary and as applicable

fixed salary addition 

●

 Variable pay: annual variable pay (AVP) and long-

term incentive (LTI)

●

 Benefits: primarily pension, insurance and share

savings plan

The following table illustrate how the reward policy is translated

into our key remuneration elements.

47

Main elements - Equinor executive remuneration

Remuneration

element

 Objective

Award level

 Performance criteria

Base

salary

Attract and retain the right

individuals by providing

competitive but not

market-leading terms.

We offer base salary levels which are aligned with and

differentiated according to the individual's

responsibility, performance and contribution to

company’s goals. The level is competitive in the

markets in which we operate. 

The base salary is normally subject

to annual review based on an

evaluation of the individual’s

performance and contribution to

the company’s goals.

Fixed

salary

addition

The fixed salary addition is

paid in lieu of pension

accrual above 12G, applied

as a supplementing fixed

remuneration element to

be competitive in the

market.

Members of the corporate executive committee

employed by Equinor ASA prior to 1 September 2017,

that have taken up their first position in the CEC after

13 February 2015, receive a fixed salary addition in

lieu of pension accrual above 12G

6

 with reference to

the section on pension and insurance scheme.

No performance criteria are linked

to the fixed salary addition. The

fixed salary addition is not

pensionable and does not form

basis for variable pay.

Annual

variable

pay (AVP)

Encourage our pay for

performance culture and

individual’s contribution to

the company’s business

strategy. Rewarding

individuals for annual

achievement of business

objectives, both the

“What” and the “How”.

Members of the corporate executive committee

employed by Equinor ASA are from performance year

2022 entitled to annual variable pay ranging from 0 –

45% of their base salary. Target

7

 value is 25%. For

members of the CEC employed outside the Norwegian

market, see section below on remuneration policy for

international executives.

The threshold principles and the company

performance modifier are applied (see explanations

below).

The company reserves the right to recover all or part

of the annual bonus, if performance data is

subsequently proven to be misstated. 

Performance is measured over one

financial year and is based on the

achievement of annual

performance goals (“How” and

“What” to deliver), in order to

create long-term and sustainable

shareholder value. Assessment of

goals defined in the individual’s

performance contract including

objectives related to selected

performance indicator’s on the

balanced scorecard constitute the

basis for annual variable pay. 

Long-term

incentive

(LTI)

Strengthen the alignment

of top management and

shareholders’ long-term

interests and sustainability

of the company. Retention

of key executives. 

For members of the corporate executive committee

employed by Equinor ASA, the LTI is calculated as a

portion of the participant’s base salary. On behalf of

the participant, the company acquires shares

equivalent to the net annual grant amount. The shares

are subject to a three-year lock-in period and then

released for the participant’s disposal. If the lock-in

obligations are not fulfilled, the executive has to pay

back the gross value of the locked-in shares limited to

the gross value of the grant amount.

The level of the annual LTI reward for the CEC

members employed by Equinor ASA is in the range of

25-30% of the base salary. For members of the CEC

employed outside the Norwegian market, see section

below on remuneration policy for international

executives.

The threshold principles are applied to the annual

grant. The company performance modifier is not

applied to the LTI in Equinor ASA.

In Equinor ASA, LTI participation

and grant level are reflective of the

level and impact of the position

and company performance as

reflected by the threshold.

Pension &

insurance

schemes

Provide competitive

postemployment and other

benefits.

The company offers a general occupational pension

plan and insurance scheme aligned with local

markets. Reference is made to the section on pension

and insurance scheme.

N/A 

Employee

share

savings

programme

(SSP)

Align and strengthen

employee and

shareholders’ interests

and remunerate for long

term commitment and

value creation.

Eligibility extends to all employees at Equinor and in

all markets, subject to local legislation. Participants

can purchase shares up to 5% of base salary. 

With effect from 2022 share

savings, bonus shares from

the share saving programme will

be awarded to the CEO and EVPs

after a lock in

period of 3 calendar years after

the year of saving.

Other

taxable and

non-

taxable

benefits

Attract and retain the right

individuals by providing

competitive but not

market-leading terms.

The members of the corporate executive committee

have benefits in-kind such as company car and health

checks. They are also eligible for participation in the

share saving scheme as described above, and they

take part in the general benefit and welfare program of

the company.

N/A

6

 G represents the basic amount of the Norwegian social security system. 1G per 31 December 2023 equals NOK 118 620..

7

 Target value reflects satisfactory deliveries according to agreed goals

48

Remuneration policy for international executives

Equinor is a broad global energy company, developing oil, gas, wind and solar energy in around 30 countries. The

company has high goals related to diversity and inclusion, and diversity at all levels including among top management is

crucial in ensuring the long-term sustainable success of the company. From time to time the company will appoint

executives employed in international markets with different framework for executive base pay, variable pay and benefits,

than what is the case in the Norwegian market. To be able to hire international executives, the company needs to offer

competitive compensation in the markets where it operates. The policy of being competitive but not market leading still

remains. 

In order to ensure Equinor’s competitive position and attract talent in the international market, the board of directors has

the mandate to exceed the levels for variable pay and pension terms described in the table above, for remuneration of

executive vice presidents hired in the international market and the remuneration level will reflect the at any time

prevailing and documented market level for the EVP position. The annual variable pay shall not exceed 50% of base

salary at target (100% maximum) and the long-term incentive (LTI) annual grant shall be maximum 70% of base salary.

The threshold for variable pay and the company performance modifier as described below will apply. For the

international LTI a three years’ average company performance modifier will be applied. Pension contribution will be in

accordance with the local market, and the 12G cap on pension used in the Norwegian tax favored regime is not

applicable for the international executives. Any decision on terms and conditions as described above will be included in

the remuneration report subject to review and endorsement by the annual general meeting.

Duration of contracts with executive vice presidents

Duration of contracts with the executive vice presidents are not limited to a certain period and are valid until the

executive resigns from the position or enters into a new position in the company.

Mobility

To support the company’s need for a mobile workforce also at the senior executive level, the company’s standard

international assignment framework can be used for candidates employed in a different country than the location of the

CEC role. International assignment for a CEC position will normally be limited to a three-year period. 

Localisation and relocation

If an executive is recruited to Equinor and employed on local terms and conditions different from the executive’s country

and market, the company may decide to cover reasonable relocation costs including housing and schooling within the

international assignment framework for these elements for a period up to two years. 

Threshold for variable pay and company performance modifier

The threshold and company performance modifier are implemented to strengthen the link between the company’s

overall financial results and the individual variable pay.

Threshold

The threshold is implemented for affordability reasons to ensure that no or reduced variable pay would be granted if the

company’s financial performance and position is weak and in a critical situation. The financial threshold is applicable for

payment of annual variable pay and award of LTI grant.

The threshold has the following guiding parameters; 

1) Cash flows provided by operating activities after tax and before working capital items 

2) Net debt ratio and development 

3) Company’s overall operational and financial performance.

“Green zone”

Cash flows provided by operating activities after tax and before working capital items higher than USD 12 billion and a

net debt ratio below 30% will normally guide for no reduction of bonus.

“Yellow zone”

 Cash flows provided by operating activities after tax and before working capital items lower than USD 12 billion but

higher than USD 8 billion and a net debt ratio between 30% and 45% will normally guide a reduction of bonus but not

annulment.

“Red zone”

 Cash flows provided by operating activities after tax and before working capital items lower than USD 8 billion and a net

debt ratio above 45% will normally guide no bonus.

Application of the threshold is subject to a discretionary assessment of the company’s overall performance by the board

of directors. These measures and targets are indicative and will form part of a broader assessment of bonus award. The

49

conclusion considers both achieved results and how these results are expected to impact the company’s medium and

long-term development and value creation.

Company performance modifier

Based on approval by the annual general meeting in 2016, a company performance modifier was introduced and has

been applied in the calculation of variable pay. 

The company performance will be assessed against two equally weighted measures: relative total shareholder return

(TSR) and relative return on average capital employed (ROACE). TSR and ROACE are currently also applied as

performance indicators in the corporate performance management system. 

The results of these two performance measures are compared to our peers and determine Equinor’s relative position. A

position of Quartile 1 means that Equinor is amongst the top scoring quartile of peer companies. A position of Quartile 4

means that Equinor is in the bottom performing quartile. In years with strong deliveries on relative TSR and ROACE, the

matrix will result in the variable pay being modified with a factor higher than one and, correspondingly, lower than one in

weak years. The combination of ratings for both measures, will act as a ‘multiplier’ according to the guideline in the

matrix displayed below.

By applying relative numbers, the effect of fluctuating oil price will be reduced. 

Within the framework of 50 - 150%, the matrix is a guideline and the multiplier (percentages) may be adjusted if oil or

gas price effects or other occurrences outside the control of the company are deemed to cause disproportionate results

in a given year. Application of the modifier is subject to discretionary assessment based on the company’s overall

performance.

The company performance modifier will be used in calculations of annual variable pay for members of the corporate

executive committee. The modifier will also be applied in other variable pay schemes below the corporate executive

level. Further application of the company performance modifier will also be assessed and decided if deemed

appropriate.

The annual variable pay for members of the corporate executive committee employed by Equinor ASA will be within a

framework of 45% of base salary, irrespective of the result of the modifier. 

Pension and insurance schemes 

Members of the corporate executive committee in Equinor ASA are covered by the company’s general occupational

pension scheme which is a defined contribution scheme with a contribution level of 7% below 7,1 G and 22% above 7,1

G. A defined benefit scheme is retained by a grandfathered group of employees. For new members of the corporate

executive committee appointed after 13 February 2015, a cap on pension contribution at 12 G is applied. In lieu of

pension accrual above 12 G a fixed salary addition of 18% is provided. This element does not form basis of calculation

of AVP and LTI. The 12 G cap is based on the Norwegian tax favoured occupational pension schemes and will not be

applied to the pension schemes of executives employed outside Norway. 

50

Members of the corporate executive committee employed in Equinor ASA and appointed before 13 February 2015,

maintain their pension contribution above 12 G based on obligations in previously established agreements.

Pension terms that historically have been individually agreed with elements outside the framework above will be

described in the annual remuneration report. 

Equinor ASA has implemented a general cap on pensionable income at 12 G for all new hires into the company

employed as of 1 September 2017.

In addition to the pension benefits outlined above, the executive vice presidents in the parent company are offered

disability and dependents’ benefits in accordance with Equinor’s general pension plan/defined benefit plan. Members of

the corporate executive committee are covered by the general insurance schemes applicable within Equinor.

Severance pay arrangements

The chief executive officer and the executive vice presidents are entitled to a severance payment equivalent to six

months’ salary, commencing after the six months’ notice period, when the resignation is requested by the company. The

same amount of severance payment is also payable if the parties agree that the employment should be discontinued,

and the individual gives notice pursuant to a written agreement with the company. Any other payment earned by the

individual during the period of severance payment will be fully deducted. This relates to earnings from any employment

or business activity where the individual has active ownership.

The entitlement to severance payment is conditional on the chief executive officer or the executive vice president not

being guilty of gross misconduct, gross negligence, disloyalty or other material breach of his/her duties.

The chief executive officer’s/executive vice president’s own notice will not instigate any severance payment.

Release of earned LTI grants and bonus shares at end of employment 

If termination of employment is based on a mutual agreement between the executive and Equinor, the company may

decide to release locked in LTI shares and award already earned bonus shares in the share savings scheme at the end

of employment.

Salary and employment conditions of other employees

Salary and employment conditions of employees of the company have been taken into account when establishing the

remuneration policy. The remuneration and employment framework for the members of the executive committee are

based on the same main principles as applicable for the remuneration frameworks for senior leaders in the company in

general.

Recruitment policy

From time to time, Equinor may recruit executives from outside of the organisation. Our principles are designed to

attract and retain the right individuals to ensure the successful implementation of our strategy and to safeguard our

long-term interests. 

If an individual forfeits remuneration as a result of recruitment to Equinor, the company can compensate partly or fully

for the documented financial loss of unvested short and long-term incentive opportunity held by preferred external

candidates. Such decision will take into consideration the vehicle, expected value and timing of forfeited awards. Any

buy-out will be limited to one year’s base salary and normally paid over a period of 24 months.

EX-15

 1

Board statement on corporate governance

Message from the chair of the board of directors 

Together with Equinor’s values, risk management principles and our Code of Conduct, the principles for corporate governance are

Equinor’s most important management framework. Equinor’s board of directors adheres to good corporate governance standards and

will ensure that Equinor either complies with the Norwegian Code of Practice for Corporate Governance (the Code of Practice) or

explains possible deviations from the Code of Practice. The Code of Practice can be found at www.nues.no . 

The principles and legislation for reporting are evolving. Last year, we published our first integrated annual report which combined

financial and sustainability reporting into one report. This year, we present the board’s statement on corporate governance separately

for the first time, highlighting the importance of our principles for corporate governance. Next year, the European Sustainability

Reporting Standards (ESRS) will shape our reporting, as we also expect the Corporate Sustainability Reporting Directive (CSRD) to

add further requirements to our reporting, including on corporate governance. 

The board of directors are closely following the changes and will continue to do so in 2024 to ensure that our corporate governance

principles and practices are of the highest quality.

Table of contents

1 Implementation and reporting ................................................................ ................................ ................................ ...........................3

Compliance with New York Stock Exchange listing rules ................................................................ ................................ .................3

2 Business ................................ ................................ ................................ ................................ ................................ ...........................4

3 Equity and dividends ................................ ................................ ................................ ................................ ................................ .........5

4 Equal treatment of shareholders and transactions with close associates ................................ ................................ ..........................6

5 Freely negotiable shares................................................................ ................................ ................................ ................................ ...7

6 General meeting of shareholders ................................ ................................ ................................ ................................ ......................7

7 Nomination committee ................................ ................................ ................................ ................................ ................................ ......8

8 Corporate assembly, board of directors and corporate executive committee ................................ ................................ ..................10

Corporate assembly ................................................................ ................................ ................................ ................................ .......10

Board of directors ................................ ................................ ................................ ................................ ................................ ...........12

Corporate executive committee (CEC) ................................ ................................ ................................ ................................ ...........12

9 The work of the board of directors ................................................................ ................................ ................................ ..................13

The board of directors’ committees ................................................................ ................................ ................................ ................14

10 Risk management and internal control ................................ ................................ ................................ ................................ ..........16

Risk management ................................................................ ................................ ................................ ................................ ..........16

Code of Conduct ................................................................ ................................ ................................ ................................ ............17

11 Remuneration to the board of directors and corporate assembly ................................ ................................ ................................ ..18

12 Remuneration to the corporate executive committee ................................ ................................ ................................ ....................18

13 Information and communications ................................ ................................ ................................ ................................ ..................18

14 Take-overs ................................ ................................ ................................ ................................ ................................ ....................19

15 External auditor................................................................ ................................ ................................ ................................ .............19

 2

This statement provides a detailed overview of how Equinor follows the Norwegian Code of Practice for Corporate Governance (the

Code of Practice) and describes the foundation and principles for Equinor’s corporate governance structure which should be seen in

context with information in the Integrated Annual Report, section 1.9 Corporate governance and risk management. Further information

can be found on www.equinor.com, 

The Code of Practice covers 15 topics, and this board statement covers each of these topics and describes Equinor’s adherence to

the Code of Practice. The information concerning corporate governance that is required to be disclosed under the Norwegian

Accounting Act Section 3-3b is included in this board statement as follows: 

1.

 “A statement of the recommendations and regulations concerning corporate governance that the enterprise is subject to or

otherwise chooses to comply with”: Described in this introduction as well as in section 1 Implementation and reporting.

2.

 “Information on where the recommendations and regulations mentioned in no 1 are available to the public”: Described in this

introduction.

3.

 “Reasons for any non-conformance with recommendations and regulations mentioned in no 1”: There are two deviations from the

Code of Practice’ recommendations, one in section 6 General meeting of shareholders and the other in section 14 Take-overs.

The reasons for these deviations are described under the respective sections of this statement.

4.

 “A description of the main elements in the enterprises, and for entities that prepare Consolidated financial statements, also the

Group’s (if relevant) internal control and risk management systems linked to the financial reporting process”: Described in section

10 Risk management and internal control.

5.

 “Articles of Association which entirely or partly expand or depart from provisions of Chapter 5 of the Public Limited Liability

Companies Act”: Described in section 6 General meeting of shareholders.

6.

 “The composition of the board of directors, the corporate assembly, the Committee of Shareholders’ Representatives and the

Control Committee and any working committees related to these bodies, as well as a description of the main instructions and

guidelines that apply to the work of the bodies and any committees”: Described in section 8 Corporate assembly, board of

directors and corporate executive committee and section 9 The work of the board of directors.

7.

 “Articles of Association governing the appointment and replacement of directors”: Described in section 8 Corporate assembly,

board of directors and corporate executive committee under the sub-heading Board of directors.

8.

 “Articles of Association and authorisations empowering the board of directors to decide that the enterprise is to buy-back or issue

its own shares or equity certificates”: Described in section 3 Equity and dividends.

9.

 “A description of the enterprise’s guidelines for gender equality and diversity with regard to, for example, age, gender and

educational and professional background for the composition of boards, management and governing bodies and if relevant any

sub-committees. The objective of the guidelines, how they have been implemented and their effect during the reporting period

shall be stated. If the enterprise does not have such guidelines, this must be justified”: Described in section 7 Nomination

committee.

Nomination, elections and reporting in Equinor ASA

 3

1 Implementation and reporting

Equinor ASA is a Norwegian-registered public limited liability company with its primary listing on Oslo Stock Exchange (Oslo Børs),

and the foundation for the Equinor group’s governance structure is Norwegian law. American Depositary Receipts (ADRs)

representing ordinary shares are listed on the New York Stock Exchange (NYSE), and Equinor is therefore subject to the listing

requirements of NYSE and the applicable reporting requirements of the US Securities and Exchange Commission (SEC rules).

The board of directors focuses on maintaining a high standard of corporate governance in line with Norwegian and international

standards of best practice. Good corporate governance is a prerequisite for a sound and sustainable company, and our corporate

governance is based on openness and equal treatment of shareholders. Governing structures and controls help to ensure that we run

our business in a justifiable and profitable manner for the benefit of employees, shareholders, partners, customers and society. 

The work of the board of directors is based on the existence of a clearly defined division of roles and responsibilities between the

shareholders, the board of directors and the company’s corporate executive committee.

The following principles underline Equinor’s approach to corporate governance: 

●

 All shareholders will be treated equally.

●

 Equinor will ensure that all shareholders have access to up-to-date, reliable and relevant information about its activities.

●

 Equinor will have a board of directors that is independent (as defined by Norwegian standards) of the group’s corporate executive

committee. The board of directors focuses on preventing conflicts of interest between shareholders, the board of directors and

the company’s corporate executive committee. 

●

 The board of directors will base its work on the principles for good corporate governance (the Code of Practice).

The governance and management system is further elaborated on at www.equinor.com/cg where shareholders and stakeholders can

explore any topic of interest in more detail.

Compliance with New York Stock Exchange listing rules

Equinor’s primary listing is on the Oslo Børs. Equinor is also registered as a foreign private issuer with the US Securities and

Exchange Commission with ADRs representing its ordinary shares listed on the NYSE.

While Equinor’s corporate governance practices follow the requirements of Norwegian law, Equinor is also subject to the NYSE’s

listing rules.

Equinor is considered a foreign private issuer in the US and is thus exempted from most of the NYSE corporate governance

standards that domestic US companies must comply with. However, Equinor is required to disclose any significant ways in which its

corporate governance practices differ from those applicable to domestic US companies under the NYSE rules. A statement of

differences is set out below:

Corporate governance guidelines

The NYSE rules require domestic US companies to adopt and disclose corporate governance guidelines. Equinor’s corporate

governance principles are developed by the corporate executive committee and the board of directors, in accordance with the Code of

Practice and applicable law. Oversight of the board of directors and the CEO’s management of the company is exercised by the

corporate assembly.

Director independence

The NYSE rules require domestic US companies to have a majority of “independent directors”. The NYSE definition of an

“independent director” sets out five specific tests of independence and requires an affirmative determination by the board of directors

that the director has no material relationship with the company.

Pursuant to Norwegian company law, Equinor’s board of directors consists of members elected by the corporate assembly as

representatives for both shareholders and employees. Equinor’s board of directors has determined that, in its judgment, all

shareholder-representatives are independent. In making its determinations of independence, the board of directors focuses inter alia

on there not being any conflicts of interest between shareholders, the board of directors and the company’s corporate executive

committee. It does not strictly make its determination based on the NYSE’s five specific tests but takes into consideration all relevant

circumstances which may in the board of director’s view affect the directors’ independence. The directors elected from among

Equinor’s employees would not be considered independent under the NYSE rules as they are employees of Equinor. None of these

employee representatives are executive officers of the company.

For further information about the board of directors, see 8 Corporate assembly, board of directors and corporate executive committee. 

Board committees

Pursuant to Norwegian company law, managing the company is the responsibility of the board of directors. Equinor has the following

board committees; an audit committee, a safety, sustainability and ethics committee and a compensation and executive development

 4

committee. The audit committee and the compensation and executive development committee operate pursuant to instructions that

are broadly comparable to the applicable committee charters required by the NYSE rules. They report on a regular basis to, and are

subject to, oversight by the board of directors. For further information about the board committees, see 9 The work of the board of

directors.

Equinor complies with the NYSE rule regarding the obligation to have an audit committee that meets the requirements of Rule 10A-3

of the US Securities Exchange Act of 1934.

The members of Equinor’s audit committee include an employee representative director. Equinor relies on the exemption provided in

Rule 10A-3(b)(1)(iv)(C) from the independence requirements of the US Securities Exchange Act of 1934 with respect to the employee

representative director. Equinor believes that its reliance on this exemption will not materially adversely affect the ability of the audit

committee to act independently or to satisfy the other requirements of Rule 10A-3 relating to audit committees. The other members of

the audit committee meet the independence requirements under Rule 10A-3.

Among other things, the audit committee evaluates the qualifications and independence of the company’s external auditor.

However,

in accordance with Norwegian law, the auditor is elected by the annual general meeting of the company’s shareholders.

Equinor does not have a nominating/corporate governance committee formed from its board of directors. Instead, the roles prescribed

under the NYSE rules for such committee are principally carried out by the corporate assembly and the nomination committee. The

nomination committee is elected by the general meeting of shareholders, and the corporate assembly is elected partly by the general

meeting of shareholders and partly by and among the employees. The nomination committee, which is elected by the general meeting

of shareholders, recommends to the corporate assembly the candidates and remuneration for the board of directors. The nomination

committee also recommends to the general meeting of shareholders the candidates and remuneration for the nomination committee

and the shareholder representative candidates and remuneration for the corporate assembly.

NYSE rules require the compensation committee of US companies to comprise independent directors, recommend senior

management remuneration and determine the independence of advisors when engaging them. Equinor, as a foreign private issuer, is

exempted from complying with these rules and is permitted to follow its home country regulations. The compensation committee

consists of four shareholder representatives and one employee representative. Equinor’s compensation committee makes

recommendations to the board of directors regarding remuneration to the corporate executive committee, including that of the CEO.

Further, the compensation committee assesses its own performance and has the authority to hire external advisors. 

Shareholder approval of equity compensation plans

The NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to a shareholder vote. Equinor

ASA remuneration schemes, including equity compensation plans, are approved by the CEO. The BoD is informed if the terms and

conditions affect executives and senior executives. Issuance of shares and authority to buy-back company shares for the company’s

equity compensation plans must be proposed by the BoD and approved by Equinor's annual general meeting of shareholders.

Deviations from the Code of Practice: None

2 Business

Equinor is an international energy company headquartered in Stavanger, Norway. The company has business operations in around

30 countries and approximately 23,000 employees worldwide. Equinor ASA is a public limited liability company organised under the

laws of Norway and subject to the provisions of the Norwegian Public Limited Liability Companies Act. The Norwegian State is the

largest shareholder of Equinor ASA, with a direct ownership interest of 67%. Equinor is continuously developing the Norwegian

Continental Shelf (NCS) and focusing its international portfolio to deliver sustainable value in the decades to come, at the same time

as it develops a profitable renewables business and secure opportunities in the low carbon market.

Equinor is the largest oil and gas operator in the NCS and is among the world's largest net sellers of crude oil and condensate.

Equinor is the largest supplier of energy to Europe and still has positions on processing and refining operations. Equinor also markets

and sells the Norwegian State’s share of the natural gas and crude oil produced on the NCS. Equinor contributes to the development

of new low carbon energy resources, has on-going offshore and onshore renewables activities internationally and is at the forefront of

the implementation of technology for carbon capture and storage (CCS) in Europe and US.

Objective, strategies and risk profiles

Equinor’s objective is defined in the articles of association section 1 and is to develop, produce and market various forms of energy

and derived products and services, as well as other business. The activities may also be carried out through participation in or

cooperation with other companies. Equinor's current articles of association were adopted at the annual general meeting of

shareholders on 10 May 2023 and are available at www.equinor.com/articlesofassociation.

Equinor’s purpose is turning natural resources into energy for people and progress for society. The board of directors has approved a

corporate strategy to deliver on this purpose and the strategy has been translated into concrete objectives and targets to align

execution. 

 5

Equinor’s corporate strategy is presented in the Integrated Annual Report in section 1.5 Our Strategy.

In pursuing the vision and strategy, Equinor is committed to the highest standard of governance and to cultivating a values-based

performance culture that rewards exemplary ethical practices, respect for the environment and personal and corporate integrity. The

company continuously considers prevailing international standards of best practice when defining and implementing company policies,

as Equinor believes that there is a clear link between high-quality governance and the creation of shareholder value.

At Equinor, the way we deliver is as important as what we deliver. The Equinor Book, which addresses all Equinor employees, sets

the standards for behaviour, delivery and leadership.

The values guide the behaviour of all Equinor employees. The corporate values are "courageous", "open", "collaborative" and

"caring". Both the values and ethics are treated as an integral part of business activities. The Code of Conduct is further described in

section 10 Risk management and internal control.

Equinor also focus on managing the impacts of its activities on people, society and the environment, in line with corporate policies for

health, safety, security, sustainability and climate, human rights and ethics. Areas covered by these policies include labour standards,

transparency, anti-corruption, local hiring and procurement, health and safety, the working environment, security and broader

environmental issues. These efforts and policies are further described in the Integrated Annual Report section 2.2 Sustainability

Performance. 

The Equinor risk profile is a composite view of risks and supports current and future portfolio considerations. The focus is to strive for

a portfolio that is robust and value creating through the cycles. Risk is an embedded part of the board’s strategy discussions and

investment decisions. The board of directors regularly evaluates Equinor’s strategy, risk profile and target setting as part of its annual

plan. See also sections 9 The work of the board of directors and 10 Risk management and internal control.

Deviations from the Code of Practice: None

3 Equity and dividends

Shareholders' equity and capital structure

The company's shareholders' equity as of 31 December 2023 amounted to USD 48,490 million (excluding USD 10 million in non-

controlling interest, minority interest), equivalent to 33.8% of the company's total assets. The net debt ratio was negative 21.6%

1

.

Cash, cash equivalents and current financial investments amounted to USD 38,865 million. The board of directors considers this to be

satisfactory given the company's requirements for financial robustness in relation to its expressed goals, strategy and risk profile.

Any increase of the company’s share capital must be adopted or mandated by the general meeting by at least two-thirds majority vote.

If a mandate was to be granted to the board of directors to increase the company's share capital, such mandate would be restricted to

a defined purpose. If the general meeting is to consider mandates to the board of directors for the issue of shares for different

purposes, each mandate would be considered separately by the general meeting.

Dividend policy

It is Equinor's ambition to grow the annual cash dividend, measured in USD per share, in line with long-term underlying earnings.

Equinor announces dividends on a quarterly basis. The board of directors approves first to third quarter interim dividends based on an

authorisation from the annual general meeting, while the annual general meeting approves the fourth quarter (and total annual)

dividend based on a proposal from the board of directors. When deciding the interim dividends and recommending the total annual

dividend level, the board of directors will take into consideration expected cash flow, capital expenditure plans, financing requirements

and appropriate financial flexibility. In addition to cash dividends, Equinor might buy-back shares as part of the distribution of capital to

the shareholders.

The shareholders at the annual general meeting may vote to reduce, but may not vote to increase, the fourth quarter dividend

proposed by the board of directors. Equinor announces dividend payments in connection with quarterly results. Payment of quarterly

dividends is expected to take place approximately four months after the announcement of each quarterly dividend.

Equinor declares dividends in USD. Dividends in NOK per share will be calculated and communicated four business days after record

date for shareholders at Oslo Børs.

1

 This is a non-GAAP figure. Comparison numbers and reconciliation to IFRS are presented in the table Calculation of capital

employed and net debt to capital employed ratio as shown in the Integrated Annual Report under section 5.6 Use and reconciliation of

non-GAAP financial measures.

 6

The board of directors proposes to the annual general meeting an ordinary dividend of USD 0.35 per share and an extraordinary

dividend of USD 0.35 per share for the fourth quarter 2023.

Buy-back of own shares for subsequent cancellation

In addition to cash dividend, Equinor may buy-back shares as part of the total distribution of capital to the shareholders. To buy-back

shares, the board of directors will need an authorisation from the general meeting. On 10 May 2023, the annual general meeting

authorised the board of directors to acquire Equinor ASA shares in the market, on behalf of the company, with a total nominal value of

up to NOK 235,000,000. The board of directors was authorised to decide at what price within minimum and maximum prices of NOK

50 and NOK 1,000, respectively, and at what time such acquisitions shall take place. It is a precondition that shares acquired pursuant

to the authorisation are subsequently cancelled through a reduction of the company’s share capital, pursuant to the Norwegian Public

Limited Liability Companies Act section 12-1. It is also a precondition for the repurchase and cancellation of shares that the

Norwegian State’s ownership interest in Equinor ASA is not changed. Accordingly, a proposal for the redemption of a proportionate

number of the State’s shares, ensuring that the State’s ownership interest in the company remains unchanged, will also be put

forward at the annual general meeting to decide on the cancellation of repurchased shares. The authorisation remains valid until the

next annual general meeting in the company, but no later than 30 June 2024. New share buy-back tranches are subject to existing

and new agreements with the Norwegian state regarding share buy-back.

Purchase of own shares for use in the share savings plan

Since 2004, Equinor has had a share savings plan for its employees. The purpose of this plan is to strengthen the business culture

and encourage loyalty through employees becoming part-owners of the company. The annual general meeting annually authorises

the board of directors to acquire Equinor ASA shares in the market in order to continue implementation of the employees share

savings plan. 

On 10 May 2023, the board of directors was authorised on behalf of the company to acquire Equinor ASA shares for a total nominal

value of up to NOK 27,500,000 for use in the share savings plan. This authorisation remains valid until a new authorisation has been

adopted in the next general meeting and registered in the Register of Business Enterprises, but no later than 30 June 2024.

Deviations from the Code of Practice: None

4 Equal treatment of shareholders and transactions with close associates

Equal treatment of all shareholders is a core governance principle in Equinor. Equinor has one class of shares, and each share

confers one vote at the general meeting. The articles of association contain no restrictions on voting rights and all shares have equal

rights.

The Norwegian State as majority owner

The Norwegian State (the State) is the majority shareholder of Equinor and also holds major investments in other Norwegian

companies. As of 31 December 2023, the State had an ownership interest in Equinor of 67% (excluding Folketrygdfondet’s

(Norwegian national insurance fund) ownership interest of 3.6%). The State is also a majority owner in other companies or enterprises

that are under a common ownership structure and therefore meet the definition of a related party. Equinor may participate in

transactions with such companies or enterprises. All such transactions are always entered into on an arm’s length basis. The State’s

ownership interest in Equinor is managed by the Ministry of Trade, Industry and Fisheries (MTIF). The State’s ownership interests in

related parties may be managed by the MTIF or other Ministries in the Norwegian government, depending on the line of business

such related parties are engaged in.

Contact between the State as owner and Equinor takes in principle place in the same manner as for other institutional investors,

however, with the difference that there are more frequent meetings with the MTIF. Topics discussed includes Equinor’s economic and

strategic development, sustainability and the State’s expectations regarding results and returns on investments. Such meetings

comply with Norwegian company and securities legislation, hereunder equal treatment of shareholders and limitations for discussing

inside information. 

 In all matters in which the State acts in its capacity as shareholder, exchanges with the company are based on information that is

available to all shareholders. If state participation is imperative and the government must seek approval from the Norwegian

Parliament (Stortinget), it may be necessary to provide the Ministry with insider information. The State will be subject to general rules

that apply to the handling of such information. Equinor ensures that, in any interaction between the State and Equinor, a distinction is

drawn between the State’s different roles.

The State has no appointed board members or members of the corporate assembly in Equinor. As majority shareholder, the State has

appointed a member of Equinor’s nomination committee.

 7

Sale of the State’s oil and gas

Pursuant to Equinor’s articles of association, Equinor markets and sells the State’s share of oil and gas production from the NCS

together with its own production. The State has a common ownership strategy aimed at maximising the total value of its ownership

interests in Equinor and its own oil and gas interests. This strategy is incorporated in the marketing instruction, which obliges Equinor,

in its activities on the NCS, to emphasise these overall interests in decisions that may be of significance to the implementation of the

sales arrangements.

The State-owned company Petoro AS handles commercial matters relating to the State’s direct involvement in petroleum activities on

the NCS and related activities and is responsible for overseeing that Equinor performs its tasks in accordance with the marketing

instruction.

Other transactions

In relation to its ordinary business operations such as pipeline transport, gas storage and processing of petroleum products, Equinor

also has regular transactions with certain entities in which Equinor has ownership interests. Such transactions are carried out on an

arm’s length basis.

Deviations from the Code of Practice: None

5 Freely negotiable shares

Equinor’s primary listing is on Oslo Børs. ADRs are traded on the NYSE. Each Equinor ADR represents one underlying ordinary

share. 

The articles of association of Equinor do not include any form of restrictions on the ownership, negotiability or voting related to its

shares and the ADRs.

Deviations from the Code of Practice: None

6 General meeting of shareholders

The general meeting of shareholders is Equinor’s supreme corporate body. It serves as a democratic and effective forum for

interaction between the company’s shareholders, board of directors and corporate executive committee.

The next annual general meeting (AGM) is scheduled for 14 May 2024. At Equinor’s AGM on 10 May 2023, 78.02 % of the share

capital was represented either by personal attendance or by advance voting. 

Pursuant to Equinor’s articles of association, the AGM must be held by the end of June each year. Notice of the meeting and

documents relating to the AGM are published on Equinor’s website and notice is sent to all shareholders with known addresses at

least 21 days prior to the meeting. All shareholders who are registered in the Norwegian Central Securities Depository (VPS) will

receive a notice to the AGM. Other documents relating to Equinor’s AGM will be made available on Equinor’s website. A shareholder

may request that these documents be sent to him/her.

Shareholders are entitled to have their proposals dealt with at the AGM if the proposal has been submitted in writing to the board of

directors in sufficient time to enable it to be included in the notice of meeting, i.e. no later than 28 days before the meeting. 

As described in the notice of the general meeting, shareholders may vote in writing, including through electronic communication,

during a specified period before the general meeting.

The AGM is normally opened and chaired by the chair of the corporate assembly. If there is a dispute concerning individual matters

and the chair of the corporate assembly belongs to one of the disputing parties or is for some other reason not perceived as being

impartial, another person will be appointed to chair the AGM. This is in order to ensure impartiality in relation to the matters to be

considered. 

The following matters are required to be decided at the AGM:

●

 Approval of the board of directors’ report, the financial statements and any dividend proposed by the board of directors and

recommended by the corporate assembly. 

●

 Election of the shareholders’ representatives to the corporate assembly and approval of the corporate assembly’s fees. 

●

 Election of the nomination committee and approval of the nomination committee’s fees. 

●

 Election of the external auditor and approval of the auditor’s fee. 

●

 Any other matters listed in the notice convening the AGM.

 8

All shares carry an equal right to vote at general meetings. Resolutions at general meetings are normally passed by simple majority.

However, Norwegian company law requires a qualified majority for certain resolutions, including resolutions to waive preferential rights

in connection with any share issue, approval of a merger or demerger, amendment of the articles of association or authorisation to

increase or reduce the share capital. Such matters require approval of at least two-thirds of the aggregate number of votes cast as

well as two-thirds of the share capital represented at the general meeting.

If shares are registered by a nominee in the Norwegian Central Securities Depository (VPS), cf. section 4-10 of the Norwegian Public

Limited Liability Companies Act, and the beneficial shareholder wants to vote such shares, the beneficial shareholder does not have

to re-register the shares in a separate VPS account, however, the beneficial shareholder must give advance notice to the company. 

The minutes of the AGM are made available on Equinor’s website immediately after the AGM.

An extraordinary general meeting (EGM) can be held in order to consider and decide a specific matter if demanded by the corporate

assembly, the chair of the corporate assembly, the auditor or shareholders representing at least 5% of the share capital. The board of

directors must ensure that an EGM is held within a month of such demand being submitted.

Deviations from the Code of Practice 

The Code of Practice recommends that the board of directors and chair of the nomination committee are present at the general

meetings. Equinor has not deemed it necessary to require the presence of all members of the board of directors. However, the chair of

the board of directors, the chair of the nomination committee, as well as the chair of the corporate assembly, our external auditor, the

CEO and other members of management are always present at general meetings.

7 Nomination committee

Pursuant to Equinor's articles of association, the nomination committee shall consist of four members who are shareholders or

representatives of shareholders. The duties of the nomination committee are set forth in the articles of association, and the

instructions for the committee are adopted by the general meeting of shareholders. 

The duties of the nomination committee are to submit recommendations to:

●

 The annual general meeting for the election of shareholder-elected members and deputy members of the corporate assembly,

and the remuneration for members of the corporate assembly.

●

 The annual general meeting for the election and remuneration of members of the nomination committee.

●

 The corporate assembly for the election of shareholder-representatives for the board of directors and remuneration for the

members of the board of directors.

●

 The corporate assembly for the election of the chair and deputy chair of the corporate assembly.

The nomination committee seeks to ensure that the shareholders’ views are taken into consideration when candidates to the

governing bodies of Equinor ASA are proposed. The nomination committee invites Equinor's largest shareholders to propose

shareholder-representatives to the board of directors and the corporate assembly, as well as members of the nomination committee.

The shareholders are also invited to provide input to the nomination committee in respect of the composition and competence of

Equinor's governing bodies considering Equinor's strategy and opportunities going forward. Such input may be taken into account in

the upcoming nominations. In addition, all shareholders have an opportunity to submit proposals through an electronic mailbox as

described on Equinor’s website. The results from an annual board evaluation, normally externally facilitated, are made available to the

nomination committee for the board nomination process. Separate meetings are held between the nomination committee and each

board member, including employee-representatives. The chair of the board of directors and the CEO are invited, without having the

right to vote, to attend at least one meeting of the nomination committee before it makes its final recommendations. The committee

regularly utilises external expertise in its work and provides reasons for its recommendations of candidates.

When it comes to the subject of diversity and inclusion for the composition of the board of directors and the corporate assembly, it is

stated in the instructions for the nomination committee section 3.5 that “Emphasis will also be given to ensuring reasonable

representation in terms of gender and background, and to the independence of members of the board of directors and corporate

assembly in relation to the company.” The company’s guidelines on diversity and inclusion are described in the Integrated Annual

Report under the section 2.2 Workforce for the future.

The members of the nomination committee are elected by the annual general meeting. The chair of the nomination committee and

one other member are elected from and among the shareholder-representatives of the corporate assembly. Members of the

nomination committee are normally elected for a term of two years. 

Equinor's nomination committee had the following members as of 31 December 2023 which are elected for the period up to the annual

general meeting in 2024:

 9

●

 Jarle Roth (chair), independent advisor (also chair of Equinor’s corporate assembly)

●

 Jan Tore Føsund, Director General at the Ministry of Trade, Industry and Fisheries 

●

 Merete Hverven, CEO of Visma (also a member of Equinor’s corporate assembly)

●

 Berit L. Henriksen, independent advisor

The nomination committee held 21 meetings in 2023. The instructions for the nomination committee are available at

www.equinor.com/nominationcommittee.

Deviations from the Code of Practice: None

 10

8 Corporate assembly, board of directors and corporate executive committee

Corporate assembly

Pursuant to the Norwegian Public Limited Liability Companies Act, companies with more than 200 employees must elect a corporate

assembly unless otherwise agreed between the company and a majority of its employees.

The corporate assembly is Equinor’s body for supervision of the board of directors and the CEO’s management of the company. The

members of the corporate assembly represent a broad cross-section of the company’s shareholders and stakeholders, and one of

their main duties is to elect the company’s board of directors. In accordance with Equinor's articles of association, the corporate

assembly consists of 18 members and three observers. Of the 18 members, 12 (with four deputy members) are nominated by the

nomination committee and elected by the annual general meeting and they represent a broad cross-section of the company's

shareholders and stakeholders. Six members (with deputy members) and three observers are elected by and among the employees in

Equinor ASA or a subsidiary in Norway, which are non-executive employees. The corporate assembly elects its own chair and deputy

chair from and among its members.

Members of the corporate assembly are normally elected for a term of two years. Members of the board of directors and the corporate

executive committee cannot be members of the corporate assembly, but they are entitled to attend and to speak at meetings unless

the corporate assembly decides otherwise in individual cases. Members of the corporate assembly do not have service contracts with

the company or its subsidiaries providing for benefits upon termination of office. All members of the corporate assembly are

Norwegian residents.

An overview of the members and observers of the corporate assembly as of 31 December 2023 follows.

 11

Name

Occupation per

31.12.2023

Place of

residence 

Year

of

birth

Position

Family

relations to

corporate

executive

committee,

board or

corporate

assembly

members

Share

ownership

for

members

as of 31

December

2023

Share

ownersh

ip for

member

s as of

12

March

2024

First

time

electe

d

Expiratio

n date of

current

term

Jarle Roth

Independent advisor

Bærum

1960

Chair,

Shareholder-

elected

No

500

500

2016

2024

Nils Bastiansen

Independent advisor

Oslo

1960

Deputy chair,

Shareholder-

elected

No

1,000

1,000

2016

2024

Finn Kinserdal

Associate professor,

Norwegian School of

Economics and Business

(NHH)

Bergen

1960

Shareholder-

elected

No

0

0

2018

2024

Kari Skeidsvoll Moe

EVP, Growth Renewable

Energy Aneo AS

Trondheim

1975

Shareholder-

elected

No

0

0

2018

2024

Kjerstin Fyllingen

CEO at Haraldsplass

Diakonale Sykehus AS

Paradis

1958

Shareholder-

elected

No

0

0

2020

2024

Kjerstin Rasmussen

Braathen

CEO of DNB Bank ASA

Oslo

1970

Shareholder-

elected

No

353

353

2020

2024

Mari Rege

Professor of Economics at

the UiS Business School at

the University of Stavanger

Stavanger

1974

Shareholder-

elected

No

0

0

2020

2024

Trond Straume

CEO of Volue ASA

Sandnes

1977

Shareholder-

elected

No

100

100

2020

2024

Martin Wien Fjell

President Kongsberg

Sensors and Robotics,

Kongsberg Group

Asker

1980

Shareholder-

elected

No

202

202

2022

2024

Merete Hverven

CEO of Visma

Oslo

1977

Shareholder-

elected

No

0

0

2022

2024

Helge Aasen

CEO of Elkem ASA

Kristiansan

d

1963

Shareholder-

elected

No

0

0

2022

2024

Liv B. Ulriksen

CEO of Sparebank 1 Nord-

Norge

Tromsø

1960

Shareholder-

elected

No

0

0

2022

2024

Peter B. Sabel

Union representative,

Tekna/NITO, Project

Leader Geophysics 

Hafrsfjord

1968

Employee-

elected

No

0

0

2019

2025

Trine Hansen

Stavland

Union representative,

Industri Energi

Sandnes

1963

Employee-

elected

No

2,697

2,937

2023

2025

Ingvild Berg

Martiniussen

Union representative,

Tekna/NITO, Principal

Researcher Production

Technology

Porsgrunn

1976

Employee-

elected 

No

2,890

3,021

2019

2025

Berit Søgnen

Sandven

Union representative,

Tekna/NITO, Principal

Engineer Fiscal metering

Kalandseid

et

1962

Employee-

elected

No

2,992

3,904

2019

2025

Frank Indreland

Gundersen

Union representative,

Industri Energi 

Skjold

1990

Employee-

elected

No

370

556

2021

2025

Per Helge Ødegård

Union representative,

Lederne, Discipl resp

operation process

Porsgrunn

1963

Employee-

elected 

No

377

568

1994

2025

Raymond Midtgård

Union representative,

YS/SAFE

Hjelmås

1976

Employee-

elected,

observer

No

642

769

2023

2025

 12

Vidar Frøseth

Union representative,

Tekna/NITO, Leading

Engineer O&M

Nyborg

1978

Employee-

elected,

observer

No

6,204

6,480

2019

2025

Kjetil Gjerstad

Union representative,

Industri Energi

Hundvin

1976

Employee-

elected,

observer

No

467

645

2019

2025

Total

18,794

21,035

The duties of the corporate assembly are defined in section 6-37 of the Norwegian Public Limited Liability Companies Act. The

corporate assembly elects the board of directors and the chair of the board of directors and can vote separately on each nominated

candidate. Its responsibilities also include overseeing the board of directors and the CEO's management of the company, making

decisions on investments of considerable magnitude in relation to the company's resources, and making decisions involving the

rationalisation or reorganisation of operations that will entail major changes in or reallocation of the workforce.

Equinor's corporate assembly held four ordinary meetings in 2023. The chair of the board of directors and the CEO participated in all

four meetings. Other members of management were also present at the meetings.

The procedure for the work of the corporate assembly, as well as an updated overview of its members, is available at

www.equinor.com/corporateassembly. 

Board of directors

Pursuant to Equinor's articles of association, the board of directors shall consist of between nine to eleven members elected by the

corporate assembly. The chair and the deputy chair of the board of directors are also elected by the corporate assembly. At present,

Equinor's board of directors consists of ten members. Six are men, four are women and two are non-Norwegians resident outside of

Norway. As required by Norwegian company law, the company's employees are represented by three board members. The

employee-representatives of the board of directors have three deputy members who attend board meetings in the event an employee-

representative of the board of directors is unable to attend. Members of the corporate executive committee is not represented on the

board of directors. Members of the board of directors are elected for a term of up to two years, normally for one year at a time. There

are no board member service contracts that provide for benefits upon termination of office.

The board of directors considers its composition to be competent with respect to the expertise, capacity and diversity appropriate to

attend to the company's strategy, goals, main challenges, and the common interest of all shareholders. The board of directors also

deems its composition to consist of individuals who are willing and able to work as a team, resulting in an efficient and collegiate

board of directors. The board of directors has determined that, in its judgment, all the shareholder-representatives on the board of

directors are considered independent. At least one board member qualifies as an "audit committee financial expert", as defined in the

SEC rules. The board members have experience from inter alia oil, gas, renewables, shipping, telecom and Norwegian defence

forces.

An induction programme with members of the corporate executive committee is arranged for new board members. They receive an

introduction to Equinor’s business and relevant information about the company and the board of directors’ work.

Equinor ASA has purchased and maintains a Directors and Officers Liability Insurance on behalf of the members of the board of

directors and the CEO. The insurance also covers any employee acting in a managerial capacity and includes controlled subsidiaries.

The insurance policy is issued by a reputable insurer with an appropriate rating.

The board of directors held eight ordinary board meetings and three extraordinary meetings in 2023. Average attendance at these

board meetings was 99,02%.

Members of the board of directors as of 31 December 2023:

[Links to CV’s on equinor.com]

There were no changes to the composition of the board of directors in 2023. The corporate assembly re-elected all members in June

2023.

 13

Corporate executive committee (CEC)

The president and chief executive officer (CEO) has the overall responsibility for day-to-day operations in Equinor. The CEO appoints

the corporate executive committee, which considers proposals for strategy, goals, financial statements, as well as important

investments prior to submission to the BoD. The purpose of the CEC is to set direction, drive prioritisation and execution, build

capabilities and ensure compliance. The CEC works to safeguard and promote the corporate interests of the company through

developing the management system and securing adequate risk management and control systems. The CEC includes the CEO, the

chief financial officer (CFO), the executive vice presidents of the business areas; Exploration & Production International (EPI),

Exploration & Production Norway (EPN), Marketing, Midstream & Processing (MMP), Renewables (REN), Projects, Drilling &

Procurement (PDP), Technology, Digital & Innovation (TDI), and the executive vice presidents for Safety, Security & Sustainability,

Legal & Compliance, People & Organisation and Communication. 

The CEC ensures proactive management and control of sustainability related impacts through the safety, sustainability and ethics

committee held on a quarterly basis. Risk, performance, and mitigating actions are key topics for the work in the committee. Ethical

and reputational issues such as anti-corruption are monitored and mitigated through the CEC ethics committee. The ethics committee

meet as needed and at least three times a year. 

In addition, through the corporate risk committee the CEC manages Equinor’s overall risk exposure, and material topics related to

health and safety, human rights, corruption, climate and environment is assessed as part of the overall risk management. The

corporate risk committee functions as an advisory body to the CEO and CFO, and the work of the corporate risk committee is

presented to the CEC on a regular basis. 

Members of Equinor's corporate executive committee as of 31 December 2023:

[Links to CV’s on equinor.com]

As part of its general loan arrangement for Equinor employees, Equinor has granted loans to Equinor-employed spouses of certain

members of the corporate executive committee. Permanent employees in certain specified employee categories may take out a car

loan from Equinor in accordance with standardised provisions set by the company. The standard maximum car loan is limited to the

cost of the car, including registration fees, but not exceeding NOK 400,000. Employees outside the collective labour area are entitled

to a car loan up to NOK 600,000 (managers) or NOK 700,000 (vice presidents and senior vice presidents). The car loan is interest-

free, but the tax value, "interest advantage", must be reported as salary. Permanent employees of Equinor ASA may also apply for a

consumer loan up to NOK 350,000. The interest rate on consumer loans corresponds to the standard rate in effect at any time for

“reasonable loans” from employer as decided by the Norwegian Ministry of Finance, i.e., the lowest rate an employer may offer

without triggering taxation of the benefit for the employee. 

Deviations from the Code of Practice: None

9 The work of the board of directors

The board of directors is responsible for managing the Equinor group and for monitoring day-to-day management and the group's

business activities. The board of directors has established control systems to ensure that Equinor operates in compliance with laws

and regulations, with the values as stated in the Equinor Book and the Code of Conduct, as well as in accordance with the owners'

expectations of good corporate governance. The board of directors emphasises the safeguarding of the interests of all shareholders,

but also the interests of Equinor's other stakeholders.

Matters of major importance, or of an extraordinary nature, are handled by the board of directors and it may require the corporate

executive committee to present other matters. An important task of the board of directors is to appoint the CEO and to stipulate their

job instructions, and terms and conditions of employment.

An annual plan is adopted by the board of directors and revised with regular intervals. Recurring items on the board of director's

annual plan include safety, security, sustainability and climate, corporate strategy, business plans and targets, quarterly and annual

results, annual reporting, ethics and compliance, performance reporting, leadership assessment and compensation and succession

planning, project status review, people and organisation strategy and priorities, and an annual review of the board of directors'

governing documentation. 

The board of directors has dedicated strategy and risk sessions twice a year where the corporate executive committee presents, and

they align on the strategy going forward. Climate-related upside and downside risks, and Equinor’s strategic response to these are

also discussed frequently by the board of directors. In 2023, the board of directors discussed climate change and the energy

transition in all ordinary board meetings either as integral parts of strategy and investment discussions or as separate topics. 

The board of directors developed its knowledge and competence through deep-dives in the following topics; 

 14

●

 Energy Perspectives and the evolving external context – geopolitics, policy and energy

●

 Low carbon solutions 

●

 Financial topics 

●

 Technology topics

●

 Cyber security

Furthermore, external speakers presented to the board of directors their view on the energy transition in a geopolitical and a financial

context.

