DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Registrant Name | Equinor ASA |
Entity Central Index Key | 0001140625 |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | Yes |
Entity Common Stock Shares Outstanding | 3,328,308,548 |
Trading Symbol | EQNR |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues | $ 78,555 | $ 60,971 | $ 45,688 | ||
Net income/(loss) from equity accounted investments | 291 | 188 | (119) | ||
Other Income | 746 | 27 | 304 | ||
Total revenues and other income | 79,593 | 61,187 | 45,873 | ||
Purchases (net of inventory variation) | (38,516) | (28,212) | (21,505) | ||
Operating expenses | (9,528) | (8,763) | (9,025) | ||
Selling, general and administrative expenses | (758) | (738) | (762) | ||
Depreciation, amortisation and net impairment losses | (9,249) | (8,644) | [1] | (11,550) | [1] |
Exploration expenses | (1,405) | (1,059) | (2,952) | ||
Net operating income/(loss) | 20,137 | 13,771 | 80 | ||
Net financial items | (1,263) | (351) | (258) | ||
Income/(loss) before tax | 18,874 | 13,420 | [1] | (178) | [1] |
Income tax | (11,335) | (8,822) | (2,724) | ||
Net income/(loss) | 7,538 | 4,598 | (2,902) | ||
Attributable to equity holders of the company | 7,535 | 4,590 | (2,922) | ||
Attributable to non-controlling interests | $ 3 | $ 8 | $ 20 | ||
Basic earnings per share (in USD) | $ 2.27 | $ 1.4 | $ (0.91) | ||
Diluted earnings per share (in USD) | $ 2.27 | $ 1.4 | $ (0.91) | ||
Weighted average number of ordinary shares outstanding (in millions) | 3,326 | 3,268 | 3,195 | ||
Weighted average number of ordinary shares outstanding, diluted (in millions) | 3,335 | 3,288 | 3,207 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated statements of comprehensive income [Abstrct] | |||
Net income/(loss) | $ 7,538 | $ 4,598 | $ (2,902) |
Actuarial gains (losses) on defined benefit pension plans | (110) | 172 | (503) |
Income tax effect on income and expenses recognised in OCI | 22 | (38) | 129 |
Items that will not be reclassified to the Consolidated statement of income | (88) | 134 | (374) |
Currency translation adjustments | (1,652) | 1,710 | 17 |
Net gains/(losses) from available for sale financial assets | 64 | (64) | 0 |
Share of OCI from equity accounted investments | (5) | (40) | 0 |
Items that may be subsequently reclassified to the Consolidated statement of income | (1,592) | 1,606 | 17 |
Other comprehensive income/(loss) | (1,680) | 1,741 | (357) |
Total comprehensive income/(loss) | 5,858 | 6,339 | (3,259) |
Attributable to the equity holders of the company | 5,855 | 6,330 | (3,279) |
Attributable to non-controlling interests | $ 3 | $ 8 | $ 20 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Noncurrent assets [abstract] | ||
Property, plant and equipment | $ 65,262 | $ 63,637 |
Intangible assets | 9,672 | 8,621 |
Equity accounted investments | 2,863 | 2,551 |
Deferred tax assets | 3,304 | 2,441 |
Pension assets | 831 | 1,306 |
Derivative financial instruments | 1,032 | 1,603 |
Financial investments | 2,455 | 2,841 |
Prepayments and financial receivables | 1,033 | 912 |
Total non-current assets | 86,452 | 83,911 |
Current assets [abstract] | ||
Inventories | 2,144 | 3,398 |
Trade and other receivables | 8,998 | 9,425 |
Derivative financial instruments | 318 | 159 |
Financial investments | 7,041 | 8,448 |
Cash and cash equivalents | 7,556 | 4,390 |
Total current assets | 26,056 | 25,820 |
Assets classified as held for sale | 0 | 1,369 |
Total assets | 112,508 | 111,100 |
Equity [abstract] | ||
Shareholders equity | 42,970 | 39,861 |
Non-controlling interests | 19 | 24 |
Total equity | 42,990 | 39,885 |
Noncurrent liabilities [abstract] | ||
Finance debt | 23,264 | 24,183 |
Deferred tax liabilities | 8,671 | 7,654 |
Pension liabilities | 3,820 | 3,904 |
Provisions | 15,952 | 15,557 |
Derivative financial instruments | 1,207 | 900 |
Total non-current liabilities | 52,914 | 52,198 |
Current liabilities [abstract] | ||
Trade, other payables and provisions | 8,369 | 9,737 |
Current tax payable | 4,654 | 4,057 |
Finance debt | 2,463 | 4,091 |
Dividend payable | 766 | 729 |
Derivative financial instruments | 352 | 403 |
Total current liabilities | 16,605 | 19,017 |
Liabilities directly associated with the assets classified as held for sale | 0 | 0 |
Total liabilities | 69,519 | 71,214 |
Total equity and liabilities | $ 112,508 | $ 111,100 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Share capital [member] | Addiitonal paid in capital [member] | Retained earnings [member] | Currency translation adjustments [member] | OCI from equity accounted investments [member] | Attributable to equity holders [member] | Non-controling interest [member] | |
Equity beginning balance at Dec. 31, 2015 | $ 40,307 | $ 1,139 | $ 5,720 | $ 38,693 | $ (5,281) | $ 0 | $ 40,271 | $ 36 | |
Net income/(loss) | (2,902) | (2,922) | (2,922) | 20 | |||||
Other comprehensive income/(loss) | (357) | (374) | 17 | 0 | (357) | ||||
Total comprehensive income/(loss) | (3,259) | ||||||||
Dividends | (1,920) | 17 | 887 | (2,824) | (1,920) | ||||
Other equity transactions | (29) | 1 | 0 | 2 | (30) | ||||
Equity ending balance at Dec. 31, 2016 | 35,099 | 1,156 | 6,607 | 32,573 | (5,264) | 0 | 35,072 | 27 | |
Net income/(loss) | 4,598 | 4,590 | 4,590 | 8 | |||||
Other comprehensive income/(loss) | 1,741 | 71 | 1,710 | (40) | 1,741 | ||||
Total comprehensive income/(loss) | 6,339 | ||||||||
Dividends | (1,534) | 24 | 1,333 | (2,891) | (1,534) | ||||
Other equity transactions | (18) | (8) | 0 | (8) | (10) | ||||
Equity ending balance at Dec. 31, 2017 | 39,885 | 1,180 | 7,933 | 34,342 | (3,554) | (40) | 39,861 | 24 | |
Net income/(loss) | 7,538 | 7,535 | 7,535 | 3 | |||||
Other comprehensive income/(loss) | (1,680) | (24) | (1,652) | [1] | (5) | (1,680) | |||
Total comprehensive income/(loss) | 5,858 | ||||||||
Dividends | (2,726) | 5 | 333 | (3,064) | (2,726) | ||||
Other equity transactions | (27) | (19) | 0 | (19) | (8) | ||||
Equity ending balance at Dec. 31, 2018 | $ 42,990 | $ 1,185 | $ 8,247 | $ 38,790 | $ (5,206) | $ (44) | $ 42,970 | $ 19 | |
[1] | 1) Numbers previously published under Available for sale financial assets column are transferred to Retained earnings column. For more information, see note 27 Changes in accounting policies. Refer to note 17 Shareholders’ equity and dividends. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | ||
Cash flows from (used in) operating activities [abstract] | |||||
Income / (loss) before tax | $ 18,874 | $ 13,420 | [1] | $ (178) | |
Depreciation, amortisation and net impairment losses | 9,249 | 8,644 | [1] | 11,550 | |
Exploration expenditures written off | 357 | (8) | [1] | 1,800 | |
(Gains) losses on foreign currency transactions and balances | 166 | (127) | [1] | 120 | |
(Gains) losses on sales of assets and businesses | (648) | 395 | [1] | (110) | |
(Increase) decrease in other items related to operating activities | (526) | (884) | [1] | 877 | |
(Increase) decrease in net derivative financial instruments | 409 | 19 | [1] | 1,198 | |
Interest received | 176 | 148 | [1] | 134 | |
Interest paid | (441) | (622) | [1] | (548) | |
Cash flows provided by operating activities before taxes paid and working capital items | 27,615 | 20,985 | [1] | 14,843 | |
Taxes paid | (9,010) | (5,766) | [1] | (4,386) | |
(Increase) decrease in working capital | 1,090 | (417) | [1] | (1,639) | |
Cash flows provided by operating activities | 19,694 | 14,802 | [1] | 8,818 | |
Cash flows from (used in) investing activities [abstract] | |||||
Cash used in business combinations | (3,557) | 0 | [1] | 0 | |
Capital expenditures and investments | (11,367) | (10,755) | [1] | (12,191) | |
(Increase) decrease in financial investments | 1,358 | 592 | [1] | 877 | |
(Increase) decrease in derivatives financial instruments | 238 | (439) | [1] | 216 | |
(Increase) decrease in other items interest bearing | 343 | 79 | [1] | 107 | |
Proceeds from sale of assets and businesses | 1,773 | 406 | [1] | 761 | |
Cash flows used in investing activities | (11,212) | (10,117) | [1] | (10,230) | |
Cash flows from (used in) financing activities [abstract] | |||||
New finance debt | 998 | 0 | [1] | 1,322 | |
Repayment of finance debt | 2,875 | (4,775) | [1] | (1,072) | |
Dividend paid | 2,672 | (1,491) | [1] | (1,876) | |
Net current finance debt and other | (476) | 444 | [1] | (333) | |
Cash flows provided by (used in) financing activities | (5,025) | (5,822) | [1] | (1,959) | |
Net increase (decrease) in cash and cash equivalents | 3,458 | (1,137) | [1] | (3,371) | |
Effect of exchange rate changes on cash and cash equivalents | (292) | 436 | [1] | (152) | |
Cash and cash equivalents at the beginning of the period (net of overdraft) | 4,390 | 5,090 | [1] | 8,613 | |
Cash and cash equivalents at the end of the period (net of overdraft) | $ 7,556 | $ 4,390 | $ 5,090 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS - (Parenthectical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash and cash equivalents includes: [abstract] | ||||
Bank overdrafts | [1] | $ 0 | $ 0 | $ 0 |
Interest paid [abstract] | ||||
Capitalised interest | [2] | $ 552 | $ 454 | $ 355 |
[1] | Cash and cash equivalents include bank overdrafts which were zero at 31 December 2018, 2017 and 2016 . | |||
[2] | Interest paid in cash flows provided by operating activities is excluding capitalised interest of USD 552 million at 31 December 201 8 , USD 454 million at 31 December 201 7 and USD 3 55 million at 31 December 201 6 . Capitalised interest is included in Capital expenditures a nd investments in cash flows used in investing activities. |
Organisation
Organisation | 12 Months Ended |
Dec. 31, 2018 | |
Organisation [Abstract] | |
Disclosure of notes and other explanatory information [text block] | 1 Organisation Equinor ASA , originally Den Norske Stats Oljeselskap AS, was founded in 1972 and is incorporated and domiciled in Norway . The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway . Statoil ASA changed its name to Equinor ASA following approval of the name change by the company’s annual general meeting on 15 May 2018. Equinor ASA ’s shares are listed on the Oslo Børs ( OSL, Norway) and the New York Stock Exchange ( NYSE, USA). The Equi nor group's business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products and other forms of energy. All the Equinor group's oil and gas activities and net assets on the No rwegian continental shelf are owned by Equinor Energy AS, a 100% owned operating subsidiary . Equinor Energy AS is co-obligor or guarantor of certain debt obligations of Equinor ASA. The Consolidated financial statements of Equinor for the full year 201 8 were authorised for issue in accordance with a resolution of the board of directors on 5 March 201 9 . |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies [Abstract] | |
Disclosure of significant accounting policies [text block] | 2 Significant acco unting policies Statement of compliance The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and with IFRSs as issued by the International Accounting Standards Board (IASB), effective at 31 December 2018. Basis of preparation The financial statements are prepared on the historical cost basis with some exceptions, as detailed in the accounting pol icies set out below. The policies described in the main part of this note are the ones in effect at the balance sheet date, and these policies have been applied consistently to all periods presented in these Consolidated financial statements , except as oth erwise noted in disclosure related to the impact of policy changes following the adoption of new accounting standards in 2018. Certain amounts in the comparable years have been restated to conform to current year presentation. The subtotals and totals in s ome of the tables may not equal the sum of the amounts shown due to rounding. Operating related expenses in the Consolidated statement of income are presented as a combination of function and nature in conformity with industry practice. Purchases [net o f inventory variation] and Depreciation, amortisation and net impairment losses are presented in separate lines based on their nature, while Operating expenses and Selling, general and administrative expenses as well as Exploration expenses are presented o n a functional basis. Significant expenses such as salaries, pensions, etc. are presented by their nature in the notes to the Consolidated financial statements. Changes in significant accounting policies in the current period With effect from 1 Januar y 2018, Equinor implemented IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. As of the same date, Equinor voluntarily changed its policy for recognition of revenue from the production of oil and gas properties in which Equino r shares an interest with other companies, as well as its policy for presentation of certain elements related to derivatives, non-cash currency effects and working capital items in the statement of cash flows. Reference is made to Note 27 Changes in accoun ting policies for further information about these policy changes. Standards, amendments to standards, and interpretations of standards, issued but not yet adopted At the date of these Consolidated financial statements, the following standards, am endments to standards and interpretations of standards applicable to Equinor have been issued, but were not yet effective: IFRS 16 Leases IFRS 16 will be implemented by Equinor on 1 January 2019. Reference is made to n ote 23 Implementation of IFRS 16 L eases for further information about the standard, the policy choices made by Equinor, and the IFRS 16 implementation impact. Other standards, amendments to standards and interpretations of standards The amendments to IFRS 10 Consolidated Financial State ments and IAS 28 Investments in Associates and Joint Ventures, issued in 2014 and effective from a future date to be determined by the IASB, establish requirements for the accounting for sales or contributions of assets between an investor and its associat e or joint venture. The amendments are to be applied prospectively. Equinor has not determined an adoption date for the amendments. The amendments to IFRS 3 Business Combinations, issued in October 2018 and effective from 1 January 2020, introduce improve ments to the definition of a business. The amendments also establish an optional test to identify a concent ration of fair value that, if applied and met, would lead to the conclusion that an acquired set of activities and assets is not a business. The amen dments are to be applied for relevant transactions that occur on or after the implementation date. Equinor has not yet determined an adoption date for the amendments. Other standards, amendments to standards, and interpretations of standards, issued but not yet effective, are either not expected to impact Equinor’s Consolidated financial statements materially, or are not expected to be relevant to Equinor's Consolidated financial statements upon adoption. Voluntary change in significant accounting policies decided upon, but not yet adopted In 2018, Equinor voluntarily changed its policy for recognition of revenue from the production of oil and gas properties in which Equinor shares an interest with other companies, from previously recognising revenu e on the basis of volumes lifted and sold to customers during the period (the sales method) to instead recognising revenue based on Equinor’s ownership in producing fields. Reference is made to n ote 27 Changes in accounting policies for further details. Th e issue of which method is the most appropriate for reflecting revenues related to lifting imbalances, and how to recognise revenue from the production of oil and gas properties in which an entity shares an interest with other companies, has been the subje ct of discussions in the IFRS Interpretations Committee (IFRIC) during the last months of 2018 and into 2019 . Based on the IFRIC discussions, Equinor has decided to return to the sales method. This change in policy will be implemented on 1 January 2019 and the impact on Equinor’s equity upon implementation is expected to be immaterial. Basis of consolidation The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries and include Equinor’s interest in jointly controlled an d equity accounted investments . Subsidiaries Entities are determined to be controlled by Equinor, and consolidated in Equinor's financial statements, when Equinor has power over the entity, ability to use that power to affect the entity's returns, and e xposure to, or rights to, variable returns from its involvement with the entity. All intercompany balances and transactions, including unrealised profits and losses arising from Equinor's internal transactions, have been eliminated in full. Non-contr olling interests are presented separately within equity in the balance sheet. Joint operations and similar arrangements, joint ventures and associates A joint arrangement is present where Equinor holds a long-term interest which is jointly controlled by Equinor and one or more other venturers under a contractual arrangement in which decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are classified as either joint operations or joi nt ventures. The parties to a joint operation have rights to the assets and obligations for the liabilities, relating to their respective share of the joint arrangement. In determining whether the terms of contractual arrangements and other facts and ci rcumstances lead to a classification as joint operations, Equinor considers the nature of products and markets of the arrangements and whether the substance of their agreements is that the parties involved have rights to substantially all the arrangement's assets. Equinor accounts for the assets, liabilities, revenues and expenses relating to its interests in joint operations in accordance with the principles applicable to those particular assets, liabilities, revenues and expenses. Acquisition of ownersh ip shares in joint operations in which the activity constitutes a business, are accounted for in accordance with the principles of business combinations. Those of Equinor's exploration and production licence activities that are within the scope of IFRS 1 1 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 consen t 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 o utside the scope of IFRS 11, and these activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently there are no significant differences in Equinor's accounting for unincorporated licence arrangements whether in scope of IFRS 11 or not. Joint ventures, in which Equinor has rights to the net assets, are accounted for using the equity method. 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, as well as Equinor’s participation in joint arrangements that are joint ventures, are classified as Equity accounted investments. These currently include the majority of Equinor’s investments in the New Energy Solutions area. Under the equity method, the investment is carried on the 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. Goodwill may arise as the surplus of the cost of investment over Equinor’s share of the net fair value of the identifiable assets and liabilities of the joint venture or associate. Such goodwill is recorded within the corresponding investment. 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. Where material differences in accounting policies arise, adjustments are made to the financial statements of equity -accounted entities in order to bring the accounting policies used into line with Equinor’s. Material unrealised gains on transactions between Equinor and its equity-accounted entities are eliminated to the extent of Equinor’s interest in each equity-accou nted entity. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Equinor assesses investments in equity-accounted entities for impairment whenever events or changes in circumstances indi cate that the carrying value may not be recoverable. 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 reduce the c osts in the Consolidated statement of income. 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 Consol idated balance sheet. Reportable segments Equinor identifies its business areas on the basis of those components of Equinor that are regularly reviewed by the chief operating decision maker, Equinor's corporate executive committee (CEC). Equinor combine s business areas when these satisfy relevant aggregation criteria. Equinor's accounting policies as described in this note also apply to the specific financial information included in reportable segments-related disclosure in these Consolidated financia l statements. Foreign currency translation In preparing the financial statements of the individual entities, transactions in foreign currencies (those other than functional currency) are translated at the foreign exchange rate at the dates of the transa ctions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the foreign exchange rate at the balance sheet date. Foreign exchange differences arising on translation are recognised in the Consolidat ed statement of income as foreign exchange gains or losses within net financial items. Foreign exchange differences arising from the translation of estimate-based provisions, however, generally are accounted for as part of the change in the underlying esti mate and as such may be included within the relevant operating expense or income tax sections of the Consolidated statement of income depending on the nature of the provision. Non-monetary assets that are measured at historical cost in a foreign currency a re translated using the exchange rate at the date of the transactions . Loans from Equinor ASA to subsidiaries with other functional currencies than the parent company, and for which settlement is neither planned nor likely in the foreseeable future, are co nsidered part of the parent company’s net investment in the subsidiary . Foreign exchange differences arising on such loans are recognised in Other comprehensive income (OCI) in the Consolidated financial statements. Presentation currency For the purpose of the Consolidated financial statements, the statement of income, the balance sheet and the cash flows of each entity are translated from the functional currency into the presentation currency, USD. The assets and liabilities of entities whose functional currencies are other than USD, are translated into USD at the foreign exchange rate at the balance sheet date. The revenues and expenses of such entities are translated using the foreign exchange rates on the dates of the transactions. Foreign exchange di fferences arising on translation from functional currency to presentation currency are recognised separately in OCI. The cumulative amount of such translation differences relating to an entity and previously recognised in OCI, is reclassified to the Consol idated statement of income and reflected as a part of the gain or loss on disposal of that entity. Business combinations 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 under the relevant IFRS criteria to establish whether the transaction represents a business combination or an asset purchase. Depending on the specific facts, acquisitions of exploration and evaluation licences for which a development decision has not yet been made, have largely been concluded to represent asset purchases. Business combinations, except for transactions between entities under common control, are accounted for using the acquisition method of accounting. Th e acquired identifiable tangible and intangible assets, liabilities and contingent liabilities are measured at their fair values at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative expenses. R evenue 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 contracts with customers is recognis ed upon satisfaction of the performance obligations for the transfer of goods and services in each such contract. The revenue amounts that are recognised reflect the consideration to which Equinor expects to be entitled in exchange for those goods and serv ices. Revenue from the sale of crude oil, natural gas, petroleum products and other merchandise is recognised when a customer obtains control of those products, which 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, sales are completed over time in line with the delivery of the actual physical quantities. Revenue is presented net of customs, excise taxes and royalties paid in-kind on petroleum products. Sales and purchases of physical commodities, which are not settled net, are presented on a gross basis as revenues from contracts with customers and purchases [net of inventory variation] in the statement of in come. Other revenue Items representing a form of revenue, or which are closely connected with revenue transactions, are presented as Other revenue if they do not qualify as revenue from contracts with customers. Other revenue includes taxes paid in - kind under certain production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments connected with sales contracts or revenue-related risk management. Revenues from the production of oil and gas prop erties in which Equinor shares an interest with other companies are recognised on the basis of Equinor’s ownership in producing fields. Adjustments for imbalances (overlift or underlift) between oil and gas production and sales are presented as Other reven ue, and reflected at fair value in the balance sheet as short-term receivables or payables. 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 SDFI. All purchases and sales of the SDFI's oil production are classified as purchases [net of inventory variation] and revenues from contracts with customers, respectivel y. Equinor sells, in its own name, but for the Norwegian State's account and risk, the State's production of natural gas. These sales and related expenditures refunded by the Norwegian State are presented net in the Consolidated financial statements. Emp loyee benefits Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the period in which the associated services are rendered by employees of Equinor. Research and development Equinor undertakes resear ch and development both on a funded basis for licence holders and on an unfunded basis for projects at its own risk. Equinor's own share of the licence holders' funding and the total costs of the unfunded projects are considered for capitalisation under th e applicable IFRS requirements. Subsequent to initial recognition, any capitalised development costs are reported at cost less accumulated amortisation and accumulated impairment losses. Income tax Income tax in the Consolidated statement of income comp rises current and deferred tax expense. Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in OCI. Current tax consists of the expected tax payable on the taxable income for the year and any adjus tment to tax payable for previous years. Uncertain tax positions and potential tax exposures are analysed individually, and the best estimate of the probable amount for liabilities to be paid (unpaid potential tax exposure amounts, including penalties) and for assets to be received (disputed tax positions for which payment has already been made) in each case is recognised within current tax or deferred tax as appropriate. Interest income and interest expenses relating to tax issues are estimated and recogni sed in the period in which they are earned or incurred, and are presented within net financial items in the Consolidated statement of income. Uplift benefit on the NCS is recognised when the deduction is included in the current year tax return and impacts taxes payable. 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, subject to the initial recognition exemption. The amount of deferred tax is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asse t is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. In order for a deferred tax asset to be recognised based on future taxable income, convincing evidence is required, taking into account the existence of contracts, production of oil or gas in the near future based on volumes of proved reserves, observable prices in active markets, expected volatility of trading profits, expected currency rate movements and similar fact s and circumstances. A deferred tax liability and a corresponding deferred tax asset are recogni s ed when an asset retirement obligation is initially reflected in the accounts. 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 and to drill and equip exploratory wells are capitalised as exploration and evaluation expenditures within i ntangible assets until the well is complete and the results have been evaluated, or there is any other indicator of a potential impairment. Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangi ble assets during the evaluation phase of the find. 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 previou sly capitalised costs are evaluated for derecognition or tested for impairment. Geological and geophysical costs and other exploration and evaluation expenditures are expensed as incurred. Capitalised exploration and evaluation expenditures, including e xpenditures to acquire mineral interests in oil and gas properties, related to offshore wells that find proved reserves are transferred from exploration expenditures and acquisition costs - oil and gas prospects (intangible assets) to property, plant and e quipment at the time of sanctioning of the development project. For onshore wells where no sanction is required, the transfer of acquisition cost – oil and gas prospects (intangible assets) 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 made arrangements to fund a portion of the selling partner's (farmor'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 dispositions (farm-out arrangements) on a historical cost basis with no gain or loss recognition. A gain related to a post-tax based disposition of assets on the NCS includes the release of tax liabilities previously computed and recognised related to the assets in question. The resulting gross gain is recognised in full in other income in the Consolidated statement of income. Consideration from the sale of an undeveloped part of an onshore asset reduces the carrying amount of the asset. The part of the consideration that exceeds the ca rrying amount of the asset, if any, is reflected in the Consolidated statement of income under other income. Exchanges (swaps) of exploration and evaluation assets are accounted for at the carrying amounts of the assets given up with no gain or loss reco gnition. Property, plant and equipment Property, plant and equipment is reflected at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs direct ly attributable to bringing the asset into operation, the initial estimate of an asset retirement obligation, if any, 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. P roperty, plant and equipment include costs relating to expenditures incurred under the terms of 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. Exchanges of assets are measured at the fair value of the asset given up, unless the fair value of neither the asset received nor the asset given up is measurable with sufficient reliability. Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associate d with the item will flow to Equinor, the expenditure is capitalised. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and carried out at recurring intervals exceeding one year, are capitalised and amo rtised 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 i nfrastructure 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 cos ts, when designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the unit of production method based on proved reserves expected to be recovered from the area during the concession or co ntract period. Depreciation of production wells uses the unit of production method based on proved developed reserves, and capitalised acquisition costs of proved properties are depreciated using the unit of production 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 o f 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 relati on 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 de-recognised upon disposal or when no future economic benefits are expected to aris e from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in other income or operating expenses, respective ly, in the period the item is de-recognised. Assets classified as held for sale Non-current assets are classified separately as held for sale in the balance sheet when their carrying amount will be recovered through a sale transaction rather than throug h continuing use. This condition is met only when the sale is highly probable, the asset is available for immediate sale in its present condition, and management is committed to the sale, which should be expected to qualify for recognition as a completed s ale within one year from the date of classification. Liabilities directly associated with the assets classified as held for sale, and expected to be included as part of the sale transaction, are correspondingly also classified separately. Once classified a s held for sale, property, plant and equipment and intangible assets are not subject to depreciation or amortisation. The net assets and liabilities of a disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Leases Leases for which Equinor assumes substantially all the risks and rewards of ownership are reflected as finance leases. When an asset leased by a joint operation or similar arrangement to which Equinor is a part y qualifies as a finance lease, or when such an asset is leased by Equinor as operator directly on behalf of a joint operation or similar arrangement, Equinor reflects its proportionate share of the leased asset and related obligations. Finance leases are classified in the Consolidated balance sheet within property, plant and equipment and finance debt. All other leases are classified as operating leases, and the costs are charged to the relevant operating expense related caption on a straight-line basis ov er the lease term, unless another basis is more representative of the benefits of the lease to Equinor. Equinor distinguishes between lease and capacity contracts. Lease contracts provide the right to use a specific asset for a period of time, while cap acity contracts confer on Equinor the right to and the obligation to pay for certain volume capacity availability related to transport, terminal use, storage, etc. Such capacity contracts that do not involve specified assets or that do not involve substant ially all the capacity of an undivided interest in a specific asset are not considered by Equinor to qualify as leases for accounting purposes. Capacity payments are reflected as operating expenses in the Consolidated statement of income in the period for which the capacity contractually is available to Equinor. Intangible assets including goodwill Intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses. 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, its intangible exploration and evaluation assets are reclassified to property, plant and equipment. Goodwill is initially measured at the excess of the aggregate of the considera tion transferred and the amount recognised for any non-controlling interest over the fair value of the identifiable assets acquired and liabilities assumed in a business combination at the acquisition date. Goodwill acquired is allocated to each cash gener ating 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 losses. In acquisitions made on a post-tax basis according to the rules o n the NCS, a provision for deferred tax is reflected in the accounts based on the difference between the acquisition cost and the transferred tax depreciation basis. The offsetting entry to such deferred tax amounts is reflected as goodwill, which is alloc ated to the CGU or group of CGUs on whose tax depreciation basis the deferred tax has been computed. Financial assets Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset. For ad ditional information on fair value methods, refer to the Measurement of fair values section below. The subsequent measurement of the financial assets depends on which category they have been classified into at inception. At initial recognition, Equinor classifies its financial assets into the following three categories: Financial investments at amortised cost, at fair value through profit or loss, and at fair value through other comprehensive income based on an evaluation of the contractual terms and the business model applied. Certain long-term investments in other entities, which do not qualify for the equity method or consolidation, are included as at fair value through profit or loss. Cash and cash equivalents include cash in ha |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Disclosure of entity's operating segments [text block] | 3 Segments Equinor ’s operations are managed through the following business areas : Development & Production Norway (DPN), Development & Production Brazil (DPB) , Development & Production International (DPI), Marketing, Midstream & Processing (MMP), New Energy Solutions (NES), Technology, Projects & Drilling (TPD), Exploration (EXP) and Global Strategy & Business Development (GSB). With effect from the third quarter 2018 DPB was established as a separate business area and former Development and Production USA (D PUSA) was included in DPI. These changes have no effect on the reporting segments. The development and production business areas are responsible for the commercial development of the oil and gas portfolios within their respective geographical areas: DPN o n the Norwegian continental shelf, DPB in Brazil and DPI worldwide outside of DPN and DPB. Exploration activities are managed by a separate business area, which has the global responsibility across the group for discovery and appraisal of new resources. E xploration activities are allocated to and presented in the respective development and production business areas. TPD is responsible for the global project portfolio, well delivery, new technology and sourcing across Equinor. The activities are allocated and presented in the respective business areas receiving the deliveries. The MMP business area is responsible for marketing and trading of oil and gas commodities (crude, condensate, gas liquids, products, natural gas and liquefied natural gas), electrici ty and emission rights, as well as transportation, processing and manufacturing of the above-mentioned commodities, operations of refineries, terminals, processing and power plants. The NES business area is responsible for wind parks, carbon capture and s torage as well as other renewable energy and low-carbon energy solutions. The business areas DPI and DPB are aggregated into the reporting segment Exploration & Production International (E&P International). The aggregation has its basis in similar economi c characteristics, such as the assets’ long term and capital-intensive nature and exposure to volatile oil and gas commodity prices, the nature of products, service and production processes, the type and class of customers, the methods of distribution and regulatory environment. The reporting segments Exploration & Production Norway (E&P Norway) and MMP consists of the business areas DPN and MMP respectively. The business areas NES, GSB, TPD, EXP and corporate staffs and support functions are aggregated int o the reporting segment “Other” due to the immateriality of these areas. The majority of costs within the business areas GSB, TPD and EXP are allocated to the E&P International, E&P Norway and MMP reporting segments. The eliminations section includes the elimination of inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products. Inter-segment revenues are based upon estimated market prices. Segment data for the years ended 31 December 2018 , 2017 and 2016 are presented below. The measurement basis of segment profit is n et operating income/(loss) . In the tables below, deferred tax assets, pension assets and non-current financial assets are not allocated t o the segments. The line a dditions to PP&E, int angibles and equity accounted investments are excluding movements due to changes in asset retirement obligations. (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2018 Revenues third party, other revenues and other income 588 3,181 75,487 45 0 79,301 Revenues inter-segment 21,877 9,186 291 2 (31,355) 0 Net income/(loss) from equity accounted investments 10 31 16 234 0 291 Total revenues and other income 22,475 12,399 75,794 280 (31,355) 79,593 Purchases [net of inventory variation] 2 (26) (69,296) (0) 30,805 (38,516) Operating, selling, general and administrative expenses (3,270) (3,006) (4,377) (288) 653 (10,286) Depreciation, amortisation and net impairment losses (4,370) (4,592) (215) (72) 0 (9,249) Exploration expenses (431) (973) 0 0 0 (1,405) Net operating income/(loss) 14,406 3,802 1,906 (79) 103 20,137 Additions to PP&E, intangibles and equity accounted investments 6,947 7,403 331 519 0 15,201 Balance sheet information Equity accounted investments 1,102 296 92 1,373 0 2,863 Non-current segment assets 30,762 38,672 5,148 353 0 74,934 Non-current assets, not allocated to segments 8,655 Total non-current assets 86,452 (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2017 Revenues third party, other revenues and other income (23) 1,984 58,935 102 0 60,999 Revenues inter-segment 1) 17,586 7,249 83 1 (24,919) 0 Net income/(loss) from equity accounted investments 129 22 53 (16) 0 188 Total revenues and other income 17,692 9,256 59,071 87 (24,919) 61,187 Purchases [net of inventory variation] 1) 0 (7) (52,647) (0) 24,442 (28,212) Operating, selling, general and administative expenses 1) (2,954) (2,804) (3,925) (235) 418 (9,501) Depreciation, amortisation and net impairment losses (3,874) (4,423) (256) (91) (0) (8,644) Exploration expenses (379) (681) 0 0 0 (1,059) Net operating income/(loss) 10,485 1,341 2,243 (239) (59) 13,771 Additions to PP&E, intangibles and equity accounted investments 4,869 5,063 320 543 0 10,795 Balance sheet information Equity accounted investments 1,133 234 134 1,050 0 2,551 Non-current segment assets 30,278 36,453 5,137 390 0 72,258 Non-current assets, not allocated to segments 9,102 Total non-current assets 83,911 1) Parts of the gas transportation costs that previously were allocated to MMP and therefore deducted from the inter segment transfer price, are from 1 January 2017 allocated to E&P Norway. (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2016 Revenues third party, other revenues and other income 184 884 44,883 41 0 45,993 Revenues inter-segment 12,971 5,873 35 1 (18,880) (0) Net income/(loss) from equity accounted investments (78) (100) 61 (3) 0 (119) Total revenues and other income 13,077 6,657 44,979 39 (18,880) 45,873 Purchases [net of inventory variation] 1 (7) (39,696) (0) 18,198 (21,505) Operating, selling, general and administative expenses (2,547) (2,923) (4,439) (340) 463 (9,787) Depreciation, amortisation and net impairment losses (5,698) (5,510) (221) (121) 0 (11,550) Exploration expenses (383) (2,569) 0 0 0 (2,952) Net operating income /(loss) 4,451 (4,352) 623 (423) (219) 80 Additions to PP&E, intangibles and equity accounted investments 6,786 6,397 492 451 0 14,125 Balance sheet information Equity accounted investments 1,133 365 129 617 0 2,245 Non-current segment assets 27,816 36,181 4,450 352 0 68,799 Non-current assets, not allocated to segments 8,090 Total non-current assets 79,133 See note 4 Acquisitions and di sposals for information on transactions that affect the different segments. See note 10 Property, plant and equipment for further information on impairment losses and impairment reversals that affect the different segments. See note 11 Intangible assets for information on impairment losses and impairment reversals that affect the different segments. See note 2 4 Other commitments, contingent liabilities and contingent assets for information on contin gencies that affect the segments. Revenues from contract s with customers by geographical areas Equinor has business operations in more than 30 countries. When attributing revenues from contract s with customers to the country of the legal entity executing t he sale, Norway constitutes 75 % and the US constitutes 18 %. Non-current assets by country At 31 December (in USD million) 2018 2017 2016 Norway 34,952 34,588 31,484 USA 19,409 19,267 18,223 Brazil 7,861 4,584 5,308 UK 4,588 4,222 3,108 Angola 1,874 2,888 3,884 Canada 1,546 1,715 1,494 Azerbaijan 1,452 1,472 1,326 Algeria 986 1,114 1,344 Other countries 5,128 4,958 4,873 Total non-current assets 1) 77,797 74,809 71,043 Ex cluding deferred tax assets, pension assets and non-current financial assets. Revenues from contracts with customers and other revenues 2018 2017 2016 (in USD million) Crude oil 40,948 29,519 24,307 Natural gas 14,559 11,420 9,202 Refined products 13,124 11,423 8,142 Natural gas liquids 7,167 5,647 4,036 Transportation 1,033 Other sales 903 2,963 1 Total revenues from contracts with customers 77,734 60,971 45,688 Over/Under lift 137 Taxes paid in-kind 865 Gain (loss) on commodity derivatives (216) Other revenues 36 Total other revenues 821 Revenues 78,555 60,971 45,688 For 2017 and 2016, the transportation element included in sales transactions with customers are included in Crude Oil, Refined Products and Natural Gas Liquids. Other transportation was included in other sales. In 2018 these elements are included in Transportation. The elements included in Total other revenues were for 2017 and 2016 included in other sales. The changes are due to implementation of IFRS15, see note 27 Changes in accounting policies. |
Acquisitions and disposals
Acquisitions and disposals | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Business Combination And Discontinued Operatons [Abstract] | |
Disclosure Of Business Combination And Divestment [text block] | 4 Acquisitions and di sposals 2018 Acquisition of interests in Martin Linge field and Garantiana discovery In March 2018 Equinor and Total closed an agreement to acquire Total’s equity stakes in the Martin Linge field ( 51 %) and the Garantiana discovery ( 40 %) on the NCS. Through this transaction Equinor increased the ownership share in the Martin Linge field from 19 % to 70 %. Equinor has paid Total a consideration of USD 1,541 million and has taken over the operatorships. The assets and liabilities related to the acquired portion of Martin Linge and Garantiana have been reflected in accordance with the principles of IFRS 3 Business Combinations. The acquisition resulted in an increase of Equinor’s property, plant and equipment of USD 1,418 million, intangible assets of USD 116 million, goodwill of USD 265 million, deferred tax liabilities of USD 265 million and other assets of USD 7 million. The partners have joint control and Equinor continues to account for its interest on a pro-rata basis using Equinor's new ownership share. The transaction has been accounted for in the Exploration and Production Norway (E&P Norway) segment. Acquisition of Cobalt’s North Platte interest in the Gulf of Mexico In March 2018 Equinor’s co-bid with Total in the bankruptcy auction for Cobalt’s interest in the North Platte discovery was successful with an aggregate bid of USD 339 million. The transaction was closed in April 2018. Upon closing, Total as operator owns 60 % of North Platte and Equinor owns the remaining 40 %. The value o f the acquired exploration assets has been recognised in the Exploration & Production International (E&P International) segment for an amount of USD 246 million as intangible assets. Additionally, the transaction includes a contingent consideration up to U SD 20 million. Acquisition of interest in Roncador field in Brazil In June 2018 Equinor closed an agreement with Petrobras to acquire a 25 % interest in Roncador, an oil field in the Campos Basin in Brazil. Equinor paid Petrobras a cash consideration of US D 2,133 million, in addition to recognising a liability for contingent consideration of USD 392 million. The assets and liabilities related to the acquired portion of Roncador have been reflected in accordance with the principles of IFRS 3 Business Combina tions. The acquisition resulted in an increase of Equinor’s property, plant and equipment of USD 2, 550 million, intangible assets of USD 392 million and an increase in provisions of USD 808 million . At this stage, both the purchase price and the purchase p rice allocation are preliminary. The partners have joint control and Equinor will account for its interest on a pro-rata basis. The transaction has been accounted for in the E&P International segment. Acquisition and divestment of operated interest in Carcara field in Brazil In November 2016 Equinor acquired a 66 % operated interest in the Brazilian offshore licence BM-S-8 in the Santos basin from Petróleo Brasileiro S.A. (“Petrobras”). The value of the acquired exploration assets resulted in an increase in intangible assets of USD 2,271 million at the transaction date. In October 2017, a consortium comprising Equinor (operator, 40 %), ExxonMobil ( 40 %) and Galp ( 20 %) presented the winning bid ( 67.12 % of profit oil) for the Carcará North block in the Santo s basin. Equinor’s share of the pre-determined signature bonus paid by the consortium in December 2017 was USD 350 million and was recognised as an intangible asset. In December 2017 Equinor acquired Queiroz Galvão Exploração e Produção (“QGEP”)’s 10 % i nterest in licence BM-S-8 in Brazil’s Santos basin increasing the operated interest to 76 %. The value of the acquired exploration assets resulted in an increase in intangible assets of USD 362 million at the transaction date. In June 2018 Equinor complet ed the divestment of 39.5 % of its 76 % interest in BM-S-8, agreed in October 2017. 36.5 % interest was divested to ExxonMobil and 3 % to Galp for a total consideration of USD 1,493 million. The transaction is accounted for with no impact on the Consolidated s tatement of income. The cash proceeds from the sale were USD 1,016 million. The transactions are accounted for in the E&P International segment. In July 2018 Equinor and Barra Energia (“Barra”) signed an agreement to acquire Barra’s 10 % interest in the BM-S-8 licence in Brazil’s Santos basin. Upon closing, Equinor will sell down 3.5 % to ExxonMobil and 3 % to Galp . The total consideration for Barra’s 10% interest is USD 379 million . Upon c losing , which is subject to customary conditions, including partner and government approval and is expected within a year , Equinor will have fully align ed interests across BM-S-8 licence and Carcará North block , which are expected to be unitised in the future . Acquisition of 100% shares in Danske Commodities In July 201 8 Equinor entered an agreement to buy 100 % of the shares in a Danish energy trading company Danske Commodities (DC) for a consideration of EUR 400 million, which will be adjusted for certain net cash and net working capital positions at closing. In additio n, some smaller contingent payments depending on DC’s performance have been agreed. The transaction was closed in January 2019. Upon closing of the transaction, the assets and liabilities related to the acquired business will be reflected according to IFRS 3 Business Combinations. The transaction will be accounted for in the Marketing, Midstream & Processing (MMP) segment and will result in goodwill reflecting the expected synergies on the acquisition. At this stage, both the purchase price and the purchase price allocation are preliminary. Acquisition of interest in Rosebank project in UK In October 2018 Equinor signed an agreement to acquire Chevron’s 40 % operated interest in the Rosebank project, one of the largest undeveloped fields on the UK c ontinental s helf. The other partners in the field are Suncor Energy ( 40 %) and Siccar Point Energy ( 20 %). The transaction was closed in January 2019 and will be recogni s ed in the E&P International segment. Divestment of interests in discoveries on the Norw egian c ontinental s helf In December 2018 Equinor closed an agreement with Aker BP to sell its 77.8 % operated interest in the King Lear discovery on the Norwegian c ontinental s helf (NCS) for a total consideration of USD 250 million and an agreement with PGNiG to sell its non-operated interests in the Tommeliten discovery on the NCS for a total consideration of USD 220 million. A gain of USD 449 million has been presented in the line item O ther income in the Consolida ted statement of income in the E&P Norway segment. The transaction was tax exempt under the Norwegian petroleum tax legislation. Swap of interests in the Norwegian Sea and the North Sea region of the Norwegian c ontinental s helf In December 2018 Equinor and Faroe Petroleum have agreed a number of transactions in the Norwegian Sea and the North Sea region of the Norwegian c ontinental s helf (NCS). These transactions are considered a balanced swap when it comes to value with no cash consideration. The effect ive dates of the transactions are 1 January 2019 with closing subject to governmental approval. Upon closing, which is expected within the first half of 2019, the transactions wi ll be recognised in the E&P Norway segment. Acquisition of offshore wind leas e in the US In December 2018 Equinor submitted a winning bid of USD 135 million for lease OCS-A 0520, during the online offshore wind auction, where Equinor has been declared the provisional winner of one of three leases in an area offshore the Commonwealt h of Massachusetts. Upon completion, which is subject to governmental approval, the acquisition will be recognised in the Other segment in the first half of 2019. 2017 Sale of interest in Kai Kos Dehseh In January 2017 Equinor closed an agreement with Athabasca Oil Corporation to divest its 100 % interest in Kai Kos Dehseh (KKD) oil sands. The total consideration consisted of cash consideration of CAD 431 million (USD 328 million), 100 million common share s in Athabasca Oil Corporation and a series of contingent payments, measured at a combined fair value of CAD 185 million (USD 142 million) on the closing date. A loss on the transaction of USD 351 million was recognised as operating expense and included a reclassification of accumulated foreign exchange losses, previously recognised in other comprehensive income/(loss). The transaction was reflected in the E&P International segment. Extension of the Azeri-Chirag-Deepwater Gunashli production sharing agreem ent In September 2017 the Azeri-Chirag-Deepwater Gunashli (ACG) production sharing agreement was extended by 25 years. The transaction was recognised in the E&P International segment in the fourth quarter of 2017, following ratification by the Parliament ( Milli Majlis) of the Republic of Azerbaijan. As part of the new agreement, Equinor’s participating interest was adjusted to 7.27 % down from 8.56 %. Equinor's share of a total payment of USD 3.6 billion to the State Oil Fund of the Republic of Azerbaijan wil l be approximately USD 349 million to be paid over a period of 8 years . 2016 Acquisition of shares in Lundin Petroleum AB (Lundin) and sale of interests in the Edvard Grieg field In January 2016 Equinor acquired 11.93 % of the issued share capital and vot es in Lundin Petroleum AB for a total purchase price of SEK 4.6 billion (USD 541 million). In June 2016 Equinor closed an agreement with Lundin to divest its entire 15 % interest in the Edvard Grieg field, a 9 % interest in the Edvard Grieg Oil pipeline and a 6 % interest in the Utsira High Gas pipeline for an increased ownership share in Lundin up to 20.1 % of the outstanding shares and votes. In addition to the divested interests, a cash consideration of SEK 544 million (USD 64 million) was paid to Lundin. Fo llowing the completion of the transaction Equinor recognised a total net gain of USD 120 million related to the divestment presented in the line item O ther income in the Consolidated statement of income. In the segment reporting, the gain was recognised in the E&P Norway segment (USD 114 million) and in the Marketing, Midstream & Processing (MMP) segment (USD 5 million). The transaction was tax exempt under the Norwegian petroleum tax legislation. Following the increase in ownership interest on 30 June 20 16, Equinor obtained significant influence over Lundin, and accounted for the investment as an associate under the equity method. Excess values were allocated mainly to Lundin`s exploration and production licences on the Norwegian continental shelf. The in vestment in Lundin was included in the Consolidated balance sheet within line item E quity accounted investments with a book value of USD 1,199 million as per 30 June 2016. The Lundin investment is reported as part of the E&P Norway segment. For summarised financial information relating to investment in Lundin Petroleum AB, see note 12 Equity accounted investments. Following the change in accounting classification, Equinor recognised a gain of USD 127 million representing the cumulative gain on its initial 1 1.93% shareholding being reclassified from the line item N et gains (losses) from available for sale financial assets in the Consolidated statement of comprehensive income, to the N et financial items line item in the Consolidated statement of income. Sale of interest in Marcellus operated onshore play In July 2016 Equinor divested its operated properties in the US state of West Virginia to EQT Corporation for USD 407 million in cash. The transaction was reported as part of E&P International segment wi th an immaterial effect on the Consolidated statement of income recognised in the third quarter of 2016. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management [Abstract] | |
