# EDGAR Filing Document

**Accession Number:** 0001140625
**File Stem:** 0001140625-23-000036
**Filing Date:** 2023-3
**Character Count:** 1967475
**Document Hash:** 41f7e74c7f0056885be7a7da85cc7261
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140625-23-000036.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001140625-23-000036

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 314

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230323

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EQUINOR ASA
- **CENTRAL INDEX KEY:** 0001140625
- **STANDARD INDUSTRIAL CLASSIFICATION:** PETROLEUM REFINING [2911]
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15200
- **FILM NUMBER:** 23754555

**BUSINESS ADDRESS:**
- **STREET 1:** FORUSBEEN 50
- **CITY:** STAVANGER NORWAY
- **STATE:** Q8
- **ZIP:** N 4035
- **BUSINESS PHONE:** 47 51 99 00 00

**MAIL ADDRESS:**
- **STREET 1:** FORUSBEEN 50
- **CITY:** STAVANGER
- **STATE:** Q8
- **ZIP:** N 4035

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STATOIL ASA
- **DATE OF NAME CHANGE:** 20091102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STATOILHYDRO ASA
- **DATE OF NAME CHANGE:** 20071005

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STATOIL ASA
- **DATE OF NAME CHANGE:** 20010515

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

# FORM 20-F

(Mark One)

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2022
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
OR
☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report

Commission file number 1-15200

# Equinor ASA

(Exact Name of Registrant as Specified in Its Charter)

N/A

(Translation of Registrant's Name Into English)

Norway

(Jurisdiction of Incorporation or Organization)

Forusbeen 50, N-4035, Stavanger, Norway

(Address of Principal Executive Offices)

Torgrim Reitan

Chief Financial Officer

Equinor ASA

Forusbeen 50, N-4035

Stavanger, Norway

Telephone No.: 011-47-5199-0000

Fax No.: 011-47-5199-0050

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

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

| Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered |
| --- | --- | --- |
| American Depositary Shares | EQNR | New York Stock Exchange |
| Ordinary shares, nominal value of NOK 2.50 each | EQNR | New York Stock Exchange* |

*Listed, not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

**Ordinary shares of NOK 2.50 each**

**3,121,942,270**

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

Yes  No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes  No

Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  No

Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)

Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of 'large accelerated filer,' 'accelerated filer,' and 'emerging growth company' in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  Accelerated filer  Non-accelerated filer  Emerging growth company

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act

† The term 'new or revised financial accounting standard' refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 762(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

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

U.S. GAAP  International Financial Reporting Standards as issued by the International Accounting Standards Board  Other

If 'Other' has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17

Item 18

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

Yes  No

# TABLE OF CONTENTS

INTRODUCTION

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FORWARD-LOOKING STATEMENTS

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

- A. Directors and Senior Management
- B. Advisers
- C. Auditors

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

- A. Offer Statistics
- B. Method and Expected Timetable

ITEM 3. KEY INFORMATION

- A. [Reserved]
- B. Capitalization and Indebtedness
- C. Reason for the Offer and Use of Proceeds
- D. Risk Factors

ITEM 4. INFORMATION ON THE COMPANY

- A. History and Development of the Company
- B. Business Overview
- C. Organizational Structure
- D. Property, Plant and Equipment

ITEM 4A. UNRESOLVED STAFF COMMENTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

- A. Operating Results
- B. Liquidity and capital resources
- C. Research and development, Patents and Licences, etc.
- D. Trend information
- E. Critical Accounting Estimates

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

- A. Directors and Senior Management
- B. Compensation
- C. Board Practices
- D. Employees
- E. Share Ownership
- F. Disclosure of a registrant's action to recover erroneously awarded compensation.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

- A. Major shareholders
- B. Related Party Transactions
- C. Interests of Experts and Counsel

ITEM 8. FINANCIAL INFORMATION

- A. Consolidated Statements and Other Financial Information
- B. Significant Changes

ITEM 9. THE OFFER AND LISTING

- A. Offer and Listing Details
- B. Plan of Distribution
- C. Markets
- D. Selling Shareholders
- E. Dilution
- F. Expenses of the Issue

ITEM 10. ADDITIONAL INFORMATION

- A. Share Capital
- B. Memorandum and Articles of Association
- C. Material Contracts
- D. Exchange controls

E. Taxation
F. Dividends and Paying Agents
G. Statement by Experts
H. Documents on Display
I. Subsidiary Information
J. Annual Report to Security Holders.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities
B. Warrants and Rights
C. Other Securities
D. American Depositary Shares

PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

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

ITEM 15. CONTROLS AND PROCEDURES

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

ITEM 16B. CODE OF ETHICS

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

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

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

ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

ITEM 16G. CORPORATE GOVERNANCE

ITEM 16H. MINE SAFETY DISCLOSURE

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

PART III

ITEM 17. FINANCIAL STATEMENTS

ITEM 18. FINANCIAL STATEMENTS

ITEM 19. EXHIBITS

CONSOLIDATED FINANCIAL STATEMENTS

# INTRODUCTION

Unless otherwise indicated, all references herein to 'we', 'our', the 'company', the 'group' or 'Equinor' are references to Equinor ASA and its consolidated subsidiaries.

This document is our annual report on Form 20-F for the year ended 31 December 2022 ('**2022 Form 20-F**'). Reference is made to our Norwegian Integrated Annual Report for 2022 which is attached hereto as Exhibit 15.4 (the '**2022 Annual Report**') and our 2022 Remuneration Report which is attached hereto as exhibit 15.6 (the '**2022 Remuneration Report**'). Only (i) the information included in this 2022 Form 20-F, (ii) the information in the 2022 Annual Report and the 2022 Remuneration Report that is incorporated by reference in this 2022 Form 20-F (excluding any page references incorporated in the incorporated material unless specifically noted otherwise), and (iii) the other exhibits to this 2022 Form 20-F shall be deemed to be filed with the Securities and Exchange Commission ('**SEC**') for any purpose, including incorporation by reference into the Registration Statement on Form F-3 filed on July 10, 2020 (File No. 333-239808), and Registration Statement on Form S-8 filed on February 9, 2022 (File No. 333-262601) and any other documents filed by us pursuant to the Securities Act of 1933, as amended, which purport to incorporate by reference the 2022 Form 20-F. Unless otherwise indicated, references to major headings include all information under such major headings, including subheadings, unless such reference is a reference to a subheading, in which case such reference includes only the information contained under such subheading. Any other information shall not be deemed to be so incorporated by reference.

In addition to the information set out below, the information set forth under the heading 'Terms and abbreviations' in Section 5.9 of Chapter 5 on pages 327 - 334 of the 2022 Annual Report is incorporated herein by reference.

The 2022 Annual Report contains references to our website (https://www.equinor.com). Information on our website or any other website referenced in the 2022 Annual Report is not incorporated into this document and should not be considered part of this document.

The SEC maintains an Internet website that contains reports and other information regarding issuers that file electronically with the SEC. Our filings with the SEC are available to the public through the SEC's website at http://www.sec.gov.

The information about Equinor's competitive position in this 2022 Form 20-F (including the information in the 2022 Annual Report that is incorporated by reference herein) is based on several sources such as investment analyst reports, independent market studies, and internal assessments of market share based on publicly available information about the financial results and performance of market players.

## USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Since 2007, Equinor has been preparing its audited consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and as issued by the International Accounting Standards Board. IFRS has been applied consistently to all periods in our audited consolidated financial statements as of 31 December 2022 and 2021, and for the three years ended 31 December 2022 included in this 2022 Form 20-F (the "Consolidated financial statements").

Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or included in the comparable measures calculated and presented in accordance with generally accepted accounting principles: (i.e, IFRS in the case of Equinor). The following financial measures included in this 2022 Form 20-F may be considered non-GAAP financial measures:

a) Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital employed ratio adjusted
b) Return on average capital employed (ROACE)
c) Organic capital expenditures
d) Free cashflow
e) Adjusted earnings and adjusted earnings after tax
f) Total shareholder return (TSR)
g) Gross capital expenditure (gross capex)

### a) Net debt to capital employed ratio

In Equinor's view, net debt ratio provides a more informative picture of Equinor's financial strength than gross interest-bearing financial debt. Three different net debt ratios are provided below; 1) net debt to capital employed ratio, 2) net debt to capital employed ratio adjusted, including lease liabilities, and 3) net debt to capital employed ratio adjusted.

The calculation is based on gross interest-bearing financial debt in the balance sheet and excludes cash, cash equivalents and current financial investments. Certain adjustments are made, e.g. collateral deposits classified as cash and cash equivalents in the Consolidated balance sheet are considered non-cash in the non-GAAP calculations. The financial investments held in Equinor Insurance AS are excluded in the non-GAAP calculations as they are deemed restricted. These two adjustments increase net debt and give a more prudent definition of the net debt to capital employed ratio than if the IFRS based definition was to be used. Following implementation of IFRS16 Equinor presents a "net debt to capital employed adjusted" excluding lease liabilities from the gross interest-bearing debt. Net interest-bearing debt adjusted for these items is included in the average capital employed. The table below reconciles the net interest-bearing debt adjusted, the capital employed and the net debt to capital employed adjusted ratio with the most directly comparable financial measure or measures calculated in accordance with IFRS.

Forward-looking net debt to capital employed ratio adjusted, including lease liabilities included in this 2022 Form 20-F is not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from IFRS measures used to determine net debt to capital employed ratio adjusted, including lease liabilities cannot be predicted with reasonable certainty.

| Calculation of capital employed and net debt to capital employed ratio (in USD million) |  | For the year ended 31 December |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Shareholders' equity |  | 53,988 | 39,010 | 33,873 |
| Non-controlling interests |  | 1 | 14 | 19 |
| Total equity | A | 53,989 | 39,024 | 33,892 |
| Current finance debt and lease liabilities |  | 5,617 | 6,386 | 5,777 |
| Non-current finance debt and lease liabilities |  | 26,551 | 29,854 | 32,338 |
| Gross interest-bearing debt | B | 32,168 | 36,239 | 38,115 |
| Cash and cash equivalents |  | 15,579 | 14,126 | 6,757 |
| Current financial investments |  | 29,876 | 21,246 | 11,865 |
| Cash and cash equivalents and current financial investment | C | 45,455 | 35,372 | 18,621 |
| Net interest-bearing debt before adjustments | B1 = B-C | (13,288) | 867 | 19,493 |
| Other interest-bearing elements 1) |  | 6,538 | 2,369 | 627 |
| Net interest-bearing debt adjusted, including lease liabilities | B2 | (6,750) | 3,236 | 20,121 |
| Lease liabilities |  | 3,668 | 3,562 | 4,405 |
| Net interest-bearing debt adjusted | B3 | (10,417) | (326) | 15,716 |
| Calculation of capital employed: |  |  |  |  |
| Capital employed | A+B1 | 40,701 | 39,891 | 53,385 |
| Capital employed adjusted, including lease liabilities | A+B2 | 47,239 | 42,259 | 54,012 |
| Capital employed adjusted | A+B3 | 43,571 | 38,697 | 49,608 |
| Calculated net debt to capital employed |  |  |  |  |
| Net debt to capital employed | (B1)/(A+B1) | (32.6%) | 2.2% | 36.5% |
| Net debt to capital employed adjusted, including lease liabilities | (B2)/(A+B2) | (14.3%) | 7.7% | 37.3% |
| Net debt to capital employed adjusted | (B3)/(A+B3) | (23.9%) | (0.8%) | 31.7% |

1) Other interest-bearing elements are cash and cash equivalents adjustments regarding collateral deposits classified as cash and cash equivalents in the Consolidated balance sheet but considered as non-cash in the non-GAAP calculations as well as financial investments in Equinor Insurance AS classified as current financial investments.

#### b) Return on average capital employed (ROACE)

ROACE is defined as adjusted earnings after tax divided by average capital employed adjusted. For a reconciliation for adjusted earnings after tax, see e) later in this section. Average capital employed adjusted at 31 December 2022 is calculated as the average of the capital employed adjusted at 31 December 2022 and at 31 December 2021 as presented in the table Calculation of capital employed and net debt to capital employed ratio section a).

Equinor uses ROACE to measure the return on capital employed adjusted, regardless of whether the financing is through equity or debt. This measure provides useful information for both the group and investors about performance during the period under evaluation. The use of ROACE should not be viewed as an alternative to income before financial items, income taxes and minority interest, or to net income, which are measures calculated in accordance with IFRS or ratios based on these figures.

Forward-looking ROACE included in this 2022 Form 20-F is not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from IFRS measures used to determine ROACE cannot be predicted with reasonable certainty.

| Calculated ROACE based on IFRS (in USD million, except percentages) |  | 31 December |  |
| --- | --- | --- | --- |
|  |  | 2022 | 2021 |
| Net income/(loss) | A | 28,744 | 8,576 |
| Average total equity | 1 | 46,506 | 36,458 |
| Average current finance debt and lease liabilities |  | 6,001 | 6,081 |
| Average non-current finance debt and lease liabilities |  | 28,202 | 31,096 |
| - Average cash and cash equivalents |  | (14,853) | (10,442) |
| - Average current financial investments |  | (25,561) | (16,555) |
| Average net-interest bearing debt | 2 | (6,210) | 10,180 |
| Average capital employed | B = 1+2 | 40,296 | 46,638 |
| Calculated ROACE based on Net income/loss and capital employed | A/B | 71.3% | 18.4% |

| Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted (in USD million, except percentages) |  | 31 December |  |
| --- | --- | --- | --- |
|  |  | 2022 | 2021 |
| Adjusted earnings after tax | A | 22,691 | 10,042 |
| Average capital employed adjusted | B | 41,134 | 44,153 |
| Calculated ROACE based on Adjusted earnings after tax and capital employed adjusted | A/B | 55.2% | 22.7% |

### c) Organic capital expenditures

Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in note 5 Segments to the Consolidated financial statements, amounted to USD 10.0 billion in 2022.

Organic capital expenditures are capital expenditures excluding acquisitions, recognised lease assets (RoU assets) and other investments with significant different cash flow patterns. Organic capital expenditure is a measure which Equinor believes gives relevant information about Equinor's investments in maintenance and development of the company's assets.

In 2022, a total of USD 1.9 billion was excluded in the organic capital expenditures. Among items excluded were additions of Right of Use (RoU) assets related to leases and acquisition of Triton Power in UK, certain Statford licence shares and US based battery storage developer East Point Energy, resulting in organic capital expenditure of USD 8.1 billion.

In 2021, a total of USD 0.4 billion was excluded in the organic capital expenditures. Among items excluded were acquisition of 100% interest in Polish onshore renewables developer Wento and additions of Right of Use (RoU) assets related to leases, resulting in organic capital expenditure of USD 8.1 billion.

Forward-looking organic capital expenditures included in this 2022 Form 20-F are not reconcilable to the most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from such IFRS measure to determine organic capital expenditures cannot be predicted with reasonable certainty.

### d) Free cash flow

Free cash flow represents, and is used by management to evaluate, cash generated from operational and investing activities available for debt servicing and distribution to shareholders. However, free cash flow is not a measure of our liquidity under IFRS and should not be considered in isolation or as a substitute for an analysis of our results as reported in this 2022 Form 20-F. Our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures.

The following table provides a reconciliation of Free cash flow to Cash flows provided by operating activities before taxes paid and working capital items, the most directly comparable financial measure presented in accordance with IFRS, as of the dates indicated:

| Free cash flow (in USD billion) | 2022 | 2021 |
| --- | --- | --- |
| Cash flows provided by operating activities before taxes paid and working capital items | 83.6 | 42.0 |
| Taxes paid | (43.9) | (8.6) |
| Capital expenditures and investments | (8.6) | (8.2) |
| Proceeds from sale of assets and businesses | 1.0 | 1.9 |
| Free cash flow before capital distribution | 32.1 | 27.1 |
| Dividend paid | (5.4) | (1.8) |
| Share buy-back | (3.3) | (0.3) |
| Free cash flow | 23.4 | 25.0 |

#### e) Adjusted earnings and adjusted earnings after tax

Management considers adjusted earnings and adjusted earnings after tax together with other non-GAAP financial measures as defined below, to provide an indication of the underlying operational and financial performance in the period (excluding financing) by adjusting by items that are not well correlated to Equinor's operating performance, and therefore better facilitate comparisons between periods.

**Adjusted earnings** are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in order to separate out effects that management considers may not be well correlated to Equinor's underlying operational performance in the individual reporting period. Management considers adjusted earnings to be a supplemental measure to Equinor's IFRS measures, which provides an indication of Equinor's underlying operational performance in the period and facilitates an alternative understanding of operational trends between the periods. Adjusted earnings include adjusted revenues and other income, adjusted purchases, adjusted operating expenses and selling, general and administrative expenses, adjusted depreciation expenses and adjusted exploration expenses. Adjusted earnings adjusts for the following items:

- ● **Changes in fair value of derivatives:** Certain gas contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives, required to be carried at fair value. Also, certain transactions related to historical divestments include contingent consideration, are carried at fair value. The accounting impacts of changes in fair value of the aforementioned are excluded from adjusted earnings. In addition, adjustments are also made for changes in the unrealised fair value of derivatives related to some natural gas trading contracts. Due to the nature of these gas sales contracts, these are classified as financial derivatives to be measured at fair value at the balance sheet date. Unrealised gains and losses on these contracts reflect the value of the difference between current market gas prices and the actual prices to be realised under the gas sales contracts. Only realised gains and losses on these contracts are reflected in adjusted earnings. This presentation best reflects the underlying performance of the business as it replaces the effect of temporary timing differences associated with the re-measurements of the derivatives to fair value at the balance sheet date with actual realised gains and losses for the period
- ● **Periodisation of inventory hedging effect:** Commercial storage is hedged in the paper market and is accounted for using the lower of cost or market price. If market prices increase above cost price, the inventory will not reflect this increase in value. There will be a loss on the derivative hedging the inventory since the derivatives always reflect changes in the market price. An adjustment is made to reflect the unrealised market increase of the commercial storage. As a result, loss on derivatives is matched by a similar adjustment for the exposure being managed. If market prices decrease below cost price, the write-down of the inventory and the derivative effect in the IFRS income statement will offset each other and no adjustment is made
- ● **Over/underlift:** Over/underlift is accounted for using the sales method and therefore revenues were reflected in the period the product was sold rather than in the period it was produced. The over/underlift position depended on a number of factors related to our lifting programme and the way it corresponded to our entitlement share of production. The effect on income for the period is therefore adjusted, to show estimated revenues and associated costs based upon the production for the period to reflect operational performance and comparability with peers.
- ● The **operational storage** is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or losses will fluctuate from one period to another and are not considered part of the underlying operations for the period
- ● **Impairment and reversal of impairment** are excluded from adjusted earnings since they affect the economics of an asset for the lifetime of that asset, not only the period in which it is impaired or the impairment is reversed. Impairment and reversal of impairment can impact both the exploration expenses and the depreciation, amortisation and net impairments line items
- ● **Gain or loss from sales of assets** is eliminated from the measure since the gain or loss does not give an indication of future performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is acquired until it is sold
- ● **Eliminations (Internal unrealised profit on inventories):** Volumes derived from equity oil inventory will vary depending on several factors and inventory strategies, i.e. level of crude oil in inventory, equity oil used in the refining process and level of in-transit cargoes. Internal profit related to volumes sold between entities within the group, and still in inventory at period end, is

eliminated according to IFRS (write down to production cost). The proportion of realised versus unrealised gain will fluctuate from one period to another due to inventory strategies and consequently impact net operating income/(loss). Write-down to production cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit related to equity volumes is excluded in adjusted earnings

- **Other items of income and expense** are adjusted when the impacts on income in the period are not reflective of Equinor's underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions but they may also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. However, other items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.
- **Change in accounting policy** are adjusted when the impacts on income in the period are unusual or infrequent, and not reflective of Equinor's underlying operational performance in the reporting period

**Adjusted earnings after tax** - equals the sum of net operating income/(loss) less income tax in reporting segments and adjustments to operating income taking the applicable marginal tax into consideration. Adjusted earnings after tax excludes net financial items and the associated tax effects on net financial items. It is based on adjusted earnings less the tax effects on all elements included in adjusted earnings (or calculated tax on operating income and on each of the adjusting items using an estimated marginal tax rate). In addition, tax effect related to tax exposure items not related to the individual reporting period is excluded from adjusted earnings after tax. Management considers adjusted earnings after tax, which reflects a normalised tax charge associated with its operational performance excluding the impact of financing, to be a supplemental measure to Equinor's net income. Certain net USD denominated financial positions are held by group companies that have a USD functional currency that is different from the currency in which the taxable income is measured. As currency exchange rates change between periods, the basis for measuring net financial items for IFRS will change disproportionately with taxable income which includes exchange gains and losses from translating the net USD denominated financial positions into the currency of the applicable tax return. Therefore, the effective tax rate may be significantly higher or lower than the statutory tax rate for any given period. Adjusted taxes included in adjusted earnings after tax should not be considered indicative of the amount of current or total tax expense (or taxes payable) for the period.

Adjusted earnings and adjusted earnings after tax should be considered additional measures rather than substitutes for net operating income/(loss) and net income/(loss), which are the most directly comparable IFRS measures. There are material limitations associated with the use of adjusted earnings and adjusted earnings after tax compared with the IFRS measures as such non-GAAP measures do not include all the items of revenues/gains or expenses/losses of Equinor that are needed to evaluate its profitability on an overall basis. Adjusted earnings and adjusted earnings after tax are only intended to be indicative of the underlying developments in trends of our on-going operations for the production, manufacturing and marketing of our products and exclude pre-and post-tax impacts of net financial items. Equinor reflects such underlying development in our operations by eliminating the effects of certain items that may not be directly associated with the period's operations or financing. However, for that reason, adjusted earnings and adjusted earnings after tax are not complete measures of profitability. These measures should therefore not be used in isolation.

| Items impacting net operating income/(loss) in the full year of 2022 (in USD million) | Equinor group | E&P Norway | E&P International | E&P USA | MMP | REN | Other |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Total revenues and other income | 150,806 | 75,930 | 7,431 | 5,523 | 148,105 | 185 | (86,367) |
| Adjusting items | (896) | (487) | 185 | - | (506) | (110) | 22 |
| Changes in fair value of derivatives | (207) | (263) | 205 | - | (149) | - | - |
| Periodisation of inventory hedging effect | (349) | - | - | - | (349) | - | - |
| Impairment from associated companies | 1 | - | - | - | - | 1 | - |
| Over-/underlift | 510 | 507 | 3 | - | - | - | - |
| Other adjustments 1) | (0) | - | (22) | - | - | - | 22 |
| Gain/loss on sale of assets | (850) | (731) | - | - | (9) | (111) | (0) |
| Adjusted total revenues and other income | 149,910 | 75,443 | 7,616 | 5,523 | 147,599 | 75 | (86,345) |
| Purchases [net of inventory variation] | (53,806) | 0 | (116) | (0) | (139,916) | - | 86,227 |
| Adjusting items | (610) | - | - | - | (33) | - | (577) |
| Operational storage effects | (33) | - | - | - | (33) | - | - |
| Eliminations | (577) | - | - | - | - | - | (577) |
| Adjusted purchases [net of inventory variation] | (54,415) | 0 | (116) | (0) | (139,949) | - | 85,650 |
| Operating and administrative expenses | (10,594) | (3,782) | (1,698) | (938) | (4,591) | (265) | 681 |
| Adjusting items | 64 | (54) | 22 | 6 | 75 | 10 | 5 |
| Over-/underlift | (41) | (54) | 13 | - | - | - | - |
| Other adjustments | 7 | - | 2 | - | - | - | 5 |
| Gain/loss on sale of assets | 23 | - | 7 | 6 | - | 10 | - |
| Provisions | 75 | - | - | - | 75 | - | - |
| Adjusted operating and administrative expenses | (10,530) | (3,836) | (1,675) | (933) | (4,516) | (255) | 686 |
| Depreciation, amortisation and net impairments | (6,391) | (4,167) | (1,731) | (361) | 14 | (4) | (142) |
| Adjusting items | (2,488) | (819) | 286 | (1,060) | (895) | - | - |
| Impairment | 1,111 | 3 | 1,033 | - | 75 | - | - |
| Reversal of impairment | (3,598) | (821) | (747) | (1,060) | (970) | - | - |
| Adjusted depreciation, amortisation and net impairments | (8,879) | (4,986) | (1,445) | (1,422) | (881) | (4) | (142) |
| Exploration expenses | (1,205) | (366) | (638) | (201) | - | - | - |
| Adjusting items | 59 | 4 | 65 | (11) | - | - | - |
| Impairment | 85 | 4 | 65 | 15 | - | - | - |
| Reversal of impairment | (26) | - | - | (26) | - | - | - |
| Adjusted exploration expenses | (1,146) | (361) | (573) | (212) | - | - | - |
| Net operating income/(loss) | 78,811 | 67,614 | 3,248 | 4,022 | 3,612 | (84) | 399 |
| Sum of adjusting items | (3,871) | (1,355) | 559 | (1,065) | (1,360) | (100) | (550) |
| Adjusted earnings/(loss) | 74,940 | 66,260 | 3,806 | 2,957 | 2,253 | (184) | (151) |
| Tax on adjusted earnings | (52,250) | (51,373) | (1,248) | (79) | 474 | 14 | (38) |
| Adjusted earnings/(loss) after tax | 22,691 | 14,887 | 2,558 | 2,878 | 2,727 | (170) | (189) |

1) The adjustment in E&P International and Other is related to recirculation of currency effects resulting from exit of equity accounted companies.

| Items impacting net operating income/(loss) in the full year of 2021 (in USD million) | Equinor group | E&P Norway | E&P International | E&P USA | MMP | REN | Other |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Total revenues and other income 1) | 90,924 | 39,386 | 5,566 | 4,149 | 87,393 | 1,411 | (46,980) |
| Adjusting items | (1,836) | (339) | 43 | - | (155) | (1,381) | (4) |
| Changes in fair value of derivatives | (146) | (145) | 36 | - | (37) | - | - |
| Periodisation of inventory hedging effect | 49 | - | - | - | 49 | - | - |
| Impairment from associated companies | 4 | - | - | - | - | 4 | - |
| Over-/underlift | (125) | (194) | 69 | - | - | - | - |
| Gain/loss on sale of assets | (1,561) | - | (5) | - | (167) | (1,385) | (4) |
| Provisions | (57) | - | (57) | - | - | - | - |
| Adjusted total revenues and other income 1) | 89,088 | 39,047 | 5,609 | 4,149 | 87,238 | 30 | (46,984) |
| Purchases [net of inventory variation] | (35,160) | (0) | (58) | (0) | (80,873) | (0) | 45,771 |
| Adjusting items | 230 | - | - | - | (231) | - | 461 |
| Operational storage effects | (231) | - | - | - | (231) | - | - |
| Eliminations | 461 | - | - | - | - | - | 461 |
| Adjusted purchases [net of inventory variation] | (34,930) | (0) | (58) | (0) | (81,104) | (0) | 46,232 |
| Operating and administrative expenses 1) | (9,378) | (3,652) | (1,406) | (1,074) | (3,753) | (163) | 670 |
| Adjusting items | (11) | 62 | (32) | 35 | (87) | - | 12 |
| Over-/underlift | 23 | 55 | (32) | - | - | - | - |
| Other adjustments 2) | (43) | 7 | - | - | (50) | - | - |
| Gain/loss on sale of assets | 47 | - | - | 35 | - | - | 12 |
| Provisions | (37) | - | - | - | (37) | - | - |
| Adjusted operating and administrative expenses 1) | (9,389) | (3,590) | (1,438) | (1,039) | (3,841) | (163) | 682 |
| Depreciation, amortisation and net impairments 1) | (11,719) | (4,900) | (3,321) | (1,734) | (1,604) | (3) | (156) |
| Adjusting items | 1,288 | (1,102) | 1,587 | 69 | 735 | - | - |
| Impairment | 2,963 | 276 | 1,836 | 116 | 735 | - | - |
| Reversal of impairment | (1,675) | (1,379) | (250) | (47) | - | - | - |
| Adjusted depreciation, amortisation and net impairments 1) | (10,431) | (6,002) | (1,734) | (1,665) | (869) | (3) | (156) |
| Exploration expenses | (1,004) | (363) | (451) | (190) | - | - | 0 |
| Adjusting items | 152 | 7 | 101 | 44 | - | - | - |
| Impairment | 175 | 7 | 101 | 66 | - | - | - |
| Reversal of impairment | (22) | - | - | (22) | - | - | - |
| Adjusted exploration expenses | (852) | (356) | (350) | (146) | - | - | 0 |
| Net operating income/(loss) 1) | 33,663 | 30,471 | 329 | 1,150 | 1,163 | 1,245 | (695) |
| Sum of adjusting items | (177) | (1,372) | 1,698 | 147 | 262 | (1,381) | 469 |
| Adjusted earnings/(loss) 1) | 33,486 | 29,099 | 2,028 | 1,297 | 1,424 | (136) | (227) |
| Tax on adjusted earnings | (23,445) | (21,825) | (670) | (16) | (998) | 23 | 40 |
| Adjusted earnings/(loss) after tax 1) | 10,042 | 7,274 | 1,358 | 1,281 | 426 | (112) | (187) |

1) E&P Norway, E&P International, MMP and Other segments are restated due to implementation of IFRS 16 in the segments

2) The adjustment for MMP is related to an insurance settlement.