At the beginning of each board meeting, the CEO meets separately with the board of directors to discuss key matters in the company.

At the end of all board meetings, the board of directors has a closed session with only board members attending the discussions and

evaluating the meeting. The CEO, the CFO, the General Counsel, executive vice presidents for Safety, Security & Sustainability and

Communication and the company secretary attend all board meetings. Other members of the executive committee and senior

management attend board meetings by invitation in connection with specific matters.

Reports from the committees are given on each board meeting to update the board of directors on matters handled by each

committee. BAC had two competence days with deep-dives into different topics such as data governance, structure for trading

mandates, internal control over financial reporting framework, EU ESRS reporting requirements, material topics for sustainability

reporting and inflation pressure impact on the portfolio. SSEC had deep-dives on topics within human rights, compliance, cyber

security, net zero and safety. BCC attended a yearly session on development and trends within executive talent market. The entire

board of directors, or part of it, regularly visits several Equinor locations in Norway and globally, and a longer board trip for all board

members to an international location is made at least every two years. When visiting Equinor locations globally, the board of directors

emphasises the importance of improving its insight into, and knowledge about, safety and security in Equinor’s operations, Equinor’s

technical and commercial activities as well as the company's local organisations. The next board trip will be in 2024. 

The board of directors conducts an annual self-evaluation of its own work and competence, which is externally facilitated and handled

in a board meeting. Climate change capabilities and knowledge are included as key components in the annual board evaluation. The

evaluation report is made available to the nomination committee and discussed between the chair of the board of directors and the

nomination committee to give input to the committee’s work.

Requirements for board members

The work of the board of directors is based on rules of procedure that describe the board of director's responsibilities, duties and

administrative procedures. They also describe the CEO’s duties vis-à-vis the board of directors.

Further, they state that members of the board of directors and the CEO may not participate in any discussion or decision of issues

which are of special personal importance or special financial interest to them, or to any closely related party. Each board member and

the CEO are individually responsible for ensuring that they are not disqualified from discussing any particular matter. Members of the

board of directors are obliged to disclose any interests they or their closely related parties may have in the outcome of a particular

issue. The board of directors must approve any agreement between a company in the Equinor group and a member of the board of

directors or the CEO. The board of directors must also approve any agreement between a company in the Equinor group and a third

party in which a member of the board of directors or the CEO may have a special interest. Each member of the board of directors shall

also continuously assess whether there are circumstances which could undermine the general confidence in the director’s

independence. It is incumbent on each board member to be especially vigilant when making such assessments in connection with the

board of directors' handling of transactions, investments and strategic decisions. The board member shall immediately notify the chair

of the board of directors if such circumstances are present or arise and the chair of the board of directors will determine how the

matter will be dealt with. The board of directors' rules of procedure are available on our website at www.equinor.com/board. 

The Equinor Code of Conduct applies to all employees and board members, individuals must behave impartially in all business

dealings and not give other companies, organisations or individuals improper advantages. 

The board of directors’ committees

Equinor ASA’s board of directors has three sub-committees: the audit committee; the compensation and executive development

committee; and the safety, sustainability and ethics committee. The committees prepare items for consideration by the board of

directors and their authority is limited to making such recommendations. The committees consist entirely of board members and

answer to the board of directors alone for the performance of their duties. The composition and work of the committees are further

described below.

The audit committee

 (BAC) acts as a preparatory body for the board of directors in connection with risk management, internal control

and financial and sustainability reporting. In particular, the BAC shall assist the board of directors in exercising its oversight

responsibilities in relation to:

●

 The financial reporting process and the integrity of the financial statements.

 15

●

 The sustainability reporting process and the integrity of the sustainability reporting. 

●

 The company’s internal control, internal audit and risk management systems and practices including the enterprise risk

management framework. 

●

 The election of and qualifications, independence and oversight of the work of the external auditors.

●

 Business integrity, including handling of complaints and reports.

●

 Other duties as set out in the Norwegian Public Limited Liability Companies Act section 6-43 and Regulation 10A-3 of the US

Securities Exchange Act and applicable listing requirements.

The BAC reviews the effectiveness of the system for monitoring compliance with laws and regulations pertaining to business integrity

and compliance with Equinor’s Code of Conduct relevant to the committee’s responsibilities. 

Under Norwegian law, the external auditor is appointed by the shareholders at the annual general meeting based on a proposal from

the corporate assembly. The audit committee is responsible for making recommendations regarding appointment, re-appointment or

removal of the company’s external auditor, and supports the board of directors and the corporate assembly in their roles related to the

election of external auditors for Equinor ASA at the annual general meeting. 

The BAC meets as often as it deems necessary, normally five to seven times every year, and holds meetings with the internal auditor

and the external auditor on a regular basis without the company’s management being present, including in relation to the financial

statement and annual report.

The BAC is also responsible for: 

●

 Reviewing the scope of the audit and the nature of any non-audit services provided by external auditors. 

●

 Ensuring that the company has procedures in place for receiving and dealing with complaints received by the company regarding

accounting, internal control or auditing matters.

●

 Procedures for the confidential and anonymous submission by company employees, via the group's ethics helpline, of concerns

regarding accounting or auditing matters, as well as other matters regarded as being in breach of the group's Code of Conduct, a

material violation of an applicable US federal or state securities law, a material breach of fiduciary duties or a similar material

violation of any other US or Norwegian statutory provision. 

The BAC is designated as the company's qualified legal compliance committee for the purposes of Part 205 in Title 17 of the US Code

of Federal Regulations.

Corporate Audit and Investigation reports administratively to the president and CEO and functionally to the chair of the audit

committee.

The board of directors elects at least three of its members to serve on the audit committee and appoints one of them to act as chair.

The employee-representative members of the board of directors may nominate one member to the audit committee.

At year-end 2023, the BAC members were Anne Drinkwater (chair), Rebekka Glasser Herlofsen, Jonathan Lewis, Finn Bjørn Ruyter

and Hilde Møllerstad (employee-representative board member). 

The board of directors has determined that both Anne Drinkwater and Rebekka Glasser Herlofsen, qualify as "audit committee

financial expert", as defined in the SEC rules. The board of directors has also determined that the committee has the qualifications

needed as defined in the Norwegian Public Limited Liability Companies Act. In addition, the board of directors has concluded that

Anne Drinkwater Rebekka Glasser Herlofsen, Jonathan Lewis and Finn Bjørn Ruyter are independent within the meaning of the

requirements in the Norwegian Public Limited Liability Companies Act and Rule 10A-3 under the Securities Exchange Act.

The CFO, general counsel, senior vice president for Accounting and Financial Compliance and senior vice president for Corporate

Audit and Investigation participate in the BAC meetings, as well as representatives from the external auditor.

The BAC held six regular meetings in 2023, in addition to two Competence days with deep dive sessions into issues relevant to the

committee, and attendance was 100%.

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/auditcommittee. 

The compensation and executive development committee

 (BCC) acts as a preparatory body for the board of directors and assists

in matters relating to management compensation and leadership development.

The main responsibilities of the compensation and executive development committee are:

 16

●

 To make recommendations to the board of directors in all matters relating to principles and the framework for executive rewards,

remuneration strategies and concepts, the CEO's contract and terms of employment, and leadership development, assessments

and succession planning.

●

 To be informed about and advise the company's management in its work on Equinor's remuneration strategy for senior

executives and in drawing up appropriate remuneration policies for senior executives.

●

 To review Equinor's remuneration policies in order to safeguard the owners' long-term interests.

The BCC assists the board of directors on the philosophy, principles and strategy for the compensation of senior executives in

Equinor, as well as climate and energy transition related goals as part of the remuneration policies.

At year-end 2023, the BCC members were Jon Erik Reinhardsen (chair), Rebekka Herlofsen, Finn Bjørn Ruyter, Haakon Bruun-

Hanssen and Per Martin Labråten (employee-representative board member). All the committee members are non-executive directors

and the shareholder-representative committee members are deemed independent (under Equinor’s framework).

The executive vice president People & Organisation participates in the BCC meetings.

The committee held six meetings in 2023 and attendance was 96,88%.

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/compensationcommittee.

The safety, sustainability, and ethics committee

 (SSEC) acts as a preparatory body for the board of directors in connection with

reviewing the practices and performance of the company primarily in matters regarding safety, security, ethics, sustainability and

climate. 

This includes review of the company’s policies, risk, practices and performance related to 

●

 Safety. 

●

 Security, including cyber and information security, physical security and personnel security.

●

 Climate and Sustainability, including human rights, social responsibility and environment.

●

 Code of Conduct.

●

 Ethics and anti-corruption Compliance Program.

●

 Results of audits, verifications and investigations relevant for the SSEC.

●

 Effectiveness of the internal control for safety, security and sustainability matters.

The SSEC ensures that the board of directors has a strong focus on and knowledge of these complex, important and constantly

evolving areas of safety, security, ethics, sustainability and climate. 

At year-end 2023, the SSEC members were Jonathan Lewis (chair), Anne Drinkwater, Tove Andersen, Haakon Bruun-Hanssen, Stig

Lægreid (employee-representative board member) and Per Martin Labråten (employee-representative board member).

The executive vice president Safety, Security & Sustainability, senior vice president Safety, General Counsel, senior vice president

Corporate Sustainability, senior vice president Corporate Audit and Investigation and the chief ethics and compliance officer

participate in the SSEC meetings.

The SSEC held four ordinary meetings and one extraordinary meeting in 2023 and attendance was 100%.

For a more detailed description of the objective and duties of the committee, see the instructions available at

www.equinor.com/ssecommittee.

Deviations from the Code of Practice: None

10 Risk management and internal control

Risk management

The board of directors oversees the company’s internal control, and overall risk management and assurance, and through its audit

committee, reviews and monitors the effectiveness of the company's policies and practices in such regard. On an ongoing basis, the

board of directors and board audit committee discuss the company’s enterprise risk management framework and three-lines model

and learning from risk-adjusting actions and assurance activities. The board of directors, board audit committee and board safety,

sustainability and ethics committee, together, monitor and assess risks including legal, regulatory, financial, safety, security,

 17

sustainability and climate-related risks and the associated measures put in place to manage them. Twice a year, the board of directors

receives and reviews an assessment of all material risks, and risk-issues and discusses the company's risk profile.

Equinor manages risk to ensure that operations and other business activities are conducted in a safe and secure manner, in

compliance with external and internal standards and requirements, so that unwanted incidents are avoided, and maximum value is

created. The company's enterprise risk management framework endeavours to make risk considerations an integral part of realising

its purpose and vision, and of driving day-to-day performance.

Through its three lines model, company-wide accountabilities for risk management, and responsibilities for risk analysis, monitoring,

advise and assurance are defined across all relevant risks, including business integrity risks (fraud, sanctions, competition, money

laundering), safety/security/sustainability risks, financial/legal/regulatory risks, people related risks and political/public affairs risks.

Procedures and systems are in place to assess both potential financial impacts of risks on cash-flows and potential non-financial

impacts of risks on people, the environment, physical assets, and ultimately, the company's reputation. Where necessary, operational

risks are insured by the company's captive insurance company, that operates in both Norwegian and international insurance markets.

Further information about the risks and risk factors that the company's financial and operating results are subject to are presented in

the Integrated Annual Report in section 1.9 Governance and risk management and section 5.2 Risk factors. 

Internal control over financial reporting

Equinor’s internal control over financial reporting is a process designed, under the supervision of the chief executive officer and chief

financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Equinor’s

financial statements in accordance with International Financial Reporting Standards.

Equinor’s internal control over financial reporting framework is based on COSO 2013 Internal Controls Integrated Framework. The

framework is governed by Equinor’s management system and implemented through a top-down, risk-based approach across all

relevant functions and business areas within the company. 

Equinor has established a global function (the ICoFR function), which is responsible for governing Equinor’s internal control over

financial reporting on behalf of the CFO. The ICoFR function manages Equinor’s annual process for internal control over financial

reporting and provides support and expertise to the organisation to secure an effective and continuously improved internal control

framework. The annual process includes formalized processes for scoping and risk assessment; control design improvement and

maintenance; assurance of control design and operating effectiveness; deficiency management and evaluations; communications,

training and stakeholder reporting. Key assurance activities include independent verification testing of controls, quarterly management

sign-offs, and internal audits conducted by Equinor’s corporate audit and investigation function. 

Equinor’s disclosure committee assists the CEO and CFO in assessing the status of internal control over financial reporting on a

quarterly basis and reviewing Equinor’s public filings and disclosures, including its consolidated financial statements and non-financial

disclosures, to ensure that the contents of Equinor’s results announcements, Integrated Annual Report and Form 20-F appropriately

reflect the non-financial and financial position and results of the company.

The board of directors has delegated authority to the board audit committee to assist it in overseeing the effectiveness of Equinor’s

internal control over financial reporting. The board audit committee reviews and discusses quarterly updates from management on the

status of key financial reporting risks, control assurance activities and remediation of identified deficiencies, and internal control

improvement initiatives. The board audit committee also reviews management’s evaluation of the effectiveness of Equinor’s internal

control over financial reporting as required under Section 404 of the Sarbanes-Oxley Act (refer to management’s report on internal

control over financial reporting included in Equinor’s Form 20-F filed with the SEC) and updates the board of directors on the status of

compliance and any significant issues that warrant the attention of the board of directors.

Code of Conduct

Ethics – Equinor’s approach

Equinor believes that responsible and ethical behaviour is a necessary condition for a sustainable business. Equinor’s Code of

Conduct is based on its values and reflects Equinor’s commitment to high ethical standards in all its activities. 

Our Code of Conduct

The Code of Conduct describes Equinor’s code of business practice and the requirements for expected behaviour. The Code of

Conduct applies to Equinor’s board members, employees and hired personnel. It is divided into five main categories: The Equinor

way, Respecting our people, Conducting our operations, Relating to our business partners and Communities and environment. 

The Code of Conduct is approved by the board of directors. 

 18

Equinor seeks to work with others who share its commitment to ethics and compliance, and Equinor manages its risks by carrying out

integrity due diligence processes on suppliers, business partners and markets. Equinor expects its suppliers and business partners to

comply with applicable laws, respect internationally recognised human rights and adhere to ethical standards which are consistent

with Equinor’s ethical requirements when working for or together with Equinor. In joint ventures and entities where Equinor does not

have control, Equinor makes good faith efforts to encourage the adoption of ethics and anti-corruption policies and procedures that

are consistent with its standards. Equinor will not tolerate any breaches of the Code of Conduct. Remedial measures may include

termination of employment and reporting to relevant authorities. 

Training and certifying the Code of Conduct

All Equinor employees must annually confirm electronically that they understand and will comply with the Code of Conduct and pass a

quiz to certify as competent (Code certification). The Code certification reminds the individuals of their duty to comply with Equinor’s

values and ethical requirements, including how to report concerns. 

The Code of certification is included in Equinor’s competence assurance management solution (CAMS), provides management with

the opportunity to monitor the completion rates and follow up any gaps.

Further, there are specific training on various compliance topics, including anti-corruption, anti-trust, anti-money laundering and

sanctions and export controls. The training consists of e-learning and more in-depth workshops for those assessed to need a deeper

knowledge of a specific subject area. 

Anti-corruption compliance program

Equinor is against all forms of corruption including bribery, facilitation payments and trading in influence. There is a company-wide

anti-corruption compliance program which implements the zero-tolerance policy. The program includes mandatory procedures

designed to comply with applicable laws and regulations, as well as guidance and training on relevant topics such as gifts, hospitality

and conflict of interest. A global network of compliance officers, who support the integration of ethics and anti-corruption

considerations into Equinor’s business activities, constitute an important part of the program. 

Equinor consistently works with its partners and suppliers on ethics and anti-corruption compliance and has initiated dialogue with

several partners on the risks that are jointly faced and actions that can be taken to address them. There are separate compliance

policies and procedures describing Equinor’s management of third-party corruption risk both in operated and non-operated joint

ventures, and on integrity due diligence of third parties. 

Open dialogue and raising concerns

Equinor is committed to maintain an open dialogue on ethical issues. The Code of Conduct requires those who suspect a violation of

the Code of Conduct or other unethical conduct to raise their concern. Employees are encouraged to discuss concerns with their

leader. Equinor recognises that raising a concern is not always easy so there are several internal channels for taking concerns

forward, including through People and Organisation or the ethics and compliance function in the legal department. Concerns can also

be raised through the externally operated Ethics Helpline which is available 24/7 and allows for anonymous reporting and two-way

communication. Equinor has a non-retaliation policy for anyone who raises an ethical or legal concern in good faith.

More information about Equinor’s policies and requirements related to the Code of Conduct is available on 

www.equinor.com/en/about-us/ethics-and-compliance-in-equinor.html . 

Deviations from the Code of Practice: None

11 Remuneration to the board of directors and corporate assembly

Reference is made to the Remuneration report

Deviations from the Code of Practice: None

12 Remuneration to the corporate executive committee

Reference is made to the Remuneration report 

Deviations from the Code of Practice: None

 19

13 Information and communications

Equinor’s reporting is based on openness and it takes into account the requirement for equal treatment of all participants in the

securities market. Equinor has established guidelines for the company's reporting of financial and other information and the purpose of

these guidelines is to ensure that timely and correct information about the company is made available to our shareholders and society

in general.

A financial calendar and shareholder information is published at www.equinor.com/calendar. 

The investor relations are responsible for coordinating the company's communication with capital markets and for relations between

Equinor and existing and potential investors. Investor relations is responsible for distributing and registering information in accordance

with the legislation and regulations that apply where Equinor securities are listed. Investor relations reports directly to the chief

financial officer.

The company holds regular presentations for investors and analysts. The quarterly presentations are broadcasted live on Equinor’s

website. Investor relations communicate with present and potential shareholders. Reports and other relevant information are available

at www.equinor.com/investor. 

All information distributed to the company's shareholders is published on the company's website at the same time as it is sent to the

shareholders.

Deviations from the Code of Practice: None

14 Take-overs

The board of directors endorses the principles concerning equal treatment of all shareholders and Equinor's articles of association do

not set limits on share acquisitions. Equinor has no defence mechanisms against take-over bids in its articles of association, nor has it

implemented other measures that limit the opportunity to acquire shares in the company. The Norwegian State owns 67% of the

shares, and the marketability of these shares is subject to parliamentary decree.

Deviations from the Code of Practice:

The Code of Practice recommends that the board of directors establish guiding principles for how it will act in the event of a take-over

bid. The board of directors has not established such guidelines, due to Equinor's ownership structure. In the event of a bid as

discussed in section 14 of the Code of Practice, the board of directors will, in addition to complying with relevant legislation and

regulations, seek to comply with the recommendations in the Code of Practice. The board of directors has no other explicit basic

principles or written guidelines for procedures to be followed in the event of a take-over bid. The board of directors otherwise concurs

with what is stated in the Code of Practice regarding this issue.

15 External auditor

Our independent registered public accounting firm (external auditor) is independent in relation to Equinor and is appointed by the

general meeting of shareholders. Our independent registered public accounting firm, Ernst & Young AS, has been engaged to provide

and audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Ernst & Young AS will

also issue a report in accordance with law, regulations, and auditing standards and practices generally accepted in Norway, including

International Standards on Auditing (ISAs), which includes opinions on the Consolidated financial statements and the parent company

financial statements of Equinor ASA. The reports are set out in the Integrated Annual Report in section 5.5 Statements on this report

incl. independent auditor reports. 

The external auditor's fee must be approved by the general meeting of shareholders.

Pursuant to the instructions for the board's audit committee approved by the board of directors, the audit committee is responsible for

ensuring that the company is subject to an independent and effective external and internal audit. Every year, the external auditor

presents a plan to the audit committee for the execution of the external auditor's work. The external auditor attends the meeting of the

board of directors that deals with the preparation of the annual accounts. 

The external auditor also participates in meetings of the audit committee. The audit committee considers all reports from the external

auditor before they are considered by the board of directors. The audit committee meets at least five times a year, and both the board

of directors and the board’s audit committee hold meetings with the internal auditor and the external auditor on a regular basis without

the company’s management being present.

The audit committee evaluates and makes a recommendation to the board of directors, the corporate assembly and the general

meeting of shareholders regarding the choice of external auditor. The committee is responsible for ensuring that the external auditor

 20

meets the requirements in Norway and in the countries where Equinor is listed. The external auditor is subject to the provisions of US

securities legislation, which stipulates that a responsible partner may not lead the engagement for more than five consecutive years.

When evaluating the external auditor, emphasis is placed on the firm's qualifications, expertise, resources, objectivity, independence

and the auditor’s fee within the context of the standards required by applicable law, regulation and listing requirements. 

The audit committee's policies and procedures for pre-approval

In its instructions for the audit committee, the board of directors has delegated authority to the audit committee to pre-approve

assignments to be performed by the external auditor. Within this pre-approval, the audit committee has issued further guidelines. The

audit committee has issued guidelines for the management's pre-approval of assignments to be performed by the external auditor.

All audit-related and other services provided by the external auditor must be pre-approved by the audit committee. Provided that the

types of services proposed are permissible under SEC guidelines and Norwegian Auditors Act requirements, pre-approval is usually

granted at a regular audit committee meeting. The chair of the audit committee has been authorised to pre-approve services that are

in accordance with policies established by the audit committee that specify in detail the types of services that qualify. It is a condition

that any services pre-approved in this manner are presented to the full audit committee at its next meeting. Some pre-approvals can

therefore be granted by the chair of the audit committee if an urgent reply is deemed necessary.

Remuneration of the external auditor in 2021 – 2023

In the annual Consolidated financial statements and in the parent company's financial statements, the independent auditor's

remuneration is split between the audit fee and the fee for audit-related, tax and other services. The breakdown between the audit fee

and the fee for audit-related, tax and other services is presented to the annual general meeting of shareholders.

Reference is made to the table in note 9 Auditor’s remuneration and Research and development expenditures in the Consolidated

financial statements showing the aggregate fees related to professional services rendered by Equinor's external auditor Ernst &

Young AS, for the fiscal years 2021, 2022, and 2023. All fees included in this table have been approved by the board's audit

committee.

Audit fee

is defined as the fee for standard audit work that must be performed every year in order to issue an opinion on Equinor's

Consolidated financial statements, on Equinor's internal control over annual reporting and to issue reports on the statutory financial

statements. It also includes other audit services, which are services that only the independent auditor can reasonably provide, such as

the auditing of non-recurring transactions and the application of new accounting policies, audits of significant and newly implemented

system controls and limited reviews of quarterly financial results.

Audit-related fees

include other assurance and related services provided by auditors, but not limited to those that can only

reasonably be provided by the external auditor who signs the audit report, that are reasonably related to the performance of the audit

or review of the company's financial statements, such as acquisition due diligence, audits of pension and benefit plans, consultations

concerning financial accounting and reporting standards.

Tax and Other services fees

include services, if any, provided by the auditors within the framework of the Sarbanes-Oxley Act, i.e.

certain agreed procedures. 

Deviations from the Code of Practice: None

EX-15

Classification:

 Confidential

Status:

 Final

Page 1 of 4

EQUINOR ASA POLICY FOR THE 

RECOVERY OF ERRONEOUSLY AWARDED INCENTIVE-BASED COMPENSATION FROM

EXECUTIVE OFFICERS

I. BACKGROUND

 Equinor ASA (the “Company”) has adopted this policy (this “Policy”) to provide for the

recovery or “clawback” of certain Incentive-Based Compensation in the event of a Restatement

(each, as defined below). This Policy is intended to comply with, and will be interpreted to be

consistent with, the requirements of Section 303A.14 of the New York Stock Exchange (“NYSE”)

Listed Company Manual

(the “Listing Standard”). This Policy will be administered by the

Company’s Board of Directors (the “Board”), whose determinations will be final, binding and

conclusive.

II. STATEMENT OF POLICY

 The Company shall recover reasonably promptly the amount of erroneously awarded

Incentive-Based Compensation in the event that the Company is required to prepare an

accounting restatement due to the material noncompliance of the Company with any financial

reporting requirement under applicable securities laws, including any required accounting

restatement to correct an error in previously issued financial statements that is material to the

previously issued financial statements, or that would result in a material misstatement if the error

were corrected in the current period or left uncorrected in the current period (a “Restatement”).

 The Company shall recover erroneously awarded Incentive-Based Compensation in

compliance with this Policy except to the extent provided under the section entitled “V.

Exceptions” herein.

III. SCOPE OF POLICY

A.

Covered Persons and Recovery Period.

 This Policy applies to all Incentive-Based

Compensation received by a person: 

●

 after beginning service as an Executive Officer,

●

 who served as an Executive Officer at any time during the performance period for that

Incentive-Based Compensation,

●

 while the Company has a class of securities listed on NYSE, and

●

 during the three completed fiscal years immediately preceding the date that the Company

is required to prepare a Restatement (the “Recovery Period”).

 Notwithstanding this look-back requirement, this Policy shall only apply to Incentive-

Based Compensation received on or after October 2, 2023 (the effective date of the Listing

Standard).

 For purposes of this Policy, Incentive-Based Compensation shall be deemed “received”

in the Company’s fiscal period during which the Financial Reporting Measure (as defined herein)

Classification:

 Confidential

Status:

 Final

Page 2 of 4

specified in the Incentive-Based Compensation award is attained, even if the payment or grant of

the Incentive-Based Compensation occurs after the end of that period.

B.

Transition Period. 

In addition to the Recovery Period, this Policy applies to any

transition period (that results from a change in the Company’s fiscal year) within or immediately

following the Recovery Period (a “Transition Period”), provided that a Transition Period between

the last day of the Company’s previous fiscal year end and the first day of the Company’s new

fiscal year that comprises a period of nine to 12 months will be deemed a completed fiscal year. 

For clarity, the Company’s obligation to recover erroneously awarded Incentive-Based

Compensation under this Policy is not dependent on if or when a Restatement is filed.

C.

Determining Recovery Period. 

For purposes of determining the relevant Recovery

Period, the date that the Company is required to prepare the Restatement is the earlier to occur

of:

●

 the date the Board, a committee of the Board, or the officer or officers of the Company

authorized to take such action if Board action is not required, concludes, or reasonably

should have concluded, that the Company is required to prepare a Restatement, and

●

 the date a court, regulator, or other legally authorized body directs the Company to

prepare a Restatement.

IV. AMOUNT SUBJECT TO RECOVERY

 A.

Recoverable Amount.

The amount of Incentive-Based Compensation subject to

recovery under this Policy is the amount of Incentive-Based Compensation received that

exceeds the amount of Incentive-Based Compensation that otherwise would have been received

had it been determined based on the restated amounts, computed without regard to any taxes

paid. 

B.

Covered Compensation Based on the Company’s Common Share Price or TSR.

For Incentive-Based Compensation based on the price of the Company’s common shares or total

shareholder return (“TSR”), where the amount of erroneously awarded Incentive-Based

Compensation is not subject to mathematical recalculation directly from the information in a

Restatement, the recoverable amount shall be based on a reasonable estimate of the effect of

the Restatement on the share price or TSR upon which the Incentive-Based Compensation was

received. In such event, the Company shall maintain documentation of the determination of that

reasonable estimate and provide such documentation to the NYSE.

V. EXCEPTIONS

 The Company shall recover erroneously awarded Incentive-Based Compensation in

compliance with this Policy except to the extent that the conditions set out below are met and the

Board has made a determination that recovery would be impracticable: 

 A.

Direct Expense Exceeds Recoverable Amount.

The direct expense paid to a third

party to assist in enforcing this Policy would exceed the amount to be recovered; provided,

however, that before concluding it would be impracticable to recover any amount of erroneously

awarded Incentive-Based Compensation based on the anticipated expense of enforcement, the

Company shall make a reasonable attempt to recover such erroneously awarded Incentive-

Based Compensation, document such reasonable attempt(s) to recover, and provide that

documentation to the NYSE.

Classification:

 Confidential

Status:

 Final

Page 3 of 4

 B.

Violation of Home Country Law.

Recovery would violate applicable Norwegian law

where that law was adopted prior to November 28, 2022; provided, however, that before

concluding it would be impracticable to recover any amount of erroneously awarded Incentive-

Based Compensation based on violation of Norwegian law, the Company shall obtain an opinion

of Norwegian counsel, acceptable to the NYSE, that recovery would result in such a violation,

and shall provide such opinion to NYSE.

 C.

Recovery from Certain Tax-Qualified Retirement Plans

. 

Recovery would likely

cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to

employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C.

411(a) and regulations thereunder.

VI. PROHIBITION AGAINST INDEMNIFICATION

 The Company shall not indemnify any Executive Officer or former Executive Officer

against the loss of erroneously awarded Incentive-Based Compensation.

VII. DISCLOSURE

 The Company shall file all disclosures with respect to recoveries under this Policy in

accordance with the requirements of all the U.S. federal securities laws, including the disclosure

required to be included in applicable Securities and Exchange Commission (“SEC”) filings.

VIII. DEFINITIONS

Unless the context otherwise requires, the following definitions apply for purposes of this

Policy:

 “Executive Officer” means

the Company’s president, principal financial officer, principal

accounting officer (which may be the same individual as principal financial officer, but if there is

no such accounting officer, the controller), any vice-president of the Company in charge of a

principal business unit, division, or function (such as sales, administration, or finance), any other

officer who performs a policy-making function, or any other person who performs similar

policymaking functions for the Company. Executive officers of the Company’s subsidiaries are

deemed Executive Officers of the Company if they perform such policy making functions for the

Company. Policy-making function is not intended to include policymaking functions that are not

significant. Identification of an Executive Officer for purposes of this Policy will include at a

minimum executive officers identified pursuant to 17 CFR 229.401(b). 

 “Financial Reporting Measures” means any of the following: (i) measures that are

determined and presented in accordance with the accounting principles used in preparing the

Company’s financial statements, and any measures that are derived wholly or in part from such

measures, (ii) stock price and (iii) TSR. A Financial Reporting Measure need not be presented

within the Company’s financial statements or included in a filing with the SEC.

 “Incentive-Based Compensation”

means any compensation that is granted, earned, or

vested based wholly or in part upon the attainment of a Financial Reporting Measure.

IX. AMENDMENT; TERMINATION

. 

Classification:

 Confidential

Status:

 Final

Page 4 of 4

 The Board may amend this Policy from time to time and may terminate this Policy at any

time, in each case in its sole discretion.

X. EFFECTIVENESS; OTHER RECOUPMENT RIGHTS

This Policy shall be effective as of December 1, 2023. Any right of recoupment under this

Policy is in addition to, and not in lieu of, any other remedies or rights of recoupment that may be

available to the Company and its subsidiaries and affiliates under applicable law or pursuant to

the terms of any similar policy or similar provision in any employment agreement, equity award

agreement or similar agreement.

EX-17

4867-8232-6291 v.1.1

LIST OF GUARANTOR SUBSIDIARIES

Equinor Energy AS, a company existing under the Norwegian Private Limited

Liability Companies Act and a wholly owned subsidiary of Equinor ASA, has

guaranteed or is a co-obligor for the following unsecured debt securities.

●

 USD 500,000,000 3.250% Notes due 2024

●

 USD 250,000,000 7.15% Debentures due 2025

●

 USD 1,250,000,000 2.875% Notes due 2025

●

 USD 750,000,000 1.750% Notes due 2026

●

 USD 480,512,000 7.250% Debentures due 2027

●

 USD 15,588,000 7.250% Debentures due 2027

●

 USD 500,000,000 3.000% Notes due 2027

●

 USD 1,000,000,000 3.625% Notes due 2028

●

 USD 250,000,000 6.800% Debentures due 2028

●

 USD 275,000,000 7.150% Debentures due 2029

●

 USD 1,500,000,000 3.125% Notes due 2030

●

 USD 750,000,000 2.375% Notes due 2030

●

 USD 750,000,000 5.100% Notes due 2040

●

 USD 500,000,000 3.625% Notes due 2040

●

 USD 350,000,000 4.250% Notes due 2041

●

 USD 300,000,000 4.250% Notes due 2041

●

 USD 850,000,000 3.950% Notes due 2043

●

 USD 750,000,000 4.800% Notes due 2043

●

 USD 1,000,000,000 3.250% Notes due 2049

●

 USD 1,250,000,000 3.700% Notes due 2050

XML

Cover page	12 Months Ended
	Dec. 31, 2023 shares
Document and Entity Information [abstract]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Shell Company Report	false
Document Period End Date	Dec. 31, 2023
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	Q8
Entity File Number	1-15200
Entity Registrant Name	Equinor ASA
Entity Current Reporting Status	Yes
Entity Address Address Line 1	Forusbeen 50
Entity Address City Or Town	Stavanger
Entity Address Postal Zip Code	N-4035
Entity Address Country	NO
Entity Filer Category	Large Accelerated Filer
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	Yes
Security 12g Title	None
Entity Common Stock Shares Outstanding	2,944,733,144
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001140625
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Accounting Standard	International Financial Reporting Standards
Auditor Name	Ernst & Young AS
Icfr Auditor Attestation Flag	true
Auditor firm id	1572
Auditor Location	Stavanger, Norway
American Depositary Shares [member]
Document and Entity Information [abstract]
Trading Symbol	EQNR
Security 12g Title	American Depositary Shares
Security Exchange Name	NYSE
Ordinary shares, nominal value of NOK 2.50 each [member]
Document and Entity Information [abstract]
Trading Symbol	EQNR
Security 12g Title	Ordinary shares, nominal value of NOK 2.50
Security Exchange Name	NYSE
Business Contact [member]
Document and Entity Information [abstract]
Contact Personnel Name	Torgrim Reitan
Entity Address Address Line 1	Forusbeen 50
Entity Address City Or Town	Stavanger
Entity Address Postal Zip Code	N-4035
Entity Address Country	NO
City Area Code	47
Local Phone Number	5199-0000
Contact Personnel Fax Number	5199-0050

XML

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENT OF INCOME [Abstract]
Revenues	$ 106,848	$ 149,004	$ 88,744
Net income/(loss) from equity accounted investments	(1)	620	259
Other Income	327	1,182	1,921
Total revenues and other income	107,174	150,806	90,924
Purchases (net of inventory variation)	(48,175)	(53,806)	(35,160)
Operating expenses	(10,582)	(9,608)	(8,598)
Selling, general and administrative expenses	(1,218)	(986)	(780)
Depreciation, amortisation and net impairmen	(10,634)	(6,391)	(11,719)
Exploration expenses	(795)	(1,205)	(1,004)
Total operating expenses	(71,404)	(71,995)	(57,261)
Net operating income/(loss)	35,770	78,811	33,663
Interest income and other financial income	2,449	1,222	38
Interest expenses and other financial expenses	(1,660)	(1,379)	(1,223)
Other financial items	1,325	(50)	(895)
Net financial items	2,114	(207)	(2,080)
Income/(loss) before tax	37,884	78,604	31,583
Income tax	(25,980)	(49,861)	(23,007)
Net income/(loss)	11,904	28,744	8,576
Attributable to shareholders of the company	11,885	28,746	8,563
Attributable to non-controlling interests	$ 19	$ (3)	$ 14
Basic earnings per share (in USD)	$ 3.93	$ 9.06	$ 2.64
Diluted earnings per share (in USD)	$ 3.93	$ 9.03	$ 2.63

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated statements of comprehensive income [Abstrct]
Net income/(loss)		$ 11,904	$ 28,744	$ 8,576
Actuarial gains (losses) on defined benefit pension plans		(276)	461	147
Income tax effect on income and expenses recognised in OCI	[1]	66	(105)	(35)
Items that will not be reclassified to the Consolidated statement of income		(211)	356	111
Foreign currency translation effects		(587)	(3,609)	(1,052)
Share of OCI from equity accounted investments		(113)	424	0
Items that may subsequently be reclassified to the Consolidated statement of income		(701)	(3,186)	(1,052)
Other comprehensive income/(loss)		(911)	(2,829)	(940)
Total comprehensive income/(loss)		10,992	25,914	7,636
Attributable to the shareholders of the company		10,974	25,917	7,622
Attributable to non-controlling interests		$ 19	$ (3)	$ 14

[1] Other Comprehensive Income (OCI).

XML

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022
Noncurrent assets [abstract]
Property, plant and equipment		$ 58,822	$ 56,498
Intangible assets		5,709	5,158
Equity accounted investments		2,508	2,758
Deferred tax assets		7,936	8,732
Pension assets		1,260	1,219
Derivative financial instruments		559	691
Financial investments		3,441	2,733
Prepayments and financial receivables		1,291	2,063
Total non-current assets		81,525	79,851
Current assets [abstract]
Inventories		3,814	5,205
Trade and other receivables	[1]	16,933	22,452
Derivative financial instruments		1,378	4,039
Financial investments		29,224	29,876
Cash and cash equivalents	[2]	9,641	15,579
Total current assets		60,990	77,152
Assets classified as held for sale		1,064	1,018
Total assets		143,580	158,021
Equity [abstract]
Shareholders' equity		48,490	53,988
Non-controlling interests		10	1
Total equity		48,500	53,989
Noncurrent liabilities [abstract]
Finance debt		22,230	24,141
Lease liabilities		2,291	2,409
Deferred tax liabilities		13,345	11,996
Pension liabilities		3,925	3,671
Provisions and other liabilities		15,304	15,633
Derivative financial instruments		1,795	2,376
Total non-current liabilities		58,890	60,226
Current liabilities [abstract]
Trade, other payables and provisions		11,870	13,352
Current tax payable		12,306	17,655
Finance debt		5,996	4,359
Lease liabilities		1,279	1,258
Dividends payable		2,649	2,808
Derivative financial instruments		1,619	4,106
Total current liabilities		35,719	43,539
Liabilities directly associated with the assets classified as held for sale		471	268
Total liabilities		95,080	104,032
Total equity and liabilities		$ 143,580	$ 158,021

[1] Of which Trade receivables of USD 13,017   million in 2023 and USD 17,334   million in 2022.

[2] Includes collateral deposits of USD 1,572   million for 2023 related to certain requirements   set out by exchanges where Equinor is participating. The corresponding figure for 2022 is   USD 6,128   million.

XML

CONSOLIDATED BALANCE SHEET - (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheet [abstract]
Trade Receivables	$ 13,017	$ 17,334
Collateral deposits	$ 1,572	$ 6,128

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Share capital [member]	Addiitonal paid in capital [member]	Retained earnings [member]	Foreign currency translation reserve [member]	OCI from equity accounted investments [member]		Shareholders's equity [member]	Non-controling interest [Member]
Equity beginning balance at Dec. 31, 2020	$ 33,892	$ 1,164	$ 6,852	$ 30,050	$ (4,194)	$ 0		$ 33,873	$ 19
Net income/(loss)	8,576			8,563				8,563	14
Other comprehensive income/(loss)	(940)			111	(1,052)			(940)
Total comprehensive income/(loss)	7,636
Dividends	(2,041)			(2,041)				(2,041)
Share buy-back	(429)		(429)					(429)
Other equity transactions	(33)		(15)					(15)	(18)
Equity ending balance at Dec. 31, 2021	39,024	1,164	6,408	36,683	(5,245)	0		39,010	14
Net income/(loss)	28,744			28,746				28,746	(3)
Other comprehensive income/(loss)	(2,829)			356	(3,609)	424		(2,829)
Total comprehensive income/(loss)	25,914
Dividends	(7,549)			(7,549)				(7,549)
Share buy-back	(3,380)	(22)	(3,358)					(3,380)
Other equity transactions	(20)		(10)					(10)	(10)
Equity ending balance at Dec. 31, 2022	53,989	1,142	3,041	58,236	(8,855)	424	[1]	53,988	1
Net income/(loss)	11,904			11,885				11,885	19
Other comprehensive income/(loss)	(911)			(211)	(587)	(113)	[1]	(911)
Total comprehensive income/(loss)	10,992
Dividends	(10,783)			(10,783)				(10,783)
Share buy-back	(5,685)	(42)	(3,037)	2,606				(5,685)
Other equity transactions	(13)		(3)					(3)	(10)
Equity ending balance at Dec. 31, 2023	$ 48,500	$ 1,101	$ 0	$ 56,521	$ (9,442)	$ 310		$ 48,490	$ 10

[1] 1)   OCI items from equity accounted investments   that may subsequently be reclassified to the Consolidated   statement of income, are presented as part of OCI from equity accounted   investments. OCI items that will not be reclassified   to the Consolidated statements of income will be included in retained earnings.

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023		Dec. 31, 2022		Dec. 31, 2021
Cash flows from (used in) operating activities [abstract]
Income/(loss) before tax		$ 37,884		$ 78,604		$ 31,583
Depreciation, amortisation and net impairment losses		10,634		6,391		11,719
Exploration expenditures written off		(53)		342		171
(Gains)/losses on foreign currency transactions and balances		(852)		(2,088)		(47)
(Gains)/losses on sales of assets and businesses		8		(823)		(1,519)
(Increase)/decrease in other items related to operating activities	[1]	(1,313)		468		106
(Increase)/decrease in net derivative financial instruments		1,041		1,062		539
Interest received		1,710		399		96
Interest paid		(1,042)		(747)		(698)
Cash flows provided by operating activities before taxes paid and working capital items		48,016		83,608		41,950
Taxes paid		(28,276)		(43,856)		(8,588)
(Increase)/decrease in working capital		4,960		(4,616)		(4,546)
Cash flows provided by operating activities		24,701		35,136		28,816
Cash flows from (used in) investing activities [abstract]
Cash used in business combinations		(1,195)		147		(111)
Capital expenditures and investments		(10,575)		(8,758)		(8,040)
(Increase)/decrease in financial investments		443		(10,089)		(9,951)
(Increase)/decrease in derivatives financial instruments		(1,266)		1,894		(1)
(Increase)/decrease in other interest bearing items		(87)		(23)		28
Proceeds from sale of assets and businesses		272		966		1,864
Cash flows provided by (used in) investing activities		(12,409)		(15,863)		(16,211)
Cash flows from (used in) financing activities [abstract]
Repayment of finance debt		(2,818)		(250)		(2,675)
Repayment of lease liabilities		(1,422)		(1,366)		(1,238)
Dividends paid		(10,906)		(5,380)		(1,797)
Share buy-back		(5,589)		(3,315)		(321)
Net current finance debt and other financing activities		2,593		(5,102)		1,195
Cash flows provided by (used in) financing activities		(18,142)		(15,414)		(4,836)
Net increase (decrease) in cash and cash equivalents		(5,850)		3,860		7,768
Foreign currency translation effects		(87)		(2,268)		(538)
Cash and cash equivalents at the beginning of the period (net of overdraft)		15,579	[2]	13,987	[2]	6,757
Cash and cash equivalents at the end of the period (net of overdraft)	[2]	$ 9,641		$ 15,579		$ 13,987

[1] The line item mainly consists of provisions, unrealised   gains and losses and items of income   or expense for which the cash effects are included in increase/(decrease) in working capital within   operating cash flow and investing cash flows. In   2023 the main item is related to interest income and expense included in the line   item interest received and interest paid. In 2022   the line item includes   a fair value loss related to inventory of USD 672   million. The amount for 2021 includes USD ( 822 ) million in redetermination settlement for the Agbami field.

[2] At 31 December 2023 and 2022 cash and cash   equivalents net overdraft was zero . At 31 December 2021 cash and cash equivalents included a net overdraft of USD 140   million.

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from (used in) operating activities [abstract]
Fair value loss related to inventory		$ 672,000,000
Cash and cash equivalents includes: [abstract]
Bank overdrafts	$ 0	0	$ 140,000,000
Interest paid [abstract]
Capitalised interest	468,000,000	382,000,000	334,000,000
Total interest paid	$ 1,510,000,000	$ 1,129,000,000	1,032,000,000
Agbami redetermination [Member]
Disclosure of other provisions and other liabilities [line items]
Reduction in obligations			$ (822,000,000)

XML

Organisation

12 Months Ended

Dec. 31, 2023

Organisation [Abstract]

Organisation

1 Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries.

Equinor ASA

 is incorporated and domiciled in

Norway

 and

listed on the Oslo Børs (

Norway

) and the New York Stock Exchange (USA). The address of its registered office is

Forusbeen 50, N-

4035 Stavanger, Norway

.

Equinor’s objective is to develop, produce and market various forms of energy and derived products and services, as well as other

businesses. The activities may also be carried out through participation in or cooperation with other companies.

 Equinor Energy AS, a

100

% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the Norwegian

continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2023 were approved for issuance by the board of directors on 12

March 2024 and is subject to approval by the annual general meeting on 14 May 2024.

XML

Accounting policies

12 Months Ended

Dec. 31, 2023

Accounting policies [Abstract]

Accounting policies

2 Accounting policies

Statement of compliance

The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with IFRS

Accounting Standards as adopted by the European Union (EU) and with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB), IFRIC® Interpretations issued by IASB and the additional requirements of the Norwegian

Accounting Act, effective on 31 December 2023.

Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement

is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting

policies described in these Consolidated financial statements have been applied consistently to all periods presented.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in

the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some

of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

The line items included in Total operating expenses in the Consolidated statement of income are presented as a combination of

function and nature in conformity with industry practice. Purchases [net of inventory variation] and Depreciation, amortisation and net

impairments are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative

expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc.

are presented by their nature in the notes to the Consolidated financial statements.

Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor’s interests in jointly

controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses

arising from Equinor's internal transactions, have been eliminated.

Foreign currency translation

Foreign exchange differences arising on translation of transactions, assets and liabilities to the functional currency of individual

entities in Equinor are recognised in the Consolidated statement of income as foreign exchange gains or losses within Net financial

items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as

part of the change in the underlying estimate.

When preparing the Consolidated financial statements, the financial statements of entities with functional currencies other than the

Group’s presentation currency USD are translated into USD, and the foreign exchange differences are recognised separately in the

Consolidated statement of comprehensive income within Other comprehensive income (OCI). The cumulative amount of such

translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of the gain or

loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional currencies than the parent company,

and for which settlement is neither planned nor likely in the foreseeable future, are considered part of the parent company’s net

investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial

statements.

Statement of cash flows

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss) before tax is adjusted

for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations

and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items of income or expense

for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments, derivative financial

instruments, and other interest-bearing items are all presented net as part of Investing activities, either because the transactions are

financial investments and turnover is quick, the amounts are large, and the maturities are short, or due to materiality.

--------------------------------------------------------------------------------------------------------------------------------

Accounting judgement and key sources of estimation uncertainty

The preparation of the Consolidated financial statements requires management to make accounting judgements, estimates and

assumptions.

Information about judgements made in applying the accounting policies that have the most significant effects on the amounts

recognised in the Consolidated financial statements is described in the following notes:

Note 6 – Acquisitions and disposals

Note 7 – Total revenues and other income

Note 25 – Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models. The

assumptions on which the estimates are based rely on historical experience, external sources of information and various other factors

that management assesses to be reasonable under the current conditions and circumstances. These estimates and assumptions form

the basis of making the judgements about carrying values of assets and liabilities when these are not readily apparent from other

sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going

basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity prices, foreign currency

exchange rates, market risk premiums and interest rates as well as financial instruments with fair values derived from changes in

these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to

several of these economic assumptions. In addition, Equinor's results are influenced by the level of production, which in the short term

may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of

exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty are described in each of the following notes:

Note 3 – Climate change and energy transition

Note 11 – Income taxes

Note 12 – Property, plant and equipment

Note 13 – Intangible assets

Note 14 – Impairments

Note 23 – Provisions and other liabilities

Note 26 – Other commitments, contingent liabilities and contingent assets

--------------------------------------------------------------------------------------------------------------------------------

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations effective and adopted by

Equinor from 1 January 2023 do not have significant impact on Equinor’s Consolidated financial statements upon adoption. This

includes among others IFRS 17 Insurance Contracts and amendments to IAS 12 International Tax Reform – Pillar Two Model Rules

(top-up tax).

IFRS Accounting Standards, amendments to IFRS Accounting Standards, and IFRIC Interpretations issued, but not yet effective, are

either not expected to materially impact Equinor's Consolidated financial statements upon adoption or are not expected to be relevant.

Equinor has not early adopted any IFRS Accounting Standard, amendments to IFRS Accounting Standards, or IFRIC Interpretations

issued, but not yet effective.

XML

Climate change and energy transition

12 Months Ended

Dec. 31, 2023

Climate change and energy transition [Abstract]

Climate change and energy transition

3 Climate change and energy transition

Risks arising from climate change and the transition to a lower carbon economy

Policy, legal, regulatory, market and technology developments related to climate change, can affect Equinor’s business plans and

financial performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery

and outcomes associated with Equinor’s strategy. In its long-term planning, Equinor analyses how the global energy markets may

develop, such as future changes in demand for Equinor’s products (oil, gas and power in key markets). Commodity price sensitivities

are presented in a table below, including the World Energy Outlook 2023 (WEO) scenarios presented by International Energy Agency

(IEA), and in note 14 Impairments.

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness of the company’s

business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates to the exposure and

potential vulnerability of Equinor’s assets to climate-related perils in different climate change scenarios. Equinor’s net-zero strategy

and climate related ambitions are responses to the challenges and opportunities presented by the energy transition. Below is a

summary of relevant risks and risk adjusting actions:

Risks – upsides and downsides

Risk adjusting actions

Transition risks

●

Stricter climate laws, regulations, and policies as well

as adverse litigation outcomes could adversely impact

Equinor's financial results and outlook, including the

value of its assets. These might be direct impacts, or

indirect impacts through changes in consumer

behaviour or technology developments.

●

Changing demand and more cost-competitive

solutions for renewable energy and low-carbon

solutions represent both threats and opportunities for

Equinor future value creation and the value of

Equinor’s assets.

●

Multiple factors in the energy transition contribute to

uncertainty in future energy price assumptions and

changes in investor and societal sentiment can affect

Equinor’s access to capital markets and financing

costs.

●

 Strong competition for assets, changing levels of

policy support, and different commercial/contractual

models may lead to diminishing returns within the

renewable and low carbon industries and hinder

Equinor ambitions. These investments may be

exposed to interest rate risk and inflation risk.

●

 Equinor sees opportunities for value creation in the

energy transition both through optimisation of

Equinor’s oil and gas business and through utilising its

competitive capabilities across new areas of the

energy system. In a decarbonising world with a broad

energy mix, the expectation is that policymakers and

stakeholders will set a premium on oil and gas

produced in a responsible and increasingly carbon

efficient way.

●

Equinor monitors trends in relevant policies and

regulations and addresses regulatory and policy risk

in capital investment processes and through

enterprise risk management in the business line. 

●

Equinor has developed its corporate strategy and

Energy transition plan (ETP) to demonstrate

commitment to a low carbon business transformation

that balances investor and societal expectations.

●

Equinor includes actual or default minimum carbon

pricing across investments, applies price robustness

criteria and routinely stress tests the portfolio for

different future price scenarios towards net zero.

Hurdle rates and other financial sensitivity testing are

included in decision making.

●

 Equinor has presented an ambitious abatement plan

to reduce absolute emissions and emissions

intensity from its activities. 

●

 Equinor assesses climate-related risks related to

external technology development trends and invests

in research, innovation and technology ventures that

support positive value creation for its portfolio.

Examples of relevant technologies within Equinor’s

portfolio include carbon capture and storage (CCS),

blue/green hydrogen, battery technology, solar and

wind renewable energy, low CO

₂

 intensity solutions,

improvements in methane emissions and application

of renewables in oil and gas production.

Physical

climate

risks

●

 Changes in physical climate parameters could impact

Equinor 's operations, resulting in disruption to

operations, increased costs, or incidents. This could

be through extreme weather events or chronic

physical impacts such as rising sea level

accompanied by increased wave heights. As

Equinor’s renewable portfolio grows, unexpected

changes in meteorological parameters, such as

average wind speed or changes in wind patterns and

cloud cover can affect energy production as well as

factors such as maintenance and equipment lifetimes.

●

Physical climate risks are taken into account through

technical and engineering functions in design,

operations, and maintenance, with consideration of

how the external physical environment may be

changing.

●

 With assistance from leading expert consultants and

climate scenario models, Equinor continues to

assess vulnerability of its assets to potential climate-

related changes in the physical environment.