Disclosure of financial risk management [text block] | 5 Financial risk management General information relevant to financial risks Equinor 's business activities naturally expose Equinor to financial risk. Equinor’s approach to risk management includes assessing and managing risk in all activities using a holistic risk approach. Equinor takes into account correlations 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 ris k committee, which is headed by the chief financial officer and includes representatives from the principal business segments, is responsible for defining, developing and reviewing Equinor’s risk policies. The chief financial officer, assisted by the commi ttee, is also responsible for overseeing and developing Equinor’s Enterprise Risk Management and proposing appropriate measures to adjust risk at the corporate level. Major strategic transactions are assessed by Equinor’s corporate risk committee. An imp ortant element in risk management is the use of centralised trading mandates. Mandates in the trading organisations within crude oil, refined products, natural gas and electricity are relatively small compared to the total market risk of Equinor . Financia l risks Equinor’s activities expose Equinor to m arket risk (including commodity price risk, curren cy risk, interest rate risk and equity price risk), l iquidity risk and c redit risk . 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 rev enues 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 corporat e level , while short-term exposures are managed according to trading strategies and mandates . For more information on sensitivity ana lysis of market risk see note 2 6 Financial instruments: fair value measurement and sensitivity analysis of market risk. Commodity price risk Equinor’s most important long- term commodity risk (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. 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 and electricity. Equinor’s bila teral gas sales portfolio is exposed to various price indices and uses derivatives to manage the net gas sales exposure towards a diversified combination of long and short dated 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) in London, the New York Mercantile Exchange (NYMEX), the OTC Brent market, and crude and refined products swap markets. The term of natural gas and electric ity 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 NYMEX and ICE. Currency risk Equinor’s cash flows from operating activities deriving 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. Interest rate risk Bonds are normally issued at fixed rate s in a variety of local currencies (among others USD, EUR and G BP ). Bonds are normally converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond debt based on risk and reward consider ations from an enterprise risk management perspective. This means that the fix ed /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 18 Finance debt. 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 Equinor’s assets recognised in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive insurance compa ny is managed, with the aim of maintaining a moderate risk profile, through geographical diversification and the use of broad benchmark indexes. 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 has sufficient funds available at all times to cover its financial obligations. The main cash outflows include the quarterly dividend payments and Norwegian pe troleum tax payments paid six times per year. If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Short-term funding needs will normally be covered by the USD 5.0 billion US C ommercial p aper p rogramme (CP) which is backed by a revolving credit facility of USD 5.0 billion, supported by 21 core banks, maturing in 2022 . The facility supports secure access to funding, supported by the best available short-term rating. As at 31 Dece mber 2018 the facility has not been drawn. Equinor raises debt in all major capital markets (US, Europe and Asia) for long-term funding purposes . The policy is to have a maturity profile with repay ments not exceeding 5 % of capital employed in any year fo r 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 18 Finance debt. The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor’s financial liabilities. At 31 December 2018 2017 (in USD million) Non-derivative financial liabilities Derivative financial liabilities Non-derivative financial liabilities Derivative financial liabilities Year 1 12,020 271 14,502 166 Year 2 and 3 5,624 677 5,246 85 Year 4 and 5 5,042 203 4,441 369 Year 6 to 10 10,761 611 11,630 283 After 10 years 9,617 725 11,294 204 Total specified 43,064 2,488 47,114 1,107 Credit risk Credit risk is the risk that Equinor’s cust omers or counterparties will cause Equinor fi nancial loss by failing to hono r 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. Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties to be formally identified and assigned internal credit ratings as well as exposure limits. 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. All counterparties are re-assessed regularly. 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. 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 exposures against limits on a daily basis. The total credit exposure portfolio of Equinor is geographically diversified among a number of counterparties within the oil and energy sector, as well as larger oil and gas consumers and financial coun terparties. 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 2 % overdue receivables for 30 days and more. The overdue receivables are mainly joint venture receivables pending the settlement of disputed working interest items payable from Equinor’s worki ng interest partners within its US unconventional activities. Provisions have been made for expected losses utili s ing 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 2018 Investment grade, rated A or above 460 1,811 682 100 Other investment grade 150 5,412 350 183 Non-investment grade or not rated 244 1,265 0 35 Total financial asset 854 8,488 1,032 318 At 31 December 2017 Investment grade, rated A or above 262 2,148 1,079 84 Other investment grade 214 6,135 525 71 Non-investment grade or not rated 247 278 0 5 Total financial asset 723 8,560 1,603 159 For more information about Trade and other receivables, see note 15 Trade and other receivables. At 31 December 2018 , USD 213 million of cash was held as collateral to mitigate a portion of Equinor 's credit exposure. At 31 December 2017 , USD 704 m illion was held as collateral. The collateral cash is received as a security to mitigate credit exposure related to positive fair values on interest rate swaps, cross currency swaps and foreign exchange swaps. Cash is called as collateral in accordanc e with the master agreements with the different counterparties when the positive fair values for the different swap agreements are above an agreed threshold. Under the terms of various master netting agreements for derivative financial instruments as of 31 December 2018, USD 119 million have been offset and USD 655 million presented as liabilities do not meet the criteria for offsetting. At 31 December 201 7 , USD 141 million were offset and USD 706 m illion was not offset. The collateral received and the am ounts not offset from derivative financial instrument liabilities, reduce the credit exposure in the derivative financial instruments presented in the table above as they will offset each other in a potential default situation for the counterparty. Trade a nd other receivables subject to similar master netting agreements USD 55 7 million have been offset as of 31 December 2018, and respectively USD 502 million as of 31 December 2017. |
Remuneration
Remuneration | 12 Months Ended |
Dec. 31, 2018 | |
Renumeration [abstract] | |
Disclosure of renumeration explanatory [text block] | 6 Remuneration Full year (in USD million, except average number of employees) 2018 2017 2016 Salaries 1) 2,863 2,671 2,576 Pension costs 463 469 650 Payroll tax 409 387 394 Other compensations and social costs 318 290 276 Total payroll costs 4,052 3,818 3,895 Average number of employees 2) 20,700 20,700 21,300 Compensation to the board of directors (BoD) and the corporate executive committee (CEC) Salaries include bonuses, severance packages and expatriate costs in addition to base pay. Part time e mployees amount to 3 % f or each of the years 2018, 2017 and 2016 respectively. Total payroll expenses are accumulated in cost-pools and partly charged to partners of Equinor operated licences on a n hours incurred basis. Full year (in USD thousand) 1) 2018 2017 2016 Current employee benefits 12,471 11,067 9,270 Post-employment benefits 667 636 574 Other non-current benefits 21 25 19 Share-based payment benefits 197 175 102 Total 13,356 11,902 9,966 All figures in the table are presented on accrual basis. At 31 December 2018 , 2017 and 2016 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 calenda r years of continued employment following the year of purchase, the employees will be allocated one bonus sha re for each one 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 72 million, USD 62 million and USD 61 million r elated to the 2018 , 2017 and 2016 progra mmes, respectively. For the 2019 programme (granted in 201 8 ) the estimated compensation expense is USD 73 million. At 31 December 2018 the amount of compensation cost yet to be expens ed throughout the vesting period is USD 153 million . |
Other expenses
Other expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense [Abstract] | |
Disclosure of additional information [text block] | 7 Other expenses Auditor's remuneration Full year (in USD million, excluding VAT) 2018 2017 2016 Audit fee 7.1 6.1 6.5 Audit related fee 1.0 0.9 1.0 Tax fee 0.0 0.0 0.1 Other service fee 0.0 0.0 0.0 Total 8.1 7.0 7.5 In addition to the figures in the table above, the aud i t fees and audit related fees related to Equinor operated licen c es amount to USD 0.9 million , USD 0.8 million and USD 0.8 million for 2018 , 2017 and 2016 , respectively. Research and development expenditures Research and development (R&D) expenditures were USD 315 million , USD 307 million and USD 298 mi llion in 2018 , 2017 and 2016 , respectively. R&D expenditures are partly financed by partners of Equinor operated licen c es. Equinor 's s hare of the expenditures has been recognised as expense in the Consolidated statement of income. |
Financial items
Financial items | 12 Months Ended |
Dec. 31, 2018 | |
Finance Income Expense [Abstract] | |
Disclosure of finance income (cost) [text block] | 8 Financial ite ms Full year (in USD million) 2018 2017 2016 Foreign exchange gains (losses) derivative financial instruments 149 (920) 353 Other foreign exchange gains (losses) (315) 1,046 (473) Net foreign exchange gains (losses) (166) 126 (120) Dividends received 150 63 46 Gains (losses) financial investments (72) 108 (0) Interest income financial investments 45 64 63 Interest income non-current financial receivables 27 24 22 Interest income current financial assets and other financial items 132 228 305 Interest income and other financial items 283 487 436 Gains (losses) derivative financial instruments (341) (61) 470 Interest expense bonds and bank loans and net interest on related derivatives (922) (1,004) (830) Interest expense finance lease liabilities (23) (26) (26) Capitalised borrowing costs 552 454 355 Accretion expense asset retirement obligations (461) (413) (420) Interest expense current financial liabilities and other finance expense (185) 86 (122) Interest and other finance expenses (1,040) (903) (1,043) Net financial items (1,263) (351) (258) Equinor 's main financial items relate to assets and liabilities categorised in the fair value through profit or loss and the amortised cost category. For more information about financial instruments by category see note 26 Financial instruments: fair value measurement and sensitivity analysis of market risk. For information related to change in categories and impact of IFRS 9 implementation, see note 27 Changes in accounting policies. The line item I nterest expense bonds and bank loans and net interes t on related derivatives primarily includes interest expenses of USD 868 million , USD 1 , 084 million, and USD 1,018 million from the financial liabilities at amortised cost category and net interest on related derivatives from the fair value through profit or loss category with net interest expense of USD 55 million, net interest income of USD 80 million and net interest income of USD 188 million for 2018, 2017 and 2016, respectively. The line item G ains (losses) derivative financial instruments primarily i ncludes fair value changes from the fair value through profit or loss category on derivatives related to interest rate risk, with a loss of USD 3 57 m illion in 2018. Correspondingly a loss of USD 77 million and a gain of USD 454 million for 201 7 and 201 6 , r espectively. The line item I nterest expense current financial liabilities and other finance expense includes an income of USD 319 million in 2017 related to release of a provision. Foreign exchange gains (losses) derivative financial instruments include fair value changes of currency derivatives related to liquidity and currency risk. The line item O ther f oreign exchange gains (losses) includes a net foreign exchange loss of USD 422 million, a gain of USD 427 million and a loss of USD 205 million from the fair value through profit or loss category for 2018, 2017 and 2016 , respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income tax [abstract] | |
Disclosure of income tax [text block] | 9 Income taxes Significant components of income tax expense Full year (in USD million) 2018 2017 2016 Current income tax expense in respect of current year (10,724) (7,680) (3,869) Prior period adjustments (49) (124) (158) Current income tax expense (10,773) (7,805) (4,027) Origination and reversal of temporary differences (1,359) (904) 1,372 Recognition of previously unrecognised deferred tax assets 923 0 0 Change in tax regulations (28) (14) (50) Prior period adjustments (99) (100) (20) Deferred tax expense (563) (1,017) 1,302 Income tax expense (11,335) (8,822) (2,724) During the normal course of its business, Equinor files tax returns in many different tax regimes. There may be differing interpretation of applicable tax laws and regulations regarding some of the ma tters in the tax returns. In certain cases it may take several years to complete the discussions with the relevant tax authorities or to reach a resolution of the tax positions through litigations. Equinor has provided for probable income tax related assets and li abilities based on best estimate s reflecti ng consistent interpretations of the applicable laws and regulations. Reconciliation of statutory tax rate to effective tax rate Full year (in USD million) 2018 2017 2016 Income/(loss) before tax 18,874 13,420 (178) Calculated income tax at statutory rate 1) (5,197) (3,827) 676 Calculated Norwegian Petroleum tax 2) (8,189) (5,945) (2,250) Tax effect uplift 2) 736 784 812 Tax effect of permanent differences regarding divestments 400 (85) 153 Tax effect of permanent differences caused by functional currency different from tax currency 116 (229) (356) Tax effect of other permanent differences 337 291 (48) Tax effect of dispute with Angolan Ministry of Finance 3) 0 496 0 Recognition of previously unrecognised deferred tax assets 4) 923 0 0 Change in unrecognised deferred tax assets 72 (169) (1,625) Change in tax regulations (28) (14) (50) Prior period adjustments (148) (224) (177) Other items including currency effects (357) 100 141 Income tax expense (11,335) (8,822) (2,724) Effective tax rate 60.1% 65.7% >(100%) The weighted average of statutory tax rates was 27.5 % in 2018 , 28.5 % in 2017 and 379.8 % in 2016 . The rate s are influenced by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates. The change in weighted average statutory tax rate from 2017 to 2018 is mainly caused by the reduction in the Norwegian statutory tax rate from 24% in 2017 to 23% in 2018. The high rate in 2016 and the change in weighted average statutory tax rate f rom 2016 to 2017 is mainly caused by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates. In 2016 there were positive income in tax regimes with relatively lower tax rates and losses, incl uding impairments and provisions, in tax regimes with relatively higher tax rates. When computing the petroleum tax of 55 % ( 56 % from 2019) on income from the Norwegian continental shelf, an additional tax-free allowance, or uplift, is granted on the basis of the original capitalised cost of offshore production installations. The uplift may be deducted from taxable income for a period of four years starting in the year in which the capital expenditure is incurred. For investments made in 2018 the uplift is c alculated at a rate of 5.3 % per year, while the rate is 5.4 % per year for investments made in 2017 and 5.5 % per year for investments made in 2014-2016. The rate is 5.2 % per year from 2019 for new investments . Transitional rules apply to investments from 5 May 2013 covered by among others Plans for development and operation (PDOs) or Plans for installation and operation (PIOs) submitted to the Ministry of Oil and Energy prior to 5 May 2013. For these investments the rate is 7.5 % per year. Unused uplift may b e carried forward indefinitely. At year end 2018 and 2017, unrecognised uplift credits amounted to USD 1,780 million and USD 2,003 million, respectively. In June 2017 Equinor signed an agreement with the Angolan Ministry of Finance which resolved the disp ute over previously assessed additional profit oil and taxes due, and established how to allocate profit oil and assess petroleum income tax (PIT) related to Equinor ’s participation in Block 4, Block 15, Block 17 and Block 31 offshore Angola for the years 2002 to 2016. An amount of USD 923 million of previously unrecognised deferred tax assets was recognised in the E&P International reporting segment in 2018. The recognition of the deferred tax assets is based on the expectation that sufficient taxable income will be available through reversals of taxable temporary differences or future taxable income supported by business forecast. Deferred tax assets and liabilities comprise (in USD million) Tax losses carried forward Property, plant and equipment and Intangible assets Asset removal obligation Pensions Derivatives Other Total Deferred tax at 31 December 2018 Deferred tax assets 5,761 351 8,118 785 95 1,095 16,205 Deferred tax liabilities (0) (20,987) 0 (14) (96) (476) (21,573) Net asset (liability) at 31 December 2018 5,761 (20,636) 8,118 771 (1) 620 (5,367) Deferred tax at 31 December 2017 Deferred tax assets 4,459 259 8,049 738 34 763 14,302 Deferred tax liabilities (0) (19,027) 0 (11) (27) (451) (19,515) Net asset (liability) at 31 December 2017 4,459 (18,768) 8,049 728 7 312 (5,213) Changes in net deferred tax liability during the year were as follows: (in USD million) 2018 2017 2016 Net deferred tax liability at 1 January 5,213 4,231 5,399 Charged (credited) to the Consolidated statement of income 563 1,017 (1,302) Charged (credited) to Other comprehensive income (22) 38 (129) Translation differences and other (386) (73) 264 Net deferred tax liability at 31 December 5,367 5,213 4,231 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, deferred taxes are presented on the balance sheet as follows: At 31 December (in USD million) 2018 2017 Deferred tax assets 3,304 2,441 Deferred tax liabilities 8,671 7,654 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 supported by business forecast. At year end 2018 and 2017 the deferred tax assets of USD 3,304 million and USD 2,441 million , respectively , were primarily recognised in Norway, Angola, Bra z il, the UK and Canada (2018) . Of these amounts USD 1,868 million and USD 924 million, respectively, is recognised in entitie s which have suffered a loss in either the current or preceding period. Unrecognised deferred tax assets At 31 December 2018 2017 (in USD million) Basis Tax Basis Tax Deductible temporary differences 2,439 1,123 3,415 1,409 Tax losses carried forward 14,802 3,940 17,412 4,661 Total 17,241 5,062 20,827 6,070 Approximately 9% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the remaining part of the unrecogni sed tax losses expire after 2029 . 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 en d 2018 unrecognised deferred tax assets in the US and Angola represents USD 3,480 million and USD 884 million of the total unrecognised deferred tax assets of USD 5,062 million. Similar amounts for 2017 were USD 3,559 million in the US and USD 879 million in Angola of a total of USD 6,070 million. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | 10 Property, p lant and equipment (in USD million) Machinery, equipment and transportation equipment, including vessels Production plants and oil and gas assets Refining and manufacturing plants Buildings and land Assets under development Total Cost at 31 December 2017 3,470 157,533 8,646 866 18,140 188,656 Additions through business combinations 76 2,473 0 48 1,370 3,968 Additions and transfers 90 13,017 328 32 (3,322) 10,144 Disposals at cost (12) (505) (0) (1) (366) (884) Effect of changes in foreign exchange (28) (5,752) (314) (13) (861) (6,967) Cost at 31 December 2018 3,596 166,766 8,660 932 14,961 194,916 Accumulated depreciation and impairment losses at 31 December 2017 (2,853) (113,781) (6,200) (439) (1,746) (125,019) Depreciation (137) (9,249) (426) (29) 0 (9,841) Impairment losses 0 (762) 0 0 (32) (794) Reversal of impairment losses 155 1,087 0 0 156 1,398 Transfers (0) (1,799) (229) (1) 1,067 (961) Accumulated depreciation and impairment on disposed assets 12 602 0 0 366 980 Effect of changes in foreign exchange 21 4,312 242 4 5 4,583 Accumulated depreciation and impairment losses at 31 December 2018 (2,802) (119,589) (6,613) (465) (185) (129,654) Carrying amount at 31 December 2018 794 47,177 2,048 467 14,776 65,262 Estimated useful lives (years) 3-20 UoP 1) 15 - 20 20 - 33 2) (in USD million) Machinery, equipment and transportation equipment, including vessels Production plants and oil and gas assets Refining and manufacturing plants Buildings and land Assets under development Total Cost at 31 December 2016 3,394 142,750 8,262 859 17,315 172,579 Additions and transfers 56 10,181 331 47 111 10,727 Disposals at cost (7) 0 (288) (50) (30) (374) Effect of changes in foreign exchange 27 4,602 342 10 743 5,724 Cost at 31 December 2017 3,470 157,533 8,646 866 18,140 188,656 Accumulated depreciation and impairment losses at 31 December 2016 (2,767) (100,971) (5,772) (446) (3,068) (113,023) Depreciation (122) (9,051) (485) (29) 0 (9,688) Impairment losses 0 (917) (0) 0 0 (917) Reversal of impairment losses 48 935 0 0 989 1,972 Transfers 0 (422) (1) (0) 370 (53) Accumulated depreciation and impairment on disposed assets 5 (24) 285 39 18 323 Effect of changes in foreign exchange (17) (3,331) (227) (4) (55) (3,634) Accumulated depreciation and impairment losses at 31 December 2017 (2,853) (113,781) (6,200) (439) (1,746) (125,019) Carrying amount at 31 December 2017 617 43,753 2,446 427 16,394 63,637 Estimated useful lives (years) 3-20 UoP 1) 15 - 20 20 - 33 2) Depreciation according to unit of production method (UoP) , see note 2 Significant accounting policies . Land is not depreciated . The carrying amount of assets transferred to Property, plant and equipment from Intangible assets in 201 8 and 201 7 amounted to USD 161 million and USD 401 million, respectively. For additions through business combinations, see note 4 Acquisitions and disposals . Impairments/reversal of impairments (in USD million) Property, plant and equipment Intangible assets 3) Total At 31 December 2018 Producing and development assets 1) (604) 237 (367) Acquisition costs related to oil and gas prospects 2) - 52 52 Total net impairment loss/(reversal) recognised (604) 289 (315) At 31 December 2017 Producing and development assets 1) (1,056) (326) (1,381) Acquisition costs related to oil and gas prospects 2) - 245 245 Total net impairment loss/(reversal) recognised (1,056) (81) (1,137) Producing and development assets and goodwill are subject to impairment assessment under IAS 36. The total net impairment reversal recognised under IAS 36 in 2018 amount to USD 367 million, compared to 2017 when the net impairment reversal amounted to USD 1,381 million, including impairment reversals and impairments of acquisition costs - oil and gas prospects (intangible assets). Acquisition costs related to exploration activities, subject to impairment assessment under the successful efforts method (I FRS 6). See note 11 Intangible assets . For impairment purposes, the asset's carrying amount is compared to its recoverable amount. The recoverable amount is the higher of fair value less cost of disposal (FVLCOD) and estimated value in use (VIU). The base discount rate for VIU calculations is 6.0 % real after tax. The discount rate is derived from Equinor's weighted average cost of capital. A derived pre-tax discount rate would generally be in the range of 7 - 12 %, depending on asset specific characte ristics, such as specific tax treatments, cash flow profiles and economic life. For certain assets a pre-tax discount rate could be outside this range, mainly due to special tax elements (for example permanent differences) affecting the pre-tax equivalent. See note 2 Significant accounting policies for further information regarding impairment on property, plant and equipment . The table below describes per area the assets being impaired (reversed) and the valuation method used to determine the recoverable amount; the net impairment (reversal), and the carrying amount after impairment. 2018 2017 (in USD million) Valuation method Carrying amount after impairment Net impairment loss (reversal) Carrying amount after impairment Net impairment loss (reversal) At 31 December Exploration & Production Norway VIU 1,966 (201) 2,169 (826) FVLCOD 1,232 (402) 1,507 (80) North America - unconventional VIU 5,771 762 5,017 (1,266) FVLCOD 0 0 1,422 856 North America Conventional offshore US Gulf of Mexico VIU 3,989 (246) 1,200 (17) FVLCOD 0 0 0 0 North Africa VIU 451 (126) 0 0 FVLCOD 0 0 0 0 Marketing, Midstream & Processing VIU 403 (155) 263 (48) FVLCOD 0 0 0 0 Total 13,813 (367) 11,578 (1,381) Exploration & Production Norway In Exploration & Production Norway impairment reversal s of USD 604 million were recognised in 2018 mainly due to change in long term exchange rate assumptions. In 2017 net impairment reversal of USD 906 million was recognised, mainly triggered by increased reserves, cost reductions and increased short term price assumptions. North America - unconventional In the North America – unconventional area impairment losses of USD 762 million of which USD 237 m illion was classified as exploration expenses w ere recognised in 2018 mainly caused by reduced long term price assumptions and reduced fair value of one asset. In 2017 a net impairment reversal of USD 410 million was recognised. North America Conventional offshore Gulf of Mexico In 2018 net impairment reversal of USD 246 million was recognised due to improved production profile and various operational improvements partially offset by negative changes in reserve estimates. In 2017 the North Ame rica Conventional offshore Gulf of Mexico area recognised net impairment reversal of USD 17 million. Marketing, Midstream & Processing In 2018 an impairment reversal of USD 155 million was recognised due to increased refinery margin for e cast. Marketing, Midstream & Processing recognised a n impairment reversal of USD 48 million in 2017. North Africa In 2018 an impairment reversal of USD 126 million was recognised due to an extension of licence period. No impairments or reversals were recogni sed in the North Africa area in 2017. Value in Use (VIU) estimates and discounted cash flows used to determine the recoverable amount of assets tested for impairment are based on internal forecasts on costs, production profiles and commodity prices. S hort term commodity prices (2019/2020/2021 ) are forecasted by using ob servable forward prices for 2019 and a linear projection towards the 2022 internal forecast. The price assumptions used for impairment calculations were generally as follows (prices used i n 201 7 impairment calculations for the respective years are indicated in brackets): Year Prices in real terms1) 2019 2020 2025 2030 Brent Blend – USD/bbl 62 (66) 66 (70) 77 (80) 80 (84) NBP - USD/mmBtu 7.7 (6.7) 7.4 (6.8) 8.0 (8.4) 8.0 (8.4) Henry Hub – USD/mmBtu 3.1 (3.4) 3.2 (3.7) 4.0 (4.2) 4.0 (4.2) 1) Basis year 2018 Sensitivities Commodity prices have historic ally been volatile. Significant downward adjustments of Equinor ’s commodity price assumptions would result in impairment losses on certain producing and development asse ts in Equinor’s portfolio. If a decline in commodity price forecasts over the lifetime of the assets were 2 0 %, considered to represent a reasonably possible change, the impairment amount to be recognised could illustratively be in the region of USD 8 billion before tax effects. This illus trative impairment sensitivity assumes no chang es to input factors other than prices; however, a price reduction of 2 0% is likely to result in changes in business plans as well as other factors used when estimating an asset’s recoverable amount. Changes in such input factors would likely significantly reduce the actual impairment amount compared to the illustrative sensitivity above. Changes that could be expected would include a reduction in the cost level in the oil and gas industry as well as offsetting currency effects, both of which have historically occurred following significant changes in commodity prices. The illustrative sensitivity is therefore not considered to represent a best estimate of an expected impairment impact, nor an estimated impact on revenues or operating income in such a scenario. A significant and prolonged reduction in oil and gas prices would also result in mitigating actions by Equinor and its licen c e partners, as a reduction of oil and gas prices would impact drilling plans and production profiles for new and existing assets. Quantifying such impacts is considered impracticable, as it requires detailed technical, geological and economical evaluations based on hypothetical scenarios and not based on existing business or developmen t plans. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of intangible assets [text block] | 11 Intangible assets (in USD million) Exploration expenses Acquisition costs - oil and gas prospects Goodwill Other Total Cost at 31 December 2017 2,715 5,363 339 419 8,836 Additions through business combinations 0 116 265 392 773 Additions 392 917 0 (7) 1,302 Disposals at cost (272) (89) 0 (4) (364) Transfers (13) (148) 0 0 (161) Expensed exploration expenditures previously capitalised (68) (289) 0 0 (357) Effect of changes in foreign exchange (70) (17) (39) (2) (128) Cost at 31 December 2018 2,685 5,854 565 797 9,901 Accumulated depreciation and impairment losses at 31 December 2017 (215) (215) Amortisation and impairments for the year (13) (13) Amortisation and impairment losses disposed intangible assets (2) (2) Effect of changes in foreign exchange 1 1 Accumulated depreciation and impairment losses at 31 December 2018 (229) (229) Carrying amount at 31 December 2018 2,685 5,854 565 568 9,672 (in USD million) Exploration expenses Acquisition costs - oil and gas prospects Goodwill Other Total Cost at 31 December 2016 2,856 5,907 328 346 9,438 Additions 154 861 0 94 1,109 Disposals at cost (0) (0) 0 (26) (26) Transfers (276) (124) 0 (0) (401) Assets reclassified to held for sale 0 (1,369) 0 0 (1,369) Expensed exploration expenditures previously capitalised (73) 81 0 0 8 Effect of changes in foreign exchange 56 6 11 4 77 Cost at 31 December 2017 2,715 5,363 339 419 8,836 Accumulated depreciation and impairment losses at 31 December 2016 (195) (195) Amortisation and impairments for the year (12) (12) Amortisation and impairment losses disposed intangible assets (6) (6) Effect of changes in foreign exchange (2) (2) Accumulated depreciation and impairment losses at 31 December 2017 (215) (215) Carrying amount at 31 December 2017 2,715 5,363 339 204 8,621 The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite useful lives are amortised systematically over their estimated economic lives, ranging between 10-20 years . For additions through business combinations, see note 4 Acquisitions and disposals. During 2018, intangible assets were impacted by net impairment of signature bonuses and acquisition costs totalling USD 237 million related to North America – unconventional assets, and impairment of acq uisition costs related to exploration activities of USD 52 million primarily as a result from dry wells and uncommercial discoveries in South America, North America Conventional offshore US Gulf of Mexico and E&P Norway. Equinor’s Block 2 Exploration Licen c e in Tanzania was formally due to expire in June 2018, but based on communication with the applicable Tanzanian authorities, continues to be in operation while the process related to the grant of a new exploration licence to the existing licensees for the block is ongoing. The Block 2 asset remains capitalised within Intangible assets in the E&P International segment as of 31 December 2018 Impairment losses and reversals of impairment losses are presented as Exploration expenses and Depreciation, amortisat ion and net impairment losses o n the basis of their nature as exploration assets (intangible assets) and other intangible assets, respectively. The impairment losses and reversal of impairment losses are based on recoverable amount estimates triggered by c hanges in reserve estimates, cost estimates and market conditions. See note 10 Property, plant and equipment for more information on the basis for impairment assessments. The table below shows the aging of capitalised exploration expenditures. (in USD million) 2018 2017 Less than one year 392 218 Between one and five years 1,406 1,799 More than five years 887 698 Total 2,685 2,715 The table below shows the components of the exploration expenses. Full year (in USD million) 2018 2017 2016 Exploration expenditures 1,438 1,234 1,437 Expensed exploration expenditures previously capitalised 357 (8) 1,800 Capitalised exploration (390) (167) (285) Exploration expenses 1,405 1,059 2,952 |
Equity accounted investments
Equity accounted investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity investments [Abstract] | |
Disclosure of investments accounted for using equity method [text block] | 12 Equity accounted investments (in USD million) Lundin Petroleum AB Other equity accounted investments Total Investment at 31 December 2017 1,125 1,426 2,551 Net income/(loss) from equity accounted investments 10 281 291 Acquisitions and increase in paid in capital 0 548 548 Dividend and other distributions (31) (244) (275) Other comprehensive income/(loss) (5) (66) (70) Divestments, derecognition and decrease in paid in capital 0 (183) (183) Investment at 31 December 2018 1,100 1,763 2,862 For the equity accounted investments , v oting rights corresponds to ownership. Summary financial information of equity accounted investments The following table provides summarised financial information relating to Lundin Petroleum AB. This information is presented on Equinor’s ownership basis ( 20.1 %) and also reflects adjustments made by Equinor to Lundin Petroleum AB’s own results in applying the equity method of accounting. Equinor adjusts Lundin Petroleum AB’s results for depreciation of excess values determined in the purchase price allocation at the date of acquisition. Where there are significant differences in accounting policies, adjustments are made to bring the accounting policies applied in line with Equinor’s. These adjustments have decreased the reported net income for 2018, as shown in the table below, compared with t he equivalent amount reported by Lundin Petroleum AB. Lundin Petroleum AB (in USD million) 2018 2017 At 31 December Current assets 79 101 Non-Current assets 3,010 2,920 Current liabilities (58) (62) Non-Current liabilities (1,931) (1,834) Net assets 1,100 1,125 Year ended 31 December Gross revenues 495 376 Income/(loss) before tax 225 226 Net income/(loss) 10 126 Capital expenditures 231 250 Equinor’s share of Lundin Petroleum AB’s quoted market value as per 31 December 2018 was USD 1 , 691 million (USD |
Financial investments and non-c
Financial investments and non-current prepayments | 12 Months Ended |
Dec. 31, 2018 | |
Categories of non-current financial assets [abstract] | |
Disclosure of prepayments and other assets [text block] | 13 Financial investments and non-current prepayments Non-current financial investments At 31 December (in USD million) 2018 2017 Bonds 1,261 1,611 Listed equity securities 530 619 Non-listed equity securities 664 611 Financial investments 2,455 2,841 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) 2018 2017 Financial receivables interest bearing 345 716 Prepayments and other non-interest bearing receivables 688 196 Prepayments and financial receivables 1,033 912 Financial receivables interest bearing primarily relate to loans to employees and project financing of equity accounted companies. Current financial investments At 31 December (in USD million) 2018 2017 Time deposits 4,129 4,111 Interest bearing securities 2,912 4,337 Financial investments 7,041 8,448 At 31 December 2018, current f inancial investments include USD 896 million 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 2017 was USD 714 million. For information about financial instruments by category, see note 2 6 Financial instruments: fair value measurement and sensitivity analysis of market risk . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Classes of current inventories [abstract] | |
Disclosure of inventories [text block] | 14 Inventories At 31 December (in USD million) 2018 2017 Crude oil 1,173 2,323 Petroleum products 345 596 Natural gas 274 149 Other 351 330 Inventories 2,144 3,398 Other inventory consists mainly of drilling and well equipment. The write-down of inventories from cost to net realisable value amounted to an expense of USD 164 m illion and USD 32 million in 201 8 and 201 7 , respectively. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other receivables [abstract] | |
Disclosure of trade and other receivables [text block] | 15 Trade and other receivables At 31 December (in USD million) 2018 2017 Trade receivables from contracts with customers 6,267 7,649 Other current receivables 1,800 427 Joint venture receivables 390 478 Receivables from equity accounted associated companies and other related parties 31 6 Total financial trade and other receivables 8,488 8,560 Non-financial trade and other receivables 510 865 Trade and other receivables 8,998 9,425 Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses. For more information about the credit quality of Equinor's counterparties, see note 5 Financial risk management . For currency sensitivities, see note 2 6 Financial instr uments: fair value measurement and sensitivity analysis of market risk . |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Disclosure of cash and cash equivalents [text block] | 16 Cash and cash equivalents At 31 December (in USD million) 2018 2017 Cash at bank available 1,140 591 Time deposits 2,068 1,889 Money market funds 2,255 381 Interest bearing securities 1,590 1,092 Restricted cash, including margin deposits 501 437 Cash and cash equivalents 7,556 4,390 Restricted cash at 31 December 2018 and 2017 includes collateral deposits related to trading activities of USD 365 million and USD 300 m illion , respectively . Collateral deposits are related to certain requirements set out by exchanges where Equinor is participating. The terms and conditions related to these requirements are determined by the respective exchanges. |
Shareholders' equity and divide
Shareholders' equity and dividends | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders equity and dividends [Abstract] | |
Shareholders equity and dividends [text block] | 17 Shareholders' equity and dividends At 31 December 201 8 , Equinor’s share capital of NOK 8,346,653,047.50 ( USD 1,184,547,766 ) comprised 3,338,661,219 shares at a nominal value of NOK 2.50 . Share capital at 31 December 2017 was NOK 8,307,919,632.50 (USD 1,179,542, 543 ) comprised 3,323,167,853 shares at a nominal value of NOK 2.50 . 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 general meetings of t he company. A temporary 2-year scrip programme, approved by Equinor’s general assembly in May 2016 ended as planned with the last scrip shares issued in the first quarter of 2018 based on the dividend related to third quarter 2017. During 2018 dividend f or the third and for the fourth quarter of 2017 and dividend for the first and second quarter of 2018 were settled. Dividend declared but not yet settled, is presented as dividends payable in the Consolidated balance sheet. The Consolidated statement of ch anges in equity shows declared dividend in the period (retained earnings), offset by scrip dividend settled during the period (share capital and additional paid-in-capital). Dividend declared in 2018 relate to the fourth quarter of 2017 and to the first th ree quarters of 2018. At 31 December (in USD million) 2018 2017 Dividends declared 3,064 2,891 USD per share or ADS 0.9200 0.8804 Dividends paid in cash 2,672 1,491 USD per share or ADS 0.9101 0.8804 NOK per share 7.4907 7.2615 Scrip dividends 338 1,357 Number of shares issued (millions) 15.5 78.1 Sum dividends settled 3,010 2,848 During 201 8 a total of 2,740,65 7 treasury shares were purchased for USD 68 million and 3,631,220 treasury shares were allocated to employees participating in the share saving plan . During 2017 a total of 3,323,671 treasury shares were purchased for USD 63 million and 3, 219 , 327 treasury shares were allocated to employees particip ating in the share saving plan. At 31 December 201 8 Equinor had 10,352,6 7 1 treasury shares and at 31 December 201 7 11, 243 , 234 t reasury share s, all of which are related to Equinor 's share saving plan. For further information, see note 6 Remuneration . |
Finance debt
Finance debt | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Disclosure of borrowings [text block] | 18 Finance debt Capital management The main objectives of Equinor 's capital management policy are to maintain a strong financial position and to ensure sufficient financial flexibility. One of the key ratios in the assessment of Equinor's financial robustness is the non-GAAP metric n et interest-bearing debt adjusted (ND) to capital employed adjusted (CE). At 31 December (in USD million) 2018 2017 Net interest-bearing debt adjusted (ND) 12,246 16,287 Capital employed adjusted (CE) 55,235 56,172 Net debt to capital employed adjusted (ND/CE) 22.2% 29.0% ND 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 1 ,261 million and USD 1,014 million for 2018 and 2017, respectively) and balances related to the SDFI ( amounting to USD 146 million and USD 164 million for 2018 and 2017, respectively). CE is defined as Equinor's total equity (including non-controlling interests) and N D. 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) 2018 2017 2018 2017 2018 2017 Unsecured bonds United States Dollar (USD) 4.14 3.73 13,088 14,953 13,657 16,106 Euro (EUR) 2.10 2.10 8,928 9,347 9,444 10,057 Great Britain Pound (GBP) 6.08 6.08 1,760 1,859 2,532 2,734 Norwegian Kroner (NOK) 4.18 4.18 345 366 388 427 Total 24,121 26,524 26,021 29,325 Unsecured loans Japanese Yen (JPY) 4.30 4.30 91 89 119 118 Finance lease liabilities 432 478 425 496 Total 523 567 544 614 Total finance debt 24,644 27,090 26,565 29,938 Less current portion 1,380 2,908 1,379 2,924 Non-current finance debt 23,264 24,183 25,186 27,014 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. Fair values are mainly determined from external calculation models based on market observations from various sources, classified at level 2 in the fair value hierarchy. If available, the fair value of the non-current financial liabilities is determined from quoted market prices in an active market, classified at level 1 in the fair value hierarchy. Unsecured bonds amounting to USD 13,088 million are denominated in USD and unsecured bonds denominated in other currencies amounting to USD 1 0,062 million are swapped into USD. One bond denominated in EUR amounting to USD 972 million is not swapped. The table does not inclu de the effects of agreements entered into to swap the various currencies into USD. For further information see note 26 Financial instruments: fair value measurement and sensitivity analysis of market risk. Substantially all unsecured bond and unsecured ban k loan agreements contain provisions restricting future pledging of assets to secure borrowings without granting a similar secured status to the existing bondholders and lenders. In 2018 Equinor issued the following bond: Issuance date Amount in USD million Interest rate in % Maturity date 5 September 2018 USD 1,000 3.625 September 2028 Out of Equinor 's total outstand ing unsecured bond portfolio, 38 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 a mount of these agreements is USD 23,776 million at the 31 December 2018 closing exchange rate. For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk management, see note 5 Fi nancial risk management. Non-current finance debt maturity profile At 31 December (in USD million) 2018 2017 Year 2 and 3 4,003 3,521 Year 4 and 5 3,736 3,041 After 5 years 15,525 17,620 Total repayment of non-current finance debt 23,264 24,183 Weighted average maturity (years) 9 9 Weighted average annual interest rate (%) 3.67 3.50 More information regarding finance lease li abilities is provided in note 22 Leases . Current finance debt At 31 December (in USD million) 2018 2017 Collateral liabilities 213 704 Non-current finance debt due within one year 1,380 2,908 Other including US Commercial paper programme and bank overdraft 870 479 Total current finance debt 2,463 4,091 Weighted average interest rate (%) 1.62 1.65 Collateral liabilities and other current liabilities relate mainly to cash received as security for a porti on of Equinor's credit exposure and outstanding amounts on US Commercial paper (CP) programme. Issuance on the CP programme amounted to USD 84 2 million as of 31 December 2018 and USD 449 million as of 31 December 2017. Reconciliation of cash flow 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 Share based payment/Treasury shares Non controlling interest Dividend payable Total At 31 December 2017 24,183 4,091 (272) (191) 24 729 28,564 Transfer to current portion (1,380) 1,380 - - - - - Effect of exchange rate changes (556) 2 - - - (1) (555) Dividend decleared - - - - - 3,064 3,064 Scrip dividend - - - - - (338) (338) Cash flows provided by (used in) financing activities 998 (2,949) (331) (64) (7) (2,672) (5,025) Other changes 20 (61) 11 59 2 (16) 15 At 31 December 2018 23,264 2,463 (591) (196) 19 766 25,725 (in USD million) Non current finance debt Current finance debt Financial receivable Collaterals 1) Additional paid in capital Share based payment/Treasury shares Non controlling interest Dividend payable Total At 31 December 2016 27,999 3,674 (735) (212) 27 712 31,465 Transfer to current portion (2,908) 2,908 - - - - - Effect of exchange rate changes 1,302 (13) - - - (11) 1,278 Dividend decleared - - - - - 2,891 2,891 Scrip dividend - - - - - (1,357) (1,357) Cash flows provided by (used in) financing activities (2,250) (2,472) 464 (62) (12) (1,491) (5,823) Other changes 40 (5) (1) 83 9 (15) 110 At 31 December 2017 24,183 4,091 (272) (191) 24 729 28,564 1) Financial receivables collaterals are in included in trade and other receivables in the balance sheet. See note 15 Trade and other receivables for more information. |