#### f) Total shareholder return (TSR)

Total shareholder return (TSR) is the sum of a share's price growth and dividends for the same period, divided by the share price at beginning of period.

#### g) Gross capital expenditure (gross capex)

Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments, amounted to USD 10.0 billion in 2022 and USD 8.5 billion in 2021 (as referenced in note 5 Segments to the Consolidated financial statements).

Gross capital expenditures are capital expenditures that are adjusted to exclude additions of Right of use assets related to leases (as referenced in note 12, Property, plant and equipment, to the consolidated financial statements) and to include Equinor's proportionate share of capital expenditures in equity accounted investments not included in additions to equity accounted investments, within the REN segment for 2021 and 2022. The calculation of gross capital expenditures excludes additions to right of use assets related to leases, as management believes that this better reflects the Group's investments in the business to drive growth.

In 2022, a net total adjustment of USD 0.4 billion was excluded, resulting in gross capital expenditures of USD 9.6 billion. In 2021, a net total adjustment of USD 0.3 billion was included, resulting in gross capital expenditures of USD 8.8 billion.

Forward-looking gross capital expenditures included in this 2022 Form 20-F are not reconcilable to the most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from such IFRS measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

# FORWARD-LOOKING STATEMENTS

This 2022 Form 20-F (including information incorporated herein from the 2022 Annual Report) contains certain forward-looking statements that involve risks and uncertainties, in particular in the sections incorporated by reference in Item 4 of this 2022 Form 20-F. In some cases, we use words such as 'aim', 'ambition', 'anticipate', 'believe', 'continue', 'could', 'estimate', 'expect', 'intend', 'likely', 'objective', 'outlook', 'may', 'plan', 'schedule', 'seek', 'should', 'strategy', 'target', 'will', 'goal' and similar expressions to identify forward-looking statements. All statements other than statements of historical fact, including: the commitment to develop as a broad energy company and ambition to be a leading company in the energy transition; ambition to reach net zero by 2050 and expectations regarding progress on our energy transition plan and just transition plan; our ambitions regarding reduction in operated emissions and net carbon intensity and allocation of gross capex* to renewables and low carbon solutions; our ambitions to decarbonise and maintain value in oil and gas, industrialise and upscale offshore wind, industrialise and commercialise carbon capture and storage and upscale and develop new value chains in hydrogen; ambition to attain a leadership position in the European CCS market; aims, expectations and plans for renewables production capacity and power generation, investments in renewables and low-carbon solutions and the balance between oil and renewables production; our expectations with respect to net carbon intensity, operated emissions, carbon and methane intensity and flaring reductions; our internal carbon price and other financial metrics for investment decisions; break-even considerations and targets; aims and expectations regarding Equinor's resilience across different climate scenarios; future levels of, and expected value creation from, oil and gas production, scale and composition of the oil and gas portfolio, and development of CCS and hydrogen businesses; use of compensation and offset mechanisms and high-quality carbon sinks; plans to develop fields; our intention to optimise and mature our portfolio; future worldwide economic trends, market outlook and future economic projections and assumptions, including commodity price assumptions; expectations and plans regarding capital expenditures; future financial performance, including cash flow, liquidity and return on average capital employed (ROACE)*; expectations regarding cash flow and returns from our oil and gas portfolio and renewable projects; organic capital expenditures through 2026; expectations and estimates regarding production and execution of projects; the ambition to keep unit of production cost in the top quartile of our peer group; scheduled maintenance activity and the effects thereof on equity production; business strategy and competitive position; sales, trading and market strategies; research and development initiatives and strategy, including ambitions regarding allocation of research and development capital towards renewables and low carbon solutions; expectations related to production levels, unit production cost, investment, exploration activities, discoveries and development in connection with our ongoing transactions and projects; our ambitions, expectations and plans regarding diversity and inclusion and employee training; plans and expectations regarding completion and results of acquisitions, disposals and other contractual arrangements and delivery commitments; plans, ambitions and expectations regarding recovery factors and levels, future margins and future levels or development of capacity, reserves or resources; planned turnarounds and other maintenance activity; expectations regarding oil and gas volume growth, including for volumes lifted and sold to equal entitlement production; estimates related to production and development, forecasts, reporting levels and dates; operational expectations, estimates, schedules and costs; expectations relating to licences and leases; oil, gas, alternative fuel and energy prices, volatility, supply and demand; plans and expectations regarding processes related to human rights laws, corporate structure and organizational policies; technological innovation, implementation, position and expectations; expectations regarding role and composition of the board and our remuneration policies; our goal of safe and efficient operations; effectiveness of our internal policies and plans; our ability to manage our risk exposure, our liquidity levels and management of liquidity reserves; estimated or future liabilities, obligations or expenses; expected impact of currency and interest rate fluctuations and LIBOR discontinuation; projected outcome, impact or timing of HSE regulations; HSE goals and objectives of management for future operations; our ambitions and plans regarding biodiversity (including our aim to develop a net-positive impact approach for projects) and value creation for society; expectations related to regulatory trends; impact of PSA effects; projected impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation laws); projected impact of legal claims against us; plans for capital distribution, share buy-backs and amounts and timing of dividends are forward-looking statements.

You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described in the risk factors incorporated in Item 3.D of this 2022 Form 20-F.

These forward-looking statements reflect current views about future events, are based on management's current expectations and assumptions and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing, in particular in light of significant oil price volatility and the uncertainty caused by the European security situation, including Russia's invasion of Ukraine; unfavorable macroeconomic conditions and inflationary pressures; exchange rate and interest rate fluctuations; levels and calculations of reserves and material differences from reserves estimates; regulatory stability and access to resources, including attractive low carbon opportunities; the effects of climate change and changes in stakeholder sentiment and regulatory requirements regarding climate change; changes in market demand and supply for renewables; inability to meet strategic objectives; the development and use of new technology; social and/or political instability, including as a result of Russia's invasion of Ukraine; failure to manage digital and cyber threats; operational problems; unsuccessful drilling; availability of adequate infrastructure; the actions of field partners and other third-parties; reputational damage; the actions of competitors; the actions of the Norwegian state as majority shareholder and exercise of ownership by the Norwegian state; changes or uncertainty in or non-compliance with laws and governmental regulations; adverse changes in tax regimes; the political and economic policies of Norway and other oil-producing countries; regulations on hydraulic fracturing and low-carbon value chains; liquidity, interest rate, equity and credit risks; risks relating to trading and commercial supply activities; an inability to attract and retain personnel; ineffectiveness of crisis management systems; inadequate insurance coverage; health, safety and environmental risks; physical security risks;

failure to meet our ethical and social standards; non-compliance with international trade sanctions; and other factors discussed elsewhere in this 2022 Form 20-F.

The achievement of Equinor's climate ambitions depends, in part, on broader societal shifts in consumer demands and technological advancements, each of which are beyond Equinor's control. Should society's demands and technological innovation not shift in parallel with Equinor's pursuit of its energy transition plan, Equinor's ability to meet its climate ambitions will be impaired. The calculation of Equinor's net carbon intensity presented in this report includes an estimate of emissions from the use of solid products (GHG protocol category 11) as a means to more accurately evaluate the emission lifecycle of what we produce to respond to the energy transition and potential business opportunities arising from shifting consumer demands. Including these emissions in the calculations should in no way be construed as an acceptance by Equinor of responsibility for the emissions caused by such use.

The reference to any scenario in this report, including any potential net-zero scenarios, does not imply Equinor views any particular scenario as likely to occur. Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their respective authors, not Equinor, and their use by Equinor is not an endorsement by Equinor of their underlying assumptions, likelihood or probability. Investment decisions are made on the basis of Equinor's separate planning process. Any use of the modeling of a third-party organization within this report does not constitute or imply an endorsement by Equinor of any or all of the positions or activities of such organization.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this 2022 Form 20-F, either to make them conform to actual results or changes in our expectations.

# Part I

## ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

#### A. Directors and Senior Management

Not applicable.

#### B. Advisers

Not applicable.

#### C. Auditors

Not applicable.

## ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

#### A. Offer statistics

Not applicable.

#### B. Method and Expected Timetable

Not applicable.

## ITEM 3. KEY INFORMATION

#### A. [Reserved]

#### B. Capitalization and Indebtedness

Not applicable.

#### C. Reason for the Offer and Use of Proceeds

Not applicable.

#### D. Risk Factors

The information set forth under the heading 'Risk Factors' in section 5.2 of chapter 5 on pages 277 - 282 of the 2022 Annual Report is incorporated herein by reference.

## ITEM 4. INFORMATION ON THE COMPANY

#### A. History and Development of the Company

Equinor ASA was incorporated on 18 September 1972, is a public limited liability company organised under the laws of Norway and is subject to the provisions of the Norwegian Public Limited Liability Companies Act. Equinor's head office is located at Forusbeen 50, 4035 Stavanger, Norway. The telephone number of its principal place of business is +47-5199-00 00.

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Equinor in 2022 on page 11;
- Equinor's Energy transition plan on pages 12 - 15;
- Our history in Section 1.2 of Chapter 1 on pages 18 - 19;
- Investments in Section 2.2.2 of Chapter 2 on pages 87 - 88;
- Key events in Section 3.1.1 of Chapter 3 on pages 116 - 117;
- Projects under development, Decommissioning on the NCS and Climate measures in Section 3.1.1 of Chapter 3 on pages 122 - 124;
- Key events in Section 3.1.2 of Chapter 3 on pages 125 - 126;
- Fields under development internationally in Section 3.1.2 of Chapter 3 on page 130;
- Key events in Section 3.1.3 of Chapter 3 on page 132;
- Fields under development in the US in Section 3.1.3 of Chapter 3 on page 135;
- Overview in Section 3.2 of Chapter 3 on pages 136 - 138;
- Key events in Section 3.3 of Chapter 3 on pages 142 - 143; and
- Key projects in Section 3.3 of Chapter 3 on page 146.

The information set forth in the third and fourth paragraphs of the section entitled "Introduction" of this 2022 Form 20-F is also incorporated herein by reference. See also notes 5 Segments and 6 Acquisitions and disposals to the Consolidated financial statements.

# B. Business Overview

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Key figures 2022 on pages 4 - 6;
- Key figures - segment performance on page 6;
- This is Equinor in Section 1.1 of Chapter 1 on page 17;
- Our Business in Section 1.3 of Chapter 1 on pages 20 - 22;
- Equinor's market perspective in Section 1.4 of Chapter 1 on pages 23 - 24;
- Equinor's Strategy in Section 1.5 of Chapter 1 on pages 25 - 29;
- Sustainability at Equinor in Section 1.7 of Chapter 1 on page 32;
- Performance 2022 on pages 45 - 46 of Chapter 2;
- Safe and secure operations in Section 2.1.1 of Chapter 2 on pages 49 - 54;
- Management approach in Section 2.1.2 of Chapter 2 on pages 55 - 56;
- Performance evaluation in Section 2.1.2 of Chapter 2 on pages 58 - 59;
- Management approach in Section 2.1.3 of Chapter 2 on pages 60 - 61;
- Performance evaluation in Section 2.1.3 of Chapter 2 on page 63;
- Management approach in Section 2.1.4 of Chapter 2 on pages 64 - 65;
- Performance evaluation in Section 2.1.4 of Chapter 2 on pages 68 - 69;
- Management approach in Section 2.2.3 of Chapter 2 on page 91;
- Procurement and ripple effects in Section 2.2.3 of Chapter 2 on page 92;
- Performance evaluation in Section 2.2.3 of Chapter 2 on page 93;
- Management approach in Section 2.2.4 of Chapter 2 on pages 94 - 95;
- Performance evaluation in Section 2.2.4 of Chapter 2 on page 97;
- Exploration & Production Norway in Section 3.1.1 of Chapter 3 on pages 116 - 124;
- Exploration & Production International in Section 3.1.2 of Chapter 3 on pages 125 - 131;
- Exploration & Production USA in Section 3.1.3 of Chapter 3 on pages 132 - 135;
- High-value growth in renewables in Section 3.2 of Chapter 3 on pages 136 - 139;
- Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions in Section 3.3 of Chapter 3 on pages 140 - 148; and
- Other group in Section 3.4 of Chapter 3 on page 149.

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

The information about Equinor's competitive position in the sections of the 2022 Annual Report that are incorporated by reference herein is based on several sources such as investment analyst reports, independent market studies, and internal assessments of market share based on publicly available information about the financial results and performance of market players.

# Applicable laws and regulations

Equinor operates in around 30 countries and is exposed and committed to compliance with numerous laws and regulations globally. The graphic entitled 'Where we are' in Section 1.3 of Chapter 1 and the risks set forth under the heading 'Policies and legislation' in Section 5.2 of Chapter 5 of the 2022 Annual Report are also incorporated herein by reference.

This section gives a general description on the legal and regulatory framework in the various jurisdictions where Equinor operates and in particular in the countries of Equinor's core activities.

### **Regulatory framework for upstream oil and gas operations**

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

- Production sharing agreements (PSAs)

Equinor is also subject to a wide variety of health, safety and environmental (HSE) laws and regulations concerning its products, operations and activities. Relevant laws and regulations include jurisdiction specific laws and regulations, international regulations, conventions or treaties, as well as EU directives and regulations.

#### **Concession regimes**

Under a concession regime, companies are granted licences by the government to extract petroleum. This is similar to the Norwegian system described below. Typically, the licences are offered to pre-qualified companies following bidding rounds. The criteria for the evaluation of bidding offers under these regimes can be the level of offered signature bonus (bid amount), minimum exploration programme, and local content. In exchange for those commitments, the successful bidder(s) receive a right to explore, develop and produce petroleum within a specified geographical area for a limited period of time. The terms of the licences are usually not negotiable. The fiscal regime may entitle the relevant jurisdiction to royalties, profit tax or special petroleum tax.

#### **PSA regimes**

PSAs are normally awarded to the contractor parties after bidding rounds announced by the government. Main bid parameters are a minimum exploration programme and signature bonuses, allocation of profit oil and, in some cases, tax.

Under a PSA, the host government typically retains the right to the hydrocarbons in place. The contractor receives a share of the production for services performed. Normally, the contractor carries the exploration and development costs and risk prior to a commercial discovery and is then entitled to recover those costs during the production phase. The remaining share of the production - the profit share, is split between the government and the contractor according to a mechanism set out in the PSA. The contractor is usually subject to income tax on its own share of the profit oil. Fiscal provisions in a PSA are to a large extent negotiable and are unique to each PSA.

#### **Norway**

Norway is not a member of the European Union (EU) but is a member of the European Free Trade Association (EFTA). The EU and the EFTA Member States have entered into the Agreement on the European Economic Area, referred to as the EEA Agreement, which provides for the inclusion of EU legislation in the national law of the EFTA Member States (except Switzerland). Equinor's business activities are subject to both the EFTA Convention and EU laws and regulations adopted pursuant to the EEA Agreement.

The principal laws governing Equinor's petroleum activities in Norway and on the NCS are the Norwegian Petroleum Act of 29 November 1996 (the Petroleum Act) and the regulations issued thereunder, and the Norwegian Petroleum Taxation Act of 13 June 1975 (the Petroleum Taxation Act).

Under the Petroleum Act, the Norwegian Ministry of Petroleum and Energy ('MPE') is responsible for resource management and for administering petroleum activities on the NCS. The main task of the MPE is to ensure that petroleum activities are conducted in accordance with the applicable legislation, the policies adopted by the Norwegian Parliament (the Storting) and relevant decisions of the Norwegian State.

The Storting's role in relation to major policy issues in the petroleum sector can affect Equinor in two ways: first, when the Norwegian State acts in its capacity as majority owner of Equinor shares and, second, when the Norwegian State acts in its capacity as regulator:

- The Norwegian State's shareholding in Equinor is managed by the Ministry of Trade, Industry and Fisheries. The Ministry will normally decide how the Norwegian State will vote on proposals submitted to general meetings of the shareholders. However, in certain exceptional cases, it may be necessary for the Norwegian State to seek approval from the Storting before voting on a certain proposal. This will normally be the case if Equinor issues additional shares and such issuance would significantly dilute the Norwegian State's holding, or if such issuance would require a capital contribution from the Norwegian State in excess of government mandates. A vote by the Norwegian State against an Equinor proposal to issue additional shares would prevent Equinor from raising additional capital in this manner and could adversely affect Equinor's ability to pursue business opportunities. The information regarding the Norwegian State's ownership in the information set forth under the heading 'Major

Shareholders' in Section 5.3 of Chapter 5 and the risks set forth in 'Ownership and action by the Norwegian State' in Section 5.2 of Chapter 5 of the 2022 Annual Report are also incorporated herein by reference.

- The Norwegian State exercises important regulatory powers over Equinor, as well as over other companies and corporations on the NCS. As part of its business, Equinor or the partnerships to which Equinor is a party, frequently need to apply for licences and other approvals from the Norwegian State. Although Equinor is majority-owned by the Norwegian State, it does not receive preferential treatment with respect to licences granted by or under any other regulatory rules enforced by the Norwegian State.

The Petroleum Act sets out the principle that the Norwegian State is the owner of all subsea petroleum on the NCS, that the exclusive right to resource management is vested in the Norwegian State and that the Norwegian State alone is authorised to award licences for petroleum activities as well as determine their terms. Licensees are required to submit a plan for development and operation (PDO) to the MPE for approval. For fields of a certain size, the Storting has to accept the PDO before it is formally approved by the MPE. Equinor is dependent on the Norwegian State for approval of its NCS exploration and development projects and its applications for production rates for individual fields.

Production licences are the most important type of licence awarded under the Petroleum Act. A production licence grants the holder an exclusive right to explore for and produce petroleum within a specified geographical area. The licensees become the owners of the petroleum produced from the field covered by the licence. Production licences are normally awarded for an initial exploration period, which is typically six years, but which can be shorter. The maximum period is ten years. During this exploration period, the licensees must meet a specified work obligation set out in the licence. If the licensees fulfil the obligations set out in the initial licence period, they are entitled to require that the licence be extended for a period specified at the time when the licence is awarded, typically 30 years.

The terms of the production licences are decided by the MPE. Production licences are awarded to groups of companies forming a joint venture at the MPE's discretion. The members of the joint venture are jointly and severally liable to the Norwegian State for obligations arising from petroleum operations carried out under the licence. The MPE decides the form of the joint operating agreements and accounting agreements. The MPE uses the same standard form of joint operating agreement and accounting agreement for all licenses.

The governing body of the joint venture is the management committee. In licences awarded since 1996 where the State's direct financial interest (SDFI) holds an interest, the Norwegian State, acting through Petoro AS, may veto decisions made by the joint venture management committee, which, in the opinion of the Norwegian State, would not be in compliance with the obligations set forth in the licence with respect to the Norwegian State's exploitation policies or financial interests. This power of veto has never been used.

Interests in production licences may be transferred directly or indirectly subject to the consent of the MPE and the approval of the tax treatment by the Ministry of Finance. In most licences, there are no pre-emption rights in favour of the other licensees. However, the SDFI, or the Norwegian State, as appropriate, still hold pre-emption rights in all licences.

The day-to-day management of a field is the responsibility of an operator appointed by the MPE. The operator is in practice always a member of the joint venture holding the production licence, although this is not legally required. The terms of engagement of the operator are set out in the joint operating agreement.

If important public interests are at stake, the Norwegian State may instruct the operators on the NCS to reduce the production of petroleum. An example of this occurred in May 2020, when the Norwegian State imposed a reduction in oil production for the rest of the year, due to the Covid-19 pandemic that led to a lower demand for oil and gas. The reduction in production was distributed between all fields on a pro rata basis.

A licence from the MPE is also required in order to establish facilities for the transportation and utilisation of petroleum. Ownership of most facilities for the transportation and utilisation of petroleum in Norway and on the NCS is organised in the form of joint ventures. The participants' agreements are similar to joint operating agreements for production.

Licensees are required to prepare a decommissioning plan before a production licence or a licence to establish and use facilities for the transportation and utilisation of petroleum expires or is relinquished, or the use of a facility ceases. On the basis of the decommissioning plan, the MPE makes a decision as to the disposal of the facilities.

The information regarding Equinor's activities and shares in Equinor's production licences on the NCS, set forth under the heading 'Exploration & Production Norway' in Section 3.1.1 of Chapter 3 of the 2022 Annual Report is incorporated herein by reference.

On 1 July 2022, the MPE decided that parts of the Norwegian Security Act would apply to Equinor. This enables Equinor to receive and handle classified information from the authorities. In 2023, the MTIF and the MPE notified that the Security Act will apply in its entirety to Equinor as an undertaking controlling infrastructure and engaging in activities which are of vital importance to

fundamental national functions. The Security Act entered into force 1 January 2019 and is designed to protect national security interests. The National Security Authority supervises undertakings which are covered by the act.

### Gas sales and transportation from the NCS

Equinor markets gas from the NCS on its own behalf and on the Norwegian State's behalf. Dry gas is mainly transported through the Norwegian gas transport system (Gassled) to customers in the UK and mainland Europe, while liquified natural gas is transported by vessels to worldwide destinations.

The Norwegian gas transport system, consisting of the pipelines and terminals through which licensees on the NCS transport their gas, is owned by a joint venture called Gassled. The Norwegian Petroleum Act of 29 November 1996 and the pertaining Petroleum Regulation establish the basis for non-discriminatory third-party access to the Gassled transport system.

The tariffs for the use of capacity in the transport system are determined by applying a formula set out in separate tariff regulations stipulated by the MPE. The tariffs are paid for booked capacity rather than the volumes actually transported.

The information set forth under the heading *Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions* in Section 3.3 of Chapter 3 of the 2022 Annual Report is also incorporated herein by reference.

### The Norwegian State's participation

In 1985, the Norwegian State established the State's direct financial interest (SDFI) through which the Norwegian State has direct participating interests in licences and petroleum facilities on the NCS. As a result, the Norwegian State holds interests in a number of licences and petroleum facilities in which Equinor also holds interests. Petoro AS, a company wholly owned by the Norwegian State, was formed in 2001 to manage the SDFI assets.

The Norwegian State has a coordinated ownership strategy aimed at maximising the aggregate value of its ownership interests in Equinor and the Norwegian State's oil and gas. This is reflected in the Owner's Instruction described below, which contains a general requirement that, Equinor, in its activities on the NCS, take account of these ownership interests in decisions that may affect the execution of this marketing arrangement.

### SDFI oil and gas marketing and sale

Equinor markets and sells the Norwegian State's oil and gas together with Equinor's own production. The arrangement has been implemented by the Norwegian State through a separate instruction (the Owner's Instruction) adopted by an extraordinary shareholder meeting in 2001, with the Norwegian State as sole shareholder at the time. The Owner's Instruction sets out the specific terms for the marketing and sale of the Norwegian State's oil and gas.

Equinor is obliged under the Owner's Instruction to jointly market and sell the Norwegian State's oil and gas as well as Equinor's own oil and gas. The overall objective of the marketing arrangement is to obtain the highest possible total value for Equinor's oil and gas and the Norwegian State's oil and gas, and to ensure an equitable distribution of the total value creation between the Norwegian State and Equinor.

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

### US

Petroleum activities in the US are extensively regulated by multiple agencies in the US federal government, and by tribal, state and local regulation. The US government directly regulates development of hydrocarbons on federal lands, in the US Gulf of Mexico, and in other offshore areas. Different federal agencies directly regulate portions of the industry, and other general regulations related to environmental, safety, and physical controls apply to all aspects of the industry. In addition to regulation by the US federal government, any activities on US tribal lands (indigenous persons' semi-sovereign territory) are regulated by governments and agencies in those areas. Significantly for Equinor's US onshore interests, each individual state has its own regulations of all aspects of hydrocarbon development within its borders. A recent trend also includes local municipalities adopting their own hydrocarbon regulations.

In the US, hydrocarbon interests are considered a private property right. In areas owned by the US government, that means that the government owns the minerals in its capacity as landowner. The federal government, and each tribal and state government, establishes the terms of its own leases, including the length of time of the lease, the royalty rate, and other terms.

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

In order to explore for or develop hydrocarbons, a company must enter into a lease agreement with the applicable governmental agency for federal, state or tribal land, and for private lands, with each owner of the minerals the company wishes to develop. In each lease, the lessor retains a royalty interest in the production (if any) from the leased area. The lessee owns a working interest and has the right to explore and produce oil and gas. The lessee incurs all the costs and liabilities but will share only the portion of the revenue that is net of costs and expenses and not reserved to the lessor through its royalty interest.