However, there is uncertainty regarding the

magnitude of impact and time horizon for the

occurrence of physical impacts of climate change,

which leads to uncertainty regarding the potential

impact for Equinor.

Impact on Equinor’s financial statements

CO

₂

-cost and EU ETS carbon credits

Equinor’s oil & gas operations in Europe are part of the EU Emission Trading System (EU ETS). Equinor buys EU ETS allowances

(quotas or carbon credits) for the emissions related to its oil & gas production and processing. Currently Equinor receives a share of

free quotas according to the EU ETS regulation, according to which free quotas are to be phased out by 2035.

Accounting policies - cost of CO

₂

 quotas

Purchased CO

₂

 quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses as incurred in

line with emissions. Accruals for CO

₂

 quotas required to cover emissions to date are valued at market price and reflected as a current

liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the

balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas are acquired in order to cover

own emissions and may be kept to cover subsequent years’ emissions.

Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought, paid, and

expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the balance sheet.

Total expensed CO

₂

 cost related to emissions and purchase of CO

₂

 quotas in Equinor related to activities resulting in GHG emissions

(Equinor’s share of the operating licences in addition to land-based facilities) amounted to USD

486

 million in 2023, USD

510

 million

in 2022 and USD

428

 million in 2021. A large portion of the cost of CO

₂

 is related to the purchase of EU ETS quotas. The table below

shows, on a 100% operated basis, an analysis of number of quotas utilised and the related monetary amounts recognised in financial

statements by Equinor’s operated licences and land-based facilities subject to the requirements under EU ETS. Allocated free quotas

consist of actual free quotas received in ETS during the year. The closing balance for the number of quotas consists mainly of

purchased quotas for current year and remaining quotas after the settlement of current and previous year(s), including free quotas.

The closing balance in USD consists mainly of the value of the remaining quotas after the preliminary allocation of the current year

quotas.

Number of EU ETS quotas in

thousands

in USD million

2023

2022

2023

2022

Opening balance at 1 January

10,782

11,026

20

59

Allocated free quotas

356

3,697

Purchased quotas on the ETS market

7,822

5,985

708

509

Sold quotas on the ETS market

0

0

Returned excess free quotas

(544)

0

Settled quotas (offset against emissions)

(9,840)

(9,926)

(635)

(548)

Closing balance at 31 December

8,576

10,782

93

20

All numbers in the table are presented gross (100%) for Equinor operated licenses and include both EU ETS and UK ETS quotas.

Investments in renewables and low carbon solutions

Equinor’s ambition is to build a focused, carbon efficient oil and gas portfolio complemented with renewable and low-carbon solutions

to create long-term value while supplying reliable energy with progressively lower emissions. 2023 saw a significant increase in the

power generated from Equinor’s renewable portfolio as well as substantial additions to the portfolio pipelines in renewables. However,

due to inflation and supply chain constraints, Equinor recognised an impairment in the Renewables segment on the US North East

Coast offshore wind projects, see note 14 Impairments for more details.

Equinor’s investments in renewables are included as Additions to PP&E, intangibles and equity accounted investments in the REN-

segment in note 5 Segments. See table below for details. Over the course of 2023, the acquisition of BeGreen, a commercial-scale

offshore wind lease in California, Rio Energy in Brazil and investments related to projects in the US and the UK contributed to the

significant increase in the book value compared to the prior year. See note 6 Acquisitions and disposals for more details.

(in USD million)

2023

2022

Offshore, REN

880

146

Onshore, REN

1,127

152

Total Additions to PP&E, intangibles and equity accounted investments - REN

2,007

298

Low carbon solutions (within MMP)

179

36

Total Additions to PP&E, intangibles and equity accounted investments - REN and

LCS 

2,186

334

Equinor is making significant steps to industrialise CCS and is already involved in the Northern Lights project in Norway providing CO

₂

transport and storage solutions (in partnership with Shell and TotalEnergies). Equinor is also pursuing CCS projects in other regions

that have the necessary frame conditions for low carbon solutions. The acquisition of a

25

% stake in Bayou Bend, positions Equinor to

be one of the largest US carbon capture and storage projects located along the Gulf Coast in Southeast Texas. Acquisition

investments and capital contributions in these projects amounted to USD

179

 million in 2023 (USD

36

 million in 2022).

Investments in electrification of oil and gas assets

During 2023, Equinor invested around USD

200

 million in electrification (around USD

250

 million in 2022). Equinor’s abatement

projects primarily include full and partly electrification of offshore assets in Norway at key fields and plants, including the Troll,

Oseberg, Sleipner, Njord and the Hammerfest LNG plant, mainly by power from shore. Emissions abatement milestones in 2023

included the start-up of the Hywind Tampen offshore wind supplying carbon-free power to the Gullfaks A field and the electrification of

the Gina Krog field with power from shore.

Research and development activities (R&D)

Equinor is involved in several R&D projects aimed at optimizing oil and gas activities, reducing emissions, and developing new

business opportunities in renewables and low carbon solutions. Equinor’s total R&D activities are presented in note 9 Auditor’s

remuneration and Research and development expenditures (expensed R&D) and in note 12 Property, Plant & Equipment (capitalised

R&D).

Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of Equinor’s

economic assumptions and future cash flow estimations. The resulting effects and Equinor's exposure to them are sources of

uncertainty. Estimating global energy demand and commodity prices towards 2050 is challenging due to various complex factors,

including technology change, taxation and production limits, which may change over time. This could lead to significant changes in

accounting estimates, such as useful life (depreciation period and timing of asset retirement obligations), value-in-use (impairment

assessments), and deferred tax assets (see note 11 Income taxes for expected utilisation period of tax losses carried forward and

recognised as deferred tax assets).

Commodity prices

Equinor’s commodity price assumptions applied in value-in-use impairment testing are based on management’s best estimate of

future market trends. This price-set is currently not equal to the price-set in accordance with achieving net zero emissions by 2050 as

outlined in the WEO Net Zero Emissions by 2050 scenario. Changes in how the world acts with regards to achieving the goals in the

Paris agreement could have a negative impact on the valuation of Equinor’s assets. Calculated possible impairments of upstream

production assets and certain intangible assets using assumed prices for two scenarios estimated by the International Energy Agency

(IEA) are provided in the sensitivity table below. These illustrative impairment sensitivity calculations are based on a simplified model

with limitations as described in note 14 Impairments. A linear bridging was applied between current prices and the first price point in

the price sets disclosed in both scenarios. USD

2

 per bbl of transportation cost was added to the Brent-prices in the scenarios for

comparability with management’s current best estimate. The IEA scenarios primarily stress oil and gas prices, not reflecting the

potential impact on Equinor’s renewable and low carbon projects or trading and refinery margins. Furthermore, the MMP and REN

segments represent only around

12

% of Equinor’s total book value of non-current segment assets and equity accounted investments,

as disclosed in note 5 Segments.

Cost of CO

2

The EU ETS price has increased significantly from

25

 EUR/tonne in 2020 to an average cost of EU ETS allowances of

86

 EUR/tonne

in 2023 (

81

 EUR/tonne in 2022). In its commodity price assumptions Equinor projects the price to remain high, in the region of

80

EUR/tonne for the next couple of years in real 2023 terms. In 2040 the price expected to increase to around

130

 EUR/tonne (

109

EUR/tonne projected in 2022), thereafter increasing to around

150

 EUR/tonne in 2050 (

135

 EUR/tonne project in 2022) in real 2023

terms. As such, Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical

range than today, and a global tax on CO

₂

 emissions will have a negative impact on the valuation of Equinor’s oil and gas assets.

Currently, Equinor pays CO

₂

 fees in Norway, the UK, Germany, Canada and Nigeria. Norway’s Climate Action Plan for the period

2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

₂

 tax (the total of EU ETS + Norwegian CO

₂

 tax) in

Norway to

2,000

 NOK/ tonne (real 2020) in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor’s responses to this risk include evaluation of carbon intensity on both project and portfolio level in investment and divestment

decisions. Equinor currently uses an internal cost of carbon, set at

82

 USD/tonne in 2025 and increasing to

115

 USD/ tonne by 2030

and staying flat thereafter (in countries with higher carbon costs, country specific cost expectations are used). This cost-scenario is

uncertain but serves as a placeholder for possible future CO

₂

 pricing systems, making sure the assets are financially robust.

Climate-related considerations are included directly in the impairment calculations by estimating the CO

₂

 taxes in the cash flows, and

indirectly through estimated commodity prices related to supply and demand. The CO

₂

 prices also have effect on the estimated

production profiles and economic cut-off of the projects. To reflect that carbon will have a cost for all Equinor’s assets, the current best

estimate of CO

2

 prices is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where

Equinor has not established specific estimates.

Sensitivity table

The table below presents some relevant prices and variables compared to management’s best estimate, and an illustrative potential

impairment effect given these scenarios. The scenario price-sets were retrieved from IEA’s report, World Energy Outlook 2023. Prices

were adjusted for inflation and presented in Real 2023. See section Profitable portfolio in Chapter 2.2. in the Integrated annual report

for more details about the scenarios:

Management's price assumptions

1)

Net Zero Emissions (NZE) by 2050

Scenario

4)

Announced Pledges Scenario (APS)

5)

Brent blend, 2030

78

USD/bbl

46

USD/bbl

79

USD/bbl

Brent blend, 2040

73

USD/bbl

37

USD/bbl

72

USD/bbl

Brent blend, 2050

68

USD/bbl

28

USD/bbl

65

USD/bbl

TTF, 2030

9.1

USD/MMBtu

4.5

USD/MMBtu

6.8

USD/MMBtu

TTF, 2040

9.5

USD/MMBtu

4.4

USD/MMBtu

6.2

USD/MMBtu

TTF, 2050

9.5

USD/MMBtu

4.3

USD/MMBtu

5.6

USD/MMBtu

EU ETS

2), 3)

, 2030

123

USD/tCO

2

146

USD/tCO

2

141

USD/tCO

2

EU ETS

2), 3)

, 2040

150

USD/tCO

2

214

USD/tCO

2

182

USD/tCO

2

EU ETS

2), 3)

, 2050

176

USD/tCO

2

261

USD/tCO

2

208

USD/tCO

2

Illustrative potential impairment (USD)

~

10.0

billion

~

3.0

billion

Management’s future commodity price assumptions applied when estimating value in use, see note 14 Impairments.

2)

 Scenarios: Price of CO

2

 quotas in advanced economies with net zero pledges, not including any other CO

2

 taxes.

3)

 EU ETS price assumptions have been translated from EUR to USD using Equinor’s assumptions for currency rates, EUR/USD =

1,176

.

4)

 A scenario where all national energy and climate targets made by governments are met on time and in full. Using this scenario, the world is expected to

reach a 1.7ºC increase in the year 2100.

5)

 A scenario where the world moves on a potential path towards limiting global warming to 1.5 °C relative to pre-industrial levels.

Compared to last year’s results, the illustrative potential impairments associated with the APS scenario have increased from less than

USD

0.5

 billion to around USD

3

 billion. Similarly, the NZE scenario has increased to around USD

10

 billion, compared to around USD

4 billion last year. This is significantly impacted by the linear bridging between the current commodity prices and the first price point for

the WEO scenarios, consistent with previous year’s methodology, but with lower current prices this year.

An increase in systematic climate risk may result in a higher discount rate applied for impairment testing purposes. Please see note 14

Impairments for further information on discount rate sensitivity.

Robustness of Equinor’s portfolio, and risk of stranded assets

The transition to renewable energy, technological development, and the expected reduction in global demand for carbon-based

energy, may impact the future profitability of certain upstream oil and gas assets. Equinor uses scenario analysis to outline different

possible energy futures, some of which imply lower oil and natural gas prices and higher CO

2

 tax. If this materialises, it can lead to a

decrease in the cash flow from oil and gas, and potentially reduce the economic lifetime of some assets. Equinor seeks to mitigate this

risk by improving the resilience of the existing upstream portfolio, maximising the efficiency of the infrastructure on the NCS and

optimising the high-quality international portfolio. The project portfolio is robust to low oil and gas prices and actions are in place to

maintain cost discipline across the company. Equinor will continue to add high value barrels to the portfolio through exploration and

increased recovery, with the expectation to maintain strong oil and gas cash flow from operations until 2035. Equinor aims to maintain

significant capex flexibility in the current portfolio, with only sanctioned projects being committed representing less than

50

% of the

yearly organic capex from 2025. This is expected to allow Equinor to optimise and re-prioritise non-sanctioned projects to ensure

continued generation of high value through cycles. Equinor will continuously assess the current and future exposure of its portfolio and

take preventative measures to manage physical climate risks.

Based on the current production profiles, approximately

65

% of Equinor’s proved oil and gas reserves, as defined by the SEC, are

expected to be produced in the period 2024-2030 and more than

99

% in the period 2024-2050. This indicates a lower risk of early

cessation of production and can provide flexibility in adapting to the changing market conditions or a shift in global energy demand.

Equinor aims to continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to

minimise emissions and maximise value. During the transition, Equinor anticipates allocating a reducing share of its gross

capex to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching Equinor’s net

50

% reduction ambition for operated scope 1 and 2 emissions will require a company-wide, coordinated effort to execute and

mature the abatement projects, improve energy efficiency, develop new technologies, and strengthen the resilience of the

portfolio. Equinor aims to achieve a

20

% reduction in net carbon intensity by 2030 and a

40

% reduction by 2035, including

scope 3 emissions. The combination of increased renewables and decarbonised energy, the scale up of low carbon solutions

such as CCS and optimisation of the oil and gas portfolio provides confidence that Equinor can meet its medium-term

ambitions. As such, Equinor’s ambition to become a net-zero company by 2050 have currently not resulted in the identification

of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market, and strategic considerations. Provided that the economic assumptions

would deteriorate to such an extent that undeveloped assets controlled by Equinor should not materialise, assets at risk are mainly

comprised of the intangible assets Oil and Gas prospects, signature bonuses and the capitalised exploration costs, with a total

carrying value of USD

3,205

 million in 2023 (USD

3,634

 million in 2022). See note 13 Intangible assets for more information regarding

Equinor’s intangible assets.

Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result of Equinor’s ambition to become a net-

zero company by 2050. However, if the business cases of Equinor’s producing oil and gas assets should change materially, this could

affect the timing of cessation of the assets. A shorter production period will increase the carrying value of the liability. To illustrate,

performing removal five years earlier than currently scheduled would increase the liability by around USD

1.2

 billion before tax (around

USD

1

 billion in 2022). See note 23 Provisions and other liabilities for more information regarding Equinor’s ARO, including expected

timing of cash outflows of recognised asset retirement obligations. The most significant cash outflows are expected within the year

2043.

XML

Financial risk and capital management

12 Months Ended

Dec. 31, 2023

Financial risk and capital management [Abstract]

Financial risk and capital management

4 Financial risk and capital management

General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including commodity price risk, currency

risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor’s approach to risk management includes assessing

and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio level between the most

important market risks and the natural hedges inherent in Equinor’s portfolio. This approach allows Equinor to reduce the number of

risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is an advisory body in Enterprise Risk Management, is responsible for Equinor’s Enterprise Risk

Management and for proposing appropriate measures to adjust risk at the corporate level. This includes assessing Equinor’s financial

risk policies.

Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity markets and is exposed to market risks

including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that can affect the revenues

and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with a focus on achieving

the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures are managed at the corporate level,

while short-term exposures are managed according to trading strategies and mandates. Mandates in the trading organisations within

crude oil, refined products, natural gas, and electricity are relatively restricted compared to the total market risk of Equinor.

Commodity price risk

Equinor’s most important long-term commodity risk (crude oil and natural gas) is related to future market prices as Equinor´s risk

policy is to be exposed to both upside and downside price movements. In the longer term, also power price risk is to a large extent

expected to contribute to Equinor’s commodity price risk portfolio.

To manage short-term commodity risk, Equinor enters into

commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market swaps and

contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor’s bilateral gas sales

portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-

Continental Exchange (ICE), the CME group, the OTC Brent market, and crude and refined products swap markets. The term of

natural gas, power, and emission derivatives is usually three years or less, and they are mainly OTC physical forwards and options,

NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX and ICE.

The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative contracts. Equinor's assets

and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded

instruments, including embedded derivatives that have been bifurcated and recognised at fair value in the Consolidated balance

sheet.

Price risk sensitivities at the end of 2023 and 2022 at

30

% are assumed to represent a reasonably possible change based on the

duration of the derivatives. Since none of the derivative financial instruments included in the table below are part of hedging

relationships, any changes in the fair value would be recognised in the Consolidated statement of income.

Commodity price sensitivity

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

442

(442)

666

(666)

Natural gas, electricity and CO2 net gains/(losses)

86

(52)

(3)

140

Currency risk

Equinor’s cash flows from operating activities deriving predominantly from oil and gas sales, operating expenses and capital

expenditures are mainly in USD, but taxes, dividends to shareholders on the Oslo Børs and a share of our operating expenses and

capital expenditures are in NOK. Accordingly, Equinor’s currency management is primarily linked to mitigate currency risk related to

payments in NOK. This means that Equinor regularly purchases NOK, primarily spot, but also on a forward basis using conventional

derivative instruments.

The following currency risk sensitivity for financial instruments has been calculated, by assuming a

11

% reasonable possible change

in the most relevant foreign currency exchange rates that impact Equinor’s financial accounts, based on balances at 31 December

2023. As of 31 December 2022, a change of

12

% in the most relevant foreign currency exchange rates was viewed as a reasonable

possible change. With reference to the table below, a negative figure represents a negative equity impact / loss, while a positive figure

represents a positive equity impact / gain.

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

1,519

406

903

Shareholders equity through P&L

(413)

(418)

(92)

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(1,519)

(406)

(903)

Shareholders equity through P&L

413

418

92

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

Impact from a 12% strengthening of given currency vs USD on:

Shareholders equity through OCI

3,552

837

750

Shareholders equity through P&L

(889)

(259)

(389)

Impact from a 12% weakening of given currency vs USD on:

Shareholders equity through OCI

(3,552)

(837)

(750)

Shareholders equity through P&L

889

259

389

Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these bonds are

converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond

portfolio based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed/floating

mix on interest rate exposure may vary from time to time. For more detailed information about Equinor’s long-term debt portfolio see

note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of

1.3

 percentage points as a reasonable

possible change in interest rates at the end of 2023. In 2022, a change of

1.2

 percentage points in interest rates was viewed as a

reasonable possible change. A decrease in interest rates will have an estimated positive impact on net financial items in the

Consolidated statement of income, while an increase in interest rates will have an estimated negative impact on net financial items in

the Consolidated statement of income.

Interest risk sensitivity

At 31 December

2023

2022

(in USD million)

 - 1.3 percentage

points

+ 1.3 percentage

points

 - 1.2 percentage

points

+ 1.2 percentage

points

Positive/(negative) impact on net financial items

336

(333)

369

(366)

Equity price risk

Equinor’s captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some other listed

and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor is exposed to equity price risk,

defined as the risk of declining equity prices, which can result in a decline in the carrying value of certain Equinor’s assets recognised

in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive insurance company is managed, with the aim of

maintaining a moderate risk profile, through geographical diversification and the use of broad benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a

35

% reasonable possible change in equity prices that

impact Equinor’s financial accounts, based on balances at 31 December 2023. At 31 December 2022, a change of

35

% in equity

prices was equally viewed as a reasonable possible change. The estimated gains and the estimated losses following from a change in

equity prices would impact the Consolidated statement of income.

Equity price sensitivity

At 31 December

2023

2022

(in USD million)

- 35%

+ 35%

- 35%

+ 35%

Net gains/(losses)

(552)

552

(450)

450

Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The purpose of

liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made six times per year.

Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls

from counterparties. 

If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Equinor

raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The policy is to have a maturity profile

with repayments not exceeding

5

% of capital employed in any year for the nearest five years. Equinor’s non-current financial liabilities

have a weighted average maturity of approximately nine years. For more information about Equinor’s non-current financial liabilities,

see note 21 Finance debt.

Short-term funding needs will normally be covered by the USD

5.0

 billion US Commercial paper programme (CP) which is backed by

a revolving credit facility of USD

6.0

 billion, supported by

19

 core banks,

maturing in 2026

. The facility supports secure access to

funding, supported by the best available short-term rating. As at 31 December 2023 the facility has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor’s financial liabilities.

At 31 December

2023

2022

(in USD million)

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Year 1

20,209

1,369

857

20,172

1,325

1,065

Year 2 and 3

6,035

1,434

636

6,292

1,421

752

Year 4 and 5 

5,601

496

404

5,785

504

486

Year 6 to 10

6,846

405

1,016

8,749

465

1,202

After 10 years

10,751

72

340

11,204

120

706

Total specified

49,442

3,776

3,253

52,202

3,835

4,211

Credit risk

Credit risk is the risk that Equinor’s customers or counterparties will cause Equinor financial loss by failing to honour their obligations.

Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments, derivative financial

instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce or control credit risk both on a

counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments, and cash collateral.

Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where Equinor has

material credit exposure to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor’s

assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements

and other relevant business information. All counterparties are re-assessed regularly.

Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor’s portfolio as well as maximum

credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual, material exposures

against limits on a daily basis. Equinor’s total credit exposure is geographically diversified among a number of counterparties within the

oil and energy sector, as well as larger oil and gas consumers and financial counterparties. The majority of Equinor’s credit exposure is

with investment- grade counterparties.

The following table contains the carrying amount of Equinor’s financial receivables and derivative financial instruments split by

Equinor’s assessment of the counterparty's credit risk. Trade and other receivables include

1

% overdue receivables of more than 30

days. A provision has been recognised for expected credit losses of trade and other receivables using the expected credit loss model.

Only non-exchange traded instruments are included in derivative financial instruments.

(in USD million)

Non-current financial

receivables

Trade and other

receivables

Non-current

derivative financial

instruments

Current derivative

financial instruments

At 31 December 2023

Investment grade, rated A or above

193

5,857

305

565

Other investment grade

8

5,132

7

565

Non-investment grade or not rated

140

5,204

247

248

Total financial assets

341

16,193

559

1,378

At 31 December 2022

Investment grade, rated A or above

1,633

6,125

390

1,715

Other investment grade

12

8,725

41

1,393

Non-investment grade or not rated

14

6,761

259

931

Total financial assets

1,659

21,611

690

4,039

For more information about Trade and other receivables, see note 18 Trade and other receivables.

The table below presents the amounts offset under the terms of various offsetting agreements for financial assets and

liabilities. These agreements are mainly entered into to manage the credit risks associated with over-the-counter commodity

trading as well as regular commodity purchases and sales and enable Equinor and their counterparties to set off financial

liabilities against financial assets in the ordinary course of business as well as in case of default. In addition, exchange-traded

commodity derivatives are offset towards collateral receipts/payments as a result of day-to-day cash settlements based on

change in fair value of open derivative positions. Amounts not qualifying for offsetting consists of collateral receipts or

payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There

exist no restrictions on collaterals received.

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2023

Financial assets

Trade receivables

17,139

3,133

14,006

0

14,006

Collateral receivables

8,713

6,526

2,186

2,186

0

Derivative financial instruments

12,767

10,829

1,937

677

1,260

Total financial assets

38,619

20,488

18,129

2,863

15,266

Financial liabilities

Trade payables

14,184

3,133

11,051

0

11,051

Collateral liabilities

7,791

7,333

458

458

0

Derivative financial instruments

13,437

10,023

3,414

2,405

1,009

Total financial liabilities

35,412

20,488

14,923

2,863

12,060

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2022

Financial assets

Trade receivables

25,607

7,464

18,143

0

18,143

Collateral receivables

16,923

13,455

3,468

3,468

0

Derivative financial instruments

28,535

23,806

4,730

1,708

3,022

0

Total financial assets

71,065

44,725

26,341

5,176

21,164

Financial liabilities

Trade payables

19,913

7,464

12,449

0

12,449

Collateral liabilities

13,936

12,365

1,571

1,571

0

Derivative financial instruments

31,377

24,895

6,482

3,605

2,877

Total financial liabilities

65,226

44,725

20,502

5,176

15,326

Capital management

The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to ensure sufficient

financial flexibility. Equinor’s primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts

for Norwegian Government ownership). Equinor’s current long-term ratings are AA- with a stable outlook (including one notch uplift)

and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody’s, respectively. In order to monitor financial robustness,

a key ratio utilised by Equinor is the non-GAAP metric of “Net interest-bearing debt adjusted (ND2) to Capital employed adjusted

(CE2)”.

At 31 December

(in USD million)

2023

2022

Net interest-bearing debt adjusted, including lease liabilities (ND1)

(5,040)

(6,750)

Net interest-bearing debt adjusted (ND2)

(8,610)

(10,417)

Capital employed adjusted, including lease liabilities (CE1)

43,460

47,239

Capital employed adjusted (CE2)

39,890

43,571

Net debt to capital employed adjusted, including lease liabilities (ND1/CE1)

(11.6%)

(14.3%)

Net debt to capital employed adjusted (ND2/CE2)

(21.6%)

(23.9%)

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial investments,

adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD

2,030

 million and USD

6,538

 million for 2023 and 2022, respectively). CE1 is defined as Equinor's total equity (including non-controlling interests) and ND1.

ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD

3,570

 million and USD

3,668

 million for 2023 and 2022,

respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

XML

Segments

12 Months Ended

Dec. 31, 2023

Segments [Abstract]

Segments

5 Segments

Accounting policies

Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production

USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the

line-item Additions to PP&E, intangibles and Equity accounted investments in which movements related to changes in asset

retirement obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external

parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current

financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly

from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market

prices. The transactions are eliminated upon consolidation.

The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources, commercial

development and safe and efficient operation of the oil and gas portfolios within their respective geographical areas: E&P Norway on

the Norwegian continental shelf, E&P USA in USA and E&P International worldwide outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and

ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas, NGL and

refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading

and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines, shipping, trucking and rail. In

addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such as offshore wind, green hydrogen,

storage solutions, and solar power.

Segment information for the years ended 31 December 2023, 2022, and 2021 are presented below. For revenues per geographical

area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments,

please refer to the related notes: note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments, contingent

liabilities, and contingent assets.

2023

E&P

Norway 

E&P

International

E&P USA

MMP

REN

Other

Eliminations 

Total group

(in USD million)

Revenues third party

230

993

277

105,242

20

85

0

106,848

Revenues and other income inter-segment

37,999

6,009

4,009

633

12

33

(48,695)

0

Net income/(loss) from equity accounted

investments

0

28

0

12

(33)

(8)

0

(1)

Other income

111

1

32

23

18

142

0

327

Total revenues and other income 

38,340

7,032

4,319

105,908

17

253

(48,695)

107,174

Purchases [net of inventory variation]

0

(70)

0

(95,769)

0

(1)

47,665

(48,175)

Operating, selling, general and

administrative expenses

(3,759)

(2,176)

(1,178)

(4,916)

(462)

(201)

893

(11,800)

Depreciation and amortisation

(4,429)

(2,123)

(1,779)

(897)

(12)

(133)

0

(9,373)

Net impairment (losses)/reversals

(588)

(310)

290

(343)

(300)

(10)

0

(1,260)

Exploration expenses

(476)

(20)

(299)

0

0

0

0

(795)

Total operating expenses

(9,253)

(4,700)

(2,966)

(101,925)

(774)

(345)

48,558

(71,404)

Net operating income/(loss)

29,087

2,332

1,353

3,984

(757)

(92)

(137)

35,770

Additions to PP&E, intangibles and equity

accounted investments

5,939

4,376

1,206

844

2,007

128

0

14,500

Balance sheet information

Equity accounted investments 

3

0

0

783

1,665

57

0

2,508

Non-current segment assets 

28,915

17,977

11,049

3,997

1,575

1,018

0

64,530

Non-current assets not allocated to

segments 

14,487

Total non-current assets 

81,525

Assets classified as held for sale

0

1,064

0

0

0

0

0

1,064

2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

304

1,099

305

147,164

16

115

0

149,004

Revenues and other income inter-segment

74,631

6,124

5,217

527

0

55

(86,554)

0

Net income/(loss) from equity accounted

investments

0

172

0

406

58

(16)

0

620

Other income

994

35

0

9

111

33

0

1,182

Total revenues and other income 

75,930

7,431

5,523

148,105

185

187

(86,554)

150,806

Purchases [net of inventory variation]

0

(116)

0

(139,916)

0

0

86,227

(53,806)

Operating, selling, general and

administrative expenses

(3,782)

(1,698)

(938)

(4,591)

(265)

(223)

904

(10,593)

Depreciation and amortisation

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

0

(8,878)

Net impairment (losses)/reversals

819

(286)

1,060

895

0

0

0

2,487

Exploration expenses

(366)

(638)

(201)

0

0

0

0

(1,205)

Total operating expenses

(8,315)

(4,183)

(1,501)

(144,493)

(269)

(365)

87,130

(71,995)

Net operating income/(loss)

67,614

3,248

4,022

3,612

(84)

(178)

577

78,811

Additions to PP&E, intangibles and equity

accounted investments

4,922

2,623

764

1,212

298

176

0

9,994

Balance sheet information

Equity accounted investments 

3

550

0

688

1,452

65

0

2,758

Non-current segment assets 

28,510

15,868

11,311

4,619

316

1,031

0

61,656

Non-current assets not allocated to

segments 

15,437

Total non-current assets 

79,851

Assets classified as held for sale

0

1,018

0

0

0

0

0

1,018

2021

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

261

1,115

377

86,883

8

99

0

88,744

Revenues and other income inter-segment

38,972

4,230

3,771

321

0

41

(47,335)

0

Net income/(loss) from equity accounted

investments

0

214

0

22

16

7

0

259

Other income

154

5

0

168

1,386

208

0

1,921

Total revenues and other income

39,386

5,565

4,149

87,393

1,411

355

(47,335)

90,924

Purchases [net of inventory variation]

0

(58)

0

(80,873)

0

(1)

45,772

(35,160)

Operating, selling, general and

administrative expenses

(3,653)

(1,405)

(1,074)

(3,753)

(163)

(432)

1,102

(9,378)

Depreciation and amortisation

(6,002)

(1,734)

(1,665)

(869)

(3)

(158)

0

(10,432)

Net impairment (losses)/reversals

1,102

(1,587)

(69)

(735)

0

2

0

(1,287)

Exploration expenses

(363)

(451)

(190)

0

0

0

0

(1,004)

Total operating expenses

(8,915)

(5,237)

(2,998)

(86,230)

(166)

(590)

46,873

(57,261)

Net operating income/(loss)

30,471

329

1,150

1,163

1,245

(234)

(461)

33,663

Additions to PP&E, intangibles and equity

accounted investments

4,943

1,834

690

517

457

64

0

8,506

Balance sheet information

Equity accounted investments

3

1,417

0

113

1,108

45

0

2,686

Non-current segment assets

36,502

15,422

11,406

4,006

157

1,032

0

68,527

Non-current assets not allocated to

segments

13,406

Total non-current assets

84,618

Assets classified as held for sale

0

676

0

0

0

0

0

676

Non-current assets by country

At 31 December

(in USD million)

2023

2022

Norway

32,977

33,242

USA

12,587

12,343

Brazil

10,871

9,400

UK

5,535

3,688

Canada

1,157

1,171

Angola

1,103

895

Denmark

973

497

Argentina

648

615

Algeria

474

622

Poland

447

270

Other

265

1,672

Total non-current assets

1)

67,038

64,414

Excluding deferred tax assets, pension assets and non-current financial assets.

 Non-current assets are attributed to country of

operations.

XML

Acquisitions and disposals

12 Months Ended

Dec. 31, 2023

Acquisitions and disposals [Abstract]

Acquisitions and disposals

6 Acquisitions and disposals

Accounting policies

Business combinations and divestments

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition

method when control is transferred to the group. The purchase price includes total consideration paid to acquire the entity’s assets

and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are

measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative

expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the

Consolidated statement of income under Other income.

Equinor recognises a gain or loss on disposal of a subsidiary when control is lost. Any interest retained in the former subsidiary is

measured at fair value at the time of loss of control. However, when partially divesting subsidiaries that do not constitute a business,

and where the retained investment in the former subsidiary is an associate or a jointly controlled investment, Equinor recognises the

gain or loss only on the divested part within Other income or Operating expenses, respectively. The interest retained in the former

subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities

previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of

income.

Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This

condition is met when an asset is available for immediate sale in its present condition, Equinor’s management is committed to the

sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are

normally met when management has approved a negotiated letter of intent with the counterparties (a ‘DGC’). Liabilities directly

associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified

separately.

Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-

case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an asset purchase,

and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar

assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of oil

and gas exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to

represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10

Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The assessment requires judgement to

be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the IFRS Accounting Standards’

requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been

postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal

entities concurrently with a portion of the entities’ shares being sold to a third party, thereby resulting in Equinor’s loss of control of

those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to

recognise the gain only on the divested portion.

----------------------------------------------------------------------------------------------------------------------------------------

2023

Acquisitions

Acquisition of Rio Energy

On 3 November 2023, Equinor closed a transaction with Denham Capital to acquire

100

% of the shares in Horus Investimentos S.A.,

the parent company of Rio Energy Participações S.A., a leading onshore renewables company in Brazil. The cash consideration

amounted to USD

82

 million in addition to USD

268

 million in capital contribution to settle Rio Energy’s external financing. The acquired

portfolio includes a producing onshore wind farm in the north-eastern state of Bahia, a pre-construction solar photovoltaic (PV) portfolio

and a pipeline of 1.2 GW of onshore wind and solar projects. This transaction resulted in an increase in Equinor’s property, plant and

equipment of USD

350

 million. The transaction has been accounted for as a business combination within the REN segment. The

purchase price and the purchase price allocation are preliminary.

Acquisition of Suncor Energy UK Limited

On 30 June 2023, Equinor closed a transaction with Suncor Energy UK Holdings Ltd to acquire

100

% of the shares in Suncor Energy

UK Limited for a total consideration of USD

847

 million after customary adjustments for working capital. The transaction includes a non-

operated interest in the producing Buzzard oil field (

29.89

%) and an additional interest in the operated Rosebank development (

40

%).

The transaction has been accounted for within the E&P International segment as a business combination, resulting in an increase in

Equinor’s property, plant and equipment of USD

1,490

 million and deferred tax liabilities of USD

672

 million. The purchase price

allocation remains preliminary.

Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar

Aps to acquire

100

% of the shares in the Danish solar developer BeGreen Solar Aps. The cash consideration amounted to USD

252

million (EUR

235

 million), in addition to a consideration contingent on the successful delivery of future solar projects above an agreed

megawatt threshold. The transaction has been accounted for within the REN segment as a business combination, resulting in an

increase of Equinor’s intangible assets of USD

423

 million.

Disposals

Equinor Energy Ireland Limited

On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity position

in the Corrib gas project in Ireland, covering

100

% of the shares in Equinor Energy Ireland Limited (EEIL). Prior to closing, Equinor

received an extraordinary dividend of USD

371

 million from EEIL. Total consideration amounted to USD

362

 million, including cash

settlement of contingent consideration. A loss of USD

258

 million has been recognised within the E&P International segment and

presented in the line item Operating expenses in the Consolidated statement of income.

Held for sale

Divestment of interest in Azerbaijan

On 22 December 2023, Equinor entered into an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR) to sell

its interest in its Azerbaijan assets. The assets comprise a

7.27

% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in

the Azerbaijan sector of the Caspian Sea,

8.71

% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and

50

% in the Karabagh oil

field. Closing is expected during 2024 subject to regulatory and contractual approvals. The assets have been classified as held for sale

resulting in a USD

310

 million impairment within the E&P International segment, presented in the line item Depreciation, amortisation

and net impairments in the Consolidated statement of income.

2022

Acquisitions

Acquisition of Triton Power

On 1 September 2022, Equinor and SSE Thermal Generation Holdings Limited (SSE Thermal) closed a transaction to acquire the UK

power company Triton Power Holdings Ltd (Triton Power) from Triton Power Partners LP owned by Energy Capital Partners (ECP).

Equinor’s share of the consideration was USD

141

 million (GBP

120

 million), after adjustments that mainly related to net debt and

working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station with an installed capacity of 1.2

GW. Equinor and SSE Thermal own

50

% each of Triton Power, and Equinor is accounting for the investment under the equity method

as a joint venture in the MMP segment.

Acquisition of Statfjord

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy’s ownership interests in production licences in the Statfjord

area which covers the Norwegian and UK Continental Shelves ranging from

11.56

% to

48.78

%. All licences are operated by Equinor.

The cash consideration received was USD

168

 million. The assets and liabilities acquired have been reflected in accordance with the

principles in IFRS 3 Business Combinations. The transaction is reflected in the E&P Norway and E&P International segments. In the

segment E&P Norway, the acquisition resulted in an increase of USD

98

 million in property, plant and equipment, an increase of USD

390

 million in asset retirement obligation, a reduction of deferred tax liability of USD

298

 million and an increase in taxes payable of

USD

98

 million. In the segment E&P International, the acquisition resulted in an increase of USD

98

 million in property, plant and

equipment, an increase of USD

241

 million in asset retirement obligation and an increase of deferred tax asset of USD

86

 million.

Disposals

Ekofisk and Martin Linge on the Norwegian Continental Shelf

On 30 September 2022, Equinor closed a transaction with Sval Energi AS to divest Equinor’s entire ownership share in the Greater

Ekofisk Area including its share in Norpipe Oil AS, and a

19

% ownership share in Martin Linge. The cash consideration at closing

amounted to USD

293

 million. Equinor retained a

51

% ownership share in Martin Linge and continues as operator of the field. The

disposal resulted in a decrease in property, plant and equipment of USD

1,493

 million, a decrease in asset retirement obligation of USD

376

 million, a decrease in deferred tax liability of USD

597

 million and a decrease in taxes payable of USD

686

 million. A post-tax gain

of USD

655

 million is presented in the line item Other income in the Consolidated statement of income in the E&P Norway segment.

Exit Russia

Following Russia’s invasion of Ukraine in February 2022, Equinor announced that it had decided to stop new investments in Russia and

start the process of exiting Equinor’s joint arrangements. Based on this decision, Equinor evaluated its assets in Russia and recognised

net impairments of USD

1,083

 million in the first quarter, of which USD

251

 million was related to property, plant and equipment and

intangible assets and USD

832

 million was related to investments accounted for using the equity method. The impairments were net of

contingent consideration from the time of acquiring the assets. The impairments were recognised in the line items Depreciation,

amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based on the nature of the

impaired assets and reflected in the E&P International segment. During the second quarter, Equinor transferred its participating interests

in four Russian entities to Rosneft and was released from all future commitments and obligations with no material impact on the financial

statements. The ownership interests in Kharyaga were transferred to the operator.

Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any new trades or engage in new transport of oil

and oil products from Russia. Equinor has assessed the accounting impact of certain commitments arising from such contracts entered

into prior to the invasion and deem the impact to be immaterial.

10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni to sell a

10

% equity interest in the Dogger Bank C project in the UK for a

total consideration of USD

91

 million (GBP

68

 million), resulting in a gain of USD

87

 million (GBP

65

 million). After closing, Equinor’s

ownership share is

40

%. Equinor continues to equity account for the remaining investment as a joint venture. The gain is presented in

the line item Other income in the Consolidated statement of income in the REN segment.

XML

Total revenues and other income

12 Months Ended

Dec. 31, 2023

Total revenues and other income [Abstract]

Total revenues and other income

7 Total revenues and other income

Accounting policies

Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption, Revenues, in the Consolidated

statement of income.

Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products, power and other merchandise is recognised when a customer

obtains control of those products, which for tangible products normally is when title passes at point of delivery, based on the

contractual terms of the agreements. Each such sale normally represents a single performance obligation. In the case of natural gas

as well as power, which is delivered on a continuous basis through pipelines and grid, sales are completed over time in line with the

delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and

Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial

instruments or part of Equinor’s trading activities, they are settled and presented on a net basis as Other revenue. Reference is made

to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of

Equinor’s own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of

volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the

ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership

interest, costs are deferred for the underlift.

Certain long-term LNG and natural gas sales contracts include clauses which entail price reviews at regular intervals at the discretion

of either party. Where updated prices have not yet been agreed upon for volumes already delivered, it is necessary to estimate the

amount of variable consideration Equinor expects to be entitled to for these volumes. In the frequently volatile markets, there is a

degree of estimation uncertainty and reasoned judgement in establishing the expected variable consideration.

Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as other revenue

if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain

production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related

to sales contracts or revenue-related risk management.

Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The

Norwegian State's participation in petroleum activities is organised through the Norwegian State’s Direct Financial Interests (SDFI). All

purchases and sales of the SDFI's oil and natural gas liquids production are classified as purchases [net of inventory variation] and

revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI’s account and risk, the SDFI’s production of natural gas including Liquefied Natural

Gas (LNG). These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial

statements. Natural gas sales made in the name of Equinor’s subsidiaries are also presented net of the SDFI’s share in the

Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement,

Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards sales to third party customers.

Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor

purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has

concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although

Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI.

On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and

SDFI.

----------------------------------------------------------------------------------------------------------------------------------------

Revenues from contracts with customers by geographical areas

Equinor has business operations in around 30 countries.

When attributing the line-item Revenues from contracts with customers for 2023

to the country of the legal entity executing the sale, Norway constitutes

79

% and USA constitutes

18

%. For 2022 the revenues to

Norway and USA constituted

84

% and

13

% respectively, and for 2021

81

% and

13

% respectively.

Revenues from contracts with customers and other revenues

(in USD million)

Note

2023

2022

2021

Crude oil

56,861

58,524

38,307

Natural gas

26,386

65,232

28,050

 - European gas

23,174

58,239

24,900

 - North American gas

1,111

2,884

1,783

 - Other incl LNG

2,102

4,109

1,368

Refined products

10,083

11,093

11,473

Natural gas liquids

8,345

9,240

8,490

Transportation

1,425

1,470

921

Other sales

3,032

4,702

1,006

Total revenues from contracts with customers

106,132

150,262

88,247

Taxes paid in-kind

342

412

345

Physically settled commodity derivatives

1,331

(2,534)

(1,075)

Gain/(loss) on commodity derivatives

(1,041)

739

951

Change in fair value of trading inventory

(334)

(194)

0

Other revenues

418

319

276

Total other revenues

716

(1,258)

497

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

XML

Salaries and personnel expenses

12 Months Ended

Dec. 31, 2023

Salaries and personnel expenses [Abstract]

Salaries and personnel expenses

8 Salaries and personnel expenses

(in USD million, except average number of employees)

2023

2022

2021

Salaries

1)

2,876

2,875

2,962

Pension costs

2)

441

458

488

Payroll tax

511

433

414

Other compensations and social costs

375

324

288

Total payroll expenses

4,203

4,090

4,152

Average number of employees

3)

22,600

21,500

21,400

Salaries include bonuses and expatriate costs in addition to base pay.

2)

 See note 22 Pensions.

3)

 Part time employees amount to

2

% for 2023 and

3

% for 2022 and 2021.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours

incurred basis.

Compensation to the board of directors (BoD) and the corporate executive committee (CEC)

(in USD million)

1)

2023

2022

2021

Current employee benefits

10.7

12.9

12.2

Post-employment benefits

0.3

0.4

0.4

Other non-current benefits

0.0

0.0

0.0

Share-based payment benefits

0.3

0.2

0.1

Total benefits

11.3

13.5

12.7

1) All figures in the table are presented on accrual basis.

At 31 December 2023, 2022, and 2021 there are

no

 loans to the members of the BoD or the CEC.

Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions

and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of

purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts vested for bonus shares

granted and related social security tax was USD

78

 million, USD

85

 million, and USD

79

 million related to the 2023, 2022 and 2021

programmes, respectively. For the 2024 programme (granted in 2023), the estimated compensation expense is USD

83

 million. At 31

December 2023 the amount of compensation cost yet to be expensed throughout the vesting period is USD

176

 million.

See note 20 Shareholders’ equity, capital distribution and earnings per share for more information about share-based compensation.

XML

Auditor's remuneration and Research and development expenditures

12 Months Ended

Dec. 31, 2023

Auditor's remuneration and Research and development expenditures [Abstract]

Auditor's remuneration and Research and development expenditures

9 Auditor’s remuneration and Research and development expenditures

Auditor's remuneration

Full year

(in USD million, excluding VAT)

2023

2022

2021

Audit fee

14.9

11.4

14.4

Audit related fee 

1.2

1.8

1.1

Tax fee

-

-

-

Other service fee 

-

-

-

Total remuneration

16.1

13.2

15.5

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences amount to USD

0.5

 million, USD

0.6

 million and USD

0.5

 million for 2023, 2022 and 2021, respectively.

Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D activities

contribute to maximising and developing long-term value from Equinor’s assets. R&D expenditures are partially financed by partners

of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD

311

 million, USD

308

 million and USD

291

 million in 2023, 2022

and 2021, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated

statement of income.

XML

Financial items

12 Months Ended

Dec. 31, 2023

Financial items [Abstract]

Financial items

10 Financial items

Full year

(in USD million)

2023

2022

2021

Foreign currency exchange gains/(losses) derivative financial instruments 

(1,476)

797

870

Other foreign currency exchange gains/(losses)

2,328

1,291

(823)

Net foreign currency exchange gains/(losses)

852

2,088

47

Dividends received

218

93

39

Interest income financial investments, including cash and cash equivalents

1,468

398

38

Interest income non-current financial receivables

31

30

26

Interest income other current financial assets and other financial items

732

701

48

Interest income and other financial income

2,449

1,222

151

Gains/(losses) financial investments

123

(394)

(348)

Gains/(losses) other derivative financial instruments

351

(1,745)

(708)

Interest expense bonds and bank loans and net interest on related derivatives

(1,263)

(1,029)

(896)

Interest expense lease liabilities

(132)

(90)

(93)

Capitalised borrowing costs

468

382

334

Accretion expense asset retirement obligations

(538)

(449)

(453)

Interest expense current financial liabilities and other financial expense

(195)

(192)

(114)

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Net financial items

2,114

(207)

(2,080)

Equinor's main financial items relate to assets and liabilities in the fair value through profit or loss and the amortised cost categories.

For more information about financial instruments by category see note 28 Financial instruments and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to

liquidity and currency risk. Other foreign currency exchange gains/(losses) includes a fair value gain from derivatives related to non-

current debt of USD

315

 million in 2023, and a loss of USD

691

 million and USD

702

 million in 2022 and 2021 respectively.

Interest income financial investments, including cash and cash equivalents includes interest income related to balances at amortised

cost of USD

1,410

 million, USD

364

 million, and USD

12

 million for 2023, 2022 and 2021, respectively.

Gains/(losses) other derivative financial instruments primarily include fair value changes from interest rate related derivatives, with a

gain of USD

332

 million in 2023 and a loss of USD

1,760

 million and USD

724

 million in 2022 and 2021 respectively.

Interest expense bonds and bank loans and net interest on related derivatives includes interest expenses of USD

857

 million, USD

918

 million, and USD

990

 million for 2023, 2022 and 2021, respectively, on financial liabilities at amortised cost. It also includes net

interest on related derivatives at fair value through profit or loss, amounting to a net interest expense of USD

405

 million for 2023 and

USD

111

 million for 2022, and a net interest income of USD

94

 million for 2021.

XML

Income taxes

12 Months Ended

Dec. 31, 2023

Income taxes [Abstract]

Income taxes

11 Income taxes

Accounting policies 

Income tax

Income tax in the Consolidated statement of income comprises current income tax and effects of changes in deferred tax positions.

Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in other comprehensive

income (OCI).

Current tax consists of the expected tax payable for the year and any adjustment to tax payable for previous years. Uncertain tax

positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each

case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for

which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to differences between the carrying

amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses and credits carried forward, subject

to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income

will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income,

convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of

expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate

movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding

deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items.

Equinor has adopted amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules (top-up tax) with effect from 1

January 2023. Equinor has applied the mandatory exception and does not recognise or disclose information about deferred tax assets

and liabilities related to Pillar Two income taxes. 

The mandatory exception applies retrospectively. However, since no new legislation to implement the top-up tax was enacted or

substantively enacted on 31 December 2022 in any jurisdiction in which Equinor operates, and no related deferred tax was recognised

at that date, the retrospective application has no impact on the Consolidated financial statements. 

Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred

tax assets and deferred tax liabilities. There may be uncertainties related to interpretations of applicable tax laws and regulations

regarding amounts in Equinor’s tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may

take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions

through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations

and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is

dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the

case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions

against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased

the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient

future taxable income before tax losses expire.

-----------------------------------------------------------------------------------------------------------------------------------

Significant components of income tax expense

Full year

(in USD million)

2023

2022

2021

Current income tax expense in respect of current year

(24,028)

(52,124)

(21,271)

Prior period adjustments

(121)

(112)

(28)

Current income tax expense

(24,149)

(52,236)

(21,299)

Origination and reversal of temporary differences

(1,529)

(2,136)

(1,778)

Recognition / derecognition of previously (un)recognised deferred tax assets

(137)

4,401

126

Change in tax regulations

4

0

4

Prior period adjustments

(169)

110

(60)

Deferred tax income/(expense)

(1,831)

2,375

(1,708)

Income tax

(25,980)

(49,861)

(23,007)

Changes to tax regimes

Pillar Two

On 24 November 2023 the Norwegian Ministry of Finance published a draft resolution on the implementation of the OECD Pillar Two

Model Rules into Norwegian legislation. The rules are introducing a global minimum tax of

15

%. The proposal was sanctioned in

January 2024 and the Norwegian Top Up Tax Act (No: “Suppleringsskatteloven”) has entered into effect for the income year 2024.

The Pillar Two rules will be applicable to the Equinor group, but Equinor’s preliminary assessment is that we do not expect any

significant economic impact from the rules.

Reconciliation of statutory tax rate to effective tax rate

Full year

(in USD million)

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Calculated income tax at statutory rate

1)

(8,833)

(18,168)

(7,053)

Calculated Norwegian Petroleum tax

2)

(17,226)

(36,952)

(17,619)

Tax effect uplift

3)

160

259

914

Tax effect of permanent differences regarding divestments

82

417

90

Tax effect of permanent differences caused by functional currency different from tax currency

5

145

150

Tax effect of other permanent differences

453

403

228

Recognition / derecognition of previously (un)recognised deferred tax assets

4)

(137)

4,401

126

Change in unrecognised deferred tax assets

(29)

(34)

619

Change in tax regulations

4

0

4

Prior period adjustments

(290)

(3)

(88)

Other items including foreign currency effects

(169)

(327)

(378)

Income tax

(25,980)

(49,861)

(23,007)

Effective tax rate

68.6 %

63.4 %

72.8 %

The weighted average of statutory tax rates was

23.3

% in 2023,

23.1

% in 2022 and

22.3

% in 2021. The rates are influenced by

earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates.

2)

 The Norwegian petroleum income is taxable at a tax rate of

71.8

% after deducting a calculated

22

% corporate tax.

3)

 As from 2023 the uplift deduction for investments on NCS has been abolished except for asset investments that fall under the

temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to the authorities before 31

December 2022 the rules allow a direct deduction of the whole uplift in the year the capital expenditure is incurred. In 2022 the

rate was

17.69

% and this rate was reduced to

12.4

% in 2023. 

4)

 Equinor performs its assessment on DTA recognition based on sources of income such as the reversal pattern of taxable timing

differences and projections of taxable income and recognises the amount of deferred tax assets that is probable to be realised. In

2023 USD

137

 million was derecognised due to an increase in valuation allowance mainly related to Angola and Canada, compared

to a recognition of USD

4,401

 million in 2022 mainly related to unused accumulated tax losses in the US.