Pensions
Pensions | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of defined benefit plans [abstract] | |
Disclosure of employee benefits [text block] | 19 Pensions The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans, in which the pension costs are recognised in the Consolidated statement of income in line with payments of annual pension premiums. The pension contribution plans in Equinor ASA also includes certain unfunded elements (notional contribution plans), for which the annual notional contributions are recognised as pension liabilities. These notional pension liabilities are regulated equal to the return on asset within the main contribution plan. See note 2 Significant accounting policies for more information about the accounting treatment of the notional contribution plans reported in Equinor ASA. In addition, Equinor ASA has a closed defined benefit p lan for employees with less than 12 years of future service before their regular retirement age, and for employees in certain subsidiaries. Equinor 's defined benefit plan s 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 Insu r ance 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 licen c ed to operate as a pension fund. Equinor is a member of a Norwegian national agreement-based ear ly retirement plan ( “ AFP ”), and t he 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). T he 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. Equinor has determined that its obligations under this multi-employer defined benefit plan can be estimated with sufficient reliability for recognition purposes. Accordingl y, the estimated proportionate share of the AFP plan is recognised as a defined benefit obligation. The present values of the defined benefit obligation , except for the notional contribution plan, and the related current service cost and past service cost are measured using the projected unit credit method. The assumptions for salary increases, increases in pension payments and social security base amount are based on agreed regulation in the plans, historical observations, future expectations of the assump tions and the relationship between these assumptions. At 31 December 2018 the discount rate for the de fined benefit plans in Norway was established on the basis of seven years' mortgage covered bonds interest rate extrapolated on a yield curve which matche s the duration of Equinor 's payment portfolio for earned benefits , which was calculated to be 15.9 years at the end of 2018. Social security tax is calculated based on a pension plan's net funded status and is included in the defined benefit obligation. Eq uinor 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. The pension costs in Equino r ASA are partly re-charged to licence partners. Net pension cost (in USD million) 2018 2017 2016 Current service cost 214 242 238 Interest cost - - 192 Interest (income) on plan asset - - (148) Past service cost 0 (0) 2 Losses (gains) from curtailment, settlement or plan amendment 20 15 109 Actuarial (gains) losses related to termination benefits 0 (1) 59 Notional contribution plans 55 51 50 Defined benefit plans 289 308 503 Defined contribution plans 173 162 148 Total net pension cost 462 469 650 In addition to the pension cost presented in the table above, financial items related to defined benefit plans are included in the statement of income within Net financial items. Interest cost and changes in fair value of notional assets of USD 167 million, and interest income of USD 127 million has been recognised in 2018. (in USD million) 2018 2017 Defined benefit obligations (DBO) Defined benefit obligations at 1 January 8,286 7,791 Current service cost 214 243 Interest cost 182 219 Actuarial (gains) losses - Financial assumptions 174 (26) Actuarial (gains) losses - Experience (27) (21) Benefits paid (219) (311) Losses (gains) from curtailment, settlement or plan amendment (1) 13 Paid-up policies (18) (84) Foreign currency translation (469) 411 Changes in notional contribution liability 55 52 Defined benefit obligations at 31 December 8,176 8,286 Fair value of plan assets Fair value of plan assets at 1 January 5,687 5,250 Interest income 136 148 Return on plan assets (excluding interest income) (135) 283 Company contributions 49 39 Benefits paid (217) (196) Paid-up policies and personal insurance (18) (121) Foreign currency translation (315) 283 Fair value of plan assets at 31 December 5,187 5,687 Net pension liability at 31 December (2,990) (2,599) Represented by: Asset recognised as non-current pension assets (funded plan) 831 1,306 Liability recognised as non-current pension liabilities (unfunded plans) (3,821) (3,905) DBO specified by funded and unfunded pension plans 8,176 8,286 Funded 4,359 4,392 Unfunded 3,817 3,894 Actual return on assets 1 431 The actuarial loss in 2018 is mainly due to a higher expected rate of pension increase and higher expected compensation increase . Equinor recogni s ed an actuarial gain from changes in financial assumptions in 2017 . Actuarial losses and gains recognised directly in Other comprehensive income (OCI) (in USD million) 2018 2017 2016 Net actuarial (losses) gains recognised in OCI during the year (282) 331 (482) Actuarial (losses) gains related to currency effects on net obligation and foreign exchange translation 172 (158) (21) Tax effects of actuarial (losses) gains recognised in OCI 22 (38) 129 Recognised directly in OCI during the year net of tax (88) 135 (374) Cumulative actuarial (losses) gains recognised directly in OCI net of tax (1,141) (1,053) (1,188) Actuarial assumptions Assumptions used to determine benefit costs in % Assumptions used to determine benefit obligations in % 2018 2017 2018 2017 Discount rate 2.50 2.50 2.75 2.50 Rate of compensation increase 2.25 2.25 2.75 2.25 Expected rate of pension increase 1.75 1.75 2.00 1.75 Expected increase of social security base amount (G-amount) 2.25 2.25 2.75 2.25 Weighted-average duration of the defined benefit obligation 15.9 17.2 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. Expected attrition at 31 December 201 8 was 0.2 % and 0 % for employees between 50-59 years and 60-67 years, and 0.2 % and 2.2 % in 2017. In 2018 a separate attrition rate of 3.2 % was calculated for employees between 60-67 with immediate withdrawal of vested pension, thus remaining in the scheme. For population in Norway, the mortality table K2013, issued by The Financial Supervisory Author ity of Norway, is used as the best mortality estimate. Disability tables for plans in Norway developed by the actuary were implemented in 2013 and r epresent the best estimate to use for plans in Norway. Sensitivity analysis The table below presents an estimate of the potential effects of changes in the key assumptions for the defined benefit plans. The following estimates are based on facts and circum stances as of 31 December 201 8 . Discount rate Expected rate of compensation increase Expected rate of pension increase Mortality assumption (in USD million) 0.50% -0.50% 0.50% -0.50% 0.50% -0.50% + 1 year - 1 year Changes in: Defined benefit obligation at 31 December 2018 (611) 695 169 (167) 520 (473) 296 (324) Service cost 2019 (21) 25 7 (7) 16 (14) 8 (9) 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. Real estate properties owned by Equinor Pension amounted to USD 417 million and USD 447 m illion of total pe nsion assets at 31 December 2018 and 201 7 , respectively, and are rented to Equinor companies. The table below presents the portfolio weighting as approved by the board of Equinor Pension for 201 8 . The portfolio weight during a year will depend on the risk capacity. Pension assets on investments classes Target portfolio weight (in %) 2018 2017 Equity securities 36.5 37.5 31 - 43 Bonds 44.9 41.7 36 - 48 Money market instruments 12.3 14.3 0 - 29 Real estate 6.3 6.1 5 - 10 Other assets 0.0 0.4 Total 100.0 100.0 In 2018 92 % of the equity securities, 31 % of bonds and 55 % of money market instruments had quoted market prices in an active market (level 1). 8 % of the equity securities, 69 % of bonds and 45 % 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, classified at level 2 in the fair value hierarchy. In 2017 92 % of the equity securities, 32 % of bonds and 67 % of money market instruments had quoted market prices in an active market. 8 % of the equity securities, 68 % of bonds and 32 % of money market instruments had market prices based on inputs other than quoted prices (level 2). For definition of the various levels, see note 2 6 Financial instruments: fair value measurement and sensitivity analysis of market risk . Company contributions to be made to Equinor Pension in 2019 are expected to be less than USD 100 million . |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Other provisions [abstract] | |
Provisions [text block] | 20 Provisions (in USD million) Asset retirement obligations Claims and litigations Other provisions Total Non-current portion at 31 December 2017 12,383 1,271 1,904 15,557 Current portion at 31 December 2017 reported as trade and other payables 69 68 547 684 Provisions at 31 December 2017 12,451 1,339 2,451 16,241 New or increased provisions 1,609 6 858 2,473 Decrease in the estimates (382) (386) (121) (889) Amounts charged against provisions (157) (4) (588) (749) Effects of change in the discount rate (838) - 24 (814) Accretion expenses 461 - - 461 Reclassification and transfer - 6 15 21 Currency translation (536) (0) (32) (568) Provisions at 31 December 2018 12,609 961 2,606 16,175 Current portion at 31 December 2018 reported as trade and other payables 65 56 103 224 Non-current portion at 31 December 2018 12,544 905 2,503 15,952 The line item New or increased provisions includes additional provisions made in the period, including increase in estimates, and liabilities assumed in business combinations. The claims and litigations category mainly relates to expected payments on unresolved claims. The timing and amounts of potential settlements in respect of these are uncertain and dependent on various factors that are outside management's control. The main change in the caption claims and litigations conc erns a development in the Agbami redetermination process in Nigeria. For further information on the development and the other contingent liabilities , see note 2 4 Other commitments, contingent liabilities and contingent assets . The other provisions category relates to liabilities for contingent consideration in the acquisitions, expected payments on onerous contracts, cancellation fees and other. In 2018, Equinor recognised liability for contingent consideration and asset retirement obligations related to th e acquisition of the interest in the Roncador field in Brazil. In the first quarter of 2018 , Equinor paid the current portion of a contingent consideration related to the acquisition of operated interest in BM-S-8 licence in Brazil in 2016 . The current por tion amounted to USD 0.3 billion and the remaining provision amounts to USD 0.9 billion. For further information, see note 4 Acquisitions and disposals . For further information of methods applied and estimates required, see note 2 Significant accounting po licies. Expected timing of cash outflows (in USD million) Asset retirement obligations Other provisions, including claims and litigations Total 2019 - 2023 1,307 2,447 3,754 2024 - 2028 1,891 682 2,574 2029 - 2033 3,530 36 3,566 2034 - 2038 2,534 13 2,546 Thereafter 3,348 388 3,736 At 31 December 2018 12,609 3,567 16,175 |
Trade, other payables and provi
Trade, other payables and provisions | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other payables [abstract] | |
Disclosure of trade and other payables [text block] | 21 Trade, other payables and provisions At 31 December (in USD million) 2018 2017 Trade payables 2,532 3,181 Non-trade payables and accrued expenses 2,604 2,345 Joint venture payables 2,254 2,464 Payables to equity accounted associated companies and other related parties 725 858 Total financial trade and other payables 8,115 8,849 Current portion of provisions and other non-financial payables 255 888 Trade, other payables and provisions 8,369 9,737 Included in c urrent portion of provisions and other non-financial payables are certain provisions tha t are further described in note 20 Provisions and in note 2 4 Other commitments , contingent liabilities and contingent assets . For information regarding currency sensitivities, see note 2 6 Financial instruments: fair value measurement and sensitivity analys is of market risk. For further information on payables to equity accounted associated companies and other related parties, see note 2 5 Related parties . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Presentation of leases for lessee [abstract] | |
Disclosure of leases [text block] | 22 Leases Equinor leases certain assets, notably drilling rigs, vessels and office buildings. Lease contracts committed by a licence are presented net, based on Equinor’s participation interest in the respective licences. Lease contracts for helicopters, supply vessels and other assets used to serve a group of licences are presented net based on Equinor’s average participation interests in these licences. In 2018, net rental expenditures were USD 2,080 million ( USD 2,075 million in 2017 and USD 2,569 million in 2016). No material contingent rent payments have been expensed in 2018, 2017 or 2016. The information in the table below shows future minimum lease payments due under non-cancellable operating leases at 31 December 2018: Operating leases (in USD million) Rigs Vessels Land and buildings Storage Other Total 2019 998 662 143 83 113 2,001 2020 523 599 141 60 84 1,406 2021 349 534 140 41 50 1,114 2022 372 384 136 40 28 960 2023 280 316 198 25 13 832 2024-2028 75 789 544 68 50 1,527 2029-2033 - 131 223 6 17 376 Thereafter - - 32 - 7 39 Total future minimum lease payments 2,597 3,414 1,558 322 363 8,253 Equinor had certain operating lease contracts for drilling rigs at 31 December 2018 . The remaining significant contracts' terms range from one month to six years. Rig lease agreements are for the most part based on fixed day rates. Certain rigs have been leased by Equinor and assigned in whole or for part of the lease term mainly to Equinor operated licences on the Norwegian continental shelf. These leases are included net (Equinor share) as operating leases in the table above. Certain contracts include bo th lease- and non-lease components. These non-lease components, mainly relating to operations of drilling rigs and vessels, are estimated to approximately USD 1.5 billion and are included in the figures above. Equinor has a long-term time charter agreement with Teekay for offshore loading and transportation in the North Sea. The contract covers the lifetime of applicable producing fields and at year end 2018 includes three crude tankers. The contract's estimated nominal amount was approximately USD 529 mill ion at year end 2018, and it is included in the category Vessels in the table above. The category L and and buildings include future minimum lease payments from Equinor ASA to related parties of USD 474 million regarding the lease of one office building loc ated in Bergen and one in Harstad, both owned by Equinor`s pension fund (“Equinor Pension”). These operating lease commitments extend to the year 2037 . USD 356 million of the total is payable after 2022. Equinor had finance lease liabilities of USD 432 m illion at 31 December 2018. The nominal minimum lease payments related to these finance leases amount to USD 555 million. Property, plant and equipment includes USD 380 million for finance leases that have been capitalised at year end (USD 439 million in 2 017), mainly presented in the category Machinery, equipment and transportation equipment, including vessels in note 10 Property, plant and equipment. Certain contracts contain renewal options. The execution of such options will depend on future market development and business needs at the time when such options are to be exercised. |
Implementation of IFRS16 Leases
Implementation of IFRS16 Leases | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of implemenation of IFRS Leases [abstract] | |
Disclosure of implementation of IFRS 16 leases [text block] | 23 Implementation of IFRS 16 Leases IFRS 16 Leases , which will be implemented by Equinor on 1 January 2019, covers the recognition of leases and related disclosure in the financial statements, and will replace IAS 17 Leases. The new standard defines a lease as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In the financial statement of lessees, IFRS 16 requires recognition in the balance sheet for each contract th at meets its definition of a lease as right-of-use asset and a lease liability, while lease payments are to be reflected as interest expense and a reduction of lease liabilities. The right-of-use assets are to be depreciated over the shorter of each contra ct’s term and the assets’ useful life. IFRS 16 will also lead to changes in the classification of lease-related payments in the statement of cash flows, where the portion of lease payments representing down-payments of lease liabilities will be classified as cash flows used in financing activities. The standard implies a significant change in lessees’ accounting for leases currently defined as operating leases under IAS 17. Equinor is for the most part a lessee in applying lease accounting, and the desc riptions below consequently reflect lessee accounting. However, in certain instances, particularly as relates to Equinor’s role as operator in unincorporated joint operations (licen c es), lessor accounting is applied. Upon implementation of IFRS 16, the fo llowing main implementation and application policy choices have been made by Equinor : IFRS 16 transition choices IFRS 16 will be implemented retrospectively with the cumulative effect of initially recogni s ing the standard as an adjustment to retained ear nings at the date of initial application, and without restatement of prior periods’ reported figures (“the modified retrospective method”) Contracts already classified either as leases under IAS 17 or as non-lease service arrangements will maintain their r espective classifications upon the implementation of IFRS 16 (“grandfathering of contracts”) Leases for which the lease term ends within 12 months of 1 January 2019 will not be re flected as leases under IFRS 16 Right-of-use assets will for most contracts i nitially be reflected at an amount equal to the corresponding lease liability. Any existing onerous contract provisions related to leases will reduce the value of the corresponding RoU asset to be recognised IFRS 16 policy application choices Short term l eases (12 months or less) and leases of low value assets will not be reflected in the balance sheet but will be expensed or (if appropriate) capitali s ed as incurred, depending on the activity in which the leased asset is used Non-lease components within le ase contracts will be accounted for separately for all underlying classes of assets and reflected in the relevant expense category or (if appropriate) capitali s ed as incurred, depe nding on the activity involved Significant accounting interpretations and j udgments related to the IFRS 16 application IFRS 16 in general, as well as the policy application choices made, involve several accounting interpretations and application of judgement which will impact Equinor’s Consolidated financial statements. The accou nting issues and interpretations which will most significantly affect the implementation of IFRS 16 in Equinor are summaris ed below. Distinguishing operators and joint operations as lessees, including sublease considerations The most significant accounting judgment in Equinor’s application of IFRS 16 has been and remains distinguishing between the joint operation (licen c es) or the operator as the relevant lessee in upstream activity lease contracts, and consequently whether such contracts are to b e reflected gross (100%) in the operator’s financial statements, or according to each joint operation partner’s proportionate share of the lease. In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar a rrangements, the application of IFRS 16 requires evaluations of whether the joint arrangement or its operator is the lessee in each lease agreement. In many cases where an operator is the sole signatory to a lease contract of an asset to be used in the a ctivities 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 this includes the Norwegian c ontinental s helf (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 (licen c es). 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. Depending on facts and circumstances in each case, the conclusions reached may vary between contracts and legal jurisdictions. In summary, Equinor expects to recogni s e lease liabilities based on the principles described below. In the following, the term “licen c e” references non-incorporated joint operations and similar arrangements; Leases to be recognised by Equinor as the operator of a licen c e Where all partners in a licen c e are considered to share the primary respons ibility for lease payments under a contract, the related lease liability and RoU asset will be recogni s ed net by Equinor, on the basis of Equinor’s participation interest in the licen c e. Such instances include contracts where all licen c e partners have co-s igned a lease contract and situations where Equinor as the operator of the licen c e has been given a legally binding mandate to sign the external lease contract on behalf of the licen c e partners, provided that this mandate makes all licen c e participants pri mary liable for the external lease liability. Equinor will recogni s e a lease liability on a gross (100%) basis when it is considered to have the primary responsibility for the full external lease payments. When a financial sublease is considered to exist between Equinor and a licen c e, Equinor will de recognise a portion of the RoU asset equal to the non-operators’ interests in the lease, and instead recognise a corresponding financial lease receivable. A financial sublease will typically exist where Equinor enters into a contract in its own name, where it has the primary responsibility for the external lease payments, where the leased asset is to be used on one specific licen c e, and where the costs and risks related to the use of this asset are carried by th at specific licen c e. Where Equinor reports its lease liabilities on a gross basis, due to being considered the primary responsible for the external lease payment, and where the use of the leased asset on a licen c e is not considered a financial sublease, E quinor will recognise the related RoU asset on a gross basis. Lease payments recovered by Equinor from its licen c e partners based on their proportionate shares of the lease will be recognise d as other revenues. Such expenses have under the previous lease a ccounting rules been reflected net by Equinor, on the basis of Equinor’s net participation interest in the licen c e. Expenses which are not included in a recognise d lease obligation, such as payments for short term leases, non-lease components and variable lease payments, will continue to be reported net in Equinor’s statement of income, on the basis of Equinor’s net participation interest. Leases to be recognise d by Equinor as a non-operator of a licen c e As a licen c e participant, but non-operator, of an oi l and gas licen c e, Equinor will recognise its proportionate share of a lease when Equinor is considered to share the primary responsibility for a licen c e committed lease liability. This includes contracts where Equinor has co-signed a lease contract and co ntracts for which the operator has been given a legally binding mandate to sign the external lease contract on behalf of the licen c e partners. Equinor will also recognise its proportionate share when a lease contract is entered by the operator of a licen c e, and where the operator’s use of the leased asset represents a sublease from the operator to the licen c e. A sublease is considered to take place in situations where the operator agrees with its licen c e partners that an identified asset is committed to b e used solely in the operations of the specific licen c e for a specified period of time, and where the use of the asset is deemed to be controlled jointly by the licen c e partnership. Reporting of rig sharing arrangements As a significant operator on the NC S, Equinor might sign lease contracts on behalf of one or more individual licen c es which have committed to use the leased rig for specific periods of time. A rig sharing arrangement will determine where and when the rig will be used throughout the contract period. When a licen c e is considered a lessee in a rig sharing arrangement, the licen c e is considered a lessee for its respective portion of the full lease period. Accordingly, Equinor will account for these lease contracts from a licen c e perspective, bot h with regards to considering when to use the short-term exemption from IFRS 16’s requirements, and when determining the commencement of the lease. When a rig lease is entered in Equinor’s own name, the lease liability will be recognise d in Equinor’s C onsolidated balance sheet on a gross (100%) basis. However, Equinor will not recognise any lease liability for periods where the rig is formally assigned to another party, effectively transferring both the right to use the leased asset and the primary resp onsibility for lease payments under the contract to this other party. When a leased asset is assigned to a licen c e for two or more non-consecutive periods within the same contract, Equinor will account for these non-consecutive periods in combination, bo th when considering whether to use the short-term exemption, and when determining the commencement of the lease. Separation of lease and non-lease components Many of Equinor’s lease contracts, such as rig and vessel leases, involve a number of 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. Where the additional services are not separately priced, the consideration paid has been allocated based on the relative stand-alone prices of the lease and non-lease components. Equinor’s previous practice for lease commitments reporting was to not distinguish fixed non-lease components within a lease contract from the actual lease components. The choice made under IFRS 16 to account for non-lease components separately for all classes of assets consequently represents a change in Equinor’s reporting of leases Evaluating the impact of option periods for the lease terms Many of Equinor’s major leases, such as leases of vessels, rigs and buildings, include options to extend the lease term. Under IFRS 16, the evaluation of whether each lease contract’s extension options are cons idered reasonably certain to be exercised, are made at commencement of the leases and subsequently when facts and circumstances which are under the control of Equinor require it. In Equinor’s view, the term ‘reasonably certain’ implies a probability level significantly higher than ‘probable’, and this has been reflected in Equinor’s evaluations. Distinguishing fixed and variable lease payment elements Under IFRS 16, fixed and in-substance fixed lease payments are to be included in the commencement date co mputation of a lease liability, while variable payments dependent on use of the asset are not. Particularly as regards drilling rig leases, Equinor’s lease contracts include fixed rates for when the asset in question is in operation, and various alternativ e, lower rates (“stand-by rates”) for periods where the asset is engaged in specified activities or idle, but still under contract. In general, variability in lease payments under the contract has its basis of different uses and activity levels, and the va riable elements have been determined to relate to non-lease components only. Consequently, the lease components of these contractual payments are considered fixed for the purposes of IFRS 16. Determining the incremental borrowing rate to be used as disco unt factor In measuring the present value of the lease liability under IFRS 16, the standard requires that the lessee’s incremental borrowing rate be used as discount factor if the rate implicit in the lease cannot be readily determined. In establishing E quinor’s lease liabilities, the incremental borrowing rates used as discount factors in discounting payments are established based on a consistent approach reflec ting the Group’s borrowing rate, the currency of the obligation, the duration of the lease ter m, and the credit spread for the legal entity entering the lease contract . Expected impact from implementation of IFRS 16 on Equinor’s financial statements Balance sheet Equinor currently expects that the implementation of IFRS 16 on 1 January 2019 will increase the C onsolidated balance sheet by adding lease liabilities of approximately USD 4.2 billion and a corresponding right of use assets on the asset side. Consequently. E quity is not expected to be impacted from the implementation of IFRS 16. The fig ure is a preliminary estimate, on basis of Equinor’s current policy interpretations. The table below presents a reconciliation of Equinor’s operating lease liabilities as reported under IAS 17 Leases per 31 December 2018, and the IFRS 16-based lease liab ility expected to be recognise d in the C onsolidated balance sheet on 1 January 2019. (in USD million) Operating lease commitments (IAS 17) at 31 December 2018 8,253 Short term leases and leases expiring during 2019 (666) Non-lease components (1,469) Commitments related to leases not yet commenced (2,116) Leases reported gross vs net 711 Effect of discounting (485) Finance leases (IAS 17) included in the balance sheet at 31 December 2018 432 Lease liability to be reported under IFRS 16 at 1 January 2019 4,660 Reference is made to the policy descriptions above for explanations of the reconciling items. Leases not yet commenced relates to situations where a contract is signed, but where Equinor has not yet obtained the right to control an underlying asset, either on its own or through a joint operation. Extension and termination options within the lease contracts are in all material respect reported on the same basis as under IAS 17 Leases. Mo st leases are used in operational activities. The extension options which are considered reasonably certain to be exercised are mainly those for which operational decisions have been made which make the leased assets vital to the continued relevant busines s activities. Statement of income In the Consolidated statement of income, operating lease costs will be replaced by depreciation and interest expenses. For leases allocated to activities which are capitalise d, the costs will continue to be expensed as b efore, through depreciation of the asset involved or through the subsequent expensing of capitalise d exploration. Equinor expects more currency volatility within financial items due to recognition of lease liabilities in foreign currencies. In particular, this relates to USD-denominated lease contracts for assets such as drilling rigs and supply vessels used on the NCS, where the contract is entered into by an Equinor entity with NOK as its functional currency, and NOK-based office leases entered into by E quinor ASA, which has USD as its functional currency. Cash flow statement In the cash flow statement, lease down-payments will be presented as a cash flow used in financing activities under IFRS 16. Previously, operating lease costs were presented within cash flows from operations or investing cash flows respectively, depending on whether the leased asset is used in operating activity or activities that are capitalise d. In situations where Equinor is considered to have the primary responsibility for a le ase liability, and consequently reports the lease liability on a gross basis, any corresponding payments from partner recharges recognise d as other revenue in the income statement will also be reported on a gross basis in the cash flow statement, with the gross lease payments being recognise d as a financing cash flow and the recharge from partners recognise d as an operating cash flow. Consequently, cash flows from operating activities will increase and cash flow used in investing activities will be reduced due to the implementation of IFRS 16. Segment reporting Equinor does not plan changes to how management will monitor and follow up lease contracts used in its business operations. All lease contracts will therefore be presented within Equinor’s “Other”- segment, and the E&P segments as well as the MMP segment will continue to be presented without reflecting IFRS 16 lease accounting. In these segments, the costs of operating leases will be presented as operating costs rather than depreciation and interests . A corresponding credit will be recognise d in the “Other”-segment to offset the lease costs recognise d in the E&P and MMP segments. |
Other commitments, contingent l
Other commitments, contingent liabilities and contingent assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [abstract] | |
Disclosure of other provisions, contingent liabilities and contingent assets [text block] | 24 Other commitments, contingent liabilities and contingent assets Contractual commitments Equinor had contractual commitments of USD 6,269 million at 31 December 2018. The contractual commitments reflect Equinor's share and mainly comprise construction and acquisition of property, plant and equipment as well as committ ed investments in equity accounted entities. As a condition for being awarded oil and gas exploration and production licences, participants may be committed to drill a certain number of wells. At the end of 2018, Equinor was committed to participate in 43 wells, with an average ownership interest of approximately 39 %. Equinor's share of estimated expenditures to drill these wells amounts to USD 578 million. Additional wells that Equinor may become committed to participating in depending on future discoveri es 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 com mitments 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 2044 . 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 f or the commodity at the time of delivery. Obligations payable by Equinor to entities accounted for using the equity method are included gross in the table below. For assets (for example pipelines) that Equinor accounts for by recognising its share of asset s, liabilities, income and expenses (capacity costs) 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. gross commitment less Equinor's ownership share). Nominal mi nimum other long-term commitments at 31 December 2018: (in USD million) 2019 1,584 2020 1,463 2021 1,303 2022 1,134 2023 1,050 Thereafter 4,947 Total 11,479 Guarantees Equinor has guaranteed for its proportionate share of an associate’s long term bank debt, payment obligations under contracts and some third party obligations amounting to USD 741 mill ion . The book value of the guarantees are immaterial . Contingent liabilities and contingent assets Redetermination process for Agbami field Through its ownership in OML 128 in Nigeria, Equinor is a party to an ownership interest redetermination process for the Agbami field. In October 2015, Equinor received t he Expert’s final ruling which implied a reduction of 5.17 percentage points in Equinor’s equity interest in the field. Equinor had previously initiated arbitration proceedings to set aside interim decisions made by the Expert, but this was declined by the arbitration tribunal in its November 2015 judgment. Equinor proceeded to the Court of Appeal to have the arbitration award set aside, but the appeal was dismissed in the fourth quarter of 2018. In 2016 Equinor also initiated arbitration to set aside the Expert’s final ruling. The award in this arbitration was delivered in the second quarter of 2018, dismissing Equinor’s claim. At the time of the arbitration award, there was no impact on Equinor’s accounting for the Agbami redetermination, as the outcome had been provided for in line with the Expert’s ruling. In 2018, Equinor also explored the possibility of an out-of-court settlement of the redetermination dispute. A non-bindi ng agreement has been reached during the fourth quarter of 2018. Equinor’s best estimate related to the redetermination has changed, and the provision net of tax has been reduced by USD 349 million in the fourth quarter. The reversal of the provision has b een recognised in the Consolidated statement of income, combined with the effect of volumes lifted as of 31 December 2018, mainly through an increase in other revenue of USD 774 million, increase in depreciation, amortisation and net impairment losses of U SD 143 million, and increased tax cost of USD 297 million. As of 31 December 2018, Equinor’s remaining provision net of tax related to the Agbami redetermination amounts to USD 854 million. The provision is reflected within Non-current provisions in the Consolidated balance sheet . Price review arbitration Some long-term gas sales agreements contain price review clauses, which in certain cases lead to claims subject to arbitration. The range of exposure related to ongoing arbitration broadened in the second quarter of 2018, and the exposure for Equinor has been estimated to approximately USD 1.2 billion for gas delivered prior to year-end 2018. Based on Equinor’s assessment, no provision is included in the Consolidated financial statements at year-end 2018. The timing of the resolution is uncertain but is estimated to 2019-2020. Price review arbitration related changes in provisions throughout 2018 are immaterial and have been reflected in the Consolidated statement of income as adjustments to revenue f rom contracts with customers. Dispute with Brazilian tax authorities Brazilian tax authorities have issued an updated tax assessment for 2011 for Equinor’s Brazilian subsidiary which was party to Equinor’s divestment of 40 % of the Peregrino field to Sin ochem at that time. The assessment disputes Equinor’s allocation of the sale proceeds between entities and assets involved, resulting in a significantly higher assessed taxable gain and related taxes payable in Brazil. Equinor disagrees with the assessment and has provided responses to this effect. The ongoing process of formal communication with the Brazilian tax authorities, as well as any subsequent litigation that may become necessary, may take several years. No taxes will become payable until the matte r has been finally settled. Equinor is of the view that all applicable tax regulations have been applied in the case and that the group has a strong position. No amounts have consequently been provided for in the accounts. Suit for an annulment of Petrobr as’ sale of the interest in BM-S-8 to Equinor In March 2017, the Union of Workers of Oil Tankers 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. There was also an injunction request to suspend the assignment which was granted in April 2017 by a federal judge and was subsequently lifted by the Federal Regional Court. The cases are progressing through the court system. At the end of 2018 the acquired interest remains in Equinor’s balance sheet as intangible assets of the Exploration & Production International (E&P I nternational) segment. For further information about Equinor’s acquisitions and divestments in BM-S-8, reference is made to note 4 Acquisitions and di sposals . A deviation notices from Norwegian tax authorities On 6 July 2016, the Norwegian tax authorities issued a deviation notice for the years 2012 to 2014 related to the internal pricing on certain transactions between Equinor Coordination Centre ( ECC ) in Belgium and Norwegian entities in the Equinor group. The main issue in this matter relates to E CC`s c apital structure and its compliance with the arm’s length principle. Equinor is of the view that arm’s length pricing has been applied and that the group has a strong position, and no amounts have consequently been provided for this issue in the accounts. On 28 February 2018, Equinor received a notice of deviation from Norwegian tax authorities related to an ongoing dispute regarding the level of Research & Development cost to be allocated to the offshore tax regime, increasing the maximum exposure in thi s matter to approximately USD 500 million. Equinor provided for its best estimate in the matter. Dispute concerning termination of a long-term contract for the drilling rig COSL Innovator. In March 2016 Equinor Energy AS, acting on behalf of the Troll field partners, terminated a long-term contract for the drilling rig COSL Innovator. The termination was disputed in court by the rig owner COSL Offshore Management AS (COSL). Equinor’s share of the total exposure, based on COSL’s original claim, has been estimated to be approximately USD 200 million excluding penalty interest. In May 2018, the court of first instance (Oslo District Court) ruled that while the contract could be cancelled according to the applicable clauses of the contract and with payment o f the appropriate cancellation charge, the contract had not been validly terminated. In June 2018 both parties appealed the verdict to the court of appeal. Oslo District Court’s ruling is consequently not final. Equinor intends to defend its own and the Tr oll partners’ position and considers it to be more likely than not that the final verdict will conclude that the termination of the rig contract was valid under its terms. No provision related to the dispute is included in Equinor’s accounts as of 31 Decem ber 2018. A dispute between the Federal Government of Nigeria and the Governments of Rivers, Bayelsa and Akwa Ibom States in Nigeria In October 2018, Supreme Court of Nigeria rendered a judgement in a dispute between the Federal Government of Nigeria and the Governments of Rivers, Bayelsa and Akwa Ibom States in favour of the latter. The Supreme Court judgement provides for potential retroactive adjustment of certain production sharing contracts in favour of the Federal Government, including OML 128 (Agbam i) where Equinor has 53 . 85 % equity interest. Equinor sees no merit to the case. No provision has been made for this matter. Other claims During the normal course of its business, Equinor is involved in legal proceedings, and several other unresolved claim s 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 claim s 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 con tractual 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 are reflected within note 20 Provisions . |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of related party [text block] | 25 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 2018, the Norwegian State had an ownership interest in Equinor of 67.0 % ( excluding Folketrygdfondet, the Norwegian national insurance fund, of 3.3 %). 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 relat ed party. All transactions are considered to be on an arm's length basis. Total purchases of oil and natural gas liquids from the Norwegian State amounted to USD 8,604 million, USD 7,352 million and USD 5,848 million in 2018, 2017 and 2016, respectively. T otal purchases of natural gas regarding the Tjeldbergodden methanol plant from the Norwegian State amounted to USD 49 million, USD 39 million and USD 44 million in 2018, 2017 and 2016, respectively. These purchases of oil and natural gas are recorded in Eq uinor ASA. In addition, Equinor ASA sells in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s gas production. These transactions are presented net. For further information please see note 2 Significant accounting policies . The most significant items included in the line item E quity accounted investments and other related party payables in note 21 Trade and other payables , are amounts payable to the Norwegian State for these purchases. Other transactions In relation to 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. Such transactions are carried out on an arm's length basis and are included within the applicable captions in the Consolidated statement of income. Gassled and certain other infrastructure assets are operated by Gassco AS, which is an entity under common control by the Norwegian Ministry of Petroleum and Energy. Gass co’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 1,351 mi llion, USD 1,155 million and USD 1,167 million in 2018, 2017 and 2016, respectively. These payments are recorded in Equinor ASA. In addition, Equinor ASA process in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s share o f the Gassco costs. These transactions are presented net. As of 31 December 2018, Equinor had an ownership interest in Lundin Petroleum AB (Lundin) of 20.1 % of the outstanding shares and votes. Total purchase of oil and related products from Lundin amounte d to USD 879 million, USD 176 million and USD 155 million in 2018, 2017 and 2016, respectively. Total sale of oil and related products to Lundin amounted to USD 296 million in 2018, USD 0 million in 2017 and 2016, respectively. The sale and purchase of oil and related products are recorded in Equinor ASA. For information concerning certain lease arrangements with Equinor Pension, see note 22 Leases . Related party transactions with management are presented in note 6 Remuneration . Management remuneration for 2018 is presented in note 4 Remuneration in the financial statements of the parent company, Equinor ASA. |
Financial instruments_ fair val
Financial instruments: fair value measurement and sensitivity analysis of market risk | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of financial instruments [text block] | 26 Financial instruments : fair value measurement and sensitivity analysis of market risk 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: Classification and Measurement . See note 27 Changes in accounting policies for information on how Equinor’s classes of financial instruments were measured at IAS 39 categories. For financial investments the difference between measurement as defined by IFRS 9 categories and measurement at fair value is immaterial . See note 18 Finance debt for fair value information of non-current bonds, bank loans and finance lease liabilities. See note 2 Significant accounting policies for further information regarding measurement of fair values. (in USD million) Note Amortised cost Fair value through profit or loss Non-financial assets Total carrying amount At 31 December 2018 Assets Non-current derivative financial instruments - 1,032 - 1,032 Non-current financial investments 13 90 2,365 - 2,455 Prepayments and financial receivables 13 854 - 179 1,033 Trade and other receivables 15 8,488 - 510 8,998 Current derivative financial instruments - 318 - 318 Current financial investments 13 6,145 896 - 7,041 Cash and cash equivalents 16 5,301 2,255 - 7,556 Total 20,878 6,866 689 28,433 (in USD million) Note Amortised cost Fair value through profit or loss Non-financial assets Total carrying amount At 31 December 2017 Assets Non-current derivative financial instruments - 1,603 - 1,603 Non-current financial investments 13 47 2,794 - 2,841 Prepayments and financial receivables 13 723 - 188 912 Trade and other receivables 15 8,560 - 865 9,425 Current derivative financial instruments - 159 - 159 Current financial investments 13 4,085 4,363 - 8,448 Cash and cash equivalents 16 2,917 1,473 - 4,390 Total 16,332 10,393 1,053 27,778 (in USD million) Note Amortised cost Fair value through profit or loss Non-financial liabilities Total carrying amount At 31 December 2018 Liabilities Non-current finance debt 18 23,264 - - 23,264 Non-current derivative financial instruments - 1,207 - 1,207 Trade and other payables 21 8,115 - 255 8,369 Current finance debt 18 2,463 - - 2,463 Dividend payable 766 - - 766 Current derivative financial instruments - 352 - 352 Total 34,608 1,559 255 36,422 (in USD million) Note Amortised cost Fair value through profit or loss Non-financial liabilities Total carrying amount At 31 December 2017 Liabilities Non-current finance debt 18 24,183 - - 24,183 Non-current derivative financial instruments - 900 - 900 Trade and other payables 21 8,849 - 888 9,737 Current finance debt 18 4,091 - - 4,091 Dividend payable 729 - - 729 Current derivative financial instruments - 403 - 403 Total 37,852 1,302 888 40,042 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 2018 Level 1 1,088 - 365 - - - - 1,453 Level 2 1,027 806 531 274 2,255 (1,172) (351) 3,370 Level 3 250 227 - 44 - (35) (1) 485 Total fair value 2,365 1,032 896 318 2,255 (1,207) (352) 5,307 At 31 December 2017 Level 1 1,126 - 355 - - - - 1,481 Level 2 1,271 1,320 4,008 122 1,473 (900) (399) 6,896 Level 3 397 283 - 37 - - (4) 713 Total fair value 2,794 1,603 4,363 159 1,473 (900) (403) 9,090 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 recognised 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 t han quoted prices included within l evel 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 exchange rates as inputs to the valuation models to determining the fair value of its derivative financial instruments. Level 3, fair value based on unobse rvable 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 valua tion. The fair value of certain earn-out agreements and embedded derivative cont racts 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 ap plicable 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 entiret y in the third category within c urrent derivative financial instrume nts and n on-current de rivative financial instruments . Another reasonable assumption, that could have been applied when determining the fair value of these contracts, would be to extrapolate the last observed forward prices with inflation. Applying this ass umption would have an insignificant impact on the fair value for these contracts. The reconciliation of the changes in fair value during 201 8 and 201 7 for financial instruments classified as level 3 in the hierarchy are presented in the follow ing table. (in USD million) Non-current financial investments Non-current derivative financial instruments - assets Current derivative financial instruments - assets Non-current derivative financial instruments liabilities Current derivative financial instruments - liabilities Total amount Opening as at 1 January 2018 397 283 37 - (4) 713 Total gains and losses recognised in statement of income (91) (44) 46 (35) 3 (122) Purchases 35 - - - - 35 Settlement - - (36) - - (36) Transfer to level 1 (88) - - - - (88) Foreign currency translation differences (3) (13) (3) - - (18) Closing as at 31 December 2018 250 227 44 (35) (1) 485 Opening as at 1 January 2017 207 848 66 (6) (4) 1,110 Total gains and losses recognised in statement of income - (69) 36 6 - (27) Purchases 90 - - - - 90 Settlement - (533) (67) - - (600) Transfer into level 3 94 - - - - 94 Foreign currency translation differences 5 37 3 - - 45 Closing as at 31 December 2017 397 283 37 - (4) 713 During 2018 the financial instruments within level 3 have had a net decrease in the fair value of USD 228 million. The USD 12 2 million recognised in the Consolidated statement of income during 2018 are impacted by a n increase of USD 54 million related to changes in fair value of certain earn-out agreements. Related to the same earn-out agreements, USD 36 million included in the opening balance for 2018 has been fully realised as the underlying volumes have bee n delivered during 2018 . Sensitiv ity analysis of market risk Commodity price risk The table below contains the commodity price risk sensitivities of Equinor 's commodity based derivatives contracts. For further information related to the type of commodity risks and how Equinor manages th ese risks, see note 5 Financial risk management . Equinor 's assets and liabilities resulting from commodity based derivatives 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 201 8 at 30 %, and at the end of 2017 at 2 0 %, are assum ed 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 2018 2017 (in USD million) - 30% + 30% - 20% + 20% At 31 December Crude oil and refined products net gains (losses) 275 (230) 687 (606) Natural gas and electricity net gains (losses) 1,157 (1,156) 613 (613) Currency risk The following currency risk sensitivity has been calculated, by assuming an 9% reasonable change in the main exchange rates that impact Equinor’s financial accounts, based on balances at 31 December 2018. At 31 December 2017 a change of 8% in the main exchange rates were viewed as a reasonable change. With reference to table below, an increase in the exchange rates means that the disclosed currency has strengthened in value against all other currencies. The estimated gains and the estimated losses following from a change in the exchange rates would impact the Consolidated statement of income. For further information related to the currency risk and how Equinor manages these risks, see note 5 Financial risk management. Currency risk sensitivity 2018 2017 (in USD million) - 9% + 9% - 8% + 8% At 31 December USD net gains (losses) (230) 230 119 (119) NOK net gains (losses) 311 (311) (94) 94 Interest rate risk The following interest rate risk sensitivity has been calculated by assuming a change of 0.6 percentage points as reasonably possible changes in the i nterest rates at the end of 2018 . A change of 0.6 percentage points in the interest rates was also in 2017 viewed as reasonably possible changes. The estimated gains following from a decrease in the interest rates a nd the estimated losses following from an interest rate increase would impact the C onsolidated statemen t of income . For further information related to the interest risks and how Equinor manages these risks, see note 5 Financial risk management. Interest risk sensitivity 2018 2017 (in USD million) - 0.6 percentage points + 0.6 percentage points - 0.6 percentage points + 0.6 percentage points At 31 December Interest rate net gains (losses) 575 (575) 664 (664) |