Leases typically have a primary term for a specified number of years (from one to ten years) and a conditional secondary term that is tied to the production life of the properties. If oil and gas is being produced in paying quantities at the end of the primary term, or the operator satisfies other obligations specified in the agreement, the lease typically continues beyond the primary term (Held by Production). Leases typically involve paying the lessor both a signing bonus based on the number of leased acres and a royalty payment based on the production.

Each US state has its own agencies that regulate the development, exploration, and production of oil and gas activities. These state agencies issue drilling permits and control pipeline transportation within state boundaries. The state agencies particularly relevant to Equinor's US onshore activities include: (a) Pennsylvania Department of Environmental Protection's Office of Oil and Gas Management, (b) Ohio Department of Natural Resources, Division of Oil and Gas, and (c) West Virginia Department of Environmental Protection. In addition, some state utility departments handle pipeline transportation within state boundaries, and each state also has its own department regulating environmental, health, and safety issues arising from oil and gas operations.

### **Brazil**

In Brazil, licences are mainly awarded according to a concession regime or a production sharing regime (the latter specifically for areas within the pre-salt polygon area or strategic areas) by the Federal Government. All state-owned and private oil companies may participate in the bidding rounds provided they follow the bidding rules and meet the qualification criteria. The tender protocol issued for each bidding round contains the draft of the concession agreement or the production sharing agreement that the winners must adhere to without the possibility of negotiating its terms, i.e., all the agreements signed under a certain bidding round contain the same general provisions and only differ in the particular items presented in the offers. There is no restriction on foreign participation, provided that the foreign investor incorporates a company under the Brazilian law for signing the agreement and complies with the requirements established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).

The current criteria for the evaluation of bidding offers under the concession regime are: (a) signature bonus; and (b) minimum exploration program. However, in past bidding rounds the participants also had to offer a local content percentage as a firm commitment. Companies can bid individually or in consortium always observing the qualification criteria for operator and non-operators.

The concession agreements are signed by ANP on behalf of the Federal Government. Generally, concessions are granted for a total period of 35 years and typically the exploration phase lasts from two to eight years, while the production phase may last 27 years from the declaration of commerciality. Concessionaires are entitled to request the extension of each of these phases, subject to ANP approval.

In bidding rounds involving the production sharing regime, the law grants to the Brazilian government-controlled company Petroleo Brasileiro S.A. - Petrobras, a right of preference to be the sole operator in the pre-salt fields, with a minimum 30% of participating interest. If this right is exercised, Petrobras may still participate in the bidding round and present offers for the remaining 70% under the same conditions applicable to other participants. Likewise, in the concession bidding rounds, companies may bid individually or together with other companies. The winners are required to form a consortium with Pre-Sal Petroleo S.A. (PPSA), a Brazilian state-owned company, which is responsible for managing the production sharing agreement and selling the production allocated to the Government under the profit oil. PPSA appoints 50% of the members of the operating committee, including the chairperson, in addition to certain veto rights and casting vote.

The current criteria for the evaluation of bidding offers under the production sharing regime is the offered percentage of profit oil. The winner will be the company which offers the highest percentage to the government in accordance with the technical and economic parameters established for each block in the tender documents under a certain bidding round.

Production sharing contracts are signed by the Ministry of Mines and Energy on behalf of the Federal Government. Generally, the contracts are valid for a period of 35 years which, by law, cannot be extended. Of the two phases of the contract - exploration and production - the exploration phase may be extended provided that the total period of the contract remains as 35 years.

In order to perform the exploration and exploitation of oil and gas reserves, companies must obtain an environmental license granted by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), which, together with ANP, is responsible for the safety and environmental regulations regarding upstream activities.

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

Equinor's oil and gas operations in Norway must be conducted in compliance with a reasonable standard of care, taking into consideration the safety of workers, the environment and the economic values of installations and vessels. The Petroleum Act specifically requires that petroleum operations are carried out in such a manner that a high level of safety is maintained and developed in step with technological developments. Equinor is also required at all times to have a plan to deal with emergency situations in Equinor's petroleum operations. During an emergency, the Norwegian Ministry of Labour and Social Inclusion/Norwegian Ministry of Transport/Norwegian Coastal Administration may decide that other parties should provide the necessary resources, or otherwise adopt measures to obtain the necessary resources, to deal with the emergency for the licensees' account.

### ***Liability for pollution damage***

The Norwegian Petroleum Act imposes strict liability for pollution damage regardless of fault. Accordingly, as a holder of licences on the NCS, Equinor is subject to statutory strict liability under the Petroleum Act as a result of pollution caused by spills or discharges of petroleum from petroleum facilities in any of Equinor's licences.

A claim against the license holders for compensation relating to pollution damage shall initially be directed to the operator, which in accordance with the terms of the joint operating agreement, will distribute the claim to the other licensees in accordance with their participating interest in the licences.

### ***Discharge permits***

Emissions and discharges from Norwegian petroleum activities are regulated through several acts, including the Petroleum Act, the CO$_{2}$ Tax Act, the Sales Tax Act, the Greenhouse Gas Emission Trading Act and the Pollution Control Act. Discharge of oil and chemicals in relation to exploration, development and production of oil and natural gas are regulated under the Pollution Control Act. In accordance with the provisions of this Act, an operator must apply for a discharge permit from relevant authorities on behalf of the licence group in order to discharge any pollutants into water. Further, the Petroleum Act states that burning of gas in flares beyond what is necessary for safety reasons to ensure normal operations is not permitted without approval from the MPE. All operators on the NCS have an obligation to, and are responsible, for establishing sufficient procedures for the monitoring and reporting of any discharge into the sea. The Norwegian Environment Agency, the Norwegian Petroleum Directorate and the Norwegian Oil Industry Association have established a joint database for reporting emissions to air and discharges to sea from the petroleum activities, the Environmental Web (EW). All operators on the NCS report emission and discharge data directly into the database.

### ***Regulations on reduction of carbon emissions and CO$_{2}$ storage***

Equinor's operations in Norway are subject to emissions taxes as well as emissions allowances granted for Equinor's larger European operations under the emissions trading scheme. The agreed strengthening of the EU's emission trading scheme is expected to affect energy and industry installations, which include Equinor's installations at the NCS. The price of emissions allowances has increased significantly since the reforms to the EU Emission Trading Scheme in 2018, and is expected to increase further towards 2030.

The Norwegian Climate Act promotes the implementation of Norway's climate targets as part of the transition to a low-emission society in Norway in 2050. This act may influence our activities through plans and actions implemented by the state to achieve these targets and reference is made to the Climate Plan 2021- 2030 launched 8 January 2021 by the Norwegian Government for achievement of at least 50% and towards 55% reduction in GHG emissions in 2030 compared to 1990 levels. The Climate Plan states that the carbon cost for offshore oil & gas production in Norway will increase to 2000 NOK/t CO$_{2}$ towards 2030. The Norwegian Government has recently presented an update of the plan, which sets out how to achieve its transition target of reducing Norway's own emissions by 55%.

EU directive 2009/31/EU on storage of CO$_{2}$ is implemented in the Pollution Control Act and the Petroleum Act and in regulations adopted under the Petroleum Act. The CO$_{2}$ capture and storage at Equinor's Sleipner and Snøhvit fields as well as the Northern Lights and Smeaheia projects are governed by these regulations.

### ***HSE regulation of upstream oil and gas activities in the US***

Equinor's upstream activities in the US are heavily regulated at multiple levels, including federal, state, and local municipal regulation. Equinor is subject to those regulations as a part of its activities in the US onshore (including Equinor's assets in Ohio, Pennsylvania and West Virginia), and in the US Gulf of Mexico.

The National Environmental Policy Act of 1969 is an umbrella procedural statute that requires federal agencies to consider the environmental impacts of their actions. Several substantive US federal statutes specifically cover certain potential environmental effects of hydrocarbon extraction activities. Those include: the Clean Air Act, which regulates air quality and emissions; the Federal Water Pollution Control Act (commonly known as the Clean Water Act), which regulates water quality and discharges; the Safe Drinking Water Act, which establishes drinking water standards for tap water and underground injection rules; the Resource Conservation and Recovery Act of 1976, which regulates hazardous and solid waste management; the Comprehensive Environmental

Response, Compensation and Liability Act of 1980, which addresses remediation of legacy disposal sites and release reporting; and the Oil Pollution Act, which provides for oil spill prevention and response.

Other US federal statutes are resource-specific. The Endangered Species Act of 1973 protects listed endangered and threatened species and critical habitat. Other statutes protect certain species, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act and the Marine Mammal Protection Act of 1972. Other statutes govern natural resource planning and development on federal lands onshore and on the Outer Continental Shelf (OCS), including: the Mineral Leasing Act; the Outer Continental Shelf Lands Act; the Federal Land Policy and Management Act of 1976; the Mining Law of 1872; the National Forest Management Act of 1976; the National Park Service Organic Act; the Wild and Scenic Rivers Act; the National Wildlife Refuge System Administration Act of 1966; the Rivers and Harbors Appropriation Act; and the Coastal Zone Management Act of 1972.

The federal government regulates offshore exploration and production for the OCS, which extends from the edge of state waters (either 3 or 9 nautical miles from the coast, depending on the state) out to the edge of national jurisdiction, 200 nautical miles from shore. The Bureau of Ocean Energy Management (BOEM) manages federal OCS leasing programs, conducts resource assessments, and licences seismic surveys. The Bureau of Safety and Environmental Enforcement (BSEE) regulates all OCS oil and gas drilling and production. The Office of Natural Resources Revenue (ONRR) collects and disburses rents and royalties from offshore and onshore federal and Native American lands.

Additional federal statutes cover certain products or wastes, and focus on human health and safety: the Toxic Substances Control Act regulates new and existing chemicals and products that contain these chemicals; the Hazardous Materials Transportation Act regulates transportation of hazardous materials; the Occupational Safety and Health Act of 1970 regulates hazards in the workplace; the Emergency Planning and Community Right-to-Know Act of 1986 provides emergency planning and notification for hazardous and toxic chemicals.

The federal and state governments share authority to administer some federal environmental programs (e.g., the Clean Air Act and Clean Water Act). States also have their own, sometimes more stringent, environmental laws. Counties, cities and other local government entities may have their own requirements as well.

Equinor continually monitors regulatory and legislative changes at all levels and engages in the stakeholder process through trade associations and direct comments to suggested regulatory and legislative regimes, to ensure that its operations remain in compliance with all applicable laws and regulations. In particular, BSEE drilling and production regulations were extensively revised in response to the 2010 Deepwater Horizon blowout and oil spill. The revised regulatory regime includes requirements for enhanced well design, improved blowout preventer design, testing and maintenance, and an increased number of trained inspectors. The Biden Administration continues to review and revise these regulations, and Equinor is engaged with relevant governmental and industry stakeholders to ensure that Equinor's operations remain in compliance.

#### ***HSE regulation of upstream oil and gas activities in Brazil***

Equinor's oil and gas operations in Brazil must be conducted in compliance with a reasonable standard of care, taking into consideration the safety and health of workers and the environment. The Brazilian Petroleum Law (Law No. 9,478/97) describes the government's policy objectives for the rational use of the country's energy resources, including the protection of the environment. In addition to the Petroleum Law, Equinor is also subject to many other laws and regulations issued by different authorities, including ANP, IBAMA, Federal Environmental Council (CONAMA) and Brazilian Navy. All those authorities have the power to impose fines in case of non-compliance with the respective rules. The concession and production sharing contracts also impose obligations on operators and consortium members, who are jointly and severally liable. They must, at their own account and risk, assume and fully respond to all losses and damages caused directly or indirectly by the applicable consortium's operations and their performance irrespective of fault, to the ANP, the Federal Government and third parties.

The exploration, drilling and production of oil and gas depend on environmental licences which define the conditions for the implementation of the project and compliance measures to mitigate and control environment impact. Equinor is subject to fines and even licence suspension and/or cancellation in case of non-compliance with such conditions.

In Brazil, Equinor is also required to have an emergency response system as per ANP Ordinance 44/2009 to deal with emergency situations in its petroleum operations, as well as an oil spill response plan for each asset to minimise the environmental impact of any environmental unexpected situation that may generate spill of oil or chemical to sea.

#### ***Discharge permits***

Discharges from Brazilian petroleum activities are regulated through several acts, including the CONAMA Resolution 393/2007 for produced water, CONAMA Resolution No. 357/2005 and CONAMA Resolution No. 430/2011 for effluents (sewage, etc) and IBAMA technical instructions for drilling waste. According to Environmental Ministry Ordinance No. 422/2011, the discharge of chemicals in connection with exploration, development and production of oil and natural gas is assessed as part of the permitting process and the operator must apply for any discharge permit from relevant authorities on behalf of the licence group in order to discharge any pollutants into the water.

### ***Regulations on reduction of carbon emissions***

Although Equinor's operations in Brazil are not subject to emissions taxes (CO2 limit) yet, there are initiatives within the Brazilian congress for the establishment of a carbon market. At this point it is unclear if and when these initiatives will be turned into law.

The CONAMA Regulation No. 382/06 regulates air emissions limits for pollutant gases (e.g. NOx) from all fixed sources that have total power consumption higher than 100MW.

Gas flares must be authorised by the ANP under ANP Resolution No. 806/2020, which also sets out cases in which ANP authorisation is not necessary.

The Brazilian government signed the Paris Agreement in 2015. During COP26, Brazil updated its ambition to reduce its greenhouse gas emissions by 37% until 2025 and 50% until 2030, compared to 2005 levels. Because of the desire to boost the economy and an expected growing energy demand, the focus on emissions reduction is on improved control of Forests and Land Use and for that Brazil continue to adhere to the Forest for Deal agreement, committing to take actions to reduce illegal deforestation until 2030. The country also adheres to the Global Methane Pledge.

To meet the growing energy demand challenge, the Brazilian government has indicated acceptance for an increase in total emissions in the short term from the industrial and power generation sectors, although the efficiency in power generation and usage will certainly be an important part of the Brazilian government's future approach to the issue.

### ***Regulatory framework for renewable energy operations***

Equinor's renewables positions currently mainly consist of offshore wind farms in operation and development in the UK, the state of New York and Poland. In these jurisdictions the legislation is structured around a lease where permission to develop is granted following a series of approvals relating largely to environmental and social impact assessments. The government separately auctions a subsidized power purchase price either through renewable offtake certificates or contracts for difference. In both cases, Equinor and its partners take the risk for developing, constructing and operating the wind farms within a fixed timeframe.

# Taxation of Equinor

## Norway

Equinor's profits, both from offshore oil and natural gas activities and from onshore activities, are subject to Norwegian corporate income tax. In addition, a special petroleum tax is levied on profits from petroleum production and pipeline transportation on the NCS. In June 2022 the parliament enacted a cash-flow based tax system for the special petroleum tax with effect from 1 January 2022. After the reform, the standard corporate income tax rate is 22% and the special petroleum tax rate is 71.8%. The corporate tax is deductible in the basis for the special petroleum tax, resulting in a 78% marginal tax rate. For further information, see note 11 Income taxes to the Consolidated Financial Statements.

Investment costs in the ordinary tax base (22%) will continue to be depreciated over six years. In the special tax base, investments are written off immediately in line with the cash-flow based tax system. Projects covered by the temporary rules introduced in 2020 have had a tax uplift of 17.69% in 2022. In 2023 the tax uplift is reduced to 12.4%. The temporary rules apply to investments covered by field or infrastructure plans (PDOs and PIOs) submitted to the MPE after 12 May 2020 and before 1 January 2023 and approved before 1 January 2024. The temporary rules will continue to apply until (and including) the year of planned production or project start-up according to the approved plans.

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

## US

Equinor's operations in the US are subject generally to corporate income, severance and production, ad valorem and transaction taxes levied by the federal, state and local tax authorities, and to royalties payable to federal, state and local authorities and, in some cases, private landowners. The federal corporate income tax rate in the US is 21%, and there is an alternative 15% minimum tax on corporate book income for corporations with profits over USD 1 billion, effective for tax years beginning after 31 December 2022.

## Brazil

Corporate income tax and social contribution are levied on taxable net income at a combined rate of 34%. A simplified tax regime with a lower effective tax rate is available for legal entities with gross revenues below a threshold of 78 million Brazilian reais per year. In addition, there are several indirect taxes but exports are exempt. In January 2023 a new President takes office and new rounds of discussions around certain tax proposals are expected to occur, such as creation of withholding tax on dividends and an export tax for crude oil, among other proposals.

Imports of assets are subject to several customs duties, but a special regime is available for certain assets used in the oil and gas activities allowing suspension of the federal duties and reduction of state duties.

The concession regime usually includes a 10% royalty, and special participation tax that varies based on time, location and production between 10% and 40%. PSA regime usually includes a 15% royalty, an annual 80% cost recovery ceiling, and a biddable government profit share.

## Disclosures regarding oil and gas operations

Exhibit 15.5 to this 2022 Form 20-F is incorporated herein by reference. See also notes 5 Segments and 7 Total revenues and other income to the Consolidated financial statements.

The information set forth under the headings 'Operational data', 'Sales volumes' and 'Sales prices' in Section 2.2 of Chapter 2 on pages 75-77, 'Unit Production Cost (UPC)' in Section 2.2.1 of Chapter 2 on page 82, and 'Optimised oil and gas portfolio' in Section 3.1 of Chapter 3 on pages 111-115 of the 2022 Annual Report is also incorporated herein by reference.

## Supplementary oil and gas information pursuant to FASB Topic 932

The following information is reported pursuant to FASB Topic 932.

## Capitalised cost related to oil and gas producing activities

### Consolidated companies

| (in USD million) | At 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Unproved properties | 5,917 | 7,077 | 9,034 |
| Proved properties, wells, plants and other equipment | 181,189 | 193,918 | 194,655 |
| Total capitalised cost | 187,106 | 200,994 | 203,690 |
| Accumulated depreciation, impairment and amortisation | (133,584) | (139,890) | (136,524) |
| Net capitalised cost | 53,523 | 61,104 | 67,165 |

Net capitalised cost related to equity accounted investments as of 31 December 2022 was USD 463 million, USD 900 million in 2021 and USD 450 million in 2020. The reported figures are based on capitalised costs within the upstream segments in Equinor, in line with the description below for result of operations for oil and gas producing activities.

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

These expenditures include both amounts capitalised and expensed.

### Consolidated companies

| (in USD million) | Eurasia excluding |  |  |  | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
|  | Norway | Norway | Africa | USA |  |  |
| Full year 2022 |  |  |  |  |  |  |
| Exploration expenditures | 494 | 27 | 57 | 150 | 360 | 1,088 |
| Development costs | 4,483 | 320 | 379 | 712 | 965 | 6,859 |
| Acquired proved properties | 110 | 226 | 38 | 0 | 0 | 374 |
| Acquired unproved properties | 6 | 0 | 0 | 0 | 0 | 6 |
| Total | 5,093 | 573 | 474 | 862 | 1,325 | 8,327 |
| Full year 2021 |  |  |  |  |  |  |
| Exploration expenditures | 522 | 61 | 5 | 139 | 299 | 1,026 |
| Development costs | 4,732 | 322 | 256 | 605 | 977 | 6,892 |
| Acquired proved properties | 3 | 5 | 0 | 0 | 0 | 8 |
| Acquired unproved properties | 6 | 9 | 1 | 24 | (3) | 37 |
| Total | 5,263 | 397 | 262 | 768 | 1,273 | 7,963 |
| Full year 2020 |  |  |  |  |  |  |
| Exploration expenditures | 470 | 197 | 81 | 215 | 409 | 1,372 |
| Development costs | 4,466 | 436 | 279 | 983 | 565 | 6,729 |
| Acquired proved properties | 0 | 0 | 36 | 7 | 0 | 43 |
| Acquired unproved properties | 0 | 41 | 2 | 1 | 24 | 68 |
| Total | 4,936 | 674 | 398 | 1,206 | 998 | 8,212 |

Expenditures incurred in exploration and development activities related to equity accounted investments was USD 155 million in 2022, USD 233 million in 2021 and USD 71 million in 2020.

#### Results of operation for oil and gas producing activities

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

The results of operations for oil and gas producing activities are included in the two upstream reporting segments Exploration & Production Norway (E&P Norway) and Exploration & Production International (E&P International) as presented in note 5 Segments to the Consolidated financial statements. Production cost is based on operating expenses related to production of oil and gas. From the operating expenses certain expenses such as; transportation costs, accruals for over/underlift position and royalty payments costs are excluded. These expenses and mainly upstream business administration are included as other expenses in the tables below. Other revenues mainly consist of gains and losses from sales of oil and gas interests and gains and losses from commodity-based derivatives within the upstream segments.

Income tax expense is calculated on the basis of statutory tax rates adjusted for uplift and tax credits. No deductions are made for interest or other elements not included in the table below.

#### Consolidated companies

| (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Full year 2022 |  |  |  |  |  |  |
| Sales | 155 | 554 | 615 | 166 | 88 | 1,578 |
| Transfers | 74,468 | 1,252 | 3,019 | 5,168 | 1,853 | 85,760 |
| Other revenues | 1,308 | (203) | (1) | 213 | 57 | 1,374 |
| Total revenues | 75,931 | 1,603 | 3,633 | 5,547 | 1,998 | 88,712 |
| Exploration expenses | (366) | (249) | (69) | (220) | (320) | (1,224) |
| Production costs | (2,916) | (202) | (470) | (399) | (518) | (4,505) |
| Depreciation, amortisation and net impairment losses | (4,167) | (623) | (530) | (361) | (579) | (6,260) |
| Other expenses | (866) | (201) | 3 | (533) | (413) | (2,010) |
| Total costs | (8,315) | (1,275) | (1,066) | (1,513) | (1,830) | (13,999) |
| Results of operations before tax | 67,616 | 328 | 2,567 | 4,034 | 168 | 74,713 |
| Tax expense | (52,070) | (152) | (1,043) | 2,458 | 361 | (50,447) |
| Results of operations | 15,546 | 176 | 1,524 | 6,492 | 529 | 24,266 |
| Net income/(loss) from equity accounted investments | 0 | 52 | 0 | 0 | 120 | 172 |

# **Consolidated companies**

| (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Full year 2021 |  |  |  |  |  |  |
| Sales | 97 | 476 | 638 | 207 | 16 | 1,434 |
| Transfers | 38,578 | 960 | 2,021 | 3,712 | 1,249 | 46,520 |
| Other revenues | 711 | (14) | 0 | 221 | 14 | 932 |
| Total revenues | 39,386 | 1,422 | 2,659 | 4,140 | 1,279 | 48,886 |
| Exploration expenses | (363) | (108) | 23 | (211) | (362) | (1,021) |
| Production costs | (2,600) | (196) | (497) | (397) | (378) | (4,068) |
| Depreciation, amortisation and net impairment losses | (4,900) | (2,462) | (444) | (1,734) | (416) | (9,956) |
| Other expenses | (1,052) | (140) | 53 | (674) | (292) | (2,105) |
| Total costs | (8,915) | (2,906) | (865) | (3,016) | (1,448) | (17,150) |
| Results of operations before tax | 30,471 | (1,484) | 1,794 | 1,124 | (169) | 31,736 |
| Tax expense | (22,887) | 835 | (652) | (14) | (201) | (22,919) |
| Results of operations | 7,585 | (649) | 1,142 | 1,110 | (370) | 8,817 |
| Net income/(loss) from equity accounted investments | 0 | 176 | 0 | 0 | 39 | 215 |

## Consolidated companies

| (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Full year 2020 |  |  |  |  |  |  |
| Sales | 76 | 189 | 240 | 218 | 5 | 728 |
| Transfers | 11,778 | 652 | 1,621 | 2,181 | 910 | 17,142 |
| Other revenues | 165 | 14 | 0 | 216 | 5 | 400 |
| Total revenues | 12,019 | 855 | 1,861 | 2,615 | 920 | 18,270 |
| Exploration expenses | (423) | (295) | (1,034) | (1,000) | (739) | (3,491) |
| Production costs | (2,048) | (192) | (440) | (563) | (376) | (3,619) |
| Depreciation, amortisation and net impairment losses | (5,727) | (2,081) | (737) | (3,827) | (713) | (13,085) |
| Other expenses | (688) | (150) | (56) | (753) | (220) | (1,867) |
| Total costs | (8,886) | (2,718) | (2,267) | (6,143) | (2,048) | (22,062) |
| Results of operations before tax | 3,133 | (1,863) | (406) | (3,528) | (1,128) | (3,792) |
| Tax expense | (1,429) | 718 | (168) | (30) | (252) | (1,159) |
| Results of operations | 1,704 | (1,145) | (574) | (3,558) | (1,380) | (4,951) |
| Net income/(loss) from equity accounted investments | 0 | (136) | 0 | 0 | (10) | (146) |
| Average production cost in USD per boe based on entitlement volumes (consolidated) |  |  |  |  |  |  |
|  | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| 2022 | 6 | 13 | 12 | 4 | 21 | 7 |
| 2021 | 5 | 11 | 12 | 3 | 19 | 6 |
| 2020 | 4 | 10 | 9 | 4 | 14 | 5 |

Production cost per boe is calculated as the production costs in the result of operations table, divided by the produced entitlement volumes (mboe) for the corresponding period.

### C. Organizational Structure

Exhibit 8 to this 2022 Form 20-F is incorporated herein by reference.

### D. Property, Plant and Equipment

Equinor has interests in real estate in many countries throughout the world, including as part of certain developments and projects of Equinor or in which Equinor participates.

Equinor's largest office buildings are (i) its head office located at Forusbeen 50, Stavanger, Norway which comprises approximately 135,000 square meters of office space, (ii) its office building in Sandslivegen 90, Bergen, Norway which comprises approximately 99,488 square meters of office space, and (iii) its office building located at Fornebu on the outskirts of Oslo which comprises approximately 65,500 square meters. All three office buildings are leased by Equinor. Under a new lease agreement entered into in 2022 for the office building at Fornebu, Equinor has reduced its area to 44,500 square meters with effect from around the start of year 2024. The office building in Bergen is owned by Sandsliveien 90 AS, a subsidiary of Equinor Pensjon.

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Investments in Section 2.2.2 of Chapter 2 on pages 87 - 88;
- Exploration & Production Norway in Section 3.1.1 of Chapter 3 on pages 116 - 124;
- Exploration & Production International in Section 3.1.2 of Chapter 3 on pages 125 - 131;
- Exploration & Production USA in Section 3.1.3 of Chapter 3 on pages 132 - 135;
- High-value growth in renewables in Section 3.2 of Chapter 3 on pages 136 - 139;
- Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions in Section 3.3 of Chapter 3 on pages 140 - 148; and
- Production per field in Section 5.5 of Chapter 5 on pages 297 - 301.

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

## ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

## ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The discussion does not address certain items in respect of 2020. A discussion of such items may be found in the Annual Report on Form 20-F for the year ended 31 December, 2021, filed with the SEC 18 March 2022.