Deferred tax assets and liabilities comprise

(in USD million)

Tax losses

carried

forward

Property,

plant and

equipment 

and

intangible

assets

Asset

retirement

obligations

Lease

liabilities

Pensions

Derivatives

Other

Total

Deferred tax assets

8,575

514

7,816

1,298

747

446

1,495

20,892

Deferred tax liabilities

(28)

(26,042)

0

(2)

(6)

0

(300)

(26,378)

Net asset/(liability) at 31 December

2023

8,547

(25,528)

7,816

1,296

741

446

1,195

(5,485)

Deferred tax assets

8,105

694

7,356

1,306

694

1,131

1,348

20,634

Deferred tax liabilities

(28)

(23,356)

0

(3)

(12)

(3)

(411)

(23,813)

Net asset/(liability) at 31 December

2022

8,077

(22,662)

7,356

1,303

682

1,128

937

(3,179)

Changes in net deferred tax liability during the year were as follows:

(in USD million)

2023

2022

2021

Net deferred tax liability at 1 January

3,179

7,655

6,250

Charged/(credited) to the Consolidated statement of income

1,831

(2,375)

1,708

Charged/(credited) to Other comprehensive income

(66)

105

35

Acquisitions and disposals

981

(968)

36

Foreign currency translation effects and other effects

(440)

(1,239)

(374)

Net deferred tax liability at 31 December

5,485

3,179

7,655

Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a

legally enforceable right to offset current tax assets against current tax liabilities. After netting deferred tax assets and liabilities by

fiscal entity and reclassification to Assets held for sale, deferred taxes are presented on the Consolidated balance sheet as follows:

At 31 December

(in USD million)

2023

2022

Deferred tax assets

7,936

8,732

Deferred tax liabilities

13,345

11,996

Net deferred tax classified as held for sale

(76)

85

Deferred tax assets are recognised based on the expectation that sufficient taxable income will be available through reversal of

taxable temporary differences or future taxable income. At year-end 2023, the deferred tax assets of USD

7,952

 million were primarily

recognised in the US, the UK, Norway, Angola, Canada and Brazil. Of this amount, USD

965

 million was recognised in entities which

have suffered a tax loss in either the current or the preceding period. The corresponding amounts for 2022, were USD

8,817

 million

and USD

1,953

 million, respectively. The tax losses will be utilised through reversal of taxable temporary differences and future

taxable income, mainly from production of oil and gas. Around

80

% of the tax losses carried forward and recognised as deferred tax

assets are expected to be fully utilised within

10 years

.

Unrecognised deferred tax assets

At 31 December

2023

2022

(in USD million)

Basis

Tax

Basis

Tax

Deductible temporary differences

2,555

1,030

2,558

968

Unused tax credits

0

185

0

129

Tax losses carried forward

3,944

947

3,458

930

Total unrecognised deferred tax assets

6,499

2,162

6,016

2,027

Approximately

90

% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the unrecognised

tax losses that cannot be carried forward indefinitely expire

after 2027

. The unrecognised tax credits expire from 2030, while the

unrecognised deductible temporary differences do not expire under the current tax legislation. Deferred tax assets have not been

recognised in respect of these items because currently there is insufficient evidence to support that future taxable profits will be

available to secure utilisation of the benefits.

At year-end 2023, unrecognised deferred tax assets in Angola and Canada represents USD

712

 million and USD

415

 million,

respectively, of the total unrecognised deferred tax assets of USD

2,162

 million. Similar amounts for 2022 were USD

636

 million in

Angola and USD

346

 million in Canada of a total of USD

2,027

 million. The remaining unrecognised deferred tax assets originate from

several different tax jurisdictions.

XML

Property, plant and equipment

12 Months Ended

Dec. 31, 2023

Property, plant and equipment [Abstract]

Property, plant and equipment

12 Property, plant and equipment

Accounting policies

Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset

comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate

of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.

Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with

later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the

asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing

agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective

countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and

overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and

carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection

and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or completion of

infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport systems for oil

and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when

designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the

unit of production method (UoP) based on proved reserves expected to be recovered from the area during the concession or contract

period. Depreciation of production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs

of proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances where the use

of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset’s future economic benefits are

expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets and transport systems used by

several fields is calculated on the basis of their estimated useful lives, normally using the straight-line method. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For

exploration and production assets, Equinor has established separate depreciation categories which as a minimum distinguish

between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are

accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on

derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably

certain, are recognised in the Consolidated balance sheet as a deduction to the carrying value of the asset and subsequently

recognised in the Consolidated statement of income over the life of the depreciable asset as a reduced depreciation expense.

Research and development

Equinor undertakes research and development both on a funded basis for licence holders and on an unfunded basis for projects at its

own risk, developing innovative technologies to create opportunities and enhance the value of current and future assets. Expenses

relate both to in-house resources and the use of suppliers. Equinor's own share of the licence holders' funding and the total costs of

the unfunded projects are considered for capitalisation under the applicable IFRS Accounting Standard requirements. Subsequent to

initial recognition, any capitalised development costs are accounted for in the same manner as Property, plant and equipment. Costs

not qualifying for capitalisation are expensed as incurred, see note 9 Auditor’s remuneration and Research and development

expenditures for more details.

Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and gas quantities are

always uncertain. Estimating reserves is complex and based on a high degree of professional judgement involving geological and

engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and

installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and

economic data and the efficiency of extracting and processing the hydrocarbons.

Estimation uncertainty; Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets, as changes in the proved reserves, will

impact the unit of production rates used for depreciation and amortisation. 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. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves only reflect the period before

the contracts providing the right to operate expire. For future development projects, proved reserves estimates are included only

where there is a significant commitment to project funding and execution and when relevant governmental and regulatory approvals

have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed reserves are to be

recovered through existing wells with existing equipment and operating methods, or where the cost of the required equipment is

relatively minor compared to the cost of a new well. Proved undeveloped reserves are to be recovered from new wells on undrilled

acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled well locations can be classified as

having proved undeveloped reserves if a development plan is in place indicating that they are scheduled to be drilled within five years

unless specific circumstances justify a longer time horizon. Specific circumstances are for instance fields which have large up-front

investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled to continue for much

longer than five years. For unconventional reservoirs where continued drilling of new wells is a major part of the investments, such as

the US onshore assets, the proved reserves are always limited to proved well locations scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry standards and are governed by

the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission (SEC) regulations S-K and S-X,

and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have

been based on a 12-month average product price and on existing economic conditions and operating methods as required, and

recovery of the estimated quantities have a high degree of certainty (at least a 90% probability). An independent third party has

evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates.

Estimation uncertainty; Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of asset retirement obligations, as a consequence

of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets, possibly affecting impairment

testing and the recognition of deferred tax assets. Expected oil and gas reserves are the estimated remaining, commercially

recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in operation or decided for

development. As per Equinor’s internal guidelines, expected reserves are defined as the ‘forward looking mean reserves’ when based

on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which case the expected reserves

are the deterministic base case or best estimate. Expected reserves are therefore typically larger than proved reserves as defined by

the SEC, which are high confidence estimates with at least a 90% probability of recovery when a probabilistic approach is used.

Expected oil and gas reserves have been estimated by internal qualified professionals based on industry standards and classified in

accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate.

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

4)

Total

Cost at 1 January 2023

1,343

171,948

8,285

562

10,815

6,633

199,586

Additions through business acquisition

7)

48

1,121

339

38

370

8

1,923

Additions and transfers

6)

113

7,286

60

19

3,196

1,087

11,761

Changes in asset retirement obligations

0

772

0

0

55

0

827

Disposals at cost

(64)

(3,567)

(446)

(29)

(30)

(634)

(4,771)

Assets reclassified to held for sale

8)

(1)

(3,944)

0

0

(245)

(8)

(4,198)

Foreign currency translation effects

0

(2,705)

(133)

1

(64)

(36)

(2,937)

Cost at 31 December 2023

1,438

170,911

8,105

591

14,097

7,050

202,191

Accumulated depreciation and impairment at

1 January 2023

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Depreciation

(44)

(7,976)

(224)

(26)

0

(1,079)

(9,350)

Impairment

(2)

(844)

(323)

0

(18)

(1)

(1,188)

Reversal of impairment

0

288

0

0

3

0

290

Transfers

6)

1

(11)

0

(1)

10

0

(2)

Accumulated depreciation and impairment

on disposed assets

52

3,355

442

28

22

634

4,533

Accumulated depreciation and impairment

assets classified as held for sale

8)

1

3,176

0

0

0

6

3,183

Foreign currency translation effects

7

2,142

88

0

3

10

2,251

Accumulated depreciation and impairment at

31 December 2023

5)

(1,188)

(131,325)

(6,780)

(337)

(117)

(3,623)

(143,369)

Carrying amount at 31 December 2023

250

39,585

1,325

254

13,980

3,427

58,822

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 30

 10 - 33

2)

 1 - 20

3)

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2022

1,335

183,358

8,481

596

12,614

5,850

212,234

Additions and transfers

6)

52

9,390

378

6

(813)

1,319

10,332

Changes in asset retirement obligations

0

(4,756)

0

0

(48)

0

(4,805)

Disposals at cost

(9)

(3,487)

2

(20)

(5)

(347)

(3,865)

Foreign currency translation effects

(36)

(12,557)

(576)

(19)

(934)

(188)

(14,310)

Cost at 31 December 2022

1,343

171,948

8,285

562

10,815

6,633

199,586

Accumulated depreciation and impairment

at 1 January 2022

(1,188)

(137,763)

(7,926)

(320)

(344)

(2,619)

(150,159)

Depreciation

(52)

(7,643)

(160)

(33)

0

(969)

(8,856)

Impairment

(8)

(187)

(39)

0

(49)

(4)

(286)

Reversal of impairment

4

2,585

802

0

207

0

3,599

Transfers

6)

(2)

(20)

2

0

20

(8)

(8)

Accumulated depreciation and impairment

on disposed assets

8

2,002

(4)

5

0

347

2,359

Foreign currency translation effects

34

9,571

562

9

30

59

10,264

Accumulated depreciation and impairment

at 31 December 2022

5)

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Carrying amount at 31 December 2022

140

40,493

1,522

224

10,679

3,439

56,498

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 20

 10 - 33

2)

 1 - 20

3)

Depreciation according to unit of production method.

2)

 Land is not depreciated

.

Buildings include leasehold improvements.

3)

 Depreciation linearly over contract period.

4)

 Right of use assets at 31 December 2023 mainly consist of Land and buildings USD

1,038

 million, Vessels USD

1,578

 million

and Drilling rigs USD

504

 million.

5)

 See note 14 Impairments.

6)

 The carrying amount of assets transferred to Property plant and equipment from Intangible assets

in 2023 and 2022 amounted to

USD

1,280

 million and USD

982

 million, respectively.

7)

 For additions through business acquisition, see note 6 Acquisitions and disposals.

8)

 For assets reclassified to held for sale, see note 6 Acquisitions and disposals.

XML

Intangible Assets

12 Months Ended

Dec. 31, 2023

Intangible assets [Abstract]

Intangible assets

13 Intangible assets

Accounting policies

Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible assets include acquisition cost for oil

and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas resources, goodwill, and other intangible

assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil and natural gas resources are not

amortised. When the decision to develop a particular area is made, related intangible exploration and evaluation assets are

reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or group of units, expected to benefit

from the combination’s synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment. In

acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred tax is reflected in the accounts

based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to

such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group of CGUs on whose tax depreciation basis

the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line method.

Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to acquire mineral interests

in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells and evaluation expenditures

are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas prospects. Geological and

geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangible assets during the

evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the

evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons, the previously capitalised costs are

evaluated for derecognition or tested for impairment. Any derecognition or impairment is classified as Exploration expenses in the

Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred to Property,

plant and equipment at the time of sanctioning of the development project. The timing from evaluation of a discovery until a project is

sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery,

whether a host government agreement is in place, the complexity of the project and the financial robustness of the project. For

onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for

production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund a portion of the selling

partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected in the Consolidated

financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain or loss

recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying amount of the asset. If the

consideration exceeds the carrying amount of the asset, the excess amount is reflected in the Consolidated statement of income

under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with only immaterial cash considerations

are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether a major capital

expenditure can be justified, will remain capitalised during the evaluation phase for the findings on the exploration wells. Thereafter it

will be considered a trigger for impairment evaluation of the well if no development decision is planned for the near future, and there

moreover are no concrete plans for future drilling in the licence. Judgements as to whether these expenditures should remain

capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the

operating income for the period.

------------------------------------------------------------------------------------------------------------------------------

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2023

1,599

2,035

1,380

528

5,542

Additions through business acquisition

0

5

348

446

799

Additions

410

360

9

210

989

Disposals at cost

0

0

(10)

(124)

(135)

Transfers

(961)

(319)

4

(4)

(1,280)

Expensed exploration expenditures previously capitalised

114

(61)

0

0

53

Foreign currency translation effects

7

16

2

16

41

Cost at 31 December 2023

1,169

2,036

1,733

1,072

6,010

Accumulated amortisation and impairment at 31 December 2023

1)

(302)

(302)

Carrying amount at 31 December 2023

1,169

2,036

1,733

2)

770

5,709

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2022

1,958

2,670

1,467

722

6,816

Additions

227

4

36

57

324

Disposals at cost

(10)

(50)

0

1

(58)

Transfers

(227)

(516)

0

(239)

(982)

Expensed exploration expenditures previously capitalised

(283)

(59)

0

0

(342)

Impairment of goodwill

0

0

(3)

0

(3)

Foreign currency translation effects

(65)

(14)

(121)

(13)

(213)

Cost at 31 December 2022

1,599

2,035

1,380

528

5,542

Accumulated amortisation and impairment at 31 December 2022

1)

(384)

(384)

Carrying amount at 31 December 2022

1,599

2,035

1,380

144

5,158

1) See note 14 Impairments.

2) Goodwill at 31 December 2023 mainly consists of technical goodwill related to business acquisitions in 2019, of which USD

533

million in the Exploration & Production Norway area and USD

440

 million in the Marketing Midstream & Processing area.

The table below shows the aging of capitalised exploration expenditures.

(in USD million)

2023

2022

Less than one year

345

250

Between one and five years

458

340

More than five years

366

1,009

Total capitalised exploration expenditures

1,169

1,599

The table below shows the components of the exploration expenses.

Full year

(in USD million)

2023

2022

2021

Exploration expenditures

1,275

1,087

1,027

Expensed exploration expenditures previously capitalised

(53)

342

171

Capitalised exploration

(427)

(224)

(194)

Exploration expenses

795

1,205

1,004

XML

Impairments

12 Months Ended

Dec. 31, 2023

Impairments [Abstract]

Impairments

14 Impairments

Accounting policies

Impairment of property, plant and equipment, right-of-use assets, intangible assets including goodwill and equity accounted

investments

Equinor assesses individual assets or groups of assets for impairment whenever events or changes in circumstances indicate that the

carrying value may not be recoverable. Assets are grouped into cash generating units (CGUs). Normally, separate CGUs are

individual oil and gas fields or plants, or equity accounted investments. Each unconventional asset play is considered a single CGU

when no cash inflows from parts of the play can be reliably identified as being largely independent of the cash inflows from other parts

of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the

recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the

asset or CGU to which the unproved properties belong may exceed its recoverable amount, and at least once a year. Exploratory

wells that have found reserves, but where classification of those reserves as proved depends on whether major capital expenditure

can be justified or where the economic viability of that major capital expenditure depends on the successful completion of further

exploration work, will remain capitalised during the evaluation phase for the exploratory finds. If, following evaluation, an exploratory

well has not found proved reserves, the previously capitalised costs are tested for impairment. After the initial evaluation phase for a

well, it will be considered a trigger for impairment testing of a well if no development decision is planned for the near future and there

is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value

may be impaired. Impairment is determined by assessing the recoverable amount of the CGU, or group of units, to which the goodwill

relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred tax provision in a post-

tax transaction on the NCS, the remaining amount of the deferred tax provision will factor into the impairment valuation. 

Impairment and reversals of impairment are presented in the Consolidated statement of income as Exploration expenses or

Depreciation, amortisation and net impairment, on the basis of the nature of the impaired assets as either exploration assets

(intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets),

respectively.

Measurement

The recoverable amount applied in Equinor’s impairment assessments is normally estimated value in use. Equinor may also apply the

assets’ fair value less cost of disposal as the recoverable amount when such a value is available, reasonably reliable, and based on a

recent and comparable transactions.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and

supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the

remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions and economic conditions

in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs

with an expected useful life or timeline for production of expected oil and natural gas reserves extending beyond five years, including

planned onshore production from shale assets with a long development and production horizon, the forecasts reflect expected

production volumes, and the related cash flows include project or asset specific estimates reflecting the relevant period. Such

estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted using a real post-tax discount rate

which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a

monetary adjustment to the projects’ cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is

adjusted for risk that influences the expected cash flow of a project and which is not part of the project itself. The use of post-tax

discount rates in determining value in use does not result in a materially different determination of the need for, or the amount of,

impairment that would be required if pre-tax discount rates had been used.

Impairment reversals

A previously recognised impairment is reversed only if there has been a change in the estimates used to determine the asset’s

recoverable amount since the last impairment was recognised. Previously recognised impairments of goodwill are not reversed in

future periods.

Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a high degree of judgement and may to a

large extent depend upon the selection of key assumptions about the future. In Equinor's line of business, judgement is involved in

determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product pricing, management

actions and other factors may over time lead to changes in CGUs such as splitting one original CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic factors such as future

commodity prices and discount rates, and uncertainty in asset specific factors such as reserve estimates and operational decisions

impacting the production profile or activity levels. Changes in foreign currency exchange rates will also affect value in use, especially

for assets on the NCS, where the functional currency is NOK. When estimating the recoverable amount, the expected cash flow

approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used in the estimated future cash flows.

For example, climate-related matters (see also Note 3

Climate change and energy transition

) are expected to have a pervasive effect on

the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-

related levies, and other matters with mainly mid-term and long-term effects. These effects have been factored into the price

assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor’s, market participants’ and other external sources’ assumptions about the future

and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires

long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, foreign

currency exchange rates and future output, discount rates, impact of the timing of tax incentive regulations, and political and country

risk among others. Long-term assumptions for major economic factors are made at a group level, and there is a high degree of

reasoned judgement involved in establishing these assumptions, in determining other relevant factors such as forward price curves, in

estimating production outputs, and in determining the ultimate terminal value of an asset.

------------------------------------------------------------------------------------------------------------------------------

Net impairments/(reversal of impairments)

Full year

(in USD million)

2023

2022

2021

Property, plant and equipment

897

(3,313)

1,285

Intangible assets

61

62

154

Equity accounted investments

363

832

0

Total net impairments/(reversals) including exploration expenses

1,321

(2,419)

1,439

The intangible assets line includes Goodwill, amortizable intangible assets, and certain acquisition costs related to oil and

gas prospects.

For impairment purposes, the asset’s carrying amount is compared to its recoverable amount. The table below describes, per area,

the Producing and development assets being impaired/(reversed), net impairment/(reversal), and the carrying amount after

impairment.

At 31 December 2023

At 31 December 2022

At 31 December 2021

(in USD million)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Exploration & Production Norway

887

588

3,201

(819)

5,379

(1,102)

Exploration & Production USA - onshore

0

0

546

(204)

1,979

48

Exploration & Production USA - offshore Gulf of Mexico

1,165

(290)

2,691

(882)

798

18

Europe and Asia

0

310

1,551

295

1,566

1,609

Marketing, Midstream & Processing

949

343

1,416

(895)

868

716

Renewables USA - offshore

134

300

0

0

0

0

Other

112

10

30

0

20

(7)

Total

3,247

1,261

9,435

(2,505)

10,611

1,282

Exploration & Production Norway

In 2023, the net impairment mainly relates to reduced expected reserves on a producing asset on the Norwegian Continental Shelf.

2022, the net impairment reversal was mainly caused by increased price estimates and changed gas export strategy. In 2021, the net

impairment reversal was mainly due to increased price estimates and an upward reserve revision.

Exploration & Production USA - onshore

In 2023, there were no impairments related to exploration and production assets USA – onshore. In 2022, the impairment reversal

was caused by increased gas price assumptions, while in 2021 the net impairment was caused by revision of reserves and sale of an

asset.

Exploration & Production USA - offshore Gulf of Mexico

In 2023, impairment reversals mainly relate to increased expected reserves on a producing asset. In 2022, the impairment reversal

was caused by increased price assumptions and higher reserves estimates, while in 2021, the impairment was due to a negative

reserve revision.

Exploration & Production International – Europe and Asia

In 2023, the impairment relates to the held for sale reclassification of Azerbaijan assets at the end of the year (see note 6 Acquisitions

and disposals). In 2022, the net impairment was mainly caused by the decision to exit Russia. This was to a large extent offset by a

reversal on Mariner in the UK mainly due to optimisation of the production profile and higher prices, supported by a slight increase in

reserves estimates. In 2021, the net impairment was mainly caused by downward reserve revisions partially offset by higher prices.

Marketing, Midstream & Processing

In 2023, net impairment mainly relates to expectations of stabilizing refinery margins at a lower level than the margins consumed in

recent periods. In 2022 the net impairment reversal was mainly related to increased refinery margin assumptions, while in 2021, the

impairment losses were caused by increased CO

2

 fees and – quotas on a refinery and a classification to held for sale.

Renewables USA – Offshore

In 2023, Equinor’s offshore wind projects on the US North East Coast are facing increased costs due to inflation and supply chain

constraints. On 12 October 2023, the New York State Public Service Commission (PSC) rejected price increase petitions related to

offtake agreements from several offshore and onshore wind farm developers, including Equinor’s joint ventures. As a consequence,

an impairment of USD

300

 million has been recognised. The recoverable amount of Equinor’s investments in the offshore wind

projects on the US North East Coast has been established applying a fair value approach. These investments are accounted for using

the equity method.

Accounting assumptions

There are inherent uncertainties in the assumptions, however the commodity price assumptions as well as currency assumptions

reflect management’s best estimate of the price and currency development over the life of the Group’s assets based on its view of

relevant current circumstances and the likely future development of such circumstances, including energy demand development,

energy and climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks,

technology and cost development and other factors. Management’s best estimate also takes into consideration a range of external

forecasts.

Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and

exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon

economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions

with effect from the second quarter of 2023. The main price assumptions applied in impairment and impairment reversal assessments

are disclosed in the table below as price-points on price curves. Previous price-points applied from the third quarter of 2022 and up to

and including the first quarter of 2023 are provided in brackets.

Year

Prices in real term 1)

2025

2030

2040

2050

Brent Blend (USD/bbl)

79

(78)

78

(78)

73

(73)

68

(68)

European gas (USD/MMBtu) - TTF 

15.5

20.9

9.1

(9.9)

9.5

(9.4)

9.5

(9.4)

Henry Hub (USD/MMBtu)

3.6

(4.2)

4.3

(3.9)

4.3

(3.9)

4.3

(3.9)

Electricity Germany (EUR/MWh)

106

(122)

78

(74)

71

(60)

71

(60)

EU ETS (EUR/tonne)

90

(84)

105

(84)

128

(111)

150

(137)

1) Basis year 2023. The prices in the table are price-points on price-curves.

Climate considerations are included in the impairment calculations directly by estimating the CO

2

 taxes in the cash flows. Indirectly,

the expected effect of climate change is also included in the estimated commodity prices where supply and demand are considered.

The prices also have effect on the estimated production profiles and economic cut-off of the projects. Furthermore, climate

considerations are a part of the investment decisions following Equinor’s strategy and commitments to the energy transition.

Norway’s Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

2

 tax (the

total of EU ETS + Norwegian CO

2

 tax) in Norway to

2,000

 NOK/tonne in 2030 is used for impairment calculations of Norwegian

upstream assets.

To reflect that carbon will have a cost for all our assets the current best estimate is considered to be EU ETS for countries outside EU

where carbon is not already subject to taxation or where Equinor has not established specific estimates.

The long-term NOK currency exchange rates are expected to be unchanged compared to previous long-term assumptions. The

NOK/USD rate from 2026 and onwards is kept at

8.50

, the NOK/EUR at

10.00

. The USD/GBP rate is kept at

1.35

.

The base discount rate applied in value in use calculations is

5.0

% real after tax. The discount rate is derived from Equinor’s weighted

average cost of capital. For projects, mainly within the REN segment in periods with fixed low risk income, a lower discount rate will be

considered. A derived pre-tax discount rate is in the range of

24

% for E&P Norway,

6

% for E&P USA and

7

% for MMP depending on

the asset’s characteristics, such as specific tax treatments, cash flow profiles, and economic life. The pre-tax rates for 2022 were

42

-

102

%,

6

-

9

% and

7

% respectively, in addition to

8

-

9

% for E&P International.

Sensitivities

Significant downward adjustments in Equinor's commodity price assumptions would result in impairment losses on certain producing

and development assets, including intangible assets subject to impairment assessment, while an opposite adjustment could lead to

impairment-reversals. Assuming a reasonably possible

30

% decline in commodity price forecasts over the assets' lifetime could result

in an illustrative impairment recognition of approximately USD

11

 billion before tax effects. See note 3 Climate change and energy

transition for possible effect of using the prices in a 1.5ºC compatible Net Zero Emission by 2050 scenario and the Announced

Pledges.

Similarly, for illustrative purposes, Equinor assessed the sensitivity of the discount rate used in the value in use calculations for

upstream producing assets and certain related intangible assets. It was determined an increase in the discount rate from

5.0

% to

6

%

real after tax, in isolation, the impairment amount recognised could have a potential impact of USD

2

 billion before tax effects.

The illustrative impairment sensitivities above are based on a simplified method, which assumes no changes to other input factors.

However, Equinor notes a price reduction of

30

% or those representing Net Zero Emission scenario and Announced Pledges

Scenario would likely impact business plans and other factors used in estimating an asset’s recoverable amount. The correlated

changes reduce the stand-alone impact of the price sensitivities. Changes in such input factors would likely include a reduction in the

cost level in the oil and gas industry and offsetting foreign currency effects, which has historically occurred following significant

changes in commodity prices.

XML

Joint arrangements and associates

12 Months Ended

Dec. 31, 2023

Joint arrangements and associates [Abstract]

Joint arrangements and associates

15 Joint arrangements and associates

Accounting policies

Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an activity subject to joint control, i.e.

when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are

classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor considers the nature of

products and markets of the arrangements and whether the substance of the agreements is that the parties involved have rights to

substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have rights to the net

assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues and expenses in joint operations in

accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope of IFRS 11 Joint Arrangements have been

classified as joint operations. A considerable number of Equinor's unincorporated joint exploration and production activities are

conducted through arrangements that are not jointly controlled, either because unanimous consent is not required among all parties

involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through

agreement between more than one combination of involved parties are considered to be outside the scope of IFRS 11, and these

activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all

such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for

financial information related to Equinor’s participation in joint operations within upstream activities.

Joint ventures, in which Equinor has rights to the net assets currently include the majority of Equinor’s investments in the Renewables

(REN) operating and reporting segment. Equinor’s participation in joint arrangements that are joint ventures and investments in

companies in which Equinor has neither control nor joint control but has the ability to exercise significant influence over operating and

financial policies, are classified and accounted for as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost plus post-acquisition changes in

Equinor’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. Equinor also

reflects its share of the investment’s other comprehensive income (OCI) arisen after the acquisition. The part of an equity accounted

investment’s dividend distribution exceeding the entity’s carrying amount in the Consolidated balance sheet is reflected as income

from equity accounted investments in the Consolidated statement of income. Equinor will subsequently only reflect the share of net

profit in the investment that exceeds the dividend already reflected as income.

The Consolidated statement of income reflects Equinor’s share of the results after tax of an equity accounted entity, adjusted to

account for depreciation, amortisation and any impairment of the equity accounted entity’s assets based on their fair values at the

date of acquisition. In case of material differences in accounting policies, adjustments are made in order to bring the accounts of the

equity accounted investment in line with Equinor’s accounting policies. Net income/loss from equity accounted investments is

presented on a separate line as part of Total revenues and other income, as investments in and participation with significant influence

in other companies engaged in energy-related business activities is considered to be part of Equinor’s main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the activity constitutes a business,

are accounted for in accordance with the requirements applicable to business combinations. Please refer to note 6 Acquisitions and

disposals for more details on acquisitions.

Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These costs are allocated on an hours’

incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside

the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are

reimbursed and only Equinor's share of the statement of income and balance sheet items related to Equinor-operated joint operations

and similar arrangements are reflected in the Consolidated statement of income and the Consolidated balance sheet.

-----------------------------------------------------------------------------------------------------------------------------

Joint ventures and other equity accounted investments

(in USD million)

2023

2022

Net investments at 1 January

2,758

2,686

Net income/(loss) from equity accounted investments

(1)

620

Impairment

1)

(363)

(832)

Acquisitions and increase in capital

926

337

Dividend and other distributions

(286)

(210)

Other comprehensive income/(loss)

(10)

384

Divestments, derecognition and decrease in paid in capital

2)

(517)

(22)

Other

0

(205)

Net investments at 31 December

2,507

2,758

Mainly related to Renewable offshore wind industry in US, see also note 14 Impairments.

2)

 Mainly related to change in accounting treatment for Bandurria Sur (accounted for by proportionally consolidation from 1

st

 of April

2023).

Equity accounted investments consist of several investments, none above USD

0.5

 billion. None of the investments are significant on

an individual basis. Voting rights correspond to ownership share.

XML

Financial investments and financial receivables

12 Months Ended

Dec. 31, 2023

Financial investments and financial receivables [Abstract]

Financial investments and financial receivables

16 Financial investments and financial receivables

Non-current financial investments

At 31 December

(in USD million)

2023

2022

Bonds

1,863

1,448

Listed equity securities

1,035

794

Non-listed equity securities

543

491

Financial investments

3,441

2,733

Bonds and equity securities mainly relate to investment portfolios held by Equinor’s captive insurance company and other listed and

non-listed equities held for long-term strategic purposes, mainly accounted for using fair value through profit or loss.

Non-current prepayments and financial receivables

At 31 December

(in USD million)

2023

2022

Interest-bearing financial receivables 

341

1,658

Other interest-bearing receivables

40

66

Prepayments and other non-interest-bearing receivables

910

339

Prepayments and financial receivables

1,291

2,063

Prepayments and other non-interest-bearing receivables mainly relate to commodity sales contracts with customers and lease

prepayments. Interest-bearing financial receivables primarily relate to loans to employees and project financing of equity accounted

companies. Other interest-bearing receivables primarily relate to financial sublease and tax receivables.

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,846

12,373

Interest-bearing securities

11,378

17,504

Financial investments

29,224

29,876

At 31 December 2023, current financial investments

include USD

458

 million in investment portfolios held by Equinor’s captive

insurance company which mainly are accounted for using fair value through profit or loss. The corresponding balance at 31 December

2022 was USD

410

 million.

For information about financial instruments by category, see note 28

Financial instruments and fair value measurement

.

XML

Inventories

12 Months Ended

Dec. 31, 2023

Inventories [Abstract]

Inventories

17 Inventories

Accounting policies

Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable value. Cost is determined by the

first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing expenses.

Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with subsequent changes in fair

value recognised in the Consolidated statement of income as part of Revenues. These inventories are categorised within level 2 of the

fair value hierarchy.

At 31 December

(in USD million)

2023

2022

Crude oil

2,051

2,115

Petroleum products

380

451

Natural gas

54

127

Commodity inventories at the lower of cost and net realisable value

2,485

2,693

Natural gas held for trading purposes measured at fair value

810

1,994

Other

520

517

Total inventories

3,814

5,205

Inventories held for trading purposes consist of natural gas storages held by Danske Commodities.

XML

Trade and other receivables

12 Months Ended

Dec. 31, 2023

Trade and other receivables [Abstract]

Trade and other receivables

18 Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables from contracts with customers

1)

10,706

15,213

Other current receivables

1,774

992

Collateral receivables

2)

2,186

3,468

Receivables from participation in joint operations and similar arrangements

471

661

Receivables from equity accounted associated companies and other related parties

1,056

1,276

Total financial trade and other receivables

16,193

21,611

Non-financial trade and other receivables

740

841

Trade and other receivables

16,933

22,452

1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses.

2) Mainly related to cash paid as security for a portion of Equinor's credit exposure.

For more information about the credit quality of Equinor's counterparties, see note 4 Financial risk and capital management. For

currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on receivables from

equity accounted associated companies and other related parties, see note 27 Related parties.

XML

Cash and cash equivalents

12 Months Ended

Dec. 31, 2023

Cash and cash equivalents [Abstract]

Cash and cash equivalents

19 Cash and cash equivalents

Accounting policies

Cash and cash equivalents are accounted for at amortised cost and include cash in hand, bank deposits, and short-term highly liquid

investments with original maturity of three months or less which are readily convertible to known amounts of cash and subject to

insignificant risk of changes in fair value. Contractually mandatory deposits in escrow bank accounts are included as restricted cash

and cash equivalents if the deposits are provided as part of the Group’s operating activities and therefore are deemed as held for the

purpose of meeting short

‑

term cash commitments, and the deposits can be released from the escrow account without undue

expenses.

At 31 December

(in USD million)

2023

2022

Cash at bank available

2,295

2,220

Time deposits

1,337

836

Money market funds

1,875

3,106

Interest-bearing securities

2,563

3,276

Restricted cash and cash equivalents, including collateral deposits

1,572

6,140

Cash and cash equivalents

9,641

15,579

Restricted cash and cash equivalents at 31 December 2023 includes collateral deposits of USD

1,572

 million related to trading

activities. Correspondingly, collateral deposits at 31 December 2022 were USD

6,128

 million. Collateral deposits are related to certain

requirements of exchanges where Equinor is trading. The terms and conditions related to these requirements are determined by the

respective exchanges.

XML

Shareholders' equity, capital distribution and earnings per share

12 Months Ended

Dec. 31, 2023

Shareholders' equity, capital distribution and earnings per share [Abstract]

Shareholders' equity, capital distribution and earnings per share

20 Shareholders' equity, capital distribution and earnings per share

Number of

shares

NOK per value

NOK

USD

Share capital at 1 January 2023

3,175,470,159

2.50

7,938,675,397.50

1,142,036,265

Capital reduction

(172,365,554)

2.50

(430,913,885.00)

(41,519,325)

Share capital at 31 December 2023

3,003,104,605

2.50

7,507,761,512.50

1,100,516,940

Number of

shares

NOK per value

Common Stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares

Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Employees share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

Equinor ASA has only one class of shares and all shares have voting rights. The holders of shares are entitled to receive dividends as

and when declared and are entitled to one vote per share at the annual general meeting of the company.

Dividend

During 2023, dividend for the third and for the fourth quarter of 2022 and dividend for the first and second quarter of 2023 were

settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated balance sheet. The Consolidated

statement of changes in equity shows declared dividend in the period (retained earnings). Dividend declared in 2023 relates to the

fourth quarter of 2022 and to the first three quarters of 2023.

On 6 February 2024, the board of directors proposed to the annual general meeting on 14 May 2024 an ordinary cash dividend for the

fourth quarter of 2023 of USD

0.35

 per share and an extraordinary cash dividend of USD

0.35

 per share. The Equinor share will trade

ex-dividend 15 May 2024 on Oslo Børs and for ADR holders on New York Stock Exchange. Record date will be 16 May 2024 and

payment date will be 28 May 2024.

At 31 December

(in USD million)

2023

2022

Dividends declared

10,783

7,549

USD per share or ADS

3.6000

2.4000

Dividends paid

10,906

5,380

USD per share or ADS

3.6000

1.6800

NOK per share

37.8522

16.4837

Accounting policies

Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme or has placed an irrevocable order with a third

party for Equinor shares to be acquired in the market, such shares are reflected as a reduction in equity as treasury shares. Treasury

shares are not included in the weighted average number of ordinary shares outstanding in the calculation of Earnings per share. The

remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and

provisions.

Share buy-back programme

The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part

of the programme will be cancelled. According to an agreement between Equinor and the Norwegian State, the Norwegian State will

participate in share buy-backs on a proportionate basis, ensuring that its ownership interest in Equinor remains unchanged at

67

%.

On 6 February 2024, the board of directors decided to announce a two-year share buy-back programme for 2024-2025 of USD 10-12

billion in total, with USD 6 billion for 2024. The share buy-back programme will be subject to market outlook and balance sheet

strength.

The first tranche of up to USD 1.2 billion of the 2024 share buy-back programme will commence on 8 February and end no later than

5 April 2024. The first tranche of the 2024 share buy-back programme is based on the authorisation from the annual general meeting

in May 2023, valid until the next annual general meeting, but no later than 30 June 2024. Commencement of new share buy-back

tranches after the first tranche in 2024 will be decided by the board of directors on a quarterly basis in line with the company’s

dividend policy and will be subject to existing and new board authorisations for share buy-back from the company’s annual general

meeting and agreement with the Norwegian State regarding share buy-back.

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Equity impact of share buy-back programmes

(in USD million)

2023

2022

First tranche

330

330

Second tranche

550

440

Third tranche

550

605

Fourth tranche

550

605

Total open market share

1,980

1,980

Norwegian state share

1)

3,705

1,399

Total

5,685

3,380

1) Relates to second to fourth tranche of previous year programme and first tranche of current year programme.

Based on the authorisation from the annual general meeting on 10 May 2023, the Board of directors has, on a quarterly basis,

decided on share buy-back tranches. The 2023 programme was up to USD

6

 billion, including shares to be redeemed from the

Norwegian State.

During 2023, four tranches of in total USD

6

 billion were launched, including shares to be redeemed from the Norwegian State. The

acquisition of the fourth tranche in the open market was finalised in January 2024. As of 31 December 2023, USD

410

 million of the

fourth tranche had been purchased in the open market, of which USD

388

 million had been settled. Due to an irrevocable agreement

with a third party, the remaining order of USD

162

 million is accrued for and classified as Trade, other payables and provisions.

In order to maintain the Norwegian State’s ownership share in Equinor, a proportionate share of the second, third and fourth tranche

of the 2022 programme as well as the first tranche of the 2023 programme was redeemed and annulled after approval by the annual

general meeting on 10 May 2023. The liability to the Norwegian State of USD

3.705

 billion (NOK

39.071

 billion) was settled in June

2023.

Employees share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

In 2023 and 2022 treasury shares were purchased to employees participating in the share saving plan for USD

68

 million and USD

72

million, respectively. For further information, see note 8 Salaries and personnel expenses.

Earnings per share

(in USD million)

2023

2022

Basic earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding

3,021

3,174

Basic earnings per share (in USD)

3.93

9.06

Diluted earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding, diluted

3,027

3,183

Diluted earnings per share (in USD)

3.93

9.03

Basic and diluted earnings per share amounts are calculated by dividing the Net income (loss) for the year attributable to shareholders

by relevant weighted average number of ordinary shares outstanding during the year. Shares purchased to employees participating in

the share saving plan is the only diluting element.

XML

Finance debt

12 Months Ended

Dec. 31, 2023

Finance debt [Abstract]

Finance debt

21 Finance debt

Non-current finance debt

Finance debt measured at amortised cost

Weighted average interest

rates in %

1)

Carrying amount in USD

millions at 31 December

Fair value in USD 

millions at 31 December

2)

2023

2022

2023

2022

2023

2022

Unsecured bonds

United States Dollar (USD)

3.82

3.82

15,705

17,190

15,037

16,167

Euro (EUR)

1.51

1.42

6,633

7,465

6,177

6,782

Great Britain Pound (GBP)

6.08

6.08

1,747

1,652

2,013

1,836

Norwegian Kroner (NOK)

4.18

4.18

295

304

302

311

Total unsecured bonds

24,380

26,612

23,529

25,097

Unsecured loans

Brazilian real (BRL)

10.10

-

179

-

179

-

Japanese Yen (JPY)

4.30

4.30

71

76

83

90

Total unsecured loans

250

76

262

90

Total

24,630

26,688

23,791

25,187

Non-current finance debt due within one year

2,400

2,547

2,415

2,597

Non-current finance debt

22,230

24,141

21,376

22,590

Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December and do

not include the effect of swap agreements.

2)

 Fair values are determined from external calculation models based on market observations from various sources, classified at

level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair

value measurement.

Unsecured bonds amounting to USD

15,705

 million are denominated in USD and unsecured bonds denominated in other currencies

amounting to USD

7,848

 million are swapped into USD. One bond denominated in EUR amounting to USD

827

 million is not

swapped. The table does not include the effects of agreements entered into to swap the various currencies into USD. For further

information see note 28 Financial instruments and fair value measurement.

Substantially all unsecured bonds and unsecured bank loan agreements contain provisions restricting future pledging of assets to

secure borrowings without granting a similar secured status to the existing bondholders and lenders.

No

 new bonds were issued in 2023.

Out of Equinor's total outstanding unsecured bond portfolio,

34

 bond agreements contain provisions allowing Equinor to call the debt

prior to its final redemption at par or at certain specified premiums if there are changes to the Norwegian tax laws. The carrying

amount of these agreements is USD

24,076

 million at the 31 December 2023 closing currency exchange rate.

For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk management,

see note 4 Financial risk and capital management.

Non-current finance debt maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

4,683

4,794

Year 4 and 5

4,511

4,510

After 5 years

13,035

14,837

Total repayment of non-current finance debt

22,230

24,141

Weighted average maturity (years - including current portion)

9

9

Weighted average annual interest rate (% - including current portion)

3.41

3.29

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities

458

1,571

Non-current finance debt due within one year

2,400

2,547

Other including US Commercial paper programme and bank overdraft

3,138

241

Total current finance debt

5,996

4,359

Weighted average interest rate (%)

3.77

2.22

Collateral liabilities and other current liabilities mainly relate to cash received as security for a portion of Equinor's credit exposure and

outstanding amounts on US Commercial paper (CP) programme. Issuance on the CP programme amounted to USD

1,895

 million as

of 

31 December 2023 and USD

227

 million as of 31 December 2022.

Reconciliation of cash flows from financing activities to finance line items in balance sheet 

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2023

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Repayment of finance debt

(2,818)

(2,818)

Repayment of lease liabilities

(1,422)

(1,422)

Dividend paid

(10,906)

(10,906)

Share buy-back

(5,589)

(5,589)

Net current finance debt and other

finance activities

1,385

1,287

(69)

(10)

2,593

Net cash flow from financing activities

(2,818)

1,385

1,287

(5,658)

(10)

(10,906)

(1,422)

(18,142)

Transfer to current portion

147

(147)

Effect of exchange rate changes

321

44

(5)

-

(25)

Dividend declared

10,783

Debt in RIO Energy

437

New leases

1,379

Other changes

2

354

(1)

2,617

19

(36)

(29)

Net other changes

907

251

(6)

2,617

19

10,747

1,325

At 31 December 2023

22,230

5,995

(2,185)

-

10

2,649

3,570

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2022

27,404

5,273

(1,577)

6,408

14

582

3,562

Repayment of finance debt

(250)

(250)

Repayment of lease liabilities

(1,366)

(1,366)

Dividend paid

(5,380)

(5,380)

Share buy-back

(3,315)

(3,315)

Net current finance debt and other

finance activities

-

(2,982)

(2,038)

(73)

(8)

(5,102)

Net cash flow from financing activities

(250)

(2,982)

(2,038)

(3,388)

(8)

(5,380)

(1,366)

(15,414)

Transfer to current portion

(2,297)

2,297

Effect of exchange rate changes

(710)

(78)

145

(3)

(149)

Dividend declared

7,549

New leases

1,644

Other changes

(7)

(151)

21

(2)

57

(24)

Net other changes

(3,014)

2,068

145

21

(5)

7,606

1,471

At 31 December 2022

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Financial receivable collaterals are included in Trade and other receivables in the Consolidated balance sheet. See note 18

Trade and other receivables for more information.

2)

 Other changes in additional paid in capital have been moved to retained earnings. 

3)

 See note 25 Leases for more information.

XML

Pensions

12 Months Ended

Dec. 31, 2023

Pensions [Abstract]

Pensions

22 Pensions

Accounting policies

Equinor has pension plans for employees that either provide a defined pension benefit upon retirement or a pension dependent on

defined contributions and related returns. A portion of the contributions are provided for as notional contributions, for which the liability

increases with a promised notional return, set equal to the actual return of assets invested through the ordinary defined contribution

plan. For defined benefit plans, the benefit to be received by employees generally depends on many factors including length of

service, retirement date and future salary levels.

Equinor's proportionate share of multi-employer defined benefit plans is recognised as liabilities in the Consolidated balance sheet as

sufficient information is considered available, and a reliable estimate of the obligation can be made.

The cost of pension benefit plans is expensed over the period that the employees render services and become eligible to receive

benefits. The calculation is performed by an external actuary. Equinor's net obligation from defined benefit pension plans is calculated

separately for each plan by estimating the amount of future benefit that employees have earned in return for their services in the

current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The recognition of a net surplus for the funded plan is based on the assumption that the net assets represent a future value for

Equinor, either as a possible distribution to premium fund which can be used for future funding of new liabilities, or as disbursement of

equity in the pension fund.

Contributions to defined contribution schemes are recognised in the Consolidated statement of income as pension costs in the period

in which the contribution amounts are earned by the employees.

Notional contribution plans, reported in the parent company Equinor ASA, are recognised as Pension liabilities with the actual value of

the notional contributions and promised return at reporting date. Notional contributions are recognised in the Consolidated statement

of income as periodic pension cost, while changes in fair value of the employees’ notional assets are reflected in the Consolidated

statement of income under Net financial items.

Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor’s operated joint operations (licences)

on an hours’ incurred basis and recognised in the Consolidated statement of income based on the function of the cost.

Pension plans in Equinor

The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans which includes certain

unfunded elements (notional contribution plans).

 In addition, several employees and former employees of the Equinor Group is a

member of certain defined benefit plans. The benefit plan in Equinor ASA was closed in 2015 for new employees and for employees

with more than 15 years to regular retirement age.

Equinor's defined benefit plans are generally based on a minimum of 30 years of

service and 66% of the final salary level, including an assumed benefit from the Norwegian National Insurance Scheme.

 The

Norwegian companies in the group are subject to, and complies with, the requirements of the Norwegian Mandatory Company

Pensions Act.

The defined benefit plans in Norway are managed and financed through Equinor Pensjon (Equinor's pension fund - hereafter Equinor

Pension). Equinor Pension is an independent pension fund that covers the employees in Equinor's Norwegian companies. The

pension fund's assets are kept separate from the company's and group companies' assets. Equinor Pension is supervised by the

Financial Supervisory Authority of Norway ("Finanstilsynet") and is licenced to operate as a pension fund.

Equinor has more than one defined benefit plan, but the disclosure is made in total since the plans are not subject to materially

different risks. Pension plans outside Norway are not material and as such not disclosed separately. In this note pension costs are

presented on a gross basis before allocation to licence partners. In the Consolidated statement of income, the pension costs in

Equinor ASA are presented net of costs allocated to licence partners.

Equinor is also a member of a Norwegian national agreement-based early retirement plan (“AFP”), and the premium is calculated

based on the employees' income but limited to 7.1 times the basic amount in the National Insurance scheme (7.1 G).

 The premium is

payable for all employees until age

62

. Pension from the AFP scheme will be paid from the AFP plan administrator to employees for

their full lifetime.

Net pension cost

Total pension costs amount to USD

441

 million in 2023, USD

458

 million in 2022 and USD

488

 million in 2021. In addition, interest

cost and interest income related to defined benefit plans are included in the Consolidated statement of income within Net financial

items.

Changes in pension liabilities and plan assets during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,664

9,358

Current service cost

145

183

Interest cost

318

105

Actuarial (gains)/losses and currency effects

338

(1,785)

Changes in notional contribution liability and other effects

56

67

Benefits paid

(284)

(258)

Losses/(gains) from curtailment, settlement or plan amendment

91

(5)

Pension liabilities at 31 December

8,328

7,664

Fair value of plan assets at 1 January

5,213

6,404

Interest income

190

116

Return on plan assets (excluding interest income)

202

(622)

Company contributions

211

104

Benefits paid

(141)

(121)

Losses (gains) from curtailment, settlement or plan amendment

113

(5)

Other effects

-

6

Foreign currency translation effects

(124)

(669)

Fair value of plan assets at 31 December

5,664

5,213

Net pension liability at 31 December

2,665

2,452

Represented by:

Asset recognised as non-current pension assets (funded plan)

1,260

1,219

Liability recognised as non-current pension liabilities (unfunded plans)

3,925

3,671

Pension liabilities specified by funded and unfunded pension plans

8,328

7,664

Funded

4,404

3,994

Unfunded

3,925

3,670

Equinor recognised an actuarial loss from changes in financial assumptions in 2023.

No

 changes in interest rate compared to year

end 2022, but other assumptions increased with

50

 basis points. An actuarial gain was recognised in 2022.

Actuarial assumptions

Assumptions used to determine

benefit obligations in %

Rounded to the nearest quartile

2023

2022

Discount rate

3.75

3.75

Rate of compensation increase

4.00

3.50

Expected rate of pension increase

3.25

2.75

Expected increase of social security base amount (G-amount)

3.75

3.25

Weighted-average duration of the defined benefit obligation

13.25

13.50

The assumptions presented are for the Norwegian companies in Equinor which are members of Equinor's pension fund. The defined

benefit plans of other subsidiaries are immaterial to the consolidated pension assets and liabilities.

Sensitivity analysis

The table below presents an estimate of the potential effects of changes in discount rate and expected rate of pension increase for the

defined benefit plans. The following estimates are based on facts and circumstances as of 31 December 2023.

Discount rate

Expected rate of

pension increase

(in USD million)

0.50%

-0.50%

0.50%

-0.50%

Effect on:

Defined benefit obligation at 31 December 2023

(521)

587

494

(451)

The sensitivity of the financial results to each of the key assumptions has been estimated based on the assumption that all other

factors would remain unchanged. The estimated effects on the financial result would differ from those that would actually appear in the

Consolidated financial statements because the Consolidated financial statements would also reflect the relationship between these

assumptions.

Pension assets

The plan assets related to the defined benefit plans were measured at fair value. Equinor Pension invests in both financial assets and

real estate.

The table below presents the portfolio weighting as approved by the board of Equinor Pension for 2023. The portfolio weight during a

year will depend on the risk capacity.

Target portfolio

weight

(in %)

2023

2022

Equity securities

33.6

32.9

30

-

38

Interest bearing investments

61.7

60.5

52

-

65

Real estate

4.7

6.6

5

-

10

Total

100.0

100.0

In 2023,

100

% of the equity securities and

13

% of bonds had quoted market prices in an active market.

87

% of bonds and 100% of

money market instruments had market prices based on inputs other than quoted prices. If quoted market prices are not available, fair

values are determined from external calculation models based on market observations from various sources.

In 2022,

44

% of the equity securities and

3

% of bonds had quoted market prices in an active market.

54

% of the equity securities,

97

% of bonds and 100% of money market instruments had market prices based on inputs other than quoted prices.

For definition of the various levels, see note 28 Financial instruments and fair value measurement.

Estimated company contributions to be made to Equinor Pension in 2024 is approximately USD

109

 million.

XML

Provisions and other liabilities

12 Months Ended

Dec. 31, 2023

Provisions and other liabilities [Abstract]

Provisions and other liabilities

23 Provisions and other liabilities

Accounting policies

Asset retirement obligations (ARO)

Provisions for asset retirement obligations (ARO) are recognised when Equinor has an obligation (legal or constructive) to dismantle

and remove a facility or an item of property, plant and equipment and to restore the site on which it is located, and when a reliable

estimate of that liability can be made. Normally an obligation arises for a new facility, such as an oil and natural gas production or

transportation facility, upon construction or installation. An obligation may also arise during the period of operation of a facility through

a change in legislation or through a decision to terminate operations or be based on commitments associated with Equinor's ongoing

use of pipeline transport systems where removal obligations rest with the volume shippers.

The amount recognised is the present value of the estimated future expenditures determined in accordance with local conditions and

requirements. The cost is estimated based on current regulations and technology, considering relevant risks and uncertainties. The

discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of

the underlying cash flows. The provisions are classified under Provisions in the Consolidated balance sheet.

When a provision for ARO is recognised, a corresponding amount is recognised as an increase of the related asset within property,

plant and equipment and is subsequently depreciated over the useful life of the asset. Any change in the present value of the

estimated expenditure is reflected as an adjustment to the provision and the corresponding adjustment to the carrying value of the

property, plant and equipment. When a decrease in the ARO related to a producing asset exceeds the carrying amount of the asset,

the excess is recognised as a reduction of Depreciation, amortisation and net impairment in the Consolidated statement of income.