Changes in accounting policies
Changes in accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies [abstract] | |
Change in accounting policy | 27 Changes in accounting policies With effect from 1 January 2018, Equinor has implemented IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. As of the same date, Equinor has voluntarily changed its policy for presentation of certain elements related to derivatives, non-cash currency effects and working capital items in the statement of cash flows, and its policy in accounting for lifting imbalances. IFRS 9 Financial Instruments IFRS 9 replaced IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 has been implemented retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application. The implementation impact of IFRS 9 is immaterial, and Equinor’s equity as at January 2018 have consequently not been adjusted upon adoption of the standard. In accordance with the IFRS 9’s transitional provisions, comparative figures have not been restated. On the date of initial application of IFRS 9, Equinor ’s financial instrument assets were classified into measurement categories as follows. The table shows the assets by cate gory according to previous requirements and according to IFRS 9, with differences in carrying amounts noted where applicable: Measurement Category Carrying Amount Original New Original New Difference (in USD million) (IAS 39) (IFRS 9) (IAS 39) (IFRS 9) Assets at 1 January 2018 Non-current derivative financial instruments Held for trading Fair value through profit or loss 1,603 1,603 - Non-current financial investments Loans and receivables Amortised cost 47 47 - Available for sale Fair value through profit or loss 397 397 - Fair value option Fair value through profit or loss 2,397 2,397 - Prepayments and other financial receivables Loans and receivables Amortised cost 723 723 - Non-financial assets Non-financial assets 188 188 - Trade and other receivables Loans and receivables Amortised cost 8,560 8,571 11 Non-financial assets Non-financial assets 865 865 - Current derivative financial instruments Held for trading Fair value through profit or loss 159 159 - Current financial investments Loans and receivables Amortised cost 4,085 4,085 - Held for trading Amortised cost 3,649 3,639 (10) Fair value option Fair value through profit or loss 714 714 - Cash and cash equivalents Loans and receivables Amortised cost 2,917 2,917 - Held for trading Fair value through profit or loss 381 381 - Held for trading Amortised cost 1,092 1,091 (1) Total 27,778 27,778 - There are no changes related to classification of Equinor ’s liabilities following the implementation of IFRS 9. Portions of Equinor ’s cash equivalents and current financial investments tied to liquidity management, which under IAS 39 are classified as held for trading and reflected at fair value through profit and loss, will under IFRS 9 be measured at amortised cost, based on an evaluation of the contractual terms and the business model applied. The impact of the change is immaterial. For certain finan cial assets currently classified as Available for sale (AFS), changes in fair value which under IAS 39 are reflected in OCI, will be reflected in profit and loss under IFRS 9. As a result, fair value loss of USD 64 million that had been accumulated in the available-for-sale financial assets reserve were expensed in the statement of income as an implementation effect. No significant changes were made for Equinor ’s expected loss recognition process to satisfy IFRS 9’s financial asset impairment requirements. Credit risk related to financial assets measured at amortised cost is immaterial. IFRS 15 Revenue from Contracts with Customers IFRS 15 covers the recognition of revenue in the financial statements and related disclosure, and has replaced existing revenue recognition guidance, including IAS 18 Revenue. Equinor has implemented IFRS 15 retrospectively, with the cumulative effect recognised at the date of initial application. The impact on Equinor’s equity is immaterial. As allowed by the standard, prior periods have not been restated. Consequently, comparative figures for the years 2017 and 2016 included in notes to these Consolidated financial statements and affected by the IFRS 15 implementation have also not been restated. Total revenues and other income in the Consolidated statement of income has not been impacted materially by the im plementation of IFRS 15. IFRS 15 requires identification of the performance obligations for the transfer of goods and services in each contract with customers. Revenue is recognised upon satisfaction of the performance obligations for the amounts that re flect the consideration to which Equinor expects to be entitled in exchange for those goods and services. Reference is made to n ote 2 Significant accounting policies for a further description of Equinor’s policies for revenue accounting, including elements categori s ed as other revenue, and for the considerations made under IFRS 15 concerning the accounting for Equinor’s sale of the SDFI’s natural gas and crude oil. With effect from 1 January 2018, Equinor has presented ‘Revenue from contracts with customer s’ and ‘Other revenue’ as a single caption, Revenues, in the Consolidated statement of income. Reference is made to n ote 3 Segments for details concerning elements and amounts included under revenue from contracts with customers and other revenue, respecti vely. In addition, the impact of certain commodity-based earn-out and contingent consideration agreements are now presented under 'Other income'. These elements were previously presented within Revenues. Change in Cash flow presentation – restatement of comparative periods Equinor has changed its presentation of certain elements related to derivatives, non-cash currency effects and working capital items in the Consolidated statement of cash flows. The presentation was changed to better reflect the cash impact of the different items within operating, investing and financing activities. The changes impacts the classification of cash flow items within cash flows provided by operating activities and reclassification of cash flow elements relating to foreign exchange derivatives from ope rating activities to investing and financing activities. Changes to classification of foreign currency derivatives Equinor applies foreign currency derivatives to hedge currency exposure related financial investments and long-term debt in foreign currenci es. Cash receipts and payments related to these derivatives has previously been classified as an operating cash flow together with cash flows from other derivative positions. To better align the cash receipt and payments from foreign currency derivatives w ith the cash flows related to the underlying hedged items, the cash receipts and payments from these derivatives have been reclassified from an operating cash flow to an investing or financing cash flow depending on the nature of the hedged item. Changes t o classification of non-cash currency effects Non-cash currency exchange gains and losses and currency translation effects previously presented as part of the individual line items within Cash flows provided by operating activities have been reclassified i nto the line item Gain/loss on foreign currency transactions and balances. This to better distinguish changes in items relating to operating activities, i.e. decrease/increase in working capital, from the balance sheet impact of non-cash currency effects. Changes to classification related to working capital items Certain items that previously has been presented as part of change in working capital has been reclassified to other items related to operating activities if the nature of the item is non-cash pro visions. CONSOLIDATED STATEMENT OF CASH FLOWS 2017 2017 2017 (in USD million) Note as reported changes in presentation as restated Income/(loss) before tax 13,420 13,420 Depreciation, amortisation and net impairment losses 10 8,644 8,644 Exploration expenditures written off 11 (8) (8) (Gains) losses on foreign currency transactions and balances (453) 326 (127) (Gains) losses on sales of assets and businesses 4 395 395 (Increase) decrease in other items related to operating activities (391) (493) (884) (Increase) decrease in net derivative financial instruments 26 (596) 615 19 Interest received 282 (134) 148 Interest paid (622) (622) Cash flows provided by operating activities before taxes paid and working capital items 20,671 314 20,985 Taxes paid (5,766) (5,766) (Increase) decrease in working capital (542) 125 (417) Cash flows provided by operating activities 14,363 439 14,802 Cash used in business combinations 4 0 0 Capital expenditures and investments (10,755) (10,755) (Increase) decrease in financial investments 592 592 (Increase) decrease in derivative financial instruments (439) (439) (Increase) decrease in other items interest bearing 79 79 Proceeds from sale of assets and businesses 4 406 406 Cash flows used in investing activities (9,678) (439) (10,117) New finance debt 18 0 0 Repayment of finance debt (4,775) (4,775) Dividend paid 17 (1,491) (1,491) Net current finance debt and other 444 444 Cash flows provided by (used in) financing activities 18 (5,822) (5,822) Net increase (decrease) in cash and cash equivalents (1,137) (1,137) Effect of exchange rate changes on cash and cash equivalents 436 436 Cash and cash equivalents at the beginning of the period (net of overdraft) 16 5,090 5,090 Cash and cash equivalents at the end of the period (net of overdraft) 16 4,390 4,390 CONSOLIDATED STATEMENT OF CASH FLOWS 2016 2016 2016 (in USD million) Note as reported changes in presentation as restated Income/(loss) before tax (178) (178) Depreciation, amortisation and net impairment losses 10 11,550 11,550 Exploration expenditures written off 11 1,800 1,800 (Gains) losses on foreign currency transactions and balances (137) 257 120 (Gains) losses on sales of assets and businesses 4 (110) (110) (Increase) decrease in other items related to operating activities 1,076 (199) 877 (Increase) decrease in net derivative financial instruments 26 1,307 (109) 1,198 Interest received 280 (146) 134 Interest paid (548) (548) Cash flows provided by operating activities before taxes paid and working capital items 15,040 (197) 14,843 Taxes paid (4,386) (4,386) (Increase) decrease in working capital (1,620) (19) (1,639) Cash flows provided by operating activities 9,034 (216) 8,818 Capital expenditures and investments (12,191) (12,191) (Increase) decrease in financial investments 877 877 (Increase) decrease in derivative financial instruments 216 216 (Increase) decrease in other items interest bearing 107 107 Proceeds from sale of assets and businesses 4 761 761 Cash flows used in investing activities (10,446) 216 (10,230) New finance debt 18 1,322 1,322 Repayment of finance debt (1,072) (1,072) Dividend paid 17 (1,876) (1,876) Net current finance debt and other (333) (333) Cash flows provided by (used in) financing activities 18 (1,959) (1,959) Net increase (decrease) in cash and cash equivalents (3,371) (3,371) Effect of exchange rate changes on cash and cash equivalents (152) (152) Cash and cash equivalents at the beginning of the period (net of overdraft) 16 8,613 8,613 Cash and cash equivalents at the end of the period (net of overdraft) 16 5,090 5,090 Change in accounting for lifting imbalances Equinor voluntarily changed its policy for recognition of revenue from the production of oil and gas properties in which Equinor shares an interest with other companies. Prior to 2018, Equinor recognised revenue on the basis of volumes lifted and sold to customers during the period (the sales method). Under the new method, during 2018 Equinor has recognised revenues according to Equinor’s ownership in producing fields, where the accounting for the imbalan ces is presented as Other revenue. This voluntary change in policy has been made because it better reflects Equinor’s operational performance, and at the time of the decision also increased comparability with the financial reporting of Equinor’s peers. The change in policy affects the timing of revenue recognition from oil and gas production; however, the implementation impact recognised in the first quarter of 2018 was immaterial. Equinor’s equity as at 1 January 2018 has consequently not been adjusted upo n the change in policy, and comparative figures have not been restated . For information on the method to be applied by Equinor in accounting for lifting imbalances as of 1 January 2019, reference is made to n ote 2 Significant accounting policies. |
Condensed consolidated financia
Condensed consolidated financial information related to guaranteed debt securities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of condensed financial information [abstract] | |
Disclosure of condensed financial information related to guaranteed debt securities [text block] | 2 8 Condensed consolidated financial information related to guaranteed debt securities Equinor Energy AS, a 100% owned subsidiary of Equinor ASA, is the co-obligor of certain existing debt securities of Equinor ASA 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, jo intly and severally with Equinor ASA, the payment and covenant obligations for these US regis tered debt securities. In the future, Equinor ASA may from time to time issue future US registered debt securities for which Equinor Energy AS will be the co-obligor or guarantor. The following financial information on a condensed consolidat ed basis provid es financial information about Equinor ASA, as issuer , and Equinor Energy AS, as co-obligor and guarantor, and all other subsidiaries as required by SEC Rule 3-10 of Regulation S-X. The condensed consolidat ed information is prepared in accordance with Equi nor 's IFRS accounting policies as described in note 2 Significant accounting policies , except that investments in subsidiaries and jointly controlled entities are accounted for using the equity method as required by Rule 3-10. The following is condensed c onsolidat ed financial information for the full year 201 8, 201 7 and 2016, and as of 31 December 201 8 and 201 7 . CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2018 (in USD million) Revenues and other income 51,567 25,365 29,374 (27,004) 79,301 Net income/(loss) from equity accounted companies 7,832 1,065 262 (8,868) 291 Total revenues and other income 59,399 26,430 29,636 (35,872) 79,593 Total operating expenses (51,596) (10,138) (24,862) 27,140 (59,456) Net operating income/(loss) 7,803 16,292 4,774 (8,732) 20,137 Net financial items (1,300) (274) (505) 817 (1,263) Income/(loss) before tax 6,503 16,018 4,269 (7,916) 18,874 Income tax 219 (10,719) (786) (49) (11,335) Net income/(loss) 6,722 5,299 3,483 (7,965) 7,538 Other comprehensive income/(loss) (867) (334) (620) 140 (1,681) Total comprehensive income/(loss) 5,855 4,965 2,863 (7,825) 5,857 CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2017 (in USD million) Revenues and other income 39,750 20,579 22,204 (21,535) 60,999 Net income/(loss) from equity accounted companies 5,051 (401) 33 (4,495) 188 Total revenues and other income 44,801 20,178 22,237 (26,029) 61,187 Total operating expenses (39,570) (9,217) (20,022) 21,392 (47,416) Net operating income/(loss) 5,232 10,961 2,216 (4,637) 13,771 Net financial items 311 (378) 439 (724) (351) Income/(loss) before tax 5,543 10,583 2,655 (5,361) 13,420 Income tax (230) (8,094) (539) 40 (8,822) Net income/(loss) 5,314 2,489 2,116 (5,321) 4,598 Other comprehensive income/(loss) 1,017 355 878 (509) 1,741 Total comprehensive income/(loss) 6,330 2,843 2,995 (5,830) 6,339 CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2016 (in USD million) Revenues and other income 31,580 15,405 15,472 (16,464) 45,993 Net income/(loss) from equity accounted companies (2,726) (3,987) 26 6,567 (119) Total revenues and other income 28,854 11,418 15,498 (9,898) 45,873 Total operating expenses (31,784) (10,989) (19,364) 16,344 (45,793) Net operating income/(loss) (2,930) 429 (3,865) 6,446 80 Net financial items 728 (560) (115) (311) (258) Income/(loss) before tax (2,202) (131) (3,980) 6,135 (178) Income tax (407) (2,392) 97 (23) (2,724) Net income/(loss) (2,608) (2,523) (3,884) 6,113 (2,902) Other comprehensive income/(loss) (671) 153 (280) 441 (357) Total comprehensive income/(loss) (3,279) (2,370) (4,163) 6,553 (3,259) CONDENSED CONSOLIDATED BALANCE SHEET Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group At 31 December 2018 (in USD million) ASSETS Property, plant, equipment and intangible assets 502 33,309 41,140 (17) 74,934 Equity accounted companies 46,828 23,668 1,697 (69,330) 2,863 Other non-current assets 2,741 381 5,572 (39) 8,655 Non-current receivables from subsidiaries 25,524 (0) 22 (25,547) 0 Total non-current assets 75,595 57,358 48,432 (94,933) 86,452 Current receivables from subsidiaries 2,379 6,529 13,215 (22,123) 0 Other current assets 13,082 927 4,780 (288) 18,501 Cash and cash equivalents 6,287 27 1,242 0 7,556 Total current assets 21,747 7,483 19,237 (22,411) 26,056 Total assets 97,342 64,841 67,668 (117,343) 112,508 EQUITY AND LIABILITIES Total equity 42,970 26,706 42,838 (69,524) 42,990 Non-current liabilities to subsidiaries 20 13,847 11,679 (25,547) (0) Other non-current liabilities 28,416 17,033 7,536 (71) 52,914 Total non-current liabilities 28,436 30,880 19,216 (25,618) 52,914 Other current liabilities 6,955 6,511 3,216 (78) 16,605 Current liabilities to subsidiaries 18,981 744 2,398 (22,123) (0) Total current liabilities 25,936 7,256 5,614 (22,201) 16,605 Total liabilities 54,372 38,135 24,830 (47,819) 69,519 Total equity and liabilities 97,342 64,841 67,668 (117,343) 112,508 CONDENSED CONSOLIDATED BALANCE SHEET Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group At 31 December 2017 (in USD million) ASSETS Property, plant, equipment and intangible assets 541 32,956 38,786 (25) 72,258 Equity accounted companies 42,625 21,593 1,311 (62,978) 2,551 Other non-current assets 3,851 346 4,989 (84) 9,102 Non-current receivables from subsidiaries 25,896 (0) 22 (25,918) 0 Total non-current assets 72,914 54,895 45,107 (89,005) 83,911 Current receivables from subsidiaries 2,448 2,615 14,215 (19,278) 0 Other current assets 16,165 923 5,582 (1,240) 21,430 Cash and cash equivalents 3,759 27 603 0 4,390 Total current assets 22,372 3,566 20,400 (20,517) 25,820 Assets classified as held for sale 0 0 1,369 0 1,369 Total assets 95,286 58,460 66,876 (109,523) 111,100 EQUITY AND LIABILITIES Total equity 39,861 20,813 42,634 (63,422) 39,885 Non-current liabilities to subsidiaries 19 14,682 11,263 (25,964) 0 Other non-current liabilities 29,070 16,145 7,104 (122) 52,197 Total non-current liabilities 29,090 30,827 18,367 (26,086) 52,198 Other current liabilities 9,242 5,879 4,632 (736) 19,017 Current liabilities to subsidiaries 17,094 941 1,243 (19,278) 0 Total current liabilities 26,335 6,821 5,874 (20,014) 19,017 Total liabilities 55,425 37,648 24,242 (46,100) 71,214 Total equity and liabilities 95,286 58,460 66,876 (109,523) 111,100 CONDENSED CONSOLIDATED CASH FLOW STATEMENT Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2018 (in USD million) Cash flows provided by (used in) operating activities 4,565 12,421 7,224 (4,516) 19,694 Cash flows provided by (used in) investing activities 1,046 (8,281) (6,649) 2,672 (11,212) Cash flows provided by (used in) financing activities (2,840) (4,140) 112 1,844 (5,024) Net increase (decrease) in cash and cash equivalents 2,771 0 687 0 3,458 Effect of exchange rate changes on cash and cash equivalents (243) 0 (49) 0 (292) Cash and cash equivalents at the beginning of the period (net of overdraft) 3,759 27 603 0 4,390 Cash and cash equivalents at the end of the period (net of overdraft) 6,287 27 1,242 0 7,556 Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2017 (in USD million) (restated*) Cash flows provided by (used in) operating activities 339 9,506 5,242 (286) 14,802 Cash flows provided by (used in) investing activities 3,227 (9,070) (4,718) 444 (10,117) Cash flows provided by (used in) financing activities (4,459) (478) (727) (158) (5,822) Net increase (decrease) in cash and cash equivalents (892) (42) (203) 0 (1,137) Effect of exchange rate changes on cash and cash equivalents 377 23 36 0 436 Cash and cash equivalents at the beginning of the period (net of overdraft) 4,274 46 770 0 5,090 Cash and cash equivalents at the end of the period (net of overdraft) 3,759 27 603 0 4,390 Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2016 (in USD million) (restated*) Cash flows provided by (used in) operating activities 3,158 7,262 1,517 (3,119) 8,818 Cash flows provided by (used in) investing activities (2,966) (6,785) (5,349) 4,869 (10,230) Cash flows provided by (used in) financing activities (3,308) (516) 3,616 (1,750) (1,959) Net increase (decrease) in cash and cash equivalents (3,116) (39) (216) 0 (3,371) Effect of exchange rate changes on cash and cash equivalents (81) (2) (69) 0 (152) Cash and cash equivalents at the beginning of the period (net of overdraft) 7,471 87 1,056 0 8,613 Cash and cash equivalents at the end of the period (net of overdraft) 4,274 46 770 0 5,090 * Related to a change in accounting policies, see note 27 Changes in accounting policies for more information |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies [Abstract] | |
Statement of compliance [text block] | Statement of compliance The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and with IFRSs as issued by the International Accounting Standards Board (IASB), effective at 31 December 2018. |
Basis of preparation [text block] | Basis of preparation The financial statements are prepared on the historical cost basis with some exceptions, as detailed in the accounting pol icies set out below. The policies described in the main part of this note are the ones in effect at the balance sheet date, and these policies have been applied consistently to all periods presented in these Consolidated financial statements , except as oth erwise noted in disclosure related to the impact of policy changes following the adoption of new accounting standards in 2018. Certain amounts in the comparable years have been restated to conform to current year presentation. The subtotals and totals in s ome of the tables may not equal the sum of the amounts shown due to rounding. Operating related expenses in the Consolidated statement of income are presented as a combination of function and nature in conformity with industry practice. Purchases [net o f inventory variation] and Depreciation, amortisation and net impairment losses are presented in separate lines based on their nature, while Operating expenses and Selling, general and administrative expenses as well as Exploration expenses are presented o n a functional basis. Significant expenses such as salaries, pensions, etc. are presented by their nature in the notes to the Consolidated financial statements. |
Changes in significant accounting policies in the current period [text block] | Changes in significant accounting policies in the current period With effect from 1 Januar y 2018, Equinor implemented IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. As of the same date, Equinor voluntarily changed its policy for recognition of revenue from the production of oil and gas properties in which Equino r shares an interest with other companies, as well as its policy for presentation of certain elements related to derivatives, non-cash currency effects and working capital items in the statement of cash flows. Reference is made to Note 27 Changes in accoun ting policies for further information about these policy changes. |
Basis of consolidation [text block] | Basis of consolidation The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries and include Equinor’s interest in jointly controlled an d equity accounted investments . |
Subsidiaries [text block] | Subsidiaries Entities are determined to be controlled by Equinor, and consolidated in Equinor's financial statements, when Equinor has power over the entity, ability to use that power to affect the entity's returns, and e xposure to, or rights to, variable returns from its involvement with the entity. All intercompany balances and transactions, including unrealised profits and losses arising from Equinor's internal transactions, have been eliminated in full. Non-contr olling interests are presented separately within equity in the balance sheet. |
Investment in associates and joint ventures [text block] | Joint operations and similar arrangements, joint ventures and associates A joint arrangement is present where Equinor holds a long-term interest which is jointly controlled by Equinor and one or more other venturers under a contractual arrangement in which decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are classified as either joint operations or joi nt ventures. The parties to a joint operation have rights to the assets and obligations for the liabilities, relating to their respective share of the joint arrangement. In determining whether the terms of contractual arrangements and other facts and ci rcumstances lead to a classification as joint operations, Equinor considers the nature of products and markets of the arrangements and whether the substance of their agreements is that the parties involved have rights to substantially all the arrangement's assets. Equinor accounts for the assets, liabilities, revenues and expenses relating to its interests in joint operations in accordance with the principles applicable to those particular assets, liabilities, revenues and expenses. Acquisition of ownersh ip shares in joint operations in which the activity constitutes a business, are accounted for in accordance with the principles of business combinations. Those of Equinor's exploration and production licence activities that are within the scope of IFRS 1 1 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 consen t 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 o utside the scope of IFRS 11, and these activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently there are no significant differences in Equinor's accounting for unincorporated licence arrangements whether in scope of IFRS 11 or not. Joint ventures, in which Equinor has rights to the net assets, are accounted for using the equity method. 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, as well as Equinor’s participation in joint arrangements that are joint ventures, are classified as Equity accounted investments. These currently include the majority of Equinor’s investments in the New Energy Solutions area. Under the equity method, the investment is carried on the 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. Goodwill may arise as the surplus of the cost of investment over Equinor’s share of the net fair value of the identifiable assets and liabilities of the joint venture or associate. Such goodwill is recorded within the corresponding investment. 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. Where material differences in accounting policies arise, adjustments are made to the financial statements of equity -accounted entities in order to bring the accounting policies used into line with Equinor’s. Material unrealised gains on transactions between Equinor and its equity-accounted entities are eliminated to the extent of Equinor’s interest in each equity-accou nted entity. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Equinor assesses investments in equity-accounted entities for impairment whenever events or changes in circumstances indi cate that the carrying value may not be recoverable. 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 reduce the c osts in the Consolidated statement of income. 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 Consol idated balance sheet. |
Reportable segments [text block] | Reportable segments Equinor identifies its business areas on the basis of those components of Equinor that are regularly reviewed by the chief operating decision maker, Equinor's corporate executive committee (CEC). Equinor combine s business areas when these satisfy relevant aggregation criteria. Equinor's accounting policies as described in this note also apply to the specific financial information included in reportable segments-related disclosure in these Consolidated financia l statements. |
Foreign currency translation [text block] | Foreign currency translation In preparing the financial statements of the individual entities, transactions in foreign currencies (those other than functional currency) are translated at the foreign exchange rate at the dates of the transa ctions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the foreign exchange rate at the balance sheet date. Foreign exchange differences arising on translation are recognised in the Consolidat ed statement of income as foreign exchange gains or losses within net financial items. Foreign exchange differences arising from the translation of estimate-based provisions, however, generally are accounted for as part of the change in the underlying esti mate and as such may be included within the relevant operating expense or income tax sections of the Consolidated statement of income depending on the nature of the provision. Non-monetary assets that are measured at historical cost in a foreign currency a re translated using the exchange rate at the date of the transactions . Loans from Equinor ASA to subsidiaries with other functional currencies than the parent company, and for which settlement is neither planned nor likely in the foreseeable future, are co nsidered part of the parent company’s net investment in the subsidiary . Foreign exchange differences arising on such loans are recognised in Other comprehensive income (OCI) in the Consolidated financial statements. |
Presentation currency [text block] | Presentation currency For the purpose of the Consolidated financial statements, the statement of income, the balance sheet and the cash flows of each entity are translated from the functional currency into the presentation currency, USD. The assets and liabilities of entities whose functional currencies are other than USD, are translated into USD at the foreign exchange rate at the balance sheet date. The revenues and expenses of such entities are translated using the foreign exchange rates on the dates of the transactions. Foreign exchange di fferences arising on translation from functional currency to presentation currency are recognised separately in OCI. The cumulative amount of such translation differences relating to an entity and previously recognised in OCI, is reclassified to the Consol idated statement of income and reflected as a part of the gain or loss on disposal of that entity. |
Business combinations [text block] | Business combinations 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 under the relevant IFRS criteria to establish whether the transaction represents a business combination or an asset purchase. Depending on the specific facts, acquisitions of exploration and evaluation licences for which a development decision has not yet been made, have largely been concluded to represent asset purchases. Business combinations, except for transactions between entities under common control, are accounted for using the acquisition method of accounting. Th e acquired identifiable tangible and intangible assets, liabilities and contingent liabilities are measured at their fair values at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative expenses. |
Revenue recognition [text block] | R evenue 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 contracts with customers is recognis ed upon satisfaction of the performance obligations for the transfer of goods and services in each such contract. The revenue amounts that are recognised reflect the consideration to which Equinor expects to be entitled in exchange for those goods and serv ices. Revenue from the sale of crude oil, natural gas, petroleum products and other merchandise is recognised when a customer obtains control of those products, which 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, sales are completed over time in line with the delivery of the actual physical quantities. Revenue is presented net of customs, excise taxes and royalties paid in-kind on petroleum products. Sales and purchases of physical commodities, which are not settled net, are presented on a gross basis as revenues from contracts with customers and purchases [net of inventory variation] in the statement of in come. Other revenue Items representing a form of revenue, or which are closely connected with revenue transactions, are presented as Other revenue if they do not qualify as revenue from contracts with customers. Other revenue includes taxes paid in - kind under certain production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments connected with sales contracts or revenue-related risk management. Revenues from the production of oil and gas prop erties in which Equinor shares an interest with other companies are recognised on the basis of Equinor’s ownership in producing fields. Adjustments for imbalances (overlift or underlift) between oil and gas production and sales are presented as Other reven ue, and reflected at fair value in the balance sheet as short-term receivables or payables. |
Transactions with the Norwegian State [text block] | 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 SDFI. All purchases and sales of the SDFI's oil production are classified as purchases [net of inventory variation] and revenues from contracts with customers, respectivel y. Equinor sells, in its own name, but for the Norwegian State's account and risk, the State's production of natural gas. These sales and related expenditures refunded by the Norwegian State are presented net in the Consolidated financial statements. |
Employee benefits [text block] | Emp loyee benefits Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the period in which the associated services are rendered by employees of Equinor. |
Research and development [text block] | Research and development Equinor undertakes resear ch and development both on a funded basis for licence holders and on an unfunded basis for projects at its own risk. Equinor's own share of the licence holders' funding and the total costs of the unfunded projects are considered for capitalisation under th e applicable IFRS requirements. Subsequent to initial recognition, any capitalised development costs are reported at cost less accumulated amortisation and accumulated impairment losses. |
Income tax [text block] | Income tax Income tax in the Consolidated statement of income comp rises current and deferred tax expense. Income tax is recognised in the Consolidated statement of income except when it relates to items recognised in OCI. Current tax consists of the expected tax payable on the taxable income for the year and any adjus tment to tax payable for previous years. Uncertain tax positions and potential tax exposures are analysed individually, and the best estimate of the probable amount for liabilities to be paid (unpaid potential tax exposure amounts, including penalties) and for assets to be received (disputed tax positions for which payment has already been made) in each case is recognised within current tax or deferred tax as appropriate. Interest income and interest expenses relating to tax issues are estimated and recogni sed in the period in which they are earned or incurred, and are presented within net financial items in the Consolidated statement of income. Uplift benefit on the NCS is recognised when the deduction is included in the current year tax return and impacts taxes payable. 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, subject to the initial recognition exemption. The amount of deferred tax is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asse t is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. In order for a deferred tax asset to be recognised based on future taxable income, convincing evidence is required, taking into account the existence of contracts, production of oil or gas in the near future based on volumes of proved reserves, observable prices in active markets, expected volatility of trading profits, expected currency rate movements and similar fact s and circumstances. A deferred tax liability and a corresponding deferred tax asset are recogni s ed when an asset retirement obligation is initially reflected in the accounts. |
Oil and gas exploration, evaluation and development expenditures [text block] | 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 and to drill and equip exploratory wells are capitalised as exploration and evaluation expenditures within i ntangible assets until the well is complete and the results have been evaluated, or there is any other indicator of a potential impairment. Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangi ble assets during the evaluation phase of the find. 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 previou sly capitalised costs are evaluated for derecognition or tested for impairment. Geological and geophysical costs and other exploration and evaluation expenditures are expensed as incurred. Capitalised exploration and evaluation expenditures, including e xpenditures to acquire mineral interests in oil and gas properties, related to offshore wells that find proved reserves are transferred from exploration expenditures and acquisition costs - oil and gas prospects (intangible assets) to property, plant and e quipment at the time of sanctioning of the development project. For onshore wells where no sanction is required, the transfer of acquisition cost – oil and gas prospects (intangible assets) 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 made arrangements to fund a portion of the selling partner's (farmor'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 dispositions (farm-out arrangements) on a historical cost basis with no gain or loss recognition. A gain related to a post-tax based disposition of assets on the NCS includes the release of tax liabilities previously computed and recognised related to the assets in question. The resulting gross gain is recognised in full in other income in the Consolidated statement of income. Consideration from the sale of an undeveloped part of an onshore asset reduces the carrying amount of the asset. The part of the consideration that exceeds the ca rrying amount of the asset, if any, is reflected in the Consolidated statement of income under other income. Exchanges (swaps) of exploration and evaluation assets are accounted for at the carrying amounts of the assets given up with no gain or loss reco gnition. |
Property, plant and equipment [text block] | Property, plant and equipment Property, plant and equipment is reflected at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs direct ly attributable to bringing the asset into operation, the initial estimate of an asset retirement obligation, if any, 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. P roperty, plant and equipment include costs relating to expenditures incurred under the terms of 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. Exchanges of assets are measured at the fair value of the asset given up, unless the fair value of neither the asset received nor the asset given up is measurable with sufficient reliability. Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associate d with the item will flow to Equinor, the expenditure is capitalised. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and carried out at recurring intervals exceeding one year, are capitalised and amo rtised 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 i nfrastructure 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 cos ts, when designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the unit of production method based on proved reserves expected to be recovered from the area during the concession or co ntract period. Depreciation of production wells uses the unit of production method based on proved developed reserves, and capitalised acquisition costs of proved properties are depreciated using the unit of production 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 o f 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 relati on 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 de-recognised upon disposal or when no future economic benefits are expected to aris e from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in other income or operating expenses, respective ly, in the period the item is de-recognised. |
Assets classified as held for sale [text block] | Assets classified as held for sale Non-current assets are classified separately as held for sale in the balance sheet when their carrying amount will be recovered through a sale transaction rather than throug h continuing use. This condition is met only when the sale is highly probable, the asset is available for immediate sale in its present condition, and management is committed to the sale, which should be expected to qualify for recognition as a completed s ale within one year from the date of classification. Liabilities directly associated with the assets classified as held for sale, and expected to be included as part of the sale transaction, are correspondingly also classified separately. Once classified a s held for sale, property, plant and equipment and intangible assets are not subject to depreciation or amortisation. The net assets and liabilities of a disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. |
Leases [text block] | Leases Leases for which Equinor assumes substantially all the risks and rewards of ownership are reflected as finance leases. When an asset leased by a joint operation or similar arrangement to which Equinor is a part y qualifies as a finance lease, or when such an asset is leased by Equinor as operator directly on behalf of a joint operation or similar arrangement, Equinor reflects its proportionate share of the leased asset and related obligations. Finance leases are classified in the Consolidated balance sheet within property, plant and equipment and finance debt. All other leases are classified as operating leases, and the costs are charged to the relevant operating expense related caption on a straight-line basis ov er the lease term, unless another basis is more representative of the benefits of the lease to Equinor. Equinor distinguishes between lease and capacity contracts. Lease contracts provide the right to use a specific asset for a period of time, while cap acity contracts confer on Equinor the right to and the obligation to pay for certain volume capacity availability related to transport, terminal use, storage, etc. Such capacity contracts that do not involve specified assets or that do not involve substant ially all the capacity of an undivided interest in a specific asset are not considered by Equinor to qualify as leases for accounting purposes. Capacity payments are reflected as operating expenses in the Consolidated statement of income in the period for which the capacity contractually is available to Equinor. |
Intangible assets including goodwill [text block] | Intangible assets including goodwill Intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses. 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, its intangible exploration and evaluation assets are reclassified to property, plant and equipment. Goodwill is initially measured at the excess of the aggregate of the considera tion transferred and the amount recognised for any non-controlling interest over the fair value of the identifiable assets acquired and liabilities assumed in a business combination at the acquisition date. Goodwill acquired is allocated to each cash gener ating 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 losses. In acquisitions made on a post-tax basis according to the rules o n the NCS, a provision for deferred tax is reflected in the accounts based on the difference between the acquisition cost and the transferred tax depreciation basis. The offsetting entry to such deferred tax amounts is reflected as goodwill, which is alloc ated to the CGU or group of CGUs on whose tax depreciation basis the deferred tax has been computed. |
Financial assets [text block] | Financial assets Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions of the asset. For ad ditional information on fair value methods, refer to the Measurement of fair values section below. The subsequent measurement of the financial assets depends on which category they have been classified into at inception. At initial recognition, Equinor classifies its financial assets into the following three categories: Financial investments at amortised cost, at fair value through profit or loss, and at fair value through other comprehensive income based on an evaluation of the contractual terms and the business model applied. Certain long-term investments in other entities, which do not qualify for the equity method or consolidation, are included as at fair value through profit or loss. Cash and cash equivalents include cash in hand, current balances with banks and similar institutions, and short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in fair value and have a maturity of three months or less from the acquisi tion date. Short-term highly liquid investments with original maturity exceeding 3 months are classified as current financial investments. Cash and cash equivalents and current financial investment are accounted for at amortised cost or at fair value throu gh profit or loss. 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. Equinor’s financial asset credit risk is measured and recognised based on expected losses. 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 wit h 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 C onsolidated 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, in which case they are shown net in the balance sheet. |
Inventories [text block] | Inventories Commodit y inventories 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. Inventories of drilling and spar e parts are reflected according to the weighted average method. |
Impairment [text block] | Impairment Impairment of property, plant and equipment and intangible assets other than goodwill Equinor assesses individual assets or groups of assets for impairment whenever events or ch anges in circumstances indicate that the carrying value of an asset may not be recoverable. Assets are grouped into cash generating units (CGUs) which are the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other groups of assets. Normally, separate CGUs are individual oil and gas fields or plants. Each unconventional asset play is considered a single CGU when no cash inflows from parts of the play can be reliably identified as being la rgely 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. In Equinor's line of business, judgement is involved in de termining 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 the division of one original CGU into several. In assessi ng whether a write-down of the carrying amount of a potentially impaired asset is required, the asset's carrying amount is compared to the recoverable amount. The recoverable amount of an asset is the higher of its fair value less cost of disposal and its value in use. Fair value less cost of disposal is determined based on comparable recent arm’s length market transactions, or based on Equinor’s estimate of the price that would be received for the asset in an orderly transaction between market participants . Such fair value estimates are mainly based on discounted cash flow models, using assumed market participants’ assumptions, but may also reflect market multiples observed from comparable market transactions or independent third-party valuations. Value in use is determined using a discounted cash flow model. The estimated future cash flows applied in establishing value in use are based on reasonable and supportable assumptions and represent management's best estimates of the range of economic conditions tha t will exist over the remaining useful life of the assets, as set down in Equinor's most recently approved long-term forecasts. Updates of assumptions and economic conditions in establishing the long-term forecasts are reviewed by corporate management on r egular 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 5 years, the forecasts reflect expected production volumes, and the related ca sh 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. In performing a value-in-use-based impairment test, the estim ated future cash flows are adjusted for risks specific to the asset and discounted using a real post-tax discount rate which is based on Equinor's post-tax weighted average cost of capital (WACC). 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. Unproved oil and gas properties are assessed for impairment when facts and circumst ances 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 e xploratory finds. 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 are no firm plans for future drilling in the licen c e. An assessment is made at each re porting date as to whether there is any indication that previously recognised impairment losses may no longer be relevant or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognised impairment loss is r eversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That incr eased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Impairment losses and reversals of impairment losses are presented in the Consolidated statement of income as Exploration expenses or Depreciation, amortisation and net impairment losses, on the basis of their nature as either exploration assets (intangible exploration assets) or develo pment and producing assets (property, plant and equipment and other intangible assets), respectively. |