### A. Operating Results

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Group Analysis in Section 2.2 of Chapter 2 on pages 70 - 74;
- Group outlook in Section 2.2 of Chapter 2 on page 74;
- Efficient and predictable operations in Section 2.2.1 of Chapter 2 on pages 80 - 82;
- Contextual Introduction, Management approach, Physical Climate Risk and Performance Disclosure in Section 2.2.2 of Chapter 2 on pages 83 - 87;
- Return on average capital employed (ROACE), Relative ROACE (peer group rank) and Relative TSR in Section 2.2.2 of Chapter 2 on pages 88 - 89;
- Net zero pathway in Section 2.3.1 of Chapter 2 on pages 100 - 103;
- Emissions reductions in Section 2.3.2 of Chapter 2 on pages 104 - 108;
- Reporting Segment Performance in Chapter 3 on pages 110 - 111;
- Performance review in Section 3.1.1 of Chapter 3 on pages 118 - 119;
- Performance review in Section 3.1.2 of Chapter 3 on pages 126 - 127;
- Performance review in Section 3.1.3 of Chapter 3 on pages 132 - 133;
- Performance review in Section 3.2 of Chapter 3 on pages 138 - 139;
- Performance review in Section 3.3 of Chapter 3 on pages 146 - 148; and
- Performance review in Section 3.4 of Chapter 3 on page 149.

See also the information set forth under the heading “Applicable Laws and Regulations” in “Item 4-Information on the Company-B. Business Overview” of this 2022 Form 20-F, and note 3 Consequences of initiatives to limit climate changes to the Consolidated financial statements.

### B. Liquidity and capital resources

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Capital and liquidity management in Section 1.6 of Chapter 1 on pages 30 - 31, excluding the information in the second and sixth paragraphs under the sub-heading “Debt and Credit Rating”; and
- Review of cash flows and Balance sheet and financial indicators in Section 2.2 of Chapter 2 on pages 72 - 73; and
- Investments in Section 2.2.2 of Chapter 2 on pages 87 - 88.

Any credit rating referred to in this 2022 Form 20-F is not a recommendation to buy, hold or sell any of our or our subsidiaries’ securities. Credit ratings may be changed, suspended or withdrawn at any time, and each rating should be evaluated independently of any other rating.

Equinor expects to complete the transition from London Inter-bank Offered Rates (LIBOR) to alternative reference rates within 2023. For interest rate derivatives contracts, Equinor in general follows the ISDA Fallback Protocol outlining the process for conversion of LIBOR to the Official ISDA Fallback Rates for derivatives, or other official adjusted reference rates (such as SONIA or SOFR). The transition from LIBOR to alternative reference rates for floating rate bonds follows in general the principles outlined by ICMA (International Capital Markets Association) and loan agreements and facilities in general follows the LMA (Loan Market Association). Equinor believes that the financial risks for Equinor related to the transition are small.

See also notes 18 Trade and other receivables, 19 Cash and cash equivalents, 21 Finance debt, 23 Provisions and other liabilities, 24 Trade, other payables and provisions, 25 Leases, and 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements.

### Principal contractual obligations

The following table summarises principal contractual obligations, excluding derivatives and other hedging instruments, as well as asset retirement obligations which for the most part are expected to lead to cash disbursements more than five years into the future. See note 23 for a maturity profile on asset retirement obligations and other provisions.

Non-current finance debt in the table represents principal payment obligations, including interest obligation. Obligations payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below with Equinor's full proportionate share. For assets that are included in the Equinor accounts through joint operations or similar arrangements, the amounts in the table include the net commitment payable by Equinor (i.e., Equinor's proportionate share of the commitment less Equinor's ownership share in the applicable entity).

### Principal contractual obligations

| (in USD million) | As at 31 December 2022 Payment due by period 1) |  |  |  | Total |
| --- | --- | --- | --- | --- | --- |
|  | Less than 1 year | 1-3 years | 3-5 years | More than 5 years |  |
| Undiscounted non-current finance debt- principal and interest 2) | 3,147 | 6,292 | 5,785 | 19,953 | 35,177 |
| Undiscounted leases 3) | 1,325 | 1,421 | 504 | 585 | 3,835 |
| Nominal minimum other long-term commitments 4) | 2,603 | 3,995 | 2,569 | 5,733 | 14,900 |
| Total contractual obligations | 7,075 | 11,708 | 8,858 | 26,271 | 53,912 |

1) 'Less than 1 year' represents 2023; '1-3 years' represents 2024 and 2025, '3-5 years' represents 2026 and 2027, while 'More than 5 years' includes amounts for later periods.

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

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

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

Equinor had contractual commitments of USD 5,454 million at 31 December 2022. The contractual commitments reflect Equinor's share and mainly comprise construction and acquisition of property, plant and equipment as well as committed investments/funding or resources in equity accounted entities.

Equinor's projected pension benefit obligation was USD 7,670 million, and the fair value of plan assets amounted to USD 5,218 million as of 31 December 2022. The company's payments regarding these benefit plans are mainly related to employees in Norway. See note 22 Pensions to the Consolidated financial statements for more information.

### Off balance sheet arrangements

Equinor is party to various agreements such as transportation and processing capacity contracts, that are not recognised in the balance sheet. Furthermore, Equinor is lessee in a range of lease contracts, whereas all leases shall be recognised in the balance sheet. Commitments regarding the non-lease components of lease contracts as well as leases that have not yet commenced are not

recognised in the balance sheet and represent off balance sheet commitments. Equinor is also party to certain guarantees, commitments and contingencies that, pursuant to IFRS, are not necessarily recognised in the balance sheet as liabilities. See note 26 Other commitments and contingencies to the Consolidated financial statements for more information.

#### **Summarised financial information related to guaranteed debt securities**

The following summarised financial information provides financial information of Equinor Energy AS as co-obligor and guarantor as required by SEC Rule 3-10 and 13-01 of Regulation S-X.

Equinor Energy AS is a 100% owned subsidiary of Equinor ASA. Equinor Energy AS is the co-obligor of certain existing debt securities of Equinor ASA and has guaranteed certain existing debt securities of Equinor ASA, including in each case debt securities that are registered under the US Securities Act of 1933 ('US registered debt securities').

As co-obligor, Equinor Energy AS fully, unconditionally and irrevocably assumes and agrees to perform, jointly and severally with Equinor ASA, the payment and covenant obligations for certain debt held by Equinor ASA. As a guarantor, Equinor Energy AS fully and unconditionally guarantees the payment obligations for certain debt held by Equinor ASA. Total debt at 31 December 2022 is USD 26,683 million, all of which is either guaranteed by Equinor Energy AS (USD 24,540 million), or for which Equinor Energy AS is co-obligor (USD 2,143 million). In the future, Equinor ASA may from time to time issue debt for which Equinor Energy AS will be the co-obligor or guarantor.

The applicable US registered debt securities and related guarantees of Equinor Energy AS are unsecured and rank equally with all other unsecured and unsubordinated indebtedness of Equinor ASA and Equinor Energy AS. The guarantees of Equinor Energy AS are subject to release in limited circumstances upon the occurrence of certain customary conditions. With respect to US registered debt securities (and certain other debt securities) issued on or after 18 November 2019, Equinor Energy AS will automatically and unconditionally be released from all obligations under its guarantee and the guarantee shall thereupon terminate and be discharged of no further force or effect, in the event that at substantially the same time as its guarantee of such debt securities is terminated, the aggregate amount of indebtedness for borrowed money for which Equinor Energy AS is an obligor (as a guarantor, co-issuer or borrower) does not exceed 10% of the aggregate principal amount of indebtedness for borrowed money of Equinor ASA and its subsidiaries, on a consolidated basis, as of such time.

Internal dividends, group contributions and repayment of capital from Equinor Energy AS to Equinor ASA are regulated in the Norwegian Public Limited Liabilities Act §§ 3-1 - 3-5.

The following summarised financial information for the year ended 31 December 2022 provides financial information about Equinor ASA, as issuer, and Equinor Energy AS, as co-obligor and guarantor on a combined basis after elimination of transactions between Equinor ASA and Equinor Energy AS. Investments in non-guarantor subsidiaries are eliminated. Currency gain on transactions between Equinor ASA and Equinor Energy AS of USD 4,607 million is included in financial items in accordance with the IFRS group accounting principles and are included in external items in the Condensed profit and loss statement.

Intercompany balances and transactions between the obligor group and the non-guarantor subsidiaries are presented on separate lines. Transactions with related parties are also presented on a separate line item and include transactions with the Norwegian State's and the Norwegian State's share of dividend declared but not paid.

The combined summarized financial information is prepared in accordance with Equinor's IFRS accounting policies as described in note 2 Significant accounting policies to the Consolidated financial statements.

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

| (unaudited, in USD million) | Full year 2022 |
| --- | --- |
| Revenues and other income | 137,153 |
| External | 122,110 |
| Non-guarantor subsidiaries | 14,649 |
| Related parties | 394 |
| Operating expenses | (58,328) |
| External (incl depreciation) | (31,245) |
| Non-guarantor subsidiaries | (12,971) |
| Related parties | (14,112) |
| Net operating income | 78,825 |
| Net financial items | 1,118 |
| External | (115) |
| Non-guarantor subsidiaries | 1,233 |
| Related parties | - |
| Income before tax | 79,943 |
| Income tax | (51,197) |
| Net income | 28,746 |

# **COMBINED BALANCE SHEET FOR EQUINOR ASA AND EQUINOR ENERGY AS**

| (unaudited, in USD million) | At 31 December 2022 |
| --- | --- |
| Non-current assets | 49,422 |
| External | 35,398 |
| Non-guarantor subsidiaries | 12,505 |
| Related parties | 1,519 |
| Current assets | 64,426 |
| External | 57,912 |
| Non-guarantor subsidiaries | 6,336 |
| Related parties | 178 |
| Non-current liabilities | 53,935 |
| External | 52,107 |
| Non-guarantor subsidiaries | 139 |
| Related parties | 1,689 |
| Current liabilities | 53,010 |
| External | 30,550 |
| Non-guarantor subsidiaries | 21,402 |
| Related parties | 1,058 |

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

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Technology development in Section 1.3 of Chapter 1 on page 21; and
- Research and development in Section 1.5 of Chapter 1 on page 29.

See also notes 9 Auditor's remuneration and Research and development expenditures and 12 Property, plant and equipment to the Consolidated financial statements.

D. Trend information

The information set forth under the heading "Equinor's market perspective" in Section 1.4 of Chapter 1 on pages 23 - 24 of the 2022 Annual Report is incorporated herein by reference. See also "Item 5. Operating and Financial Review-A. Operating Results" of this 2022 Form 20-F.

E. Critical Accounting Estimates

Not Applicable.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

Members of Equinor's board of directors as of 31 December 2022:

Jon Erik Reinhardsen

Born: 1956

Position: Shareholder-elected chair of the board and chair of the board's compensation and executive development committee.

Term of office: Chair of the board of Equinor ASA since 1 September 2017. Up for election in 2023.

Independent: Yes

Other directorships:

Listed companies: Member of the board of Oceaneering International, Inc. and Telenor ASA.

Non-listed companies: Member of the board of Awilhelmsen AS and Bico bygg og Innredning AS and chair of the board of Fire Security AS.

Number of shares in Equinor ASA as of 31 December 2022: 4,584

Loans from Equinor: None

Experience: Reinhardsen is a part-time senior advisor with BearingPoint Capital. Reinhardsen was the Chief Executive Officer of Petroleum Geo-Services (PGS) from 2008 - 2017. PGS delivers global geophysical- and reservoir services. In the period 2005 - 2008 Reinhardsen was President Growth, Primary Products in the international aluminium company Alcoa Inc. with headquarters in the US, and he was in this period based in New York. From 1983 - 2005, Reinhardsen held various positions in the Aker Kværner group, including Group Executive Vice President of Aker Kværner ASA, Deputy Chief Executive Officer and Executive Vice President of Aker Kværner Oil & Gas AS in Houston and Executive Vice President in Aker Maritime ASA.

Education: Master's degree in Applied Mathematics and Geophysics from the University of Bergen. He has also attended the International Executive Program at the Institute for Management Development (IMD) in Lausanne, Switzerland.

Family relations: No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

Other matters: In 2022, Reinhardsen participated in eight ordinary board meetings, four extraordinary board meetings, six meetings of the compensation and executive development committee and two meetings of the audit committee. Reinhardsen is a Norwegian citizen and resident in Norway.

Anne Drinkwater

Born: 1956

Position: Shareholder-elected deputy chair of the board, chair of the board's audit committee and member of the board's safety, sustainability and ethics committee.

Term of office: Member of the board of Equinor ASA since 1 July 2018, deputy chair of the board since 1 July 2022. Up for election in 2023.

Independent: Yes

Other directorships:

Listed company: Non-executive member of the board of Balfour Beatty plc.

Number of shares in Equinor ASA as of 31 December 2022: 1,100

Loans from Equinor: None

Experience: Drinkwater was employed with bp in the period 1978 - 2012, holding a number of different leadership positions in the company. In the period 2009 - 2012 she was chief executive officer of bp Canada. She has extensive international experience, including being responsible for operations in the US, Norway, Indonesia, the Middle East and Africa. Through her

career Drinkwater has acquired a deep understanding of the oil and gas sector, holding both operational roles, and more distinct business responsibilities.

**Education:** Bachelor of Science in Applied Mathematics and Statistics, Brunel University London.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Drinkwater participated in eight ordinary board meetings, four extraordinary board meetings, six meetings of the audit committee and five meetings of the safety, sustainability and ethics committee. Drinkwater is a British citizen and resident in the US.

#### **Rebekka Glasser Herlofsen**

**Born:** 1970

**Position:** Shareholder-elected member of the board, the board's audit committee and the board's compensation and executive development committee.

**Term of office:** Member of the board of Equinor ASA since 19 March 2015. Up for election in 2023.

**Independent:** Yes

**Other directorships:**

Listed companies: Member of the board of SATS ASA, Rockwool International A/S, BW Offshore ASA and Wilh. Wilhelmsen Holding ASA.

Non-listed companies: Chair of the Board of Norwegian Hull Club (NHC) and Handelsbanken Norge, and board member of Torvald Klaveness Group.

**Number of shares in Equinor ASA as of 31 December 2022:** 220

**Loans from Equinor ASA:** None

**Experience:** Herlofsen is an independent board member and consultant. She was previously the Chief Financial Officer in Wallenius Wilhelmsen ASA, an international shipping company. Before joining Wallenius Wilhelmsen, she was the Chief Financial Officer in the shipping company Torvald Klaveness since 2012. She has broad financial and strategic experience from several corporations and board directorships. Herlofsen's professional career began in the Nordic Investment Bank, Enskilda Securities, where she worked with corporate finance from 1995 to 1999 in Oslo and London. During the next ten years Herlofsen worked in the Norwegian shipping company Bergesen d.y. ASA (later BW Group). During her period with Bergesen d.y. ASA/BW Group she held leading positions within M&A, strategy and corporate planning and was part of the group management team.

**Education:** MSc in Economics and Business Administration ('Siviløkonom') and Certified Financial Analyst Program (AFA), the Norwegian School of Economics (NHH), Breakthrough Program for Top Executives at IMD business school, Switzerland.

**Family relations:** No family relations to other members of the Board, members of the Corporate Executive Committee or the Corporate Assembly.

**Other matters:** In 2022, Herlofsen participated in eight ordinary board meetings, four extraordinary board meetings, three meetings of the compensation and executive development committee and six meetings of the audit committee. Herlofsen is a Norwegian citizen and resident in Norway.

#### **Jonathan Lewis**

**Born:** 1961

**Position:** Shareholder-elected member of the board, chair of the board's safety, sustainability and ethics committee and member of the board's audit committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2018. Up for election in 2023.

**Independent:** Yes

**Other directorships:**

Listed company: Member of the board of Capita plc.

**Number of shares in Equinor ASA as of 31 December 2022:** None

**Loans from Equinor:** None

**Experience:** Lewis joined Capita as its chief executive officer (CEO) in December 2017; having previously spent 30 years working for large multi-national companies in technology-enabled industries. Lewis came to Capita plc from Amec Foster Wheeler plc, a global consulting, engineering and construction company, where he was CEO from 2016 - 2017. Prior to this, he held a number of senior leadership positions at Halliburton, where he was employed in the period 1996 - 2016. Lewis has previously held several directorships within technology and the oil and gas industry.

**Education:** Lewis has a PhD in Reservoir Characterisation from University of Reading and a Bachelor of Science degree in Geology from Kingston University.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Lewis participated in eight ordinary board meetings, four extraordinary board meetings, three meetings of the compensation and executive development committee, five meetings of the audit committee and five meetings of the safety, sustainability and ethics committee. Lewis is a British and US citizen, and resident in the UK.

#### **Finn Bjørn Ruyter**

**Born:** 1964

**Position:** Shareholder-elected member of the board and member of the board's audit committee and the board's compensation and executive development committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2019. Up for election in 2023.

**Independent:** Yes

**Other directorships:**

Non-listed companies: Chair of the board of Fornybar Norge AS and board member of Cegal Sysco AS, in addition to several companies fully or partly owned by Hafslund.

**Number of shares in Equinor ASA as of 31 December 2022:** 620

**Loans from Equinor:** None

**Experience:** Ruyter has since July 2012 been chief executive officer (CEO) of Hafslund AS. He was chief financial officer (CFO) in the company from 2010 - 2011. In 2009 - 2010 he worked in the Philippine hydro power company SN Aboitiz Power. In the period 1996 - 2009 he led the power trading entity and from 1999 also the energy division in Elkem. From 1991 - 1996 Ruyter worked with energy trading in Norsk Hydro.

**Education:** Master's degree in Mechanical Engineering from the Norwegian University of Technology (NTNU) and an MBA from BI Norwegian School of Management.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Ruyter participated in eight ordinary board meetings, four extraordinary board meetings, six meetings of the audit committee and six meetings of the compensation and executive development committee. Ruyter is a Norwegian citizen and resident in Norway.

**Tove Andersen**

**Born:** 1970

**Position:** Shareholder-elected member of the board and the board's safety, sustainability and ethics committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2020. Up for election in 2023.

**Independent:** Yes

**Other directorships:**

Listed company: Member of the board of Borregaard ASA.

**Number of shares in Equinor ASA as of 31 December 2022:** 4,700

**Loans from Equinor:** None

**Experience:** Andersen is President & CEO of Tomra Systems ASA as of 16 August 2021. Prior to this, she held the position as executive vice president for Europe in Yara International ASA. Andersen was part of the executive management team in Yara since 2016 where she also held positions as executive vice president, Production and executive vice president, Supply Chain. Previously she has had several management roles within Yara and Norsk Hydro/Yara and she started in Norsk Hydro in 1997. She has extensive international industrial experience, and she has broad board experience.

**Education:** Master of Science (Sivilingeniør) from Norwegian Institute of Technology (NTNU) and a Master of Business Administration from the BI Norwegian Business School.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Andersen participated in eight ordinary board meetings, three extraordinary board meetings, two meetings of the compensation and executive development committee and two meetings of the board's safety, sustainability and ethics committee. Andersen is a Norwegian citizen and resident in Norway.

**Michael D. Lewis**

**Born:** 1967

**Position:** Shareholder-elected member of the board and the board's compensation and executive development committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2022. M. Lewis resigned from his position as member of the board of directors in Equinor ASA with effect as of 16 March 2023.

**Independent:** Yes

**Other directorships:**

Non-listed companies: Member of the Natural Environment Research Council (NERC) and the board of Energy UK.

**Number of shares in Equinor ASA as of 31 December 2022:** None

**Loans from Equinor ASA:** None

**Experience:** Lewis joined as CEO to E.ON UK plc in 2017; having previously held the position as CEO of E.ON Climate & Renewables GmbH in the period 2015-2017 and Chief Operating Officer in the same company from 2007-2015. He held the role as Vice President Corporate Strategy in E.ON AG from 2004-2007. Lewis has also worked as Equity Analyst, Strategy Analyst and Environmental Specialist and Environmental Scientist in other companies. Lewis has extensive international experience and broad board experience.

**Education:** Lewis holds an MA in Environmental Law from De Montfort University, MSc Pollution and Environmental Control from the University of Manchester and BEng (Hons) Engineering Technology from Leicester Polytechnic. He is a Chartered Engineer (CEng) and a Fellow of the Institution of Mechanical Engineers (FIMechE).

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the

corporate assembly.

**Other matters:** In 2022, Lewis participated in four ordinary board meetings, one extraordinary board meetings and three meetings of the compensation. Lewis is a dual British/German citizen, and currently resident in the UK.

#### **Haakon Bruun-Hanssen**

**Born:** 1960

**Position:** Shareholder-elected member of the board, the board's compensation and executive development committee and the board's safety, sustainability and ethics committee.

**Term of office:** Member of the Board of Equinor ASA since 12 December 2022. Up for election in 2023.

**Independent:** Yes

**Other directorships:**

Non-listed companies: Member of the Advisory Board at Kongsberg Defence & Aerospace (KDA) and Dolphitech

**Number of shares in Equinor ASA as of 31 December 2022:** None

**Loans from Equinor ASA:** None

**Experience:** Bruun-Hanssen held the position as Chief of Norwegian Defence Forces from 2013-2020, previously having held the position as Chief Norwegian Joint Operational Headquarters from 2011-2013 and Chief Royal Norwegian Navy from 2009-2011, Chief of staff Royal Norwegian Navy from 2007-2009 and Chief Naval Operations centre from 2003-2007. Prior to this he has had an extensive career in the Norwegian Military.

**Education:** Bruun-Hanssen has a broad education through the Norwegian Military; Petty Officer training school, Norwegian naval Academy, Submarine Commanding officer course and Higher command course, Forsvarets Høyskole. He is also educated at Military Command and Staff college, Institut Defensie Leergangen in The Netherlands and has participated in work sessions relating to board roles and tasks at Insead In-Board Nordic Academy.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** Bruun-Hanssen is a Norwegian citizen, and resident in Norway.

#### **Stig Lægreid**

**Born:** 1963

**Position:** Employee-elected member of the board and member of the board's safety, sustainability and ethics committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2013. Up for election in 2023.

**Independent:** No

**Other directorships:** None

**Number of shares held in Equinor ASA as of 31 December 2022:** 5

**Loans from Equinor:** None

**Experience:** Lægreid is now a full-time employee representative as the leader of NITO, Equinor. He has been occupied as weight estimator for platform design from 2005 and prior to this as project engineer and constructor for production of primary metals. Employed in ÅSV and Norsk Hydro since 1985.

**Education:** Bachelor's degree, Mechanical Construction from Oslo college of engineering (OIH).

**Family relations:** No family relationships to other board members, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Lægreid participated in eight ordinary board meetings, four extraordinary board meetings and five meetings of the safety, sustainability and ethics committee. Lægreid is a Norwegian citizen and resident in Norway.

#### **Per Martin Labråten**

**Born:** 1961

**Position:** Employee-elected member of the board, and member of the board's compensation and executive development committee and the board's safety, sustainability and ethics committee.

**Term of office:** Member of the board of Equinor ASA since 8 June 2017. Up for election in 2023.

**Independent:** No

**Other directorships:** Labråten is a member of the executive committee of the Industry Energy (IE) trade union and holds a number of positions as a result of this.

**Number of shares in Equinor ASA as of 31 December 2022:** 587

**Loans from Equinor:** None

**Experience:** Labråten is now a full-time employee representative as the leader of IE Equinor branch. He has previously worked as a process technician at the petrochemical plant on Oseberg field in the North Sea.

**Education:** Labråten has a craft certificate as a process/chemistry worker.

**Family relations:** No family relations to other members of the board, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Labråten participated in eight ordinary board meetings, four extraordinary board meetings, four meetings of the compensation and executive development committee and five meetings of the safety, sustainability and ethics committee. Labråten is a Norwegian citizen and resident in Norway.

# **Hilde Møllerstad**

**Born:** 1966

**Position:** Employee-elected member of the board and member of the board's audit committee.

**Term of office:** Member of the board of Equinor ASA since 1 July 2019. Up for election in 2023.

**Independent:** No

**Other directorships:** Chair of Tekna's ethical board.

**Number of shares held in Equinor ASA as of 31 December 2022:** 6,290

**Loans from Equinor:** None

**Experience:** Møllerstad has been employed by Equinor since 1991 and works within petroleum technology discipline in Exploration & Production International. Møllerstad has been a member of the Corporate Assembly in Equinor from 2013 - 2019 and was a board member of Tekna Private from 2012 - 2017 and she has had several trust offices in Tekna Equinor since 1993.

**Education:** Chartered engineer from Norwegian University of Science and Technology (NTNU) and Project Management Essential (PME) from Norwegian Business School Bf/ Norwegian University of Science and Technology (BINTNU).

**Family relations:** No family relationships to other board members, members of the corporate executive committee or the corporate assembly.

**Other matters:** In 2022, Møllerstad participated in eight ordinary board meetings, four extraordinary board meetings and five meetings of the audit committee. Møllerstad is a Norwegian citizen and resident in Norway.

The composition of the board of directors changed as follows in 2022: Michael D. Lewis was elected to the board with effect from 1 July 2022; Jeroen van der Veer left the board as of 30 June 2022 and Anne Drinkwater replaced him as the deputy chair as of 1 July 2022; Haakon Bruun-Hanssen was elected with effect from 12 December 2022 replacing Bjørn Tore Godal who left the board as of 11 December 2022.

# **Members of Equinor's corporate executive committee as of 31 December 2022:**

# **Anders Opedal**

**Born:** 1968

**Position:** President and chief executive officer (CEO) since 2 November 2020

**External offices:** None

**Numbers of shares in Equinor ASA as of 31 December 2022** 46,996

**Loans from Equinor:** None

**Experience:** Opedal joined Equinor in 1997. From 2018 -2020 he held the position of Executive Vice President Technology, Projects and Drilling. From August to October 2018, he was Executive Vice President for Development, Production Brazil and prior to this Senior Vice President for Development, Production International Brazil. He also held the position as Equinor's Chief Operating Officer. In 2011 he took on the role as Senior Vice President in Technology, Projects and Drilling; where he was responsible for Equinor's NOK 300 billion project portfolio. From 2007 - 2010 he served as Chief Procurement Officer. He has held a range of technical, operational and leadership positions in the company and started as a petroleum engineer in the Statfjord operations. Prior to Equinor Opedal worked for Schlumberger and Baker Hughes.

**Education:** MBA from Heriot-Watt University and master's degree in Engineering (sivilingeniør) from the Norwegian Institute of Technology (NTH) in Trondheim.

**Family relations:** No family relations to other members of the corporate executive committee, members of the board or the corporate assembly.