When an asset has reached the end of its useful life, all subsequent changes to the ARO are recognised as they occur in Operating

expenses in the Consolidated statement of income.

Removal provisions associated with Equinor's role as shipper of volumes through third party transport systems are expensed as

incurred.

Estimation uncertainty regarding asset retirement obligations

Establishing the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing

technological developments, expectations about future regulatory and technological development and involve the application of

judgement and an inherent risk of significant adjustments. The costs of decommissioning and removal activities require revisions due

to changes in current regulations and technology while considering relevant risks and uncertainties. Most of the removal activities are

many years into the future, and the removal technology and costs are constantly changing. The speed of the transition to renewable

energy sources may also influence the production period, hence the timing of the removal activities. The estimates include

assumptions of norms, rates and time required which can vary considerably depending on the assumed removal complexity.

Moreover, changes in the discount rate and foreign currency exchange rates may impact the estimates significantly. As a result, the

initial recognition of ARO and subsequent adjustments involve the application of significant judgement.

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

Non-current portion at 31 December 2022

11,569

4,064

15,633

Current portion at 31 December 2022 reported as Trade, other payables and

provisions

165

494

659

Provisions and other liabilities at 31 December 2022

11,734

4,558

16,292

New or increased provisions and other liabilities

488

443

931

Change in estimates

845

25

870

Amounts charged against provisions and other liabilities

(126)

(301)

(427)

Effects of change in the discount rate

(276)

13

(263)

Reduction due to divestments

(403)

97

(306)

Accretion expenses

462

76

538

Reclassification, transfer and other

(174)

(1,387)

(1,561)

Foreign currency translation effects

(190)

62

(128)

Provisions and other liabilities at 31 December 2023

12,360

3,586

15,946

Non-current portion at 31 December 2023

12,171

3,133

15,304

Current portion at 31 December 2023 reported as Trade, other payables and

provisions

190

452

642

Equinor's estimated asset retirement obligations (ARO) have increased by USD

626

 million to USD

12,360

 million at 31 December

2023 compared to year-end 2022. Changes in ARO are reflected within Property, plant and equipment and Provisions and other

liabilities in the Consolidated balance sheet.

In certain production sharing agreements (PSA), Equinor’s estimated share of asset retirement obligation (ARO) is paid into an escrow

account over the producing life of the field. These payments are considered down-payments of the liabilities and included in the line

item Amounts charged against provisions and other liabilities.

Claims and litigations mainly relate to expected payments for unresolved claims. The timing and amounts of potential settlements in

respect of these claims are uncertain and dependent on various factors that are outside management's control. For further information

on provisions and contingent liabilities, see note 26 Other commitments, contingent liabilities and contingent assets. 

The timing of cash outflows of asset retirement obligations depends on the expected cease of production at the various facilities.

Line item Reclassification, transfer and other includes USD

1,388

 million related to SDFI liability. See note 27 Related parties for

further details.

Sensitivities with regards to discount rate on the total ARO portfolio

The discount rate sensitivity has been calculated by assuming a reasonably possible change of

1.3

 percentage points.

An increase in the discount rate of

1.3

 percentage points would reduce the ARO liability by USD

1,994

 million. A corresponding

reduction would increase the liability by USD

2,507

 million. See note 3 Climate change and energy transition for sensitivity with

regards to change in the removal year.

Expected timing of cash outflows

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

2024 - 2028

1,512

2,580

4,092

2029 - 2033

997

342

1,339

2034 - 2038

2,605

134

2,739

2039 - 2043

4,610

(42)

4,568

Thereafter

2,636

572

3,208

At 31 December 2023

12,360

3,586

15,946

XML

Trade, other payables and provisions

12 Months Ended

Dec. 31, 2023

Trade, other payables and provisions [Abstract]

Trade, other payables and provisions

24 Trade, other payables and provisions

At 31 December

(in USD million)

2023

2022

Trade payables

5,317

6,207

Non-trade payables and accrued expenses

2,210

2,688

Payables due to participation in joint operations and similar arrangements

2,283

2,074

Payables to equity accounted associated companies and other related parties

1,242

1,479

Total financial trade and other payables

11,052

12,449

Current portion of provisions and other non-financial payables

819

903

Trade, other payables and provisions

11,870

13,352

Included in Current portion of provisions and other non-financial payables are certain provisions that are further described in note 23

Provisions and other liabilities and in note 26 Other commitments, contingent liabilities and contingent assets. For information

regarding currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information on payables to

equity accounted associated companies and other related parties, see note 27 Related parties.

XML

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

25 Leases

Accounting policies

Leases

A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for

consideration. At the date at which the underlying asset is made available for Equinor, the present value of future lease payments

(including extension options considered reasonably certain to be exercised) is recognised as a lease liability. The present value is

calculated using Equinor’s incremental borrowing rate. A corresponding right-of-use (RoU) asset is recognised, including lease

payments and direct costs incurred at the commencement date. Lease payments are reflected as interest expense and a reduction of

lease liabilities. The RoU assets are depreciated over the shorter of each contract’s term and the assets’ useful life.

Short term leases (12 months or less) and leases of low value assets are expensed or (if appropriate) capitalised as incurred,

depending on the activity in which the leased asset is used.

Many of Equinor’s lease contracts, such as rig and vessel leases, involve several additional services and components, including

personnel cost, maintenance, drilling related activities, and other items. For a number of these contracts, the additional services

represent a not inconsiderable portion of the total contract value. Non-lease components within lease contracts are accounted for

separately for all underlying classes of assets and reflected in the relevant expense category or (if appropriate) capitalised as

incurred, depending on the activity involved.

Accounting judgement regarding leases

In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar arrangements, the application

of IFRS 16 Leases requires evaluations of whether the joint arrangement or its operator is the lessee in each lease agreement and

consequently whether such contracts should be reflected gross (100%) in the operator’s financial statements, or according to each

joint operation partner’s proportionate share of the lease.

In many cases where an operator is the sole signatory to a lease contract of an asset to be used in the activities of a specific joint

operation, the operator does so implicitly or explicitly on behalf of the joint arrangement. In certain jurisdictions, and importantly for

Equinor as this includes the Norwegian continental shelf (NCS), the concessions granted by the authorities establish both a right and

an obligation for the operator to enter into necessary agreements in the name of the joint operations (licences).

As is the customary norm in upstream activities operated through joint arrangements, the operator will manage the lease, pay the

lessor, and subsequently re-bill the partners for their share of the lease costs. In each such instance, it is necessary to determine

whether the operator is the sole lessee in the external lease arrangement, and if so, whether the billings to partners may represent

sub-leases, or whether it is in fact the joint arrangement which is the lessee, with each participant accounting for its proportionate

share of the lease. Where all partners in a licence are considered to share the primary responsibility for lease payments under a

contract, Equinor’s proportionate share of the related lease liability and RoU asset will be recognised net by Equinor. When Equinor is

considered to have the primary responsibility for the full external lease payments, the lease liability is recognised gross (100%).

Equinor leases certain assets, notably drilling rigs, transportation vessels, storages and office facilities for operational activities.

Equinor is mostly a lessee, and the use of leases serves operational purposes rather than as a tool for financing.

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

95

Lease repayments 

(1,451)

(1,451)

(1,389)

(1,389)

Foreign currency translation effects

(25)

(149)

Lease liabilities at 31 December

3,570

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

Equinor recognised revenues of USD

337

 million in 2023 and USD

319

 million in 2022 related to lease costs recovered from licence

partners related to lease contracts being recognised gross by Equinor.

Commitments relating to lease contracts which had not yet commenced at year-end are included within Other commitments in note 

26 Other commitments, contingent liabilities and contingent assets.

A maturity profile based on undiscounted contractual cash flows for lease liabilities is disclosed in note 4 Financial risk and capital

management.

Non-current lease liabilities maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

1,342

1,360

Year 4 and 5

470

483

After 5 years

478

566

Total repayment of non-current lease liabilities

2,291

2,409

The Right of use assets are included within the line item Property, plant and equipment in the Consolidated balance sheet. See also

note 12 Property, plant and equipment.

XML

Other commitments, contingent liabilities and contingent assets

12 Months Ended

Dec. 31, 2023

Oher commitments, contingent liabilities and contingent assets [Abstract]

Oher commitments, contingent liabilities and contingent assets

26 Other commitments, contingent liabilities and contingent assets

Accounting policies

Estimation uncertainty regarding levies

Equinor’s global business activities are subject to taxation on income and indirect taxes in various jurisdictions around the

world. In these jurisdictions, governments can respond to global or local development, including climate related matters and

public fiscal balances, by issuing new laws or other regulations stipulating changes in income tax, value added tax, tax on

emissions, customs duties or other levies which may affect profitability and even the viability of Equinor’s business in that

jurisdiction. Equinor mitigates this risk by using local legal representatives and staying up to date with the legislation in the

jurisdictions where activities are carried out. Occasionally, legal disputes arise from difference in interpretations. Equinor’s

legal department, together with local legal representatives, estimate the outcome from such legal disputes based on first-hand

knowledge. Such estimates may differ from the actual results.

Contractual commitments

Equinor had contractual commitments of USD

11,259

 million as of 31 December 2023. The contractual commitments reflect Equinor's

proportional share and mainly comprise construction and acquisition of property, plant and equipment as well as committed

investments/funding or resources in equity accounted entities. It also includes Equinors’ estimated expenditures related to

commitments to drill a certain number of wells, commitments which sometimes can be a prerequisite to be awarded oil and gas

exploration and production licences.

At the end of 2023, Equinor was committed to participate in

34

 wells, with an average ownership interest of approximately

46

%.

Equinor's share of estimated expenditures to drill these wells amounts to USD

609

 million. Additional wells that Equinor may become

committed to participating in depending on future discoveries in certain licences are not included in these numbers.

Other long-term commitments

Equinor has entered into various long-term agreements for pipeline transportation as well as terminal use, processing, storage and

entry/exit capacity commitments and commitments related to specific purchase agreements. The agreements ensure the rights to the

capacity or volumes in question, but also impose on Equinor the obligation to pay for the agreed-upon service or commodity,

irrespective of actual use. The contracts' terms vary, with durations of up to

2060

.

Take-or-pay contracts for the purchase of commodity quantities are only included in the table below if their contractually agreed

pricing is of a nature that will or may deviate from the obtainable market prices for the commodity at the time of delivery.

Obligations payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below

with Equinor’s full proportionate share. For assets (such as pipelines) that are included in the Equinor accounts through joint

operations or similar arrangements, and where consequently Equinor’s share of assets, liabilities, income and expenses (capacity

costs) are reflected on a line-by-line basis in the Consolidated financial statements, the amounts in the table include the net

commitment payable by Equinor (i.e. Equinor’s proportionate share of the commitment less Equinor's ownership share in the

applicable entity).

The table below also includes USD

3,600

 million as the non-lease components of lease agreements reflected in the accounts

according to IFRS 16, as well as leases not yet commenced. For commenced leases, please refer to note 25 Leases.

Nominal minimum other long-term commitments at 31 December 2023:

(in USD million)

2024

2,659

2025

1,972

2026

1,615

2027

1,187

2028

1,010

Thereafter

6,775

Total other long-term commitments

15,218

Guarantees

Equinor has guaranteed for its proportionate share of some of our associates’ long-term bank debt, payment obligations under

contracts, and certain third-party obligations. The total amount guaranteed at year-end 2023 is USD

1,564

 million. The book value of

the guarantees is immaterial.

Contingent liabilities and contingent assets

Claim from Petrofac regarding multiple variation order requests performed in Algeria (In Salah)

Petrofac International (UAE) LLC (“PIUL”) was awarded the EPC Contract to execute the ISSF Project (the In Salah Southern Fields

Project in central Algeria). Following a suspension of activity in 2013, PIUL issued multiple Variation Order Requests (“VoRs”) related

to the costs incurred for stand-by and remobilization costs. Several VoRs have been paid, but the settlement of the remaining has

been unsuccessful. PIUL initiated arbitration in August 2020 claiming an estimated amount of USD

533

 million, of which Equinor holds

a

31.85

% share. Equinor's maximum exposure amounts to USD

163

 million. Equinor has provided for its best estimate in the matter.

Withholding tax dispute regarding remittances from Brazil to Norway

Remittances made from Brazil for services are normally subject to withholding income tax. In 2012, Equinor’s subsidiaries in Brazil

filed a lawsuit to avoid paying this tax on remittances made to Equinor ASA and Equinor Energy AS under the Double Tax Treaty

Brazil has with Norway. The lawsuit relates to services without transfer of technology on fields where Equinor is a partner. Court

proceedings through several levels in the legal system have been ongoing, and a final verdict has not yet been reached. Withholding

tax has not been paid since 2014. Equinor's share of maximum exposure in the case at year end 2023 is estimated at approximately

USD

159

 million. Although Equinor continues to be of the view that all applicable tax regulations have been applied in the case, recent

developments in similar litigation in Brazil have led to an updated evaluation of the likelihood of loss, and Equinor has provided for the

best estimate in the case as income tax expense.

Suit for an annulment of Petrobras’ sale of the interest in BM-S-8 to Equinor

In March 2017, an individual connected to the Union of Oil Workers of Sergipe (Sindipetro) filed a class action suit against Petrobras,

Equinor, and ANP - the Brazilian Regulatory Agency - to seek annulment of Petrobras’ sale of the interest and operatorship in BM-S-8

to Equinor, which was closed in November 2016 after approval by the partners and authorities. In February 2022, sentence in the

annulment case was issued at the first instance level, and Equinor won on all merits. The case was appealed by the plaintiff and

Equinor has filed counter arguments. At the end of 2023, the acquired interest remains on Equinor’s balance sheet, where the assets

related to phase 1 have been reclassified to property, plant and equipment and the assets related to phase 2 are presented as

intangible assets, all of which are part of the Exploration & Production International (E&P International) segment.

Brazilian law creating uncertainty regarding certain tax incentives

Equinor is currently part in two legal matters in the state of Rio de Janeiro in Brazil related to a law requiring taxpayers that benefits

from ICMS tax incentives (i.e. Repetro) to deposit

10

% of the savings made from such benefits into a state fund. Equinor is of the

opinion that specific incentives so far relevant for the Roncador and Peregrino fields are not in scope of the law, while the state of Rio

de Janeiro requires deposits to be paid with the addition of fines and interest. While legal developments in 2023 have included

clarification from the Supreme Court that the law is constitutional, subject to a final ruling, Equinor’s litigation in the matter continues,

mainly related to the law’s impact specifically for Repetro and other state tax incentives. Equinor believes that our view in the matter

will ultimately be upheld by the courts, and no amounts have consequently been provided for in the financial statements. At year-end

2023, the maximum exposure for Equinor in the matter has been estimated to be a total of USD

114

 million.

KKD oil sands partnership

Canadian tax authorities have issued a notice of reassessment for 2014 for Equinor's Canadian subsidiary which was party to

Equinor's divestment of

40

% of the KKD Oil Sands partnership at that time. The reassessment adjusts the allocation of the proceeds

of disposition of certain Canadian resource properties from the partnership. Maximum exposure is estimated to be approximately USD

380

 million. Following an administrative appeal process with Canadian tax authorities, Equinor commenced court proceedings in the

matter in 2023. While the court process may take several years, the reassessment will impact Equinor’s tax paying position while the

proceedings are ongoing. Equinor is of the view that all applicable tax regulations have been applied in the case and that Equinor has

a strong position. No amounts have consequently been provided for in the financial statements.

Other claims

During the normal course of its business, Equinor is involved in legal proceedings, and several other unresolved claims are currently

outstanding. The ultimate liability or asset, in respect of such litigation and claims cannot be determined at this time. Equinor has

provided in its Consolidated financial statements for probable liabilities related to litigation and claims based on its best estimate.

Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of

these legal proceedings. Equinor is actively pursuing the above disputes through the contractual and legal means available in each

case, but the timing of the ultimate resolutions and related cash flows, if any, cannot at present be determined with sufficient reliability.

Provisions related to claims other than those related to income tax are reflected within note 23 Provisions and other liabilities.

Uncertain income tax related liabilities are reflected as current tax payables or deferred tax liabilities as appropriate, while uncertain

tax assets are reflected as current or deferred tax assets.

XML

Related parties

12 Months Ended

Dec. 31, 2023

Related parties [Abstract]

Related parties

27 Related parties

Transactions with the Norwegian State

The Norwegian State is the majority shareholder of Equinor and also holds major investments in other Norwegian companies. As of 

31 December 2023, the Norwegian State had an ownership interest in Equinor of

67.0

% (excluding Folketrygdfondet, the Norwegian

national insurance fund, of

3.6

%). This ownership structure means that Equinor participates in transactions with many parties that are

under a common ownership structure and therefore meet the definition of a related party.

For accounting policies and accounting judgement related to transactions with the Norwegian State, see note 7 Total revenues and

other income. Total purchases of oil and natural gas liquids from the Norwegian State amounted to USD

10.1

 billion, USD

12.6

 billion

and USD

9.6

 billion in 2023, 2022 and 2021, respectively. Payables to equity accounted associated companies and other related

parties specified in note 24 Trade and other payables are mostly related to these purchases, and is included in the below table within

Trade, other payables and provisions. In addition, Equinor sells in its own name, but for the Norwegian State’s account and risk, the

Norwegian State’s gas production.

Trade and other receivables include a receivable from the Norwegian State under the Marketing Instruction in relation to the state’s

(SDFI) participation in the gas sales activities of a foreign subsidiary of Equinor, estimated at USD

0.1

 billion. At year-end 2022, the

corresponding estimated amount of USD

1.5

 billion was classified as a non-current item and included within Prepayments and

financial receivables. The decrease is mainly related to reduced cost price for gas storage volume and realised gains in the period. A

corresponding non-current liability of USD

0.1

 billion has been recognised, representing SDFI's estimated interest in the gas sales

activities in the foreign subsidiary, and is included within Provisions and other liabilities in the below table. The estimated total non-

current liabilities to SDFI amount to USD

0.8

 billion at 31 December 2023 (USD

2.1

 billion at year end 2022).

In addition, the line-item Finance debt, which form part of the sub-total Total current liabilities, includes a liability of USD

0.9

 billion to

SDFI due to cash received for collateral deposits requirement (

0

 at year end 2022).

Transactions with the Norwegian State related to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity,

capital distribution and earnings per share.

Other transactions

In its ordinary business operations, Equinor enters into contracts such as pipeline transport, gas storage and processing of petroleum

products, with companies in which Equinor has ownership interests.

Gassled and certain other infrastructure assets are operated by Gassco AS, which is an entity under common control by the

Norwegian Ministry of Energy. Gassco’s activities are performed on behalf of and for the risk and reward of pipeline and terminal

owners, and capacity payments flow through Gassco to the respective owners. Equinor payments that flowed through Gassco in this

respect amounted to USD

1.0

 billion in 2023, USD

1.2

 billion and USD

1.0

 billion in 2022 and 2021 respectively. The stated amounts

represent Equinor’s capacity payment net of Equinor’s own ownership interests in Gassco operated infrastructure. In addition, Equinor

manages, in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s share of the Gassco costs. These

transactions are presented net.

Equinor has had transactions with other associated companies and joint ventures in the course of its ordinary business, for which

amounts have not been disclosed due to materiality. In addition, Equinor has had transactions with joint operations and similar

arrangements where Equinor is operator. Indirect operating expenses incurred as operator are charged to the joint operation or similar

arrangement based on the “no-gain/no-loss” principle.

Related party transactions with management are presented in note 8 Salaries and personnel expenses. Related party transactions

due to Equinor’s share buy-back programme are presented in note 20 Shareholders’ equity, capital distribution and earnings per

share. Outstanding balances to related parties split on SDFI and other related parties are presented in the below table. All related

party transactions are carried out on market terms.

At 31 December 2023

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

-

103

1,188

1,291

Trade and other receivables

1,007

49

15,877

16,933

Liabilities

Non-current provisions and other liabilities

850

-

14,454

15,304

Trade, other payables and provisions

1,195

47

10,628

11,870

Current finance debt 

893

-

5,103

5,996

At 31 December 2022

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

1,461

61

541

2,063

Trade and other receivables

1,103

173

21,176

22,452

Liabilities

Non-current provisions and other liabilities

2,072

-

13,561

15,633

Trade, other payables and provisions

1,419

60

11,873

13,352

Current finance debt 

-

-

4,359

4,359

XML

Financial instruments and fair value measurement

12 Months Ended

Dec. 31, 2023

Financial instruments and fair value measurement [Abstract]

Financial instruments and fair value measurement

28 Financial instruments and fair value measurement

Accounting policies

Financial assets

Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset.

Short-term highly liquid investments with original maturity exceeding 3 months are classified as current financial investments. Current

financial investments are primarily accounted for at amortised cost.

Trade receivables are carried at the original invoice amount less a provision for doubtful receivables which represent expected losses

computed on a probability-weighted basis.

A part of Equinor's financial investments is managed together as an investment portfolio of Equinor's captive insurance company and

is held in order to comply with specific regulations for capital retention. The investment portfolio is managed and evaluated on a fair

value basis in accordance with an investment strategy and is accounted for at fair value through profit or loss.

Financial assets are presented as current if they contractually will expire or otherwise are expected to be recovered within 12 months

after the balance sheet date, or if they are held for the purpose of being traded. Financial assets and financial liabilities are shown

separately in the Consolidated balance sheet, unless Equinor has both a legal right and a demonstrable intention to net settle certain

balances payable to and receivable from the same counterparty.

Gains and losses arising on the sale, settlement or cancellation of financial assets are recognised within Net financial items.

Financial liabilities

Financial liabilities are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the liability. The

subsequent measurement of financial liabilities is either as financial liabilities at fair value through profit or loss or financial liabilities

measured at amortised cost using the effective interest method, depending on classification. The latter applies to Equinor's non-

current bank loans and bonds.

Financial liabilities are presented as current if the liability is expected to be settled as part of Equinor’s normal operating cycle, the

liability is due to be settled within 12 months after the balance sheet date, Equinor does not have the right to defer settlement of the

liability more than 12 months after the balance sheet date, or if the liabilities are held for the purpose of being traded.

Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised within Net financial items.

Derivative financial instruments

Equinor uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates, interest

rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a

derivative contract is entered into and are subsequently remeasured at fair value through profit and loss. The impact of commodity-

based derivative financial instruments is recognised in the Consolidated statement of income as part of Revenues, as such derivative

instruments are related to sales contracts or revenue-related risk management for all significant purposes. The impact of other

derivative financial instruments is reflected under Net financial items.

Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivative assets or

liabilities expected to be settled, or with the legal right to be settled more than 12 months after the balance sheet date, are classified

as non-current. Derivative financial instruments held for the purpose of being traded are however always classified as current.

Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument are accounted for as

financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a

non-financial item in accordance with Equinor's expected purchase, sale or usage requirements, also referred to as own-use, are not

accounted for as financial instruments. Such sales and purchases of physical commodity volumes and power are reflected in the

Consolidated statement of income as Revenue from contracts with customers and Purchases [net of inventory variation], respectively.

This is applicable to a significant number of contracts for the purchase or sale of crude oil and natural gas, as well as for some

contracts for the purchase or sale of power.

For contracts to sell a non-financial item that can be settled net in cash, but which ultimately are physically settled despite not

qualifying as own use prior to settlement, the changes in fair value are included in Gain/loss on commodity derivatives. When these

derivatives are physically settled, the previously recognised unrealised gain/loss is included in Physically settled commodity

derivatives. Both these elements are included as part of Revenues. The physical deliveries made through such contracts are included

in Revenue from contracts with customers at contract price.

Derivatives embedded in host contracts which are not financial assets within the scope of IFRS 9 are recognised as separate

derivatives and are reflected at fair value with subsequent changes through profit and loss, when their risks and economic

characteristics are not closely related to those of the host contracts, and the host contracts are not carried at fair value. Where there is

an active market for a commodity or other non-financial item referenced in a purchase or sale contract, a pricing formula will, for

instance, be considered to be closely related to the host purchase or sales contract if the price formula is based on the active market

in question. A price formula with indexation to other markets or products will however result in the recognition of a separate derivative.

In Equinor, this mainly relates to certain natural gas sales contracts where the pricing formula references power.

Financial instruments by category

The following tables present Equinor's classes of financial instruments and their carrying amounts by the categories as they are

defined in IFRS 9 Financial Instruments. For financial investments, the difference between measurement as defined by IFRS 9

categories and measurement at fair value is immaterial. For trade and other receivables and payables, and cash and cash

equivalents, the carrying amounts are considered a reasonable approximation of fair value. See note 21 Finance

debt for fair value

information of non-current bonds and bank loans.

At 31 December 2023

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

559

559

Non-current financial investments

16

75

3,366

3,441

Prepayments and financial receivables

16

341

950

1,291

Trade and other receivables

18

16,193

740

16,933

Current derivative financial instruments

1,378

1,378

Current financial investments

16

28,822

402

29,224

Cash and cash equivalents

19

7,767

1,875

9,641

Total 

53,198

7,580

1,690

62,467

At 31 December 2022

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

691

691

Non-current financial investments

16

117

2,616

2,733

Prepayments and financial receivables

16

1,658

404

2,063

Trade and other receivables

18

21,611

841

22,452

Current derivative financial instruments

4,039

4,039

Current financial investments

16

29,577

300

29,876

Cash and cash equivalents

19

12,473

3,106

15,579

Total 

65,436

10,752

1,245

77,433

At 31 December 2023

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

22,230

22,230

Non-current derivative financial instruments

1,795

1,795

Trade, other payables and provisions

24

11,052

819

11,870

Current finance debt

21

5,996

5,996

Dividend payable

2,649

2,649

Current derivative financial instruments

1,619

1,619

Total 

41,927

3,414

819

46,159

At 31 December 2022

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

24,141

24,141

Non-current derivative financial instruments

2,376

2,376

Trade, other payables and provisions

24

12,449

903

13,352

Current finance debt

21

4,359

4,359

Dividend payable

2,808

2,808

Current derivative financial instruments

4,106

4,106

Total 

43,757

6,482

903

51,142

Measurement of fair values

Quoted prices in active markets represent the best evidence of fair value and are used by Equinor in determining the fair values of

assets and liabilities to the extent possible. Financial instruments quoted in active markets will typically include financial instruments

with quoted market prices obtained from the relevant exchanges or clearing houses. The fair values of quoted financial assets,

financial liabilities and derivative instruments are determined by reference to mid-market prices, at the close of business on the

balance sheet date.

Where there is no active market, fair value is determined using valuation techniques. These include using recent arm's-length market

transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and pricing models and

related internal assumptions. In the valuation techniques, Equinor also takes into consideration the counterparty and its own credit

risk. This is either reflected in the discount rate used or through direct adjustments to the calculated cash flows. Consequently, where

Equinor reflects elements of long-term physical delivery commodity contracts at fair value, such fair value estimates to the extent

possible are based on quoted forward prices in the market and underlying indexes in the contracts, as well as assumptions of forward

prices and margins where observable market prices are not available. Similarly, the fair values of interest and currency swaps are

estimated based on relevant quotes from active markets, quotes of comparable instruments, and other appropriate valuation

techniques.

Fair value hierarchy

The following table summarises each class of financial instruments which are recognised in the Consolidated balance sheet at fair

value, split by Equinor's basis for fair value measurement.

(in USD million)

Non-current

financial

investments

Non-current

derivative

financial

instruments

- assets

Current

financial

investments

Current

derivative

financial

instruments

- assets

Cash

equivalents

Non-current

derivative

financial

instruments

- liabilities

Current

derivative

financial

instruments

- liabilities

Net fair

value

At 31 December 2023

Level 1

1,294

0

-

6

0

-

1,300

Level 2

1,528

104

402

1,195

1,875

(1,754)

(1,577)

1,773

Level 3

543

455

177

(42)

(41)

1,092

Total fair value

3,366

559

402

1,378

1,875

(1,795)

(1,619)

4,166

At 31 December 2022

Level 1

903

-

-

25

-

(60)

868

Level 2

1,222

97

300

3,722

3,106

(2,352)

(3,952)

2,143

Level 3

491

594

292

(24)

(94)

1,259

Total fair value

2,616

691

300

4,039

3,106

(2,376)

(4,106)

4,270

Level 1, fair value based on prices quoted in an active market for identical assets or liabilities, includes financial instruments actively

traded and for which the values recognized in the Consolidated balance sheet are determined based on observable prices on identical

instruments. For Equinor this category will, in most cases, only be relevant for investments in listed equity securities and government

bonds.

Level 2, fair value based on inputs other than quoted prices included within level 1, which are derived from observable market

transactions, includes Equinor's non-standardised contracts for which fair values are determined on the basis of price inputs from

observable market transactions. This will typically be when Equinor uses forward prices on crude oil, natural gas, interest rates and

foreign currency exchange rates as inputs to the valuation models to determine the fair value of it derivative financial instruments.

Level 3, fair value based on unobservable inputs, includes financial instruments for which fair values are determined on the basis of

input and assumptions that are not from observable market transactions. The fair values presented in this category are mainly based

on internal assumptions. The internal assumptions are only used in the absence of quoted prices from an active market or other

observable price inputs for the financial instruments subject to the valuation.

The fair value of certain earn-out agreements and embedded derivative contracts are determined by the use of valuation techniques

with price inputs from observable market transactions as well as internally generated price assumptions and volume profiles. The

discount rate used in the valuation is a risk-free rate based on the applicable currency and time horizon of the underlying cash flows

adjusted for a credit premium to reflect either Equinor's credit premium, if the value is a liability, or an estimated counterparty credit

premium if the value is an asset. In addition, a risk premium for risk elements not adjusted for in the cash flow may be included when

applicable. The fair values of these derivative financial instruments have been classified in their entirety in the third category within

current derivative financial instruments and non-current derivative financial instruments. Another reasonable assumption, that could

have been applied when determining the fair value of these contracts, would be to extrapolate the last observable forward prices with

inflation. If Equinor had applied this assumption, the fair value of the contracts included would have increased by approximately USD

0.3

 billion at end of 2023, while at end of 2022 the increase in fair value was approximately USD

0.5

 billion.

During 2023 the financial instruments within level 3 have had a net decrease in fair value of USD

167

 million, of which a loss of USD

191

 million was recognised in the Consolidated statement of income, mainly due to changes in fair value of certain embedded

derivatives and earn-out agreements. During 2022, the same financial instruments had a net increase in fair value of USD

416

 million,

of which a gain of USD

370

 million was recognised in the Consolidated statement of income.

XML

Subsequent events

12 Months Ended

Dec. 31, 2023

Subsequent events [Abstract]

Subsequent events

29 Subsequent events

Swap of US Offshore Wind assets

In January 2024, Equinor entered into a swap agreement with bp. Equinor will acquire bp’s

50

% share and take full ownership of

Empire Offshore Wind Holdings LLC, including the Empire Wind lease and projects, while bp will acquire Equinor’s

50

% share and

take full ownership of Beacon Wind Holdings LLC, including the Beacon Wind lease and projects. It is anticipated that Equinor will

consolidate Empire Wind and derecognise its

50

% share of Beacon Wind in the first quarter of 2024. Equinor will also acquire bp's

50

% interest in the South Brooklyn Marine Terminal (SBMT) lease. The transaction, pending regulatory approvals, is anticipated to be

cash neutral, with the exception of standard cash and working capital settlements and will be recognised in the REN segment.

XML

Significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting policies [Abstract]

Statement of compliance

Statement of compliance

The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with IFRS

Accounting Standards as adopted by the European Union (EU) and with IFRS Accounting Standards as issued by the International

Accounting Standards Board (IASB), IFRIC® Interpretations issued by IASB and the additional requirements of the Norwegian

Accounting Act, effective on 31 December 2023.

Basis of preparation

Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement

is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting

policies described in these Consolidated financial statements have been applied consistently to all periods presented.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in

the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some

of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

The line items included in Total operating expenses in the Consolidated statement of income are presented as a combination of

function and nature in conformity with industry practice. Purchases [net of inventory variation] and Depreciation, amortisation and net

impairments are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative

expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc.

are presented by their nature in the notes to the Consolidated financial statements.

Basis of consolidation

Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor’s interests in jointly

controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses

arising from Equinor's internal transactions, have been eliminated.

Foreign currency translation

Foreign currency translation

Foreign exchange differences arising on translation of transactions, assets and liabilities to the functional currency of individual

entities in Equinor are recognised in the Consolidated statement of income as foreign exchange gains or losses within Net financial

items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as

part of the change in the underlying estimate.

When preparing the Consolidated financial statements, the financial statements of entities with functional currencies other than the

Group’s presentation currency USD are translated into USD, and the foreign exchange differences are recognised separately in the

Consolidated statement of comprehensive income within Other comprehensive income (OCI). The cumulative amount of such

translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of the gain or

loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional currencies than the parent company,

and for which settlement is neither planned nor likely in the foreseeable future, are considered part of the parent company’s net

investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial

statements.

Statement of cashflows

Statement of cash flows

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss) before tax is adjusted

for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations

and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items of income or expense

for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments, derivative financial

instruments, and other interest-bearing items are all presented net as part of Investing activities, either because the transactions are

financial investments and turnover is quick, the amounts are large, and the maturities are short, or due to materiality.

Accounting judgement and key sources of estimation uncertainty

Accounting judgement and key sources of estimation uncertainty

The preparation of the Consolidated financial statements requires management to make accounting judgements, estimates and

assumptions.

Information about judgements made in applying the accounting policies that have the most significant effects on the amounts

recognised in the Consolidated financial statements is described in the following notes:

Note 6 – Acquisitions and disposals

Note 7 – Total revenues and other income

Note 25 – Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models. The

assumptions on which the estimates are based rely on historical experience, external sources of information and various other factors

that management assesses to be reasonable under the current conditions and circumstances. These estimates and assumptions form

the basis of making the judgements about carrying values of assets and liabilities when these are not readily apparent from other

sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going

basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity prices, foreign currency

exchange rates, market risk premiums and interest rates as well as financial instruments with fair values derived from changes in

these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to

several of these economic assumptions. In addition, Equinor's results are influenced by the level of production, which in the short term

may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of

exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty are described in each of the following notes:

Note 3 – Climate change and energy transition

Note 11 – Income taxes

Note 12 – Property, plant and equipment

Note 13 – Intangible assets

Note 14 – Impairments

Note 23 – Provisions and other liabilities

Note 26 – Other commitments, contingent liabilities and contingent assets

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations effective and adopted by

Equinor from 1 January 2023 do not have significant impact on Equinor’s Consolidated financial statements upon adoption. This

includes among others IFRS 17 Insurance Contracts and amendments to IAS 12 International Tax Reform – Pillar Two Model Rules

(top-up tax).

IFRS Accounting Standards, amendments to IFRS Accounting Standards, and IFRIC Interpretations issued, but not yet effective, are

either not expected to materially impact Equinor's Consolidated financial statements upon adoption or are not expected to be relevant.

Equinor has not early adopted any IFRS Accounting Standard, amendments to IFRS Accounting Standards, or IFRIC Interpretations

issued, but not yet effective.

Segments

Accounting policies

Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production

USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the

line-item Additions to PP&E, intangibles and Equity accounted investments in which movements related to changes in asset

retirement obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external

parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current

financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly

from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market

prices. The transactions are eliminated upon consolidation.

Business combinations and divestments

Business combinations and divestments

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition

method when control is transferred to the group. The purchase price includes total consideration paid to acquire the entity’s assets

and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are

measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative

expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the

Consolidated statement of income under Other income.

Equinor recognises a gain or loss on disposal of a subsidiary when control is lost. Any interest retained in the former subsidiary is

measured at fair value at the time of loss of control. However, when partially divesting subsidiaries that do not constitute a business,

and where the retained investment in the former subsidiary is an associate or a jointly controlled investment, Equinor recognises the

gain or loss only on the divested part within Other income or Operating expenses, respectively. The interest retained in the former

subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-

case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an asset purchase,

and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar

assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of oil

and gas exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to

represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

Assets classified as held for sale

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities

previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of

income.

Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This

condition is met when an asset is available for immediate sale in its present condition, Equinor’s management is committed to the

sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are

normally met when management has approved a negotiated letter of intent with the counterparties (a ‘DGC’). Liabilities directly

associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified

separately.

Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10

Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The assessment requires judgement to

be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the IFRS Accounting Standards’

requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been

postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal

entities concurrently with a portion of the entities’ shares being sold to a third party, thereby resulting in Equinor’s loss of control of

those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to

recognise the gain only on the divested portion.

Revenue recognition

Accounting policies

Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption, Revenues, in the Consolidated

statement of income.

Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products, power and other merchandise is recognised when a customer

obtains control of those products, which for tangible products normally is when title passes at point of delivery, based on the

contractual terms of the agreements. Each such sale normally represents a single performance obligation. In the case of natural gas

as well as power, which is delivered on a continuous basis through pipelines and grid, sales are completed over time in line with the

delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and

Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial

instruments or part of Equinor’s trading activities, they are settled and presented on a net basis as Other revenue. Reference is made

to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of

Equinor’s own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of

volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the

ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership

interest, costs are deferred for the underlift.

Certain long-term LNG and natural gas sales contracts include clauses which entail price reviews at regular intervals at the discretion

of either party. Where updated prices have not yet been agreed upon for volumes already delivered, it is necessary to estimate the

amount of variable consideration Equinor expects to be entitled to for these volumes. In the frequently volatile markets, there is a

degree of estimation uncertainty and reasoned judgement in establishing the expected variable consideration.

Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as other revenue

if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain

production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related

to sales contracts or revenue-related risk management.

Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The

Norwegian State's participation in petroleum activities is organised through the Norwegian State’s Direct Financial Interests (SDFI). All

purchases and sales of the SDFI's oil and natural gas liquids production are classified as purchases [net of inventory variation] and

revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI’s account and risk, the SDFI’s production of natural gas including Liquefied Natural

Gas (LNG). These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial

statements. Natural gas sales made in the name of Equinor’s subsidiaries are also presented net of the SDFI’s share in the

Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement,

Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards sales to third party customers.

Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor

purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has

concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although

Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI.

On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and

SDFI.

----------------------------------------------------------------------------------------------------------------------------------------

Income tax

Accounting policies 

Income tax

Income tax in the Consolidated statement of income comprises current income tax and effects of changes in deferred tax positions.

Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in other comprehensive

income (OCI).

Current tax consists of the expected tax payable for the year and any adjustment to tax payable for previous years. Uncertain tax

positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each

case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for

which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to differences between the carrying

amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses and credits carried forward, subject

to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income

will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income,

convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of

expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate

movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding

deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items.

Equinor has adopted amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules (top-up tax) with effect from 1

January 2023. Equinor has applied the mandatory exception and does not recognise or disclose information about deferred tax assets

and liabilities related to Pillar Two income taxes. 

The mandatory exception applies retrospectively. However, since no new legislation to implement the top-up tax was enacted or

substantively enacted on 31 December 2022 in any jurisdiction in which Equinor operates, and no related deferred tax was recognised

at that date, the retrospective application has no impact on the Consolidated financial statements. 

Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred

tax assets and deferred tax liabilities. There may be uncertainties related to interpretations of applicable tax laws and regulations

regarding amounts in Equinor’s tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may

take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions

through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations

and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is

dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the

case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions

against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased

the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient

future taxable income before tax losses expire.

-----------------------------------------------------------------------------------------------------------------------------------

Property, plant and equipment

Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset

comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate

of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.

Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with

later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the

asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing

agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective

countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and

overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and

carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection

and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or completion of

infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport systems for oil

and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when

designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the

unit of production method (UoP) based on proved reserves expected to be recovered from the area during the concession or contract

period. Depreciation of production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs

of proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances where the use

of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset’s future economic benefits are

expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets and transport systems used by

several fields is calculated on the basis of their estimated useful lives, normally using the straight-line method. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For

exploration and production assets, Equinor has established separate depreciation categories which as a minimum distinguish

between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are

accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on

derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably

certain, are recognised in the Consolidated balance sheet as a deduction to the carrying value of the asset and subsequently

recognised in the Consolidated statement of income over the life of the depreciable asset as a reduced depreciation expense.

Research and development

Research and development

Equinor undertakes research and development both on a funded basis for licence holders and on an unfunded basis for projects at its

own risk, developing innovative technologies to create opportunities and enhance the value of current and future assets. Expenses

relate both to in-house resources and the use of suppliers. Equinor's own share of the licence holders' funding and the total costs of

the unfunded projects are considered for capitalisation under the applicable IFRS Accounting Standard requirements. Subsequent to

initial recognition, any capitalised development costs are accounted for in the same manner as Property, plant and equipment. Costs

not qualifying for capitalisation are expensed as incurred, see note 9 Auditor’s remuneration and Research and development

expenditures for more details.

Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and gas quantities are

always uncertain. Estimating reserves is complex and based on a high degree of professional judgement involving geological and

engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and

installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and

economic data and the efficiency of extracting and processing the hydrocarbons.

Estimation uncertainty; Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets, as changes in the proved reserves, will

impact the unit of production rates used for depreciation and amortisation. 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. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves only reflect the period before

the contracts providing the right to operate expire. For future development projects, proved reserves estimates are included only

where there is a significant commitment to project funding and execution and when relevant governmental and regulatory approvals

have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed reserves are to be

recovered through existing wells with existing equipment and operating methods, or where the cost of the required equipment is

relatively minor compared to the cost of a new well. Proved undeveloped reserves are to be recovered from new wells on undrilled

acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled well locations can be classified as

having proved undeveloped reserves if a development plan is in place indicating that they are scheduled to be drilled within five years

unless specific circumstances justify a longer time horizon. Specific circumstances are for instance fields which have large up-front

investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled to continue for much

longer than five years. For unconventional reservoirs where continued drilling of new wells is a major part of the investments, such as

the US onshore assets, the proved reserves are always limited to proved well locations scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry standards and are governed by

the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission (SEC) regulations S-K and S-X,

and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have

been based on a 12-month average product price and on existing economic conditions and operating methods as required, and

recovery of the estimated quantities have a high degree of certainty (at least a 90% probability). An independent third party has

evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates.

Estimation uncertainty; Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of asset retirement obligations, as a consequence

of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets, possibly affecting impairment

testing and the recognition of deferred tax assets. Expected oil and gas reserves are the estimated remaining, commercially

recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in operation or decided for

development. As per Equinor’s internal guidelines, expected reserves are defined as the ‘forward looking mean reserves’ when based

on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which case the expected reserves

are the deterministic base case or best estimate. Expected reserves are therefore typically larger than proved reserves as defined by

the SEC, which are high confidence estimates with at least a 90% probability of recovery when a probabilistic approach is used.

Expected oil and gas reserves have been estimated by internal qualified professionals based on industry standards and classified in

accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate.

Intangible assets including goodwill

Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible assets include acquisition cost for oil

and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas resources, goodwill, and other intangible

assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil and natural gas resources are not

amortised. When the decision to develop a particular area is made, related intangible exploration and evaluation assets are

reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or group of units, expected to benefit

from the combination’s synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment. In

acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred tax is reflected in the accounts

based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to

such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group of CGUs on whose tax depreciation basis

the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line method.

Oil and gas exploration, evaluation and development expenditures

Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to acquire mineral interests

in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells and evaluation expenditures

are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas prospects. Geological and

geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangible assets during the

evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the

evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons, the previously capitalised costs are

evaluated for derecognition or tested for impairment. Any derecognition or impairment is classified as Exploration expenses in the

Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred to Property,

plant and equipment at the time of sanctioning of the development project. The timing from evaluation of a discovery until a project is

sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery,

whether a host government agreement is in place, the complexity of the project and the financial robustness of the project. For

onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for

production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund a portion of the selling

partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected in the Consolidated

financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain or loss

recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying amount of the asset. If the

consideration exceeds the carrying amount of the asset, the excess amount is reflected in the Consolidated statement of income

under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with only immaterial cash considerations

are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether a major capital

expenditure can be justified, will remain capitalised during the evaluation phase for the findings on the exploration wells. Thereafter it

will be considered a trigger for impairment evaluation of the well if no development decision is planned for the near future, and there

moreover are no concrete plans for future drilling in the licence. Judgements as to whether these expenditures should remain

capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the

operating income for the period.

Impairment of property, plant and equipment, right-of-use assets and intangible assets including goodwill and equity investments

Accounting policies

Impairment of property, plant and equipment, right-of-use assets, intangible assets including goodwill and equity accounted

investments

Equinor assesses individual assets or groups of assets for impairment whenever events or changes in circumstances indicate that the

carrying value may not be recoverable. Assets are grouped into cash generating units (CGUs). Normally, separate CGUs are

individual oil and gas fields or plants, or equity accounted investments. Each unconventional asset play is considered a single CGU

when no cash inflows from parts of the play can be reliably identified as being largely independent of the cash inflows from other parts

of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the

recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the

asset or CGU to which the unproved properties belong may exceed its recoverable amount, and at least once a year. Exploratory

wells that have found reserves, but where classification of those reserves as proved depends on whether major capital expenditure

can be justified or where the economic viability of that major capital expenditure depends on the successful completion of further

exploration work, will remain capitalised during the evaluation phase for the exploratory finds. If, following evaluation, an exploratory

well has not found proved reserves, the previously capitalised costs are tested for impairment. After the initial evaluation phase for a

well, it will be considered a trigger for impairment testing of a well if no development decision is planned for the near future and there

is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value

may be impaired. Impairment is determined by assessing the recoverable amount of the CGU, or group of units, to which the goodwill

relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred tax provision in a post-

tax transaction on the NCS, the remaining amount of the deferred tax provision will factor into the impairment valuation. 

Impairment and reversals of impairment are presented in the Consolidated statement of income as Exploration expenses or

Depreciation, amortisation and net impairment, on the basis of the nature of the impaired assets as either exploration assets

(intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets),

respectively.

Measurement

The recoverable amount applied in Equinor’s impairment assessments is normally estimated value in use. Equinor may also apply the

assets’ fair value less cost of disposal as the recoverable amount when such a value is available, reasonably reliable, and based on a

recent and comparable transactions.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and

supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the

remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions and economic conditions

in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs

with an expected useful life or timeline for production of expected oil and natural gas reserves extending beyond five years, including

planned onshore production from shale assets with a long development and production horizon, the forecasts reflect expected

production volumes, and the related cash flows include project or asset specific estimates reflecting the relevant period. Such

estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted using a real post-tax discount rate

which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a

monetary adjustment to the projects’ cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is

adjusted for risk that influences the expected cash flow of a project and which is not part of the project itself. The use of post-tax

discount rates in determining value in use does not result in a materially different determination of the need for, or the amount of,

impairment that would be required if pre-tax discount rates had been used.

Impairment reversals

A previously recognised impairment is reversed only if there has been a change in the estimates used to determine the asset’s

recoverable amount since the last impairment was recognised. Previously recognised impairments of goodwill are not reversed in

future periods.

Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a high degree of judgement and may to a

large extent depend upon the selection of key assumptions about the future. In Equinor's line of business, judgement is involved in

determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product pricing, management

actions and other factors may over time lead to changes in CGUs such as splitting one original CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic factors such as future

commodity prices and discount rates, and uncertainty in asset specific factors such as reserve estimates and operational decisions

impacting the production profile or activity levels. Changes in foreign currency exchange rates will also affect value in use, especially

for assets on the NCS, where the functional currency is NOK. When estimating the recoverable amount, the expected cash flow

approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used in the estimated future cash flows.

For example, climate-related matters (see also Note 3

Climate change and energy transition

) are expected to have a pervasive effect on

the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-

related levies, and other matters with mainly mid-term and long-term effects. These effects have been factored into the price

assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor’s, market participants’ and other external sources’ assumptions about the future

and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires

long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, foreign

currency exchange rates and future output, discount rates, impact of the timing of tax incentive regulations, and political and country

risk among others. Long-term assumptions for major economic factors are made at a group level, and there is a high degree of

reasoned judgement involved in establishing these assumptions, in determining other relevant factors such as forward price curves, in

estimating production outputs, and in determining the ultimate terminal value of an asset.

Joint arrangements and associates

Accounting policies

Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an activity subject to joint control, i.e.

when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are

classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor considers the nature of

products and markets of the arrangements and whether the substance of the agreements is that the parties involved have rights to

substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have rights to the net

assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues and expenses in joint operations in

accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope of IFRS 11 Joint Arrangements have been

classified as joint operations. A considerable number of Equinor's unincorporated joint exploration and production activities are

conducted through arrangements that are not jointly controlled, either because unanimous consent is not required among all parties

involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through

agreement between more than one combination of involved parties are considered to be outside the scope of IFRS 11, and these

activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all

such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for

financial information related to Equinor’s participation in joint operations within upstream activities.

Joint ventures, in which Equinor has rights to the net assets currently include the majority of Equinor’s investments in the Renewables

(REN) operating and reporting segment. Equinor’s participation in joint arrangements that are joint ventures and investments in

companies in which Equinor has neither control nor joint control but has the ability to exercise significant influence over operating and

financial policies, are classified and accounted for as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost plus post-acquisition changes in

Equinor’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. Equinor also

reflects its share of the investment’s other comprehensive income (OCI) arisen after the acquisition. The part of an equity accounted

investment’s dividend distribution exceeding the entity’s carrying amount in the Consolidated balance sheet is reflected as income

from equity accounted investments in the Consolidated statement of income. Equinor will subsequently only reflect the share of net

profit in the investment that exceeds the dividend already reflected as income.

The Consolidated statement of income reflects Equinor’s share of the results after tax of an equity accounted entity, adjusted to

account for depreciation, amortisation and any impairment of the equity accounted entity’s assets based on their fair values at the

date of acquisition. In case of material differences in accounting policies, adjustments are made in order to bring the accounts of the

equity accounted investment in line with Equinor’s accounting policies. Net income/loss from equity accounted investments is

presented on a separate line as part of Total revenues and other income, as investments in and participation with significant influence

in other companies engaged in energy-related business activities is considered to be part of Equinor’s main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the activity constitutes a business,

are accounted for in accordance with the requirements applicable to business combinations. Please refer to note 6 Acquisitions and

disposals for more details on acquisitions.

Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These costs are allocated on an hours’

incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside

the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are

reimbursed and only Equinor's share of the statement of income and balance sheet items related to Equinor-operated joint operations

and similar arrangements are reflected in the Consolidated statement of income and the Consolidated balance sheet.

-----------------------------------------------------------------------------------------------------------------------------

Inventories

Accounting policies

Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable value. Cost is determined by the

first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing expenses.

Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with subsequent changes in fair

value recognised in the Consolidated statement of income as part of Revenues. These inventories are categorised within level 2 of the

fair value hierarchy.

Cash and cash equivalents

Accounting policies

Cash and cash equivalents are accounted for at amortised cost and include cash in hand, bank deposits, and short-term highly liquid

investments with original maturity of three months or less which are readily convertible to known amounts of cash and subject to

insignificant risk of changes in fair value. Contractually mandatory deposits in escrow bank accounts are included as restricted cash

and cash equivalents if the deposits are provided as part of the Group’s operating activities and therefore are deemed as held for the

purpose of meeting short

‑

term cash commitments, and the deposits can be released from the escrow account without undue

expenses.

Share buyback policy

Accounting policies

Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme or has placed an irrevocable order with a third

party for Equinor shares to be acquired in the market, such shares are reflected as a reduction in equity as treasury shares. Treasury

shares are not included in the weighted average number of ordinary shares outstanding in the calculation of Earnings per share. The

remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and

provisions.

Pensions

Accounting policies

Equinor has pension plans for employees that either provide a defined pension benefit upon retirement or a pension dependent on

defined contributions and related returns. A portion of the contributions are provided for as notional contributions, for which the liability

increases with a promised notional return, set equal to the actual return of assets invested through the ordinary defined contribution

plan. For defined benefit plans, the benefit to be received by employees generally depends on many factors including length of

service, retirement date and future salary levels.