Impairment of goodwill [text block] | Impairment of goodwill 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. Where the recoverable amount of the CGU, or group of units, is less than the carrying amount, an impairment l oss is recognised. When impairment testing goodwill originally recogni s ed 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 evaluations. Once recognised, impairments of goodwill are not reversed in future periods. |
Financial liabilities [text block] | 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 depends on which category they have been classified into. The categories applicable for Equinor are either financial liabilities at fair value through profit or loss or financial liabilities measured at amor tised cost using the effective interest method. The latter applies to Equinor's non-current bank loans and bonds. Financial liabilities are presented as current if the liability is due to be settled within 12 months after the balance sheet date, or if t hey are held for the purpose of being traded. Financial liabilities are de-recognised when the contractual obligations expire, are discharged or cancelled. Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised either in interest income and other financial items or in interest and other finance expenses within net financial items. |
Derivative financial instruments [text block] | Derivative financial instruments Equinor uses derivative financial instruments to manage certain exposures to fluctuations in fore ign 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 re-measured at fair value through profit and loss. The impact of commodity-based derivative financial instruments is recognised in the Consolidated statement of income under other revenues, as such derivative instruments are related to sales contracts or revenue-related risk management fo r all significant purposes. The impact of other 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 liab ilities expected to be recovered, 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 s hort term. Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, 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 are reflected in the s tatement of income as revenue from contracts with customers and purchases [net of inventory variation], respectively. This is applicable to a signifi cant number of contracts for the purchase or sale of crude oil and natural gas, which are recognised upon delivery. Derivatives embedded in host contracts which are not financial assets within the scope of IFRS 9 are recognised as separate derivatives a nd 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 ac tive 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. Where there is no active market for the commodity or other non-financial item in question, Equinor assesses th e characteristics of such a price related embedded derivative to be closely related to the host contract if the price formula is based on relevant indexations commonly used by other market participants. This applies to certain long-term natural gas sales a greements. |
Pension Liabilities [text block] | Pension liabilities 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 n otional 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 g enerally depends on many factors including length of service, retirement date and future salary levels. Equinor's proportionate share of multi-employer defined benefit plans are recognised as liabilities in the balance sheet to the extent that sufficient information is available and a reliable estimate of the obligation can be made. Equinor's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future be nefit 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 discount rate is the yield at the balance shee t date, reflecting the maturity dates approximating the terms of Equinor's obligations. The discount rate for the main part of the pension obligations has been established on the basis of Norwegian mortgage covered bonds, which are considered high quality corporate bonds. 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. The net interest related to defined benefit p lans is calculated by applying the discount rate to the opening present value of the benefit obligation and opening present value of the plan assets, adjusted for material changes during the year. The resulting net interest element is presented in the stat ement of income within Net financial items. The difference between estimated interest income and actual return is recognised in the Consolidated statement of comprehensive income. Past service cost is recognised when a plan amendment (the introduction o r withdrawal of, or changes to, a defined benefit plan) or curtailment (a significant reduction by the entity in the number of employees covered by a plan) occurs, or when recognising related restructuring costs or termination benefits. The obligation and related plan assets are re-measured using current actuarial assumptions, and the gain or loss is recognised in the statement of income. Actuarial gains and losses are recognised in full in the Consolidated statement of comprehensive income in the period in which they occur, while actuarial gains and losses related to provision for termination benefits are recognised in the Consolidated statement of income in the period in which they occur. Due to the parent company Equinor ASA's functional currency being USD, the significant part of Equinor's pension obligations will be payable in a foreign currency (i.e. NOK). As a consequence, actuarial gains and losses related to the parent company's pension obligation include the impact of exchange rate fluctuations. Contributions to defined contribution schemes are recognised in the statement of income in the period in which the contribution amounts are earned by the employees. Notional contribution plans, reported in the parent company Equinor ASA, are recognis ed as pension liabilities with the actual value of the notional contributions and promised return at reporting date. Notional contributions are recognised in the statement of income as periodic pension cost, while changes in fair value of notional assets a re reflected in the statement of income under Net financial items. Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor operated joint operations (licences) on an hours’ incurred basis and recognised in the stat ement of income based on the function of the cost. |
Onerous contracts [text block] | Onerous contracts Equinor recognises as provisions the net obligation under contracts defined as onerous. Contracts are deemed to be onerous if the unavoidable cost of meeting the obligations under the contract exceeds the economic benefits expected to be received in relation to the contract. A contract which forms an integral part of the operations of a CGU whose assets are dedicated to that contract, and for which the economic benefits cannot be reliab ly separated from those of the CGU, is included in impairment considerations for the applicable CGU. |
Asset retirement obligations (ARO) [text block] | Asset retirement obligations (ARO) Provisions for ARO costs 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. The amount recognised is the present value of the estimated future expenditures determ ined in accordance with local conditions and requirements. 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 risk-free rate based on the ap plicable currency and time horizon of the underlying cash flows, adjusted for a credit premium which reflects Equinor's own credit risk. 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 provisions are classified under provisions in the Consolidated balance sheet. When a provision for ARO cost is recognised, a corresponding amount is recognised to i ncrease the related property, plant and equipment and is subsequently depreciated as part of the costs of the facility or item of property, plant and equipment. Any change in the present value of the estimated expenditure is reflected as an adjustment to t he provision and the corresponding property, plant and equipment. When a decrease in the ARO provision related to a producing asset exceeds the carrying amount of the asset, the excess is recognised as a reduction of depreciation, amortisation and net impa irment losses in the Consolidated statement of income. When an asset has reached the end of its useful life, all subsequent changes to the ARO provision are recognised as they occur in operating expenses in the Consolidated statement of income. Removal pro visions associated with Equinor's role as shipper of volumes through third party transport systems are expensed as incurred. |
Measurement of fair values [text block] | 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 usi ng 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 techn iques, 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 obse rvable 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. |
Critical accounting judgements and key sources of estimation uncertainty | Critical accounti ng judgements and key sources of estimation uncertainty Critical judgements in applying accounting policies The following are the critical judgements, apart from those involving estimations (see below), that Equinor has made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in the financial statements: Revenue recognition - gross versus net presentation of traded SDFI volumes of oil and gas production As described under Transaction s with the Norwegian State above, Equinor markets and sells the Norwegian State's share of oil and gas production from the NCS. Equinor includes the costs of purchase and proceeds from the sale of the SDFI oil production in purchases [net of inventory vari ation] and revenues from contracts with customers, respectively. 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 volu mes, and although certain benefits from the sales subsequently flow to the State, Equinor purchases the crude oil volumes from the State and obtains substantially all the remaining benefits. On that basis, Equinor has concluded that it acts as principal in these sales. Equinor sells, in its own name, but for the Norwegian State's account and risk, the State's production of natural gas. These gas sales, and related expenditures refunded by the State, are shown net in Equinor's Consolidated financial statem ents. In making the judgement, 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 f low to the State. On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes. |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | Standards, amendments to standards, and interpretations of standards, issued but not yet adopted At the date of these Consolidated financial statements, the following standards, am endments to standards and interpretations of standards applicable to Equinor have been issued, but were not yet effective: |
Key sources of estimation uncertainty [text block] | Key sources of estimation uncertainty The preparation of the Consolidated financial statements requires that management make estimates and assumptions that affect reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumst ances, the result of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions ar e reviewed on an on-going basis considering the current and expected future market conditions. Equinor is exposed to a number of underlying economic factors which affect the overall results, such as liquids prices, natural gas prices, refining margins, foreign exchange rates and interest rates as well as financial instruments with fair values derived from changes in these factors. In addition, Equinor's results are influenced by the level of production, which in the short term may be influenced by, for i nstance, maintenance programmes. In the long term, the results are impacted by the success of exploration and field development activities. The matters described below are considered to be the most important in understanding the key sources of estimatio n uncertainty that are involved in preparing these Consolidated financial statements and the uncertainties that could most significantly impact the amounts reported on the results of operations, financial position and cash flows. Proved oil and gas reser ves Proved oil and gas reserves may materially impact the Consolidated financial statements, as changes in the proved reserves, for instance as a result of changes in prices, 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 ex isting economic conditions, operating methods and government regulations. Unless evidence indicates that renewal is reasonably certain, estimates of economically producible reserves only reflect the period before the contracts providing the right to operat e expire. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence within a reasonable time. Proved oil and gas reserves have been estimated by internal qualified professionals on the basis of 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 supplement al 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% pr obability). Reserves estimates are based on subjective judgements involving geological and engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and installed plant operating capacity. 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. The reliability of these estimates at any point in time depends on both the quality and availability of the technical and economic data and the efficiency of extracting and processing the hydrocarbons. An independent third party has evaluated Equ inor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates. Expected oil and gas reserves Expected oil and gas reserves may materially impact the Consolidated financial statements, as changes i n the expected reserves, for instance as a result of changes in prices, will impact asset retirement obligations and impairment testing of upstream assets, which in turn may lead to changes in impairment charges affecting operating income. 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. Recoverable oil and gas quantities are always uncertain, and the expected value is the weighted average, or statistical mean, of the possible outcomes. Expected reserves are therefore typically larger than proved reserves as defined by the SEC rules. Expected oil and gas reserves have been estimated by internal qual ified professionals on the basis of industry standards and classified in accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate, and are used for impairment testing purposes and for calculation of asset r etirement obligations. Reserves estimates are based on subjective judgements involving geological and engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors, installed plant operating capac ity and operating approval limits. The reliability of these estimates at any point in time depends on both the quality and quantity of the technical and economic data and the efficiency of extracting and processing the hydrocarbons. Such estimates are inhe rently less reliable in early field life or where the available data is limited following a recently implemented change in the method of production . Exploration and leasehold acquisition costs Equinor capitalises the costs of drilling exploratory wells pending determination of whether the wells have found proved oil and gas reserves. Equinor also capitalises leasehold acquisition costs and signature bonuses paid to obtain access to undeveloped oil and gas acreage. Judgements as to whether these expenditu res should remain capitalised, be de-recognised or written down in the period may materially affect the operating income for the period. Acquisition accounting Equinor applies the acquisition method for transactions involving business combinations, and a pplies the principles of the acquisition method when an interest or an additional interest is acquired in a joint operation which constitutes a business. Application of the acquisition method may require significant judgement in, among other matters, deter mining and measuring the full transaction consideration including contingent consideration elements, identifying all tangible and intangible assets acquired as well as liabilities assumed, establishing their fair values, determining deferred tax elements, and allocating the purchase price accordingly, including measurement and allocation of goodwill. The judgements applied in acquisition accounting may materially affect the financial statements both in the transaction period and in terms of future periods’ operating income. Impairment/reversal of impairment Equinor has significant investments in property, plant and equipment and intangible assets. Changes in the circumstances or expectations of future performance of an individual asset may be an indicator that the asset is impaired, requiring the carrying amount to be written down to its recoverable amount. Impairments are reversed if conditions for impairment are no longer present. Evaluating whether an asset is impaired or if an impairment should be reve rsed requires a high degree of judgement and may to a large extent depend upon the selection of key assumptions about the future. 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 or discount rate and uncertainty in asset specific factors such as reserve estimates and operational decisions impacting the production profile or activity levels for our oil and natural gas properties. When estimating the recove rable amount, the single most likely future cash flows, the point estimate, is the primary method applied to reflect uncertainties in timing and amount inherent in the assumptions used in the estimated future cash flows. For assumptions in which the expect ed probability distributions or outcome are expected to be significantly skewed the use of decision trees or simulation is applied. Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the relevant asset or CGU may exceed its recoverable amount, and at least annually. If, following evaluation, an exploratory well has not found proved reserves, the previously capitalised costs are tested for impairment. Subsequent to the initial evalu ation 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. Impairment of unsuccessful wells is reversed, a s applicable, to the extent that conditions for impairment are no longer present. Where recoverable amounts are based on estimated future cash flows, reflecting Equinor’s or market participants’ assumptions about the future and discounted to their pres ent value, the estimates involve complexity. Impairment testing requires long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, currency exchange rates and future output, discount rates and political and country risk among others, in order to establish relevant future cash flows. 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 assumptio ns, in determining other relevant factors such as forward price curves, in estimating production outputs and in determining the ultimate terminal value of an asset. Employee retirement plans When estimating the present value of defined benefit pension o bligations that represent a long-term liability in the Consolidated balance sheet, and indirectly, the period's net pension expense in the Consolidated statement of income, management make a number of critical assumptions affecting these estimates. Most no tably, assumptions made about the discount rate to be applied to future benefit payments and plan assets, the expected rate of pension increase and the annual rate of compensation increase, have a direct and potentially material impact on the amounts prese nted. Significant changes in these assumptions between periods can have a material effect on the Consolidated financial statements. Asset retirement obligations Equinor has significant obligations to decommission and remove offshore installations at the end of the production period. The costs of these 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 estimates include assumptions of the time required and the day rates for rigs, marine operations and heavy lift vessels that can vary considerably depending on the assumed removal complexity. As a result, the initial recognition of the liability and the capitalised cost associated with decommissioning and removal obligations, and the subsequent adjustment of these balance sheet items, involve the application of significant j udgement. Derivative financial instruments When not directly observable in active markets, the fair value of derivative contracts must be computed internally based on internal assumptions as well as directly observable market information, including forward and yield curves for commodities, currencies and i nterest rates. Changes in internal assumptions, forward and yield curves could materially impact the internally computed fair value of derivative contracts, particularly long-term contracts, resulting in a corresponding impact on income or loss in the Cons olidated statement of income. Income tax Every year Equinor incurs significant amounts of income taxes payable to various jurisdictions around the world and recognises significant changes to deferred tax assets and deferred tax liabilities, all of which are based on management's interpretations of applicable laws, regulations and relevant court decisions. The quality of these estimates is highly dependent upon proper application of at times very complex sets of rules, the recognition of changes in applic able 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. |
IFRS 16 [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | IFRS 16 Leases IFRS 16 will be implemented by Equinor on 1 January 2019. Reference is made to n ote 23 Implementation of IFRS 16 L eases for further information about the standard, the policy choices made by Equinor, and the IFRS 16 implementation impact. |
Other amendments to standards [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | Voluntary change in significant accounting policies decided upon, but not yet adopted In 2018, Equinor voluntarily changed its policy for recognition of revenue from the production of oil and gas properties in which Equinor shares an interest with other companies, from previously recognising revenu e on the basis of volumes lifted and sold to customers during the period (the sales method) to instead recognising revenue based on Equinor’s ownership in producing fields. Reference is made to n ote 27 Changes in accounting policies for further details. Th e issue of which method is the most appropriate for reflecting revenues related to lifting imbalances, and how to recognise revenue from the production of oil and gas properties in which an entity shares an interest with other companies, has been the subje ct of discussions in the IFRS Interpretations Committee (IFRIC) during the last months of 2018 and into 2019 . Based on the IFRIC discussions, Equinor has decided to return to the sales method. This change in policy will be implemented on 1 January 2019 and the impact on Equinor’s equity upon implementation is expected to be immaterial. Other standards, amendments to standards and interpretations of standards The amendments to IFRS 10 Consolidated Financial State ments and IAS 28 Investments in Associates and Joint Ventures, issued in 2014 and effective from a future date to be determined by the IASB, establish requirements for the accounting for sales or contributions of assets between an investor and its associat e or joint venture. The amendments are to be applied prospectively. Equinor has not determined an adoption date for the amendments. The amendments to IFRS 3 Business Combinations, issued in October 2018 and effective from 1 January 2020, introduce improve ments to the definition of a business. The amendments also establish an optional test to identify a concent ration of fair value that, if applied and met, would lead to the conclusion that an acquired set of activities and assets is not a business. The amen dments are to be applied for relevant transactions that occur on or after the implementation date. Equinor has not yet determined an adoption date for the amendments. Other standards, amendments to standards, and interpretations of standards, issued but not yet effective, are either not expected to impact Equinor’s Consolidated financial statements materially, or are not expected to be relevant to Equinor's Consolidated financial statements upon adoption. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Operating segments data [text block] | (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2018 Revenues third party, other revenues and other income 588 3,181 75,487 45 0 79,301 Revenues inter-segment 21,877 9,186 291 2 (31,355) 0 Net income/(loss) from equity accounted investments 10 31 16 234 0 291 Total revenues and other income 22,475 12,399 75,794 280 (31,355) 79,593 Purchases [net of inventory variation] 2 (26) (69,296) (0) 30,805 (38,516) Operating, selling, general and administrative expenses (3,270) (3,006) (4,377) (288) 653 (10,286) Depreciation, amortisation and net impairment losses (4,370) (4,592) (215) (72) 0 (9,249) Exploration expenses (431) (973) 0 0 0 (1,405) Net operating income/(loss) 14,406 3,802 1,906 (79) 103 20,137 Additions to PP&E, intangibles and equity accounted investments 6,947 7,403 331 519 0 15,201 Balance sheet information Equity accounted investments 1,102 296 92 1,373 0 2,863 Non-current segment assets 30,762 38,672 5,148 353 0 74,934 Non-current assets, not allocated to segments 8,655 Total non-current assets 86,452 (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2017 Revenues third party, other revenues and other income (23) 1,984 58,935 102 0 60,999 Revenues inter-segment 1) 17,586 7,249 83 1 (24,919) 0 Net income/(loss) from equity accounted investments 129 22 53 (16) 0 188 Total revenues and other income 17,692 9,256 59,071 87 (24,919) 61,187 Purchases [net of inventory variation] 1) 0 (7) (52,647) (0) 24,442 (28,212) Operating, selling, general and administative expenses 1) (2,954) (2,804) (3,925) (235) 418 (9,501) Depreciation, amortisation and net impairment losses (3,874) (4,423) (256) (91) (0) (8,644) Exploration expenses (379) (681) 0 0 0 (1,059) Net operating income/(loss) 10,485 1,341 2,243 (239) (59) 13,771 Additions to PP&E, intangibles and equity accounted investments 4,869 5,063 320 543 0 10,795 Balance sheet information Equity accounted investments 1,133 234 134 1,050 0 2,551 Non-current segment assets 30,278 36,453 5,137 390 0 72,258 Non-current assets, not allocated to segments 9,102 Total non-current assets 83,911 1) Parts of the gas transportation costs that previously were allocated to MMP and therefore deducted from the inter segment transfer price, are from 1 January 2017 allocated to E&P Norway. (in USD million) E&P Norway E&P International MMP Other Eliminations Total Full year 2016 Revenues third party, other revenues and other income 184 884 44,883 41 0 45,993 Revenues inter-segment 12,971 5,873 35 1 (18,880) (0) Net income/(loss) from equity accounted investments (78) (100) 61 (3) 0 (119) Total revenues and other income 13,077 6,657 44,979 39 (18,880) 45,873 Purchases [net of inventory variation] 1 (7) (39,696) (0) 18,198 (21,505) Operating, selling, general and administative expenses (2,547) (2,923) (4,439) (340) 463 (9,787) Depreciation, amortisation and net impairment losses (5,698) (5,510) (221) (121) 0 (11,550) Exploration expenses (383) (2,569) 0 0 0 (2,952) Net operating income /(loss) 4,451 (4,352) 623 (423) (219) 80 Additions to PP&E, intangibles and equity accounted investments 6,786 6,397 492 451 0 14,125 Balance sheet information Equity accounted investments 1,133 365 129 617 0 2,245 Non-current segment assets 27,816 36,181 4,450 352 0 68,799 Non-current assets, not allocated to segments 8,090 Total non-current assets 79,133 |
Non-current assets by country [text block] | Non-current assets by country At 31 December (in USD million) 2018 2017 2016 Norway 34,952 34,588 31,484 USA 19,409 19,267 18,223 Brazil 7,861 4,584 5,308 UK 4,588 4,222 3,108 Angola 1,874 2,888 3,884 Canada 1,546 1,715 1,494 Azerbaijan 1,452 1,472 1,326 Algeria 986 1,114 1,344 Other countries 5,128 4,958 4,873 Total non-current assets 1) 77,797 74,809 71,043 Ex cluding deferred tax assets, pension assets and non-current financial assets. |
Revenues from contracts with customers [text block] | Revenues from contracts with customers and other revenues 2018 2017 2016 (in USD million) Crude oil 40,948 29,519 24,307 Natural gas 14,559 11,420 9,202 Refined products 13,124 11,423 8,142 Natural gas liquids 7,167 5,647 4,036 Transportation 1,033 Other sales 903 2,963 1 Total revenues from contracts with customers 77,734 60,971 45,688 Over/Under lift 137 Taxes paid in-kind 865 Gain (loss) on commodity derivatives (216) Other revenues 36 Total other revenues 821 Revenues 78,555 60,971 45,688 For 2017 and 2016, the transportation element included in sales transactions with customers are included in Crude Oil, Refined Products and Natural Gas Liquids. Other transportation was included in other sales. In 2018 these elements are included in Transportation. The elements included in Total other revenues were for 2017 and 2016 included in other sales. The changes are due to implementation of IFRS15, see note 27 Changes in accounting policies. |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management [Abstract] | |
Maturity profile, based on undiscounted contractual cash flows [text block] | At 31 December 2018 2017 (in USD million) Non-derivative financial liabilities Derivative financial liabilities Non-derivative financial liabilities Derivative financial liabilities Year 1 12,020 271 14,502 166 Year 2 and 3 5,624 677 5,246 85 Year 4 and 5 5,042 203 4,441 369 Year 6 to 10 10,761 611 11,630 283 After 10 years 9,617 725 11,294 204 Total specified 43,064 2,488 47,114 1,107 |
Credit risk exposure, internal credit grades [text block] | (in USD million) Non-current financial receivables Trade and other receivables Non-current derivative financial instruments Current derivative financial instruments At 31 December 2018 Investment grade, rated A or above 460 1,811 682 100 Other investment grade 150 5,412 350 183 Non-investment grade or not rated 244 1,265 0 35 Total financial asset 854 8,488 1,032 318 At 31 December 2017 Investment grade, rated A or above 262 2,148 1,079 84 Other investment grade 214 6,135 525 71 Non-investment grade or not rated 247 278 0 5 Total financial asset 723 8,560 1,603 159 |
Remuneration (Tables)
Remuneration (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Renumeration [abstract] | |
Schedule Of Renumeration Explanatory [Table Text Block] | Full year (in USD million, except average number of employees) 2018 2017 2016 Salaries 1) 2,863 2,671 2,576 Pension costs 463 469 650 Payroll tax 409 387 394 Other compensations and social costs 318 290 276 Total payroll costs 4,052 3,818 3,895 Average number of employees 2) 20,700 20,700 21,300 Salaries include bonuses, severance packages and expatriate costs in addition to base pay. Part time e mployees amount to 3 % f or each of the years 2018, 2017 and 2016 respectively. |
Remuneration to members of the BoD and the CEC [text block] | Full year (in USD thousand) 1) 2018 2017 2016 Current employee benefits 12,471 11,067 9,270 Post-employment benefits 667 636 574 Other non-current benefits 21 25 19 Share-based payment benefits 197 175 102 Total 13,356 11,902 9,966 All figures in the table are presented on accrual basis. |
Other expenses (Table)
Other expenses (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense [Abstract] | |
Auditor's remuneration [text block] | Auditor's remuneration Full year (in USD million, excluding VAT) 2018 2017 2016 Audit fee 7.1 6.1 6.5 Audit related fee 1.0 0.9 1.0 Tax fee 0.0 0.0 0.1 Other service fee 0.0 0.0 0.0 Total 8.1 7.0 7.5 |
Financial items (Table)
Financial items (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Finance Income Expense [Abstract] | |
Schedule of Finance items [text block] | Full year (in USD million) 2018 2017 2016 Foreign exchange gains (losses) derivative financial instruments 149 (920) 353 Other foreign exchange gains (losses) (315) 1,046 (473) Net foreign exchange gains (losses) (166) 126 (120) Dividends received 150 63 46 Gains (losses) financial investments (72) 108 (0) Interest income financial investments 45 64 63 Interest income non-current financial receivables 27 24 22 Interest income current financial assets and other financial items 132 228 305 Interest income and other financial items 283 487 436 Gains (losses) derivative financial instruments (341) (61) 470 Interest expense bonds and bank loans and net interest on related derivatives (922) (1,004) (830) Interest expense finance lease liabilities (23) (26) (26) Capitalised borrowing costs 552 454 355 Accretion expense asset retirement obligations (461) (413) (420) Interest expense current financial liabilities and other finance expense (185) 86 (122) Interest and other finance expenses (1,040) (903) (1,043) Net financial items (1,263) (351) (258) |
Income taxes (Table)
Income taxes (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Income tax [abstract] | |
Significant components of income tax expense [Table Text Block] | Significant components of income tax expense Full year (in USD million) 2018 2017 2016 Current income tax expense in respect of current year (10,724) (7,680) (3,869) Prior period adjustments (49) (124) (158) Current income tax expense (10,773) (7,805) (4,027) Origination and reversal of temporary differences (1,359) (904) 1,372 Recognition of previously unrecognised deferred tax assets 923 0 0 Change in tax regulations (28) (14) (50) Prior period adjustments (99) (100) (20) Deferred tax expense (563) (1,017) 1,302 Income tax expense (11,335) (8,822) (2,724) |
Reconciliation of statutory tax rate to effective tax rate [Table Text Block] | Reconciliation of statutory tax rate to effective tax rate Full year (in USD million) 2018 2017 2016 Income/(loss) before tax 18,874 13,420 (178) Calculated income tax at statutory rate 1) (5,197) (3,827) 676 Calculated Norwegian Petroleum tax 2) (8,189) (5,945) (2,250) Tax effect uplift 2) 736 784 812 Tax effect of permanent differences regarding divestments 400 (85) 153 Tax effect of permanent differences caused by functional currency different from tax currency 116 (229) (356) Tax effect of other permanent differences 337 291 (48) Tax effect of dispute with Angolan Ministry of Finance 3) 0 496 0 Recognition of previously unrecognised deferred tax assets 4) 923 0 0 Change in unrecognised deferred tax assets 72 (169) (1,625) Change in tax regulations (28) (14) (50) Prior period adjustments (148) (224) (177) Other items including currency effects (357) 100 141 Income tax expense (11,335) (8,822) (2,724) Effective tax rate 60.1% 65.7% >(100%) The weighted average of statutory tax rates was 27.5 % in 2018 , 28.5 % in 2017 and 379.8 % in 2016 . The rate s are influenced by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates. The change in weighted average statutory tax rate from 2017 to 2018 is mainly caused by the reduction in the Norwegian statutory tax rate from 24% in 2017 to 23% in 2018. The high rate in 2016 and the change in weighted average statutory tax rate f rom 2016 to 2017 is mainly caused by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates. In 2016 there were positive income in tax regimes with relatively lower tax rates and losses, incl uding impairments and provisions, in tax regimes with relatively higher tax rates. When computing the petroleum tax of 55 % ( 56 % from 2019) on income from the Norwegian continental shelf, an additional tax-free allowance, or uplift, is granted on the basis of the original capitalised cost of offshore production installations. The uplift may be deducted from taxable income for a period of four years starting in the year in which the capital expenditure is incurred. For investments made in 2018 the uplift is c alculated at a rate of 5.3 % per year, while the rate is 5.4 % per year for investments made in 2017 and 5.5 % per year for investments made in 2014-2016. The rate is 5.2 % per year from 2019 for new investments . Transitional rules apply to investments from 5 May 2013 covered by among others Plans for development and operation (PDOs) or Plans for installation and operation (PIOs) submitted to the Ministry of Oil and Energy prior to 5 May 2013. For these investments the rate is 7.5 % per year. Unused uplift may b e carried forward indefinitely. At year end 2018 and 2017, unrecognised uplift credits amounted to USD 1,780 million and USD 2,003 million, respectively. In June 2017 Equinor signed an agreement with the Angolan Ministry of Finance which resolved the disp ute over previously assessed additional profit oil and taxes due, and established how to allocate profit oil and assess petroleum income tax (PIT) related to Equinor ’s participation in Block 4, Block 15, Block 17 and Block 31 offshore Angola for the years 2002 to 2016. An amount of USD 923 million of previously unrecognised deferred tax assets was recognised in the E&P International reporting segment in 2018. The recognition of the deferred tax assets is based on the expectation that sufficient taxable income will be available through reversals of taxable temporary differences or future taxable income supported by business forecast. |
Deferred tax assets and liabilities [text block] | Deferred tax assets and liabilities comprise (in USD million) Tax losses carried forward Property, plant and equipment and Intangible assets Asset removal obligation Pensions Derivatives Other Total Deferred tax at 31 December 2018 Deferred tax assets 5,761 351 8,118 785 95 1,095 16,205 Deferred tax liabilities (0) (20,987) 0 (14) (96) (476) (21,573) Net asset (liability) at 31 December 2018 5,761 (20,636) 8,118 771 (1) 620 (5,367) Deferred tax at 31 December 2017 Deferred tax assets 4,459 259 8,049 738 34 763 14,302 Deferred tax liabilities (0) (19,027) 0 (11) (27) (451) (19,515) Net asset (liability) at 31 December 2017 4,459 (18,768) 8,049 728 7 312 (5,213) |
Changes in net deferred tax liability during the year [Table Text Block] | Changes in net deferred tax liability during the year were as follows: (in USD million) 2018 2017 2016 Net deferred tax liability at 1 January 5,213 4,231 5,399 Charged (credited) to the Consolidated statement of income 563 1,017 (1,302) Charged (credited) to Other comprehensive income (22) 38 (129) Translation differences and other (386) (73) 264 Net deferred tax liability at 31 December 5,367 5,213 4,231 |
Disclosure of Net deferred tax assets and liabilities [Table Text Block] | At 31 December (in USD million) 2018 2017 Deferred tax assets 3,304 2,441 Deferred tax liabilities 8,671 7,654 |
Disclosure of unrecognised deferred tax assets [Table Text Block] | Unrecognised deferred tax assets At 31 December 2018 2017 (in USD million) Basis Tax Basis Tax Deductible temporary differences 2,439 1,123 3,415 1,409 Tax losses carried forward 14,802 3,940 17,412 4,661 Total 17,241 5,062 20,827 6,070 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment [text block] | (in USD million) Machinery, equipment and transportation equipment, including vessels Production plants and oil and gas assets Refining and manufacturing plants Buildings and land Assets under development Total Cost at 31 December 2017 3,470 157,533 8,646 866 18,140 188,656 Additions through business combinations 76 2,473 0 48 1,370 3,968 Additions and transfers 90 13,017 328 32 (3,322) 10,144 Disposals at cost (12) (505) (0) (1) (366) (884) Effect of changes in foreign exchange (28) (5,752) (314) (13) (861) (6,967) Cost at 31 December 2018 3,596 166,766 8,660 932 14,961 194,916 Accumulated depreciation and impairment losses at 31 December 2017 (2,853) (113,781) (6,200) (439) (1,746) (125,019) Depreciation (137) (9,249) (426) (29) 0 (9,841) Impairment losses 0 (762) 0 0 (32) (794) Reversal of impairment losses 155 1,087 0 0 156 1,398 Transfers (0) (1,799) (229) (1) 1,067 (961) Accumulated depreciation and impairment on disposed assets 12 602 0 0 366 980 Effect of changes in foreign exchange 21 4,312 242 4 5 4,583 Accumulated depreciation and impairment losses at 31 December 2018 (2,802) (119,589) (6,613) (465) (185) (129,654) Carrying amount at 31 December 2018 794 47,177 2,048 467 14,776 65,262 Estimated useful lives (years) 3-20 UoP 1) 15 - 20 20 - 33 2) (in USD million) Machinery, equipment and transportation equipment, including vessels Production plants and oil and gas assets Refining and manufacturing plants Buildings and land Assets under development Total Cost at 31 December 2016 3,394 142,750 8,262 859 17,315 172,579 Additions and transfers 56 10,181 331 47 111 10,727 Disposals at cost (7) 0 (288) (50) (30) (374) Effect of changes in foreign exchange 27 4,602 342 10 743 5,724 Cost at 31 December 2017 3,470 157,533 8,646 866 18,140 188,656 Accumulated depreciation and impairment losses at 31 December 2016 (2,767) (100,971) (5,772) (446) (3,068) (113,023) Depreciation (122) (9,051) (485) (29) 0 (9,688) Impairment losses 0 (917) (0) 0 0 (917) Reversal of impairment losses 48 935 0 0 989 1,972 Transfers 0 (422) (1) (0) 370 (53) Accumulated depreciation and impairment on disposed assets 5 (24) 285 39 18 323 Effect of changes in foreign exchange (17) (3,331) (227) (4) (55) (3,634) Accumulated depreciation and impairment losses at 31 December 2017 (2,853) (113,781) (6,200) (439) (1,746) (125,019) Carrying amount at 31 December 2017 617 43,753 2,446 427 16,394 63,637 Estimated useful lives (years) 3-20 UoP 1) 15 - 20 20 - 33 2) Depreciation according to unit of production method (UoP) , see note 2 Significant accounting policies . Land is not depreciated . |
Impairments [text block] | (in USD million) Property, plant and equipment Intangible assets 3) Total At 31 December 2018 Producing and development assets 1) (604) 237 (367) Acquisition costs related to oil and gas prospects 2) - 52 52 Total net impairment loss/(reversal) recognised (604) 289 (315) At 31 December 2017 Producing and development assets 1) (1,056) (326) (1,381) Acquisition costs related to oil and gas prospects 2) - 245 245 Total net impairment loss/(reversal) recognised (1,056) (81) (1,137) Producing and development assets and goodwill are subject to impairment assessment under IAS 36. The total net impairment reversal recognised under IAS 36 in 2018 amount to USD 367 million, compared to 2017 when the net impairment reversal amounted to USD 1,381 million, including impairment reversals and impairments of acquisition costs - oil and gas prospects (intangible assets). Acquisition costs related to exploration activities, subject to impairment assessment under the successful efforts method (I FRS 6). See note 11 Intangible assets . |
Impairment of the carrying amount of impaired asset [text block] | 2018 2017 (in USD million) Valuation method Carrying amount after impairment Net impairment loss (reversal) Carrying amount after impairment Net impairment loss (reversal) At 31 December Exploration & Production Norway VIU 1,966 (201) 2,169 (826) FVLCOD 1,232 (402) 1,507 (80) North America - unconventional VIU 5,771 762 5,017 (1,266) FVLCOD 0 0 1,422 856 North America Conventional offshore US Gulf of Mexico VIU 3,989 (246) 1,200 (17) FVLCOD 0 0 0 0 North Africa VIU 451 (126) 0 0 FVLCOD 0 0 0 0 Marketing, Midstream & Processing VIU 403 (155) 263 (48) FVLCOD 0 0 0 0 Total 13,813 (367) 11,578 (1,381) |
Disclosure of price assumptions used for impairment calculations [Table Text Block] | Year Prices in real terms1) 2019 2020 2025 2030 Brent Blend – USD/bbl 62 (66) 66 (70) 77 (80) 80 (84) NBP - USD/mmBtu 7.7 (6.7) 7.4 (6.8) 8.0 (8.4) 8.0 (8.4) Henry Hub – USD/mmBtu 3.1 (3.4) 3.2 (3.7) 4.0 (4.2) 4.0 (4.2) 1) Basis year 2018 |
Intangible assets (Table)
Intangible assets (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Continuity schedule of intangible assets [text block] | (in USD million) Exploration expenses Acquisition costs - oil and gas prospects Goodwill Other Total Cost at 31 December 2017 2,715 5,363 339 419 8,836 Additions through business combinations 0 116 265 392 773 Additions 392 917 0 (7) 1,302 Disposals at cost (272) (89) 0 (4) (364) Transfers (13) (148) 0 0 (161) Expensed exploration expenditures previously capitalised (68) (289) 0 0 (357) Effect of changes in foreign exchange (70) (17) (39) (2) (128) Cost at 31 December 2018 2,685 5,854 565 797 9,901 Accumulated depreciation and impairment losses at 31 December 2017 (215) (215) Amortisation and impairments for the year (13) (13) Amortisation and impairment losses disposed intangible assets (2) (2) Effect of changes in foreign exchange 1 1 Accumulated depreciation and impairment losses at 31 December 2018 (229) (229) Carrying amount at 31 December 2018 2,685 5,854 565 568 9,672 (in USD million) Exploration expenses Acquisition costs - oil and gas prospects Goodwill Other Total Cost at 31 December 2016 2,856 5,907 328 346 9,438 Additions 154 861 0 94 1,109 Disposals at cost (0) (0) 0 (26) (26) Transfers (276) (124) 0 (0) (401) Assets reclassified to held for sale 0 (1,369) 0 0 (1,369) Expensed exploration expenditures previously capitalised (73) 81 0 0 8 Effect of changes in foreign exchange 56 6 11 4 77 Cost at 31 December 2017 2,715 5,363 339 419 8,836 Accumulated depreciation and impairment losses at 31 December 2016 (195) (195) Amortisation and impairments for the year (12) (12) Amortisation and impairment losses disposed intangible assets (6) (6) Effect of changes in foreign exchange (2) (2) Accumulated depreciation and impairment losses at 31 December 2017 (215) (215) Carrying amount at 31 December 2017 2,715 5,363 339 204 8,621 |
Aging of capitalised exploration expenditures [text block] | The table below shows the aging of capitalised exploration expenditures. (in USD million) 2018 2017 Less than one year 392 218 Between one and five years 1,406 1,799 More than five years 887 698 Total 2,685 2,715 |
Components of the exploration expenses [text block] | The table below shows the components of the exploration expenses. Full year (in USD million) 2018 2017 2016 Exploration expenditures 1,438 1,234 1,437 Expensed exploration expenditures previously capitalised 357 (8) 1,800 Capitalised exploration (390) (167) (285) Exploration expenses 1,405 1,059 2,952 |
Equity accounted investments (T
Equity accounted investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity investments [Abstract] | |
Equity accounted investments [text block] | (in USD million) Lundin Petroleum AB Other equity accounted investments Total Investment at 31 December 2017 1,125 1,426 2,551 Net income/(loss) from equity accounted investments 10 281 291 Acquisitions and increase in paid in capital 0 548 548 Dividend and other distributions (31) (244) (275) Other comprehensive income/(loss) (5) (66) (70) Divestments, derecognition and decrease in paid in capital 0 (183) (183) Investment at 31 December 2018 1,100 1,763 2,862 |
Summarised financial information relating to Lundin Petroleum AB [text block] | Lundin Petroleum AB (in USD million) 2018 2017 At 31 December Current assets 79 101 Non-Current assets 3,010 2,920 Current liabilities (58) (62) Non-Current liabilities (1,931) (1,834) Net assets 1,100 1,125 Year ended 31 December Gross revenues 495 376 Income/(loss) before tax 225 226 Net income/(loss) 10 126 Capital expenditures 231 250 |
Financial investments and non_2
Financial investments and non-current prepayments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Categories of non-current financial assets [abstract] | |
Disclosure Of Noncurrent Financial Assets Explanatory [Table Text Block] | Non-current financial investments At 31 December (in USD million) 2018 2017 Bonds 1,261 1,611 Listed equity securities 530 619 Non-listed equity securities 664 611 Financial investments 2,455 2,841 |
Disclsoure Of Prepayments And Financial Receivables Explanatory [Table Text Block] | Non-current prepayments and financial receivables At 31 December (in USD million) 2018 2017 Financial receivables interest bearing 345 716 Prepayments and other non-interest bearing receivables 688 196 Prepayments and financial receivables 1,033 912 |
Disclosure of other current assets [text block] | Current financial investments At 31 December (in USD million) 2018 2017 Time deposits 4,129 4,111 Interest bearing securities 2,912 4,337 Financial investments 7,041 8,448 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Classes of current inventories [abstract] | |
Disclosure Of Detailed Information About Inventories Explanatory [Table Text Block] | At 31 December (in USD million) 2018 2017 Crude oil 1,173 2,323 Petroleum products 345 596 Natural gas 274 149 Other 351 330 Inventories 2,144 3,398 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other receivables [abstract] | |
Trade and other receivables [text block] | At 31 December (in USD million) 2018 2017 Trade receivables from contracts with customers 6,267 7,649 Other current receivables 1,800 427 Joint venture receivables 390 478 Receivables from equity accounted associated companies and other related parties 31 6 Total financial trade and other receivables 8,488 8,560 Non-financial trade and other receivables 510 865 Trade and other receivables 8,998 9,425 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents [text block] | At 31 December (in USD million) 2018 2017 Cash at bank available 1,140 591 Time deposits 2,068 1,889 Money market funds 2,255 381 Interest bearing securities 1,590 1,092 Restricted cash, including margin deposits 501 437 Cash and cash equivalents 7,556 4,390 |
Shareholders' equity and divi_2
Shareholders' equity and dividends (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders equity and dividends [Abstract] | |
Disclosure of dividends [text block] | At 31 December (in USD million) 2018 2017 Dividends declared 3,064 2,891 USD per share or ADS 0.9200 0.8804 Dividends paid in cash 2,672 1,491 USD per share or ADS 0.9101 0.8804 NOK per share 7.4907 7.2615 Scrip dividends 338 1,357 Number of shares issued (millions) 15.5 78.1 Sum dividends settled 3,010 2,848 |
Finance debt (Tables)
Finance debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Disclosure of Capital Management | At 31 December (in USD million) 2018 2017 Net interest-bearing debt adjusted (ND) 12,246 16,287 Capital employed adjusted (CE) 55,235 56,172 Net debt to capital employed adjusted (ND/CE) 22.2% 29.0% |
Disclosure of detailed information about borrowings [table text block] | 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) 2018 2017 2018 2017 2018 2017 Unsecured bonds United States Dollar (USD) 4.14 3.73 13,088 14,953 13,657 16,106 Euro (EUR) 2.10 2.10 8,928 9,347 9,444 10,057 Great Britain Pound (GBP) 6.08 6.08 1,760 1,859 2,532 2,734 Norwegian Kroner (NOK) 4.18 4.18 345 366 388 427 Total 24,121 26,524 26,021 29,325 Unsecured loans Japanese Yen (JPY) 4.30 4.30 91 89 119 118 Finance lease liabilities 432 478 425 496 Total 523 567 544 614 Total finance debt 24,644 27,090 26,565 29,938 Less current portion 1,380 2,908 1,379 2,924 Non-current finance debt 23,264 24,183 25,186 27,014 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. Fair values are mainly determined from external calculation models based on market observations from various sources, classified at level 2 in the fair value hierarchy. If available, the fair value of the non-current financial liabilities is determined from quoted market prices in an active market, classified at level 1 in the fair value hierarchy. |
Disclosure Of Bonds Issued [text block] | In 2018 Equinor issued the following bond: Issuance date Amount in USD million Interest rate in % Maturity date 5 September 2018 USD 1,000 3.625 September 2028 |
Disclosure of Non-current finance debt maturity profile [text block] | Non-current finance debt maturity profile At 31 December (in USD million) 2018 2017 Year 2 and 3 4,003 3,521 Year 4 and 5 3,736 3,041 After 5 years 15,525 17,620 Total repayment of non-current finance debt 23,264 24,183 Weighted average maturity (years) 9 9 Weighted average annual interest rate (%) 3.67 3.50 |