**Other matters:** Opedal is a Norwegian citizen and resident in Norway.

# **Torgrim Reitan**

**Born:** 1969

**Position:** Executive Vice President and Chief Financial Officer since 6 October 2022

**External offices:** None

**Number of shares held in Equinor ASA as of 31 December 2022:** 11,473

**Loans from Equinor:**

**Experience:** Reitan joined Equinor in 1995. He comes from the position of Senior Vice President for Finance and Control in Equinor's Renewables business area, which he held since 2020. From 2018 - 2020 he was Executive Vice President for Development and production international, and from 2015 - 2018 Reitan held the position as Executive Vice President of Development and Production USA. Prior to this he held the position as Executive Vice President and Chief Financial Officer from 2010 - 2015. He has held several management positions in Equinor prior to this, including Senior Vice President in trading and operations in the Natural gas business area in 2009 - 2010, Senior Vice President in Performance management and analysis from 2007 - 2009, and from 2005 - 2007 he was Senior Vice President in Performance Management, Tax and M&A. From 1995 - 2004 Reitan held various positions in the Natural Gas business area and corporate functions.

**Education:** Master of science degree from the Norwegian School of Economics and Business administration (NHH).

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Torgrim Reitan is a Norwegian citizen and resident in Norway.

# **Jannicke Nilsson**

**Born:** 1965

**Position:** Executive vice president safety, security & sustainability (SSU) since 1 June 2021

**External offices:** Member of the board of Odfjell SE and Jotun A/S

**Number of shares in Equinor ASA as of 31 December 2022:** 59,380

**Loans from Equinor:** None

**Experience:** Nilsson joined Equinor in 1999. She comes from the position of Executive Vice President and COO, which she held from 1 December 2016. As COO, she established the Digital Centre of Excellence in 2017 to drive Equinor digital transformation to deliver tangible performance within its always safe, high value and low carbon values. In August 2013 she was appointed Programme Leader for the Equinor Technical Efficiency Programme (STEP). She has held a number of central management positions within Upstream Operations Norway, including Senior Vice President for Technical Excellence in Technology, Projects & Drilling, Senior Vice President for Operations North Sea, Vice President for Modifications and Project Portfolio Bergen and Platform Manager at Oseberg South.

**Education:** MSc in cybernetics and process automation and a BSc in automation from the Rogaland Regional College/University of Stavanger.

**Family relations:** No family relations to other members of the corporate executive committee, members of the board or the corporate assembly.

**Other matters:** Nilsson is a Norwegian citizen and resident in Norway.

# **Kjetil Hove**

**Born:** 1965

**Position:** Executive vice president Exploration & Production Norway (EPN) since 1 January 2021

**External offices:** Member of the board of The Norwegian Oil & Gas Association (Norsk Olje & Gass)

**Number of shares in Equinor ASA as of 31 December 2022:** 20,149

**Loans from Equinor:** None

**Experience:** Hove joined Equinor in 1991. He has held several central management positions in Equinor. He comes from the position of Senior Vice President Field Life Extension, which he held since January 2020. Prior to this, Hove was Senior Vice President for Operations Technology in Development & Production Norway. From 2000 - 2012 he worked internationally, including as Country Manager for Equinor in Brazil for 3.5 years. Hove started his career in 1991 in Norsk Hydro within petroleum technology holding various positions within exploration, field development and operations in Norway.

**Education:** Master's degree in petroleum engineering from Norwegian University of Science and Technology (NTNU).

**Family relations:** No family relations to other members of the corporate executive committee, members of the board or the corporate assembly.

**Other matters:** Hove is a Norwegian citizen and resident in Norway.

### **Alasdair Cook**

**Born:** 1975

**Position:** Executive Vice President, Exploration & Production International (EPI) since 1 January 2021

**External offices:** Member of the Board of The Power of Nutrition

**Number of shares in Equinor ASA as of 31 December 2022:** 3,738

**Loans from Equinor:** None

**Experience:** Cook joined Equinor in 2016. He comes from the position of Executive Vice President Global Strategy & Business Development (GSB), which he had since May 2018. He started as SVP in Development & Production International (DPI) overseeing operations in Angola, Argentina, Azerbaijan, Libya, Nigeria, Russia and Venezuela. He joined from bp, where he was Chief of Staff to the CEO. From 2009 - 2014 Cook led the development of the Southern Gas Corridor from Azerbaijan to Europe. From 2005 - 2009 he led exploration and project developments in Vietnam and acted as President for bp Vietnam. He worked in field operations in the North Sea from 2002 - 2005, becoming Offshore Installation Manager on the Cleeton platform. Cook joined bp in 1996, initially working in commercial, project and exploration roles.

**Education:** MA in Natural Sciences from St. John's College, Cambridge University and International Executive Programme at INSEAD.

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Cook is a UK citizen and resident in the UK. Cook left the CEC as of 31 December 2022.

### **Geir Tungesvik**

**Born:** 1961

**Position:** Executive Vice President, Projects, Drilling and Procurement (PDP), since 1 May 2022

**External offices:** None

**Number of shares held in Equinor ASA as of 31 December 2022:** 17,624

**Loans from Equinor ASA:** None

**Experience:** Geir Tungesvik joined Equinor in 1985. He comes from the position as Senior Vice President Project Development. Previously he has held central management positions in the company including the position as Senior Vice President for Drilling and Well, Vice President for exploration drilling, Vice President for Grane production field and Vice President for health, safety and environment in Exploration.

**Education:** Master of Science degree in petroleum from the University of Stavanger (UIS) and Master module in strategic management from the Norwegian Business School (BI).

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Tungesvik is a Norwegian citizen and resident in Norway.

### **Irene Rummelhoff**

**Born:** 1967

**Position:** Executive vice president Marketing, Midstream & Processing (MMP) since 17 August 2018

**External offices:** Deputy chair of the board of Norsk Hydro ASA.

**Number of shares in Equinor ASA as of 31 December 2022:** 28,152

**Loans from Equinor:** None

**Experience:** Rummelhoff joined Equinor in 1991. She has held a number of management positions within international business development, exploration, and the downstream business in Equinor. Her most recent position, which she held from June 2015, was as Executive Vice President New Energy Solutions (NES).

**Education:** Master's degree in Petroleum Geosciences from the Norwegian Institute of Technology (NTH).

**Family relations:** No family relations to other members of the corporate executive committee, members of the board or the corporate assembly.

**Other matters:** Rummelhoff is a Norwegian citizen and resident in Norway.

# **Pål Eitrheim**

**Born:** 1971

**Position:** Executive vice president Renewables (REN) since 17 August 2018

**External offices:** Member of the board of the Confederation of Norwegian Enterprise (NHO)

**Number of shares in Equinor ASA as of 31 December 2022:** 19,644

**Loans from Equinor:** None

**Experience:** Eitrheim joined Equinor in 1998. He has held a range of leadership positions in Equinor in Azerbaijan, Washington DC, the CEO office, corporate strategy and Brazil. In 2017-2018 he was Chief Procurement Officer. Between 2014 - 2017 he led Equinor's upstream business in Brazil. In 2013 Eitrheim led the Secretariat for the investigation into the terrorist attack on the In Amenas gas processing facility in Algeria.

**Education:** Master's degree in Comparative Politics from the University of Bergen, Norway and University College Dublin, Ireland.

**Family relations:** No family relations to other members of the corporate executive committee, the board or the corporate assembly.

**Other matters:** Eitrheim is a Norwegian citizen and resident in Norway.

# **Hege Skryseth**

**Born:** 1967

**Position:** Executive vice president and chief technical officer since 1 September 2022

**External offices:** Member of the Board of Tomra, Netcompany and AutoStore

**Number of shares in Equinor ASA as of 31 December 2022:** 2,633

**Loans from Equinor ASA:** None

**Experience:** Skryseth joined Equinor on 1 September 2022. She comes from the position as Executive Vice President of Kongsberg, and President of Kongsberg Digital, a position which she held since 2013. Prior to Kongsberg, Skryseth held various leadership positions in international tech companies such as Microsoft Norway and Geodata (ESRI).

**Education:** Executive MBA from NHH and Bachelor from BI, college graduate from NITH.

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Skryseth is a Norwegian citizen and resident in Norway.

# **Siv Helen Rygh Torstensen**

**Born:** 1970

**Position:** Executive vice president and General Counsel Legal & Compliance (LEG) since 1 June 2021

**External offices:** Member of the Council of Ethics, the Government Pension Fund Global

**Number of shares in Equinor ASA as of 31 December 2022:** 15,832

**Loans from Equinor ASA:** None

**Experience:** Rygh Torstensen joined Equinor in 1998. She comes from the position of Senior Vice President and General Counsel, which she held since 1 August 2019. Prior to that she held the position as Head of CEO office from July 2016. From 2011 - 2016 she was Vice President Corporate in LEG. From 1998 - 2011 Rygh Torstensen held various positions within LEG, including as Corporate Compliance Office and Acting General Counsel. Before joining Equinor she worked with the law firm Cappelen & Krefting DA and as a lawyer for Stavanger municipal council.

**Education:** Master of Law from the University of Bergen, Norway, and licensed as an Attorney at Law.

**Family relations:** No family relations to other members of the corporate executive committee, members of the board or the corporate assembly.

**Other matters:** Rygh Torstensen is a Norwegian citizen and resident in Norway.

# **Jannik Lindbæk**

**Born:** 1965

**Position:** Executive Vice President Communication since 1 March 2022

**External offices:** None

**Number of shares in Equinor ASA as of 31 December 2022:** 12,542

**Loans from Equinor ASA:** None

**Experience:** Lindbæk joined Equinor in 2010. He was appointed Senior Vice President Communication 1 January 2021. He was Vice President Corporate Communications Political & Public Affairs Norway from 2019-2021. Prior to this he was Equinor's Vice President for communication in Brussels, before that in the CFO Global Business Services, and as Vice President Media Relations from 2010-2015. Before joining Equinor, Lindbæk was SVP Corporate Communication in Aker Solutions, PR manager in Microsoft and PR consultant in BWPR and GCI Monsen.

**Education:** Master's degree in Comparative Politics from the University of Bergen and London School of Economics.

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Lindbæk is a Norwegian citizen and resident in Norway.

# **Aksel Stenerud**

**Born:** 1963

**Position:** Executive vice president, People & Organisation (PO) since 1 March 2022

**External offices:** Member of the board of Flow Group Norge AS

**Number of shares held in Equinor ASA as of 31 December 2022:** 9,372

**Loans from Equinor ASA:** None

**Experience:** Stenerud joined Equinor in 2008 and has held various leadership roles across the company. His most recent position, which he held from November 2021, was Vice President Employee Relations in Corporate PO. From August 2018, he was Vice President for PO in Exploration and Production International. He has also served as Vice President for Exploration and Production Norway from 2014-2018. Stenerud has had a long international career within HR and prior to this he served as an officer in the Norwegian Airforce.

**Education:** Graduate from the Air Defense academy. Minor and Intermediate in physiology with the Norwegian university of science and technology in Trondheim.

**Family relations:** No family relations to other members of the Corporate Executive Committee, members of the Board or the Corporate Assembly.

**Other matters:** Stenerud is a Norwegian citizen and resident in Norway.

The following changes were made to the Corporate Executive Committee during 2022:

As of 1 March, Jannik Lindbæk became a member of the corporate executive committee as EVP COM and at the same date Aksel Stenerud replaced Ana Fonseca Nordang as EVP PO. Carrie Lockhart left the position as EVP for TDI as of 21 March, Elisabeth B. Kvalheim took over as acting EVP TDI and Hege Skryseth became EVP TDI as of 1 September. Arne Sigve Nylund retired and Geir Tungesvik became EVP PDP as of 1 May. Torgrim Reitan replaced Ulrica Fearn as CFO as of 6 October. Alasdair Cook left the company as of 31 December 2022 and Philippe F. Mathieu became EVP EPI from 1 January 2023.

The information set forth under the heading "Corporate Assembly" in Section 5.1 of Chapter 5 on pages 270 - 272 of the 2022 Annual Report is also incorporated herein by reference.

# **B. Compensation**

The information set forth under the following headings of the 2021 Remuneration Policy included as an appendix to the 2022 Remuneration Report which is attached hereto as Exhibit 15.6 (the "2022 Remuneration Report") is incorporated herein by reference:

- Remuneration to the board of directors;
- Remuneration to the corporate assembly; and
- Remuneration to the CEC.

The information set forth under the following headings of the 2022 Remuneration Report is incorporated herein by reference:

- Overall company performance in 2022;
- Performance-based modifiers used in calculating variable pay;
- Summary of targets and achievement of corporate KPIs and goals forming the basis for annual variable pay;
- Key developments in corporate executive remuneration in 2022;
- Derogations and deviations from remuneration policy;
- Right to reclaim ('malus and clawback');
- Remuneration and share ownership of the board of directors and corporate assembly;
- Remuneration of the CEC;
- Shares awarded or due to the CEC for the reported financial year;
- Total number and value of shares held by the CEC; and
- Performance and AVP awarded to the CEC members in the reported financial year.

See also note 22 Pensions to the Consolidated financial statements.

# **C. Board Practices**

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Governing bodies in Section 1.8 of Chapter 1 on page 33;
- Corporate Assembly, board of directors and management in Section 5.1 of Chapter 5 on pages 270 - 272; and
- The board of directors' committees in Section 5.1 of Chapter 5 on page 273.

See also "Item 6. Directors, Senior Management and Employees-A. Directors and Senior Management" of this 2022 Form 20-F for more information regarding the expiration date of the current term of office of the members of our board of directors and the period during which our directors have served in such capacity, and the composition of the board of directors' committees.

#### **D. Employees**

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Contextual introduction and Management approach in Section 2.1.4 of Chapter 2 on pages 64 - 65;
- The information set forth under the heading 'Employment' in Section 2.1.4 of Chapter 2 on page 67;
- The table entitled 'Permanent employees in the Equinor group as of 31 December 2022' in Section 2.1.4 of Chapter 2 on page 67 - 68; and
- The table entitled 'Total workforce by region and employment type in the Equinor group in 2022 as of 31 December 2022' in Section 2.1.4 of Chapter 2 on page 68.

#### **E. Share Ownership**

The information set forth under the following headings of the 2022 Remuneration Report is incorporated herein by reference:

- Total number and value of shares held by the members of the board of directors;
- Shares held by the members of the corporate assembly; and
- Total number and value of shares held by the CEC.

#### **F. Disclosure of a registrant's action to recover erroneously awarded compensation**

Not applicable.

### **ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

#### **A. Major shareholders**

The information set forth under the heading "Major Shareholders" in Section 5.3 of Chapter 5 on pages 284 - 285 of the 2022 Annual Report is incorporated herein by reference.

#### **B. Related Party Transactions**

As part of its general loan arrangement for Equinor employees, Equinor has granted loans to Equinor-employed spouses of certain members of the corporate executive committee. Permanent employees in certain specified employee categories may take out a car loan from Equinor in accordance with standardised provisions set by the company. The standard maximum car loan is limited to the cost of the car, including registration fees, but not exceeding NOK 300,000. Employees outside the collective labour area are entitled to a car loan up to NOK 475,000 (managers) or NOK 575,000 (vice presidents and senior vice presidents). The car loan is interest-free, but the tax value, "interest advantage", must be reported as salary. Permanent employees of Equinor ASA may also apply for a consumer loan up to NOK 350,000. The interest rate on consumer loans corresponds to the standard rate in effect at any time for "reasonable loans" from employer as decided by the Norwegian Ministry of Finance, i.e., the lowest rate an employer may offer without triggering taxation of the benefit for the employee.

The information set forth under the heading "Equal treatment of shareholders and transactions with close associates" in Section 5.1 of Chapter 5 on pages 267 - 268 of the 2022 Annual Report is also incorporated herein by reference. See also note 27 Related parties to the Consolidated Financial Statements.

#### **C. Interests of Experts and Counsel**

Not applicable.

### **ITEM 8. FINANCIAL INFORMATION**

#### **A. Consolidated Statements and Other Financial Information**

See "Item 18. Financial Statements" of this 2022 Form 20-F.

#### **Dividend policy and dividends**

The information set forth under the following headings of the 2022 Annual Report is incorporated herein by reference:

- Capital distribution in Section 1.6 of Chapter 1 on page 30;
- Capital distribution in Section 2.2 of Chapter 2 on page 71; and
- Equity and dividends in Section 5.1 of Chapter 5 on pages 266 - 267.

See also note 20 Shareholders' equity and dividends to the Consolidated financial statements.

#### **Legal or arbitration proceedings**

Equinor is involved in a number of proceedings globally concerning matters arising in connection with the conduct of its business. No further update is provided on previously reported legal or arbitration proceedings. Equinor does not believe such proceedings will, individually or in the aggregate, have a significant effect on Equinor's financial position, profitability, results of operations or liquidity. See also note 11 Income taxes and note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated Financial Statements.

#### **B. Significant Changes**

None.

### **ITEM 9. THE OFFER AND LISTING**

#### **A. Offer and Listing Details**

Equinor's shares have been listed on the Oslo Børs (ticker: EQNR) and the New York Stock Exchange in the form of American Depositary Shares (ADS) (ticker: EQNR) since our initial public offering on 18 June 2001. The ADSs traded on the New York Stock Exchange are evidenced by American Depositary Receipts (ADR), and each ADS represents one ordinary share.

#### **B. Plan of Distribution**

Not applicable.

#### **C. Markets**

See "Item 9.A-The Offer and Listing-Offer and Listing Details" of this 2022 Form 20-F.

#### **D. Selling Shareholders**

Not applicable.

#### **E. Dilution**

Not applicable.

#### **F. Expenses of the Issue**

Not applicable.

### **ITEM 10. ADDITIONAL INFORMATION**

#### **A. Share Capital**

Not applicable.

#### **B. Memorandum and Articles of Association**

Equinor's current articles of association were adopted at the annual general meeting of shareholders on 11 May 2022. The articles of association are included as exhibit 1 to this 2022 Form 20-F.

**Summary of Equinor's articles of association:**

**Name of the company**

The registered name is Equinor ASA. Equinor is a Norwegian public limited company.

**Registered office**

Equinor's registered office is in Stavanger, Norway, registered with the Norwegian Register of Business Enterprises under number 923 609 016.

**Objective of the company**

The objective of Equinor ASA is to develop, produce and market various forms of energy and derived products and services, as well as other business. The activities may also be carried out through participation in or cooperation with other companies.

**Share capital**

Equinor's share capital is NOK 7,938,675,397.50 divided into 3,175,470,159 shares.

**Nominal value of shares**

The nominal value of each ordinary share is NOK 2.50.

**Board of directors**

Equinor's articles of association provide that the board of directors shall consist of 9 - 11 directors. The board, including the chair and the deputy chair, shall be elected by the corporate assembly for a period of up to two years.

**Corporate assembly**

Equinor has a corporate assembly comprising 18 members who are normally elected for a term of two years. The general meeting elects 12 members with four deputy members, and six members with deputy members are elected by and among the employees.

**General meetings of shareholders**

Equinor's annual general meeting is held no later than 30 June each year. The annual general meeting shall address and decide adoption of the annual report and accounts, including the distribution of any dividend and any other matters required by law or the articles of association.

Documents related to the general meetings do not need to be sent to all shareholders if they are accessible on Equinor's website. A shareholder may request that such documents be sent to him/her.

Shareholders may vote in writing, including through electronic communication, during a specified period before the general meeting. Equinor's board of directors adopted guidelines for advance voting in March 2012, and these guidelines are described in the notices of the annual general meetings.

**Marketing of petroleum on behalf of the Norwegian State**

Equinor's articles of association provide that Equinor is responsible for marketing and selling petroleum produced under the State's direct financial interest's (SDFI) shares in production licences on the Norwegian continental shelf as well as petroleum received by the Norwegian State paid as royalty together with its own production. Equinor's general meeting adopted an instruction in respect of such marketing on 25 May 2001, as most recently amended by authorisation of the annual general meeting on 15 May 2018.

**Nomination committee**

The tasks of the nomination committee are to present a recommendation to:

- The general meeting regarding the election of shareholder-elected members and deputy members of the corporate assembly.
- The general meeting regarding the election of members of the nomination committee.
- The general meeting for the remuneration of members of the corporate assembly and the nomination committee.
- The corporate assembly regarding the election of shareholder-elected members to the board of directors.
- The corporate assembly for the remuneration for members of the board of directors.
- The corporate assembly for election of the chair and the deputy chair of the corporate assembly.

The general meeting may adopt instructions for the nomination committee.

Exhibit 2.1 to this 2022 Form 20-F is also incorporated herein by reference.

**C. Material Contracts**

The information set forth under the heading "Manufacturing" in Section 3.3 of Chapter 3 on page 145 of the 2022 Annual Report is incorporated herein by reference. See also note 27 Related parties to the Consolidated financial statements.

#### **D. Exchange controls**

Under Norwegian foreign exchange controls currently in effect, transfers of capital to and from Norway are not subject to prior government approval. An exception applies to the physical transfer of payments in currency exceeding certain thresholds, which must be declared to the Norwegian custom authorities. This means that non-Norwegian resident shareholders may receive dividend payments without Norwegian exchange control consent as long as the payment is made through a licensed bank or other licensed payment institution.

There are no restrictions affecting the rights of non-Norwegian residents or foreign owners to hold or vote for our shares.

#### **E. Taxation**

##### **Norwegian tax consequences**

This section describes material Norwegian tax consequences for shareholders in connection with the acquisition, ownership and disposal of shares and American Depositary Shares ('ADS') in Equinor. The term 'shareholders' refers to both holders of shares and holders of ADSs, unless otherwise explicitly stated.

The outline does not provide a complete description of all Norwegian tax regulations that might be relevant (i.e. for investors to whom special regulations may apply, including shareholders that carry on business activities in Norway, and whose shares or ADSs are effectively connected with such business activities), and is based on current law and practice. Shareholders should consult their professional tax advisers for advice about individual tax consequences.

##### **Taxation of dividends received by Norwegian shareholders**

Corporate shareholders (i.e., limited liability companies and similar entities) residing in Norway for tax purposes are generally subject to tax in Norway on dividends received from Norwegian companies. The basis for taxation is 3% of the dividends received, which is subject to the standard income tax rate of 22% (25% for financial institutions), implying that such dividends are effectively taxed at a rate of 0.66% (0.75% for financial institutions).

Individual shareholders residing in Norway for tax purposes are subject to tax for dividend income exceeding a basic tax-free allowance. For dividend distributions resolved from 1 January 2022 to 5 October 2022, the dividend income exceeding the basic tax-free allowance is grossed up with a factor of 1.6 before being included in the ordinary taxable income, resulting in an effective tax rate of 35.2% (22% x 1.6). For dividend distributions resolved on 6. October 2022 or later, dividend income exceeding the basic tax-free allowance is grossed up with a factor of 1.72 before being included in the ordinary taxable income, resulting in an effective tax rate of 37.84% (22% x 1.72). For the income year 2023, the dividend income exceeding the basic tax-free allowance is also grossed up with a factor of 1.72, resulting in an effective tax rate of 37.84% (22% x 1.72).

The tax-free allowance is computed for each individual share or ADS and corresponds as a rule to the cost price of that share or ADS multiplied by an annual risk-free interest rate. Any part of the calculated allowance for one year that exceeds the dividend distributed for the share or ADS ('unused allowance') may be carried forward and set off against future dividends received on (or gains upon the realisation of, see below) the same share or ADS. Any unused allowance will also be added to the basis for computation of the allowance for the same share or ADS the following year.

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in Equinor through a stock savings account. Dividend on shares owned through the stock savings account is only taxable when the dividend is withdrawn from the account.

##### **Taxation of dividends received by foreign shareholders**

Non-resident shareholders are as a starting point subject to Norwegian withholding tax at a rate of 25% on dividends from Norwegian companies. The distributing company is responsible for deducting the withholding tax upon distribution to non-resident shareholders.

Corporate shareholders that carry on business activities in Norway, and whose shares or ADSs are effectively connected with such activities are not subject to withholding tax. For such shareholders, 3% of the received dividends are subject to the standard income tax of 22% (25% for financial institutions).

Certain other important exceptions and modifications are outlined below.

The withholding tax does not apply to corporate shareholders in the EEA that are comparable to Norwegian limited liability companies or certain other types of Norwegian entities, and are further able to demonstrate that they are genuinely established and carry on genuine economic business activity within the EEA.

The withholding rate of 25% is often reduced in tax treaties between Norway and other countries. The reduced withholding tax rate will generally only apply to dividends paid on shares held by shareholders who are able to properly demonstrate that they are the beneficial owner and entitled to the benefits of the tax treaty.

Individual shareholders residing for tax purposes in the EEA may apply to the Norwegian tax authorities for a refund if the tax withheld by the distributing company exceeds the tax that would have been levied on individual shareholders resident in Norway. Individual shareholders residing for tax purposes in the EEA may hold the listed shares (but not ADS) in Equinor through a Norwegian stock savings account. Dividend on shares owned through the stock savings account will only be subject to withholding tax when withdrawn from the account.

#### ***Procedure for claiming a reduced withholding tax rate on dividends***

A foreign shareholder that is entitled to an exemption from or reduction of withholding tax on dividends, may request that the exemption or reduction is applied at source by the distributor. Such request must be accompanied by satisfactory documentation which supports that the foreign shareholder is entitled to a reduced withholding tax rate. Specific documentation requirements apply.

For holders of shares and ADSs deposited with JPMorgan Chase Bank N.A. (JPMorgan), documentation establishing that the holder is eligible for the benefits under a tax treaty with Norway, may be provided to JPMorgan. JPMorgan has been granted permission by the Norwegian tax authorities to receive dividends from us for redistribution to a beneficial owner of shares and ADSs at the applicable treaty withholding rate.

The statutory 25% withholding tax rate will be levied on dividends paid to shareholders (either directly or through a depository) who have not provided the relevant documentation to the relevant party that they are eligible for a reduced rate. The beneficial owners will in this case have to apply to Skatteetaten (The Norwegian Tax Administration) for a refund of the excess amount of tax withheld. Please refer to the tax authorities' web page for more information and the requirements of such application: www.skatteetaten.no/en/person.

#### ***Taxation on realisation of shares and ADSs***

Corporate shareholders resident in Norway for tax purposes are not subject to tax in Norway on gains derived from the sale, redemption or other disposal of shares or ADSs in Norwegian companies. Capital losses are not deductible.

Individual shareholders residing in Norway for tax purposes are subject to tax in Norway on the sale, redemption or other disposal of shares or ADSs. Gains or losses in connection with such realisation are included in the individual's ordinary taxable income in the year of disposal, which is subject to the standard income tax rate of 22%. For shares realized in 2022, and prior to 6 October, taxable gain or deductible loss is grossed up with a factor of 1.6 before included in the ordinary taxable income, resulting in an effective tax rate of 35.2% (22% x 1.6). For shares realized on 6 October 2022 onwards, taxable gain or deductible loss is grossed up with a factor of 1.72 before included in the ordinary taxable income, resulting in an effective tax rate of 37.84% (22% x 1.72). For shares realized in 2023, the taxable gain or deductible loss is also grossed up with a factor of 1.72, resulting in an effective tax rate of 37.84% (22% x 1.72).