Equinor's proportionate share of multi-employer defined benefit plans is recognised as liabilities in the Consolidated balance sheet as

sufficient information is considered available, and a reliable estimate of the obligation can be made.

The cost of pension benefit plans is expensed over the period that the employees render services and become eligible to receive

benefits. The calculation is performed by an external actuary. Equinor's net obligation from defined benefit pension plans is calculated

separately for each plan by estimating the amount of future benefit that employees have earned in return for their services in the

current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The recognition of a net surplus for the funded plan is based on the assumption that the net assets represent a future value for

Equinor, either as a possible distribution to premium fund which can be used for future funding of new liabilities, or as disbursement of

equity in the pension fund.

Contributions to defined contribution schemes are recognised in the Consolidated statement of income as pension costs in the period

in which the contribution amounts are earned by the employees.

Notional contribution plans, reported in the parent company Equinor ASA, are recognised as Pension liabilities with the actual value of

the notional contributions and promised return at reporting date. Notional contributions are recognised in the Consolidated statement

of income as periodic pension cost, while changes in fair value of the employees’ notional assets are reflected in the Consolidated

statement of income under Net financial items.

Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor’s operated joint operations (licences)

on an hours’ incurred basis and recognised in the Consolidated statement of income based on the function of the cost.

Asset retirement obligations (ARO)

Accounting policies

Asset retirement obligations (ARO)

Provisions for asset retirement obligations (ARO) are recognised when Equinor has an obligation (legal or constructive) to dismantle

and remove a facility or an item of property, plant and equipment and to restore the site on which it is located, and when a reliable

estimate of that liability can be made. Normally an obligation arises for a new facility, such as an oil and natural gas production or

transportation facility, upon construction or installation. An obligation may also arise during the period of operation of a facility through

a change in legislation or through a decision to terminate operations or be based on commitments associated with Equinor's ongoing

use of pipeline transport systems where removal obligations rest with the volume shippers.

The amount recognised is the present value of the estimated future expenditures determined in accordance with local conditions and

requirements. The cost is estimated based on current regulations and technology, considering relevant risks and uncertainties. The

discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of

the underlying cash flows. The provisions are classified under Provisions in the Consolidated balance sheet.

When a provision for ARO is recognised, a corresponding amount is recognised as an increase of the related asset within property,

plant and equipment and is subsequently depreciated over the useful life of the asset. Any change in the present value of the

estimated expenditure is reflected as an adjustment to the provision and the corresponding adjustment to the carrying value of the

property, plant and equipment. When a decrease in the ARO related to a producing asset exceeds the carrying amount of the asset,

the excess is recognised as a reduction of Depreciation, amortisation and net impairment in the Consolidated statement of income.

When an asset has reached the end of its useful life, all subsequent changes to the ARO are recognised as they occur in Operating

expenses in the Consolidated statement of income.

Removal provisions associated with Equinor's role as shipper of volumes through third party transport systems are expensed as

incurred.

Estimation uncertainty regarding asset retirement obligations

Establishing the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing

technological developments, expectations about future regulatory and technological development and involve the application of

judgement and an inherent risk of significant adjustments. The costs of decommissioning and removal activities require revisions due

to changes in current regulations and technology while considering relevant risks and uncertainties. Most of the removal activities are

many years into the future, and the removal technology and costs are constantly changing. The speed of the transition to renewable

energy sources may also influence the production period, hence the timing of the removal activities. The estimates include

assumptions of norms, rates and time required which can vary considerably depending on the assumed removal complexity.

Moreover, changes in the discount rate and foreign currency exchange rates may impact the estimates significantly. As a result, the

initial recognition of ARO and subsequent adjustments involve the application of significant judgement.

Leases

Accounting policies

Leases

A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for

consideration. At the date at which the underlying asset is made available for Equinor, the present value of future lease payments

(including extension options considered reasonably certain to be exercised) is recognised as a lease liability. The present value is

calculated using Equinor’s incremental borrowing rate. A corresponding right-of-use (RoU) asset is recognised, including lease

payments and direct costs incurred at the commencement date. Lease payments are reflected as interest expense and a reduction of

lease liabilities. The RoU assets are depreciated over the shorter of each contract’s term and the assets’ useful life.

Short term leases (12 months or less) and leases of low value assets are expensed or (if appropriate) capitalised as incurred,

depending on the activity in which the leased asset is used.

Many of Equinor’s lease contracts, such as rig and vessel leases, involve several additional services and components, including

personnel cost, maintenance, drilling related activities, and other items. For a number of these contracts, the additional services

represent a not inconsiderable portion of the total contract value. Non-lease components within lease contracts are accounted for

separately for all underlying classes of assets and reflected in the relevant expense category or (if appropriate) capitalised as

incurred, depending on the activity involved.

Accounting judgement regarding leases

In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar arrangements, the application

of IFRS 16 Leases requires evaluations of whether the joint arrangement or its operator is the lessee in each lease agreement and

consequently whether such contracts should be reflected gross (100%) in the operator’s financial statements, or according to each

joint operation partner’s proportionate share of the lease.

In many cases where an operator is the sole signatory to a lease contract of an asset to be used in the activities of a specific joint

operation, the operator does so implicitly or explicitly on behalf of the joint arrangement. In certain jurisdictions, and importantly for

Equinor as this includes the Norwegian continental shelf (NCS), the concessions granted by the authorities establish both a right and

an obligation for the operator to enter into necessary agreements in the name of the joint operations (licences).

As is the customary norm in upstream activities operated through joint arrangements, the operator will manage the lease, pay the

lessor, and subsequently re-bill the partners for their share of the lease costs. In each such instance, it is necessary to determine

whether the operator is the sole lessee in the external lease arrangement, and if so, whether the billings to partners may represent

sub-leases, or whether it is in fact the joint arrangement which is the lessee, with each participant accounting for its proportionate

share of the lease. Where all partners in a licence are considered to share the primary responsibility for lease payments under a

contract, Equinor’s proportionate share of the related lease liability and RoU asset will be recognised net by Equinor. When Equinor is

considered to have the primary responsibility for the full external lease payments, the lease liability is recognised gross (100%).

Other commitments, contingent liabilities and contingent assets

Accounting policies

Estimation uncertainty regarding levies

Equinor’s global business activities are subject to taxation on income and indirect taxes in various jurisdictions around the

world. In these jurisdictions, governments can respond to global or local development, including climate related matters and

public fiscal balances, by issuing new laws or other regulations stipulating changes in income tax, value added tax, tax on

emissions, customs duties or other levies which may affect profitability and even the viability of Equinor’s business in that

jurisdiction. Equinor mitigates this risk by using local legal representatives and staying up to date with the legislation in the

jurisdictions where activities are carried out. Occasionally, legal disputes arise from difference in interpretations. Equinor’s

legal department, together with local legal representatives, estimate the outcome from such legal disputes based on first-hand

knowledge. Such estimates may differ from the actual results.

Financial assets

Financial assets

Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset.

Short-term highly liquid investments with original maturity exceeding 3 months are classified as current financial investments. Current

financial investments are primarily accounted for at amortised cost.

Trade receivables are carried at the original invoice amount less a provision for doubtful receivables which represent expected losses

computed on a probability-weighted basis.

A part of Equinor's financial investments is managed together as an investment portfolio of Equinor's captive insurance company and

is held in order to comply with specific regulations for capital retention. The investment portfolio is managed and evaluated on a fair

value basis in accordance with an investment strategy and is accounted for at fair value through profit or loss.

Financial assets are presented as current if they contractually will expire or otherwise are expected to be recovered within 12 months

after the balance sheet date, or if they are held for the purpose of being traded. Financial assets and financial liabilities are shown

separately in the Consolidated balance sheet, unless Equinor has both a legal right and a demonstrable intention to net settle certain

balances payable to and receivable from the same counterparty.

Gains and losses arising on the sale, settlement or cancellation of financial assets are recognised within Net financial items.

Financial liabilities

Financial liabilities

Financial liabilities are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the liability. The

subsequent measurement of financial liabilities is either as financial liabilities at fair value through profit or loss or financial liabilities

measured at amortised cost using the effective interest method, depending on classification. The latter applies to Equinor's non-

current bank loans and bonds.

Financial liabilities are presented as current if the liability is expected to be settled as part of Equinor’s normal operating cycle, the

liability is due to be settled within 12 months after the balance sheet date, Equinor does not have the right to defer settlement of the

liability more than 12 months after the balance sheet date, or if the liabilities are held for the purpose of being traded.

Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised within Net financial items.

Derivative financial instruments

Derivative financial instruments

Equinor uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates, interest

rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a

derivative contract is entered into and are subsequently remeasured at fair value through profit and loss. The impact of commodity-

based derivative financial instruments is recognised in the Consolidated statement of income as part of Revenues, as such derivative

instruments are related to sales contracts or revenue-related risk management for all significant purposes. The impact of other

derivative financial instruments is reflected under Net financial items.

Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivative assets or

liabilities expected to be settled, or with the legal right to be settled more than 12 months after the balance sheet date, are classified

as non-current. Derivative financial instruments held for the purpose of being traded are however always classified as current.

Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument are accounted for as

financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a

non-financial item in accordance with Equinor's expected purchase, sale or usage requirements, also referred to as own-use, are not

accounted for as financial instruments. Such sales and purchases of physical commodity volumes and power are reflected in the

Consolidated statement of income as Revenue from contracts with customers and Purchases [net of inventory variation], respectively.

This is applicable to a significant number of contracts for the purchase or sale of crude oil and natural gas, as well as for some

contracts for the purchase or sale of power.

For contracts to sell a non-financial item that can be settled net in cash, but which ultimately are physically settled despite not

qualifying as own use prior to settlement, the changes in fair value are included in Gain/loss on commodity derivatives. When these

derivatives are physically settled, the previously recognised unrealised gain/loss is included in Physically settled commodity

derivatives. Both these elements are included as part of Revenues. The physical deliveries made through such contracts are included

in Revenue from contracts with customers at contract price.

Derivatives embedded in host contracts which are not financial assets within the scope of IFRS 9 are recognised as separate

derivatives and are reflected at fair value with subsequent changes through profit and loss, when their risks and economic

characteristics are not closely related to those of the host contracts, and the host contracts are not carried at fair value. Where there is

an active market for a commodity or other non-financial item referenced in a purchase or sale contract, a pricing formula will, for

instance, be considered to be closely related to the host purchase or sales contract if the price formula is based on the active market

in question. A price formula with indexation to other markets or products will however result in the recognition of a separate derivative.

In Equinor, this mainly relates to certain natural gas sales contracts where the pricing formula references power.

XML

Climate change and energy transition (Tables)

12 Months Ended

Dec. 31, 2023

Climate change and energy transition [Abstract]

Schedule of number of EU ETS quotas utilised and related monetary amounts recognised

Number of EU ETS quotas in

thousands

in USD million

2023

2022

2023

2022

Opening balance at 1 January

10,782

11,026

20

59

Allocated free quotas

356

3,697

Purchased quotas on the ETS market

7,822

5,985

708

509

Sold quotas on the ETS market

0

0

Returned excess free quotas

(544)

0

Settled quotas (offset against emissions)

(9,840)

(9,926)

(635)

(548)

Closing balance at 31 December

8,576

10,782

93

20

Schedule of investments included as additions to PP&E, intangibles and equity accounted investments

(in USD million)

2023

2022

Offshore, REN

880

146

Onshore, REN

1,127

152

Total Additions to PP&E, intangibles and equity accounted investments - REN

2,007

298

Low carbon solutions (within MMP)

179

36

Total Additions to PP&E, intangibles and equity accounted investments - REN and

LCS 

2,186

334

Price sensitivity

Management's price assumptions

1)

Net Zero Emissions (NZE) by 2050

Scenario

4)

Announced Pledges Scenario (APS)

5)

Brent blend, 2030

78

USD/bbl

46

USD/bbl

79

USD/bbl

Brent blend, 2040

73

USD/bbl

37

USD/bbl

72

USD/bbl

Brent blend, 2050

68

USD/bbl

28

USD/bbl

65

USD/bbl

TTF, 2030

9.1

USD/MMBtu

4.5

USD/MMBtu

6.8

USD/MMBtu

TTF, 2040

9.5

USD/MMBtu

4.4

USD/MMBtu

6.2

USD/MMBtu

TTF, 2050

9.5

USD/MMBtu

4.3

USD/MMBtu

5.6

USD/MMBtu

EU ETS

2), 3)

, 2030

123

USD/tCO

2

146

USD/tCO

2

141

USD/tCO

2

EU ETS

2), 3)

, 2040

150

USD/tCO

2

214

USD/tCO

2

182

USD/tCO

2

EU ETS

2), 3)

, 2050

176

USD/tCO

2

261

USD/tCO

2

208

USD/tCO

2

Illustrative potential impairment (USD)

~

10.0

billion

~

3.0

billion

Management’s future commodity price assumptions applied when estimating value in use, see note 14 Impairments.

2)

 Scenarios: Price of CO

2

 quotas in advanced economies with net zero pledges, not including any other CO

2

 taxes.

3)

 EU ETS price assumptions have been translated from EUR to USD using Equinor’s assumptions for currency rates, EUR/USD =

1,176

.

4)

 A scenario where all national energy and climate targets made by governments are met on time and in full. Using this scenario, the world is expected to

reach a 1.7ºC increase in the year 2100.

5)

 A scenario where the world moves on a potential path towards limiting global warming to 1.5 °C relative to pre-industrial levels.

XML

Financial risk and capital management (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of risk management strategy related to hedge accounting [line items]

Undiscounted contractual cash flows

At 31 December

2023

2022

(in USD million)

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Year 1

20,209

1,369

857

20,172

1,325

1,065

Year 2 and 3

6,035

1,434

636

6,292

1,421

752

Year 4 and 5 

5,601

496

404

5,785

504

486

Year 6 to 10

6,846

405

1,016

8,749

465

1,202

After 10 years

10,751

72

340

11,204

120

706

Total specified

49,442

3,776

3,253

52,202

3,835

4,211

Credit risk exposure and grading

(in USD million)

Non-current financial

receivables

Trade and other

receivables

Non-current

derivative financial

instruments

Current derivative

financial instruments

At 31 December 2023

Investment grade, rated A or above

193

5,857

305

565

Other investment grade

8

5,132

7

565

Non-investment grade or not rated

140

5,204

247

248

Total financial assets

341

16,193

559

1,378

At 31 December 2022

Investment grade, rated A or above

1,633

6,125

390

1,715

Other investment grade

12

8,725

41

1,393

Non-investment grade or not rated

14

6,761

259

931

Total financial assets

1,659

21,611

690

4,039

Master netting agreements for financial assets and liabilities

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2023

Financial assets

Trade receivables

17,139

3,133

14,006

0

14,006

Collateral receivables

8,713

6,526

2,186

2,186

0

Derivative financial instruments

12,767

10,829

1,937

677

1,260

Total financial assets

38,619

20,488

18,129

2,863

15,266

Financial liabilities

Trade payables

14,184

3,133

11,051

0

11,051

Collateral liabilities

7,791

7,333

458

458

0

Derivative financial instruments

13,437

10,023

3,414

2,405

1,009

Total financial liabilities

35,412

20,488

14,923

2,863

12,060

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2022

Financial assets

Trade receivables

25,607

7,464

18,143

0

18,143

Collateral receivables

16,923

13,455

3,468

3,468

0

Derivative financial instruments

28,535

23,806

4,730

1,708

3,022

0

Total financial assets

71,065

44,725

26,341

5,176

21,164

Financial liabilities

Trade payables

19,913

7,464

12,449

0

12,449

Collateral liabilities

13,936

12,365

1,571

1,571

0

Derivative financial instruments

31,377

24,895

6,482

3,605

2,877

Total financial liabilities

65,226

44,725

20,502

5,176

15,326

Capital Management

At 31 December

(in USD million)

2023

2022

Net interest-bearing debt adjusted, including lease liabilities (ND1)

(5,040)

(6,750)

Net interest-bearing debt adjusted (ND2)

(8,610)

(10,417)

Capital employed adjusted, including lease liabilities (CE1)

43,460

47,239

Capital employed adjusted (CE2)

39,890

43,571

Net debt to capital employed adjusted, including lease liabilities (ND1/CE1)

(11.6%)

(14.3%)

Net debt to capital employed adjusted (ND2/CE2)

(21.6%)

(23.9%)

Commodity price sensitivity [Member]

Disclosure of risk management strategy related to hedge accounting [line items]

Sensitivity analysis of market risk

Commodity price sensitivity

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

442

(442)

666

(666)

Natural gas, electricity and CO2 net gains/(losses)

86

(52)

(3)

140

Currency risk sensitivity [Member]

Disclosure of risk management strategy related to hedge accounting [line items]

Sensitivity analysis of market risk

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

1,519

406

903

Shareholders equity through P&L

(413)

(418)

(92)

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(1,519)

(406)

(903)

Shareholders equity through P&L

413

418

92

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

Impact from a 12% strengthening of given currency vs USD on:

Shareholders equity through OCI

3,552

837

750

Shareholders equity through P&L

(889)

(259)

(389)

Impact from a 12% weakening of given currency vs USD on:

Shareholders equity through OCI

(3,552)

(837)

(750)

Shareholders equity through P&L

889

259

389

Interest rate sensitivity [Member]

Disclosure of risk management strategy related to hedge accounting [line items]

Sensitivity analysis of market risk

Interest risk sensitivity

At 31 December

2023

2022

(in USD million)

 - 1.3 percentage

points

+ 1.3 percentage

points

 - 1.2 percentage

points

+ 1.2 percentage

points

Positive/(negative) impact on net financial items

336

(333)

369

(366)

Equity price risk [Member]

Disclosure of risk management strategy related to hedge accounting [line items]

Sensitivity analysis of market risk

Equity price sensitivity

At 31 December

2023

2022

(in USD million)

- 35%

+ 35%

- 35%

+ 35%

Net gains/(losses)

(552)

552

(450)

450

XML

Segments (Tables)

12 Months Ended

Dec. 31, 2023

Segments [Abstract]

Operating segments data

2023

E&P

Norway 

E&P

International

E&P USA

MMP

REN

Other

Eliminations 

Total group

(in USD million)

Revenues third party

230

993

277

105,242

20

85

0

106,848

Revenues and other income inter-segment

37,999

6,009

4,009

633

12

33

(48,695)

0

Net income/(loss) from equity accounted

investments

0

28

0

12

(33)

(8)

0

(1)

Other income

111

1

32

23

18

142

0

327

Total revenues and other income 

38,340

7,032

4,319

105,908

17

253

(48,695)

107,174

Purchases [net of inventory variation]

0

(70)

0

(95,769)

0

(1)

47,665

(48,175)

Operating, selling, general and

administrative expenses

(3,759)

(2,176)

(1,178)

(4,916)

(462)

(201)

893

(11,800)

Depreciation and amortisation

(4,429)

(2,123)

(1,779)

(897)

(12)

(133)

0

(9,373)

Net impairment (losses)/reversals

(588)

(310)

290

(343)

(300)

(10)

0

(1,260)

Exploration expenses

(476)

(20)

(299)

0

0

0

0

(795)

Total operating expenses

(9,253)

(4,700)

(2,966)

(101,925)

(774)

(345)

48,558

(71,404)

Net operating income/(loss)

29,087

2,332

1,353

3,984

(757)

(92)

(137)

35,770

Additions to PP&E, intangibles and equity

accounted investments

5,939

4,376

1,206

844

2,007

128

0

14,500

Balance sheet information

Equity accounted investments 

3

0

0

783

1,665

57

0

2,508

Non-current segment assets 

28,915

17,977

11,049

3,997

1,575

1,018

0

64,530

Non-current assets not allocated to

segments 

14,487

Total non-current assets 

81,525

Assets classified as held for sale

0

1,064

0

0

0

0

0

1,064

2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

304

1,099

305

147,164

16

115

0

149,004

Revenues and other income inter-segment

74,631

6,124

5,217

527

0

55

(86,554)

0

Net income/(loss) from equity accounted

investments

0

172

0

406

58

(16)

0

620

Other income

994

35

0

9

111

33

0

1,182

Total revenues and other income 

75,930

7,431

5,523

148,105

185

187

(86,554)

150,806

Purchases [net of inventory variation]

0

(116)

0

(139,916)

0

0

86,227

(53,806)

Operating, selling, general and

administrative expenses

(3,782)

(1,698)

(938)

(4,591)

(265)

(223)

904

(10,593)

Depreciation and amortisation

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

0

(8,878)

Net impairment (losses)/reversals

819

(286)

1,060

895

0

0

0

2,487

Exploration expenses

(366)

(638)

(201)

0

0

0

0

(1,205)

Total operating expenses

(8,315)

(4,183)

(1,501)

(144,493)

(269)

(365)

87,130

(71,995)

Net operating income/(loss)

67,614

3,248

4,022

3,612

(84)

(178)

577

78,811

Additions to PP&E, intangibles and equity

accounted investments

4,922

2,623

764

1,212

298

176

0

9,994

Balance sheet information

Equity accounted investments 

3

550

0

688

1,452

65

0

2,758

Non-current segment assets 

28,510

15,868

11,311

4,619

316

1,031

0

61,656

Non-current assets not allocated to

segments 

15,437

Total non-current assets 

79,851

Assets classified as held for sale

0

1,018

0

0

0

0

0

1,018

2021

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

261

1,115

377

86,883

8

99

0

88,744

Revenues and other income inter-segment

38,972

4,230

3,771

321

0

41

(47,335)

0

Net income/(loss) from equity accounted

investments

0

214

0

22

16

7

0

259

Other income

154

5

0

168

1,386

208

0

1,921

Total revenues and other income

39,386

5,565

4,149

87,393

1,411

355

(47,335)

90,924

Purchases [net of inventory variation]

0

(58)

0

(80,873)

0

(1)

45,772

(35,160)

Operating, selling, general and

administrative expenses

(3,653)

(1,405)

(1,074)

(3,753)

(163)

(432)

1,102

(9,378)

Depreciation and amortisation

(6,002)

(1,734)

(1,665)

(869)

(3)

(158)

0

(10,432)

Net impairment (losses)/reversals

1,102

(1,587)

(69)

(735)

0

2

0

(1,287)

Exploration expenses

(363)

(451)

(190)

0

0

0

0

(1,004)

Total operating expenses

(8,915)

(5,237)

(2,998)

(86,230)

(166)

(590)

46,873

(57,261)

Net operating income/(loss)

30,471

329

1,150

1,163

1,245

(234)

(461)

33,663

Additions to PP&E, intangibles and equity

accounted investments

4,943

1,834

690

517

457

64

0

8,506

Balance sheet information

Equity accounted investments

3

1,417

0

113

1,108

45

0

2,686

Non-current segment assets

36,502

15,422

11,406

4,006

157

1,032

0

68,527

Non-current assets not allocated to

segments

13,406

Total non-current assets

84,618

Assets classified as held for sale

0

676

0

0

0

0

0

676

Non-current assets by country

Non-current assets by country

At 31 December

(in USD million)

2023

2022

Norway

32,977

33,242

USA

12,587

12,343

Brazil

10,871

9,400

UK

5,535

3,688

Canada

1,157

1,171

Angola

1,103

895

Denmark

973

497

Argentina

648

615

Algeria

474

622

Poland

447

270

Other

265

1,672

Total non-current assets

1)

67,038

64,414

Excluding deferred tax assets, pension assets and non-current financial assets.

XML

Total revenues and other income (Tables)

12 Months Ended

Dec. 31, 2023

Total revenues and other income [Abstract]

Revenues from contracts with customers

Revenues from contracts with customers and other revenues

(in USD million)

Note

2023

2022

2021

Crude oil

56,861

58,524

38,307

Natural gas

26,386

65,232

28,050

 - European gas

23,174

58,239

24,900

 - North American gas

1,111

2,884

1,783

 - Other incl LNG

2,102

4,109

1,368

Refined products

10,083

11,093

11,473

Natural gas liquids

8,345

9,240

8,490

Transportation

1,425

1,470

921

Other sales

3,032

4,702

1,006

Total revenues from contracts with customers

106,132

150,262

88,247

Taxes paid in-kind

342

412

345

Physically settled commodity derivatives

1,331

(2,534)

(1,075)

Gain/(loss) on commodity derivatives

(1,041)

739

951

Change in fair value of trading inventory

(334)

(194)

0

Other revenues

418

319

276

Total other revenues

716

(1,258)

497

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

15

(1)

620

259

Other income

6

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

XML

Salaries and personnel expenses (Tables)

12 Months Ended

Dec. 31, 2023

Salaries and personnel expenses [Abstract]

Salaries and personnel expenses

(in USD million, except average number of employees)

2023

2022

2021

Salaries

1)

2,876

2,875

2,962

Pension costs

2)

441

458

488

Payroll tax

511

433

414

Other compensations and social costs

375

324

288

Total payroll expenses

4,203

4,090

4,152

Average number of employees

3)

22,600

21,500

21,400

Salaries include bonuses and expatriate costs in addition to base pay.

2)

 See note 22 Pensions.

3)

 Part time employees amount to

2

% for 2023 and

3

% for 2022 and 2021.

Remuneration to members of the BoD and the CEC

(in USD million)

1)

2023

2022

2021

Current employee benefits

10.7

12.9

12.2

Post-employment benefits

0.3

0.4

0.4

Other non-current benefits

0.0

0.0

0.0

Share-based payment benefits

0.3

0.2

0.1

Total benefits

11.3

13.5

12.7

1) All figures in the table are presented on accrual basis.

XML

Auditor's remuneration and Research and development expenditures (Tables)

12 Months Ended

Dec. 31, 2023

Auditor's remuneration and Research and development expenditures [Abstract]

Auditor's remuneration

Auditor's remuneration

Full year

(in USD million, excluding VAT)

2023

2022

2021

Audit fee

14.9

11.4

14.4

Audit related fee 

1.2

1.8

1.1

Tax fee

-

-

-

Other service fee 

-

-

-

Total remuneration

16.1

13.2

15.5

XML

Financial items (Tables)

12 Months Ended

Dec. 31, 2023

Financial items [Abstract]

Schedule of Finance items

Full year

(in USD million)

2023

2022

2021

Foreign currency exchange gains/(losses) derivative financial instruments 

(1,476)

797

870

Other foreign currency exchange gains/(losses)

2,328

1,291

(823)

Net foreign currency exchange gains/(losses)

852

2,088

47

Dividends received

218

93

39

Interest income financial investments, including cash and cash equivalents

1,468

398

38

Interest income non-current financial receivables

31

30

26

Interest income other current financial assets and other financial items

732

701

48

Interest income and other financial income

2,449

1,222

151

Gains/(losses) financial investments

123

(394)

(348)

Gains/(losses) other derivative financial instruments

351

(1,745)

(708)

Interest expense bonds and bank loans and net interest on related derivatives

(1,263)

(1,029)

(896)

Interest expense lease liabilities

(132)

(90)

(93)

Capitalised borrowing costs

468

382

334

Accretion expense asset retirement obligations

(538)

(449)

(453)

Interest expense current financial liabilities and other financial expense

(195)

(192)

(114)

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Net financial items

2,114

(207)

(2,080)

XML

Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income taxes [Abstract]

Significant components of income tax expense

Significant components of income tax expense

Full year

(in USD million)

2023

2022

2021

Current income tax expense in respect of current year

(24,028)

(52,124)

(21,271)

Prior period adjustments

(121)

(112)

(28)

Current income tax expense

(24,149)

(52,236)

(21,299)

Origination and reversal of temporary differences

(1,529)

(2,136)

(1,778)

Recognition / derecognition of previously (un)recognised deferred tax assets

(137)

4,401

126

Change in tax regulations

4

0

4

Prior period adjustments

(169)

110

(60)

Deferred tax income/(expense)

(1,831)

2,375

(1,708)

Income tax

(25,980)

(49,861)

(23,007)

Reconciliation of statutory tax rate to effective tax rate

Reconciliation of statutory tax rate to effective tax rate

Full year

(in USD million)

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Calculated income tax at statutory rate

1)

(8,833)

(18,168)

(7,053)

Calculated Norwegian Petroleum tax

2)

(17,226)

(36,952)

(17,619)

Tax effect uplift

3)

160

259

914

Tax effect of permanent differences regarding divestments

82

417

90

Tax effect of permanent differences caused by functional currency different from tax currency

5

145

150

Tax effect of other permanent differences

453

403

228

Recognition / derecognition of previously (un)recognised deferred tax assets

4)

(137)

4,401

126

Change in unrecognised deferred tax assets

(29)

(34)

619

Change in tax regulations

4

0

4

Prior period adjustments

(290)

(3)

(88)

Other items including foreign currency effects

(169)

(327)

(378)

Income tax

(25,980)

(49,861)

(23,007)

Effective tax rate

68.6 %

63.4 %

72.8 %

The weighted average of statutory tax rates was

23.3

% in 2023,

23.1

% in 2022 and

22.3

% in 2021. The rates are influenced by

earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates.

2)

 The Norwegian petroleum income is taxable at a tax rate of

71.8

% after deducting a calculated

22

% corporate tax.

3)

 As from 2023 the uplift deduction for investments on NCS has been abolished except for asset investments that fall under the

temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to the authorities before 31

December 2022 the rules allow a direct deduction of the whole uplift in the year the capital expenditure is incurred. In 2022 the

rate was

17.69

% and this rate was reduced to

12.4

% in 2023. 

4)

 Equinor performs its assessment on DTA recognition based on sources of income such as the reversal pattern of taxable timing

differences and projections of taxable income and recognises the amount of deferred tax assets that is probable to be realised. In

2023 USD

137

 million was derecognised due to an increase in valuation allowance mainly related to Angola and Canada, compared

to a recognition of USD

4,401

 million in 2022 mainly related to unused accumulated tax losses in the US.

Deferred tax assets and liabilities

Deferred tax assets and liabilities comprise

(in USD million)

Tax losses

carried

forward

Property,

plant and

equipment 

and

intangible

assets

Asset

retirement

obligations

Lease

liabilities

Pensions

Derivatives

Other

Total

Deferred tax assets

8,575

514

7,816

1,298

747

446

1,495

20,892

Deferred tax liabilities

(28)

(26,042)

0

(2)

(6)

0

(300)

(26,378)

Net asset/(liability) at 31 December

2023

8,547

(25,528)

7,816

1,296

741

446

1,195

(5,485)

Deferred tax assets

8,105

694

7,356

1,306

694

1,131

1,348

20,634

Deferred tax liabilities

(28)

(23,356)

0

(3)

(12)

(3)

(411)

(23,813)

Net asset/(liability) at 31 December

2022

8,077

(22,662)

7,356

1,303

682

1,128

937

(3,179)

Changes in net deferred tax liability during the year

Changes in net deferred tax liability during the year were as follows:

(in USD million)

2023

2022

2021

Net deferred tax liability at 1 January

3,179

7,655

6,250

Charged/(credited) to the Consolidated statement of income

1,831

(2,375)

1,708

Charged/(credited) to Other comprehensive income

(66)

105

35

Acquisitions and disposals

981

(968)

36

Foreign currency translation effects and other effects

(440)

(1,239)

(374)

Net deferred tax liability at 31 December

5,485

3,179

7,655

Disclosure of Net deferred tax assets and liabilities

At 31 December

(in USD million)

2023

2022

Deferred tax assets

7,936

8,732

Deferred tax liabilities

13,345

11,996

Net deferred tax classified as held for sale

(76)

85

Disclosure of unrecognised deferred tax assets

Unrecognised deferred tax assets

At 31 December

2023

2022

(in USD million)

Basis

Tax

Basis

Tax

Deductible temporary differences

2,555

1,030

2,558

968

Unused tax credits

0

185

0

129

Tax losses carried forward

3,944

947

3,458

930

Total unrecognised deferred tax assets

6,499

2,162

6,016

2,027

XML

Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, plant and equipment [Abstract]

Property, plant and equipment

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

4)

Total

Cost at 1 January 2023

1,343

171,948

8,285

562

10,815

6,633

199,586

Additions through business acquisition

7)

48

1,121

339

38

370

8

1,923

Additions and transfers

6)

113

7,286

60

19

3,196

1,087

11,761

Changes in asset retirement obligations

0

772

0

0

55

0

827

Disposals at cost

(64)

(3,567)

(446)

(29)

(30)

(634)

(4,771)

Assets reclassified to held for sale

8)

(1)

(3,944)

0

0

(245)

(8)

(4,198)

Foreign currency translation effects

0

(2,705)

(133)

1

(64)

(36)

(2,937)

Cost at 31 December 2023

1,438

170,911

8,105

591

14,097

7,050

202,191

Accumulated depreciation and impairment at

1 January 2023

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Depreciation

(44)

(7,976)

(224)

(26)

0

(1,079)

(9,350)

Impairment

(2)

(844)

(323)

0

(18)

(1)

(1,188)

Reversal of impairment

0

288

0

0

3

0

290

Transfers

6)

1

(11)

0

(1)

10

0

(2)

Accumulated depreciation and impairment

on disposed assets

52

3,355

442

28

22

634

4,533

Accumulated depreciation and impairment

assets classified as held for sale

8)

1

3,176

0

0

0

6

3,183

Foreign currency translation effects

7

2,142

88

0

3

10

2,251

Accumulated depreciation and impairment at

31 December 2023

5)

(1,188)

(131,325)

(6,780)

(337)

(117)

(3,623)

(143,369)

Carrying amount at 31 December 2023

250

39,585

1,325

254

13,980

3,427

58,822

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 30

 10 - 33

2)

 1 - 20

3)

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2022

1,335

183,358

8,481

596

12,614

5,850

212,234

Additions and transfers

6)

52

9,390

378

6

(813)

1,319

10,332

Changes in asset retirement obligations

0

(4,756)

0

0

(48)

0

(4,805)

Disposals at cost

(9)

(3,487)

2

(20)

(5)

(347)

(3,865)

Foreign currency translation effects

(36)

(12,557)

(576)

(19)

(934)

(188)

(14,310)

Cost at 31 December 2022

1,343

171,948

8,285

562

10,815

6,633

199,586

Accumulated depreciation and impairment

at 1 January 2022

(1,188)

(137,763)

(7,926)

(320)

(344)

(2,619)

(150,159)

Depreciation

(52)

(7,643)

(160)

(33)

0

(969)

(8,856)

Impairment

(8)

(187)

(39)

0

(49)

(4)

(286)

Reversal of impairment

4

2,585

802

0

207

0

3,599

Transfers

6)

(2)

(20)

2

0

20

(8)

(8)

Accumulated depreciation and impairment

on disposed assets

8

2,002

(4)

5

0

347

2,359

Foreign currency translation effects

34

9,571

562

9

30

59

10,264

Accumulated depreciation and impairment

at 31 December 2022

5)

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Carrying amount at 31 December 2022

140

40,493

1,522

224

10,679

3,439

56,498

Estimated useful lives (years)

 3 - 20

UoP

1)

 15 - 20

 10 - 33

2)

 1 - 20

3)

Depreciation according to unit of production method.

2)

 Land is not depreciated

.

Buildings include leasehold improvements.

3)

 Depreciation linearly over contract period.

4)

 Right of use assets at 31 December 2023 mainly consist of Land and buildings USD

1,038

 million, Vessels USD

1,578

 million

and Drilling rigs USD

504

 million.

5)

 See note 14 Impairments.

6)

 The carrying amount of assets transferred to Property plant and equipment from Intangible assets

in 2023 and 2022 amounted to

USD

1,280

 million and USD

982

 million, respectively.

7)

 For additions through business acquisition, see note 6 Acquisitions and disposals.

8)

 For assets reclassified to held for sale, see note 6 Acquisitions and disposals.

XML

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2023

Intangible assets [Abstract]

Continuity schedule of intangible assets

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2023

1,599

2,035

1,380

528

5,542

Additions through business acquisition

0

5

348

446

799

Additions

410

360

9

210

989

Disposals at cost

0

0

(10)

(124)

(135)

Transfers

(961)

(319)

4

(4)

(1,280)

Expensed exploration expenditures previously capitalised

114

(61)

0

0

53

Foreign currency translation effects

7

16

2

16

41

Cost at 31 December 2023

1,169

2,036

1,733

1,072

6,010

Accumulated amortisation and impairment at 31 December 2023

1)

(302)

(302)

Carrying amount at 31 December 2023

1,169

2,036

1,733

2)

770

5,709

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2022

1,958

2,670

1,467

722

6,816

Additions

227

4

36

57

324

Disposals at cost

(10)

(50)

0

1

(58)

Transfers

(227)

(516)

0

(239)

(982)

Expensed exploration expenditures previously capitalised

(283)

(59)

0

0

(342)

Impairment of goodwill

0

0

(3)

0

(3)

Foreign currency translation effects

(65)

(14)

(121)

(13)

(213)

Cost at 31 December 2022

1,599

2,035

1,380

528

5,542

Accumulated amortisation and impairment at 31 December 2022

1)

(384)

(384)

Carrying amount at 31 December 2022

1,599

2,035

1,380

144

5,158

Aging of capitalised exploration expenditures

The table below shows the aging of capitalised exploration expenditures.

(in USD million)

2023

2022

Less than one year

345

250

Between one and five years

458

340

More than five years

366

1,009

Total capitalised exploration expenditures

1,169

1,599

Components of the exploration expenses

The table below shows the components of the exploration expenses.

Full year

(in USD million)

2023

2022

2021

Exploration expenditures

1,275

1,087

1,027

Expensed exploration expenditures previously capitalised

(53)

342

171

Capitalised exploration

(427)

(224)

(194)

Exploration expenses

795

1,205

1,004

XML

Impairments (Tables)

12 Months Ended

Dec. 31, 2023

Impairments [Abstract]

Net impairments/(reversal of impairments

Full year

(in USD million)

2023

2022

2021

Property, plant and equipment

897

(3,313)

1,285

Intangible assets

61

62

154

Equity accounted investments

363

832

0

Total net impairments/(reversals) including exploration expenses

1,321

(2,419)

1,439

The intangible assets line includes Goodwill, amortizable intangible assets, and certain acquisition costs related to oil and

gas prospects.

Carrying amount after impairment

At 31 December 2023

At 31 December 2022

At 31 December 2021

(in USD million)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment 

Net

impairment

loss/

(reversal)

Exploration & Production Norway

887

588

3,201

(819)

5,379

(1,102)

Exploration & Production USA - onshore

0

0

546

(204)

1,979

48

Exploration & Production USA - offshore Gulf of Mexico

1,165

(290)

2,691

(882)

798

18

Europe and Asia

0

310

1,551

295

1,566

1,609

Marketing, Midstream & Processing

949

343

1,416

(895)

868

716

Renewables USA - offshore

134

300

0

0

0

0

Other

112

10

30

0

20

(7)

Total

3,247

1,261

9,435

(2,505)

10,611

1,282

XML

Joint arrangements and associates (Tables)

12 Months Ended

Dec. 31, 2023

Joint arrangements and associates [Abstract]

Equity accounted investments

Joint ventures and other equity accounted investments

(in USD million)

2023

2022

Net investments at 1 January

2,758

2,686

Net income/(loss) from equity accounted investments

(1)

620

Impairment

1)

(363)

(832)

Acquisitions and increase in capital

926

337

Dividend and other distributions

(286)

(210)

Other comprehensive income/(loss)

(10)

384

Divestments, derecognition and decrease in paid in capital

2)

(517)

(22)

Other

0

(205)

Net investments at 31 December

2,507

2,758

Mainly related to Renewable offshore wind industry in US, see also note 14 Impairments.

2)

 Mainly related to change in accounting treatment for Bandurria Sur (accounted for by proportionally consolidation from 1

st

 of April

2023).

XML

Financial investments and financial receivables (Tables)

12 Months Ended

Dec. 31, 2023

Financial investments and financial receivables [Abstract]

Disclosure of noncurrent financial assets explanatory

Non-current financial investments

At 31 December

(in USD million)

2023

2022

Bonds

1,863

1,448

Listed equity securities

1,035

794

Non-listed equity securities

543

491

Financial investments

3,441

2,733

Disclsoure of prepayments and financial receivables explanatory

Non-current prepayments and financial receivables

At 31 December

(in USD million)

2023

2022

Interest-bearing financial receivables 

341

1,658

Other interest-bearing receivables

40

66

Prepayments and other non-interest-bearing receivables

910

339

Prepayments and financial receivables

1,291

2,063

Disclosure of other current assets

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,846

12,373

Interest-bearing securities

11,378

17,504

Financial investments

29,224

29,876

XML

Inventories (Tables)

12 Months Ended

Dec. 31, 2023

Inventories [Abstract]

Disclosure of detailed information about inventories explanatory

At 31 December

(in USD million)

2023

2022

Crude oil

2,051

2,115

Petroleum products

380

451

Natural gas

54

127

Commodity inventories at the lower of cost and net realisable value

2,485

2,693

Natural gas held for trading purposes measured at fair value

810

1,994

Other

520

517

Total inventories

3,814

5,205

XML

Trade and other receivables (Tables)

12 Months Ended

Dec. 31, 2023

Trade and other receivables [Abstract]

Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables from contracts with customers

1)

10,706

15,213

Other current receivables

1,774

992

Collateral receivables

2)

2,186

3,468

Receivables from participation in joint operations and similar arrangements

471

661

Receivables from equity accounted associated companies and other related parties

1,056

1,276

Total financial trade and other receivables

16,193

21,611

Non-financial trade and other receivables

740

841

Trade and other receivables

16,933

22,452

1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses.

2) Mainly related to cash paid as security for a portion of Equinor's credit exposure.

XML

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2023

Cash and cash equivalents [Abstract]

Cash and cash equivalents

At 31 December

(in USD million)

2023

2022

Cash at bank available

2,295

2,220

Time deposits

1,337

836

Money market funds

1,875

3,106

Interest-bearing securities

2,563

3,276

Restricted cash and cash equivalents, including collateral deposits

1,572

6,140

Cash and cash equivalents

9,641

15,579

XML

Shareholders' equity, capital distribution and earnings per share (Tables)

12 Months Ended

Dec. 31, 2023

Shareholders' equity, capital distribution and earnings per share [Abstract]

Shareholder's Equity

Number of

shares

NOK per value

NOK

USD

Share capital at 1 January 2023

3,175,470,159

2.50

7,938,675,397.50

1,142,036,265

Capital reduction

(172,365,554)

2.50

(430,913,885.00)

(41,519,325)

Share capital at 31 December 2023

3,003,104,605

2.50

7,507,761,512.50

1,100,516,940

Number of

shares

NOK per value

Common Stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares

Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Employees share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

Dividends

At 31 December

(in USD million)

2023

2022

Dividends declared

10,783

7,549

USD per share or ADS

3.6000

2.4000

Dividends paid

10,906

5,380

USD per share or ADS

3.6000

1.6800

NOK per share

37.8522

16.4837

Share buy-back programme

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Equity impact of share buy-back programmes

(in USD million)

2023

2022

First tranche

330

330

Second tranche

550

440

Third tranche

550

605

Fourth tranche

550

605

Total open market share

1,980

1,980

Norwegian state share

1)

3,705

1,399

Total

5,685

3,380

1) Relates to second to fourth tranche of previous year programme and first tranche of current year programme.

Employees share saving plan

Employees share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

Earnings per share

Earnings per share

(in USD million)

2023

2022

Basic earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding

3,021

3,174

Basic earnings per share (in USD)

3.93

9.06

Diluted earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding, diluted

3,027

3,183

Diluted earnings per share (in USD)

3.93

9.03

XML

Finance debt (Tables)

12 Months Ended

Dec. 31, 2023

Finance debt [Abstract]

Disclosure of detailed information about borrowings

Non-current finance debt

Finance debt measured at amortised cost

Weighted average interest

rates in %

1)

Carrying amount in USD

millions at 31 December

Fair value in USD 

millions at 31 December

2)

2023

2022

2023

2022

2023

2022

Unsecured bonds

United States Dollar (USD)

3.82

3.82

15,705

17,190

15,037

16,167

Euro (EUR)

1.51

1.42

6,633

7,465

6,177

6,782

Great Britain Pound (GBP)

6.08

6.08

1,747

1,652

2,013

1,836

Norwegian Kroner (NOK)

4.18

4.18

295

304

302

311

Total unsecured bonds

24,380

26,612

23,529

25,097

Unsecured loans

Brazilian real (BRL)

10.10

-

179

-

179

-

Japanese Yen (JPY)

4.30

4.30

71

76

83

90

Total unsecured loans

250

76

262

90

Total

24,630

26,688

23,791

25,187

Non-current finance debt due within one year

2,400

2,547

2,415

2,597

Non-current finance debt

22,230

24,141

21,376

22,590

Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December and do

not include the effect of swap agreements.

2)

 Fair values are determined from external calculation models based on market observations from various sources, classified at

level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair

value measurement.

Disclosure of non-current finance debt maturity profile

Non-current finance debt maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

4,683

4,794

Year 4 and 5

4,511

4,510

After 5 years

13,035

14,837

Total repayment of non-current finance debt

22,230

24,141

Weighted average maturity (years - including current portion)

9

9

Weighted average annual interest rate (% - including current portion)

3.41

3.29

Disclosure of current finance debt

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities

458

1,571

Non-current finance debt due within one year

2,400

2,547

Other including US Commercial paper programme and bank overdraft

3,138

241

Total current finance debt

5,996

4,359

Weighted average interest rate (%)

3.77

2.22

Reconciliation of liabilities arising from financing activities

Reconciliation of cash flows from financing activities to finance line items in balance sheet 

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2023

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Repayment of finance debt

(2,818)

(2,818)

Repayment of lease liabilities

(1,422)

(1,422)

Dividend paid

(10,906)

(10,906)

Share buy-back

(5,589)

(5,589)

Net current finance debt and other

finance activities

1,385

1,287

(69)

(10)

2,593

Net cash flow from financing activities

(2,818)

1,385

1,287

(5,658)

(10)

(10,906)

(1,422)

(18,142)

Transfer to current portion

147

(147)

Effect of exchange rate changes

321

44

(5)

-

(25)

Dividend declared

10,783

Debt in RIO Energy

437

New leases

1,379

Other changes

2

354

(1)

2,617

19

(36)

(29)

Net other changes

907

251

(6)

2,617

19

10,747

1,325

At 31 December 2023

22,230

5,995

(2,185)

-

10

2,649

3,570

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

1)

Additional

paid in

capital

2)

Non-

controlling

interest

Dividend

payable

Lease

liabilities

3)

Total

At 1 January 2022

27,404

5,273

(1,577)

6,408

14

582

3,562

Repayment of finance debt

(250)

(250)

Repayment of lease liabilities

(1,366)

(1,366)

Dividend paid

(5,380)

(5,380)

Share buy-back

(3,315)

(3,315)

Net current finance debt and other

finance activities

-

(2,982)

(2,038)

(73)

(8)

(5,102)

Net cash flow from financing activities

(250)

(2,982)

(2,038)

(3,388)

(8)

(5,380)

(1,366)

(15,414)

Transfer to current portion

(2,297)

2,297

Effect of exchange rate changes

(710)

(78)

145

(3)

(149)

Dividend declared

7,549

New leases

1,644

Other changes

(7)

(151)

21

(2)

57

(24)

Net other changes

(3,014)

2,068

145

21

(5)

7,606

1,471

At 31 December 2022

24,140

4,359

(3,468)

3,041

1

2,808

3,667

Financial receivable collaterals are included in Trade and other receivables in the Consolidated balance sheet. See note 18

Trade and other receivables for more information.

2)

 Other changes in additional paid in capital have been moved to retained earnings. 

3)

 See note 25 Leases for more information.