Disclosure of Current finance debt [text block] | Current finance debt At 31 December (in USD million) 2018 2017 Collateral liabilities 213 704 Non-current finance debt due within one year 1,380 2,908 Other including US Commercial paper programme and bank overdraft 870 479 Total current finance debt 2,463 4,091 Weighted average interest rate (%) 1.62 1.65 |
Reconciliation of liabilities arising from financing activities [text block] | Reconciliation of cash flow 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 Share based payment/Treasury shares Non controlling interest Dividend payable Total At 31 December 2017 24,183 4,091 (272) (191) 24 729 28,564 Transfer to current portion (1,380) 1,380 - - - - - Effect of exchange rate changes (556) 2 - - - (1) (555) Dividend decleared - - - - - 3,064 3,064 Scrip dividend - - - - - (338) (338) Cash flows provided by (used in) financing activities 998 (2,949) (331) (64) (7) (2,672) (5,025) Other changes 20 (61) 11 59 2 (16) 15 At 31 December 2018 23,264 2,463 (591) (196) 19 766 25,725 (in USD million) Non current finance debt Current finance debt Financial receivable Collaterals 1) Additional paid in capital Share based payment/Treasury shares Non controlling interest Dividend payable Total At 31 December 2016 27,999 3,674 (735) (212) 27 712 31,465 Transfer to current portion (2,908) 2,908 - - - - - Effect of exchange rate changes 1,302 (13) - - - (11) 1,278 Dividend decleared - - - - - 2,891 2,891 Scrip dividend - - - - - (1,357) (1,357) Cash flows provided by (used in) financing activities (2,250) (2,472) 464 (62) (12) (1,491) (5,823) Other changes 40 (5) (1) 83 9 (15) 110 At 31 December 2017 24,183 4,091 (272) (191) 24 729 28,564 1) Financial receivables collaterals are in included in trade and other receivables in the balance sheet. See note 15 Trade and other receivables for more information. |
Pensions (Tables)
Pensions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of defined benefit plans [abstract] | |
Net pension cost [table text block] | Net pension cost (in USD million) 2018 2017 2016 Current service cost 214 242 238 Interest cost - - 192 Interest (income) on plan asset - - (148) Past service cost 0 (0) 2 Losses (gains) from curtailment, settlement or plan amendment 20 15 109 Actuarial (gains) losses related to termination benefits 0 (1) 59 Notional contribution plans 55 51 50 Defined benefit plans 289 308 503 Defined contribution plans 173 162 148 Total net pension cost 462 469 650 |
Disclosure of defined benefit plans [table text block] | (in USD million) 2018 2017 Defined benefit obligations (DBO) Defined benefit obligations at 1 January 8,286 7,791 Current service cost 214 243 Interest cost 182 219 Actuarial (gains) losses - Financial assumptions 174 (26) Actuarial (gains) losses - Experience (27) (21) Benefits paid (219) (311) Losses (gains) from curtailment, settlement or plan amendment (1) 13 Paid-up policies (18) (84) Foreign currency translation (469) 411 Changes in notional contribution liability 55 52 Defined benefit obligations at 31 December 8,176 8,286 Fair value of plan assets Fair value of plan assets at 1 January 5,687 5,250 Interest income 136 148 Return on plan assets (excluding interest income) (135) 283 Company contributions 49 39 Benefits paid (217) (196) Paid-up policies and personal insurance (18) (121) Foreign currency translation (315) 283 Fair value of plan assets at 31 December 5,187 5,687 Net pension liability at 31 December (2,990) (2,599) Represented by: Asset recognised as non-current pension assets (funded plan) 831 1,306 Liability recognised as non-current pension liabilities (unfunded plans) (3,821) (3,905) DBO specified by funded and unfunded pension plans 8,176 8,286 Funded 4,359 4,392 Unfunded 3,817 3,894 Actual return on assets 1 431 |
Actuarial losses and gains recognised directly in Other comprehensive income [text block] | Actuarial losses and gains recognised directly in Other comprehensive income (OCI) (in USD million) 2018 2017 2016 Net actuarial (losses) gains recognised in OCI during the year (282) 331 (482) Actuarial (losses) gains related to currency effects on net obligation and foreign exchange translation 172 (158) (21) Tax effects of actuarial (losses) gains recognised in OCI 22 (38) 129 Recognised directly in OCI during the year net of tax (88) 135 (374) Cumulative actuarial (losses) gains recognised directly in OCI net of tax (1,141) (1,053) (1,188) |
Actuarial assumptions [text block] | Actuarial assumptions Assumptions used to determine benefit costs in % Assumptions used to determine benefit obligations in % 2018 2017 2018 2017 Discount rate 2.50 2.50 2.75 2.50 Rate of compensation increase 2.25 2.25 2.75 2.25 Expected rate of pension increase 1.75 1.75 2.00 1.75 Expected increase of social security base amount (G-amount) 2.25 2.25 2.75 2.25 Weighted-average duration of the defined benefit obligation 15.9 17.2 |
Disclosure of sensitivity analysis for actuarial assumptions [table text block] | Discount rate Expected rate of compensation increase Expected rate of pension increase Mortality assumption (in USD million) 0.50% -0.50% 0.50% -0.50% 0.50% -0.50% + 1 year - 1 year Changes in: Defined benefit obligation at 31 December 2018 (611) 695 169 (167) 520 (473) 296 (324) Service cost 2019 (21) 25 7 (7) 16 (14) 8 (9) |
Portfolio weighting as approved by the board of Statoil Pension [text block] | Pension assets on investments classes Target portfolio weight (in %) 2018 2017 Equity securities 36.5 37.5 31 - 43 Bonds 44.9 41.7 36 - 48 Money market instruments 12.3 14.3 0 - 29 Real estate 6.3 6.1 5 - 10 Other assets 0.0 0.4 Total 100.0 100.0 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other provisions [abstract] | |
Disclosure of other provisions [table text block] | (in USD million) Asset retirement obligations Claims and litigations Other provisions Total Non-current portion at 31 December 2017 12,383 1,271 1,904 15,557 Current portion at 31 December 2017 reported as trade and other payables 69 68 547 684 Provisions at 31 December 2017 12,451 1,339 2,451 16,241 New or increased provisions 1,609 6 858 2,473 Decrease in the estimates (382) (386) (121) (889) Amounts charged against provisions (157) (4) (588) (749) Effects of change in the discount rate (838) - 24 (814) Accretion expenses 461 - - 461 Reclassification and transfer - 6 15 21 Currency translation (536) (0) (32) (568) Provisions at 31 December 2018 12,609 961 2,606 16,175 Current portion at 31 December 2018 reported as trade and other payables 65 56 103 224 Non-current portion at 31 December 2018 12,544 905 2,503 15,952 |
Other provisions maturity [table text block] | Expected timing of cash outflows (in USD million) Asset retirement obligations Other provisions, including claims and litigations Total 2019 - 2023 1,307 2,447 3,754 2024 - 2028 1,891 682 2,574 2029 - 2033 3,530 36 3,566 2034 - 2038 2,534 13 2,546 Thereafter 3,348 388 3,736 At 31 December 2018 12,609 3,567 16,175 |
Trade, other payables and pro_2
Trade, other payables and provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other payables [abstract] | |
Disclosure Of Detailed Information Of Trade And Other Payables [table text block] | At 31 December (in USD million) 2018 2017 Trade payables 2,532 3,181 Non-trade payables and accrued expenses 2,604 2,345 Joint venture payables 2,254 2,464 Payables to equity accounted associated companies and other related parties 725 858 Total financial trade and other payables 8,115 8,849 Current portion of provisions and other non-financial payables 255 888 Trade, other payables and provisions 8,369 9,737 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Presentation of leases for lessee [abstract] | |
Disclosure of maturity analysis of operating lease payments [table text block] | Operating leases (in USD million) Rigs Vessels Land and buildings Storage Other Total 2019 998 662 143 83 113 2,001 2020 523 599 141 60 84 1,406 2021 349 534 140 41 50 1,114 2022 372 384 136 40 28 960 2023 280 316 198 25 13 832 2024-2028 75 789 544 68 50 1,527 2029-2033 - 131 223 6 17 376 Thereafter - - 32 - 7 39 Total future minimum lease payments 2,597 3,414 1,558 322 363 8,253 |
Implementation of IFRS 16 Lease
Implementation of IFRS 16 Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of implemenation of IFRS Leases [abstract] | |
Disclosure of implementation of IFRS 16 leases [table text block] | (in USD million) Operating lease commitments (IAS 17) at 31 December 2018 8,253 Short term leases and leases expiring during 2019 (666) Non-lease components (1,469) Commitments related to leases not yet commenced (2,116) Leases reported gross vs net 711 Effect of discounting (485) Finance leases (IAS 17) included in the balance sheet at 31 December 2018 432 Lease liability to be reported under IFRS 16 at 1 January 2019 4,660 |
Other commitments, contingent_2
Other commitments, contingent liabilities and contingent assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [abstract] | |
Disclosure of commitments [text block] | (in USD million) 2019 1,584 2020 1,463 2021 1,303 2022 1,134 2023 1,050 Thereafter 4,947 Total 11,479 |
Financial instruments_ fair v_2
Financial instruments: fair value measurement and sensitivity analysis of market risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of financial assets [text block] | (in USD million) Note Amortised cost Fair value through profit or loss Non-financial assets Total carrying amount At 31 December 2018 Assets Non-current derivative financial instruments - 1,032 - 1,032 Non-current financial investments 13 90 2,365 - 2,455 Prepayments and financial receivables 13 854 - 179 1,033 Trade and other receivables 15 8,488 - 510 8,998 Current derivative financial instruments - 318 - 318 Current financial investments 13 6,145 896 - 7,041 Cash and cash equivalents 16 5,301 2,255 - 7,556 Total 20,878 6,866 689 28,433 (in USD million) Note Amortised cost Fair value through profit or loss Non-financial assets Total carrying amount At 31 December 2017 Assets Non-current derivative financial instruments - 1,603 - 1,603 Non-current financial investments 13 47 2,794 - 2,841 Prepayments and financial receivables 13 723 - 188 912 Trade and other receivables 15 8,560 - 865 9,425 Current derivative financial instruments - 159 - 159 Current financial investments 13 4,085 4,363 - 8,448 Cash and cash equivalents 16 2,917 1,473 - 4,390 Total 16,332 10,393 1,053 27,778 |
Disclosure of financial liabilities [text block] | (in USD million) Note Amortised cost Fair value through profit or loss Non-financial liabilities Total carrying amount At 31 December 2018 Liabilities Non-current finance debt 18 23,264 - - 23,264 Non-current derivative financial instruments - 1,207 - 1,207 Trade and other payables 21 8,115 - 255 8,369 Current finance debt 18 2,463 - - 2,463 Dividend payable 766 - - 766 Current derivative financial instruments - 352 - 352 Total 34,608 1,559 255 36,422 (in USD million) Note Amortised cost Fair value through profit or loss Non-financial liabilities Total carrying amount At 31 December 2017 Liabilities Non-current finance debt 18 24,183 - - 24,183 Non-current derivative financial instruments - 900 - 900 Trade and other payables 21 8,849 - 888 9,737 Current finance debt 18 4,091 - - 4,091 Dividend payable 729 - - 729 Current derivative financial instruments - 403 - 403 Total 37,852 1,302 888 40,042 |
Disclosure of fair value measurement [text block] | (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 2018 Level 1 1,088 - 365 - - - - 1,453 Level 2 1,027 806 531 274 2,255 (1,172) (351) 3,370 Level 3 250 227 - 44 - (35) (1) 485 Total fair value 2,365 1,032 896 318 2,255 (1,207) (352) 5,307 At 31 December 2017 Level 1 1,126 - 355 - - - - 1,481 Level 2 1,271 1,320 4,008 122 1,473 (900) (399) 6,896 Level 3 397 283 - 37 - - (4) 713 Total fair value 2,794 1,603 4,363 159 1,473 (900) (403) 9,090 |
Reconciliation of fair value changes in financial instruments [Table text block] | (in USD million) Non-current financial investments Non-current derivative financial instruments - assets Current derivative financial instruments - assets Non-current derivative financial instruments liabilities Current derivative financial instruments - liabilities Total amount Opening as at 1 January 2018 397 283 37 - (4) 713 Total gains and losses recognised in statement of income (91) (44) 46 (35) 3 (122) Purchases 35 - - - - 35 Settlement - - (36) - - (36) Transfer to level 1 (88) - - - - (88) Foreign currency translation differences (3) (13) (3) - - (18) Closing as at 31 December 2018 250 227 44 (35) (1) 485 Opening as at 1 January 2017 207 848 66 (6) (4) 1,110 Total gains and losses recognised in statement of income - (69) 36 6 - (27) Purchases 90 - - - - 90 Settlement - (533) (67) - - (600) Transfer into level 3 94 - - - - 94 Foreign currency translation differences 5 37 3 - - 45 Closing as at 31 December 2017 397 283 37 - (4) 713 |
Commodity price sensitivity [member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Sensitivity analysis for types of market risk [text block] | Commodity price sensitivity 2018 2017 (in USD million) - 30% + 30% - 20% + 20% At 31 December Crude oil and refined products net gains (losses) 275 (230) 687 (606) Natural gas and electricity net gains (losses) 1,157 (1,156) 613 (613) |
Currency risk sensitivity [member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Sensitivity analysis for types of market risk [text block] | Currency risk sensitivity 2018 2017 (in USD million) - 9% + 9% - 8% + 8% At 31 December USD net gains (losses) (230) 230 119 (119) NOK net gains (losses) 311 (311) (94) 94 |
Interest rate sensitivity [member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Sensitivity analysis for types of market risk [text block] | Interest risk sensitivity 2018 2017 (in USD million) - 0.6 percentage points + 0.6 percentage points - 0.6 percentage points + 0.6 percentage points At 31 December Interest rate net gains (losses) 575 (575) 664 (664) |
Changes in accounting policies
Changes in accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies [abstract] | |
Initial application of IFRS 9, Equinor's financial instrument assets | Measurement Category Carrying Amount Original New Original New Difference (in USD million) (IAS 39) (IFRS 9) (IAS 39) (IFRS 9) Assets at 1 January 2018 Non-current derivative financial instruments Held for trading Fair value through profit or loss 1,603 1,603 - Non-current financial investments Loans and receivables Amortised cost 47 47 - Available for sale Fair value through profit or loss 397 397 - Fair value option Fair value through profit or loss 2,397 2,397 - Prepayments and other financial receivables Loans and receivables Amortised cost 723 723 - Non-financial assets Non-financial assets 188 188 - Trade and other receivables Loans and receivables Amortised cost 8,560 8,571 11 Non-financial assets Non-financial assets 865 865 - Current derivative financial instruments Held for trading Fair value through profit or loss 159 159 - Current financial investments Loans and receivables Amortised cost 4,085 4,085 - Held for trading Amortised cost 3,649 3,639 (10) Fair value option Fair value through profit or loss 714 714 - Cash and cash equivalents Loans and receivables Amortised cost 2,917 2,917 - Held for trading Fair value through profit or loss 381 381 - Held for trading Amortised cost 1,092 1,091 (1) Total 27,778 27,778 - |
Change in cashflow presentation, restatement of comparative periods | CONSOLIDATED STATEMENT OF CASH FLOWS 2017 2017 2017 (in USD million) Note as reported changes in presentation as restated Income/(loss) before tax 13,420 13,420 Depreciation, amortisation and net impairment losses 10 8,644 8,644 Exploration expenditures written off 11 (8) (8) (Gains) losses on foreign currency transactions and balances (453) 326 (127) (Gains) losses on sales of assets and businesses 4 395 395 (Increase) decrease in other items related to operating activities (391) (493) (884) (Increase) decrease in net derivative financial instruments 26 (596) 615 19 Interest received 282 (134) 148 Interest paid (622) (622) Cash flows provided by operating activities before taxes paid and working capital items 20,671 314 20,985 Taxes paid (5,766) (5,766) (Increase) decrease in working capital (542) 125 (417) Cash flows provided by operating activities 14,363 439 14,802 Cash used in business combinations 4 0 0 Capital expenditures and investments (10,755) (10,755) (Increase) decrease in financial investments 592 592 (Increase) decrease in derivative financial instruments (439) (439) (Increase) decrease in other items interest bearing 79 79 Proceeds from sale of assets and businesses 4 406 406 Cash flows used in investing activities (9,678) (439) (10,117) New finance debt 18 0 0 Repayment of finance debt (4,775) (4,775) Dividend paid 17 (1,491) (1,491) Net current finance debt and other 444 444 Cash flows provided by (used in) financing activities 18 (5,822) (5,822) Net increase (decrease) in cash and cash equivalents (1,137) (1,137) Effect of exchange rate changes on cash and cash equivalents 436 436 Cash and cash equivalents at the beginning of the period (net of overdraft) 16 5,090 5,090 Cash and cash equivalents at the end of the period (net of overdraft) 16 4,390 4,390 CONSOLIDATED STATEMENT OF CASH FLOWS 2016 2016 2016 (in USD million) Note as reported changes in presentation as restated Income/(loss) before tax (178) (178) Depreciation, amortisation and net impairment losses 10 11,550 11,550 Exploration expenditures written off 11 1,800 1,800 (Gains) losses on foreign currency transactions and balances (137) 257 120 (Gains) losses on sales of assets and businesses 4 (110) (110) (Increase) decrease in other items related to operating activities 1,076 (199) 877 (Increase) decrease in net derivative financial instruments 26 1,307 (109) 1,198 Interest received 280 (146) 134 Interest paid (548) (548) Cash flows provided by operating activities before taxes paid and working capital items 15,040 (197) 14,843 Taxes paid (4,386) (4,386) (Increase) decrease in working capital (1,620) (19) (1,639) Cash flows provided by operating activities 9,034 (216) 8,818 Capital expenditures and investments (12,191) (12,191) (Increase) decrease in financial investments 877 877 (Increase) decrease in derivative financial instruments 216 216 (Increase) decrease in other items interest bearing 107 107 Proceeds from sale of assets and businesses 4 761 761 Cash flows used in investing activities (10,446) 216 (10,230) New finance debt 18 1,322 1,322 Repayment of finance debt (1,072) (1,072) Dividend paid 17 (1,876) (1,876) Net current finance debt and other (333) (333) Cash flows provided by (used in) financing activities 18 (1,959) (1,959) Net increase (decrease) in cash and cash equivalents (3,371) (3,371) Effect of exchange rate changes on cash and cash equivalents (152) (152) Cash and cash equivalents at the beginning of the period (net of overdraft) 16 8,613 8,613 Cash and cash equivalents at the end of the period (net of overdraft) 16 5,090 5,090 |
Disclosure of condensed financi
Disclosure of condensed financial information related to guaruanteed debt securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of condensed financial information [abstract] | |
Disclosure of condensed consolidated income statement [Table Text Block] | CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2018 (in USD million) Revenues and other income 51,567 25,365 29,374 (27,004) 79,301 Net income/(loss) from equity accounted companies 7,832 1,065 262 (8,868) 291 Total revenues and other income 59,399 26,430 29,636 (35,872) 79,593 Total operating expenses (51,596) (10,138) (24,862) 27,140 (59,456) Net operating income/(loss) 7,803 16,292 4,774 (8,732) 20,137 Net financial items (1,300) (274) (505) 817 (1,263) Income/(loss) before tax 6,503 16,018 4,269 (7,916) 18,874 Income tax 219 (10,719) (786) (49) (11,335) Net income/(loss) 6,722 5,299 3,483 (7,965) 7,538 Other comprehensive income/(loss) (867) (334) (620) 140 (1,681) Total comprehensive income/(loss) 5,855 4,965 2,863 (7,825) 5,857 CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2017 (in USD million) Revenues and other income 39,750 20,579 22,204 (21,535) 60,999 Net income/(loss) from equity accounted companies 5,051 (401) 33 (4,495) 188 Total revenues and other income 44,801 20,178 22,237 (26,029) 61,187 Total operating expenses (39,570) (9,217) (20,022) 21,392 (47,416) Net operating income/(loss) 5,232 10,961 2,216 (4,637) 13,771 Net financial items 311 (378) 439 (724) (351) Income/(loss) before tax 5,543 10,583 2,655 (5,361) 13,420 Income tax (230) (8,094) (539) 40 (8,822) Net income/(loss) 5,314 2,489 2,116 (5,321) 4,598 Other comprehensive income/(loss) 1,017 355 878 (509) 1,741 Total comprehensive income/(loss) 6,330 2,843 2,995 (5,830) 6,339 CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2016 (in USD million) Revenues and other income 31,580 15,405 15,472 (16,464) 45,993 Net income/(loss) from equity accounted companies (2,726) (3,987) 26 6,567 (119) Total revenues and other income 28,854 11,418 15,498 (9,898) 45,873 Total operating expenses (31,784) (10,989) (19,364) 16,344 (45,793) Net operating income/(loss) (2,930) 429 (3,865) 6,446 80 Net financial items 728 (560) (115) (311) (258) Income/(loss) before tax (2,202) (131) (3,980) 6,135 (178) Income tax (407) (2,392) 97 (23) (2,724) Net income/(loss) (2,608) (2,523) (3,884) 6,113 (2,902) Other comprehensive income/(loss) (671) 153 (280) 441 (357) Total comprehensive income/(loss) (3,279) (2,370) (4,163) 6,553 (3,259) |
Disclosure of condensed consolidated Balance Sheet [Table Text Block] | CONDENSED CONSOLIDATED BALANCE SHEET Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group At 31 December 2018 (in USD million) ASSETS Property, plant, equipment and intangible assets 502 33,309 41,140 (17) 74,934 Equity accounted companies 46,828 23,668 1,697 (69,330) 2,863 Other non-current assets 2,741 381 5,572 (39) 8,655 Non-current receivables from subsidiaries 25,524 (0) 22 (25,547) 0 Total non-current assets 75,595 57,358 48,432 (94,933) 86,452 Current receivables from subsidiaries 2,379 6,529 13,215 (22,123) 0 Other current assets 13,082 927 4,780 (288) 18,501 Cash and cash equivalents 6,287 27 1,242 0 7,556 Total current assets 21,747 7,483 19,237 (22,411) 26,056 Total assets 97,342 64,841 67,668 (117,343) 112,508 EQUITY AND LIABILITIES Total equity 42,970 26,706 42,838 (69,524) 42,990 Non-current liabilities to subsidiaries 20 13,847 11,679 (25,547) (0) Other non-current liabilities 28,416 17,033 7,536 (71) 52,914 Total non-current liabilities 28,436 30,880 19,216 (25,618) 52,914 Other current liabilities 6,955 6,511 3,216 (78) 16,605 Current liabilities to subsidiaries 18,981 744 2,398 (22,123) (0) Total current liabilities 25,936 7,256 5,614 (22,201) 16,605 Total liabilities 54,372 38,135 24,830 (47,819) 69,519 Total equity and liabilities 97,342 64,841 67,668 (117,343) 112,508 CONDENSED CONSOLIDATED BALANCE SHEET Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group At 31 December 2017 (in USD million) ASSETS Property, plant, equipment and intangible assets 541 32,956 38,786 (25) 72,258 Equity accounted companies 42,625 21,593 1,311 (62,978) 2,551 Other non-current assets 3,851 346 4,989 (84) 9,102 Non-current receivables from subsidiaries 25,896 (0) 22 (25,918) 0 Total non-current assets 72,914 54,895 45,107 (89,005) 83,911 Current receivables from subsidiaries 2,448 2,615 14,215 (19,278) 0 Other current assets 16,165 923 5,582 (1,240) 21,430 Cash and cash equivalents 3,759 27 603 0 4,390 Total current assets 22,372 3,566 20,400 (20,517) 25,820 Assets classified as held for sale 0 0 1,369 0 1,369 Total assets 95,286 58,460 66,876 (109,523) 111,100 EQUITY AND LIABILITIES Total equity 39,861 20,813 42,634 (63,422) 39,885 Non-current liabilities to subsidiaries 19 14,682 11,263 (25,964) 0 Other non-current liabilities 29,070 16,145 7,104 (122) 52,197 Total non-current liabilities 29,090 30,827 18,367 (26,086) 52,198 Other current liabilities 9,242 5,879 4,632 (736) 19,017 Current liabilities to subsidiaries 17,094 941 1,243 (19,278) 0 Total current liabilities 26,335 6,821 5,874 (20,014) 19,017 Total liabilities 55,425 37,648 24,242 (46,100) 71,214 Total equity and liabilities 95,286 58,460 66,876 (109,523) 111,100 |
Disclosure of Condensed Cash Flow Statement [Table Text Block] | CONDENSED CONSOLIDATED CASH FLOW STATEMENT Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2018 (in USD million) Cash flows provided by (used in) operating activities 4,565 12,421 7,224 (4,516) 19,694 Cash flows provided by (used in) investing activities 1,046 (8,281) (6,649) 2,672 (11,212) Cash flows provided by (used in) financing activities (2,840) (4,140) 112 1,844 (5,024) Net increase (decrease) in cash and cash equivalents 2,771 0 687 0 3,458 Effect of exchange rate changes on cash and cash equivalents (243) 0 (49) 0 (292) Cash and cash equivalents at the beginning of the period (net of overdraft) 3,759 27 603 0 4,390 Cash and cash equivalents at the end of the period (net of overdraft) 6,287 27 1,242 0 7,556 Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2017 (in USD million) (restated*) Cash flows provided by (used in) operating activities 339 9,506 5,242 (286) 14,802 Cash flows provided by (used in) investing activities 3,227 (9,070) (4,718) 444 (10,117) Cash flows provided by (used in) financing activities (4,459) (478) (727) (158) (5,822) Net increase (decrease) in cash and cash equivalents (892) (42) (203) 0 (1,137) Effect of exchange rate changes on cash and cash equivalents 377 23 36 0 436 Cash and cash equivalents at the beginning of the period (net of overdraft) 4,274 46 770 0 5,090 Cash and cash equivalents at the end of the period (net of overdraft) 3,759 27 603 0 4,390 Equinor ASA Equinor Energy AS Non-guarantor subsidiaries Consolidation adjustments The Equinor group Full year 2016 (in USD million) (restated*) Cash flows provided by (used in) operating activities 3,158 7,262 1,517 (3,119) 8,818 Cash flows provided by (used in) investing activities (2,966) (6,785) (5,349) 4,869 (10,230) Cash flows provided by (used in) financing activities (3,308) (516) 3,616 (1,750) (1,959) Net increase (decrease) in cash and cash equivalents (3,116) (39) (216) 0 (3,371) Effect of exchange rate changes on cash and cash equivalents (81) (2) (69) 0 (152) Cash and cash equivalents at the beginning of the period (net of overdraft) 7,471 87 1,056 0 8,613 Cash and cash equivalents at the end of the period (net of overdraft) 4,274 46 770 0 5,090 * Related to a change in accounting policies, see note 27 Changes in accounting policies for more information |
Organisation (Details)
Organisation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | The Equinor group's business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products and other forms of energy. |
Segments - Segment Data (Detail
Segments - Segment Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | $ 79,301 | $ 60,999 | $ 45,993 | ||
Revenues inter-segment | 0 | 0 | 0 | ||
Net income/(loss) from equity accounted investments | 291 | 188 | (119) | ||
Total revenues and other income | 79,593 | 61,187 | 45,873 | ||
Purchases (net of inventory variation) | (38,516) | (28,212) | (21,505) | ||
Operating, selling, general and administrative expenses | (10,286) | (9,501) | (9,787) | ||
Depreciation, amortisation and net impairment losses | (9,249) | (8,644) | [1] | (11,550) | [1] |
Exploration expenses | (1,405) | (1,059) | (2,952) | ||
Net operating income/(loss) | 20,137 | 13,771 | 80 | ||
Additions to PP&E, intangibles and equity accounted investments | 15,201 | 10,795 | 14,125 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 2,863 | 2,551 | 2,245 | ||
Noncurrent Assets | 86,452 | 83,911 | 79,133 | ||
Exploration & Production Norway (E&P) [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | 588 | (23) | 184 | ||
Revenues inter-segment | 21,877 | 17,586 | 12,971 | ||
Net income/(loss) from equity accounted investments | 10 | 129 | (78) | ||
Total revenues and other income | 22,475 | 17,692 | 13,077 | ||
Purchases (net of inventory variation) | 2 | 0 | 1 | ||
Operating, selling, general and administrative expenses | (3,270) | (2,954) | (2,547) | ||
Depreciation, amortisation and net impairment losses | (4,370) | (3,874) | (5,698) | ||
Exploration expenses | (431) | (379) | (383) | ||
Net operating income/(loss) | 14,406 | 10,485 | 4,451 | ||
Additions to PP&E, intangibles and equity accounted investments | 6,947 | 4,869 | 6,786 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 1,102 | 1,133 | 1,133 | ||
Exploration & Production (E&P) International [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | 3,181 | 1,984 | 884 | ||
Revenues inter-segment | 9,186 | 7,249 | 5,873 | ||
Net income/(loss) from equity accounted investments | 31 | 22 | (100) | ||
Total revenues and other income | 12,399 | 9,256 | 6,657 | ||
Purchases (net of inventory variation) | (26) | (7) | (7) | ||
Operating, selling, general and administrative expenses | (3,006) | (2,804) | (2,923) | ||
Depreciation, amortisation and net impairment losses | (4,592) | (4,423) | (5,510) | ||
Exploration expenses | (973) | (681) | (2,569) | ||
Net operating income/(loss) | 3,802 | 1,341 | (4,352) | ||
Additions to PP&E, intangibles and equity accounted investments | 7,403 | 5,063 | 6,397 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 296 | 234 | 365 | ||
Marketing, Midstream and Processing (MMP) [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | 75,487 | 58,935 | 44,883 | ||
Revenues inter-segment | 291 | 83 | 35 | ||
Net income/(loss) from equity accounted investments | 16 | 53 | 61 | ||
Total revenues and other income | 75,794 | 59,071 | 44,979 | ||
Purchases (net of inventory variation) | (69,296) | (52,647) | (39,696) | ||
Operating, selling, general and administrative expenses | (4,377) | (3,925) | (4,439) | ||
Depreciation, amortisation and net impairment losses | (215) | (256) | (221) | ||
Exploration expenses | 0 | 0 | 0 | ||
Net operating income/(loss) | 1,906 | 2,243 | 623 | ||
Additions to PP&E, intangibles and equity accounted investments | 331 | 320 | 492 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 92 | 134 | 129 | ||
Other segment [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | 45 | 102 | 41 | ||
Revenues inter-segment | 2 | 1 | 1 | ||
Net income/(loss) from equity accounted investments | 234 | (16) | (3) | ||
Total revenues and other income | 280 | 87 | 39 | ||
Purchases (net of inventory variation) | 0 | 0 | 0 | ||
Operating, selling, general and administrative expenses | (288) | (235) | (340) | ||
Depreciation, amortisation and net impairment losses | (72) | (91) | (121) | ||
Exploration expenses | 0 | 0 | 0 | ||
Net operating income/(loss) | (79) | (239) | (423) | ||
Additions to PP&E, intangibles and equity accounted investments | 519 | 543 | 451 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 1,373 | 1,050 | 617 | ||
Eliminations [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenues third party and other income | 0 | 0 | 0 | ||
Revenues inter-segment | (31,355) | (24,919) | (18,880) | ||
Net income/(loss) from equity accounted investments | 0 | 0 | 0 | ||
Total revenues and other income | (31,355) | (24,919) | (18,880) | ||
Purchases (net of inventory variation) | 30,805 | 24,442 | 18,198 | ||
Operating, selling, general and administrative expenses | 653 | 418 | 463 | ||
Depreciation, amortisation and net impairment losses | 0 | 0 | 0 | ||
Exploration expenses | 0 | 0 | 0 | ||
Net operating income/(loss) | 103 | (59) | (219) | ||
Additions to PP&E, intangibles and equity accounted investments | 0 | 0 | 0 | ||
Balance sheet information [abstract] | |||||
Equity accounted investments | 0 | 0 | 0 | ||
Unallocated amounts [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 8,655 | 9,102 | 8,090 | ||
Segments [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 74,934 | 72,258 | 68,799 | ||
Segments [member] | Exploration & Production Norway (E&P) [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 30,762 | 30,278 | 27,816 | ||
Segments [member] | Exploration & Production (E&P) International [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 38,672 | 36,453 | 36,181 | ||
Segments [member] | Marketing, Midstream and Processing (MMP) [Member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 5,148 | 5,137 | 4,450 | ||
Segments [member] | Other segment [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | 353 | 390 | 352 | ||
Segments [member] | Eliminations [member] | |||||
Balance sheet information [abstract] | |||||
Noncurrent Assets | $ 0 | $ 0 | $ 0 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Segments - Non current assets b
Segments - Non current assets by country (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)Countries | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Disclosure of geographical areas [line items] | ||||
Non-current assets | [1] | $ 77,797 | $ 74,809 | $ 71,043 |
Minimum [member] | ||||
Disclosure of geographical areas [line items] | ||||
Number of countries with operating units | Countries | 30 | |||
Norway [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 34,952 | 34,588 | 31,484 | |
Percentage of entity's revenue | 75.00% | |||
United States [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 19,409 | 19,267 | 18,223 | |
Percentage of entity's revenue | 18.00% | |||
Brazil [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 7,861 | 4,584 | 5,308 | |
UK [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 4,588 | 4,222 | 3,108 | |
Angola [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,874 | 2,888 | 3,884 | |
Canada [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,546 | 1,715 | 1,494 | |
Azerbaijan [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,452 | 1,472 | 1,326 | |
Algeria [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 986 | 1,114 | 1,344 | |
Other countries [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 5,128 | $ 4,958 | $ 4,873 | |
[1] | Ex cluding deferred tax assets, pension assets and non-current financial assets. |
Segments - Revenues from contra
Segments - Revenues from contracts with customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | $ 77,734 | $ 60,971 | $ 45,688 |
Over/Under lift | 137 | 0 | 0 |
Taxes paid in kind | 865 | 0 | 0 |
Gain (loss) on commodity derivatives | (216) | 0 | 0 |
Other revenues | 36 | 0 | 0 |
Total other revenues | 821 | 0 | 0 |
Revenues | 78,555 | 60,971 | 45,688 |
Crude oil [member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | 40,948 | 29,519 | 24,307 |
Natural gas [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | 14,559 | 11,420 | 9,202 |
Refined products [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | 13,124 | 11,423 | 8,142 |
Natural gas liquids [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | 7,167 | 5,647 | 4,036 |
Trasnsportation [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | 1,033 | 0 | 0 |
Other sales [member] | |||
Disclosure of geographical areas [line items] | |||
Revenues from contracts with customers | $ 903 | $ 2,963 | $ 1 |
Acquisitions and divestments, a
Acquisitions and divestments, acquisitions (Details) € in Millions, kr in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||||||||||
Oct. 31, 2018 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2017 | Nov. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2018EUR (€) | Jul. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016SEK (kr) | Jun. 30, 2016USD ($) | Jan. 31, 2016SEK (kr) | Jan. 31, 2016USD ($) | |
Acquisitions [line items] | |||||||||||||||
Total Exploration expenditures | $ 2,715 | $ 2,685 | |||||||||||||
Equity accounted investments | 2,551 | 2,863 | $ 2,245 | ||||||||||||
Exploration & Production Norway (E&P) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Equity accounted investments | 1,133 | 1,102 | 1,133 | ||||||||||||
Marketing, Midstream and Processing (MMP) [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Equity accounted investments | 134 | 92 | 129 | ||||||||||||
Exploration & Production (E&P) International [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Equity accounted investments | 234 | 296 | 365 | ||||||||||||
Other segment [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Equity accounted investments | $ 1,050 | 1,373 | $ 617 | ||||||||||||
The Martin Linge field [Member] | Exploration & Production Norway (E&P) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 51.00% | ||||||||||||||
The Martin Linge field [Member] | Exploration & Production Norway (E&P) [member] | Maximum (%) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in associate | 70.00% | ||||||||||||||
The Martin Linge field [Member] | Exploration & Production Norway (E&P) [member] | Minimum (%) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in associate | 19.00% | ||||||||||||||
Garantiana discovery [Member] | Exploration & Production Norway (E&P) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 40.00% | ||||||||||||||
Martin Linge field and Garantiana discovery [Member] | Exploration & Production Norway (E&P) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Total purchase price | $ 1,541 | ||||||||||||||
Increase in property plant and equipment resulting from business combination | 1,418 | ||||||||||||||
Increase in intangible assets | 116 | ||||||||||||||
Goodwill | 265 | ||||||||||||||
Increase in deferred tax liability | 265 | ||||||||||||||
Increase in other assets | 7 | ||||||||||||||
Cobalt's North Platte interest in the Gulf of Mexico [Member] | Exploration & Production (E&P) International [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Contingent payments | 20 | ||||||||||||||
Total Exploration expenditures | $ 246 | ||||||||||||||
Cobalt's North Platte interest in the Gulf of Mexico [Member] | Exploration & Production (E&P) International [member] | Total operator [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in joint operation | 60.00% | ||||||||||||||
Cobalt's North Platte interest in the Gulf of Mexico [Member] | Exploration & Production (E&P) International [member] | Equinor and Total [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Total purchase price | $ 339 | ||||||||||||||
Cobalt's North Platte interest in the Gulf of Mexico [Member] | Exploration & Production (E&P) International [member] | Equinor [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in joint operation | 40.00% | ||||||||||||||
Roncador field [Member] | Exploration & Production (E&P) International [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 25.00% | ||||||||||||||
Increase in property plant and equipment resulting from business combination | $ 2,550 | ||||||||||||||
Increase in intangible assets | 392 | ||||||||||||||
Increase in provisions | 808 | ||||||||||||||
Cash consideration | 2,133 | ||||||||||||||
Contingent payments | $ 392 | ||||||||||||||
Danske Commodities (DC) [Member] | Marketing, Midstream and Processing (MMP) [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 100.00% | 100.00% | |||||||||||||
Total purchase price | € | € 400 | ||||||||||||||
BM-S-8 license [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in associate | 76.00% | ||||||||||||||
BM-S-8 license [member] | Barra Energia [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 10.00% | 10.00% | |||||||||||||
Total purchase price | $ 379 | ||||||||||||||
BM-S-8 license [member] | Exploration & Production (E&P) International [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 66.00% | ||||||||||||||
Increase in intangible assets | $ 2,271 | ||||||||||||||
QGEP [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 10.00% | ||||||||||||||
Increase in intangible assets | $ 362 | ||||||||||||||
The Carcara North block [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Bid in percentage of profit oil | 67.12% | ||||||||||||||
Signature bonus | $ 350 | ||||||||||||||
The Carcara North block [Member] | ExxonMobil [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Bid in percentage of profit oil | 40.00% | ||||||||||||||
The Carcara North block [Member] | Galp [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Bid in percentage of profit oil | 20.00% | ||||||||||||||
The Carcara North block [Member] | Equinor [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Bid in percentage of profit oil | 40.00% | ||||||||||||||
Lundin Petroleum [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Percentage of share acquired | 11.93% | 11.93% | |||||||||||||
Total purchase price | kr 4,600 | $ 541 | |||||||||||||
Ownership interest in associate | 20.10% | ||||||||||||||
Cash consideration | kr 544 | $ 64 | |||||||||||||
Gain relassified from comprehensive income to statement of income | $ 127 | ||||||||||||||
Lundin Petroleum [member] | Exploration & Production Norway (E&P) [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Equity accounted investments | $ 1,199 | ||||||||||||||
Rosebank project in UK [Member] | Exploration & Production (E&P) International [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in joint operation | 40.00% | ||||||||||||||
Rosebank project in UK [Member] | Exploration & Production (E&P) International [member] | Suncor Energy [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in joint operation | 40.00% | ||||||||||||||
Rosebank project in UK [Member] | Exploration & Production (E&P) International [member] | Siccar Point Energy [Member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Ownership interest in joint operation | 20.00% | ||||||||||||||
Lease OCS-A 0520 [Member] | Other segment [member] | |||||||||||||||
Acquisitions [line items] | |||||||||||||||
Bid amount | $ 135 |
Acquisitions and divestments, d
Acquisitions and divestments, divestitures (Details) shares in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Jul. 31, 2018 | Jun. 30, 2018USD ($) | Jan. 31, 2017CAD ($)shares | Jan. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2017USD ($)shares | |
Kai Kos Dehseh [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 100.00% | 100.00% | ||||||||
Portion of consideration in cash paid (received) | $ 431 | $ 328 | ||||||||
Fair value of shares and contingent consideration | $ 185 | $ 142 | ||||||||
Kai Kos Dehseh [Member] | Exploration & Production (E&P) International [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Gain (loss) on disposal of assets or discontinued operations | $ (351) | |||||||||
Kai Kos Dehseh [Member] | Athabasca oil [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Number of instruments or interests issued or issuable | shares | 100 | 100 | ||||||||
BM-S-8 license [member] | ExxonMobil [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Ownership interest in associates held for sale | 3.50% | |||||||||
BM-S-8 license [member] | Galp [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Ownership interest in associates held for sale | 3.00% | |||||||||
BM-S-8 license [member] | Exploration & Production (E&P) International [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 39.50% | |||||||||
Total consideration | $ 1,493 | |||||||||
Proceeds from divesture/sale | $ 1,016 | |||||||||
BM-S-8 license [member] | Exploration & Production (E&P) International [member] | Before reduction in interest | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of voting rights held in associate | 76.00% | |||||||||
BM-S-8 license [member] | Exploration & Production (E&P) International [member] | ExxonMobil [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 36.50% | |||||||||
BM-S-8 license [member] | Exploration & Production (E&P) International [member] | Galp [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 3.00% | |||||||||
Azeri-Chirag-Deepwater Gunashli agreement [Member] | Exploration & Production Norway (E&P) [member] | State Oil Fund of the Republic of Azerbaijan [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Noncurrent Payable for purchase of production sharing agreement | $ 3,600 | |||||||||
Azeri-Chirag-Deepwater Gunashli agreement [Member] | Exploration & Production (E&P) International [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Description of production sharing agreement terms | Azeri-Chirag-Deepwater Gunashli (ACG) production sharing agreement was extended by 25 years. | |||||||||
Noncurrent Payable for purchase of production sharing agreement | $ 349 | $ 349 | ||||||||
Payable period | over a period of 8 years | |||||||||
Azeri-Chirag-Deepwater Gunashli agreement [Member] | Exploration & Production (E&P) International [member] | Before reduction in interest | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of voting rights held in joint operation | 8.56% | |||||||||
Azeri-Chirag-Deepwater Gunashli agreement [Member] | Exploration & Production (E&P) International [member] | After reduction in interest [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of voting rights held in joint operation | 7.27% | |||||||||
Edvard Grieg Field [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Gain (loss) on disposal of assets or discontinued operations | $ 120 | |||||||||
Edvard Grieg Field [Member] | Exploration & Production Norway (E&P) [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Gain (loss) on disposal of assets or discontinued operations | 114 | |||||||||
Edvard Grieg Field [Member] | Marketing, Midstream and Processing (MMP) [Member] | ||||||||||
Divestments [Line Items] | ||||||||||
Gain (loss) on disposal of assets or discontinued operations | $ 5 | |||||||||
Edvard Grieg Field [Member] | Lundin Petroleum [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 15.00% | |||||||||
Edvard Grieg Oil Pipeline [Member] | Lundin Petroleum [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 9.00% | |||||||||
Utsira High Gas pipeline [Member] | Lundin Petroleum [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 6.00% | |||||||||
Marcellus operated onshore play [Member] | Exploration & Production (E&P) International [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proceeds from divesture/sale | $ 407 | |||||||||
King Lear discovery on the NCS shelf [Member] | Exploration & Production Norway (E&P) [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Proportion of ownership interest divested | 77.80% | |||||||||
Total consideration | $ 250 | $ 250 | ||||||||
Tommeliten discovery on the NCS [Member] | Exploration & Production Norway (E&P) [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Total consideration | 220 | $ 220 | ||||||||
Discoveries on NCS Shelf [Member] | Exploration & Production Norway (E&P) [member] | ||||||||||
Divestments [Line Items] | ||||||||||
Gain (loss) on disposal of assets or discontinued operations | $ 449 |
Financial risk management narra
Financial risk management narrative (Details) $ in Millions | Sep. 05, 2018 | Dec. 31, 2018USD ($)Core_Banks | Dec. 31, 2017USD ($) |
Disclosure of offsetting of financial assets [line items] | |||
Credit facility maturity date | September 2028 | ||
Liquidity risk [member] | |||
Disclosure of offsetting of financial assets [line items] | |||
Commercial Papers Programme | $ 5,000 | ||
Revolving credit facility | $ 5,000 | ||
Number of banks | Core_Banks | 21 | ||
Credit facility maturity date | maturing in 2022 | ||
Description of strategy for managing liquidity risk | Equinor raises debt in all major capital markets (US, 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. | ||
Maximum Percentage Of Repayment Of Long Term Funding | 5.00% | ||
Maturity Profile Of Debt Funding Repayment | 5 years | ||
Non-current liabilities weighted average maturity | 9 years | ||
Credit risk [member] | |||
Disclosure of offsetting of financial assets [line items] | |||
Cash held as collateral | $ 213 | $ 704 | |
Liabilities not offsetting under netting arrangements | 655 | 706 | |
Financial instruments offset under netting arrangements | $ 119 | 141 | |
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 | 2.00% | ||
Financial instruments offset under netting arrangements | $ 557 | $ 502 |
Financial risk management - Und
Financial risk management - Undiscounted contractual cash flows (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | $ 43,064 | $ 47,114 |
Derivative financial liabilities | 2,488 | 1,107 |
Year 1 [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | 12,020 | 14,502 |
Derivative financial liabilities | 271 | 166 |
Year 2 and 3 [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | 5,624 | 5,246 |
Derivative financial liabilities | 677 | 85 |
Year 4 and 5 [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | 5,042 | 4,441 |
Derivative financial liabilities | 203 | 369 |
Year 6 to 10 [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | 10,761 | 11,630 |
Derivative financial liabilities | 611 | 283 |
After 10 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non-derivative financial liabilities | 9,617 | 11,294 |
Derivative financial liabilities | $ 725 | $ 204 |
Financial risk management - Cre
Financial risk management - Credit risk exposure and grading (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 to be formally identified and assigned internal credit ratings as well as exposure limits. 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. All counterparties are re-assessed regularly. | |
Non-current financial receivable [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | $ 854 | $ 723 |
Trade and other receivables [member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 8,488 | 8,560 |
Non-current derivative financial instruments [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 1,032 | 1,603 |
Current derivative financial instrument [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 318 | 159 |
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 | 460 | 262 |
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 | 1,811 | 2,148 |
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 | 682 | 1,079 |
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 | 100 | 84 |
Other investment grade [Member] | Non-current financial receivable [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 150 | 214 |
Other investment grade [Member] | Trade and other receivables [member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 5,412 | 6,135 |
Other investment grade [Member] | Non-current derivative financial instruments [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 350 | 525 |
Other investment grade [Member] | Current derivative financial instrument [Member] | ||
Disclosure of internal credit grades [line items] | ||
Financial assets subject to credit exposure | 183 | 71 |
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 | 244 | 247 |
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 | 1,265 | 278 |
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 | 0 | 0 |
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 | $ 35 | $ 5 |
Remuneration (Details)
Remuneration (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Employees | Dec. 31, 2017USD ($)Employees | Dec. 31, 2016USD ($)Employees | |
Renumeration [abstract] | |||
Salaries | $ 2,863 | $ 2,671 | $ 2,576 |
Pension costs | 463 | 469 | 650 |
Payroll tax | 409 | 387 | 394 |
Other compensations and social costs | 318 | 290 | 276 |
Total payroll costs | $ 4,052 | $ 3,818 | $ 3,895 |
Average number of employees | Employees | 20,700 | 20,700 | 21,300 |
Part time employees as percentage of total employees | 3.00% | 3.00% | 3.00% |
Remuneration to members of the BoD and the CEC [abstract] | |||
Current employee benefits | $ 12,471 | $ 11,067 | $ 9,270 |
Post-employment benefits | 667 | 636 | 574 |
Other non-current benefits | 21 | 25 | 19 |
Share-based payment benefits | 197 | 175 | 102 |
Total compensation expense | 13,356 | 11,902 | 9,966 |
Loans to the members of the BoD or the CEC | 0 | $ 0 | $ 0 |
Compensation cost yet to be expensed | 153 | ||
2019 programme [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Estimated compensation expense | 73 | ||
2018 programme [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Estimated compensation expense | 72 | ||
2017 programme [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Estimated compensation expense | 62 | ||
2016 programme [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Estimated compensation expense | $ 61 |