The taxable gain or deductible loss (before grossing up) is calculated as the sales price adjusted for transaction expenses minus the taxable basis. A shareholder's tax basis is normally equal to the acquisition cost of the shares or ADSs. Any unused allowance pertaining to a share may be deducted from a taxable gain on the same share or ADS but may not lead to or increase a deductible loss. Furthermore, any unused allowance may not be set off against gains from the realisation of the other shares or ADSs.

If a shareholder disposes of shares or ADSs acquired at different times, the shares or ADSs that were first acquired will be deemed to be first sold (the 'FIFO' principle) when calculating gain or loss for tax purposes.

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in Equinor through a stock savings account. Gain on shares owned through the stock savings account will only be taxable when withdrawn from the account whereas loss on shares will be deductible when the account is terminated.

A corporate shareholder or an individual shareholder who ceases to be tax resident in Norway due to Norwegian law or tax treaty provisions may, in certain circumstances, become subject to Norwegian exit taxation on unrealised capital gains related to shares or ADSs.

Shareholders not residing in Norway are generally not subject to tax in Norway on capital gains, and losses are not deductible on the sale, redemption or other disposal of shares or ADSs in Norwegian companies, unless the shareholder carries on business activities in Norway and such shares or ADSs are or have been effectively connected with such activities.

#### ***Wealth tax***

The shares or ADSs are included in the basis for the computation of wealth tax imposed on individuals residing in Norway for tax purposes. Norwegian limited liability companies and certain similar entities are not subject to wealth tax.

For the income year 2022, the net wealth tax is 0.95% for net worth above a minimum threshold of NOK 1,700,000, and 1.1% for net worth above a minimum threshold of NOK 20,000,000. The assessment value of listed shares (including ADSs) for the 2022 wealth tax is 75% of the listed value of such shares or ADSs on 1 January 2023.

For the income year 2023, the net wealth tax is 1.0% for net worth above a minimum threshold of NOK 1,700,000, and 1.1% for net worth above a minimum threshold of NOK 20,000,000. The assessment value of listed shares (including ADSs) for the 2023 wealth tax is 80% of the listed value of such shares or ADSs on 1 January 2024.

Non-resident shareholders are not subject to wealth tax in Norway for shares and ADSs in Norwegian limited liability companies unless the shareholder is an individual and the shareholding is effectively connected with the individual's business activities in Norway.

#### ***Inheritance tax and gift tax***

No inheritance or gift tax is imposed in Norway.

#### ***Transfer tax***

No transfer tax is imposed in Norway in connection with the sale or purchase of shares or ADSs.

#### **United States tax matters**

This section describes the material United States federal income tax consequences for US holders (as defined below) of the ownership and disposition of shares or ADSs. It only applies to you if you hold your shares or ADSs as capital assets for United States federal income tax purposes. This discussion addresses only United States federal income taxation and does not discuss all of the tax consequences that may be relevant to you in light of your individual circumstances, including foreign, state or local tax consequences, estate and gift tax consequences, and tax consequences arising under the Medicare contribution tax on net investment income or the alternative minimum tax. This section does not apply to you if you are a member of a special class of holders subject to special rules, including dealers in securities, traders in securities that elect to use a mark-tomarket method of accounting for securities holdings, tax-exempt organisations, insurance companies, partnerships or entities or arrangements that are treated as partnerships for United States federal income tax purposes, persons that actually or constructively own 10% of the combined voting power of voting stock of Equinor or of the total value of stock of Equinor, persons that hold shares or ADSs as part of a straddle or a hedging or conversion transaction, persons that purchase or sell shares or ADSs as a part of a wash sale for tax purposes, or persons whose functional currency is not USD.

This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed regulations, published rulings and court decisions, all as currently in effect, and the Convention between the United States of America and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Property (the 'Treaty'). These laws are subject to change, possibly on a retroactive basis. In addition, this section is based in part upon the representations of the depository and the assumption that each obligation in the deposit agreement and any related agreement will be performed in accordance with its terms. For United States federal income tax purposes, if you hold ADRs evidencing ADSs, you will generally be treated as the owner of the ordinary shares represented by those ADRs. Exchanges of shares for ADRs and ADRs for shares will not generally be subject to United States federal income tax.

A 'US holder' is a beneficial owner of shares or ADSs that is, for United States federal income tax purposes: (i) a citizen or resident of the United States; (ii) a United States domestic corporation; (iii) an estate whose income is subject to United States federal income tax regardless of its source; or (iv) a trust if a United States court can exercise primary supervision over the trust's administration and one or more United States persons are authorised to control all substantial decisions of the trust.

You should consult your own tax adviser regarding the United States federal, state and local and Norwegian and other tax consequences of owning and disposing of shares and ADSs in your particular circumstances.

The tax treatment of the shares or ADSs will depend in part on whether or not we are classified as a passive foreign investment company, or PFIC, for United States federal income tax purposes. Except as discussed below, under '-PFIC rules', this discussion assumes that we are not classified as a PFIC for United States federal income tax purposes.

#### ***Taxation of distributions***

Under the United States federal income tax laws, the gross amount of any distribution (including any Norwegian tax withheld from the distribution payment) paid by Equinor out of its current or accumulated earnings and profits (as determined for United States federal income tax purposes), other than certain pro-rata distributions of its shares, will be treated as a dividend that is taxable for you when you, in the case of shares, or the depository, in the case of ADSs, receive the dividend, actually or constructively. If you are a non-corporate US holder, dividends that constitute qualified dividend income will be eligible to be taxed at the preferential rates applicable to long-term capital gains as long as, in the year that you receive the dividend, the shares or ADSs are readily tradable on an established securities market in the United States or Equinor is eligible for benefits under the Treaty. We believe that Equinor is currently eligible for the benefits of the Treaty and we therefore expect that dividends on the

ordinary shares or ADSs will be qualified dividend income. To qualify for the preferential rates, you must hold the shares or ADSs for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meet certain other requirements. The dividend will not be eligible for the dividends-received deduction generally allowed to United States corporations in respect of dividends received from other United States corporations.

The amount of the dividend distribution that you must include in your income will be the value in USD of the payments made in NOK determined at the spot NOK/USD rate on the date the dividend is distributed, regardless of whether or not the payment is in fact converted into USD. Distributions in excess of current and accumulated earnings and profits, as determined for United States federal income tax purposes, will be treated as a non-taxable return of capital to the extent of your tax basis in the shares or ADSs and, to the extent in excess of your tax basis, will be treated as capital gain. However, Equinor does not expect to calculate earnings and profits in accordance with United States federal income tax principles. Accordingly, you should expect to generally treat distributions we make as dividends.

Subject to certain limitations, the 15% Norwegian tax withheld in accordance with the Treaty and paid to Norway will be creditable or deductible against your United States federal income tax liability, unless a reduction or refund of the tax withheld is available to you under Norwegian law. However, under recently finalized Treasury regulations, it is possible that taxes may not be creditable unless you are eligible for and elect to apply the benefits of the Treaty. Special rules apply in determining the foreign tax credit limitation with respect to dividends that are subject to the preferential tax rates. Dividends will generally be income from sources outside the United States and will generally be 'passive' income for purposes of computing the foreign tax credit allowable to you. Any gain or loss resulting from currency exchange rate fluctuations during the period from the date you include the dividend payment in income until the date you convert the payment into USD will generally be treated as US-source ordinary income or loss and will not be eligible for the special tax rate.

#### ***Taxation of capital gains***

If you sell or otherwise dispose of your shares or ADSs, you will generally recognise a capital gain or loss for United States federal income tax purposes equal to the difference between the value in USD of the amount that you realise and your tax basis, determined in USD, in your shares or ADSs. Capital gain of a non-corporate US holder is generally taxed at preferential rates if the property is held for more than one year. The gain or loss will generally be income or loss from sources within the United States for foreign tax credit limitation purposes. If you receive any foreign currency on the sale of shares or ADSs, you may recognise ordinary income or loss from sources within the United States as a result of currency fluctuations between the date of the sale of the shares or ADSs and the date the sales proceeds are converted into USD. You should consult your own tax adviser regarding how to account for payments made or received in a currency other than USD.

#### ***PFIC rules***

We believe that the shares and ADSs should not currently be treated as stock of a PFIC for United States federal income tax purposes and we do not expect to become a PFIC in the foreseeable future. However, this conclusion is a factual determination that is made annually and thus may be subject to change. It is therefore possible that we could become a PFIC in a future taxable year. If we were to be treated as a PFIC, a gain realised on the sale or other disposition of the shares or ADSs would in general not be treated as a capital gain. Instead, unless you elect to be taxed annually on a mark-to-market basis with respect to the shares or ADSs, you would generally be treated as if you had realised such gain and certain 'excess distributions' ratably over your holding period for the shares or ADSs. Amounts allocated to the year in which the gain is realised or the 'excess distribution' is received or to a taxable year before we were classified as a PFIC would be subject to tax at ordinary income tax rates, and amounts allocated to all other years would be taxed at the highest tax rate in effect for each such year to which the gain or distribution was allocated, together with an interest charge in respect of the tax attributable to each such year. With certain exceptions, your shares or ADSs will be treated as stock in a PFIC if we were a PFIC at any time during the period you held the shares or ADSs. Dividends that you receive from us will not be eligible for the preferential tax rates if we are treated as a PFIC with respect to you, either in the taxable year of the distribution or the preceding taxable year, but will instead be taxable at rates applicable to ordinary income.

#### ***Foreign Account Tax Compliance Withholding***

A 30% withholding tax will be imposed on certain payments to certain non-US financial institutions that fail to comply with information reporting requirements or certification requirements in respect of their direct and indirect United States shareholders and/or United States accountholders. To avoid becoming subject to the 30% withholding tax on payments to them, we and other non-US financial institutions may be required to report information to the IRS regarding the holders of shares or ADSs and to withhold on a portion of payments under the shares or ADSs to certain holders that fail to comply with the relevant information reporting requirements (or hold shares or ADSs directly or indirectly through certain non-compliant intermediaries). However, under proposed Treasury regulations, such withholding will not apply to payments made before the date that is two years after the date on which final regulations defining the term 'foreign passthru payment' are enacted. The rules for the implementation of these requirements have not yet been fully finalised, so it is impossible to determine at this time what impact, if any, these requirements will have on holders of the shares and ADSs.

#### **F. Dividends and Paying Agents**

Not applicable.

# **G. Statement by Experts**

Not applicable.

# **H. Documents on Display**

Our filings with the SEC are available to the public through the SEC's website at http://www.sec.gov. We also make available on our website, free of charge, our annual reports on Form 20-F, as well as certain other SEC filings, as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. The information on our website is not incorporated by reference in this document.

Documents related to us that are available to the public (this 2022 Form 20-F, the 2022 Annual Report, our Articles of Association, our Code of Conduct, financial statements and our historical financial information for each of the three financial years preceding the publication of this 2022 Form 20-F) can be consulted on our website and at: Equinor ASA, Forusbeen 50, 4035 Stavanger, Norway. Unless stated otherwise, none of these documents form a part of this 2022 Form 20-F.

# **I. Subsidiary Information**

Not applicable.

# **J. Annual Report to Security Holders.**

Not applicable.

# **ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

See notes 4 Financial risk and capital management and 28 Financial instruments and fair value measurement to the Consolidated Financial Statements.

# **ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

# **A. Debt Securities**

Not applicable.

# **B. Warrants and Rights**

Not applicable.

# **C. Other Securities**

Not applicable.

# **D. American Depositary Shares**

Exhibit 2.1 to this 2022 Form 20-F is incorporated herein by reference.

# **Name of depository and address of its principal executive office.**

JPMorgan Chase Bank N.A. (JPMorgan), serves as the depository for Equinor's ADR programme having replaced the Deutsche Bank Trust Company Americas (Deutsche Bank) pursuant to the Further Amended and Restated Deposit Agreement dated 4 February 2019.

# **Fees and charges payable by a holder of ADSs**

JPMorgan collects its fees for the delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal, or from intermediaries acting for them. The depository collects other fees from investors by billing ADR holders, by deducting such fees and charges from the amounts distributed or by deducting such fees from cash dividends or other cash distributions. The depository may refuse to provide fee-attracting services until its fees for those services are paid.

The charges of the depository payable by investors are as follows:

| ADR holders, persons depositing or withdrawing shares, and/or persons whom ADSs are issued, must pay: | For: |
| --- | --- |

Issuance of ADSs, including issuances resulting from a deposit of shares, a distribution of shares or rights or other property, and issuances pursuant to stock dividends, stock splits, mergers, exchanges of securities or any other transactions or events affecting the ADSs or the deposited securities.

USD 5.00 (or less) per 100 ADSs (or portion of 100 ADSs)

|  | Cancellation of ADSs for the purpose of withdrawal of deposited securities, including if the deposit agreement terminates, or a cancellation or reduction of ADSs for any other reason |
| --- | --- |
| USD 0.05 (or less) per ADS | Any cash distribution made or elective cash/stock dividend offered pursuant to the Deposit Agreement |
| USD 0.05 (or less) per ADS, per calendar year (or portion thereof) | For the operation and maintenance costs in administering the ADR programme |
| A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | Distribution to registered ADR holders of (i) securities distributed by the company to holders of deposited securities or (ii) cash proceeds from the sale of such securities |
| Registration or transfer fees | Transfer and registration of shares on our share register to or from the name of the Depositary or its agent when you deposit or withdraw shares |
| Expenses of the Depositary | SWIFT, cable, telex, facsimile transmission and delivery charges (as provided in the deposit agreement). Fees, expenses and other charges of JPMorgan or its agent (which may be a division, branch or affiliate) for converting foreign currency to USD, which shall be deducted out of such foreign currency. |
| Taxes and other governmental charges the Depositary or the custodian have to pay, for example, stock transfer taxes, stamp duty or withholding taxes | As necessary |
| Any fees, charges and expenses incurred by the Depositary or its agents for the servicing of the deposited securities, the sale of securities, the delivery of deposited securities or in connection with the depositary's or its custodian's compliance with applicable law, rule or regulation, including without limitation expenses incurred on behalf of ADR holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment | As necessary |

#### **Direct and indirect payments by the depositary**

For the year ended 31 December 2022, J.P. Morgan reimbursed USD 2,000,000 to the company. Other reasonable costs associated with the administration of the ADR programme are borne by the company. For the year ended 31 December 2022, such costs, associated with the administration of the ADR programme, paid by the company, added up to USD 229,704. Under certain circumstances, including the removal of J.P. Morgan as depositary, the company is required to repay to J.P. Morgan certain amounts paid to the company in prior periods.

#### **ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

Not applicable.

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

Not applicable.

#### **ITEM 15. CONTROLS AND PROCEDURES**

##### **Disclosure Controls and Procedures**

The management of Equinor, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of 31 December 2022. Based on that evaluation, the chief executive officer and chief financial officer have concluded that these disclosure controls and procedures are effective at a reasonable level of assurance.

In designing and evaluating our disclosure controls and procedures, our management, with the participation of the chief executive officer and chief financial officer, recognised that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance that the desired control objectives will be achieved, and that the management must necessarily exercise judgment when evaluating possible controls and procedures. Because of the limitations inherent in all control systems, no

evaluation of controls can provide absolute assurance that all control issues and any instances of fraud in the company have been detected

#### **Management's Annual Report on Internal Control Over Financial Reporting**

The management of Equinor is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed, under the supervision of the chief executive officer and chief financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Equinor's financial statements for external reporting purposes in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The accounting policies applied by the group also comply with IFRS as issued by the International Accounting Standards Board (IASB).

The management of Equinor has assessed the effectiveness of internal control over financial reporting based on the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has concluded that Equinor's internal control over financial reporting as of 31 December 2022 was effective.

Equinor's internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets, provide reasonable assurance that transactions are recorded in the manner necessary to permit the preparation of financial statements in accordance with IFRS, and that receipts and expenditures are only carried out in accordance with the authorisation of the management and directors of Equinor; and provide reasonable assurance regarding the prevention or timely detection of any unauthorised acquisition, use or disposition of Equinor's assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Moreover, projections of any evaluation of the effectiveness of internal control to future periods are subject to a risk that controls may become inadequate because of changes in conditions and that the degree of compliance with policies or procedures may deteriorate.

#### **Attestation Report of the Registered Public Accounting Firm**

The effectiveness of internal control over financial reporting as of 31 December 2022 has been audited by Ernst & Young AS, an independent registered accounting firm that also audits Equinor's Consolidated Financial Statements. Their audit report on the internal control over financial reporting is included in the Consolidated Financial Statements.

#### **Changes in Internal Control Over Financial Reporting**

There were no significant changes in our internal control over financial reporting during the year ended 31 December 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

#### **ITEM 16. [RESERVED]**

#### **ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Our board of directors has determined that both Anne Drinkwater and Rebekka Glasser Herlofsen qualify as an 'audit committee financial expert' as defined in Item 16A of Form 20-F under the Exchange Act and each of them is an independent director under Rule 10A-3 under the Exchange Act.

#### **ITEM 16B. CODE OF ETHICS**

We have adopted a Code of Conduct, which is approved by our board of directors, and applies to our board members, all of our employees (including our principal executive, principal financial and principal accounting officers) and hired personnel. Our Code of Conduct is filed as Exhibit 11 to this 2022 Form 20-F.

In 2022, our board of directors approved certain amendments to our Code of Conduct, including:

- Updates clarifying that 'other follow-up of personnel' may be relevant in case of breach of the Code of Conduct, such as behavior goals or training; and

In 2022, we did not grant any waiver, including any implicit waiver, from any provision of the Code of Conduct to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

# **ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The information set forth under the heading “*External auditor*” in Section 5.1 of Chapter 5 on pages 275 - 276 of the 2022 Annual Report is incorporated herein by reference. See also note 9 Auditor’s remuneration and Research and development expenditures to the Consolidated Financial Statements.

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

See “Item 16G. Corporate Governance-Board committees” of this 2022 Form 20-F.

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

The information set forth under the headings “Equinor’s share savings plan”, “Share buy-back” and “Summary of shares repurchased” in Section 5.3 of Chapter 5 on pages 283 - 284 of the 2022 Annual Report is also incorporated herein by reference.

## ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

## ITEM 16G. CORPORATE GOVERNANCE

Equinor’s primary listing is on the Oslo Børs, and its ADRs are listed on the NYSE. In addition, Equinor is a foreign private issuer subject to the reporting requirements of the SEC. ADRs representing the company’s ordinary shares are listed on the NYSE. While Equinor’s corporate governance practices follow the requirements of Norwegian law, Equinor is also subject to the NYSE’s listing rules. As a foreign private issuer, Equinor is exempt from most of the NYSE corporate governance standards that domestic US companies must comply with. However, Equinor is required to disclose any significant ways in which its corporate governance practices differ from those applicable to domestic US companies under the NYSE rules. A statement of differences is set out below:

### Corporate governance guidelines

The NYSE rules require domestic US companies to adopt and disclose corporate governance guidelines. Equinor’s corporate governance principles are developed by the management and the board of directors, in accordance with the Norwegian Code of Practice for Corporate Governance and applicable law. Oversight of the board of directors and management is exercised by the corporate assembly.

### Director independence

The NYSE rules require domestic US companies to have a majority of “independent directors”. The NYSE definition of an “independent director” sets out five specific tests of independence and requires an affirmative determination by the board of directors that the director has no material relationship with the company.

Pursuant to Norwegian company law, Equinor’s board of directors consists of members elected by shareholders and employees. Equinor’s board of directors has determined that, in its judgment, all shareholder-elected directors are independent. In making its determinations of independence, the board focuses, among other things, on there not being any conflicts of interest between shareholders, the board of directors and the company’s management. It does not strictly make its determination based on the NYSE’s five specific tests but takes into consideration all relevant circumstances which may in the board’s view affect the directors’ independence. The directors elected from among Equinor’s employees would not be considered independent under the NYSE rules as they are employees of Equinor. None of these employee representatives are executive officers of the company. For further information about the board of directors, see “Item 6. Directors, Senior Management and Employees-A. Directors and Senior Management” of this 2022 Form 20-F.

### Board committees

Pursuant to Norwegian company law, managing the company is the responsibility of the board of directors. Equinor has an audit committee, a safety, sustainability and ethics committee and a compensation and executive development committee. The audit committee and the compensation and executive development committee operate pursuant to instructions that are broadly comparable to the applicable committee charters required by the NYSE rules. They report on a regular basis to, and are subject to, oversight by the board of directors.

Equinor complies with the NYSE rule regarding the obligation to have an audit committee that meets the requirements of Rule 10A-3 of the US Securities Exchange Act of 1934. The members of Equinor’s audit committee include an employee-elected director. Equinor relies on the exemption provided in Rule 10A-3(b)(1)(iv)(C) from the independence requirements of the US Securities Exchange Act of 1934 with respect to the employee-elected director. Equinor does not believe that its reliance on this exemption will materially adversely affect the ability of the audit committee to act independently or to satisfy the other requirements of Rule 10A-3 relating to audit committees. The other members of the audit committee meet the independence requirements under Rule 10A-3.

Among other things, the audit committee evaluates the qualifications and independence of the company’s external auditor. However, in accordance with Norwegian law, the auditor is elected by the annual general meeting of the company’s shareholders. Equinor does not have a nominating/corporate governance committee formed from its board of directors. Instead, the roles prescribed under the NYSE rules for such committee are principally carried out by the corporate assembly and the nomination committee, each of which is elected by the general meeting of shareholders.

NYSE rules require the compensation committee of US companies to comprise independent directors, recommend senior management remuneration and determine the independence of advisors when engaging them. Equinor, as a foreign private issuer, is exempted from complying with these rules and is permitted to follow its home country regulations. Equinor considers all its compensation committee members to be independent (under Equinor’s framework which, as discussed above, is not identical to that

of NYSE). Equinor's compensation committee makes recommendations to the board regarding management remuneration, including that of the CEO. Further, the compensation committee assesses its own performance and has the authority to hire external advisors. The nomination committee, which is elected by the general meeting of shareholders, recommends to the corporate assembly the candidates and remuneration of the board of directors. The nomination committee also recommends to the general meeting of shareholders the candidates and remuneration of the corporate assembly and the nomination committee.

#### **Shareholder approval of equity compensation plans**

NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to a shareholder vote. Under Norwegian company law, although the issuance of shares and authority to buy-back company shares must be approved by Equinor's annual general meeting of shareholders, the approval of equity compensation plans is normally reserved for the board of directors.

#### **ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

#### **ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

#### **ITEM 17. FINANCIAL STATEMENTS**

The Company has responded to Item 18 in lieu of this item.

#### **ITEM 18. FINANCIAL STATEMENTS**

The audited consolidated financial statements as required under Item 18 are attached hereto starting on page 60 of this 2022 Form 20-F. The audit report of Ernst & Young AS, an independent registered accounting firm, is included herein preceding the audited Consolidated Financial Statements.

#### **Disclosure Pursuant to Section 13(r) of the Exchange Act**

Equinor is providing the following disclosure pursuant to Section 13(r) of the Exchange Act.

Equinor entered into agreements with the National Iranian Oil Company (NIOC), namely, a Development Service Contract for South Pars Gas Phases 6, 7 & 8 (offshore part), an Exploration Service Contract for the Anaran Block and an Exploration Service Contract for the Khorramabad Block, which are located in Iran. Equinor's operational obligations under these agreements have terminated and the licences have been abandoned. The cost recovery programme for these contracts was completed in 2012, except for the recovery of tax and obligations to the Social Security Organization (SSO). From 2013 to November 2018, after closing Equinor's office in Iran, Equinor's activity was focused on a final settlement with the Iranian tax and SSO authorities relating to the above-mentioned agreements.

In a letter from the US State Department of 1 November 2010, Equinor was informed that it was not considered to be a company of concern based on its previous Iran-related activities.

Equinor has an intention to settle historic obligations in Iran while remaining compliant with applicable sanctions and trade restrictions against Iran. Since November 2018 Equinor has not conducted any activity in Iran, nor has it been able to resolve tax claims from the Iranian authorities.

No payments were made to Iranian authorities during 2022.

# **ITEM 19. EXHIBITS**

| Exhibit no | Description |
| --- | --- |
| Exhibit 1 | Articles of Association of Equinor ASA, as amended, effective from 11 May 2022 (English translation) |
| Exhibit 2.1 | Description of Securities registered under Section 12 of the Exchange Act. |
| Exhibit 2.2 | Form of Indenture among Equinor ASA (formerly known as Statoil ASA and Statoil/Hydro ASA), Equinor Energy AS (formerly known as Statoil Petroleum AS and Statoil/Hydro Petroleum AS) and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 of Equinor ASA's (formerly known as Statoil ASA) and Equinor Energy AS's (formerly known as Statoil Petroleum AS) Post - Effective Amendment No.1 to their Registration Statement on Form F-3 (File No. 333-143339) filed with the Commission on 2 April 2009). |
| Exhibit 2.3 | Supplemental Indenture No. 3 (incorporated by reference to Exhibit 4.1 of Equinor ASA's Report on Form 6-K (File No. 001-15200) filed with the Commission on 10 September 2018). |
| Exhibit 2.4 | Form of Supplemental Indenture No. 4 (incorporated by reference to Exhibit 4.1 of Equinor ASA's Report on Form 6-K (File No. 001-15200) filed with the Commission on 13 November 2019). |
| Exhibit 2.5 | Amended and Restated Agency Agreement, dated as of 9 May 2022, by and among Equinor ASA, as Issuer, Equinor Energy AS, as Guarantor, the Bank of New York Mellon, as Agent and the Bank of New York Mellon SA/NV, Luxembourg Branch, as Paying Agent in respect of a €20,000,000 Euro Medium Term Note Programme. |
| Exhibit 2.6 | Deed of Covenant, dated as of 13 May 2020, of Equinor ASA in respect of a €20,000,000 Euro Medium Term Notes Programme, (incorporated by reference to Exhibit 2.6 of Equinor ASA's 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021). |
| Exhibit 2.7 | Deed of Guarantee, dated as of 13 May 2020, of Equinor Energy AS in respect of a €20,000,000 Euro Medium Term Notes Programme (incorporated by reference to Exhibit 2.7 of Equinor ASA's 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021). |
| Exhibit 4(a)(i) | Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(i) of Equinor's (formerly known as Statoil) 2016 Form 20-F (File no. 001-15200) filed with the Commission on March 17, 2017). |
| Exhibit 4(a)(ii) | Amendment no. 1, 2, 3, 4, 5 and 6, dated 17 October 2010, 19 February 2013, 15 December 2012, 17 September 2014, 15 December 2017 and 22 December 2017, respectively, to Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(ii) of Equinor's (formerly known as Statoil) 2017 Form 20-F (File no. 001-15200) filed with the Commission on March 23, 2018). |
| Exhibit 4(c) | Employment agreement with Anders Opedal as of 9 August 2020 (incorporated by reference to Exhibit 4(c) of Equinor ASA's 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021). |
| Exhibit 8 | List of subsidiaries. |
| Exhibit 11 | Code of Conduct. |
| Exhibit 12.1 | Rule 13a-14(a) Certification of Chief Executive Officer. |
| Exhibit 12.2 | Rule 13a-14(a) Certification of the Chief Financial Officer. |
| Exhibit 13.1 | Rule 13a-14(b) Certification of the Chief Executive Officer. 1) |
| Exhibit 13.2 | Rule 13a-14(b) Certification of Chief Financial Officer. 1) |
| Exhibit 15.1 | Consent of EY AS. |
| Exhibit 15.2 | Consent of DeGolyer and MacNaughton. |
| Exhibit 15.3 | Report of DeGolyer and MacNaughton. |
| Exhibit 15.4 | Equinor 2022 Integrated Annual Report |
| Exhibit 15.5 | Oil and gas reserves report |
| Exhibit 15.6 | Remuneration report |
| Exhibit 17 | List of Guarantor Subsidiaries |
| Exhibit 101 | Interactive Data Files (formatted in Inline XBRL (Extensible Business Reporting Language)). Submitted electronically with the 2022 Form 20-F. |
| Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

1) Furnished only.