XML

Pensions (Tables)

12 Months Ended

Dec. 31, 2023

Pensions [Abstract]

Changes in pension liabilities and plan assets during the year

Changes in pension liabilities and plan assets during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,664

9,358

Current service cost

145

183

Interest cost

318

105

Actuarial (gains)/losses and currency effects

338

(1,785)

Changes in notional contribution liability and other effects

56

67

Benefits paid

(284)

(258)

Losses/(gains) from curtailment, settlement or plan amendment

91

(5)

Pension liabilities at 31 December

8,328

7,664

Fair value of plan assets at 1 January

5,213

6,404

Interest income

190

116

Return on plan assets (excluding interest income)

202

(622)

Company contributions

211

104

Benefits paid

(141)

(121)

Losses (gains) from curtailment, settlement or plan amendment

113

(5)

Other effects

-

6

Foreign currency translation effects

(124)

(669)

Fair value of plan assets at 31 December

5,664

5,213

Net pension liability at 31 December

2,665

2,452

Represented by:

Asset recognised as non-current pension assets (funded plan)

1,260

1,219

Liability recognised as non-current pension liabilities (unfunded plans)

3,925

3,671

Pension liabilities specified by funded and unfunded pension plans

8,328

7,664

Funded

4,404

3,994

Unfunded

3,925

3,670

Actuarial assumptions

Actuarial assumptions

Assumptions used to determine

benefit obligations in %

Rounded to the nearest quartile

2023

2022

Discount rate

3.75

3.75

Rate of compensation increase

4.00

3.50

Expected rate of pension increase

3.25

2.75

Expected increase of social security base amount (G-amount)

3.75

3.25

Weighted-average duration of the defined benefit obligation

13.25

13.50

Sensitivity analysis

Discount rate

Expected rate of

pension increase

(in USD million)

0.50%

-0.50%

0.50%

-0.50%

Effect on:

Defined benefit obligation at 31 December 2023

(521)

587

494

(451)

Portfolio weighting

Target portfolio

weight

(in %)

2023

2022

Equity securities

33.6

32.9

30

-

38

Interest bearing investments

61.7

60.5

52

-

65

Real estate

4.7

6.6

5

-

10

Total

100.0

100.0

XML

Provisions and other liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Provisions and other liabilities [Abstract]

Disclosure of other provisions

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

Non-current portion at 31 December 2022

11,569

4,064

15,633

Current portion at 31 December 2022 reported as Trade, other payables and

provisions

165

494

659

Provisions and other liabilities at 31 December 2022

11,734

4,558

16,292

New or increased provisions and other liabilities

488

443

931

Change in estimates

845

25

870

Amounts charged against provisions and other liabilities

(126)

(301)

(427)

Effects of change in the discount rate

(276)

13

(263)

Reduction due to divestments

(403)

97

(306)

Accretion expenses

462

76

538

Reclassification, transfer and other

(174)

(1,387)

(1,561)

Foreign currency translation effects

(190)

62

(128)

Provisions and other liabilities at 31 December 2023

12,360

3,586

15,946

Non-current portion at 31 December 2023

12,171

3,133

15,304

Current portion at 31 December 2023 reported as Trade, other payables and

provisions

190

452

642

Other provisions maturity

Expected timing of cash outflows

(in USD million)

Asset retirement

obligations

Other 

provisions and

liabilities

Total

2024 - 2028

1,512

2,580

4,092

2029 - 2033

997

342

1,339

2034 - 2038

2,605

134

2,739

2039 - 2043

4,610

(42)

4,568

Thereafter

2,636

572

3,208

At 31 December 2023

12,360

3,586

15,946

XML

Trade, other payables and provisions (Tables)

12 Months Ended

Dec. 31, 2023

Trade, other payables and provisions [Abstract]

Detailed information about trade and other payables

At 31 December

(in USD million)

2023

2022

Trade payables

5,317

6,207

Non-trade payables and accrued expenses

2,210

2,688

Payables due to participation in joint operations and similar arrangements

2,283

2,074

Payables to equity accounted associated companies and other related parties

1,242

1,479

Total financial trade and other payables

11,052

12,449

Current portion of provisions and other non-financial payables

819

903

Trade, other payables and provisions

11,870

13,352

XML

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of reconciliation of liabilities arising from financing activities [line items]

Information related to lease payments and lease liabilities

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

95

Lease repayments 

(1,451)

(1,451)

(1,389)

(1,389)

Foreign currency translation effects

(25)

(149)

Lease liabilities at 31 December

3,570

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

Non-current lease liabilities maturity profile

Non-current lease liabilities maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

1,342

1,360

Year 4 and 5

470

483

After 5 years

478

566

Total repayment of non-current lease liabilities

2,291

2,409

Lease liabilities [Member]

Disclosure of reconciliation of liabilities arising from financing activities [line items]

Information related to lease payments and lease liabilities

Information related to lease payments and lease liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

95

Lease repayments 

(1,451)

(1,451)

(1,389)

(1,389)

Foreign currency translation effects

(25)

(149)

Lease liabilities at 31 December

3,570

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

XML

Other commitments, contingent liabilities and contingent assets (Tables)

12 Months Ended

Dec. 31, 2023

Oher commitments, contingent liabilities and contingent assets [Abstract]

Disclosure of commitments

(in USD million)

2024

2,659

2025

1,972

2026

1,615

2027

1,187

2028

1,010

Thereafter

6,775

Total other long-term commitments

15,218

XML

Related parties (Tables)

12 Months Ended

Dec. 31, 2023

Related parties [Abstract]

Outstanding balances to related parties split on SDFI and other related parties

At 31 December 2023

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

-

103

1,188

1,291

Trade and other receivables

1,007

49

15,877

16,933

Liabilities

Non-current provisions and other liabilities

850

-

14,454

15,304

Trade, other payables and provisions

1,195

47

10,628

11,870

Current finance debt 

893

-

5,103

5,996

At 31 December 2022

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

1,461

61

541

2,063

Trade and other receivables

1,103

173

21,176

22,452

Liabilities

Non-current provisions and other liabilities

2,072

-

13,561

15,633

Trade, other payables and provisions

1,419

60

11,873

13,352

Current finance debt 

-

-

4,359

4,359

XML

Financial instruments and fair value measurement (Tables)

12 Months Ended

Dec. 31, 2023

Financial instruments and fair value measurement [Abstract]

Disclosure of financial assets

At 31 December 2023

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

559

559

Non-current financial investments

16

75

3,366

3,441

Prepayments and financial receivables

16

341

950

1,291

Trade and other receivables

18

16,193

740

16,933

Current derivative financial instruments

1,378

1,378

Current financial investments

16

28,822

402

29,224

Cash and cash equivalents

19

7,767

1,875

9,641

Total 

53,198

7,580

1,690

62,467

At 31 December 2022

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

691

691

Non-current financial investments

16

117

2,616

2,733

Prepayments and financial receivables

16

1,658

404

2,063

Trade and other receivables

18

21,611

841

22,452

Current derivative financial instruments

4,039

4,039

Current financial investments

16

29,577

300

29,876

Cash and cash equivalents

19

12,473

3,106

15,579

Total 

65,436

10,752

1,245

77,433

Disclosure of financial liabilities

At 31 December 2023

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

22,230

22,230

Non-current derivative financial instruments

1,795

1,795

Trade, other payables and provisions

24

11,052

819

11,870

Current finance debt

21

5,996

5,996

Dividend payable

2,649

2,649

Current derivative financial instruments

1,619

1,619

Total 

41,927

3,414

819

46,159

At 31 December 2022

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

21

24,141

24,141

Non-current derivative financial instruments

2,376

2,376

Trade, other payables and provisions

24

12,449

903

13,352

Current finance debt

21

4,359

4,359

Dividend payable

2,808

2,808

Current derivative financial instruments

4,106

4,106

Total 

43,757

6,482

903

51,142

Disclosure of fair value measurement

(in USD million)

Non-current

financial

investments

Non-current

derivative

financial

instruments

- assets

Current

financial

investments

Current

derivative

financial

instruments

- assets

Cash

equivalents

Non-current

derivative

financial

instruments

- liabilities

Current

derivative

financial

instruments

- liabilities

Net fair

value

At 31 December 2023

Level 1

1,294

0

-

6

0

-

1,300

Level 2

1,528

104

402

1,195

1,875

(1,754)

(1,577)

1,773

Level 3

543

455

177

(42)

(41)

1,092

Total fair value

3,366

559

402

1,378

1,875

(1,795)

(1,619)

4,166

At 31 December 2022

Level 1

903

-

-

25

-

(60)

868

Level 2

1,222

97

300

3,722

3,106

(2,352)

(3,952)

2,143

Level 3

491

594

292

(24)

(94)

1,259

Total fair value

2,616

691

300

4,039

3,106

(2,376)

(4,106)

4,270

XML

Organisation (Details)	12 Months Ended
	Dec. 31, 2023
Organisation [Abstract]
Name of reporting entity or other means of identification	Equinor ASA
Domicile of entity	Norway
Country of incorporation	Norway
Address of entity's registered office	Forusbeen 50, N-4035 Stavanger, Norway
Description of nature of entity's operations and principal activities	Equinor’s objective is to develop, produce and market various forms of energy and derived products and services, as well as other businesses. The activities may also be carried out through participation in or cooperation with other companies.
Ownership interest in Equinor group's oil and gas activities and net assets	100.00%

XML

Climate change and energy transition - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) $ / bbl $ / t kr / t € / t $ / tCO2	Dec. 31, 2022 USD ($) € / t	Dec. 31, 2021 USD ($) € / t	Dec. 31, 2023 NOK (kr) € / $	Dec. 31, 2023 USD ($) € / $	Dec. 31, 2022 NOK (kr)	Dec. 31, 2022 USD ($)
Climate changes [line items]
EU ETS price | € / t	86	81	25
Transportation cost per barrel | $ / bbl	2
Expense related to carbon emissions and purchase	$ 486,000,000	$ 510,000,000	$ 428,000,000
Property, plant and equipment					$ 58,822,000,000		$ 56,498,000,000
Investments	$ 14,500,000,000	$ 9,994,000,000	$ 8,506,000,000
Share capital				kr 7,507,761,512.50	$ 1,100,516,940	kr 7,938,675,397.50	1,142,036,265
Equinor's assumptions for currency rates | € / $				1,176	1,176
Percent of current portfolio with only sanctioned projects being committed				50.00%	50.00%
Bayou Bend [Member]
Climate changes [line items]
Percentage of share acquired				25.00%	25.00%
Commodity price sensitivity [Member]
Climate changes [line items]
Percentage of reasonably possible change, market risk	30.00%	30.00%
Commodity price sensitivity [Member] | NZE by 2050 scenario [Member]
Climate changes [line items]
Impairment exposure due to net zero emission					$ 10,000,000,000.0
Commodity price sensitivity [Member] | Announced pledged scenario [Member]
Climate changes [line items]
Potential impairments associated with scenarios increase amount	$ 500,000,000
High range value [Member] | Commodity price sensitivity [Member] | Announced pledged scenario [Member]
Climate changes [line items]
Impairment exposure due to net zero emission					$ 3,000,000,000.0
Investments in CCS [Member]
Climate changes [line items]
Investments	179,000,000	$ 36,000,000
Eelectrification of oil and gas assets [Member]
Climate changes [line items]
Investments	200,000,000	250,000,000
REN [Member]
Climate changes [line items]
Investments	$ 2,007,000,000	$ 298,000,000
MMP and REN [Member]
Climate changes [line items]
Percent of total book value of non-current segment assets and equity accounted investments	12.00%
Next two years [Member]
Climate changes [line items]
Internal carbon price | $ / t	82
EU ETS price | € / t	80
2030 [Member]
Climate changes [line items]
Internal carbon price | $ / t	115
Expected tax increase on carbon emissions maximum | kr / t	2,000
Percent of reduction aimed in net carbon intensity				20.00%	20.00%
2030 [Member] | Commodity price sensitivity [Member] | NZE by 2050 scenario [Member]
Climate changes [line items]
EU ETS price | $ / tCO2	146
2030 [Member] | Commodity price sensitivity [Member] | Announced pledged scenario [Member]
Climate changes [line items]
EU ETS price | $ / tCO2	141
2035 [Member]
Climate changes [line items]
Percent of reduction aimed in net carbon intensity				40.00%	40.00%
2040 [Member]
Climate changes [line items]
EU ETS price | € / t	130	109
2050 [Member]
Climate changes [line items]
EU ETS price | € / t	150	135
2050 [Member] | Commodity price sensitivity [Member] | NZE by 2050 scenario [Member]
Climate changes [line items]
EU ETS price | $ / tCO2	261
2050 [Member] | Commodity price sensitivity [Member] | Announced pledged scenario [Member]
Climate changes [line items]
EU ETS price | $ / tCO2	208
Period 2024-2030 [Member]
Climate changes [line items]
Percent of proved oil and gas reserves, expected to be produced				65.00%	65.00%
Period 2024-2050 [Member]
Climate changes [line items]
Percent of proved oil and gas reserves, expected to be produced				99.00%	99.00%
Oil and Gas prospects, signature bonuses and the capitalised exploration costs [Member]
Climate changes [line items]
Total carrying value of intangible assets					$ 3,205,000,000		3,634,000,000
Percentage increase decrease in emissions rate	(50.00%)
Asset retirement obligations [Member]
Climate changes [line items]
Potential financial effect of shorter production period					$ 1,200,000,000		$ 1,000,000,000

XML

Climate change and energy transition - Schedule of number of EU ETS quotas utilised and related monetary amounts recognised (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) Quotas	Dec. 31, 2022 USD ($) Quotas
Number of EU ETS quotas in thousands
Opening balance	10,782	11,026
Allocated free quotas	356	3,697
Purchased quotas on market	7,822	5,985
Sold quotas on market	0	0
Returned excess free quotas	(544)	0
Settled quotas (offset against emissions)	(9,840)	(9,926)
Closing balance	8,576	10,782
Value of quotas [Abstract]
Opening balance | $	$ 20	$ 59
Purchased quotas on market | $	708	509
Settled quotas (offset against emissions) | $	(635)	(548)
Closing balance | $	$ 93	$ 20

XML

Climate change and energy transition - Schedule of investments included as additions to PP&E, intangibles and equity accounted investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	$ 14,500	$ 9,994	$ 8,506
REN [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	2,007	298
REN [Member] | Offshore [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	880	146
REN [Member] | Onshore [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	1,127	152
LCS [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	179	36
REN and LCS [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	$ 2,186	$ 334

XML

Climate change and energy transition - Price sensitivity (Details) $ in Billions	12 Months Ended
	Dec. 31, 2023 USD ($) $ / bbl $ / MMBTU € / t $ / tCO2	Dec. 31, 2022 € / t	Dec. 31, 2021 € / t
Disclosure of nature and extent of risks arising from financial instruments [line items]
EU ETS price | € / t	86	81	25
2050 [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
EU ETS price | € / t	150	135
Commodity price sensitivity [Member] | NZE by 2050 scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Illustrative potential impairment (USD) | $	$ 10.0
Commodity price sensitivity [Member] | Announced pledged scenario [Member] | High range value [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Illustrative potential impairment (USD) | $	$ 3.0
Commodity price sensitivity [Member] | 2030 [Member] | Management's price assumptions [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	78
TTF | $ / MMBTU	9.1
EU ETS price | $ / tCO2	123
Commodity price sensitivity [Member] | 2030 [Member] | NZE by 2050 scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	46
TTF | $ / MMBTU	4.5
EU ETS price | $ / tCO2	146
Commodity price sensitivity [Member] | 2030 [Member] | Announced pledged scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	79
TTF | $ / MMBTU	6.8
EU ETS price | $ / tCO2	141
Commodity price sensitivity [Member] | 2040 [Member] | Management's price assumptions [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	73
TTF | $ / MMBTU	9.5
EU ETS price | $ / tCO2	150
Commodity price sensitivity [Member] | 2040 [Member] | NZE by 2050 scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	37
TTF | $ / MMBTU	4.4
EU ETS price | $ / tCO2	214
Commodity price sensitivity [Member] | 2040 [Member] | Announced pledged scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	72
TTF | $ / MMBTU	6.2
EU ETS price | $ / tCO2	182
Commodity price sensitivity [Member] | 2050 [Member] | Management's price assumptions [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	68
TTF | $ / MMBTU	9.5
EU ETS price | $ / tCO2	176
Commodity price sensitivity [Member] | 2050 [Member] | NZE by 2050 scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	28
TTF | $ / MMBTU	4.3
EU ETS price | $ / tCO2	261
Commodity price sensitivity [Member] | 2050 [Member] | Announced pledged scenario [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Brent Blend oil price | $ / bbl	65
TTF | $ / MMBTU	5.6
EU ETS price | $ / tCO2	208

XML

Financial risk and capital management - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) Core_Banks	Dec. 31, 2022 USD ($)
Disclosure of offsetting of financial assets [line items]
Borrowings	$ 24,630	$ 26,688
Liabilities not offsetting under netting arrangements	12,060	15,326
Financial instruments offset under netting arrangements	18,129	26,341
Lease Liabilities	3,570	3,668
Statoil's Captive Insurance Company [Member]
Disclosure of offsetting of financial assets [line items]
Cash held as collateral	2,030	$ 6,538
Liquidity risk [Member]
Disclosure of offsetting of financial assets [line items]
Commercial Papers Programme	5,000
Revolving credit facility	$ 6,000
Number of banks | Core_Banks	19
Credit facility maturity date	maturing in 2026
Maximum Percentage Of Repayment Of Long Term Funding		5.00%
Commodity price sensitivity [Member]
Disclosure of offsetting of financial assets [line items]
Percentage of reasonably possible change, market risk	30.00%	30.00%
Currency risk sensitivity [Member]
Disclosure of offsetting of financial assets [line items]
Percentage of reasonably possible change, market risk	11.00%	12.00%
Interest rate sensitivity [Member]
Disclosure of offsetting of financial assets [line items]
Percentage of reasonably possible change, market risk	1.30%	1.20%
Equity price risk [Member]
Disclosure of offsetting of financial assets [line items]
Percentage of reasonably possible change, market risk	35.00%	35.00%
Trade and other receivables [Member]
Disclosure of offsetting of financial assets [line items]
Financial instruments offset under netting arrangements	$ 14,006	$ 18,143
Trade and other receivables [Member] | Credit risk [Member]
Disclosure of offsetting of financial assets [line items]
Percentage of overdue trade and other receivables for 30 days and more	1.00%

XML

Financial risk and capital management - Sensitivity analysis of market risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	$ 351	$ (1,745)	$ (708)
Commodity price sensitivity [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible change, market risk	30.00%	30.00%
Gains (losses) derivative financial instruments	$ (1,041)	$ 739	$ 951
Commodity price sensitivity [Member] | Crude oil and refined products [Member] | Minimum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	442	666
Commodity price sensitivity [Member] | Crude oil and refined products [Member] | Maximum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(442)	(666)
Commodity price sensitivity [Member] | Natural gas and electricity [Member] | Minimum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	86	(3)
Commodity price sensitivity [Member] | Natural gas and electricity [Member] | Maximum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	$ (52)	$ 140
Equity price risk [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible change, market risk	35.00%	35.00%
Equity price risk [Member] | Minimum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net gains (losses)	$ (552)	$ (450)
Equity price risk [Member] | Maximum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net gains (losses)	$ 552	$ 450
Currency risk sensitivity [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible change, market risk	11.00%	12.00%
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	$ 1,519
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	406
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	903
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(413)
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(418)
Currency risk sensitivity [Member] | Impact From An 11% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(92)
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(1,519)
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(406)
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	(903)
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	413
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	418
Currency risk sensitivity [Member] | Impact From An 11% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments	$ 92
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		$ 3,552
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		837
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		750
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(889)
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(259)
Currency risk sensitivity [Member] | Impact From An 12% Strengthening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(389)
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(3,552)
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(837)
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through OCI [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		(750)
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		889
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		259
Currency risk sensitivity [Member] | Impact From An 12% Weakening Of Given Currency VS USD On Shareholders Equity Through P&L [Member] | Great Britain Pound (GBP) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Gains (losses) derivative financial instruments		$ 389
Interest rate sensitivity [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible change, market risk	1.30%	1.20%
Interest rate sensitivity [Member] | Minimum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net gains (losses)	$ 336	$ 369
Interest rate sensitivity [Member] | Maximum (%) [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net gains (losses)	$ (333)	$ (366)

XML

Financial risk and capital management - Undiscounted contractual cash flows (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	$ 49,442	$ 52,202
Lease liabilities	3,776	3,835
Derivative financial liabilities	3,253	4,211
Year 1 [Member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	20,209	20,172
Lease liabilities	1,369	1,325
Derivative financial liabilities	857	1,065
Year 2 and 3 [Member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	6,035	6,292
Lease liabilities	1,434	1,421
Derivative financial liabilities	636	752
Year 4 and 5 [Member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	5,601	5,785
Lease liabilities	496	504
Derivative financial liabilities	404	486
Year 6 to 10 [Member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	6,846	8,749
Lease liabilities	405	465
Derivative financial liabilities	1,016	1,202
After 10 years [Member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non-derivative financial liabilities	10,751	11,204
Lease liabilities	72	120
Derivative financial liabilities	$ 340	$ 706

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Financial risk and capital management - Credit risk exposure and grading (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of internal credit grades [line items]
Description of internal credit ratings process	Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where Equinor has material credit exposure to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor’s assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements and other relevant business information. All counterparties are re-assessed regularly.
Non-current financial receivable [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	$ 341	$ 1,659
Trade and other receivables [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	16,193	21,611
Non-current derivative financial instruments [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	559	690
Current derivative financial instrument [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	1,378	4,039
Investment grade, rated A or above [Member] | Non-current financial receivable [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	193	1,633
Investment grade, rated A or above [Member] | Trade and other receivables [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	5,857	6,125
Investment grade, rated A or above [Member] | Non-current derivative financial instruments [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	305	390
Investment grade, rated A or above [Member] | Current derivative financial instrument [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	565	1,715
Other investment grade [Member] | Non-current financial receivable [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	8	12
Other investment grade [Member] | Trade and other receivables [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	5,132	8,725
Other investment grade [Member] | Non-current derivative financial instruments [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	7	41
Other investment grade [Member] | Current derivative financial instrument [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	565	1,393
Non-investment grade or not rated [Member] | Non-current financial receivable [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	140	14
Non-investment grade or not rated [Member] | Trade and other receivables [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	5,204	6,761
Non-investment grade or not rated [Member] | Non-current derivative financial instruments [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	247	259
Non-investment grade or not rated [Member] | Current derivative financial instrument [Member]
Disclosure of internal credit grades [line items]
Financial assets subject to credit exposure	$ 248	$ 931

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Financial risk and capital management - Master netting agreements for financial assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of offsetting of financial assets [line items]
Gross amounts of recognised financial assets	$ 38,619	$ 71,065
Gross amounts offset in the balance sheet	20,488	44,725
Net amounts presented in the balance sheet	18,129	26,341
Amounts of remaining rights to set-off not qualifying for offsetting	2,863	5,176
Net amount	15,266	21,164
Disclosure of offsetting of financial liabilities [line items]
Gross amounts of recognised financial liabilities	35,412	65,226
Gross amounts offset in the balance sheet	20,488	44,725
Net amounts presented in the balance sheet	14,923	20,502
Amounts of remaining rights to set-off not qualifying for offsetting	2,863	5,176
Net amount	12,060	15,326
Trade payables [Member]
Disclosure of offsetting of financial liabilities [line items]
Gross amounts of recognised financial liabilities	14,184	19,913
Gross amounts offset in the balance sheet	3,133	7,464
Net amounts presented in the balance sheet	11,051	12,449
Amounts of remaining rights to set-off not qualifying for offsetting	0	0
Net amount	11,051	12,449
Collateral liabilities [Member]
Disclosure of offsetting of financial liabilities [line items]
Gross amounts of recognised financial liabilities	7,791	13,936
Gross amounts offset in the balance sheet	7,333	12,365
Net amounts presented in the balance sheet	458	1,571
Amounts of remaining rights to set-off not qualifying for offsetting	458	1,571
Net amount	0	0
Derivative financial instruments [Member]
Disclosure of offsetting of financial liabilities [line items]
Gross amounts of recognised financial liabilities	13,437	31,377
Gross amounts offset in the balance sheet	10,023	24,895
Net amounts presented in the balance sheet	3,414	6,482
Amounts of remaining rights to set-off not qualifying for offsetting	2,405	3,605
Net amount	1,009	2,877
Trade receivables [Member]
Disclosure of offsetting of financial assets [line items]
Gross amounts of recognised financial assets	17,139	25,607
Gross amounts offset in the balance sheet	3,133	7,464
Net amounts presented in the balance sheet	14,006	18,143
Amounts of remaining rights to set-off not qualifying for offsetting	0	0
Net amount	14,006	18,143
Collateral receivables [member]
Disclosure of offsetting of financial assets [line items]
Gross amounts of recognised financial assets	8,713	16,923
Gross amounts offset in the balance sheet	6,526	13,455
Net amounts presented in the balance sheet	2,186	3,468
Amounts of remaining rights to set-off not qualifying for offsetting	2,186	3,468
Net amount	0	0
Derivative financial instruments [Member]
Disclosure of offsetting of financial assets [line items]
Gross amounts of recognised financial assets	12,767	28,535
Gross amounts offset in the balance sheet	10,829	23,806
Net amounts presented in the balance sheet	1,937	4,730
Amounts of remaining rights to set-off not qualifying for offsetting	677	1,708
Net amount	$ 1,260	$ 3,022

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Financial risk and capital management - Captial Management (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Capital management
Net interest-bearing debt adjusted, including lease liabilities (ND1)	$ (5,040)	$ (6,750)
Net interest-bearing debt adjusted (ND2)	(8,610)	(10,417)
Capital employed adjusted, including lease liabilities (CE1)	43,460	47,239
Capital employed adjusted (CE2)	$ 39,890	$ 43,571
Net debt to capital employed adjusted, including lease liabilities (ND1/CE1)	(11.60%)	(14.30%)
Net debt to capital employed adjusted (ND)/(CE)	(21.60%)	(23.90%)

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Segments - Segment Data (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of operating segments [line items]
Revenues third party	$ 106,848	$ 149,004	$ 88,744
Net income/(loss) from equity accounted investments	(1)	620	259
Total revenues and other income	107,174	150,806	90,924
Purchases (net of inventory variation)	(48,175)	(53,806)	(35,160)
Operating, selling, general and administrative expenses	(11,800)	(10,593)	(9,378)
Depreciation and amortisation	(9,373)	(8,878)	(10,432)
Net impairment (losses)/reversals	1,260	2,487	(1,287)
Exploration expenses	(795)	(1,205)	(1,004)
Total Operating expenses	(71,404)	(71,995)	(57,261)
Net operating income/(loss)	35,770	78,811	33,663
Additions to PP&E, intangibles and equity accounted investments	14,500	9,994	8,506
Balance sheet information [abstract]
Equity accounted investments	2,508	2,758	2,686
Noncurrent Assets	81,525	79,851	84,618
Assets classified as held for sale	1,064	1,018	676
REN [Member]
Disclosure of operating segments [line items]
Additions to PP&E, intangibles and equity accounted investments	2,007	298
Unallocated amounts [Member]
Balance sheet information [abstract]
Noncurrent Assets	14,487	15,437	13,406
Segments [Member]
Disclosure of operating segments [line items]
Net income/(loss) from equity accounted investments	(1)	620	259
Other income	327	1,182	1,921
Balance sheet information [abstract]
Noncurrent Assets	64,530	61,656	68,527
Segments [Member] | E&P- Norway [Member]
Disclosure of operating segments [line items]
Revenues third party	230	304	261
Net income/(loss) from equity accounted investments	0	0	0
Other income	111	994	154
Total revenues and other income	38,340	75,930	39,386
Purchases (net of inventory variation)	0	0	0
Operating, selling, general and administrative expenses	(3,759)	(3,782)	(3,653)
Depreciation and amortisation	(4,429)	(4,986)	(6,002)
Net impairment (losses)/reversals	588	819	1,102
Exploration expenses	(476)	(366)	(363)
Total Operating expenses	(9,253)	(8,315)	(8,915)
Net operating income/(loss)	29,087	67,614	30,471
Additions to PP&E, intangibles and equity accounted investments	5,939	4,922	4,943
Balance sheet information [abstract]
Equity accounted investments	3	3	3
Noncurrent Assets	28,915	28,510	36,502
Assets classified as held for sale	0	0	0
Segments [Member] | E&P International [Member]
Disclosure of operating segments [line items]
Revenues third party	993	1,099	1,115
Net income/(loss) from equity accounted investments	28	172	214
Other income	1	35	5
Total revenues and other income	7,032	7,431	5,565
Purchases (net of inventory variation)	(70)	(116)	(58)
Operating, selling, general and administrative expenses	(2,176)	(1,698)	(1,405)
Depreciation and amortisation	(2,123)	(1,445)	(1,734)
Net impairment (losses)/reversals	310	(286)	(1,587)
Exploration expenses	(20)	(638)	(451)
Total Operating expenses	(4,700)	(4,183)	(5,237)
Net operating income/(loss)	2,332	3,248	329
Additions to PP&E, intangibles and equity accounted investments	4,376	2,623	1,834
Balance sheet information [abstract]
Equity accounted investments	0	550	1,417
Noncurrent Assets	17,977	15,868	15,422
Assets classified as held for sale	1,064	1,018	676
Segments [Member] | E&P USA [Member]
Disclosure of operating segments [line items]
Revenues third party	277	305	377
Net income/(loss) from equity accounted investments	0	0	0
Other income	32	0	0
Total revenues and other income	4,319	5,523	4,149
Purchases (net of inventory variation)	0	0	0
Operating, selling, general and administrative expenses	(1,178)	(938)	(1,074)
Depreciation and amortisation	(1,779)	(1,422)	(1,665)
Net impairment (losses)/reversals	(290)	1,060	(69)
Exploration expenses	(299)	(201)	(190)
Total Operating expenses	(2,966)	(1,501)	(2,998)
Net operating income/(loss)	1,353	4,022	1,150
Additions to PP&E, intangibles and equity accounted investments	1,206	764	690
Balance sheet information [abstract]
Equity accounted investments	0	0	0
Noncurrent Assets	11,049	11,311	11,406
Assets classified as held for sale	0	0	0
Segments [Member] | MMP [Member]
Disclosure of operating segments [line items]
Revenues third party	105,242	147,164	86,883
Net income/(loss) from equity accounted investments	12	406	22
Other income	23	9	168
Total revenues and other income	105,908	148,105	87,393
Purchases (net of inventory variation)	(95,769)	(139,916)	(80,873)
Operating, selling, general and administrative expenses	(4,916)	(4,591)	(3,753)
Depreciation and amortisation	(897)	(881)	(869)
Net impairment (losses)/reversals	343	895	(735)
Exploration expenses	0	0	0
Total Operating expenses	(101,925)	(144,493)	(86,230)
Net operating income/(loss)	3,984	3,612	1,163
Additions to PP&E, intangibles and equity accounted investments	844	1,212	517
Balance sheet information [abstract]
Equity accounted investments	783	688	113
Noncurrent Assets	3,997	4,619	4,006
Assets classified as held for sale	0	0	0
Segments [Member] | REN [Member]
Disclosure of operating segments [line items]
Revenues third party	20	16	8
Net income/(loss) from equity accounted investments	(33)	58	16
Other income	18	111	1,386
Total revenues and other income	17	185	1,411
Purchases (net of inventory variation)	0	0	0
Operating, selling, general and administrative expenses	(462)	(265)	(163)
Depreciation and amortisation	(12)	(4)	(3)
Net impairment (losses)/reversals	300	0	0
Exploration expenses	0	0	0
Total Operating expenses	(774)	(269)	(166)
Net operating income/(loss)	(757)	(84)	1,245
Additions to PP&E, intangibles and equity accounted investments	2,007	298	457
Balance sheet information [abstract]
Equity accounted investments	1,665	1,452	1,108
Noncurrent Assets	1,575	316	157
Assets classified as held for sale	0	0	0
Segments [Member] | Other [Member]
Disclosure of operating segments [line items]
Revenues third party	85	115	99
Net income/(loss) from equity accounted investments	(8)	(16)	7
Other income	142	33	208
Total revenues and other income	253	187	355
Purchases (net of inventory variation)	(1)	0	(1)
Operating, selling, general and administrative expenses	(201)	(223)	(432)
Depreciation and amortisation	(133)	(142)	(158)
Net impairment (losses)/reversals	10	0	2
Exploration expenses	0	0	0
Total Operating expenses	(345)	(365)	(590)
Net operating income/(loss)	(92)	(178)	(234)
Additions to PP&E, intangibles and equity accounted investments	128	176	64
Balance sheet information [abstract]
Equity accounted investments	57	65	45
Noncurrent Assets	1,018	1,031	1,032
Assets classified as held for sale	0	0	0
Eliminations [Member]
Disclosure of operating segments [line items]
Revenues third party	0	0	0
Net income/(loss) from equity accounted investments	0	0	0
Other income	0	0	0
Total revenues and other income	(48,695)	(86,554)	(47,335)
Purchases (net of inventory variation)	47,665	86,227	45,772
Operating, selling, general and administrative expenses	893	904	1,102
Depreciation and amortisation	0	0	0
Net impairment (losses)/reversals	0	0	0
Exploration expenses	0	0	0
Total Operating expenses	48,558	87,130	46,873
Net operating income/(loss)	(137)	577	(461)
Additions to PP&E, intangibles and equity accounted investments	0	0	0
Balance sheet information [abstract]
Equity accounted investments	0	0	0
Noncurrent Assets	0	0	0
Assets classified as held for sale	0	0	0
Eliminations [Member] | E&P- Norway [Member]
Disclosure of operating segments [line items]
Total revenues and other income	(37,999)	(74,631)	(38,972)
Eliminations [Member] | E&P International [Member]
Disclosure of operating segments [line items]
Total revenues and other income	(6,009)	(6,124)	(4,230)
Eliminations [Member] | E&P USA [Member]
Disclosure of operating segments [line items]
Total revenues and other income	(4,009)	(5,217)	(3,771)
Eliminations [Member] | MMP [Member]
Disclosure of operating segments [line items]
Total revenues and other income	(633)	(527)	(321)
Eliminations [Member] | REN [Member]
Disclosure of operating segments [line items]
Total revenues and other income	(12)	0	0
Eliminations [Member] | Other [Member]
Disclosure of operating segments [line items]
Total revenues and other income	$ (33)	$ (55)	$ (41)

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Segments - Non current assets by country (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of geographical areas [line items]
Non-current assets	$ 67,038	$ 64,414
Norway [Member]
Disclosure of geographical areas [line items]
Non-current assets	32,977	33,242
United States [Member]
Disclosure of geographical areas [line items]
Non-current assets	12,587	12,343
Brazil [Member]
Disclosure of geographical areas [line items]
Non-current assets	10,871	9,400
UK [Member]
Disclosure of geographical areas [line items]
Non-current assets	5,535	3,688
Azerbaijan [Member]
Disclosure of geographical areas [line items]
Non-current assets	1,157	1,171
Canada [Member]
Disclosure of geographical areas [line items]
Non-current assets	1,103	895
Angola [Member]
Disclosure of geographical areas [line items]
Non-current assets	973	497
Algeria [Member]
Disclosure of geographical areas [line items]
Non-current assets	648	615
Argentina [Member]
Disclosure of geographical areas [line items]
Non-current assets	474	622
Denmark [Member]
Disclosure of geographical areas [line items]
Non-current assets	447	270
Other Countries [Member]
Disclosure of geographical areas [line items]
Non-current assets	$ 265	$ 1,672

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Acquisitions and disposals - acquisitions (Details) € in Millions, £ in Millions, $ in Millions					1 Months Ended	12 Months Ended
	Nov. 03, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jan. 26, 2023 USD ($)	Sep. 01, 2022 GBP (£)	May 31, 2022 USD ($)	Dec. 31, 2023	Mar. 31, 2023 USD ($)	Jan. 26, 2023 EUR (€)	Jan. 26, 2023 USD ($)	Sep. 01, 2022 USD ($)
Disclosure Of Business Combinations [Line Items]
Total purchase price							$ 362
Ownership interest in Equinor group's oil and gas activities and net assets						100.00%
BeGreen Solar Aps [Member]
Disclosure Of Business Combinations [Line Items]
Percentage of share acquired								100.00%	100.00%
Total purchase price								€ 235	$ 252
BeGreen Solar Aps [Member] | REN [Member]
Disclosure Of Business Combinations [Line Items]
Increase in intangible assets			$ 423
Triton Power [Member]
Disclosure Of Business Combinations [Line Items]
Total purchase price				£ 120						$ 141
Triton Power [Member] | Development and Production International & Marketing, Midstream and Processing [Member] | SSE Thermal [Member]
Disclosure Of Business Combinations [Line Items]
Ownership interest in joint venture				50.00%
Statfjord licence shares [Member]
Disclosure Of Business Combinations [Line Items]
Cash consideration					$ 168
Statfjord licence shares [Member] | Maximum (%) [Member]
Disclosure Of Business Combinations [Line Items]
Percentage of share acquired					48.78%
Statfjord licence shares [Member] | Minimum (%) [Member]
Disclosure Of Business Combinations [Line Items]
Percentage of share acquired					11.56%
Statfjord licence shares [Member] | E&P International [Member]
Disclosure Of Business Combinations [Line Items]
Increase in property plant and equipment resulting from business combination					$ 98
Reduction of deferred tax liability					86
Increase in asset retirement obligation					241
Statfjord licence shares [Member] | E&P Norway and E&P International segments [Member]
Disclosure Of Business Combinations [Line Items]
Increase in property plant and equipment resulting from business combination					98
Reduction of deferred tax liability					298
Increase in asset retirement obligation					390
Increase in taxes payable					$ 98
Rio Energy [Member]
Disclosure Of Business Combinations [Line Items]
Percentage of share acquired	100.00%
Total purchase price	$ 82
Increase in property plant and equipment resulting from business combination	350
Capital contributions to acquirer	$ 268
Suncor Energy UK Limited [Member]
Disclosure Of Business Combinations [Line Items]
Percentage of share acquired		100.00%
Total purchase price		$ 847
Increase in property plant and equipment resulting from business combination		1,490
Increase in deferred tax liability		$ 672
Suncor Energy UK Limited [Member] | Buzzard Oil Field [Member]
Disclosure Of Business Combinations [Line Items]
Ownership interest in joint operation		29.89%
Suncor Energy UK Limited [Member] | Rosebank Development [Member]
Disclosure Of Business Combinations [Line Items]
Ownership interest in joint operation		40.00%

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Acquisitions and disposals - divestitures (Details) £ in Millions, $ in Millions						1 Months Ended	12 Months Ended
	Dec. 22, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Feb. 10, 2022 GBP (£)	Feb. 10, 2022 USD ($)	Feb. 28, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Divestments [Line Items]
Proportion of ownership interest divested		100.00%
Exploration expenses							$ 795	$ 1,205	$ 1,004
Net income/(loss) from equity accounted investments							$ (1)	$ 620	$ 259
Gain (loss) on disposal of assets or discontinued operations		$ (258)
Proceeds from extraordinary dividend and repayment of paid-in capital		371
Total consideration		$ 362
Investment In Azerbaijan [Member]
Divestments [Line Items]
Impairment loss recognised in profit or loss	$ 310
Azeri Chirag Gunashli [Member]
Divestments [Line Items]
Additional ownership interest held for sale	7.27%
Baku-Tbilisi-Ceyhan [Member]
Divestments [Line Items]
Additional ownership interest held for sale	8.71%
Karabagh Oil Field [Member]
Divestments [Line Items]
Additional ownership interest held for sale	50.00%
Ekofisk and Martin Linge [Member]
Divestments [Line Items]
Proceeds from divesture/sale			$ 293
Proportion of voting rights held in joint operation			51.00%
Decrease in property, plant and equipment			$ 1,493
Decrease in deferred tax liabilities through sale of business			597
Decrease in asset retirement obligation through sale of business			376
Decrease in taxes payable through sale of business			$ 686
Ekofisk and Martin Linge [Member] | Norpipe Oil [Member]
Divestments [Line Items]
Proportion of ownership interest divested			19.00%
Ekofisk and Martin Linge [Member] | E&P- Norway [Member]
Divestments [Line Items]
Gain (loss) on disposal of assets or discontinued operations			$ 655
Investments In Russia [Member] | E&P International and the MMP [Member]
Divestments [Line Items]
Impairment loss recognised in profit or loss						$ 1,083
Investments In Russia [Member] | E&P International and the MMP [Member] | Property, plant and equipment [Member]
Divestments [Line Items]
Impairment loss recognised in profit or loss						251
Investments In Russia [Member] | E&P International and the MMP [Member] | Equity accounted investments [Member]
Divestments [Line Items]
Impairment loss recognised in profit or loss						$ 832
Dogger Bank Farm C [Member]
Divestments [Line Items]
Proportion of ownership interest divested				10.00%	10.00%
Proceeds from divesture/sale				£ 68	$ 91
Ownership interest in joint venture				40.00%	40.00%
Gain (loss) on disposal of assets or discontinued operations				£ 65	$ 87

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Total revenues and other income - Revenues from contracts with customers and other revenues (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of geographical areas [line items]
Revenues from contracts with customers	$ 106,132	$ 150,262	$ 88,247
Taxes paid in kind	342	412	345
Physically settled commodity derivatives	1,331	(2,534)	(1,075)
Gain/(loss) on commidity derivates	351	(1,745)	(708)
Change in fair value of trading inventory	(334)	(194)	0
Other revenues	418	319	276
Total other revenues	716	(1,258)	497
Revenues	106,848	149,004	88,744
Net income/(loss) from equity accounted investments	(1)	620	259
Other Income	327	1,182	1,921
Total revenues and other income	107,174	150,806	90,924
Commodity [Member]
Disclosure of geographical areas [line items]
Gain/(loss) on commidity derivates	$ (1,041)	$ 739	$ 951
Norway [Member]
Disclosure of geographical areas [line items]
Percentage of entity's revenue	79.00%	84.00%	81.00%
United States [Member]
Disclosure of geographical areas [line items]
Percentage of entity's revenue	18.00%	13.00%	13.00%
Crude oil [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	$ 56,861	$ 58,524	$ 38,307
Natural gas [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	26,386	65,232	28,050
Refined products [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	10,083	11,093	11,473
Natural gas liquids [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	8,345	9,240	8,490
Natural gas liquids [Member] | European [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	23,174	58,239	24,900
Natural gas liquids [Member] | North America [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	1,111	2,884	1,783
Natural gas liquids [Member] | Other incl LNG [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	2,102	4,109	1,368
Trasnsportation [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	1,425	1,470	921
Other sales [Member]
Disclosure of geographical areas [line items]
Revenues from contracts with customers	$ 3,032	$ 4,702	$ 1,006

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Salaries and personnel expenses (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Employees	Dec. 31, 2022 USD ($) Employees	Dec. 31, 2021 USD ($) Employees
Salaries and personnel expenses [Abstract]
Salaries	$ 2,876,000,000	$ 2,875,000,000	$ 2,962,000,000
Pension costs	441,000,000	458,000,000	488,000,000
Payroll tax	511,000,000	433,000,000	414,000,000
Other compensations and social costs	375,000,000	324,000,000	288,000,000
Total payroll costs	$ 4,203,000,000	$ 4,090,000,000	$ 4,152,000,000
Average number of employees | Employees	22,600	21,500	21,400
Part time employees as percentage of total employees	2.00%	3.00%
Remuneration to members of the BoD and the CEC [abstract]
Current employee benefits	$ 10,700,000	$ 12,900,000	$ 12,200,000
Post-employment benefits	300,000	400,000	400,000
Other non-current benefits	0.0	0.0	0.0
Share-based payment benefits	300,000	200,000	100,000
Total compensation expense	11,300,000	13,500,000	$ 12,700,000
Compensation cost yet to be expensed	176,000,000
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation expense	0	$ 0
2023 programme [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation expense	83,000,000
2022 programme [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation expense	78,000,000
2021 programme [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation expense	85,000,000
2020 programme [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation expense	$ 79,000,000

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Auditor's remuneration and Research and development expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of operating segments [line items]
Total	$ 16.1	$ 13.2	$ 15.5
Research and development expenditures	311.0	308.0	291.0
Ernst and Young [Member]
Disclosure of operating segments [line items]
Audit fee	14.9	11.4	14.4
Audit related fee	1.2	1.8	1.1
Tax fee	0.0	0.0	0.0
Other service fee	0.0	0.0	0.0
Statoil operated licences [Member]
Disclosure of operating segments [line items]
The audit fees and audit related fees	$ 0.5	$ 0.6	$ 0.5

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Financial items (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial items [Abstract]
Foreign currency exchange gains/(losses) derivative financial instruments	$ (1,476)	$ 797	$ 870
Other foreign currency exchange gains/(losses)	2,328	1,291	(823)
Net foreign currency exchange gains/(losses)	852	2,088	47
Dividends received	218	93	39
Interest income financial investments, including cash and cash equivalents	1,468	398	38
Interest income non-current financial receivables	31	30	26
Interest income other current financial assets and other financial items	732	701	48
Interest income and other financial income	2,449	1,222	151
Gains (losses) financial investments	123	(394)	(348)
Gains (losses) derivative financial instruments	351	(1,745)	(708)
Interest expense bonds and bank loans and net interest on related derivatives	(1,263)	(1,029)	(896)
Interest expense lease liabilities	(132)	(90)	(93)
Capitalised borrowing costs	468	382	334
Accretion expense asset retirement obligations	(538)	(449)	(453)
Interest expense current financial liabilities and other financial expense	(195)	(192)	(114)
Interest expenses and other financial expenses	(1,660)	(1,379)	(1,223)
Net financial items	2,114	(207)	(2,080)
Interest expense from the financial liabilities at amortised cost category	857	918	990
Net interest expense, fair value through profit or loss category	405	111
Net interest income, fair value through profit or loss category			94
Fair value gain (loss) from the trading instruments held	332	(1,760)	(724)
Net foreign exchange loss	315	691	702
Interest income related to balance at amortised costs of financial investments	$ 1,410	$ 364	$ 12

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Income taxes - Significant components of income tax expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Major components of tax (expense) income [abstract]
Current income tax expense in respect of current year	$ (24,028)	$ (52,124)	$ (21,271)
Prior period adjustments	(121)	(112)	(28)
Current income tax expense	(24,149)	(52,236)	(21,299)
Origination and reversal of temporary differences	(1,529)	(2,136)	(1,778)
Recognition / derecognition of previously (un)recognised deferred tax assets	(137)	4,401	126
Change in tax regulations	4	0	4
Prior period adjustments	(169)	110	(60)
Deferred tax income/(expense)	(1,831)	2,375	(1,708)
Income tax expense	$ (25,980)	$ (49,861)	$ (23,007)

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Income taxes - Reconciliation of statutory tax rate to effective tax rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Income/(loss) before tax		$ 37,884	$ 78,604	$ 31,583
Calculated income tax at statutory rate		(8,833)	(18,168)	(7,053)
Calculated Norwegian Petroleum tax		(17,226)	(36,952)	(17,619)
Tax effect uplift		160	259	914
Tax effect of permanent differences regarding divestments		82	417	90
Tax effect of permanent differences caused by functional currency different from tax currency		5	145	150
Tax effect of other permanent differences		453	403	228
Recognition / derecognition of previously (un)recognised deferred tax assets		(137)	4,401	126
Change in unrecognised deferred tax assets		(29)	(34)	619
Change in tax regulations		4	0	4
Prior period adjustments		(290)	(3)	(88)
Other items including currency effects		(169)	(327)	(378)
Income tax expense		$ (25,980)	$ (49,861)	$ (23,007)
Effective tax rate		68.60%	63.40%	72.80%
Corporate tax rate		23.30%	23.10%	22.30%
Commodity price sensitivity [Member]
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Percentage of reasonably possible change, market risk		30.00%	30.00%
Norway [Member]
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Corporate tax rate		22.00%
Petroleum tax rate		71.80%
Uplift rate		12.40%	17.69%
Norway [Member] | Forecast [Member]
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Corporate tax rate	15.00%

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Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets and liabilities [abstract]
Deferred tax assets	$ 20,892	$ 20,634
Deferred tax liabilities	(26,378)	(23,813)
Net asset (liability)	(5,485)	(3,179)	$ (7,655)	$ (6,250)
Tax losses carried forward [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	8,575	8,105
Deferred tax liabilities	(28)	(28)
Net asset (liability)	8,547	8,077
Property, plant and equipment, intangible assets and equity accounted investments [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	514	694
Deferred tax liabilities	(26,042)	(23,356)
Net asset (liability)	(25,528)	(22,662)
Asset retirement obligation [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	7,816	7,356
Deferred tax liabilities	0	0
Net asset (liability)	7,816	7,356
Lease liabilities [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	1,298	1,306
Deferred tax liabilities	(2)	(3)
Net asset (liability)	1,296	1,303
Pensions [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	747	694
Deferred tax liabilities	(6)	(12)
Net asset (liability)	741	682
Derivatives [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	446	1,131
Deferred tax liabilities	0	(3)
Net asset (liability)	446	1,128
Other [Member]
Deferred tax assets and liabilities [abstract]
Deferred tax assets	1,495	1,348
Deferred tax liabilities	(300)	(411)
Net asset (liability)	$ 1,195	$ 937

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Income taxes - Changes in Deferred tax assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in net deferred tax liability during the year [abstract]
Net deferred tax liability beginning balance	$ 3,179	$ 7,655	$ 6,250
Charged (credited) to the Consolidated statement of income	1,831	(2,375)	1,708
Charged (credited) to Other comprehensive income	(66)	105	35
Acquisitions and disposals	981	(968)	36
Foreign currency translation effects and other effects	(440)	(1,239)	(374)
Net deferred tax liability ending balance	5,485	3,179	$ 7,655
Net deferred tax assets and liabilities [abstract]
Deferred tax assets	7,936	8,732
Deferred tax liabilities	13,345	11,996
Net deferred tax classified as held for sale	$ (76)	85
Expected recognition of deferred tax assets, period	10 years
Percent of tax losses carried forward	80.00%
US, the UK, Norway, Angola, Canada and Brazil [Member]
Net deferred tax assets and liabilities [abstract]
Deferred tax assets recognized in entities which have suffered a loss in either the current or preceding period	$ 965	1,953
Deferred tax assets	$ 7,952	$ 8,817

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Income taxes - Unrecognised deferred tax assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences, basis	$ 2,555	$ 2,558
Unused tax credits, basis	0	0
Tax losses carried forward, basis	3,944	3,458
Total unrecognised deferred tax assets, basis	6,499	6,016
Deductible temporary differences, unrecognised deferred tax asset	1,030	968
Unused tax credits	185	129
Tax losses carried forward, unrecognised deferred tax asset	947	930
Total unrecognised deferred tax assets	$ 2,162	2,027
Percentage of unrecognised tax losses that can be carried forward indefinitely	90.00%
Remaining unrecognised tax losses expiry date	after 2027
Angola [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Total unrecognised deferred tax assets	$ 712	636
Canada [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Total unrecognised deferred tax assets	$ 415	$ 346

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Property, plant and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	$ 56,498
Property plant and equipment ending	58,822	$ 56,498
Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	199,586	212,234
Additions through business combinations	1,923
Additions and transfers	11,761	10,332
Changes in asset retirement obligations	827	(4,805)
Disposals at cost	(4,771)	(3,865)
Assets reclassified to held for sale	(4,198)
Effect of changes in foreign exchange	(2,937)	(14,310)
Property plant and equipment ending	202,191	199,586
Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(143,088)	(150,159)
Depreciation	(9,350)	(8,856)
Impairment losses	(1,188)	(286)
Reversal of impairment losses	290	3,599
Transfers	(2)	(8)
Accumulated depreciation and impairment disposed assets	4,533	2,359
Accumulated depreciation and impairment assets classified as HFS	3,183
Effect of changes in foreign exchange	2,251	10,264
Property plant and equipment ending	(143,369)	(143,088)
Machinery, equipment and transportation equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	140
Property plant and equipment ending	$ 250	$ 140
Machinery, equipment and transportation equipment [Member] | Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	20 years	20 years
Machinery, equipment and transportation equipment [Member] | Minimum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	3 years	3 years
Machinery, equipment and transportation equipment [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	$ 1,343	$ 1,335
Additions through business combinations	48
Additions and transfers	113	52
Changes in asset retirement obligations	0	0
Disposals at cost	(64)	(9)
Assets reclassified to held for sale	(1)
Effect of changes in foreign exchange	0	(36)
Property plant and equipment ending	1,438	1,343
Machinery, equipment and transportation equipment [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(1,203)	(1,188)
Depreciation	(44)	(52)
Impairment losses	(2)	(8)
Reversal of impairment losses	0	4
Transfers	1	(2)
Accumulated depreciation and impairment disposed assets	52	8
Accumulated depreciation and impairment assets classified as HFS	1
Effect of changes in foreign exchange	7	34
Property plant and equipment ending	(1,188)	(1,203)
Production plants and oil and gas assets [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	40,493
Property plant and equipment ending	39,585	40,493
Production plants and oil and gas assets [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	171,948	183,358
Additions through business combinations	1,121
Additions and transfers	7,286	9,390
Changes in asset retirement obligations	772	(4,756)
Disposals at cost	(3,567)	(3,487)
Assets reclassified to held for sale	(3,944)
Effect of changes in foreign exchange	(2,705)	(12,557)
Property plant and equipment ending	170,911	171,948
Production plants and oil and gas assets [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(131,455)	(137,763)
Depreciation	(7,976)	(7,643)
Impairment losses	(844)	(187)
Reversal of impairment losses	288	2,585
Transfers	(11)	(20)
Accumulated depreciation and impairment disposed assets	3,355	2,002
Accumulated depreciation and impairment assets classified as HFS	3,176
Effect of changes in foreign exchange	2,142	9,571
Property plant and equipment ending	(131,325)	(131,455)
Refining and manufacturing plants [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	1,522
Property plant and equipment ending	$ 1,325	$ 1,522
Refining and manufacturing plants [Member] | Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	30 years	20 years
Refining and manufacturing plants [Member] | Minimum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	15 years	15 years
Refining and manufacturing plants [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	$ 8,285	$ 8,481
Additions through business combinations	339
Additions and transfers	60	378
Changes in asset retirement obligations	0	0
Disposals at cost	(446)	2
Assets reclassified to held for sale	0
Effect of changes in foreign exchange	(133)	(576)
Property plant and equipment ending	8,105	8,285
Refining and manufacturing plants [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(6,763)	(7,926)
Depreciation	(224)	(160)
Impairment losses	(323)	(39)
Reversal of impairment losses	0	802
Transfers	0	2
Accumulated depreciation and impairment disposed assets	442	(4)
Accumulated depreciation and impairment assets classified as HFS	0
Effect of changes in foreign exchange	88	562
Property plant and equipment ending	(6,780)	(6,763)
Buildings and land [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	224
Property plant and equipment ending	$ 254	$ 224
Buildings and land [Member] | Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	33 years	33 years
Buildings and land [Member] | Minimum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	10 years	10 years
Buildings and land [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	$ 562	$ 596
Additions through business combinations	38
Additions and transfers	19	6
Changes in asset retirement obligations	0	0
Disposals at cost	(29)	(20)
Assets reclassified to held for sale	0
Effect of changes in foreign exchange	1	(19)
Property plant and equipment ending	591	562
Buildings and land [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(338)	(320)
Depreciation	(26)	(33)
Impairment losses	0	0
Reversal of impairment losses	0	0
Transfers	(1)	0
Accumulated depreciation and impairment disposed assets	28	5
Accumulated depreciation and impairment assets classified as HFS	0
Effect of changes in foreign exchange	0	9
Property plant and equipment ending	(337)	(338)
Construction in Progress [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	10,679
Property plant and equipment ending	13,980	10,679
Construction in Progress [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	10,815	12,614
Additions through business combinations	370
Additions and transfers	3,196	(813)
Changes in asset retirement obligations	55	(48)
Disposals at cost	(30)	(5)
Assets reclassified to held for sale	(245)
Effect of changes in foreign exchange	(64)	(934)
Property plant and equipment ending	14,097	10,815
Construction in Progress [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(135)	(344)
Depreciation	0	0
Impairment losses	(18)	(49)
Reversal of impairment losses	3	207
Transfers	10	20
Accumulated depreciation and impairment disposed assets	22	0
Accumulated depreciation and impairment assets classified as HFS	0
Effect of changes in foreign exchange	3	30
Property plant and equipment ending	(117)	(135)
Right of use assets [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	3,439
Property plant and equipment ending	$ 3,427	$ 3,439
Right of use assets [Member] | Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	20 years	20 years
Right of use assets [Member] | Minimum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives (years)	1 year	1 year
Right of use assets [Member] | Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	$ 6,633	$ 5,850
Additions through business combinations	8
Additions and transfers	1,087	1,319
Changes in asset retirement obligations	0	0
Disposals at cost	(634)	(347)
Assets reclassified to held for sale	(8)
Effect of changes in foreign exchange	(36)	(188)
Property plant and equipment ending	7,050	6,633
Right of use assets [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment beginning	(3,194)	(2,619)
Depreciation	(1,079)	(969)
Impairment losses	(1)	(4)
Reversal of impairment losses	0	0
Transfers	0	(8)
Accumulated depreciation and impairment disposed assets	634	347
Accumulated depreciation and impairment assets classified as HFS	6
Effect of changes in foreign exchange	10	59
Property plant and equipment ending	$ (3,623)	$ (3,194)