Other expenses (Details)
Other expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Auditor's remuneration [abstract] | |||
Audit fee | $ 7.1 | $ 6.1 | $ 6.5 |
Audit related fee | 1 | 0.9 | 1 |
Tax fee | 0 | 0 | 0.1 |
Other service fee | 0 | 0 | 0 |
Total | 8.1 | 7 | 7.5 |
Disclosure of operating segments [line items] | |||
Research and development expenditures | 315 | 307 | 298 |
Statoil operated licences [Member] | |||
Disclosure of operating segments [line items] | |||
The audit fees and audit related fees | $ 0.9 | $ 0.8 | $ 0.8 |
Financial items (Details)
Financial items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finance Income Expense [Abstract] | |||
Foreign exchange gains (losses) derivative financial instruments | $ 149 | $ (920) | $ 353 |
Other foreign exchange gains (losses) | (315) | 1,046 | (473) |
Net foreign exchange gains (losses) | (166) | 126 | (120) |
Dividends received | 150 | 63 | 46 |
Gains (losses) financial investments | (72) | 108 | 0 |
Interest income on other financial assets | 45 | 64 | 63 |
Interest income non-current financial receivables | 27 | 24 | 22 |
Interest income current financial assets and other financial items | 132 | 228 | 305 |
Interest income and other financial items | 283 | 487 | 436 |
Gains (losses) derivative financial instruments | (341) | (61) | 470 |
Interest expense bonds and bank loans and net interest on related derivatives | (922) | (1,004) | (830) |
Interest expense finance lease liabilities | (23) | (26) | (26) |
Capitalised borrowing costs | 552 | 454 | 355 |
Accretion expense asset retirement obligations | (461) | (413) | (420) |
Interest expense current financial liabilities and other finance expense | (185) | 86 | (122) |
Interest and other finance expenses | (1,040) | (903) | (1,043) |
Net financial items | (1,263) | (351) | (258) |
Interest expense | 868 | 1,084 | 1,018 |
Net interest income | 55 | ||
Net interest on related derivatives from the held for trading category | 80 | 188 | |
Income from release of a provision | 319 | ||
Fair value gain (loss) from the trading instruments held | (357) | (77) | 454 |
Net foreign exchange gain | $ 427 | ||
Net foreign exchange loss | $ 422 | $ 205 |
Income taxes - Significant comp
Income taxes - Significant components of income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax (expense) income [abstract] | |||
Current income tax expense in respect of current year | $ (10,724) | $ (7,680) | $ (3,869) |
Prior period adjustments | (49) | (124) | (158) |
Current income tax expense | (10,773) | (7,805) | (4,027) |
Origination and reversal of temporary differences | (1,359) | (904) | 1,372 |
Recognition of previously unrecognised deferred tax assets | 923 | 0 | 0 |
Change in tax regulations | (28) | (14) | (50) |
Prior period adjustments | (99) | (100) | (20) |
Deferred tax expense | (563) | (1,017) | 1,302 |
Income tax expense | $ (11,335) | $ (8,822) | $ (2,724) |
Income taxes - Reconciliation o
Income taxes - Reconciliation of statutory tax rate to effective tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||||
Income/(loss) before tax | $ 18,874 | $ 13,420 | $ (178) | ||
Calculated income tax at statutory rate | (5,197) | (3,827) | 676 | ||
Calculated Norwegian Petroleum tax | (8,189) | (5,945) | (2,250) | ||
Tax effect uplift | 736 | 784 | 812 | ||
Tax effect of permanent differences regarding divestments | 400 | (85) | 153 | ||
Tax effect of permanent differences caused by functional currency different from tax currency | 116 | (229) | (356) | ||
Tax effect of other permanent differences | 337 | 291 | (48) | ||
Tax effect of dispute with Angolan Ministry of Finance | 0 | (496) | 0 | ||
Recognition of previously unrecognised deferred tax assets | 923 | 0 | 0 | ||
Change in unrecognised deferred tax assets | 72 | (169) | (1,625) | ||
Change in tax regulations | (28) | (14) | (50) | ||
Prior period adjustments | (148) | (224) | (177) | ||
Other items including currency effects | (357) | 100 | 141 | ||
Income tax expense | $ (11,335) | $ (8,822) | $ (2,724) | ||
Effective tax rate | 60.10% | 65.70% | |||
Applicable tax rate | 27.50% | 28.50% | 379.80% | ||
Petroleum tax rate | 55.00% | ||||
Petroleum rate, next fiscal year | 56.00% | ||||
Uplift rate | 5.30% | 5.40% | 5.50% | 5.50% | 5.50% |
Uplift rate, new investments, next fiscal year | 5.20% | ||||
Uplift rate, for investments subject to transitional rules | 7.50% | ||||
Unrecognised uplift credits | $ 1,780 | $ 2,003 | |||
Development and Production International [Member] | |||||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||||
Recognition of previously unrecognised deferred tax assets | $ 923 | ||||
Minimum [member] | |||||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||||
Effective tax rate | 100.00% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | $ 16,205 | $ 14,302 | ||
Deferred tax liabilities | (21,573) | (19,515) | ||
Net asset (liability) | (5,367) | (5,213) | $ (4,231) | $ (5,399) |
Tax losses carried forward [member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 5,761 | 4,459 | ||
Deferred tax liabilities | 0 | 0 | ||
Net asset (liability) | 5,761 | 4,459 | ||
Property, plant and equipment and intangible assets [Member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 351 | 259 | ||
Deferred tax liabilities | (20,987) | (19,027) | ||
Net asset (liability) | (20,636) | (18,768) | ||
Asset removal obligation [member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 8,118 | 8,049 | ||
Deferred tax liabilities | 0 | 0 | ||
Net asset (liability) | 8,118 | 8,049 | ||
Pensions [member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 785 | 738 | ||
Deferred tax liabilities | (14) | (11) | ||
Net asset (liability) | 771 | 728 | ||
Derivatives [member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 95 | 34 | ||
Deferred tax liabilities | (96) | (27) | ||
Net asset (liability) | (1) | 7 | ||
Other [Member] | ||||
Deferred tax assets and liabilities [abstract] | ||||
Deferred tax assets | 1,095 | 763 | ||
Deferred tax liabilities | (476) | (451) | ||
Net asset (liability) | $ 620 | $ 312 |
Income taxes - Changes in Defer
Income taxes - Changes in Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in net deferred tax liability during the year [abstract] | |||
Net deferred tax liability beginning balance | $ 5,213 | $ 4,231 | $ 5,399 |
Charged (credited) to the Consolidated statement of income | 563 | 1,017 | (1,302) |
Other comprehensive income | (22) | 38 | (129) |
Translation differences and other | (386) | (73) | 264 |
Net deferred tax liability ending balance | 5,367 | 5,213 | $ 4,231 |
Net deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | 3,304 | 2,441 | |
Deferred tax liabilities | 8,671 | 7,654 | |
Deferred tax assets recognized in entities which have suffered a loss in either the current or preceding period | $ 1,868 | $ 924 |
Income taxes - Unrecognised def
Income taxes - Unrecognised deferred tax assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognised deferred tax assets [line items] | ||
Deductible temporary differences, basis | $ 2,439 | $ 3,415 |
Tax losses carried forward, basis | 14,802 | 17,412 |
Total, unrecognised deferred tax assets, basis | 17,241 | 20,827 |
Deductible temporary differences, unrecognised deferred tax asset | 1,123 | 1,409 |
Tax losses carried forward, unrecognised deferred tax asset | 3,940 | 4,661 |
Total unrecognised deferred tax assets | $ 5,062 | 6,070 |
Unrecognised tax losses expiry date | The majority of the remaining part of the unrecognised tax losses expire after 2029. | |
United States [member] | ||
Unrecognised deferred tax assets [line items] | ||
Total unrecognised deferred tax assets | $ 3,480 | 3,559 |
Angola [member] | ||
Unrecognised deferred tax assets [line items] | ||
Total unrecognised deferred tax assets | $ 884 | $ 879 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | $ 63,637 | ||
Property plant and equipment ending | 65,262 | $ 63,637 | |
Assets transferred to Property, plant and equipment from Intangible assets | 161 | 401 | |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 188,656 | 172,579 | |
Additions through business combinations | 3,968 | ||
Additions and transfers | 10,144 | 10,727 | |
Disposals at cost | (884) | (374) | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (6,967) | 5,724 | |
Property plant and equipment ending | 194,916 | 188,656 | |
Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | (125,019) | (113,023) | |
Depreciation | (9,841) | (9,688) | |
Impairment losses | (794) | (917) | |
Reversal of impairment losses | 1,398 | 1,972 | |
Transfers | (961) | (53) | |
Accumulated depreciation and impairment disposed assets | 980 | 323 | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 4,583 | (3,634) | |
Property plant and equipment ending | (129,654) | (125,019) | |
Machinery, equipment and transportation equipment, including vessels [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 617 | ||
Property plant and equipment ending | $ 794 | $ 617 | |
Machinery, equipment and transportation equipment, including vessels [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, including vessels [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, including vessels [Member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | $ 3,470 | $ 3,394 | |
Additions through business combinations | 76 | ||
Additions and transfers | 90 | 56 | |
Disposals at cost | (12) | (7) | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (28) | 27 | |
Property plant and equipment ending | 3,596 | 3,470 | |
Machinery, equipment and transportation equipment, including vessels [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | (2,853) | (2,767) | |
Depreciation | (137) | (122) | |
Impairment losses | 0 | 0 | |
Reversal of impairment losses | 155 | 48 | |
Transfers | 0 | 0 | |
Accumulated depreciation and impairment disposed assets | 12 | 5 | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 21 | (17) | |
Property plant and equipment ending | (2,802) | (2,853) | |
Production plants and oil and gas assets [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 43,753 | ||
Property plant and equipment ending | $ 47,177 | $ 43,753 | |
Estimated useful lives (years) | UoP | UoP | [1] |
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 | $ 157,533 | $ 142,750 | |
Additions through business combinations | 2,473 | ||
Additions and transfers | 13,017 | 10,181 | |
Disposals at cost | (505) | 0 | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (5,752) | 4,602 | |
Property plant and equipment ending | 166,766 | 157,533 | |
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 | (113,781) | (100,971) | |
Depreciation | (9,249) | (9,051) | |
Impairment losses | (762) | (917) | |
Reversal of impairment losses | 1,087 | 935 | |
Transfers | (1,799) | (422) | |
Accumulated depreciation and impairment disposed assets | 602 | (24) | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 4,312 | (3,331) | |
Property plant and equipment ending | (119,589) | (113,781) | |
Refining and manufacturing plants [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 2,446 | ||
Property plant and equipment ending | $ 2,048 | $ 2,446 | |
Refining and manufacturing plants [member] | Maximum [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives (years) | 20 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 | $ 8,646 | $ 8,262 | |
Additions through business combinations | 0 | ||
Additions and transfers | 328 | 331 | |
Disposals at cost | 0 | (288) | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (314) | 342 | |
Property plant and equipment ending | 8,660 | 8,646 | |
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 | (6,200) | (5,772) | |
Depreciation | (426) | (485) | |
Impairment losses | 0 | 0 | |
Reversal of impairment losses | 0 | 0 | |
Transfers | (229) | (1) | |
Accumulated depreciation and impairment disposed assets | 0 | 285 | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 242 | (227) | |
Property plant and equipment ending | (6,613) | (6,200) | |
Land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 427 | ||
Property plant and equipment ending | $ 467 | $ 427 | |
Land and buildings [member] | Maximum [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives (years) | 33 years | 33 years | |
Land and buildings [member] | Minimum [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives (years) | 20 years | 20 years | |
Land and buildings [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | $ 866 | $ 859 | |
Additions through business combinations | 48 | ||
Additions and transfers | 32 | 47 | |
Disposals at cost | (1) | (50) | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (13) | 10 | |
Property plant and equipment ending | 932 | 866 | |
Land and buildings [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | (439) | (446) | |
Depreciation | (29) | (29) | |
Impairment losses | 0 | 0 | |
Reversal of impairment losses | 0 | 0 | |
Transfers | (1) | 0 | |
Accumulated depreciation and impairment disposed assets | 0 | 39 | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 4 | (4) | |
Property plant and equipment ending | (465) | (439) | |
Assets under development [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 16,394 | ||
Property plant and equipment ending | 14,776 | 16,394 | |
Assets under development [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | 18,140 | 17,315 | |
Additions through business combinations | 1,370 | ||
Additions and transfers | (3,322) | 111 | |
Disposals at cost | (366) | (30) | |
Assets reclassified to held for sale | 0 | 0 | |
Effect of changes in foreign exchange | (861) | 743 | |
Property plant and equipment ending | 14,961 | 18,140 | |
Assets under development [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | (1,746) | (3,068) | |
Depreciation | 0 | 0 | |
Impairment losses | (32) | 0 | |
Reversal of impairment losses | 156 | 989 | |
Transfers | 1,067 | 370 | |
Accumulated depreciation and impairment disposed assets | 366 | 18 | |
Accumulated depreciation and impairment assets classified as HFS | 0 | ||
Effect of changes in foreign exchange | 5 | (55) | |
Property plant and equipment ending | $ (185) | $ (1,746) | |
[1] | Depreciation according to unit of production method (UoP) , see note 2 Significant accounting policies . Land is not depreciated . |
Property, plant and equipment -
Property, plant and equipment -Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | $ (315) | $ (1,137) |
Acquisition costs related to oil and gas prospects [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | 52 | 245 |
Producing and development assets [Member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | (367) | (1,381) |
Property Plant And Equipment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | (604) | (1,056) |
Property Plant And Equipment [member] | Acquisition costs related to oil and gas prospects [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | 0 | 0 |
Property Plant And Equipment [member] | Producing and development assets [Member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | (604) | (1,056) |
Intangible assets [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | 289 | (81) |
Intangible assets [member] | Acquisition costs related to oil and gas prospects [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | 52 | 245 |
Intangible assets [member] | Producing and development assets [Member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Total net impairment loss/ (reversal) recognized | $ 237 | $ (326) |
Property, plant and equipment_3
Property, plant and equipment -impairment of carrying amount of impaired asset (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Base discount rate for VIU calculations, net of tax | 6.00% | |
Carrying amount after impairment | $ 13,813 | $ 11,578 |
Net impairement loss (Reversal) | $ (367) | (1,381) |
High range value [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Derived pretax Discount rate range | 12.00% | |
Low range value [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Derived pretax Discount rate range | 7.00% | |
Exploration & Production Norway (E&P) [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Net impairement loss (Reversal) | $ 604 | 906 |
VIU [Member] | North Africa [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 451 | 0 |
Net impairement loss (Reversal) | (126) | 0 |
VIU [Member] | North America, offshore Gulf of Mexico [Member] | Conventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 3,989 | 1,200 |
Net impairement loss (Reversal) | (246) | (17) |
VIU [Member] | North America [member] | Unconventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 5,771 | 5,017 |
Net impairement loss (Reversal) | 762 | (1,266) |
VIU [Member] | Exploration & Production Norway (E&P) [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 1,966 | 2,169 |
Net impairement loss (Reversal) | (201) | (826) |
VIU [Member] | 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 | 403 | 263 |
Net impairement loss (Reversal) | (155) | (48) |
FVLCOD [Member] | North Africa [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 0 | 0 |
Net impairement loss (Reversal) | 0 | 0 |
FVLCOD [Member] | North America, offshore Gulf of Mexico [Member] | Conventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 0 | 0 |
Net impairement loss (Reversal) | 0 | 0 |
FVLCOD [Member] | North America [member] | Unconventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 0 | 1,422 |
Net impairement loss (Reversal) | 0 | 856 |
FVLCOD [Member] | Exploration & Production Norway (E&P) [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Carrying amount after impairment | 1,232 | 1,507 |
Net impairement loss (Reversal) | (402) | (80) |
FVLCOD [Member] | 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 | 0 | 0 |
Net impairement loss (Reversal) | $ 0 | $ 0 |
Property, plant and equipment_4
Property, plant and equipment -impairment (narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Net impairement loss (Reversal) | $ (367) | $ (1,381) |
North America, offshore Gulf of Mexico [Member] | Conventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Impairment reversals | 246 | 17 |
North America [member] | Unconventional assets [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Impairment reversals | 410 | |
Net impairment loss | 762 | |
Net Impairment loss recognissed as exploaration expense | 237 | |
North Africa [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Impairment reversals | 126 | |
Exploration & Production Norway (E&P) [member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Net impairement loss (Reversal) | 604 | 906 |
Marketing, Midstream and Processing (MMP) [Member] | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Impairment reversals | $ 155 | $ 48 |
Property, plant and equipment_5
Property, plant and equipment -price assumptions used for impairment calculations (Details) $ in Billions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / bbl$ / MMBTU | Dec. 31, 2017$ / bbl$ / MMBTU | |
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Description of changes in methods and assumptions used in preparing sensitivity analysis | This illustrative impairment sensitivity assumes no changes to input factors other than prices; however, a price reduction of 20% is likely to result in changes in business plans as well as other factors used when estimating an asset’s recoverable amount. | |
Estimated impairment loss due to decline in commodity prices | $ | $ 8 | |
Percentage of estimated decline in commodity prices | 20.00% | |
Brent Blend [Member] | 2019 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | $ / bbl | 62 | 66 |
Brent Blend [Member] | 2021 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | $ / bbl | 66 | 70 |
Brent Blend [Member] | 2025 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | $ / bbl | 77 | 80 |
Brent Blend [Member] | 2030 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | $ / bbl | 80 | 84 |
NBP Natural Gas Price [Member] | 2019 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 7.7 | 6.7 |
NBP Natural Gas Price [Member] | 2021 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 7.4 | 6.8 |
NBP Natural Gas Price [Member] | 2025 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 8 | 8.4 |
NBP Natural Gas Price [Member] | 2030 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 8 | 8.4 |
Henry Hub Natural Gas Price [Member] | 2019 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 3.1 | 3.4 |
Henry Hub Natural Gas Price [Member] | 2021 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 3.2 | 3.7 |
Henry Hub Natural Gas Price [Member] | 2025 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 4 | 4.2 |
Henry Hub Natural Gas Price [Member] | 2030 [member] | ||
Price Assumptions Used For Impairment Calculations [Line Items] | ||
Estimated crude oil or Gas price per unit | 4 | 4.2 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | $ 8,621 | ||
Expensed exploration expenditures previously capitalised | (357) | $ 8 | $ (1,800) |
Intangibles ending | $ 9,672 | 8,621 | |
Intangible assets finite useful lives | 10-20 years | ||
Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | $ 8,836 | 9,438 | |
Additions through business combinations | 773 | ||
Additions other than through business combination | 1,302 | ||
Addiitons including through business combinations | 1,109 | ||
Disposals at cost | (364) | (26) | |
Increase (decrease) through transfers, intangible assets and goodwill | (161) | (401) | |
Assets reclassified to held for sale | 0 | (1,369) | |
Expensed exploration expenditures previously capitalised | (357) | 8 | |
Effect of changes in foreign exchange | (128) | 77 | |
Intangibles ending | 9,901 | 8,836 | 9,438 |
Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | (215) | (195) | |
Amortisation and impairments for the year | (13) | (12) | |
Amortisation and impairment losses disposed intangible assets | (2) | (6) | |
Effect of changes in foreign exchange | 1 | (2) | |
Intangibles ending | (229) | (215) | (195) |
Exploration expenses [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 2,715 | ||
Intangibles ending | 2,685 | 2,715 | |
Exploration expenses [Member] | US Gulf of Mexico and South America [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairments, intangible assets | 52 | ||
Exploration expenses [Member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 2,715 | 2,856 | |
Additions through business combinations | 0 | ||
Additions other than through business combination | 392 | ||
Addiitons including through business combinations | 154 | ||
Disposals at cost | (272) | 0 | |
Increase (decrease) through transfers, intangible assets and goodwill | (13) | (276) | |
Assets reclassified to held for sale | 0 | 0 | |
Expensed exploration expenditures previously capitalised | (68) | (73) | |
Effect of changes in foreign exchange | (70) | 56 | |
Intangibles ending | 2,685 | 2,715 | 2,856 |
Acquisition costs related to oil and gas prospects [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 5,363 | ||
Intangibles ending | 5,854 | 5,363 | |
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 | 5,363 | 5,907 | |
Additions through business combinations | 116 | ||
Additions other than through business combination | 917 | ||
Addiitons including through business combinations | 861 | ||
Disposals at cost | (89) | 0 | |
Increase (decrease) through transfers, intangible assets and goodwill | (148) | (124) | |
Assets reclassified to held for sale | 0 | (1,369) | |
Expensed exploration expenditures previously capitalised | (289) | 81 | |
Effect of changes in foreign exchange | (17) | 6 | |
Intangibles ending | 5,854 | 5,363 | 5,907 |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 339 | ||
Intangibles ending | 565 | 339 | |
Goodwill [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 339 | 328 | |
Additions through business combinations | 265 | ||
Additions other than through business combination | 0 | ||
Addiitons including through business combinations | 0 | ||
Disposals at cost | 0 | 0 | |
Increase (decrease) through transfers, intangible assets and goodwill | 0 | 0 | |
Assets reclassified to held for sale | 0 | 0 | |
Expensed exploration expenditures previously capitalised | 0 | 0 | |
Effect of changes in foreign exchange | (39) | 11 | |
Intangibles ending | 565 | 339 | 328 |
Goodwill [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 0 | 0 | |
Amortisation and impairments for the year | 0 | 0 | |
Amortisation and impairment losses disposed intangible assets | 0 | 0 | |
Effect of changes in foreign exchange | 0 | 0 | |
Intangibles ending | 0 | 0 | 0 |
Other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 204 | ||
Intangibles ending | 568 | 204 | |
Other intangible assets [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | 419 | 346 | |
Additions through business combinations | 392 | ||
Additions other than through business combination | (7) | ||
Addiitons including through business combinations | 94 | ||
Disposals at cost | (4) | (26) | |
Increase (decrease) through transfers, intangible assets and goodwill | 0 | 0 | |
Assets reclassified to held for sale | 0 | 0 | |
Expensed exploration expenditures previously capitalised | 0 | 0 | |
Effect of changes in foreign exchange | (2) | 4 | |
Intangibles ending | 797 | 419 | 346 |
Other intangible assets [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangibles beginning | (215) | (195) | |
Amortisation and impairments for the year | (13) | (12) | |
Amortisation and impairment losses disposed intangible assets | (2) | (6) | |
Effect of changes in foreign exchange | 1 | (2) | |
Intangibles ending | (229) | $ (215) | $ (195) |
Signature bonuses and acquisition costs [Member] | North America [member] | Unconventional assets [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairments, intangible assets | $ 237 |
Intangible assets - Exploration
Intangible assets - Exploration expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible exploration and evaluation assets | $ 2,685 | $ 2,715 | |
Exploration expenditures | 1,438 | 1,234 | $ 1,437 |
Expensed exploration expenditures previously capitalised | 357 | (8) | 1,800 |
Capitalised exploration | (390) | (167) | (285) |
Exploration expenses | 1,405 | 1,059 | $ 2,952 |
Less than one year [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible exploration and evaluation assets | 392 | 218 | |
Between one and five years [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible exploration and evaluation assets | 1,406 | 1,799 | |
More than five years [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible exploration and evaluation assets | $ 887 | $ 698 |
Equity accounted investment - c
Equity accounted investment - continuity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | |||
Inevestments, beginning | $ 2,551 | $ 2,245 | |
Net income/(loss) from equity accounted investments | 291 | 188 | $ (119) |
Acqusitions and increase in paid in capital | 548 | ||
Dividends and other distributions | (275) | ||
Other comprehensive income / (loss) | (70) | ||
Divestments, derecognition and decrease in paid in capital | (183) | ||
Investments, ending | 2,863 | 2,551 | $ 2,245 |
Lundin Petroleum AB [Member] | |||
Disclosure of associates [line items] | |||
Inevestments, beginning | 1,125 | ||
Net income/(loss) from equity accounted investments | 10 | 126 | |
Acqusitions and increase in paid in capital | 0 | ||
Dividends and other distributions | (31) | ||
Other comprehensive income / (loss) | (5) | ||
Divestments, derecognition and decrease in paid in capital | 0 | ||
Investments, ending | 1,100 | 1,125 | |
Other equity accounted investments [Member] | |||
Disclosure of associates [line items] | |||
Inevestments, beginning | 1,426 | ||
Net income/(loss) from equity accounted investments | 281 | ||
Acqusitions and increase in paid in capital | 548 | ||
Dividends and other distributions | (244) | ||
Other comprehensive income / (loss) | (66) | ||
Divestments, derecognition and decrease in paid in capital | (183) | ||
Investments, ending | $ 1,763 | $ 1,426 |
Equity accounted investments -
Equity accounted investments - summary of financial information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of associates [line items] | |||||
Current Assets | $ 26,056 | $ 25,820 | |||
Noncurrent Assets | 86,452 | 83,911 | $ 79,133 | ||
Current Liabilities | (16,605) | (19,017) | |||
Noncurrent Liabilities | (52,914) | (52,198) | |||
Net asests, equity method investments | 2,863 | 2,551 | 2,245 | ||
Revenue | 79,593 | 61,187 | 45,873 | ||
Income / (loss) before tax | 18,874 | 13,420 | [1] | (178) | [1] |
Net income/ (loss) | 291 | 188 | (119) | ||
Capital expenditures | 11,367 | 10,755 | [1] | $ 12,191 | [1] |
Equinor's quoted market value | $ 1,691 | 1,565 | |||
Lundin Petroleum AB [Member] | |||||
Disclosure of associates [line items] | |||||
Ownership | 20.10% | ||||
Current Assets | $ 79 | 101 | |||
Noncurrent Assets | 3,010 | 2,920 | |||
Current Liabilities | (58) | (62) | |||
Noncurrent Liabilities | (1,931) | (1,834) | |||
Net asests, equity method investments | 1,100 | 1,125 | |||
Revenue | 495 | 376 | |||
Income / (loss) before tax | 225 | 226 | |||
Net income/ (loss) | 10 | 126 | |||
Capital expenditures | $ 231 | $ 250 | |||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Financial investments and non_3
Financial investments and non-current prepayments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial investments | $ 2,455 | $ 2,841 |
Prepayments and financial receivables | 1,033 | 912 |
Current Financial Assets | 7,041 | 8,448 |
Bond Investment [Member] | ||
Disclosure of financial assets [line items] | ||
Financial investments | 1,261 | 1,611 |
Listed equity securities [member] | ||
Disclosure of financial assets [line items] | ||
Financial investments | 530 | 619 |
Non-listed equity securities [member] | ||
Disclosure of financial assets [line items] | ||
Financial investments | 664 | 611 |
Financial receivables interest bearing [Member] | ||
Disclosure of financial assets [line items] | ||
Prepayments and financial receivables | 345 | 716 |
Prepayments and other non-interest bearing receivables [Member] | ||
Disclosure of financial assets [line items] | ||
Prepayments and financial receivables | 688 | 196 |
Time deposits [member] | ||
Disclosure of financial assets [line items] | ||
Current Financial Assets | 4,129 | 4,111 |
Interest bearing securities [Member] | ||
Disclosure of financial assets [line items] | ||
Current Financial Assets | 2,912 | 4,337 |
Investment portfolios [Member] | ||
Disclosure of financial assets [line items] | ||
Current Financial Assets | $ 896 | $ 714 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of current inventories [abstract] | ||
Crude oil | $ 1,173 | $ 2,323 |
Petroleum products | 345 | 596 |
Natural gas | 274 | 149 |
Other | 351 | 330 |
Inventories | 2,144 | 3,398 |
Inventory write-down | $ 164 | $ 32 |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other receivables [abstract] | ||
Trade receivables from contracts with customers | $ 6,267 | $ 7,649 |
Other current receivables | 1,800 | 427 |
Joint venture receivables | 390 | 478 |
Equity accounted investments and other related party receivables | 31 | 6 |
Total financial trade and other receivables | 8,488 | 8,560 |
Non-financial trade and other receivables | 510 | 865 |
Trade and other receivables | $ 8,998 | $ 9,425 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] |
Cash and cash equivalents [abstract] | ||||||
Cash at bank available | $ 1,140 | $ 591 | ||||
Time deposits | 2,068 | 1,889 | ||||
Money Market Funds | 2,255 | 381 | ||||
Interest bearing securities | 1,590 | 1,092 | ||||
Restricted cash, including margin deposits | 501 | 437 | ||||
Cash and cash equivalents | 7,556 | 4,390 | $ 5,090 | $ 8,613 | ||
Collateral deposits related to trading activities | $ 365 | $ 300 | ||||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Shareholders' equity and divi_3
Shareholders' equity and dividends - narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018NOK (kr)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017NOK (kr)shares | Dec. 31, 2017USD ($)$ / sharesshares | |
Total number of shares issued | 3,338,661,219 | 3,338,661,219 | 3,323,167,853 | 3,323,167,853 | ||
United States Dollar (USD) [Member] | ||||||
Share capital | $ | $ 1,184,547,766 | $ 1,179,542,543 | ||||
Norwegian kroner (NOK) [Member] | ||||||
Share capital | kr | kr 8,346,653,047.5 | kr 8,307,919,632.5 | ||||
Nominal value per share | $ / shares | $ 2.5 | $ 2.5 | ||||
Treasury shares [member] | ||||||
Total number of shares issued | 2,740,657 | 2,740,657 | 3,323,671 | 3,323,671 | ||
Treasury shares purchased | $ | $ 68,000,000 | $ 63,000,000 | ||||
Treasury shares employees [member] | ||||||
Total number of shares issued | 3,631,220 | 3,631,220 | 3,219,327 | 3,219,327 | ||
Number of shares outstanding | 10,352,671 | 10,352,671 | 11,243,234 | 11,243,234 |
Shareholders' equity and divi_4
Shareholders' equity and dividends - dividends schedule (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends decared [abstract] | ||
Dividends declared | $ 3,064 | $ 2,891 |
Dividends paid in cash | 2,672 | 1,491 |
Scrip dividends | $ 338 | $ 1,357 |
Number of shares issued - scrip | 15.5 | 78.1 |
Sum dividends settled | $ 3,010 | $ 2,848 |
United States Dollar (USD) [Member] | ||
Dividends decared [abstract] | ||
Dividend per share | $ 0.92 | $ 0.8804 |
Dividends paid, ordinary shares per share | 0.9101 | 0.8804 |
Norwegian kroner (NOK) [Member] | ||
Dividends decared [abstract] | ||
Dividends paid, ordinary shares per share | $ 7.4907 | $ 7.2615 |
Finance debt - Capital Manageme
Finance debt - Capital Management (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Net interest-bearing debt adjusted (ND) | $ 12,246 | $ 16,287 |
Capital employed adjusted (CE) | $ 55,235 | $ 56,172 |
Net debt to capital employed adjusted (ND)/(CE) | 22.20% | 29.00% |
Statoil's Captive Insurance Company [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Net interest-bearing debt adjusted (ND) | $ 1,261 | $ 1,014 |
SDFI [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Net interest-bearing debt adjusted (ND) | $ 146 | $ 164 |
Finance debt - Non-current fina
Finance debt - Non-current finance debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 05, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 3.625% | ||
Bonds | $ 1,000 | ||
Finance lease liabilities | $ 432 | $ 478 | |
Total other borrowings | 523 | 567 | |
Total finance debt | 24,644 | 27,090 | |
Less current portion | 1,380 | 2,908 | |
Long-term Borrowings | 23,264 | 24,183 | |
Fair value based on level 2 inputs [member] | |||
Disclosure of financial liabilities [line items] | |||
Finance lease liabilities | 425 | 496 | |
Total other borrowings | 544 | 614 | |
Total finance debt | 26,565 | 29,938 | |
Less current portion | 1,379 | 2,924 | |
Long-term Borrowings | 25,186 | 27,014 | |
Unsecured Bonds [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 24,121 | 26,524 | |
Unsecured Bonds [Member] | United States Dollar (USD) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 13,088 | 14,953 | |
Unsecured Bonds [Member] | Euro (EUR) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 8,928 | 9,347 | |
Unsecured Bonds [Member] | Great Britain Pound (GBP) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 1,760 | 1,859 | |
Unsecured Bonds [Member] | Norwegian kroner (NOK) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 345 | 366 | |
Unsecured Bonds [Member] | Fair value based on level 2 inputs [member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 26,021 | 29,325 | |
Unsecured Bonds [Member] | Fair value based on level 2 inputs [member] | United States Dollar (USD) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 13,657 | 16,106 | |
Unsecured Bonds [Member] | Fair value based on level 2 inputs [member] | Euro (EUR) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 9,444 | 10,057 | |
Unsecured Bonds [Member] | Fair value based on level 2 inputs [member] | Great Britain Pound (GBP) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | 2,532 | 2,734 | |
Unsecured Bonds [Member] | Fair value based on level 2 inputs [member] | Norwegian kroner (NOK) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | $ 388 | $ 427 | |
Unsecured Bonds [Member] | Weighted average [member] | United States Dollar (USD) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 4.14% | 3.73% | |
Unsecured Bonds [Member] | Weighted average [member] | Euro (EUR) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 2.10% | 2.10% | |
Unsecured Bonds [Member] | Weighted average [member] | Great Britain Pound (GBP) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 6.08% | 6.08% | |
Unsecured Bonds [Member] | Weighted average [member] | Norwegian kroner (NOK) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 4.18% | 4.18% | |
Unsecured loans [Member] | Japanese yen (JPY) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Loans | $ 91 | $ 89 | |
Unsecured loans [Member] | Fair value based on level 2 inputs [member] | Japanese yen (JPY) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Loans | $ 119 | $ 118 | |
Unsecured loans [Member] | Weighted average [member] | Japanese yen (JPY) [Member] | |||
Disclosure of financial liabilities [line items] | |||
Weighted average interest rates | 4.30% | 4.30% | |
Unsecured bond, 38 bond agreement [member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | $ 23,776 |
Finance debt - Bonds (Details)
Finance debt - Bonds (Details) - USD ($) $ in Millions | Sep. 05, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | |||
Bonds | $ 1,000 | ||
Interest rate in % | 3.625% | ||
Maturity date | September 2028 | ||
Unsecured Bonds [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | $ 24,121 | $ 26,524 | |
Bonds swapped | 13,088 | $ 10,062 | |
Bonds not swapped | 972 | ||
Unsecured bonds, 38 Bond agreements [Member] | |||
Disclosure of financial liabilities [line items] | |||
Bonds | $ 23,776 |
Finance debt - Non-current and
Finance debt - Non-current and current finance debt maturity profile (Details) - USD ($) $ in Millions | Sep. 05, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current finance debt maturity profile [abstract] | |||
Total repayment of non-current finance debt | $ 23,264 | $ 24,183 | |
Weighted average maturity (years) | September 2028 | ||
Weighted average annual interest rate (%) | 3.625% | ||
Current finance debt [abstract] | |||
Collateral liabilities | 213 | 704 | |
Non-current finance debt due within one year | 1,380 | 2,908 | |
Other including bank overdraft | 870 | 479 | |
Total current finance debt | 2,463 | 4,091 | |
Commerical paper program issuance | $ 842 | $ 449 | |
Weighted average [member] | |||
Non-current finance debt maturity profile [abstract] | |||
Weighted average maturity (years) | 9 years | 9 years | |
Weighted average [member] | Interest Rate Non Current Debt [Member] | |||
Non-current finance debt maturity profile [abstract] | |||
Weighted average annual interest rate (%) | 3.67% | 3.50% | |
Weighted average [member] | Ineterest Rate Current Debt [Member] | |||
Non-current finance debt maturity profile [abstract] | |||
Weighted average annual interest rate (%) | 1.62% | 1.65% | |
Year 2 and 3 [member] | |||
Non-current finance debt maturity profile [abstract] | |||
Total repayment of non-current finance debt | $ 4,003 | $ 3,521 | |
Year 4 and 5 [member] | |||
Non-current finance debt maturity profile [abstract] | |||
Total repayment of non-current finance debt | 3,736 | 3,041 | |
After 5 years [member] | |||
Non-current finance debt maturity profile [abstract] | |||
Total repayment of non-current finance debt | $ 15,525 | $ 17,620 |
Finance debt - Reconciliation o
Finance debt - Reconciliation of liabilities arising from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | $ 28,564 | $ 31,465 | |||
Transfer to current portion | 0 | 0 | |||
Effects of exchange rate changes | (555) | 1,278 | |||
Divdend declared | 3,064 | 2,891 | |||
Scrip dividends | (338) | (1,357) | |||
Cash Flows From Used In Financing Activities | (5,025) | (5,822) | [1] | $ (1,959) | [1] |
Other changes | 15 | 110 | |||
Liabilities arising from financing activities, ending balance | 25,725 | 28,564 | 31,465 | ||
Non-current finance debt [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | 24,183 | 27,999 | |||
Transfer to current portion | (1,380) | (2,908) | |||
Effects of exchange rate changes | (556) | 1,302 | |||
Cash Flows From Used In Financing Activities | 998 | (2,250) | |||
Other changes | 20 | 40 | |||
Liabilities arising from financing activities, ending balance | 23,264 | 24,183 | 27,999 | ||
Current finance debt [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | 4,091 | 3,674 | |||
Transfer to current portion | 1,380 | 2,908 | |||
Effects of exchange rate changes | 2 | (13) | |||
Cash Flows From Used In Financing Activities | (2,949) | (2,472) | |||
Other changes | (61) | (5) | |||
Liabilities arising from financing activities, ending balance | 2,463 | 4,091 | 3,674 | ||
Financial receivable collaterals [Member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | (272) | (735) | |||
Cash Flows From Used In Financing Activities | (331) | 464 | |||
Other changes | 11 | (1) | |||
Liabilities arising from financing activities, ending balance | (591) | (272) | (735) | ||
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 | (191) | (212) | |||
Cash Flows From Used In Financing Activities | (64) | (62) | |||
Other changes | 59 | 83 | |||
Liabilities arising from financing activities, ending balance | (196) | (191) | (212) | ||
Non-controling interest [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | 24 | 27 | |||
Cash Flows From Used In Financing Activities | (7) | (12) | |||
Other changes | 2 | 9 | |||
Liabilities arising from financing activities, ending balance | 19 | 24 | 27 | ||
Dividend payable [Member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Liabilities arising from financing activities, beginning balance | 729 | 712 | |||
Effects of exchange rate changes | (1) | (11) | |||
Divdend declared | 3,064 | 2,891 | |||
Scrip dividends | (338) | (1,357) | |||
Cash Flows From Used In Financing Activities | (2,672) | (1,491) | |||
Other changes | (16) | (15) | |||
Liabilities arising from financing activities, ending balance | $ 766 | $ 729 | $ 712 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Pensions - Net pension cost (De
Pensions - Net pension cost (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
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, in which the pension costs are recognised in the Consolidated statement of income in line with payments of annual pension premiums. The pension contribution plans in Equinor ASA also includes certain unfunded elements (notional contribution plans), for which the annual notional contributions are recognised as pension liabilities. | ||
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 | 30 years | ||
Defined benefit plan, percentage of final salary level requirement | 66.00% | ||
Maximum age of employees for early retirement premium | yr | 62 | ||
Description of early retirement plan premium calculation | Equinor is 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). | ||
Description of discount rate for defined benefit plan | the discount rate for the defined benefit plans in Norway was established on the basis of seven years' mortgage covered bonds interest rate extrapolated on a yield curve which matches the duration of Equinor's payment portfolio for earned benefits, which was calculated to be 15.9 years | ||
Duration of Equinor's payment portfolio for earned benefits | 15.9 years | ||
Current service cost | $ 214 | $ 242 | $ 238 |
Interest cost | 0 | 0 | 192 |
Interest (income) on plan asset | 0 | 0 | (148) |
Past service cost | 0 | 0 | 2 |
Losses (gains) from curtailment, settlement or plan amendment | 20 | 15 | 109 |
Actuarial (gains) losses related to termination benefits | 0 | (1) | 59 |
Notional contributions | 55 | 51 | 50 |
Defined benefit plans | 289 | 308 | 503 |
Defined contribution plans | 173 | 162 | 148 |
Total net pension cost | 463 | $ 469 | $ 650 |
Interest cost and changes in fair value of notional assets | 167 | ||
Interest income from defined benefit plans | $ 127 |
Pensions - Net pension liabilit
Pensions - Net pension liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | $ 214 | $ 242 | $ 238 |
Interest cost | 0 | 0 | 192 |
Interest income | 0 | 0 | 148 |
Losses (gains) from curtailment, settlement or plan amendment | 20 | 15 | 109 |
Changes in notional contribution liability | 55 | 51 | 50 |
Net pension liability | (2,990) | (2,599) | |
Asset recognised as non-current pension assets (funded plan) | 831 | 1,306 | |
Liability recognised as non-current pension liabilities (unfunded plans) | (3,820) | (3,904) | |
Actual return on assets | 1 | 431 | |
Funded Plan [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit obligations, beginning balance | 4,392 | ||
Defined benefit obligations, ending balance | 4,359 | 4,392 | |
Unfunded Plan [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit obligations, beginning balance | 3,894 | ||
Defined benefit obligations, ending balance | 3,817 | 3,894 | |
Defined benefit obligations [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit obligations, beginning balance | 8,286 | 7,791 | |
Current service cost | 214 | 243 | |
Interest cost | 182 | 219 | |
Actuarial (gains) losses - Financial assumptions | 174 | (26) | |
Actuarial (gains) losses - Experience | 27 | 21 | |
Benefits paid | (219) | (311) | |
Losses (gains) from curtailment, settlement or plan amendment | (1) | 13 | |
Paid-up policies | (18) | (84) | |
Foreign currency translation | (469) | 411 | |
Changes in notional contribution liability | 55 | 52 | |
Defined benefit obligations, ending balance | 8,176 | 8,286 | 7,791 |
Defined benefit plan assets [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Fair value of plan assets, beginning balance | 5,687 | 5,250 | |
Interest income | 136 | 148 | |
Return on plan assets (excluding interest income) | (135) | 283 | |
Company contributions | 49 | 39 | |
Benefits paid | (217) | (196) | |
Paid-up policies and personal insurance | (18) | (121) | |
Foreign currency translation | (315) | 283 | |
Fair value of plan assets, ending balance | $ 5,187 | $ 5,687 | $ 5,250 |
Pensions - Actuarial losses and
Pensions - Actuarial losses and gains (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Actuarial losses and gains recognised directly in Other comprehensive income | |||
Net actuarial (losses) gains recognised in OCI during the year | $ (282) | $ 331 | $ (482) |
Actuarial (losses) gains related to currency effects on net obligation and foreign exchange translation | 172 | (158) | (21) |
Tax effects of actuarial (losses) gains recognised in OCI | 22 | (38) | 129 |
Items that will not be reclassified to the Consolidated statement of income | (88) | 134 | (374) |
Cumulative actuarial (losses) gains recognised directly in OCI net of tax | $ (1,141) | $ (1,053) | $ (1,188) |
Pensions - Actuarial assumption
Pensions - Actuarial assumptions (Details) - yr | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Weighted-average duration of the defined benefit obligation | 15.9 | 17.2 |
Description of Expected attrition | Expected attrition at 31 December 2018 was 0.2% and 0% for employees between 50-59 years and 60-67 years, and 0.2% and 2.2% in 2017. In 2018 a separate attrition rate of 3.2% was calculated for employees between 60-67 with immediate withdrawal of vested pension, thus remaining in the scheme. | |
Employee age group (50-59 years) [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Expected attrition rate of employees | 0.20% | 0.20% |
Employee age group (60-67 years) [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Expected attrition rate of employees | 0.00% | 2.20% |
Separate attrition rate | 3.20% | |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumptions used to determine benefit costs | 2.50% | 2.50% |
Percentage Actuarial Assumption To Determine Defined Benefit Obligations | 2.75% | 2.50% |
Rate of compensation increase [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumptions used to determine benefit costs | 2.25% | 2.25% |
Percentage Actuarial Assumption To Determine Defined Benefit Obligations | 2.75% | 2.25% |
Expected rate of pension increase [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumptions used to determine benefit costs | 1.75% | 1.75% |
Percentage Actuarial Assumption To Determine Defined Benefit Obligations | 2.00% | 1.75% |
Expected increase of social security base amount (G-amount) [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumptions used to determine benefit costs | 2.25% | 2.25% |
Percentage Actuarial Assumption To Determine Defined Benefit Obligations | 2.75% | 2.25% |
Pensions - Sensitivity analysis
Pensions - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)yr | |
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 | $ 695 |
Service cost 2019, decrease | $ 25 |
Discount rate increase (decrease) | (50.00%) |
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 | $ (611) |
Service cost 2019, increase | $ (21) |
Discount rate increase (decrease) | 50.00% |
Expected rate of compensation [member] | Low range value [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Defined benefit obligation, change due to decrease in assumption | $ (167) |
Service cost 2019, decrease | $ (7) |
Expected rate of compensation increase (decrease) | (50.00%) |
Expected rate of compensation [member] | High range value [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Defined benefit obligation, change due to increase in assumption | $ 169 |
Service cost 2019, increase | $ 7 |
Expected rate of compensation increase (decrease) | 50.00% |
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 | $ (473) |
Service cost 2019, decrease | $ (14) |
Expected rate of pension increase (decrease) | (50.00%) |
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 | $ 520 |
Service cost 2019, increase | $ 16 |
Expected rate of pension increase (decrease) | 50.00% |
Mortality assumption [member] | Low range value [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Defined benefit obligation, change due to decrease in assumption | $ (324) |
Service cost 2019, decrease | $ (9) |
Mortality assumption | yr | (1) |
Mortality assumption [member] | High range value [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Defined benefit obligation, change due to increase in assumption | $ 296 |
Service cost 2019, increase | $ 8 |
Mortality assumption | yr | 1 |
Pensions - assets, portfolio we
Pensions - assets, portfolio weighting (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 100.00% | 100.00% |
Company contributions | $ 100 | |
Equity securities [member] | ||
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 36.50% | 37.50% |
Equity securities [member] | Low range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 31.00% | |
Equity securities [member] | High range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 43.00% | |
Equity securities [member] | Level 1 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 92.00% | 92.00% |
Equity securities [member] | Level 2 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 8.00% | 8.00% |
Bonds [Member] | ||
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 44.90% | 41.70% |
Bonds [Member] | Low range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 36.00% | |
Bonds [Member] | High range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 48.00% | |
Bonds [Member] | Level 1 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 31.00% | 32.00% |
Bonds [Member] | Level 2 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 69.00% | 68.00% |
Money market instruments [Member] | ||
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 12.30% | 14.30% |
Money market instruments [Member] | Low range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 0.00% | |
Money market instruments [Member] | High range value [member] | ||
Disclosure of financial assets [line items] | ||
Target porfolio weight | 29.00% | |
Money market instruments [Member] | Level 1 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 55.00% | 67.00% |
Money market instruments [Member] | Level 2 [member] | ||
Disclosure of financial assets [line items] | ||