The total amount of long term debt securities of Equinor ASA and its subsidiaries authorised under instruments other than those listed above does not exceed 10% of the total assets of Equinor ASA and its subsidiaries on a consolidated basis. The company agrees to furnish copies of any such instruments to the Commission upon request.

# SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.

**EQUINOR ASA** **(Registrant)**

By: /s/ TORGRIM REITAN

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer

Dated: 23 March 2023

The reports set out below are provided in accordance with standards of the Public Company Accounting Oversight Board (United States). Ernst & Young AS (PCAOB ID: 1572) has also issued a report in accordance with law, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing (ISAs), which includes opinions on the Consolidated financial statements and the parent company financial statements of Equinor ASA, and on other required matters. That report is not included in this 2022 Form 20-F, but only in the 2022 Annual report.

## Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

### Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Equinor ASA and its subsidiaries (Equinor or the Company) as at 31 December 2022 and 2021, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended 31 December 2022, and the related notes (collectively referred to as the 'Consolidated Financial Statements'). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company as at 31 December 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended 31 December 2022, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in conformity with IFRS as adopted by the European Union.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as at 31 December 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated 14 March 2023 expressed an unqualified opinion thereon.

### Revision of Segment Reporting

As discussed in Note 5 to the Consolidated Financial Statements, the Company revised the measurement basis for the segments related to leases. The revision has been retrospectively adjusted for the years ended 31 December 2021 and 2020.

### Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the Consolidated Financial Statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the Consolidated Financial Statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Consolidated Financial Statements. We believe that our audits provide a reasonable basis for our opinion.

### Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the Consolidated Financial Statements that were communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the Consolidated Financial Statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

### Recognition of deferred tax asset related to the US filing jurisdiction

#### Description of the Matter

As at 31 December 2022, the Company has recognised a previously unrecognised deferred tax asset of USD 2,738 million related to the US filing jurisdiction, which requires convincing evidence through future taxable profit to support the probable realisation of the deferred tax asset against historical carry-forward tax losses. Refer to Note 11 to the Consolidated Financial Statements for the related disclosures. As described in Note 11, 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. The future taxable income has to be considered probable

based on business forecasts.

In addition to agreeing the historical losses to supporting documentation, auditing management's estimate of the amount of the deferred tax asset is subjective because the estimation requires significant judgement, including the timing of reversals of the deferred tax liability and the availability of future profits against which tax deductions represented by the deferred tax asset can be offset. In addition, auditing management's estimate of amount of the deferred tax balances that are supported by the expectation of future taxable profits requires a high degree of judgement. Significant assumptions used in future taxable profits are commodity prices, expected oil and gas reserves and capital expenditures.

These significant assumptions are forward-looking and are heightened in complexity given the future demand and price uncertainty due to climate change and the energy transition. As described in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of the economic assumptions in the Company's estimation of future cash flows. Climate considerations are included directly in the deferred tax asset assessments by estimating the CO$_{2}$ costs in the cash flows, and indirectly as the expected effects of the climate change are included in the estimated commodity prices. Commodity price assumptions applied in the recognition of deferred tax assets are based on management's best estimate, which differs from the price-set required to achieve the goals of the Paris Agreement as described in the International Energy Agency (IEA) World Energy Outlook's Announced Pledges Scenario, or the Net Zero Emissions by 2050 Scenario. The impact of the energy transition and potential restrictions by regulators, market and strategic considerations may also have an effect on the estimated production profiles and the economic lifetime of the Company's US assets and projects.

#### *How We Addressed the Matter in Our Audit*

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company's process for the recognition of the deferred tax asset related to the US filing jurisdiction. This included testing controls over the Company's process for tracking tax loss carry-forwards, management's review of assumptions and inputs to the calculations of future taxable profit and scheduling of reversal of the deferred tax liabilities.

In assessing the recognition and measurement of the deferred taxes we tested the completeness and accuracy of the amounts recognised as deferred tax asset by verifying tax loss carry-forwards against historical tax filings and assessing management's determination of the expected timing of utilisation of the deferred tax asset, including the application of relevant tax laws to the utilisation of tax losses. We also evaluated management's forecasted timing of the reversal of taxable temporary differences by considering the nature of the temporary differences and the relevant tax law. We involved our US tax specialists to assist us in these procedures.

Our audit procedures performed over the significant assumptions and inputs included, among others, evaluation of the methods and models used in the calculation of future taxable profit. We compared projected capital expenditures, from which depreciation expense is derived, and expected reserve volumes used in the estimation of the future taxable profit to approved operator budgets or management forecasts, and also compared expected reserve volumes to external evaluations when available. In addition, we compared the forecast to that used in other areas of analysis, such as impairment or impairment reversal assessment, as applicable.

To test price assumptions, we evaluated management's methodology to determine future commodity prices and compared such assumptions to external benchmarks, among other procedures. We evaluated management's methodology to factor climate-related matters into their determination of future commodity prices.

To test carbon costs assumptions, with the involvement of climate change and sustainability specialists, we evaluated management's methodology to determine future CO$_{2}$ tax, including assessing the impact from climate-related matters, through comparison of management's assumptions with the current legislation in place and the jurisdiction's announced pledges regarding escalation of CO$_{2}$ taxes.

We assessed management's sensitivity analysis disclosed in Note 11 related to a reasonably possible change in commodity prices.

#### **Recoverable amounts of production plants and oil and gas assets including assets under development**

##### *Description of the Matter*

As at 31 December 2022, the Company has recognised production plants and oil and gas assets, including assets under development, of USD 40,493 million and USD 10,679 million, respectively, within Property, plant and equipment. Refer to Note 14 to the Consolidated Financial Statements for the related disclosures. As described in Note 14, determining the recoverable amount of an asset involves an estimate of future cash flows, which is dependent upon management's best estimate of the economic conditions that will exist over the asset's useful life. The asset's operational performance

and external factors have a significant impact on the estimated future cash flows and therefore, the recoverable amount of the asset.

Auditing management's estimate of the recoverable amount of production plants and oil and gas assets is complex and involves a high degree of judgement. Significant assumptions used in forecasting future cash flows are future commodity prices, currency exchange rates, expected reserves, capital expenditures, and the discount rate.

These significant assumptions are forward-looking and can be affected by future economic and market conditions, including matters related to climate change and energy transition. As described in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of the economic assumptions in the Company's estimation of future cash flows. Climate considerations are included directly in the impairment assessments by estimating the CO$_{2}$ costs in the cash flows, and indirectly as the expected effects of the climate change are included in the estimated commodity prices. As also described in Note 3, commodity price assumptions applied in value-in-use impairment testing are based on management's best estimate, which differs from the price-set required to achieve the goals of the Paris Agreement as described in the International Energy Agency (IEA) World Energy Outlook's Announced Pledges Scenario, or the Net Zero Emissions by 2050 Scenario. The impact of the energy transition and potential restrictions by regulators, market and strategic considerations may also have an effect on the estimated production profiles and the economic lifetime of the Company's assets and projects.

Additionally, the treatment of tax in the estimation of the recoverable amount is challenging, as the Company is subject to different tax structures that are inherently complex, particularly in Norway.

#### *How We Addressed the Matter in Our Audit*

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company's process for evaluating the recoverability of production plants and oil and gas assets including assets under development. This included testing controls over management's review of assumptions and inputs to the assessments of impairment and impairment reversals.

Our audit procedures performed over the significant assumptions and inputs included, among others, evaluation of the methods and models used in the calculation of the recoverable amount. We also evaluated the relevant tax effects based on the local legislation of the relevant jurisdictions, particularly in Norway, and tested the clerical accuracy of the models through independently recalculating the value in use. We involved valuation specialists to assist us with these procedures. In addition, we compared projected capital expenditures to approved operator budgets or management forecasts and compared expected reserve volumes to internal production forecasts and external evaluations of expected reserves, in accordance with the Company's internal procedures. For those assets previously impaired, we compared actual results to the forecasts used in historical impairment analyses. We also involved reserves specialists to assist us with these procedures.

To test price assumptions, we evaluated management's methodology to determine future commodity prices and compared such assumptions to external benchmarks, among other procedures. We involved valuation specialists to assist in evaluating the reasonableness of the Company's assessment of currency exchange rates and the discount rate, by assessing the Company's methodologies and key assumptions used to calculate the rates and by comparing those rates with external information. We also evaluated management's methodology to factor climate-related matters into their determination of future commodity prices, through assessing management's sensitivity analyses as discussed below.

To test carbon costs assumptions, with the involvement of climate change and sustainability specialists, we evaluated management's methodology to determine future CO$_{2}$ tax, including assessing the impact from climate-related matters, through assessing management's sensitivity analyses as discussed below, and compared management's assumptions with the current legislation in place in the relevant jurisdictions and the jurisdictions' announced pledges regarding escalation of CO$_{2}$ taxes.

We evaluated management's sensitivity analyses over its future commodity prices and carbon cost assumptions by taking into consideration, among other sources, the Net Zero Emissions by 2050 Scenario and Announced Pledges Scenario estimated by the International Energy Agency (IEA). We have also evaluated management's disclosures related to the consequences of initiatives to limit climate changes, including the effects of the Company's climate change strategy on the Consolidated Financial Statements and the energy transition's effects on estimation uncertainty, discussed in more detail in Notes 3 and 14.

#### **Estimation of the asset retirement obligations**

##### *Description of the Matter*

As at 31 December 2022, the Company has recognised a provision for decommissioning and removal activities of USD 11,734 million classified within Provisions and other liabilities. Refer to Note 23 to the Consolidated Financial Statements for disclosures. As described in Note 23, the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing technological developments, expectations about future regulatory and technological development and

involve the application of judgement and an inherent risk of significant adjustments. The estimated costs of decommissioning and removal activities require revisions due to changes in current regulations and technology while considering relevant risks and uncertainties.

Auditing management's estimate of the decommissioning and removal of offshore installations at the end of the production period is complex and involves a high degree of judgement. Determining the provision for such obligation involves application of considerable judgement related to the assumptions used in the estimate, the inherent complexity and uncertainty in estimating future costs, and the limited historical experience against which to benchmark estimates of future costs. Significant assumptions used in the estimate are the discount rates and the expected future costs, which include the underlying assumptions norms and rates and time required to decommission and can vary considerably depending on the expected removal complexity.

These significant assumptions are forward-looking and can be affected by future economic and market conditions, including matters related to climate change and energy transition. As described in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of the economic assumptions in the Company's estimation of future cash flows. The impact of the energy transition and potential restrictions by regulators, market and strategic considerations may also have an effect on the estimated economic lifetime of the Company's assets and projects. If the Company's business cases for the oil and gas producing assets in the future should change materially due to governmental initiatives to limit climate change, it could affect the timing of cessation of the assets and the asset retirement obligations (ARO).

# *How We Addressed the Matter in Our Audit*

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company's process to calculate the present value of the estimated future decommissioning and removal activities determined in accordance with local conditions and requirements. This includes controls related to management's review of assumptions described above, used in the calculation of the ARO.

To test management's estimation of the provision for decommissioning and removal activities, our audit procedures included, among others, evaluating the completeness of the provision by comparing significant additions to property, plant and equipment to management's assessment of new ARO obligations recognized in the period.

To assess the expected future costs, among other procedures, we compared day rates for rigs, marine operations and heavy lift vessels to external market data or existing contracts. For time required to decommission, we compared the assumptions against historical data on a sample basis. We compared discount rates to external market data. With the support of our valuation specialists, we evaluated the methodology and models used by management to estimate the ARO and performed a sensitivity analysis on the significant assumptions. In addition, we recalculated the formulas in the models.

We recalculated management's sensitivity analyses over the effect of performing removal five years earlier than currently scheduled due to potential governmental initiatives to limit climate changes.

We have also evaluated management's disclosures related to the consequences of initiatives to limit climate changes, including the effects of the Company's climate change strategy on the Consolidated Financial Statements and the energy transition's effects on estimation uncertainty, discussed in more detail in Notes 3 and 23.

/s/ Ernst & Young AS

We have served as the Company's auditor since 2019.

Stavanger, Norway 14 March 2023

# Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

# **Opinion on Internal Control over Financial Reporting**

We have audited Equinor ASA and subsidiaries' (the Company) internal control over financial reporting as at 31 December 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at 31 December 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2022 Consolidated Financial Statements of the Company, and our report dated 14 March 2023 expressed an unqualified opinion thereon.

# **Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting as set out in Item 15. Controls and Procedures. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

# **Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young AS

Stavanger, Norway

14 March 2023

## **Consolidated financial statements of the Equinor group**

60 Equinor, Annual Report on Form 20-F 2022

# **CONSOLIDATED STATEMENT OF INCOME**

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Revenues | 7 | 149,004 | 88,744 | 45,753 |
| Net income/(loss) from equity accounted investments | 15 | 620 | 259 | 53 |
| Other income | 6 | 1,182 | 1,921 | 12 |
| Total revenues and other income | 7 | 150,806 | 90,924 | 45,818 |
| Purchases [net of inventory variation] |  | (53,806) | (35,160) | (20,986) |
| Operating expenses |  | (9,608) | (8,598) | (8,831) |
| Selling, general and administrative expenses |  | (986) | (780) | (706) |
| Depreciation, amortisation and net impairment losses | 12, 13 | (6,391) | (11,719) | (15,235) |
| Exploration expenses | 13 | (1,205) | (1,004) | (3,483) |
| Total operating expenses | 9 | (71,995) | (57,261) | (49,241) |
| Net operating income/(loss) | 5 | 78,811 | 33,663 | (3,423) |
| Interest expenses and other finance expenses |  | (1,379) | (1,223) | (1,392) |
| Other financial items |  | 1,172 | (857) | 556 |
| Net financial items | 10 | (207) | (2,080) | (836) |
| Income/(loss) before tax |  | 78,604 | 31,583 | (4,259) |
| Income tax | 11 | (49,861) | (23,007) | (1,237) |
| Net income/(loss) |  | 28,744 | 8,576 | (5,496) |
| Attributable to equity holders of the company |  | 28,746 | 8,563 | (5,510) |
| Attributable to non-controlling interests |  | (3) | 14 | 14 |
| Basic earnings per share (in USD) |  | 9.06 | 2.64 | (1.69) |
| Diluted earnings per share (in USD) |  | 9.03 | 2.63 | (1.69) |
| Weighted average number of ordinary shares outstanding (in millions) |  | 3,174 | 3,245 | 3,269 |
| Weighted average number of ordinary shares outstanding, diluted (in millions) |  | 3,183 | 3,254 | 3,277 |

Equinor, Annual Report on Form 20-F 2022 61

# **CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME**

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Net income/(loss) |  | 28,744 | 8,576 | (5,496) |
| Actuarial gains/(losses) on defined benefit pension plans |  | 461 | 147 | (106) |
| Income tax effect on income and expenses recognised in OCI 1) |  | (105) | (35) | 19 |
| Items that will not be reclassified to the Consolidated statement of income | 22 | 356 | 111 | (87) |
| Foreign currency translation effects |  | (3,609) | (1,052) | 1,064 |
| Share of OCI from equity accounted investments |  | 424 | 0 | 0 |
| Items that may subsequently be reclassified to the Consolidated statement of income |  | (3,186) | (1,052) | 1,064 |
| Other comprehensive income/(loss) |  | (2,829) | (940) | 977 |
| Total comprehensive income/(loss) |  | 25,914 | 7,636 | (4,519) |
| Attributable to the equity holders of the company |  | 25,917 | 7,622 | (4,533) |
| Attributable to non-controlling interests |  | (3) | 14 | 14 |

1) Other Comprehensive Income (OCI).

62 Equinor, Annual Report on Form 20-F 2022

# **CONSOLIDATED BALANCE SHEET**

| (in USD million) | Note | At 31 December |  |
| --- | --- | --- | --- |
|  |  | 2022 | 2021 |
| ASSETS |  |  |  |
| Property, plant and equipment | 12 | 56,498 | 62,075 |
| Intangible assets | 13 | 5,158 | 6,452 |
| Equity accounted investments | 15 | 2,758 | 2,686 |
| Deferred tax assets | 11 | 8,732 | 6,259 |
| Pension assets | 22 | 1,219 | 1,449 |
| Derivative financial instruments | 28 | 691 | 1,265 |
| Financial investments | 16 | 2,733 | 3,346 |
| Prepayments and financial receivables | 16 | 2,063 | 1,087 |
| Total non-current assets |  | 79,851 | 84,618 |
| Inventories | 17 | 5,205 | 3,395 |
| Trade and other receivables 1) | 18 | 22,452 | 17,927 |
| Derivative financial instruments | 28 | 4,039 | 5,131 |
| Financial investments | 16 | 29,876 | 21,246 |
| Cash and cash equivalents 2) | 19 | 15,579 | 14,126 |
| Total current assets |  | 77,152 | 61,826 |
| Assets classified as held for sale | 6 | 1,018 | 676 |
| Total assets |  | 158,021 | 147,120 |
| EQUITY AND LIABILITIES |  |  |  |
| Shareholders' equity |  | 53,988 | 39,010 |
| Non-controlling interests |  | 1 | 14 |
| Total equity | 20 | 53,989 | 39,024 |
| Finance debt | 21 | 24,141 | 27,404 |
| Lease liabilities | 25 | 2,409 | 2,449 |
| Deferred tax liabilities | 11 | 11,996 | 14,037 |
| Pension liabilities | 22 | 3,671 | 4,403 |
| Provisions and other liabilities | 23 | 15,633 | 19,899 |
| Derivative financial instruments | 28 | 2,376 | 767 |
| Total non-current liabilities |  | 60,226 | 68,959 |
| Trade, other payables and provisions | 24 | 13,352 | 14,310 |
| Current tax payable |  | 17,655 | 13,119 |
| Finance debt | 21 | 4,359 | 5,273 |
| Lease liabilities | 25 | 1,258 | 1,113 |
| Dividends payable | 20 | 2,808 | 582 |
| Derivative financial instruments | 28 | 4,106 | 4,609 |
| Total current liabilities |  | 43,539 | 39,005 |
| Liabilities directly associated with the assets classified as held for sale | 6 | 268 | 132 |
| Total liabilities |  | 104,032 | 108,096 |
| Total equity and liabilities |  | 158,021 | 147,120 |

Equinor, Annual Report on Form 20-F 2022 63

1) Of which Trade receivables of USD 17,334 million in 2022 and USD 15,237 million in 2021.
2) Includes collateral deposits of USD 6,128 million for 2022 related to certain requirements set out by exchanges where Equinor is participating. The corresponding figure for 2021 is USD 2,069 million.

64 Equinor, Annual Report on Form 20-F 2022

# **CONSOLIDATED STATEMENT OF CHANGES IN EQUITY**

| (in USD million) | Share capital | Additional paid-in capital | Retained earnings | Foreign currency translation reserve | OCI from equity accounted investments 1) | Shareholders' equity | Non-controlling interests | Total equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| At 1 January 2020 | 1,185 | 7,732 | 37,481 | (5,258) | 0 | 41,139 | 20 | 41,159 |
| Net income/(loss) |  |  | (5,510) |  |  | (5,510) | 14 | (5,496) |
| Other comprehensive income/(loss) |  |  | (87) | 1,064 |  | 977 |  | 977 |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | (4,519) |
| Dividends |  |  | (1,833) |  |  | (1,833) |  | (1,833) |
| Share buy-back | (21) | (869) |  |  |  | (890) |  | (890) |
| Other equity transactions |  | (11) |  |  |  | (11) | (15) | (25) |
| At 31 December 2020 | 1,164 | 6,852 | 30,050 | (4,194) | 0 | 33,873 | 19 | 33,892 |
| Net income/(loss) |  |  | 8,563 |  |  | 8,563 | 14 | 8,576 |
| Other comprehensive income/(loss) |  |  | 111 | (1,052) |  | (940) |  | (940) |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | 7,636 |
| Dividends |  |  | (2,041) |  |  | (2,041) |  | (2,041) |
| Share buy-back |  | (429) |  |  |  | (429) |  | (429) |
| Other equity transactions |  | (15) |  |  |  | (15) | (18) | (33) |
| At 31 December 2021 | 1,164 | 6,408 | 36,683 | (5,245) | 0 | 39,010 | 14 | 39,024 |
| Net income/(loss) |  |  | 28,746 |  |  | 28,746 | (3) | 28,744 |
| Other comprehensive income/(loss) |  |  | 356 | (3,609) | 424 | (2,829) |  | (2,829) |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | 25,914 |
| Dividends |  |  | (7,549) |  |  | (7,549) |  | (7,549) |
| Share buy-back | (22) | (3,358) |  |  |  | (3,380) |  | (3,380) |
| Other equity transactions |  | (10) |  |  |  | (10) | (10) | (20) |
| At 31 December 2022 | 1,142 | 3,041 | 58,236 | (8,855) | 424 | 53,988 | 1 | 53,989 |

1) OCI items from equity accounted investments that may subsequently be reclassified to the Consolidated statement of income, are presented as part of OCI from equity accounted investments. OCI items that will not be reclassified to the Consolidated statements of income will be included in retained earnings.

Please refer to note 20 Shareholders' equity and dividends for more details.

Equinor, Annual Report on Form 20-F 2022 65

## CONSOLIDATED STATEMENT OF CASH FLOWS

| (in USD million) | Note | 2022 | Full year 2021 | 2020 |
| --- | --- | --- | --- | --- |
| Income/(loss) before tax |  | 78,604 | 31,583 | (4,259) |
| Depreciation, amortisation and net impairment | 12, 13 | 6,391 | 11,719 | 15,235 |
| Exploration expenditures written off | 13 | 342 | 171 | 2,506 |
| (Gains)/losses on foreign currency transactions and balances |  | (2,088) | (47) | 646 |
| (Gains)/losses on sale of assets and businesses | 6 | (823) | (1,519) | 18 |
| (Increase)/decrease in other items related to operating activities 1) |  | 468 | 106 | 918 |
| (Increase)/decrease in net derivative financial instruments | 28 | 1,062 | 539 | (451) |
| Interest received |  | 399 | 96 | 162 |
| Interest paid |  | (747) | (698) | (730) |
| Cash flows provided by operating activities before taxes paid and working capital items |  | 83,608 | 41,950 | 14,045 |
| Taxes paid |  | (43,856) | (8,588) | (3,134) |
| (Increase)/decrease in working capital |  | (4,616) | (4,546) | (524) |
| Cash flows provided by operating activities |  | 35,136 | 28,816 | 10,386 |
| Capital expenditures and investments | 6 | (8,611) | (8,151) | (8,476) |
| (Increase)/decrease in financial investments |  | (10,089) | (9,951) | (3,703) |
| (Increase)/decrease in derivative financial instruments |  | 1,894 | (1) | (620) |
| (Increase)/decrease in other interest-bearing items |  | (23) | 28 | 202 |
| Proceeds from sale of assets and businesses | 6 | 966 | 1,864 | 505 |
| Cash flows provided by/(used in) investing activities |  | (15,863) | (16,211) | (12,092) |
| New finance debt | 21 | 0 | 0 | 8,347 |
| Repayment of finance debt | 21 | (250) | (2,675) | (2,055) |
| Repayment of lease liabilities | 25 | (1,366) | (1,238) | (1,277) |
| Dividends paid | 20 | (5,380) | (1,797) | (2,330) |
| Share buy-back | 20 | (3,315) | (321) | (1,059) |
| Net current finance debt and other financing activities |  | (5,102) | 1,195 | 1,365 |
| Cash flows provided by/(used in) financing activities | 21 | (15,414) | (4,836) | 2,991 |
| Net increase/(decrease) in cash and cash equivalents |  | 3,860 | 7,768 | 1,285 |
| Foreign currency translation effects |  | (2,268) | (538) | 294 |
| Cash and cash equivalents at the beginning of the period (net of overdraft) | 19 | 13,987 | 6,757 | 5,177 |
| Cash and cash equivalents at the end of the period (net of overdraft) 2) | 19 | 15,579 | 13,987 | 6,757 |

1) The line item mainly consists of provisions, unrealised gains and losses and items of income or expense for which the cash effects are included in increase/(decrease) in working capital within operating cash flow and investing cash flows. The line item includes a fair value loss related to inventory of USD 672 million at 31 December 2022. Amount for 2021 includes MUSD (822) redetermination settlement for the Agbami field.

2) At 31 December 2022 cash and cash equivalents net overdraft was zero. At 31 December 2021 cash and cash equivalents included a net overdraft of USD 140 million and at 31 December 2020 net overdraft were zero.

Interest paid in cash flows provided by operating activities excludes capitalised interest of USD 382 million, USD 334 million, and USD 308 million for the years ending 31 December 2022, 2021 and 2020, respectively. Capitalised interest is included in Capital expenditures and investments in cash flows used in investing activities. Total interest paid amounts to USD 1,129 million, USD 1,032 million, and USD 1,038 million for the years 2022, 2021 and 2020, respectively.

66 Equinor, Annual Report on Form 20-F 2022

Notes to the Consolidated financial statements

# Table of contents for notes to the financial statements

1 Organisation
2 Accounting policies
3 Consequences of initiatives to limit climate changes
4 Financial risk and capital management
5 Segments
6 Acquisitions and disposals
7 Total revenues and other income
8 Salaries and personnel expenses
9 Auditor's remuneration and Research and development expenditures
10 Financial items
11 Income taxes
12 Property, plant and equipment
13 Intangible assets
14 Impairments
15 Joint arrangements and associates
16 Financial investments and financial receivables
17 Inventories
18 Trade and other receivables
19 Cash and cash equivalents
20 Shareholders' equity and dividends
21 Finance debt
22 Pensions
23 Provisions and other liabilities
24 Trade, other payables and provisions
25 Leases
26 Other commitments, contingent liabilities and contingent assets
27 Related parties
28 Financial instruments and fair value measurement
29 Subsequent events

Equinor, Annual Report on Form 20-F 2022 67

# 1 Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway.

Equinor's objective is to develop, produce and market various forms of energy and derived products and services, as well as other business. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy AS, a 100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the Norwegian continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2022 were approved for issuance by the board of directors on 14 March 2023 and is subject to approval by the annual general meeting on 10 May 2023.