XML

Property, plant and equipment - Footnote (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about property, plant and equipment [line items]
Assets transferred to Property, plant and equipment from Intangible assets	$ 1,280	$ 982
Land and buildings [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Right of use Assets	1,038
Vessels [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Right of use Assets	1,578
Drilling Rigs [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Right of use Assets	$ 504

XML

Intangible assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	$ 5,158
Expensed exploration expenditures previously capitalised	53	$ (342)	$ (171)
Intangibles ending	5,709	5,158
Cost [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	5,542	6,816
Additions through business combinations	799
Additions	989	324
Disposals at cost	(135)	(58)
Transfers	(1,280)	(982)
Expensed exploration expenditures previously capitalised	53	(342)
Impairment of goodwill		(3)
Foreign currency translation effect	41	(213)
Intangibles ending	6,010	5,542	6,816
Accumulated depreciation, amortisation and impairment [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	(384)
Intangibles ending	(302)	(384)
Exploration expenses [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	1,599
Intangibles ending	1,169	1,599
Exploration expenses [Member] | Cost [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	1,599	1,958
Additions through business combinations	0
Additions	410	227
Disposals at cost	0	(10)
Transfers	(961)	(227)
Expensed exploration expenditures previously capitalised	114	(283)
Impairment of goodwill		0
Foreign currency translation effect	7	(65)
Intangibles ending	1,169	1,599	1,958
Acquisition costs related to oil and gas prospects [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	2,035
Intangibles ending	2,036	2,035
Acquisition costs related to oil and gas prospects [Member] | Cost [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	2,035	2,670
Additions through business combinations	5
Additions	360	4
Disposals at cost	0	(50)
Transfers	(319)	(516)
Expensed exploration expenditures previously capitalised	(61)	(59)
Impairment of goodwill		0
Foreign currency translation effect	16	(14)
Intangibles ending	2,036	2,035	2,670
Goodwill [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	1,380
Intangibles ending	1,733	1,380
Goodwill [Member] | Cost [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	1,380	1,467
Additions through business combinations	348
Additions	9	36
Disposals at cost	(10)	0
Transfers	4	0
Expensed exploration expenditures previously capitalised	0	0
Impairment of goodwill		(3)
Foreign currency translation effect	2	(121)
Intangibles ending	1,733	1,380	1,467
Goodwill [Member] | Cost [Member] | Exploration and Production Norway [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill related to business acquired in 2019	533
Goodwill [Member] | Cost [Member] | Marketing, Midstream and Processing (MMP) [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill related to business acquired in 2019	440
Other intangible assets [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	144
Intangibles ending	770	144
Other intangible assets [Member] | Cost [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	528	722
Additions through business combinations	446
Additions	210	57
Disposals at cost	(124)	1
Transfers	(4)	(239)
Expensed exploration expenditures previously capitalised	0	0
Impairment of goodwill		0
Foreign currency translation effect	16	(13)
Intangibles ending	1,072	528	$ 722
Other intangible assets [Member] | Accumulated depreciation, amortisation and impairment [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangibles beginning	(384)
Intangibles ending	$ (302)	$ (384)

XML

Intangible assets - Exploration expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about intangible assets [line items]
Intangible exploration and evaluation assets	$ 1,169	$ 1,599
Exploration expenditures	1,275	1,087	$ 1,027
Expensed exploration expenditures previously capitalised	(53)	342	171
Capitalised exploration	(427)	(224)	(194)
Exploration expenses	795	1,205	$ 1,004
Less than one year [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible exploration and evaluation assets	345	250
Between one and five years [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible exploration and evaluation assets	458	340
More than five years [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible exploration and evaluation assets	$ 366	$ 1,009

XML

Impairments - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) kr / $	Dec. 31, 2023 USD ($) kr / €	Dec. 31, 2023 USD ($) kr / t	Dec. 31, 2023 USD ($) $ / £	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure of nature and extent of risks arising from financial instruments [line items]
Impairment Loss Equity Accounted investments	$ 363						$ 832
Estimated impairment loss due to decline in commodity prices	$ 11,000	$ 11,000	$ 11,000	$ 11,000	$ 11,000	$ 11,000
Percentage of estimated decline in commodity prices	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%
Base discount rate applied in value in use calculations		5.00%
Impairment amount	$ 1,261						(2,505)	$ 1,282
Sensitivity of discount rate assessment, amount of potential impact	$ 2,000
E&P- Norway [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate	24.00%	24.00%	24.00%	24.00%	24.00%	24.00%
Impairment amount	$ 588						$ (819)	(1,102)
E&P USA [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate	6.00%	6.00%	6.00%	6.00%	6.00%	6.00%
MMP [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate	7.00%	7.00%	7.00%	7.00%	7.00%	7.00%	7.00%
Impairment amount	$ 343						$ (895)	716
Renewables USA - offshore [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Impairment amount	$ 300						$ 0	$ 0
Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Sensitivity of discount rate assessment, percent		6.00%
Maximum [Member] | E&P- Norway [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							102.00%
Maximum [Member] | E&P International [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							9.00%
Maximum [Member] | E&P USA [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							9.00%
Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Sensitivity of discount rate assessment, percent		5.00%
Minimum [Member] | E&P- Norway [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							42.00%
Minimum [Member] | E&P International [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							8.00%
Minimum [Member] | E&P USA [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate							6.00%
2026 [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Long-term exchange rates			8.50	10.00		1.35
2030 [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Expected tax increase on carbon emissions maximum | kr / t					2,000
2030 [Member] | E&P- Norway [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Expected tax increase on carbon emissions maximum | kr / t					2,000

XML

Impairments - Net impairments/(reversal of impairments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of impairment loss and reversal of impairment loss [line items]
Total net impairments/(reversals) including exploration expenses	$ (1,260)	$ (2,487)	$ 1,287
Property, plant and equipment, intangible assets and equity accounted investments [Member]
Disclosure of impairment loss and reversal of impairment loss [line items]
Total net impairments/(reversals) including exploration expenses	1,321	(2,419)	1,439
Property Plant And Equipment [Member]
Disclosure of impairment loss and reversal of impairment loss [line items]
Total net impairments/(reversals) including exploration expenses	897	(3,313)	1,285
Intangible assets [Member]
Disclosure of impairment loss and reversal of impairment loss [line items]
Total net impairments/(reversals) including exploration expenses	61	62	154
Equity accounted investments [Member]
Disclosure of impairment loss and reversal of impairment loss [line items]
Total net impairments/(reversals) including exploration expenses	$ 363	$ 832	$ 0

XML

Impairments - Carrying amount after impairment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	$ 3,247	$ 9,435	$ 10,611
Net impairement loss (Reversal)	1,261	(2,505)	1,282
Europe and Asia [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	0	1,551	1,566
Net impairement loss (Reversal)	310	295	1,609
Exploration and Production Norway [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	887	3,201	5,379
Net impairement loss (Reversal)	588	(819)	(1,102)
Exploration And Production USA [Member] | Onshore [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	0	546	1,979
Net impairement loss (Reversal)	0	(204)	48
Exploration And Production USA [Member] | Offshore Gulf of Mexico [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	1,165	2,691	798
Net impairement loss (Reversal)	(290)	(882)	18
Marketing, Midstream and Processing (MMP) [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	949	1,416	868
Net impairement loss (Reversal)	343	(895)	716
Renewables USA - offshore [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	134	0	0
Net impairement loss (Reversal)	300	0	0
Other [Member]
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Carrying amount after impairment	112	30	20
Net impairement loss (Reversal)	$ 10	$ 0	$ (7)

XML

Impairments - Price assumptions (Details)	12 Months Ended
	Dec. 31, 2023 $ / bbl $ / MMBTU € / t € / MWh
Brent Blend oil price [Member] | 2027 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	79
Brent Blend oil price [Member] | 2027 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	(78)
Brent Blend oil price [Member] | 2030 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	78
Brent Blend oil price [Member] | 2030 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	(78)
Brent Blend oil price [Member] | 2040 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	73
Brent Blend oil price [Member] | 2040 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	(73)
Brent Blend oil price [Member] | 2050 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	68
Brent Blend oil price [Member] | 2050 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | $ / bbl	(68)
European gas [Member] | 2027 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	15.5
European gas [Member] | 2027 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	20.9
European gas [Member] | 2030 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	9.1
European gas [Member] | 2030 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(9.9)
European gas [Member] | 2040 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	9.5
European gas [Member] | 2040 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(9.4)
European gas [Member] | 2050 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	9.5
European gas [Member] | 2050 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(9.4)
Henry Hub Natural Gas Price [Member] | 2027 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	3.6
Henry Hub Natural Gas Price [Member] | 2027 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(4.2)
Henry Hub Natural Gas Price [Member] | 2030 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	4.3
Henry Hub Natural Gas Price [Member] | 2030 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(3.9)
Henry Hub Natural Gas Price [Member] | 2040 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	4.3
Henry Hub Natural Gas Price [Member] | 2040 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(3.9)
Henry Hub Natural Gas Price [Member] | 2050 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	4.3
Henry Hub Natural Gas Price [Member] | 2050 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit	(3.9)
Electricity Germany [Member] | 2027 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	106
Electricity Germany [Member] | 2027 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	(122)
Electricity Germany [Member] | 2030 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	78
Electricity Germany [Member] | 2030 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	(74)
Electricity Germany [Member] | 2040 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	71
Electricity Germany [Member] | 2040 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	(60)
Electricity Germany [Member] | 2050 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	71
Electricity Germany [Member] | 2050 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / MWh	(60)
EU ETS [Member] | 2027 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	90
EU ETS [Member] | 2027 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	(84)
EU ETS [Member] | 2030 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	105
EU ETS [Member] | 2030 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	(84)
EU ETS [Member] | 2040 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	128
EU ETS [Member] | 2040 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	(111)
EU ETS [Member] | 2050 [Member] | Maximum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	150
EU ETS [Member] | 2050 [Member] | Minimum [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Estimated crude oil or Gas price per unit | € / t	(137)

XML

Joint arrangements and associates - Joint ventures and other equity accounted investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of associates [line items]
Net investment beginning	$ 2,758	$ 2,686
Net income/(loss) from equity accounted investments	(1)	620	$ 259
Impairment	(363)	(832)
Acqusitions and increase in paid in capital	926	337
Dividends and other distributions	(286)	(210)
Other comprehensive income / (loss)	(10)	384
Divestments, derecognition and decrease in paid in capital	(517)	(22)
Other	0	(205)
Net investment ending	2,507	2,758	2,686
Equity accounted investments	2,508	$ 2,758	$ 2,686
Several investments [Member] | Maximum [Member]
Disclosure of associates [line items]
Equity accounted investments	$ 500

XML

Financial investments and financial receivables (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of financial assets [line items]
Financial investments	$ 3,441	$ 2,733
Prepayments and financial receivables	1,291	2,063
Financial investments	29,224	29,876
Bond Investment [Member]
Disclosure of financial assets [line items]
Financial investments	1,863	1,448
Listed equity securities [Member]
Disclosure of financial assets [line items]
Financial investments	1,035	794
Non-listed equity securities [Member]
Disclosure of financial assets [line items]
Financial investments	543	491
Interest bearing financial receivables [Member]
Disclosure of financial assets [line items]
Prepayments and financial receivables	341	1,658
Other interest-bearing receivables [Member]
Disclosure of financial assets [line items]
Prepayments and financial receivables	40	66
Prepayments and other non-interest-bearing receivables [Member]
Disclosure of financial assets [line items]
Prepayments and financial receivables	910	339
Time deposits [Member]
Disclosure of financial assets [line items]
Financial investments	17,846	12,373
Interest bearing securities [Member]
Disclosure of financial assets [line items]
Financial investments	11,378	17,504
Investment portfolios [Member]
Disclosure of financial assets [line items]
Financial investments	$ 458	$ 410

XML

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Inventories [Abstract]
Crude oil	$ 2,051	$ 2,115
Petroleum products	380	451
Natural gas	54	127
Commodity inventories at the lower of cost and net realisable value	2,485	2,693
Natural gas held for trading purposes measured at fair value	810	1,994
Other	520	517
Total inventories	$ 3,814	$ 5,205

XML

Trade and other receivables (Details) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022
Trade and other receivables [Abstract]
Trade receivables from contracts with customers		$ 10,706	$ 15,213
Other current receivables		1,774	992
Collateral receivables		2,186	3,468
Receivables from participation in joint operations and similar arrangements		471	661
Receivables from equity accounted associated companies and other related parties		1,056	1,276
Total financial trade and other receivables		16,193	21,611
Non-financial trade and other receivables		740	841
Trade and other receivables	[1]	$ 16,933	$ 22,452

[1] Of which Trade receivables of USD 13,017   million in 2023 and USD 17,334   million in 2022.

XML

Cash and cash equivalents (Details) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022
Cash and cash equivalents [Abstract]
Cash at bank available		$ 2,295	$ 2,220
Time deposits		1,337	836
Money Market Funds		1,875	3,106
Interest bearing securities		2,563	3,276
Restricted cash, including collateral deposits		1,572	6,140
Cash and cash equivalents	[1]	9,641	15,579
Collateral deposits related to trading activities		$ 1,572	$ 6,128

[1] Includes collateral deposits of USD 1,572   million for 2023 related to certain requirements   set out by exchanges where Equinor is participating. The corresponding figure for 2022 is   USD 6,128   million.

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Shareholders' equity, capital distribution and earnings per share - Narrative (Details)			1 Months Ended		12 Months Ended
	Feb. 06, 2024 $ / shares	Mar. 31, 2023	Jun. 30, 2023 NOK (kr)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2023 NOK (kr) kr / shares shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 NOK (kr) kr / shares shares	Dec. 31, 2022 USD ($) shares
Dividends declared per share | $ / shares					$ 3.6000	$ 2.4000
Payments to acquire or redeem entity's shares					$ 5,589,000,000	$ 3,315,000,000	$ 321,000,000
Proportion of ownership interest divested		100.00%
Share capital								kr 7,507,761,512.50	$ 1,100,516,940	kr 7,938,675,397.50	$ 1,142,036,265
Total number of shares issued | shares								3,003,104,605	3,003,104,605	3,175,470,159	3,175,470,159
Nominal value per share | kr / shares								kr 2.50		kr 2.50
Increase (decrease) through treasury share transactions, equity					(5,685,000,000)	(3,380,000,000)	$ (429,000,000)
Norwegian State [Member]
Percentage ownership of entity by shareholders								67.00%	67.00%
Potential Ordinary Share Transactions [Member]
Dividends declared per share | $ / shares	$ 0.35
Extraordinary dividend per share | $ / shares	$ 0.35
Treasury shares employees [Member]
Treasury shares purchased					68,000,000	$ 72,000,000
Share buyback programme [Member]
Agreement to buy treasury shares									$ 5,685,000,000		$ 3,380,000,000
Nominal value per share | kr / shares								kr 2.50
Number of shares outstanding | shares							13,460,292	49,486,793	49,486,793	42,619,172	42,619,172
Share buyback programme [Member] | First tranche [Member]
Agreement to buy treasury shares									$ 330,000,000		$ 330,000,000
Share buyback programme [Member] | Second tranche [Member]
Agreement to buy treasury shares									550,000,000		440,000,000
Share buyback programme [Member] | Third tranche [Member]
Agreement to buy treasury shares									550,000,000		605,000,000
Share buyback programme [Member] | Fourth tranche [Member]
Agreement to buy treasury shares									550,000,000		$ 605,000,000
Share buy-back programme for 2023 [Member]
Agreement to buy treasury shares									6,000,000,000
Share buy-back programme for 2023 [Member] | Maximum [Member]
Agreement to buy treasury shares									6,000,000,000
Share buy-back programme for 2023 [Member] | Fourth tranche [Member]
Payments to acquire or redeem entity's shares					388,000,000
Amount accrued and classified as trade, orther payables and provisions									$ 162,000,000
Treasury shares purchased					$ 410,000,000
Share buy-back programme for 2022 [Member]
Payments to acquire or redeem entity's shares			kr 39,071,000,000.000	$ 3,705,000,000

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Shareholders' equity, capital distribution and earnings per share - Share capital activity (Details)	12 Months Ended
	Dec. 31, 2023 NOK (kr) shares kr / shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 NOK (kr) kr / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares
Number of shares issued [abstract]
Share capital, beginning (shares)	3,175,470,159	3,175,470,159
Capital (reduction), shares	(172,365,554)	(172,365,554)
Share capital, ending (shares)	3,003,104,605	3,003,104,605	3,175,470,159	3,175,470,159
Nominal value per share | kr / shares	kr 2.50		kr 2.50
Share capital	kr 7,938,675,397.50	$ 1,142,036,265
Nominal value per share during year | kr / shares	kr 2.50
Capital reduction	kr (430,913,885.00)	(41,519,325)
Share capital	kr 7,507,761,512.50	1,100,516,940	kr 7,938,675,397.50	$ 1,142,036,265
Reconciliation of number of shares outstanding [abstract]
Number of shares issued	3,003,104,605		3,175,470,159			3,003,104,605	3,175,470,159
Share capital	kr 7,507,761,512.50		kr 7,938,675,397.50			$ 1,100,516,940	$ 1,142,036,265
Share buy-back | $		$ (5,685,000,000)		$ (3,380,000,000)	$ (429,000,000)
Common stock outstanding [Member]
Number of shares issued [abstract]
Share capital, ending (shares)	3,003,104,605	3,003,104,605
Nominal value per share | kr / shares	kr 2.50
Share capital | kr	kr 7,507,761,512.50
Reconciliation of number of shares outstanding [abstract]
Number Of Shares Authorised	3,003,104,605					3,003,104,605
Number of shares issued	3,003,104,605					3,003,104,605
Share buy-back programme	(49,486,793)	(49,486,793)
Employees share saving plan	(8,884,668)	(8,884,668)
Total outstanding shares	2,944,733,144					2,944,733,144
Share capital | kr	kr 7,507,761,512.50
Share buy-back | kr	(123,716,982.50)
Employees share saving plan | kr	(22,211,670.00)
Total outstanding shares, value | kr	kr 7,361,832,860.00
Share buyback programme [Member]
Number of shares issued [abstract]
Nominal value per share | kr / shares	kr 2.50
Reconciliation of number of shares outstanding [abstract]
Total outstanding shares	49,486,793		42,619,172		13,460,292	49,486,793	42,619,172
Employee Share Saving Plan [Member]
Number of shares issued [abstract]
Nominal value per share | kr / shares	kr 2.50

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Shareholders' equity, capital distribution and earnings per share - Dividends schedule (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2023 USD ($) kr / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($) kr / shares
Dividends decared [abstract]
Dividends declared	$ 10,783	$ 10,783	$ 7,549	$ 7,549
Dividend per share | $ / shares	$ 3.6000		$ 2.4000
Dividends paid in cash	$ 10,906		$ 5,380
Dividends paid, ordinary shares per share | (per share)	$ 3.6000	$ 37.8522	$ 1.6800	$ 16.4837

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Shareholders' equity, capital distribution and earnings per share - Share buyback and treasury shares (Details) - Share buyback programme [Member] - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share buy-back programme at 1 January	42,619,172	13,460,292
Purchase	63,748,254	56,290,671
Cancellation	(56,880,633)	(27,131,791)
Share buy-back programme at 31 December	49,486,793	42,619,172

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Shareholders' equity, capital distribution and earnings per share - Equity impact of share buy back programmes (Details) - Share buyback programme [Member] - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Agreement to buy treasury shares	$ 5,685	$ 3,380
Open market share [Member]
Agreement to buy treasury shares	1,980	1,980
First tranche [Member]
Agreement to buy treasury shares	330	330
Second tranche [Member]
Agreement to buy treasury shares	550	440
Third tranche [Member]
Agreement to buy treasury shares	550	605
Fourth tranche [Member]
Agreement to buy treasury shares	550	605
Norwegian state share 1 [Member]
Agreement to buy treasury shares	$ 3,705	$ 1,399

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Shareholders' equity, capital distribution and earnings per share - Employees share saving plan (Details) - Employee Share Saving Plan [Member] - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share saving plan at 1 January	10,908,717	12,111,104
Purchase	2,204,207	2,127,172
Allocated to employees	(4,228,256)	(3,329,559)
Share saving plan at 31 December	8,884,668	10,908,717

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Shareholders' equity, capital distribution and earnings per share - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Basic earnings per share
Net income (loss) attributable to shareholders of the company	$ 11,885	$ 28,746	$ 8,563
Weighted average number of ordinary shares outstanding	3,021	3,174
Basic earnings per share (in USD)	$ 3.93	$ 9.06	$ 2.64
Diluted earnings per share
Net income (loss) attributable to shareholders of the company	$ 11,885	$ 28,746	$ 8,563
Weighted average number of ordinary shares outstanding, diluted	3,027	3,183
Diluted earnings per share (in USD)	$ 3.93	$ 9.03	$ 2.63

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Finance debt - Non-current finance debt (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of financial liabilities [line items]
Unsecured bonds	$ 24,380	$ 26,612
Unsecured loans	250	76
Total finance debt	24,630	26,688
Less current portion	2,400	2,547
Non-current finance debt	22,230	24,141
United States Dollar (USD) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	15,705	17,190
Euro (EUR) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	6,633	7,465
Great Britain Pound (GBP) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	1,747	1,652
Norwegian Kroner (NOK) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	295	$ 304
Brazilian Real (BRL) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates		10.10%
Unsecured loans	$ 179	$ 0
Japanese Yen (JPY) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates	4.30%	4.30%
Unsecured loans	$ 71	$ 76
Fair value based on level 2 inputs [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	23,529	25,097
Unsecured loans	262	90
Total finance debt	23,791	25,187
Less current portion	2,415	2,597
Non-current finance debt	21,376	22,590
Fair value based on level 2 inputs [Member] | United States Dollar (USD) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	15,037	16,167
Fair value based on level 2 inputs [Member] | Euro (EUR) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	6,177	6,782
Fair value based on level 2 inputs [Member] | Great Britain Pound (GBP) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	2,013	1,836
Fair value based on level 2 inputs [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of financial liabilities [line items]
Unsecured bonds	302	311
Fair value based on level 2 inputs [Member] | Brazilian Real (BRL) [Member]
Disclosure of financial liabilities [line items]
Unsecured loans	179	0
Fair value based on level 2 inputs [Member] | Japanese Yen (JPY) [Member]
Disclosure of financial liabilities [line items]
Unsecured loans	$ 83	$ 90
Weighted average [Member] | United States Dollar (USD) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates	3.82%	3.82%
Weighted average [Member] | Euro (EUR) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates	1.51%	1.42%
Weighted average [Member] | Great Britain Pound (GBP) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates	6.08%	6.08%
Weighted average [Member] | Norwegian Kroner (NOK) [Member]
Disclosure of financial liabilities [line items]
Weighted average interest rates	4.18%	4.18%

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Finance debt - Bonds (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) Item	Dec. 31, 2022 USD ($)
Disclosure of financial liabilities [line items]
Bonds	$ 24,380	$ 26,612
Pure [abstract]
Bonds not swapped	$ 827
Number of new bonds issued | Item	0
Number of bonds agreement | Item	34
Euro (EUR) [Member]
Disclosure of financial liabilities [line items]
Bonds	$ 6,633	7,465
United States Dollar (USD) [Member]
Disclosure of financial liabilities [line items]
Bonds	15,705	$ 17,190
Unsecured Bonds [Member] | United States Dollar (USD) [Member]
Disclosure of financial liabilities [line items]
Bonds	15,705
Unsecured Bonds [Member] | All Other Currencies [Member]
Pure [abstract]
Bonds swapped	7,848
Unsecured bonds, 38 Bond agreements [Member]
Disclosure of financial liabilities [line items]
Bonds	$ 24,076

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Finance debt - Non-current debt maturity profile (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Non-current finance debt maturity profile [abstract]
Total repayment of non-current finance debt	$ 22,230	$ 24,141
Weighted average [Member]
Non-current finance debt maturity profile [abstract]
Weighted average maturity (years)	9	9
Weighted average [Member] | Interest Rate Non Current Debt [Member]
Non-current finance debt maturity profile [abstract]
Weighted average annual interest rate (%)	3.41%	3.29%
Year 2 and 3 [Member]
Non-current finance debt maturity profile [abstract]
Total repayment of non-current finance debt	$ 4,683	$ 4,794
Year 4 and 5 [Member]
Non-current finance debt maturity profile [abstract]
Total repayment of non-current finance debt	4,511	4,510
After 5 years [Member]
Non-current finance debt maturity profile [abstract]
Total repayment of non-current finance debt	$ 13,035	$ 14,837

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Finance debt - Current finance debt (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Current finance debt [abstract]
Collateral liabilities	$ 458	$ 1,571
Non-current finance debt due within one year	2,400	2,547
Other including US Commercial paper programme and bank overdraft	3,138	241
Total current finance debt	$ 5,996	$ 4,359
Weighted average interest rate (%)	3.77%	2.22%
Commerical paper program issuance	$ 1,895	$ 227

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Finance debt - Reconciliation of cash flow from financing activities to finance line items in balance sheet (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Repayment of finance debt	$ (2,818)	$ (250)	$ (2,675)
Repayment of lease liabilities	(1,422)	(1,366)	(1,238)
Dividends paid	(10,906)	(5,380)	(1,797)
Share buy-back	(5,589)	(3,315)	(321)
Net current finance debt and other financing activities	2,593	(5,102)	1,195
Cash flows provided by/(used in) financing activities	(18,142)	(15,414)	(4,836)
Non-current finance debt [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	24,140	27,404
Repayment of finance debt	(2,818)	(250)
Net current finance debt and other financing activities		0
Cash flows provided by/(used in) financing activities	(2,818)	(250)
Transfer to current portion	147	(2,297)
Effects of exchange rate changes	321	(710)
Debt in RIO Energy	437
Other changes	2	(7)
Net other changes	907	(3,014)
Liabilities arising from financing activities, ending balance	22,230	24,140	27,404
Current finance debt [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	4,359	5,273
Net current finance debt and other financing activities	1,385	(2,982)
Cash flows provided by/(used in) financing activities	1,385	(2,982)
Transfer to current portion	(147)	2,297
Effects of exchange rate changes	44	(78)
Other changes	354	(151)
Net other changes	251	2,068
Liabilities arising from financing activities, ending balance	5,995	4,359	5,273
Financial receivable collaterals [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	(3,468)	(1,577)
Net current finance debt and other financing activities	1,287	(2,038)
Cash flows provided by/(used in) financing activities	1,287	(2,038)
Effects of exchange rate changes	(5)	145
Other changes	(1)
Net other changes	(6)	145
Liabilities arising from financing activities, ending balance	(2,185)	(3,468)	(1,577)
Additional paid in capital share based payment/treasury shares [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	3,041	6,408
Share buy-back	(5,589)	(3,315)
Net current finance debt and other financing activities	(69)	(73)
Cash flows provided by/(used in) financing activities	(5,658)	(3,388)
Other changes	2,617	21
Net other changes	2,617	21
Liabilities arising from financing activities, ending balance	0	3,041	6,408
Non-controling interest [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	1	14
Net current finance debt and other financing activities	(10)	(8)
Cash flows provided by/(used in) financing activities	(10)	(8)
Effects of exchange rate changes	0	(3)
Other changes	19	(2)
Net other changes	19	(5)
Liabilities arising from financing activities, ending balance	10	1	14
Dividend payable [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	2,808	582
Dividends paid	(10,906)	(5,380)
Cash flows provided by/(used in) financing activities	(10,906)	(5,380)
Divdend declared	10,783	7,549
Other changes	(36)	57
Net other changes	10,747	7,606
Liabilities arising from financing activities, ending balance	2,649	2,808	582
Lease liabilities [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance	3,667	3,562
Repayment of lease liabilities	(1,422)	(1,366)
Cash flows provided by/(used in) financing activities	(1,422)	(1,366)
Effects of exchange rate changes	(25)	(149)
New leases	1,379	1,644
Other changes	(29)	(24)
Net other changes	1,325	1,471
Liabilities arising from financing activities, ending balance	$ 3,570	3,667	3,562
Lease liabilities [Member] | Previously stated [Member]
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Liabilities arising from financing activities, beginning balance		$ 3,562
Liabilities arising from financing activities, ending balance			$ 3,562

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Pensions - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) yr	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure of net defined benefit liability (asset) [abstract]
Description of type of plan	The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans which includes certain unfunded elements (notional contribution plans).
Description of nature of benefits provided by plan	Equinor's defined benefit plans are generally based on a minimum of 30 years of service and 66% of the final salary level, including an assumed benefit from the Norwegian National Insurance Scheme.
Minimum number of years of service for defined benefit plans	P30Y
Defined benefit plan, percentage of final salary level requirement	66.00%
Description of early retirement plan premium calculation	Equinor has more than one defined benefit plan, but the disclosure is made in total since the plans are not subject to materially different risks. Pension plans outside Norway are not material and as such not disclosed separately. In this note pension costs are presented on a gross basis before allocation to licence partners. In the Consolidated statement of income, the pension costs in Equinor ASA are presented net of costs allocated to licence partners. Equinor is also a member of a Norwegian national agreement-based early retirement plan (“AFP”), and the premium is calculated based on the employees' income but limited to 7.1 times the basic amount in the National Insurance scheme (7.1 G).
Maximum age of employees for early retirement premium | yr	62
Pension costs | $	$ 441	$ 458	$ 488
Interest rate [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage of reasonably possible increase in actuarial assumption		0.00%
Other assumptions [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage of reasonably possible increase in actuarial assumption		0.50%

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Pensions - Changes in pension liabilities and plan assets during the year (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Changes in pension liabilities
Pension liabilities, beginning balance	$ 7,664
Pension liabilities, ending balance	8,328	$ 7,664
Changes in plan assets
Net pension liability	2,665	2,452
Represented by
Asset recognised as non-current pension assets (funded plan)	1,260	1,219
Liability recognised as non-current pension liabilities (unfunded plans)	3,925	3,671
Pension liabilities specified by funded and unfunded pension plans	8,328	7,664
Funded Plans [Member]
Changes in pension liabilities
Pension liabilities, beginning balance	3,994
Pension liabilities, ending balance	4,404	3,994
Represented by
Pension liabilities specified by funded and unfunded pension plans	4,404	3,994
Unfunded Plans [Member]
Changes in pension liabilities
Pension liabilities, beginning balance	3,670
Pension liabilities, ending balance	3,925	3,670
Represented by
Pension liabilities specified by funded and unfunded pension plans	3,925	3,670
Defined benefit obligations [Member]
Changes in pension liabilities
Pension liabilities, beginning balance	7,664	9,358
Current service cost	145	183
Interest cost	318	105
Actuarial (gains)/losses and currency effects	338	(1,785)
Changes in notional contribution liability and other effects	56	67
Benefits paid	(284)	(258)
Losses (gains) from curtailment, settlement or plan amendment	91	(5)
Pension liabilities, ending balance	8,328	7,664
Changes in plan assets
Benefits paid	(284)	(258)
Losses (gains) from curtailment, settlement or plan amendment	91	(5)
Represented by
Pension liabilities specified by funded and unfunded pension plans	8,328	7,664
Defined benefit plan assets [Member]
Changes in pension liabilities
Benefits paid	(141)	(121)
Losses (gains) from curtailment, settlement or plan amendment	113	(5)
Changes in plan assets
Fair value of plan assets, beginning balance	5,213	6,404
Interest income	190	116
Return on plan assets (excluding interest income)	202	(622)
Company contributions	211	104
Benefits paid	(141)	(121)
Losses (gains) from curtailment, settlement or plan amendment	113	(5)
Other effects	0	6
Foreign currency translation effects	(124)	(669)
Fair value of plan assets, ending balance	$ 5,664	$ 5,213

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Pensions - Actuarial assumptions (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Weighted-average duration of the defined benefit obligation	13 years 3 months	13 years 6 months
Discount rate [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage Actuarial Assumption To Determine Defined Benefit Obligations	3.75%	3.75%
Rate of compensation increase [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage Actuarial Assumption To Determine Defined Benefit Obligations	4.00%	3.50%
Expected rate of pension increase [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage Actuarial Assumption To Determine Defined Benefit Obligations	3.25%	2.75%
Expected increase of social security base amount (G-amount) [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage Actuarial Assumption To Determine Defined Benefit Obligations	3.75%	3.25%

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Pensions - Sensitivity analysis (Details) $ in Millions	Dec. 31, 2023 USD ($)
Discount rate [Member] | Low range value [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Defined benefit obligation, change due to decrease in assumption	$ 587
Discount rate [Member] | High range value [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Defined benefit obligation, change due to increase in assumption	(521)
Expected rate of pension increase [Member] | Low range value [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Defined benefit obligation, change due to decrease in assumption	(451)
Expected rate of pension increase [Member] | High range value [Member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Defined benefit obligation, change due to increase in assumption	$ 494

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Pensions - Portfolio weighting (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage	100.00%	100.00%
Estimated company contributions to be made to Equinor Pension in 2023	$ 109
Equity securities [Member]
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage	33.60%	32.90%
Equity securities [Member] | Low range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	30.00%
Equity securities [Member] | High range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	38.00%
Equity securities [Member] | Level 1 [Member]
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage	100.00%	44.00%
Equity securities [Member] | Level 2 [Member]
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage		54.00%
Bonds [Member]
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage	61.70%	60.50%
Bonds [Member] | Level 1 [Member]
Disclosure of financial assets [line items]
Percentange of pension assets measured at fair value	13.00%	3.00%
Bonds [Member] | Level 2 [Member]
Disclosure of financial assets [line items]
Percentange of pension assets measured at fair value	87.00%	97.00%
Interest bearing investments [Member] | Low range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	52.00%
Interest bearing investments [Member] | High range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	65.00%
Real estate [Member]
Disclosure of financial assets [line items]
Pension assets on investment classes, percentage	4.70%	6.60%
Real estate [Member] | Low range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	5.00%
Real estate [Member] | High range value [Member]
Disclosure of financial assets [line items]
Target porfolio weight	10.00%

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Provisions and other liabilities - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of other provisions and other liabilities [line items]
Total provision	$ 15,946	$ 16,292
Change in estimates	870
Amounts charged against provisions	$ 427
Reasonably possible change in the discount rate	1.30%
Effects of change in the discount rate	$ (263)
Increase in discount rate [Member]
Disclosure of other provisions and other liabilities [line items]
Effects of change in the discount rate	(1,994)
Decrease in discount rate [Member]
Disclosure of other provisions and other liabilities [line items]
Effects of change in the discount rate	2,507
Asset retirement obligations [Member]
Disclosure of other provisions and other liabilities [line items]
Reduction in obligations	626	12,360
Total provision	12,360	$ 11,734
Change in estimates	845
Amounts charged against provisions	126
Effects of change in the discount rate	(276)
SDFI liability [Member]
Disclosure of other provisions and other liabilities [line items]
Change in estimates	$ 1,388

XML

Provisions and other liabilities - Asset retirement obligations (ARO) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Disclosure of other provisions and other liabilities [line items]
Non-current portion - beginning period	$ 15,633
Current portion, reported as trade, other payables and provisions, beginning	659
Provisions and other liabilities at the beginning period	16,292
New or increased provisions and other liabilities	931
Change in estimates	870
Amounts charged against provisions and other liabilities	(427)
Effects of change in the discount rate	(263)
Reduction due to divestments	(306)
Accretion expenses	538
Reclassification and transfer	(1,561)
Currency translation	(128)
Provisions and other liabilities at ending period	15,946
Non-current portion - ending period	15,304
Current portion, reported as trade, other payables and provisions, ending	642
Asset retirement obligations [Member]
Disclosure of other provisions and other liabilities [line items]
Non-current portion - beginning period	11,569
Current portion, reported as trade, other payables and provisions, beginning	165
Provisions and other liabilities at the beginning period	11,734
New or increased provisions and other liabilities	488
Change in estimates	845
Amounts charged against provisions and other liabilities	(126)
Effects of change in the discount rate	(276)
Reduction due to divestments	(403)
Accretion expenses	462
Reclassification and transfer	(174)
Currency translation	(190)
Provisions and other liabilities at ending period	12,360
Non-current portion - ending period	12,171
Current portion, reported as trade, other payables and provisions, ending	190
Other provisions and liabilities [Member]
Disclosure of other provisions and other liabilities [line items]
Non-current portion - beginning period	4,064
Current portion, reported as trade, other payables and provisions, beginning	494
Provisions and other liabilities at the beginning period	4,558
New or increased provisions and other liabilities	443
Change in estimates	25
Amounts charged against provisions and other liabilities	(301)
Effects of change in the discount rate	13
Reduction due to divestments	97
Accretion expenses	76
Reclassification and transfer	(1,387)
Currency translation	62
Provisions and other liabilities at ending period	3,586
Non-current portion - ending period	3,133
Current portion, reported as trade, other payables and provisions, ending	$ 452

XML

Provisions and other liabilities - Expected timing of cash outflows (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of other provisions and other liabilities [line items]
Total provision	$ 15,946	$ 16,292
2024 - 2028 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	4,092
2029 - 2033 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	1,339
2034 - 2038 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	2,739
2039 - 2043 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	4,568
Thereafter [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	3,208
Asset retirement obligations [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	12,360	$ 11,734
Asset retirement obligations [Member] | 2024 - 2028 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	1,512
Asset retirement obligations [Member] | 2029 - 2033 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	997
Asset retirement obligations [Member] | 2034 - 2038 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	2,605
Asset retirement obligations [Member] | 2039 - 2043 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	4,610
Asset retirement obligations [Member] | Thereafter [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	2,636
Other provisions, including claims and litigations [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	3,586
Other provisions, including claims and litigations [Member] | 2024 - 2028 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	2,580
Other provisions, including claims and litigations [Member] | 2029 - 2033 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	342
Other provisions, including claims and litigations [Member] | 2034 - 2038 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	134
Other provisions, including claims and litigations [Member] | 2039 - 2043 [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	(42)
Other provisions, including claims and litigations [Member] | Thereafter [Member]
Disclosure of other provisions and other liabilities [line items]
Total provision	$ 572

XML

Trade, other payables and provisions (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of transactions between related parties [line items]
Trade payables	$ 5,317	$ 6,207
Non-trade payables and accrued expenses	2,210	2,688
Total financial trade and other payables	11,052	12,449
Current portion of provisions and other non-financial payables	819	903
Trade, other payables and provisions	11,870	13,352
Joint venture [Member]
Disclosure of transactions between related parties [line items]
Related party payables	$ 2,283	$ 2,074

XML

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Lease revenue recognized	$ 337	$ 319

XML

Leases - Information related to lease payments and lease liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease liabilities [abstract]
Lease interest	$ 132	$ 90	$ 93
Current leases, presented within current Finance debt	1,279	1,258
Noncurrent Leases	2,291	2,409
Lease liabilities [Member]
Lease liabilities [abstract]
Liabilities arising from financing activities, beginning balance	3,667	3,562
New leases, Including remeasurements and cancelations	1,379	1,644
Gross lease payments	(1,590)	(1,484)
Lease interest	138	95
Lease repayments	(1,451)	(1,389)
Foreign currency translation effects	(25)	(149)
Liabilities arising from financing activities, ending balance	$ 3,570	$ 3,667	$ 3,562

XML

Leases - Non-current debt maturity profile (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Lease liabilities [abstract]
Total repayment of non-current lease liability	$ 2,291	$ 2,409
Year 2 and 3 [Member]
Lease liabilities [abstract]
Total repayment of non-current lease liability	1,342	1,360
Year 4 and 5 [Member]
Lease liabilities [abstract]
Total repayment of non-current lease liability	470	483
After 5 years [Member]
Lease liabilities [abstract]
Total repayment of non-current lease liability	$ 478	$ 566

XML

Other commitments, contingent liabilities and contingent assets (Details) $ in Millions		12 Months Ended
	Mar. 31, 2023	Dec. 31, 2023 USD ($) Wells	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)
Disclosure of other provisions and other liabilities [line items]
Contractual commitments		$ 11,259
Trade, other payables and provisions		11,870		$ 13,352
Proportion of ownership interest divested	100.00%
Current tax payable		12,306		$ 17,655
Wells committed to drill [Member]
Disclosure of other provisions and other liabilities [line items]
Contractual commitments		$ 609
Number of wells, committed to drill | Wells		34
Average ownership interest in wells committed to drill		46.00%
Various long term agreements [Member] | Maximum [Member]
Disclosure of other provisions and other liabilities [line items]
Contract Term		2060
Leases Agreements [Member]
Disclosure of other provisions and other liabilities [line items]
Provisions, net of tax		$ 3,600
Agbami redetermination [Member]
Disclosure of other provisions and other liabilities [line items]
Reduction in exposure			$ (822)
Guarantees [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		1,564
Claim from Petrofac [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		$ 163
Percentage Share of Contingent Liability		31.85%
Claim from Petrofac [Member] | Petrofac International (UAE) LLC [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		$ 533
Dispute with Brazilian tax authorities [Member] | Maximum [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		$ 159
KKD oil sands partnership [Member]
Disclosure of other provisions and other liabilities [line items]
Proportion of ownership interest divested		40.00%
KKD oil sands partnership [Member] | Maximum [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		$ 380
New Brazilian law [Member]
Disclosure of other provisions and other liabilities [line items]
Percent of savings from ICMS tax incentives		10.00%
New Brazilian law [Member] | Maximum [Member]
Disclosure of other provisions and other liabilities [line items]
Estimated exposure		$ 114

XML

Other commitments, contingent liabilities and contingent assets - long-term commitments (Details) $ in Millions	Dec. 31, 2023 USD ($)
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	$ 15,218
2024 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	2,659
2025 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	1,972
2026 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	1,615
2027 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	1,187
2028 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	1,010
Later than Five Years [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Contractual and other long term commitments	$ 6,775

XML

Related parties - Narrative (Details) - USD ($)		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		$ 1,291,000,000	$ 2,063,000,000
Trade and other receivables	[1]	16,933,000,000	22,452,000,000
Non-current provisions and other liabilities		15,304,000,000	15,633,000,000
Current finance debt		5,996,000,000	4,359,000,000
Related parties [Member]
Disclosure of transactions between related parties [line items]
Current finance debt		$ 1,242,000,000	1,479,000,000
Equinor ASA [member]
Disclosure of transactions between related parties [line items]
Ownership interests held by shareholder		67.00%
Equinor ASA [member] | Gassco AS [Member]
Disclosure of transactions between related parties [line items]
Settlement of liabilities by entity on behalf of related party, related party transactions		$ 1,000,000,000.0	1,200,000,000	$ 1,000,000,000.0
Norwegian State [Member]
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		0	1,461,000,000
Trade and other receivables		1,007,000,000	1,103,000,000
Non-current provisions and other liabilities		850,000,000	2,072,000,000
Current finance debt		893,000,000	0
Norwegian State [Member] | Gas sales activities [Member]
Disclosure of transactions between related parties [line items]
Trade and other receivables		100,000,000
Non-current provisions and other liabilities		100,000,000
Norwegian State [Member] | Oil and gas assets [Member]
Disclosure of transactions between related parties [line items]
Purchases of of goods with related party		$ 10,100,000,000	12,600,000,000	$ 9,600,000,000
Folketrygdfondet [Member]
Disclosure of transactions between related parties [line items]
Ownership interests held by shareholder		3.60%
SDFI [Member]
Disclosure of transactions between related parties [line items]
Non-current provisions and other liabilities		$ 800,000,000	2,100,000,000
Current finance debt		$ 900,000,000	$ 0

[1] Of which Trade receivables of USD 13,017   million in 2023 and USD 17,334   million in 2022.

XML

Related parties - Outstanding balances to related parties split on SDFI and other related parties (Details) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		$ 1,291	$ 2,063
Trade and other receivables	[1]	16,933	22,452
Non-current provisions and other liabilities		15,304	15,633
Trade, other payables and provisions		11,870	13,352
Current finance debt		5,996	4,359
Related parties [Member]
Disclosure of transactions between related parties [line items]
Current finance debt		1,242	1,479
Norwegian State's Direct Financial Interests [Member]
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		0	1,461
Trade and other receivables		1,007	1,103
Non-current provisions and other liabilities		850	2,072
Trade, other payables and provisions		1,195	1,419
Current finance debt		893	0
Equity accounted associated companies and other related parties [Member]
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		103	61
Trade and other receivables		49	173
Non-current provisions and other liabilities		0	0
Trade, other payables and provisions		47	60
Current finance debt		0	0
Third parties [Member]
Disclosure of transactions between related parties [line items]
Prepayments and financial receivables		1,188	541
Trade and other receivables		15,877	21,176
Non-current provisions and other liabilities		14,454	13,561
Trade, other payables and provisions		10,628	11,873
Current finance debt		$ 5,103	$ 4,359

[1] Of which Trade receivables of USD 13,017   million in 2023 and USD 17,334   million in 2022.

XML

Financial instruments and fair value measurement - Classes of financial assets instruments (Details) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022
Asset [abstract]
Noncurrent Derivative Financial Assets		$ 559	$ 691
Non-current financial investments		3,441	2,733
Prepayments and financial receivables		1,291	2,063
Trade and other receivables	[1]	16,933	22,452
Current Derivative Financial Assets		1,378	4,039
Current financial investments		29,224	29,876
Cash and cash equivalents	[2]	9,641	15,579
Total		62,467	77,433
Non-financial assets [Member]
Asset [abstract]
Prepayments and financial receivables		950	404
Trade and other receivables		740	841
Total		1,690	1,245
Amortised cost [Member]
Asset [abstract]
Non-current financial investments		75	117
Prepayments and financial receivables		341	1,658
Trade and other receivables		16,193	21,611
Current financial investments		28,822	29,577
Cash and cash equivalents		7,767	12,473
Total		53,198	65,436
Financial assets at fair value through profit or loss, category [Member]
Asset [abstract]
Noncurrent Derivative Financial Assets		559	691
Non-current financial investments		3,366	2,616
Current Derivative Financial Assets		1,378	4,039
Current financial investments		402	300
Cash and cash equivalents		1,875	3,106
Total		$ 7,580	$ 10,752

[1] Of which Trade receivables of USD 13,017   million in 2023 and USD 17,334   million in 2022.

[2] Includes collateral deposits of USD 1,572   million for 2023 related to certain requirements   set out by exchanges where Equinor is participating. The corresponding figure for 2022 is   USD 6,128   million.

XML

Financial instruments and fair value measurement - Classes of financial liabilities instruments (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Liabilities [abstract]
Non-current finance debt	$ 22,230	$ 24,141
Non-current derivative financial instruments	1,795	2,376
Trade and other payables	11,870	13,352
Current finance debt	5,996	4,359
Dividends payable	2,649	2,808
Current Derivative Financial Liabilities	1,619	4,106
Total	46,159	51,142
Non-financial liabilities [Member]
Liabilities [abstract]
Trade and other payables	819	903
Total	819	903
Amortised cost [Member]
Liabilities [abstract]
Non-current finance debt	22,230	24,141
Trade and other payables	11,052	12,449
Current finance debt	5,996	4,359
Dividends payable	2,649	2,808
Total	41,927	43,757
Financial liabilities at fair value through profit or loss, category [member]
Liabilities [abstract]
Non-current derivative financial instruments	1,795	2,376
Current Derivative Financial Liabilities	1,619	4,106
Total	$ 3,414	$ 6,482

XML

Financial instruments and fair value measurement - Fair value heirarchy (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of fair value measurement [line items]
Non-current derivative financial instruments - assets	$ 559	$ 691
Current financial investments	29,224	29,876
Current derivative financial instruments - assets	1,378	4,039
Non-current derivative financial instruments - liabilities	(1,795)	(2,376)
Current derivative financial instruments liabilities	(1,619)	(4,106)
Fair value [Member]
Disclosure of fair value measurement [line items]
Non-current financial investments	3,366	2,616
Non-current derivative financial instruments - assets	559	691
Current financial investments	402	300
Current derivative financial instruments - assets	1,378	4,039
Cash equivalents	1,875	3,106
Non-current derivative financial instruments - liabilities	(1,795)	(2,376)
Current derivative financial instruments liabilities	(1,619)	(4,106)
Net fair value	4,166	4,270
Level 1 [Member]
Disclosure of fair value measurement [line items]
Non-current financial investments	1,294	903
Non-current derivative financial instruments - assets	0	0
Current financial investments	0	0
Current derivative financial instruments - assets	6	25
Non-current derivative financial instruments - liabilities	0	0
Current derivative financial instruments liabilities	0	(60)
Net fair value	1,300	868
Level 2 [Member]
Disclosure of fair value measurement [line items]
Non-current financial investments	1,528	1,222
Non-current derivative financial instruments - assets	104	97
Current financial investments	402	300
Current derivative financial instruments - assets	1,195	3,722
Cash equivalents	1,875	3,106
Non-current derivative financial instruments - liabilities	(1,754)	(2,352)
Current derivative financial instruments liabilities	(1,577)	(3,952)
Net fair value	1,773	2,143
Level 3 [Member]
Disclosure of fair value measurement [line items]
Non-current financial investments	543	491
Non-current derivative financial instruments - assets	455	594
Current derivative financial instruments - assets	177	292
Non-current derivative financial instruments - liabilities	(42)	(24)
Current derivative financial instruments liabilities	(41)	(94)
Net fair value	$ 1,092	$ 1,259

XML

Financial instruments and fair value measurement - Reconciliation of changes in fair value (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Level 3 [Member]
Disclosure of fair value measurement [line items]
Total gains and losses recognised in statement of income, assets	$ (191)	$ 370

XML

Financial instruments and fair value measurement - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Currency risk sensitivity [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Percentage of reasonably possible change, market risk	11.00%	12.00%
Interest rate sensitivity [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Percentage of reasonably possible change, market risk	1.30%	1.20%
Commodity price sensitivity [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Percentage of reasonably possible change, market risk	30.00%	30.00%
Level 3 [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Total gains and losses recognised in statement of income, assets	$ (191)	$ 370
The amount of increase (decrease) in the fair value of asset	(167)	416
Extrapolation approach [Member] | Level 3 [Member] | Certain earn-out agreements [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
The amount of increase (decrease) in the fair value of asset	$ 300	$ 500

XML

Subsequent event (Details)	Mar. 31, 2024	Jan. 31, 2024
Acquisition of interests [Member] | Empire Offshore Wind Holdings LLC [Member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of voting equity interests acquired		50.00%
Acquisition of interests [Member] | Beacon Wind Holdings LLC [Member] | BP P.L.C. [Member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of voting equity interests acquired		50.00%
Acquisition of interests [Member] | South Brooklyn Marine Terminal [Member] | Forecast [Member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of voting equity interests acquired	50.00%
Disposal of interests [Member] | Beacon Wind Holdings LLC [Member] | Forecast [Member]
Disclosure of non-adjusting events after reporting period [line items]
Ownership interst anticipated to be derecognised	50.00%