Percentange of pension assets measured at fair value | 45.00% | 32.00% |
Real estate [Member] | ||
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 6.30% | 6.10% |
Real estate properties owned by Equinor Pension | $ 417 | $ 447 |
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% | |
Other assets [Member] | ||
Disclosure of financial assets [line items] | ||
Pension assets on investment classes, percentage | 0.00% | 0.40% |
Provisions (Details)
Provisions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of other provisions [line items] | |
Non-current portion - beginning period | $ 15,557 |
Current portion, trade and other payables, beginning | 684 |
Provisions at the beginning period | 16,241 |
New or increased provisions | 2,473 |
Increase (Decrease) in the estimates | (889) |
Amounts charged against provisions | (749) |
Effects of change in the discount rate | (814) |
Reduction due to divestments | 0 |
Accretion expenses | 461 |
Reclassification and transfer | 21 |
Currency translation | (568) |
Provisions at ending period | 16,175 |
Current portion, trade and other payables, ending | 224 |
Non-current portion - ending period | 15,952 |
Asset retirement obligations [Member] | |
Disclosure of other provisions [line items] | |
Non-current portion - beginning period | 12,383 |
Current portion, trade and other payables, beginning | 69 |
Provisions at the beginning period | 12,451 |
New or increased provisions | 1,609 |
Increase (Decrease) in the estimates | (382) |
Amounts charged against provisions | (157) |
Effects of change in the discount rate | (838) |
Reduction due to divestments | 0 |
Accretion expenses | 461 |
Reclassification and transfer | 0 |
Currency translation | (536) |
Provisions at ending period | 12,609 |
Current portion, trade and other payables, ending | 65 |
Non-current portion - ending period | 12,544 |
Claims and litigations [Member] | |
Disclosure of other provisions [line items] | |
Non-current portion - beginning period | 1,271 |
Current portion, trade and other payables, beginning | 68 |
Provisions at the beginning period | 1,339 |
New or increased provisions | 6 |
Increase (Decrease) in the estimates | (386) |
Amounts charged against provisions | (4) |
Effects of change in the discount rate | 0 |
Reduction due to divestments | 0 |
Accretion expenses | 0 |
Reclassification and transfer | 6 |
Currency translation | 0 |
Provisions at ending period | 961 |
Current portion, trade and other payables, ending | 56 |
Non-current portion - ending period | 905 |
Other provisions [Member] | |
Disclosure of other provisions [line items] | |
Non-current portion - beginning period | 1,904 |
Current portion, trade and other payables, beginning | 547 |
Provisions at the beginning period | 2,451 |
New or increased provisions | 858 |
Increase (Decrease) in the estimates | (121) |
Amounts charged against provisions | (588) |
Effects of change in the discount rate | 24 |
Reduction due to divestments | 0 |
Accretion expenses | 0 |
Reclassification and transfer | 15 |
Currency translation | (32) |
Provisions at ending period | 2,606 |
Current portion, trade and other payables, ending | 103 |
Non-current portion - ending period | $ 2,503 |
Provisions - Expected timing of
Provisions - Expected timing of cash outflows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | ||
Total provision | $ 16,175 | $ 16,241 |
New or increased provisions | 2,473 | |
BM-S-8 [Member] | ||
Disclosure of other provisions [line items] | ||
Contingent consideration settled | 300 | |
Contingent consideration | 900 | |
2019 - 2023 [member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,754 | |
2024 - 2028 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 2,574 | |
2029 - 2033 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,566 | |
2034 - 2038 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 2,546 | |
Thereafter [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,736 | |
Asset retirement obligations [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 12,609 | $ 12,451 |
New or increased provisions | 1,609 | |
Asset retirement obligations [Member] | 2019 - 2023 [member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 1,307 | |
Asset retirement obligations [Member] | 2024 - 2028 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 1,891 | |
Asset retirement obligations [Member] | 2029 - 2033 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,530 | |
Asset retirement obligations [Member] | 2034 - 2038 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 2,534 | |
Asset retirement obligations [Member] | Thereafter [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,348 | |
Other provisions, including claims and litigations [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 3,567 | |
Other provisions, including claims and litigations [Member] | 2019 - 2023 [member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 2,447 | |
Other provisions, including claims and litigations [Member] | 2024 - 2028 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 682 | |
Other provisions, including claims and litigations [Member] | 2029 - 2033 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 36 | |
Other provisions, including claims and litigations [Member] | 2034 - 2038 [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | 13 | |
Other provisions, including claims and litigations [Member] | Thereafter [Member] | ||
Disclosure of other provisions [line items] | ||
Total provision | $ 388 |
Trade, other payables and pro_3
Trade, other payables and provisions (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Trade payables | $ 2,532 | $ 3,181 |
Non-trade payables and accrued expenses | 2,604 | 2,345 |
Total financial trade and other payables | 8,115 | 8,849 |
Current portion of provisions and other non-financial payables | 255 | 888 |
Trade, other payables and provisions | 8,369 | 9,737 |
Joint ventures [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party payables | 2,254 | 2,464 |
Related parties [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party payables | $ 725 | $ 858 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Net rental expenditures | $ 2,080 | $ 2,075 | $ 2,569 |
Contingent rental payment | 0 | 0 | $ 0 |
Future minimum lease payments due and receivable under non-cancellable operating leases | 8,253 | ||
Service Contracts Nonlease | 1,500 | ||
Finance lease liabilities | 432 | 478 | |
The nominal minimum lease payments | 555 | ||
Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 8,253 | ||
Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 2,001 | ||
Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 1,406 | ||
Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 1,114 | ||
Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 960 | ||
Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 832 | ||
Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 1,527 | ||
Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 376 | ||
Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 39 | ||
Rigs [Member] | Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 2,597 | ||
Rigs [Member] | Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 998 | ||
Rigs [Member] | Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 523 | ||
Rigs [Member] | Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 349 | ||
Rigs [Member] | Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 372 | ||
Rigs [Member] | Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 280 | ||
Rigs [Member] | Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 75 | ||
Rigs [Member] | Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 0 | ||
Rigs [Member] | Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 0 | ||
Vessels [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Estimated Nominal value of the lease contract | 529 | ||
Vessels [Member] | Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 3,414 | ||
Vessels [Member] | Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 662 | ||
Vessels [Member] | Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 599 | ||
Vessels [Member] | Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 534 | ||
Vessels [Member] | Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 384 | ||
Vessels [Member] | Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 316 | ||
Vessels [Member] | Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 789 | ||
Vessels [Member] | Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 131 | ||
Vessels [Member] | Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 0 | ||
Land and buildings [member] | Related parties [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Lease payments to related parties | $ 474 | ||
Operating lease commitment extension year | 2037 | ||
Land and buildings [member] | Due after 2022 [member] | Related parties [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | $ 356 | ||
Land and buildings [member] | Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 1,558 | ||
Land and buildings [member] | Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 143 | ||
Land and buildings [member] | Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 141 | ||
Land and buildings [member] | Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 140 | ||
Land and buildings [member] | Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 136 | ||
Land and buildings [member] | Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 198 | ||
Land and buildings [member] | Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 544 | ||
Land and buildings [member] | Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 223 | ||
Land and buildings [member] | Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 32 | ||
Storage [Member] | Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 322 | ||
Storage [Member] | Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 83 | ||
Storage [Member] | Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 60 | ||
Storage [Member] | Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 41 | ||
Storage [Member] | Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 40 | ||
Storage [Member] | Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 25 | ||
Storage [Member] | Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 68 | ||
Storage [Member] | Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 6 | ||
Storage [Member] | Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 0 | ||
Other [Member] | Operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 363 | ||
Other [Member] | Operating leases [member] | 2019 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 113 | ||
Other [Member] | Operating leases [member] | 2020 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 84 | ||
Other [Member] | Operating leases [member] | 2021 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 50 | ||
Other [Member] | Operating leases [member] | 2022 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 28 | ||
Other [Member] | Operating leases [member] | 2023 [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 13 | ||
Other [Member] | Operating leases [member] | 2024 - 2028 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 50 | ||
Other [Member] | Operating leases [member] | 2029 - 2033 [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 17 | ||
Other [Member] | Operating leases [member] | Thereafter [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Future minimum lease payments under non-cancellable operating leases including sublease | 7 | ||
Machinery, equipment and transportation including vessles [Member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Finance lease | $ 380 | $ 439 |
Implementation of IFRS16 Leas_2
Implementation of IFRS16 Leases (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Lease liabilities [abstract] | |||
Operating lease commitments (IAS 17) per 31.12.2018 | $ 8,253 | ||
Short term leases and leases expiring during 2019 | $ (666) | ||
Non-lease components | (1,469) | ||
Commitments related to leases not yet commenced | (2,116) | ||
Leases reported gross vs net | 711 | ||
Operating Lease Discount Value | (485) | ||
Finance leases (IAS 17) included in the balance sheet at 31 December 2018 | $ 432 | $ 478 | |
Lease liability to be reported under IFRS 16 per 1.1.2019 | 4,660 | ||
Additions to right-of-use assets | 4,200 | ||
Additions in lease liabilities | $ 4,200 |
Other commitments, contingent_3
Other commitments, contingent liabilities and contingent assets (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2018USD ($)Wells | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Feb. 28, 2018USD ($) | |||
Disclosure of other provisions [line items] | ||||||||
Contractual commitments | $ 6,269 | |||||||
Number of wells, committed to drill | Wells | 43 | |||||||
Increase (Decrease) in the estimates | $ (889) | |||||||
Depreciation, amortisation and net impairment losses | $ 9,249 | $ 8,644 | [1] | $ 11,550 | [1] | |||
BM-S-Eight [Member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Operated interest | 76.00% | |||||||
Portion of Peregrino field, divestiture [Member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Proportion of ownership interest divested | 40.00% | |||||||
Exploration & Production (E&P) International [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Depreciation, amortisation and net impairment losses | $ 4,592 | $ 4,423 | $ 5,510 | |||||
OML 128 (Agbami) [Member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Reduction in ownership interest | 5.17% | |||||||
Operated interest | 53.85% | |||||||
Explanation non-disclosure of information regarding provision | The Supreme Court judgement provides for potential retroactive adjustment of certain production sharing contracts in favour of the Federal Government, including OML 128 (Agbami) where Equinor has 53.85% equity interest. Equinor sees no merit to the case. No provision has been made for this matter. | |||||||
Wells committed to drill [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Average ownership interest in wells committed to drill | 39.00% | |||||||
Estimated exposure | $ 578 | |||||||
Various long term agreements [Member] | Maximum [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Contract Term | 2044 | |||||||
Guaranteed [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Estimated exposure | $ 741 | |||||||
Tax contingent liability [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Estimated exposure | $ 500 | |||||||
Agbami redetermination [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Provisions, net of tax | 854 | |||||||
Increase (Decrease) in the estimates | 349 | |||||||
Revenue from reversal of claims and litigation | 774 | |||||||
Depreciation, amortisation and net impairment losses | 143 | |||||||
Current income tax expense or (benefit) | 297 | |||||||
Gas price review clauses [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Estimated exposure | $ 1,200 | |||||||
Contract for the drilling rig COSL Innovator [Member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Estimated exposure | $ 200 | |||||||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Other commitments, contingent_4
Other commitments, contingent liabilities and contingent assets - long-term commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | $ 11,479 |
2019 [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | 1,584 |
2020 [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | 1,463 |
2021 [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | 1,303 |
2022 [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | 1,134 |
2023 [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | 1,050 |
Thereafter [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Contractual and other long term commitments | $ 4,947 |
Related parties - narrative (De
Related parties - narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lundin Petroleum AB [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in associate | 20.10% | ||
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 | $ 1,351 | $ 1,155 | $ 1,167 |
Equinor ASA [member] | Lundin Petroleum AB [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of of goods with related party | 879 | 176 | 155 |
Revenue from sale of goods, related party transactions | 296 | 0 | 0 |
Norwegian State [member] | Oil and gas assets [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of of goods with related party | 8,604 | 7,352 | 5,848 |
Norwegian State [member] | Tjeldbergodden [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of of goods with related party | $ 49 | $ 39 | $ 44 |
Folketrygdfondet [member] | |||
Disclosure of transactions between related parties [line items] | |||
Ownership interests held by shareholder | 3.30% |
Financial instruments - Classes
Financial instruments - Classes of financial assets instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] |
Asset [abstract] | ||||||
Noncurrent Derivative Financial Assets | $ 1,032 | $ 1,603 | ||||
Non-current financial investments | 2,455 | 2,841 | ||||
Prepayments and financial receivables | 1,033 | 912 | ||||
Trade and other receivables | 8,998 | 9,425 | ||||
Current Derivative Financial Assets | 318 | 159 | ||||
Current financial investments | 7,041 | 8,448 | ||||
Cash and cash equivalents | 7,556 | 4,390 | $ 5,090 | $ 8,613 | ||
Total | 28,433 | 27,778 | ||||
Non-financial assets [member] | ||||||
Asset [abstract] | ||||||
Noncurrent Derivative Financial Assets | 0 | 0 | ||||
Non-current financial investments | 0 | 0 | ||||
Prepayments and financial receivables | 179 | 188 | ||||
Trade and other receivables | 510 | 865 | ||||
Current Derivative Financial Assets | 0 | 0 | ||||
Current financial investments | 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Total | 689 | 1,053 | ||||
Amortised cost [member] | ||||||
Asset [abstract] | ||||||
Noncurrent Derivative Financial Assets | 0 | 0 | ||||
Non-current financial investments | 90 | 47 | ||||
Prepayments and financial receivables | 854 | 723 | ||||
Trade and other receivables | 8,488 | 8,560 | ||||
Current Derivative Financial Assets | 0 | 0 | ||||
Current financial investments | 6,145 | 4,085 | ||||
Cash and cash equivalents | 5,301 | 2,917 | ||||
Total | 20,878 | 16,332 | ||||
Financial assets at fair value through profit or loss, category [member] | ||||||
Asset [abstract] | ||||||
Noncurrent Derivative Financial Assets | 1,032 | 1,603 | ||||
Non-current financial investments | 2,365 | 2,794 | ||||
Prepayments and financial receivables | 0 | 0 | ||||
Trade and other receivables | 0 | 0 | ||||
Current Derivative Financial Assets | 318 | 159 | ||||
Current financial investments | 896 | 4,363 | ||||
Cash and cash equivalents | 2,255 | 1,473 | ||||
Total | $ 6,866 | $ 10,393 | ||||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Financial instruments - Class_2
Financial instruments - Classes of financial liabilities instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities [abstract] | ||
Non-current finance debt | $ 23,264 | $ 24,183 |
Non-current derivative financial instruments | 1,207 | 900 |
Trade and other payables | 8,369 | 9,737 |
Current finance debt | 2,463 | 4,091 |
Dividend payable | 766 | 729 |
Current Derivative Financial Liabilities | 352 | 403 |
Total | 36,422 | 40,042 |
Non-financial liabilities [member] | ||
Liabilities [abstract] | ||
Non-current finance debt | 0 | 0 |
Non-current derivative financial instruments | 0 | 0 |
Trade and other payables | 255 | 888 |
Current finance debt | 0 | 0 |
Dividend payable | 0 | 0 |
Current Derivative Financial Liabilities | 0 | 0 |
Total | 255 | 888 |
Amortised cost [member] | ||
Liabilities [abstract] | ||
Non-current finance debt | 23,264 | 24,183 |
Non-current derivative financial instruments | 0 | 0 |
Trade and other payables | 8,115 | 8,849 |
Current finance debt | 2,463 | 4,091 |
Dividend payable | 766 | 729 |
Current Derivative Financial Liabilities | 0 | 0 |
Total | 34,608 | 37,852 |
Financial liabilities at fair value through profit or loss, category [member] | ||
Liabilities [abstract] | ||
Non-current finance debt | 0 | 0 |
Non-current derivative financial instruments | 1,207 | 900 |
Trade and other payables | 0 | 0 |
Current finance debt | 0 | 0 |
Dividend payable | 0 | 0 |
Current Derivative Financial Liabilities | 352 | 403 |
Total | $ 1,559 | $ 1,302 |
Financial instruments - Fair va
Financial instruments - Fair value heirarchy (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement [line items] | ||
Non-current derivative financial instruments - assets | $ 1,032 | $ 1,603 |
Current financial investments | 7,041 | 8,448 |
Current derivative financial instruments - assets | 318 | 159 |
Non-current derivative financial instruments - liabilities | (1,207) | (900) |
Current derivative financial instruments liabilities | (352) | (403) |
Fair value [member] | ||
Disclosure of fair value measurement [line items] | ||
Non-current financial investments | 2,365 | 2,794 |
Non-current derivative financial instruments - assets | 1,032 | 1,603 |
Current financial investments | 896 | 4,363 |
Current derivative financial instruments - assets | 318 | 159 |
Cash equivalents | 2,255 | 1,473 |
Non-current derivative financial instruments - liabilities | (1,207) | (900) |
Current derivative financial instruments liabilities | (352) | (403) |
Net fair value | 5,307 | 9,090 |
Level 1 [member] | ||
Disclosure of fair value measurement [line items] | ||
Non-current financial investments | 1,088 | 1,126 |
Non-current derivative financial instruments - assets | 0 | 0 |
Current financial investments | 365 | 355 |
Current derivative financial instruments - assets | 0 | 0 |
Cash equivalents | 0 | 0 |
Non-current derivative financial instruments - liabilities | 0 | 0 |
Current derivative financial instruments liabilities | 0 | 0 |
Net fair value | 1,453 | 1,481 |
Level 2 [member] | ||
Disclosure of fair value measurement [line items] | ||
Non-current financial investments | 1,027 | 1,271 |
Non-current derivative financial instruments - assets | 806 | 1,320 |
Current financial investments | 531 | 4,008 |
Current derivative financial instruments - assets | 274 | 122 |
Cash equivalents | 2,255 | 1,473 |
Non-current derivative financial instruments - liabilities | (1,172) | (900) |
Current derivative financial instruments liabilities | (351) | (399) |
Net fair value | 3,370 | 6,896 |
Level 3 [member] | ||
Disclosure of fair value measurement [line items] | ||
Non-current financial investments | 250 | 397 |
Non-current derivative financial instruments - assets | 227 | 283 |
Current financial investments | 0 | 0 |
Current derivative financial instruments - assets | 44 | 37 |
Cash equivalents | 0 | 0 |
Non-current derivative financial instruments - liabilities | (35) | 0 |
Current derivative financial instruments liabilities | (1) | (4) |
Net fair value | $ 485 | $ 713 |
Financial instruments - Reconci
Financial instruments - Reconciliation of changes in fair value (Details) - Level 3 [member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement [line items] | ||
Opening balance | $ 713 | $ 1,110 |
Total gains and losses recognised in statement of income, assets | (122) | (27) |
Puchases, assets | 35 | 90 |
Settlement, assets | (36) | (600) |
Transfer to current portion, assets | 94 | |
Transfer to level 1 | (88) | |
Foreign currency translation differences | (18) | 45 |
Closing balance | 485 | 713 |
Non-current derivative financial instruments liabilities [Member] | ||
Disclosure of fair value measurement [line items] | ||
Opening balance | 0 | (6) |
Total gains and losses recognised in statement of income, liabilities | (35) | 6 |
Puchases, liabilities | 0 | 0 |
Settlement, liabilities | 0 | 0 |
Transfer into level 3 | 0 | |
Foreign currency translation differences | 0 | 0 |
Closing balance | (35) | 0 |
Current derivative financial Instruments, liabilities [Member] | ||
Disclosure of fair value measurement [line items] | ||
Opening balance | (4) | (4) |
Total gains and losses recognised in statement of income, liabilities | 3 | 0 |
Puchases, liabilities | 0 | 0 |
Settlement, liabilities | 0 | 0 |
Transfer into level 3 | 0 | |
Foreign currency translation differences | 0 | 0 |
Closing balance | (1) | (4) |
Non-current financial investments [Member] | ||
Disclosure of fair value measurement [line items] | ||
Opening balance | 397 | 207 |
Total gains and losses recognised in statement of income, assets | (91) | 0 |
Puchases, assets | 35 | 90 |
Settlement, assets | 0 | 0 |
Transfer to current portion, assets | 94 | |
Transfer to level 1 | (88) | |
Foreign currency translation differences | (3) | 5 |
Closing balance | 250 | 397 |
Non-current derivative financial instruments - assets [Member] | ||
Disclosure of fair value measurement [line items] | ||
Opening balance | 283 | 848 |
Total gains and losses recognised in statement of income, assets | (44) | (69) |
Puchases, assets | 0 | 0 |
Settlement, assets | 0 | (533) |
Transfer to current portion, assets | 0 | |
Foreign currency translation differences | (13) | 37 |
Closing balance | 227 | 283 |
Current derivative financial instruments, assets [Member] | ||
Disclosure of fair value measurement [line items] | ||
Opening balance | 37 | 66 |
Total gains and losses recognised in statement of income, assets | 46 | 36 |
Puchases, assets | 0 | 0 |
Settlement, assets | (36) | (67) |
Transfer to current portion, assets | 0 | |
Foreign currency translation differences | (3) | 3 |
Closing balance | $ 44 | $ 37 |
Financial instruments - Sensiti
Financial instruments - Sensitivity analysis of market risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Gains (losses) derivative financial instruments | $ (341) | $ (61) | $ 470 |
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% | 20.00% | |
Commodity price sensitivity [member] | Minimum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | (30.00%) | (20.00%) | |
Commodity price sensitivity [member] | Maximum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | 30.00% | 20.00% | |
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 | $ 275 | $ 687 | |
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 | (230) | (606) | |
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 | 1,157 | 613 | |
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 | $ (1,156) | $ (613) | |
Currency risk sensitivity [member] | Minimum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | (9.00%) | (8.00%) | |
Currency risk sensitivity [member] | Minimum (%) [member] | United States Dollar (USD) [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Foreign exchange gain (loss) | $ (230) | $ 119 | |
Currency risk sensitivity [member] | Minimum (%) [member] | Norwegian kroner (NOK) [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Foreign exchange gain (loss) | $ 311 | $ (94) | |
Currency risk sensitivity [member] | Maximum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | 9.00% | 8.00% | |
Currency risk sensitivity [member] | Maximum (%) [member] | United States Dollar (USD) [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Foreign exchange gain (loss) | $ 230 | $ (119) | |
Currency risk sensitivity [member] | Maximum (%) [member] | Norwegian kroner (NOK) [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Foreign exchange gain (loss) | $ (311) | $ 94 | |
Interest rate sensitivity [member] | Minimum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | (6.00%) | (6.00%) | |
Net gains (losses) | $ 575 | $ 664 | |
Interest rate sensitivity [member] | Maximum (%) [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | 6.00% | 6.00% | |
Net gains (losses) | $ (575) | $ (664) |
Financial instruments - Narrati
Financial instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Gains (losses) on change in fair value of derivatives | $ (341) | $ (61) | $ 470 |
Gains (losses) financial investments | $ (72) | $ 108 | $ 0 |
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% | 20.00% | |
Level 3 [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Gains (losses) on change in fair value of derivatives | $ (228) | ||
Total gains and losses recognised in statement of income, assets | (122) | $ (27) | |
Portion agreed and settled | 36 | $ 600 | |
Level 3 [member] | Certain earn-out agreements [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Gains (losses) on change in fair value of derivatives | 54 | ||
Portion fully realised | $ 36 |
Changes in accounting policie_2
Changes in accounting policies - Initial application of IFRS 9 financial assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | $ 27,778 | |
Carrying amount, new | 27,778 | |
Difference | 0 | |
Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Effect of changes in financial policy IFRS 9 | $ 64 | |
Non-current derivative financial instruments - assets [Member] | Held for trading [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 1,603 | |
Carrying amount, new | 1,603 | |
Difference | 0 | |
Non-current financial investments [Member] | Loans and receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 47 | |
Carrying amount, new | 47 | |
Difference | 0 | |
Non-current financial investments [Member] | Available for sale financial assets [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 397 | |
Carrying amount, new | 397 | |
Difference | 0 | |
Non-current financial investments [Member] | Fair value option [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 2,397 | |
Carrying amount, new | 2,397 | |
Difference | 0 | |
Prepayments and other financial receivables [Member] | Loans and receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 723 | |
Carrying amount, new | 723 | |
Difference | 0 | |
Prepayments and other financial receivables [Member] | Non-financial assets [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 188 | |
Carrying amount, new | 188 | |
Difference | 0 | |
Trade and other receivables [member] | Loans and receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 8,560 | |
Carrying amount, new | 8,571 | |
Difference | 11 | |
Trade and other receivables [member] | Non-financial assets [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 865 | |
Carrying amount, new | 865 | |
Difference | 0 | |
Current derivative financial instruments, assets [Member] | Held for trading [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 159 | |
Carrying amount, new | 159 | |
Difference | 0 | |
Current financial investments [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 714 | |
Carrying amount, new | 714 | |
Difference | 0 | |
Current financial investments [Member] | Held for trading [Member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 3,649 | |
Carrying amount, new | 3,639 | |
Difference | (10) | |
Current financial investments [Member] | Loans and receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 4,085 | |
Carrying amount, new | 4,085 | |
Difference | 0 | |
Cash equivalents [Member] | Held for trading [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 381 | |
Carrying amount, new | 381 | |
Difference | 0 | |
Cash equivalents [Member] | Held for trading [Member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 1,092 | |
Carrying amount, new | 1,091 | |
Difference | (1) | |
Cash equivalents [Member] | Loans and receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Financial Assets At Date Of Initial Application Of IFRS9 [line items] | ||
Carrying amount, original | 2,917 | |
Carrying amount, new | 2,917 | |
Difference | $ 0 |
Changes in accounting policie_3
Changes in accounting policies - Initial application of IFRS 9 cashflow (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cash flows from (used in) operating activities [abstract] | |||||
Income / (loss) before tax | $ 18,874,000,000 | $ 13,420,000,000 | [1] | $ (178,000,000) | [1] |
Depreciation, amortisation and net impairment losses | 9,249,000,000 | 8,644,000,000 | [1] | 11,550,000,000 | [1] |
Exploration expenditures written off | 357,000,000 | (8,000,000) | [1] | 1,800,000,000 | [1] |
(Gains) losses on foreign currency transactions and balances | 166,000,000 | (127,000,000) | [1] | 120,000,000 | [1] |
(Gains) losses on sales of assets and businesses | (648,000,000) | 395,000,000 | [1] | (110,000,000) | [1] |
(Increase) decrease in other items related to operating activities | (526,000,000) | (884,000,000) | [1] | 877,000,000 | [1] |
(Increase) decrease in net derivative financial instruments | 409,000,000 | 19,000,000 | [1] | 1,198,000,000 | [1] |
Interest received | 176,000,000 | 148,000,000 | [1] | 134,000,000 | [1] |
Interest paid | (441,000,000) | (622,000,000) | [1] | (548,000,000) | [1] |
Cash Flows From Used In Operations Before Changes In Working Capital And Taxes Paid | 27,615,000,000 | 20,985,000,000 | [1] | 14,843,000,000 | [1] |
Taxes paid | (9,010,000,000) | (5,766,000,000) | [1] | (4,386,000,000) | [1] |
(Increase) decrease in working capital | 1,090,000,000 | (417,000,000) | [1] | (1,639,000,000) | [1] |
Cash flows provided by operating activities | 19,694,000,000 | 14,802,000,000 | [1] | 8,818,000,000 | [1] |
Cash flows from (used in) investing activities [abstract] | |||||
Additions through business combinations | (3,557,000,000) | 0 | [1] | 0 | [1] |
Capital expenditures and investments | (11,367,000,000) | (10,755,000,000) | [1] | (12,191,000,000) | [1] |
(Increase) decrease in financial investments | 1,358,000,000 | 592,000,000 | [1] | 877,000,000 | [1] |
(Increase) decrease in derivatives financial instruments | (439,000,000) | 216,000,000 | |||
(Increase) decrease in other items interest bearing | 343,000,000 | 79,000,000 | [1] | 107,000,000 | [1] |
Proceeds from sale of assets and businesses | 1,773,000,000 | 406,000,000 | [1] | 761,000,000 | [1] |
Cash flows provided by (used in) investing activities | (11,212,000,000) | (10,117,000,000) | [1] | (10,230,000,000) | [1] |
Cash flows from (used in) financing activities [abstract] | |||||
New finance debt | 998,000,000 | 0 | [1] | 1,322,000,000 | [1] |
Repayment of finance debt | 2,875,000,000 | (4,775,000,000) | [1] | (1,072,000,000) | [1] |
Dividend paid | 2,672,000,000 | (1,491,000,000) | [1] | (1,876,000,000) | [1] |
Net current finance debt and other | (476,000,000) | 444,000,000 | [1] | (333,000,000) | [1] |
Cash flows provided by (used in) financing activities | (5,025,000,000) | (5,822,000,000) | [1] | (1,959,000,000) | [1] |
Net increase (decrease) in cash and cash equivalents | 3,458,000,000 | (1,137,000,000) | [1] | (3,371,000,000) | [1] |
Effect of exchange rate changes on cash and cash equivalents | (292,000,000) | 436,000,000 | [1] | (152,000,000) | [1] |
Cash and cash equivalents at the beginning of the period (net of overdraft) | 4,390,000,000 | 5,090,000,000 | [1] | 8,613,000,000 | [1] |
Cash and cash equivalents at the end of the period (net of overdraft) | 7,556,000,000 | 4,390,000,000 | 5,090,000,000 | [1] | |
Previously stated [member] | |||||
Cash flows from (used in) operating activities [abstract] | |||||
Income / (loss) before tax | 13,420,000,000 | (178,000,000) | |||
Depreciation, amortisation and net impairment losses | 8,644,000,000 | 11,550,000,000 | |||
Exploration expenditures written off | (8,000,000) | 1,800,000,000 | |||
(Gains) losses on foreign currency transactions and balances | (453,000,000) | (137,000,000) | |||
(Gains) losses on sales of assets and businesses | 395,000,000 | (110,000,000) | |||
(Increase) decrease in other items related to operating activities | (391,000,000) | 1,076,000,000 | |||
(Increase) decrease in net derivative financial instruments | (596,000,000) | 1,307,000,000 | |||
Interest received | 282,000,000 | 280,000,000 | |||
Interest paid | (622,000,000) | (548,000,000) | |||
Cash Flows From Used In Operations Before Changes In Working Capital And Taxes Paid | 20,671,000,000 | 15,040,000,000 | |||
Taxes paid | (5,766,000,000) | (4,386,000,000) | |||
(Increase) decrease in working capital | (542,000,000) | (1,620,000,000) | |||
Cash flows provided by operating activities | 14,363,000,000 | 9,034,000,000 | |||
Cash flows from (used in) investing activities [abstract] | |||||
Capital expenditures and investments | (10,755,000,000) | (12,191,000,000) | |||
(Increase) decrease in financial investments | 592,000,000 | 877,000,000 | |||
(Increase) decrease in other items interest bearing | 79,000,000 | 107,000,000 | |||
Proceeds from sale of assets and businesses | 406,000,000 | 761,000,000 | |||
Cash flows provided by (used in) investing activities | (9,678,000,000) | (10,446,000,000) | |||
Cash flows from (used in) financing activities [abstract] | |||||
New finance debt | 0 | 1,322,000,000 | |||
Repayment of finance debt | (4,775,000,000) | (1,072,000,000) | |||
Dividend paid | (1,491,000,000) | (1,876,000,000) | |||
Net current finance debt and other | 444,000,000 | (333,000,000) | |||
Cash flows provided by (used in) financing activities | (5,822,000,000) | (1,959,000,000) | |||
Net increase (decrease) in cash and cash equivalents | (1,137,000,000) | (3,371,000,000) | |||
Effect of exchange rate changes on cash and cash equivalents | 436,000,000 | (152,000,000) | |||
Cash and cash equivalents at the beginning of the period (net of overdraft) | $ 4,390,000,000 | 5,090,000,000 | 8,613,000,000 | ||
Cash and cash equivalents at the end of the period (net of overdraft) | 4,390,000,000 | 5,090,000,000 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Cash flows from (used in) operating activities [abstract] | |||||
(Gains) losses on foreign currency transactions and balances | 326,000,000 | 257,000,000 | |||
(Increase) decrease in other items related to operating activities | (493,000,000) | (199,000,000) | |||
(Increase) decrease in net derivative financial instruments | 615,000,000 | (109,000,000) | |||
Interest received | (134,000,000) | (146,000,000) | |||
Cash Flows From Used In Operations Before Changes In Working Capital And Taxes Paid | 314,000,000 | (197,000,000) | |||
(Increase) decrease in working capital | 125,000,000 | (19,000,000) | |||
Cash flows provided by operating activities | 439,000,000 | (216,000,000) | |||
Cash flows from (used in) investing activities [abstract] | |||||
(Increase) decrease in derivatives financial instruments | (439,000,000) | 216,000,000 | |||
Cash flows provided by (used in) investing activities | $ (439,000,000) | $ 216,000,000 | |||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Condensed consolidated financ_2
Condensed consolidated financial information related to guaranteed debt securities - Profit loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues and other income | $ 79,301 | $ 60,999 | $ 45,993 | ||
Net income/(loss) from equity accounted investments | 291 | 188 | (119) | ||
Total revenues and other income | 79,593 | 61,187 | 45,873 | ||
Total operating expenses | (59,456) | (47,416) | (45,793) | ||
Net operating income/(loss) | 20,137 | 13,771 | 80 | ||
Net financial items | (1,263) | (351) | (258) | ||
Income / (loss) before tax | 18,874 | 13,420 | [1] | (178) | [1] |
Income tax | (11,335) | (8,822) | (2,724) | ||
Net income/(loss) | 7,538 | 4,598 | (2,902) | ||
Other comprehensive income/(loss) | (1,680) | 1,741 | (357) | ||
Total comprehensive income/(loss) | 5,858 | 6,339 | (3,259) | ||
Equinor ASA [member] | |||||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues and other income | 51,567 | 39,750 | 31,580 | ||
Net income/(loss) from equity accounted investments | 7,832 | 5,051 | (2,726) | ||
Total revenues and other income | 59,399 | 44,801 | 28,854 | ||
Total operating expenses | (51,596) | (39,570) | (31,784) | ||
Net operating income/(loss) | 7,803 | 5,232 | (2,930) | ||
Net financial items | (1,300) | 311 | 728 | ||
Income / (loss) before tax | 6,503 | 5,543 | (2,202) | ||
Income tax | 219 | (230) | (407) | ||
Net income/(loss) | 6,722 | 5,314 | (2,608) | ||
Other comprehensive income/(loss) | (867) | 1,017 | (671) | ||
Total comprehensive income/(loss) | 5,855 | 6,330 | (3,279) | ||
Equinor Energy AS [member] | |||||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues and other income | 25,365 | 20,579 | 15,405 | ||
Net income/(loss) from equity accounted investments | 1,065 | (401) | (3,987) | ||
Total revenues and other income | 26,430 | 20,178 | 11,418 | ||
Total operating expenses | (10,138) | (9,217) | (10,989) | ||
Net operating income/(loss) | 16,292 | 10,961 | 429 | ||
Net financial items | (274) | (378) | (560) | ||
Income / (loss) before tax | 16,018 | 10,583 | (131) | ||
Income tax | (10,719) | (8,094) | (2,392) | ||
Net income/(loss) | 5,299 | 2,489 | (2,523) | ||
Other comprehensive income/(loss) | (334) | 355 | 153 | ||
Total comprehensive income/(loss) | 4,965 | 2,843 | (2,370) | ||
Non-guarantor subsidiaries [Member] | |||||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues and other income | 29,374 | 22,204 | 15,472 | ||
Net income/(loss) from equity accounted investments | 262 | 33 | 26 | ||
Total revenues and other income | 29,636 | 22,237 | 15,498 | ||
Total operating expenses | (24,862) | (20,022) | (19,364) | ||
Net operating income/(loss) | 4,774 | 2,216 | (3,865) | ||
Net financial items | (505) | 439 | (115) | ||
Income / (loss) before tax | 4,269 | 2,655 | (3,980) | ||
Income tax | (786) | (539) | 97 | ||
Net income/(loss) | 3,483 | 2,116 | (3,884) | ||
Other comprehensive income/(loss) | (620) | 878 | (280) | ||
Total comprehensive income/(loss) | 2,863 | 2,995 | (4,163) | ||
Consodolidation Adjustments [Member] | |||||
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||
Revenues and other income | (27,004) | (21,535) | (16,464) | ||
Net income/(loss) from equity accounted investments | (8,868) | (4,495) | 6,567 | ||
Total revenues and other income | (35,872) | (26,029) | (9,898) | ||
Total operating expenses | 27,140 | 21,392 | 16,344 | ||
Net operating income/(loss) | (8,732) | (4,637) | 6,446 | ||
Net financial items | 817 | (724) | (311) | ||
Income / (loss) before tax | (7,916) | (5,361) | 6,135 | ||
Income tax | (49) | 40 | (23) | ||
Net income/(loss) | (7,965) | (5,321) | 6,113 | ||
Other comprehensive income/(loss) | 140 | (509) | 441 | ||
Total comprehensive income/(loss) | $ (7,825) | $ (5,830) | $ 6,553 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Condensed consolidated financ_3
Condensed consolidated financial information related to guaranteed debt securities - Balance sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
ASSETS | ||||||
Property, plant, equipment and intangible assets | $ 74,934 | $ 72,258 | ||||
Equity accounted investments | 2,863 | 2,551 | $ 2,245 | |||
Other non-current assets | 8,655 | 9,102 | ||||
Non-current receivables from subsidiaries | 0 | 0 | ||||
Total non-current assets | 86,452 | 83,911 | 79,133 | |||
Current receivables from subsidiaries | 0 | 0 | ||||
Other current assets | 18,501 | 21,430 | ||||
Cash and cash equivalents | 7,556 | 4,390 | 5,090 | [1] | $ 8,613 | [1] |
Total current assets | 26,056 | 25,820 | ||||
Assets classified as held for sale | 0 | 1,369 | ||||
Total assets | 112,508 | 111,100 | ||||
EQUITY AND LIABILITIES | ||||||
Total equity | 42,990 | 39,885 | 35,099 | 40,307 | ||
Non-current liabilities to subsidiaries | 0 | 0 | ||||
Other non-current liabilities | 52,914 | 52,197 | ||||
Total non-current liabilities | 52,914 | 52,198 | ||||
Other current liabilities | 16,605 | 19,017 | ||||
Current liabilities to subsidiaries | 0 | 0 | ||||
Total current liabilities | 16,605 | 19,017 | ||||
Liabilities directly associated with the assets classified as held for sale | 0 | 0 | ||||
Total liabilities | 69,519 | 71,214 | ||||
Total equity and liabilities | 112,508 | 111,100 | ||||
Equinor ASA [member] | ||||||
ASSETS | ||||||
Property, plant, equipment and intangible assets | 502 | 541 | ||||
Equity accounted investments | 46,828 | 42,625 | ||||
Other non-current assets | 2,741 | 3,851 | ||||
Non-current receivables from subsidiaries | 25,524 | 25,896 | ||||
Total non-current assets | 75,595 | 72,914 | ||||
Current receivables from subsidiaries | 2,379 | 2,448 | ||||
Other current assets | 13,082 | 16,165 | ||||
Cash and cash equivalents | 6,287 | 3,759 | 4,274 | 7,471 | ||
Total current assets | 21,747 | 22,372 | ||||
Assets classified as held for sale | 0 | 0 | ||||
Total assets | 97,342 | 95,286 | ||||
EQUITY AND LIABILITIES | ||||||
Total equity | 42,970 | 39,861 | ||||
Non-current liabilities to subsidiaries | 20 | 19 | ||||
Other non-current liabilities | 28,416 | 29,070 | ||||
Total non-current liabilities | 28,436 | 29,090 | ||||
Other current liabilities | 6,955 | 9,242 | ||||
Current liabilities to subsidiaries | 18,981 | 17,094 | ||||
Total current liabilities | 25,936 | 26,335 | ||||
Liabilities directly associated with the assets classified as held for sale | 0 | 0 | ||||
Total liabilities | 54,372 | 55,425 | ||||
Total equity and liabilities | 97,342 | 95,286 | ||||
Equinor Energy AS [member] | ||||||
ASSETS | ||||||
Property, plant, equipment and intangible assets | 33,309 | 32,956 | ||||
Equity accounted investments | 23,668 | 21,593 | ||||
Other non-current assets | 381 | 346 | ||||
Non-current receivables from subsidiaries | 0 | 0 | ||||
Total non-current assets | 57,358 | 54,895 | ||||
Current receivables from subsidiaries | 6,529 | 2,615 | ||||
Other current assets | 927 | 923 | ||||
Cash and cash equivalents | 27 | 27 | 46 | 87 | ||
Total current assets | 7,483 | 3,566 | ||||
Assets classified as held for sale | 0 | 0 | ||||
Total assets | 64,841 | 58,460 | ||||
EQUITY AND LIABILITIES | ||||||
Total equity | 26,706 | 20,813 | ||||
Non-current liabilities to subsidiaries | 13,847 | 14,682 | ||||
Other non-current liabilities | 17,033 | 16,145 | ||||
Total non-current liabilities | 30,880 | 30,827 | ||||
Other current liabilities | 6,511 | 5,879 | ||||
Current liabilities to subsidiaries | 744 | 941 | ||||
Total current liabilities | 7,256 | 6,821 | ||||
Liabilities directly associated with the assets classified as held for sale | 0 | 0 | ||||
Total liabilities | 38,135 | 37,648 | ||||
Total equity and liabilities | 64,841 | 58,460 | ||||
Non-guarantor subsidiaries [Member] | ||||||
ASSETS | ||||||
Property, plant, equipment and intangible assets | 41,140 | 38,786 | ||||
Equity accounted investments | 1,697 | 1,311 | ||||
Other non-current assets | 5,572 | 4,989 | ||||
Non-current receivables from subsidiaries | 22 | 22 | ||||
Total non-current assets | 48,432 | 45,107 | ||||
Current receivables from subsidiaries | 13,215 | 14,215 | ||||
Other current assets | 4,780 | 5,582 | ||||
Cash and cash equivalents | 1,242 | 603 | 770 | 1,056 | ||
Total current assets | 19,237 | 20,400 | ||||
Assets classified as held for sale | 0 | 1,369 | ||||
Total assets | 67,668 | 66,876 | ||||
EQUITY AND LIABILITIES | ||||||
Total equity | 42,838 | 42,634 | ||||
Non-current liabilities to subsidiaries | 11,679 | 11,263 | ||||
Other non-current liabilities | 7,536 | 7,104 | ||||
Total non-current liabilities | 19,216 | 18,367 | ||||
Other current liabilities | 3,216 | 4,632 | ||||
Current liabilities to subsidiaries | 2,398 | 1,243 | ||||
Total current liabilities | 5,614 | 5,874 | ||||
Liabilities directly associated with the assets classified as held for sale | 0 | 0 | ||||
Total liabilities | 24,830 | 24,242 | ||||
Total equity and liabilities | 67,668 | 66,876 | ||||
Consodolidation Adjustments [Member] | ||||||
ASSETS | ||||||
Property, plant, equipment and intangible assets | (17) | (25) | ||||
Equity accounted investments | (69,330) | (62,978) | ||||
Other non-current assets | (39) | (84) | ||||
Non-current receivables from subsidiaries | (25,547) | (25,918) | ||||
Total non-current assets | (94,933) | (89,005) | ||||
Current receivables from subsidiaries | (22,123) | (19,278) | ||||
Other current assets | (288) | (1,240) | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Total current assets | (22,411) | (20,517) | ||||
Assets classified as held for sale | 0 | 0 | ||||
Total assets | (117,343) | (109,523) | ||||
EQUITY AND LIABILITIES | ||||||
Total equity | (69,524) | (63,422) | ||||
Non-current liabilities to subsidiaries | (25,547) | (25,964) | ||||
Other non-current liabilities | (71) | (122) | ||||
Total non-current liabilities | (25,618) | (26,086) | ||||
Other current liabilities | (78) | (736) | ||||
Current liabilities to subsidiaries | (22,123) | (19,278) | ||||
Total current liabilities | (22,201) | (20,014) | ||||
Liabilities directly associated with the assets classified as held for sale | 0 | 0 | ||||
Total liabilities | (47,819) | (46,100) | ||||
Total equity and liabilities | $ (117,343) | $ (109,523) | ||||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |
Condensed consolidated financ_4
Condensed consolidated financial information related to guaranteed debt securities - Cash flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed statement of cash flows [abstract] | |||||
Cash flows provided by (used in) operating activities | $ 19,694 | $ 14,802 | [1] | $ 8,818 | [1] |
Cash flows provided by (used in) investing activities | (11,212) | (10,117) | [1] | (10,230) | [1] |
Cash flows provided by (used in) financing activities | (5,025) | (5,822) | [1] | (1,959) | [1] |
Net increase (decrease) in cash and cash equivalents | 3,458 | (1,137) | [1] | (3,371) | [1] |
Effect of exchange rate changes on cash and cash equivalents (net of overdraft) | (292) | 436 | [1] | (152) | [1] |
Cash and cash equivalents at the beginning of the period (net of overdraft) | 4,390 | 5,090 | [1] | 8,613 | [1] |
Cash and cash equivalents at the end of the period (net of overdraft) | 7,556 | 4,390 | 5,090 | [1] | |
Equinor ASA [member] | |||||
Condensed statement of cash flows [abstract] | |||||
Cash flows provided by (used in) operating activities | 4,565 | 339 | 3,158 | ||
Cash flows provided by (used in) investing activities | 1,046 | 3,227 | (2,966) | ||
Cash flows provided by (used in) financing activities | (2,840) | (4,459) | (3,308) | ||
Net increase (decrease) in cash and cash equivalents | 2,771 | (892) | (3,116) | ||
Effect of exchange rate changes on cash and cash equivalents (net of overdraft) | (243) | 377 | (81) | ||
Cash and cash equivalents at the beginning of the period (net of overdraft) | 3,759 | 4,274 | 7,471 | ||
Cash and cash equivalents at the end of the period (net of overdraft) | 6,287 | 3,759 | 4,274 | ||
Equinor Energy AS [member] | |||||
Condensed statement of cash flows [abstract] | |||||
Cash flows provided by (used in) operating activities | 12,421 | 9,506 | 7,262 | ||
Cash flows provided by (used in) investing activities | (8,281) | (9,070) | (6,785) | ||
Cash flows provided by (used in) financing activities | (4,140) | (478) | (516) | ||
Net increase (decrease) in cash and cash equivalents | 0 | (42) | (39) | ||
Effect of exchange rate changes on cash and cash equivalents (net of overdraft) | 0 | 23 | (2) | ||
Cash and cash equivalents at the beginning of the period (net of overdraft) | 27 | 46 | 87 | ||
Cash and cash equivalents at the end of the period (net of overdraft) | 27 | 27 | 46 | ||
Non-guarantor subsidiaries [Member] | |||||
Condensed statement of cash flows [abstract] | |||||
Cash flows provided by (used in) operating activities | 7,224 | 5,242 | 1,517 | ||
Cash flows provided by (used in) investing activities | (6,649) | (4,718) | (5,349) | ||
Cash flows provided by (used in) financing activities | 112 | (727) | 3,616 | ||
Net increase (decrease) in cash and cash equivalents | 687 | (203) | (216) | ||
Effect of exchange rate changes on cash and cash equivalents (net of overdraft) | (49) | 36 | (69) | ||
Cash and cash equivalents at the beginning of the period (net of overdraft) | 603 | 770 | 1,056 | ||
Cash and cash equivalents at the end of the period (net of overdraft) | 1,242 | 603 | 770 | ||
Consodolidation Adjustments [Member] | |||||
Condensed statement of cash flows [abstract] | |||||
Cash flows provided by (used in) operating activities | (4,516) | (286) | (3,119) | ||
Cash flows provided by (used in) investing activities | 2,672 | 444 | 4,869 | ||
Cash flows provided by (used in) financing activities | 1,844 | (158) | (1,750) | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||
Effect of exchange rate changes on cash and cash equivalents (net of overdraft) | 0 | 0 | 0 | ||
Cash and cash equivalents at the beginning of the period (net of overdraft) | 0 | 0 | 0 | ||
Cash and cash equivalents at the end of the period (net of overdraft) | $ 0 | $ 0 | $ 0 | ||
[1] | * Related to a change in accounting policies, see note 2 7 Changes in accounting policies for more information. |