## 2 Accounting 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 (IFRS) as adopted by the European Union (EU) and with IFRSs as issued by the International Accounting Standards Board (IASB), interpretations issued by IASB and the additional requirements of the Norwegian Accounting Act, effective on 31 December 2022.

### Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting policies described in these Consolidated financial statements have been applied consistently to all periods presented, except as otherwise noted in the disclosure related to the impact of policy changes following the adoption of new accounting standards and voluntary changes in 2022.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

Operational expenses in the Consolidated statement of income are presented as a combination of function and nature in conformity with industry practice. Purchases [net of inventory variation] and Depreciation, amortisation and net impairment losses are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc. are presented by their nature in the notes to the Consolidated financial statements.

### Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor's interests in jointly controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses arising from Equinor's internal transactions, have been eliminated.

The Consolidated financial statements include all entities controlled by Equinor ASA. Entities are determined to be controlled by Equinor when Equinor has power over the entity, ability to use that power to affect the entity's returns, and exposure to, or rights to, variable returns from its involvement with the entity. The financial statements of the subsidiaries are included in the Consolidated financial statements from the date control is achieved until the date control ceases.

Non-controlling interests are presented separately within equity in the Consolidated balance sheet.

### Foreign currency translation

In preparing the financial statements of the individual entities in Equinor, transactions in currencies other than the functional currency are translated at the foreign exchange rate at the dates of the transactions. 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 Consolidated statement of income as foreign exchange gains or losses within Net financial items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as part of the change in the underlying estimate and included within the relevant operating expense or income tax line-items depending on the nature of the provision. Non-monetary assets measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transactions.

68 Equinor, Annual Report on Form 20-F 2022

When preparing the Consolidated financial statements, the assets and liabilities of entities with functional currencies other than the Group's presentation currency 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 differences arising on translation from functional currency to USD are recognised separately in the Consolidated statement of comprehensive income within Other comprehensive income (OCI). The cumulative amount of such translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of the gain or loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional currencies than the parent company, and for which settlement is neither planned nor likely in the foreseeable future, are considered part of the parent company's net investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial statements.

#### **Statement of cash flows**

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss) before tax is adjusted for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items of income or expense for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments, Increase/decrease in derivative financial instruments, and Increase/decrease in other interest-bearing items are all presented net as part of Investing activities, either because the transactions are financial investments and turnover is quick, the amounts are large, and the maturities are short, or due to materiality.

#### **Accounting judgement and key sources of estimation uncertainty**

The preparation of the Consolidated financial statements requires management to make accounting judgements, estimates and assumptions affecting reported amounts of assets, liabilities, income and expenses.

The main areas where Equinor has made significant judgements when applying the accounting policies and that have the most material effect on the amounts recognised in the Consolidated financial statements have been described in the following notes:

- 6 - Acquisitions and disposals
- 7 - Total revenues and other income
- 25 - Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models, while the assumptions on which the estimates are based rely on historical experience, external sources of information and various other factors that management assesses to be reasonable under the current conditions and circumstances. These estimates and assumptions form the basis of making the judgements about carrying values of assets and liabilities when these are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity prices, foreign currency exchange rates, market risk premiums and interest rates as well as financial instruments with fair values derived from changes in these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to several of these economic assumptions. In addition, Equinor's results are influenced by the level of production, which in the short term may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty are described in each of the following notes:

- 3 - Consequences of initiatives to limit climate changes
- 11 - Income taxes
- 12 - Property, plant and equipment
- 13 - Intangible assets
- 14 - Impairments
- 23 - Provisions and other liabilities
- 26 - Other commitments, contingent liabilities and contingent assets

#### **Changes in accounting policies in the current period**

##### **Amendments to IAS 1 and IFRS practice statement 2: Replacing Significant accounting policies with Material accounting policies**

IASB has issued amendments to IAS 1 Presentation of financial statements and IFRS Practice Statement 2 Making Materiality Judgements. These amendments are intended to help entities apply materiality judgements to accounting policy disclosures and provide additional guidance and illustrative examples. The amendments are effective for annual periods beginning on or after 1

Equinor, Annual Report on Form 20-F 2022 69

January 2023. Earlier application is permitted, and Equinor has applied the amendments with effect from these Consolidated financial statements.

Accounting policy information should be considered material if its disclosure can reasonably be expected to influence user decisions and therefore is needed to understand other information provided about material transactions, other events, or conditions in the financial statements. IASB has acknowledged that standardised information, or information that only duplicates or summarises the requirements of the IFRS -standards, is generally less useful than entity-specific accounting policy information. Even though such information could be material in specific circumstances, Equinor has focused the accounting policy disclosures on Equinor-specific policy choices, disclosing only those accounting policies that are considered necessary to understand other material information in the Consolidated financial statements of Equinor.

#### **Other standards, amendments to standards and interpretations of standards, effective as of 1 January 2022**

Other amendments to standards or interpretations of standards effective as of 1 January 2022 and adopted by Equinor, were not material to Equinor's Consolidated financial statements upon adoption.

Other standards, amendments to standards, and interpretations of standards, issued but not yet effective, are either not expected to materially impact, or are not expected to be relevant to, Equinor's Consolidated financial statements upon adoption.

### 3 Consequences of initiatives to limit climate changes

#### **Accounting policies - cost of CO$_{2}$ quotas**

Purchased CO$_{2}$ quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses as incurred in line with emissions. Accruals for CO$_{2}$ quotas required to cover emissions to date are valued at market price and reflected as a current liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas are acquired in order to cover own emissions and may be kept to cover subsequent years' emissions. Quotas purchased and held for trading purposes are carried in the balance sheet at fair value, and the changes in fair value are reflected in the Consolidated statement of income on the line-item Other income.

Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought, paid and expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the balance sheet.

#### **Equinor's strategy and ambitions**

Equinor's ambition is to continue supplying society with energy with lower emissions over time, to be a leading company in the energy transition and becoming a net-zero company by 2050, including emissions from production through to final energy consumption. Equinor's strategy is to create value as a leader in the energy transition by pursuing high-value growth in renewables and new market opportunities in low carbon solutions at the same time as we optimise our oil and gas portfolio. This strategy covers three strategically important and interconnected areas:

- • **Oil and gas.** Equinor's main focus is optimising our resources, cutting emissions in our operations and identifying new procedures that enable us to continue supplying energy that the world needs with a low footprint.
- • **Renewables.** There is an apparent global demand for more renewable energy, and Equinor's investments in offshore wind and solar are growing exponentially to meet this demand.
- • **Low carbon solutions.** Equinor will continue its investments in new technologies and value chains for producing lower emissions by replacing the use of carbon when generating new energy or capturing and removing the greenhouse gases before they reach the atmosphere. Even though carbon capture and storage (CCS) has existed as a technology for many decades, it takes time to develop the value chains and carbon capture and storage has yet to be implemented as a revenue-generating service to the market on a full scale.

#### **Risks arising from climate change and the transition to a lower carbon economy**

Policy, legal, regulatory, market and technology developments related to the issue of climate change, can affect our business plans and financial performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery and outcomes associated with Equinor's strategy. Equinor's long-term plans have to consider how the global energy markets may develop in the long term. Potential scenarios of future changes in demand for our products (oil, gas and power in key markets) are analysed, including World Energy Outlook 2022 (WEO) scenarios that illustrate the wide range of possible demand for different energy sources, including fossil fuels, nuclear and renewables. Commodity price sensitivities are presented in a table below and in note 14 Impairments.

70 Equinor, Annual Report on Form 20-F 2022

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness of the company's business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates to the exposure of our assets to climate-related perils in different warming scenarios. Equinor's climate roadmap and all of our climate-related ambitions are a response to these challenges and risks related to climate change.

- • Stricter climate laws, regulations and policies as well as adverse litigation outcomes could adversely impact Equinor's financial results and outlook, including the value of its assets. This might be directly through regulatory changes towards energy systems free of unabated fossil fuels, changes in taxation, increased costs, access to opportunities, or indirectly through changes in consumer behaviour or technology developments.
- • Changing demand for renewable energy and low-carbon technologies, and innovation and technology changes supporting their cost-competitive development, represent both threats and opportunities for Equinor. We assess and manage climate-related risks related to technology development and implementation across our portfolio, as well as recognising risks related to competing or emerging technologies elsewhere. Examples of relevant technologies within our portfolio include carbon capture and storage (CCS), blue/green hydrogen, battery technology, solar and wind renewable energy, nuclear fusion, low CO$_{2}$ intensity solutions, improvements in methane emissions and application of renewables in oil and gas production.
- • Market development and our ability to reduce costs and capitalize on technology improvements are important but unpredictable risk factors. Multiple factors in the energy transition contribute to uncertainty in future energy price assumptions, and changes in investor and societal sentiment can affect our access to capital markets, attractiveness for investors, and potentially restrict access to finance or increase financing costs.
- • Strong competition for assets, changing levels of policy support, and different commercial/contractual models may lead to diminishing returns within the renewable and low carbon industries and hinder Equinor ambitions. These investments may be exposed to interest rate risk and inflation risk.
- • Changes in physical climate parameters could impact Equinor through increased costs or incidents affecting Equinor's operations. Examples of acute physical parameters that could impact Equinor's facility design and operations include increasing frequency and severity of extreme weather events such as extreme windspeeds, wave-heights or flooding. Examples of chronic physical climate parameters include limitations in freshwater availability, a pattern with generally increased wind speeds and as most of Equinor's physical assets are located offshore, a key potential chronic physical climate impact is expected to be rising sea level accompanied with increased wave heights. As we continue to build our renewable portfolio, unexpected changes in meteorological parameters, such as average wind speed or changes in wind patterns and cloud cover that affect renewable energy production will also be important factors to consider. Physical risk factors are mitigated through technical and engineering functions in design, operations and maintenance, with due consideration of how the external physical environment may be changing. However, there is uncertainty regarding the magnitude of impact and time horizon for the occurrence of physical impacts of climate change, which leads to uncertainty regarding the potential impact for Equinor.

#### **Impact on Equinor's financial statements**

##### **CO$_{2}$-cost and EU ETS carbon credits**

Our oil & gas operations in Europe are part of the EU Emission Trading Scheme (EU ETS). Equinor buys EU ETS allowances (quotas or carbon credits) for the emissions related to our oil & gas production and processing. Currently we receive a share of free quotas according to the EU ETS regulation. The share of free quotas is expected to be significantly reduced in the future.

Total expensed CO$_{2}$ cost related to emissions and purchase of CO$_{2}$ quotas in Equinor related to activities resulting in GHG emissions (Equinor's share of the operating licences in addition to our land-based facilities) amounts to USD 510 million in 2022, USD 428 million in 2021, and USD 268 million in 2020. A large portion of the cost of CO$_{2}$ in Equinor is related to the purchase of EU ETS quotas. The table below shows an analysis of number of quotas utilised by Equinor's operated licences and land-based facilities subject to the requirements under EU ETS:

| Number of EU ETS quotas | 2022 | 2021 |
| --- | --- | --- |
| Opening balance at 1 January | 11,026,286 | 11,027,242 |
| Allocated free quotas | 3,697,089 | 3,560,286 |
| Purchased quotas on the ETS market | 5,985,000 | 7,605,265 |
| Sold quotas on the ETS market | 0 | (135,177) |
| Settled quotas (offset against emissions) | (9,925,999) | (11,031,330) |
| Closing balance at 31 December | 10,782,376 | 11,026,286 |

Equinor, Annual Report on Form 20-F 2022 71

#### Investments in renewables

The energy transition creates many new business opportunities, primarily related to further development of Equinor's renewables business and within CCS. Driven by the energy transition and an increasing demand for electricity from renewable energy sources, Equinor continues to build its renewable business. We focus on offshore wind and also explore opportunities within onshore renewables and integrated power market solutions. At present, Equinor's renewable portfolio spans multiple continents and technologies-onshore and offshore-and different ownership structures:

- In operation: Mainly offshore wind in UK and Germany and solar farms in Brazil and Argentina
- In construction: The most significant projects are the Dogger Bank projects in UK (SSE operated) and Hywind Tampen in Norway in addition to construction of solar plants in Poland
- Additional capacity has secured offtake, mainly offshore wind projects in the US and Poland
- Accessed pipeline capacity (currently without offtake). This includes offshore wind in the US and South Korea and solar and onshore wind projects in Brazil and Poland
- Equinor also holds a 13.1% shareholding in Scatec ASA, a leading renewable power producer, delivering affordable and clean energy worldwide

Equinor's investments in renewables and low carbon solutions projects are included as Additions to PP&E, intangibles and equity accounted investments in the REN-segment in note 5 Segments and amounts to USD 298 million in 2022 and USD 457 million in 2021. Equinor's ambition is to become a global offshore wind major and an industry leader in floating offshore wind, drawing on our extensive offshore experience to drive the industry forward. In addition, Equinor explores opportunities within onshore renewables.

#### Investments in CCS

Through our activities within CCS, we are building capabilities and a competitive position for future business opportunities and a new revenue stream related to disposal of CO2 from customers such as from waste incineration and cement production and would also be basis for solutions for decarbonised hydrogen as an energy carrier which would also be a flexible solution to backup intermittent renewables in Europe. Equinor is making significant steps to industrialise CCS and we are already involved in the Northern Lights project in Norway providing CO2 transport and storage solutions (in partnership with Shell and TotalEnergies). It represents the start of commercial CCS in Europe and is on track to demonstrate that CCS is a valid decarbonisation solution for important industry sectors. Equinor has during 2022 contributed with USD 36 million to the company as capital increases (USD 21 million in 2021).

#### Research and development activities (R&D)

In addition to the beforementioned significant financial effects, Equinor is also involved in several activities within R&D. Several of these activities are related to optimising our oil and gas activities and cutting emissions from our activities as well as developing new business opportunities within renewables or low carbon solutions. Financial effects from Equinor's total R&D activities can be located in note 9 Auditor's remuneration and Research and development expenditures (expensed R&D) and in note 12 Property, Plant & Equipment (capitalised R&D).

#### Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of the economic assumptions in our estimations of future cash flows. The results of the development of such initiatives, and the degree to which Equinor's operations will be affected by them, are sources of uncertainty. Estimating global energy demand and commodity prices towards 2050 is a challenging task, as this comprises assessing the future development in supply and demand, technology change, taxation, tax on emissions, production limits and other important factors. The assumptions may change over time, which could materialise in different outcomes from the current projected scenarios. This could result in significant changes to accounting estimates, such as economic useful life (affects depreciation period and timing of asset retirement obligations), value-in-use calculations (affects impairment assessments) and measurement of deferred tax assets.

#### Commodity prices

Equinor's commodity price assumptions applied in value-in-use impairment testing, are set in accordance with requirements in IFRS and based on management's best estimate of the development of relevant current circumstances and the likely future development of such circumstances. This price-set is currently not equal to a price-set required to achieve the goals in the Net Zero Emissions (NZE) by 2050 Scenario, nor a price-set in accordance with the Announced Pledges Scenario as defined by the International Energy Agency (IEA). A future change in the trajectory of how the world acts with regards to implementing actions in accordance with the goals in the Paris agreement could, depending on the detailed characteristics of such a trajectory, have a negative impact on the valuation of Equinor's property, plant and equipment in total. A calculation of a possible effect of using the assumed commodity prices and CO2 prices in a 1.5°C compatible NZE by 2050 Scenario as estimated by IEA could result in an impairment of upstream production assets and intangible assets around USD 4 billion before tax, see the sensitivity table below.

Similarly, we have calculated the possible effect of using prices according to the Announced Pledges Scenario, a scenario which is based on all of the climate-related commitments announced by governments around the Globe. Using this scenario, the world is expected to reach a 1.8°C increase in the year 2100, and this could result in an impairment of less than USD 0.5 billion before tax using the same simplified model, see the sensitivity table below.

72 Equinor, Annual Report on Form 20-F 2022

These illustrative impairment sensitivity calculations are based on a simplified model and limitations described in note 14 Impairments. However, when preparing these illustrative scenario sensitivities, we have linearly interpolated between current prices and the price set disclosed in the table below for both the NZE by 2050 scenario and the Announced pledges scenario. Applying this simplified approach, the illustrative potential impairments are significantly lower than the amount disclosed in note 14 Impairments where an immediate 30% reduction in commodity prices has been applied, also considering a somewhat declining production profile, concentrated before the year 2030 for our producing and sanctioned development projects and the effects of discounting.

#### Cost of CO$_{2}$

The EU ETS price has increased significantly from 25 EUR/tonne in 2020. The average cost of EU ETS allowances was 81 EUR/tonne in 2022 (54 EUR/tonne in 2021). The price is expected to remain high, in the region of 80 EUR/tonne for the next couple of years. Then the price is expected to be 105 EUR/tonne in 2040 and thereafter increasing to 130 EUR/tonne in 2050. As such, Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical range than today, and a global tax on CO$_{2}$ emissions will have a negative impact on the valuation of Equinor's oil and gas assets. Currently, Equinor pays CO$_{2}$ fees in Norway, the UK, Germany and Nigeria. Norway's Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO$_{2}$ tax (the total of EU ETS + Norwegian CO$_{2}$ tax) in Norway to 2,000 NOK/tonne in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor's response to this risk is evaluation of carbon intensity on both project and portfolio level in our investment and divestment decisions. We have also introduced an internal carbon price, currently set at 58 USD/tonne and increasing towards 100 USD/tonne by the year 2030 and staying flat thereafter (in countries with higher carbon costs, we use the country specific cost expectations), to be used in our investment decisions. This cost-scenario is uncertain, but this extra cost serves as a placeholder for possible future CO$_{2}$ pricing systems, making sure our assets are financially robust in such a scenario. As such, climate considerations are a part of the investment decisions following Equinor's strategy and commitments to the energy transition.

Climate considerations are also included in the impairment calculations directly by estimating the CO$_{2}$ taxes in the cash flows. Indirectly, the expected effect of climate change is included in the estimated commodity prices where supply and demand are considered. The CO$_{2}$ prices also have effect on the estimated production profiles and economic cut-off of the projects. Impairment calculations are based on best estimate assumptions. To reflect that carbon will have a cost for all our assets, the current best estimate is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where Equinor has not established specific estimates.

#### Sensitivity table

In this table, we have presented some relevant prices and variables and the anticipated future development compared to our managements' best estimate and an illustrative potential impairment effect given these scenarios. The scenario price-sets have been retrieved from IEA's report, World Energy Outlook 2022. Prices are adjusted for inflation and presented in Real 2022. USD 2 per bbl of transportation cost has been added to the brent-prices in the scenarios for comparability with our current best estimate:

|  | Management's price assumptions 1) | NZE by 2050 scenario | Announced Pledged Scenario |
| --- | --- | --- | --- |
| Brent blend, 2030 | 75 USD/bbl | 40 USD/bbl | 71 USD/bbl |
| Brent blend, 2040 | 70 USD/bbl | 34 USD/bbl | 69 USD/bbl |
| Brent blend, 2050 | 65 USD/bbl | 28 USD/bbl | 67 USD/bbl |
| TTF, 2030 | 9.5 USD/MMBtu | 5.0 USD/MMBtu | 8.5 USD/MMBtu |
| TTF, 2040 | 9.0 USD/MMBtu | 4.5 USD/MMBtu | 7.7 USD/MMBtu |
| TTF, 2050 | 9.0 USD/MMBtu | 4.1 USD/MMBtu | 6.8 USD/MMBtu |
| EU ETS 2), 3) , 2030 | 94 USD/tCO 2 | 152 USD/tCO 2 | 146 USD/tCO 2 |
| EU ETS 2), 3) , 2040 | 124 USD/tCO 2 | 222 USD/tCO 2 | 189 USD/tCO 2 |
| EU ETS 2), 3) , 2050 | 153 USD/tCO 2 | 271 USD/tCO 2 | 216 USD/tCO 2 |
| Illustrative potential impairment (USD) |  | ~ 4.0 billion | < 0.5 billion |

1) Management's future commodity price assumptions applied when estimating value in use, see note 14 Impairments

2) Scenarios: Price of CO$_{2}$ quotas in advanced economies with net zero pledges, not including any other CO$_{2}$ taxes

3) EU ETS price assumptions have been translated from EUR to USD using Equinor's assumptions for currency rates, EUR/USD = 1,176

#### Robustness of our upstream oil & gas portfolio, and risk of stranded assets

The transition to renewable energy, technological development and the expected reduction in global demand for carbon-based energy, may have a negative impact on the future profitability of investments in upstream oil and gas assets, in particular assets with long estimated useful lives, projects in an early development phase and undeveloped assets controlled by Equinor. Equinor uses scenario analysis to outline different possible energy futures and several of these imply lower oil and natural gas prices. If they decrease, the oil and gas revenues will also decrease, and potentially reduce the economic lifetime of some assets. Equinor seeks to mitigate this risk by focusing on improving the resilience of the existing upstream portfolio, maximising the efficiency of our

Equinor, Annual Report on Form 20-F 2022 73

infrastructure on the Norwegian Continental Shelf and optimising our high-quality international portfolio. Equinor will continue to add high value barrels to the portfolio through exploration and increased recovery, and NCS cash flow and value creation are expected to remain high also beyond 2030. The NCS project portfolio is very robust against potential low oil and gas prices and actions are in place to both maintain cost discipline across the company and ensure robustness of the non-sanctioned oil and natural gas projects.

Equinor will also continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to minimise emissions and maximise value. During the transition, Equinor anticipates allocating a smaller share of our capital expenditure to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching our 50 percent reduction ambition for operated scope 1 and 2 emissions will require a focused and coordinated effort across the company on executing and maturing abatement projects, improving energy efficiency of offshore and onshore assets, developing new technologies, and strengthening resilience in the portfolio. The abatement projects primarily include electrification of offshore assets in Norway, mainly by power from shore but also including innovations such as Hywind Tampen, our floating wind farm powering offshore oil and gas platforms. In combination with our focus on renewables and CCS, these abatement projects are expected to reduce Equinor's emissions sufficiently to support our mid-term ambitions. As such, Equinor's plans to become a net-zero company by 2050 have currently not resulted in the identification of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market and strategic considerations. Provided that the economic assumptions would deteriorate to such an extent that undeveloped assets controlled by Equinor should not materialize, assets at risk mainly comprise the intangible assets Oil and Gas prospects, signature bonuses and the capitalised exploration costs, with a total carrying value of USD 3,634 million. See note 13 Intangible assets for more information regarding Equinor's intangible assets.

#### Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result of Equinor's plans to become a net-zero company by 2050. But, if the business cases of Equinor's oil and gas producing assets in the future should change materially due to governmental initiatives to limit climate change, this could affect the timing of cessation of our assets and also our asset retirement obligations. A shorter production period, accelerating the time for when assets need to be removed after ended production, will increase the carrying value of the liability. To illustrate the potential financial effect of earlier removal, we have estimated the effect of performing removal five years earlier than currently scheduled to an increase in the liability of around USD 1 billion. See note 23 Provisions and other liabilities for more information regarding Equinor's ARO.

## 4 Financial risk and capital management

### General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including commodity price risk, currency risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor's approach to risk management includes assessing and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio level between the most important market risks and the natural hedges inherent in Equinor's portfolio. This approach allows Equinor to reduce the number of risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is headed by the chief financial officer, is responsible for Equinor's Enterprise Risk Management and for proposing appropriate measures to adjust risk at the corporate level. This includes assessing Equinor's financial risk policies.

### Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity markets and is exposed to market risks including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that can affect the revenues and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with a focus on achieving the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures are managed at the corporate level, while short-term exposures are managed according to trading strategies and mandates. Mandates in the trading organisations within crude oil, refined products, natural gas, and electricity are relatively restricted compared to the total market risk of Equinor.

#### Commodity price risk

Equinor's most important long-term commodity risk (crude oil and natural gas) is related to future market prices as Equinor's risk policy is to be exposed to both upside and downside price movements. In the longer term, also power price risk is to a large extent expected to contribute to Equinor's commodity price risk portfolio. To manage short-term commodity risk, Equinor enters into commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market swaps and contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor's bilateral gas sales portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-Continental Exchange (ICE) in London, the New York Mercantile Exchange (NYMEX), the OTC Brent market, and crude and refined products swap markets. The term of natural gas, power, and emission derivatives is usually three years or less, and they are mainly

74 Equinor, Annual Report on Form 20-F 2022

OTC physical forwards and options, NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX and ICE.

The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative contracts. Equinor's assets and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded instruments, including embedded derivatives that have been bifurcated and recognised at fair value in the Consolidated balance sheet.

Price risk sensitivities at the end of 2022 and 2021 at 30% are assumed to represent a reasonably possible change based on the duration of the derivatives. Since none of the derivative financial instruments included in the table below are part of hedging relationships, any changes in the fair value would be recognised in the Consolidated statement of income.

| Commodity price sensitivity (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 - 30% | + 30% | 2021 - 30% | + 30% |
| Crude oil and refined products net gains/(losses) | 666 | (666) | 735 | (735) |
| Natural gas, electricity and CO2 net gains/(losses) | (3) | 140 | 227 | (141) |

#### 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.

The following currency risk sensitivity for financial instruments has been calculated, by assuming a 12% reasonable possible change in the most relevant foreign currency exchange rates that impact Equinor's financial accounts, based on balances at 31 December 2022. As of 31 December 2021, a change of 10% in the most relevant foreign currency exchange rates was viewed as a reasonable possible change. With reference to the table below, an increase in the foreign currency 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 foreign currency exchange rates would impact the Consolidated statement of income.

| Currency risk sensitivity (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 - 12% | + 12% | 2021 - 10% | + 10% |
| USD net gains/(losses) | (1,497) | 1,497 | (1,789) | 1,789 |
| NOK net gains/(losses) | 1,583 | (1,583) | 2,144 | (2,144) |

#### Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these bonds are converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond portfolio based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed/floating mix on interest rate exposure may vary from time to time. For more detailed information about Equinor's long-term debt portfolio see note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of 1.2 percentage points as a reasonable possible change in interest rates at the end of 2022. In 2021, a change of 0.8 percentage points in interest rates was viewed as a reasonable possible change. A decrease in interest rates will have an estimated positive impact on net financial items in the Consolidated statement of income, while an increase in interest rates will have an estimated negative impact on net financial items in the Consolidated statement of income.

| Interest risk sensitivity (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 - 1.2 percentage points | + 1.2 percentage points | 2021 - 0.8 percentage points | + 0.8 percentage points |
| Positive/(negative) impact on net financial items | 369 | (366) | 448 | (448) |

Equinor, Annual Report on Form 20-F 2022 75

#### Equity price risk

Equinor's captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some other listed and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor is exposed to equity price risk, defined as the risk of declining equity prices, which can result in a decline in the carrying value of certain Equinor's assets recognised in the balance sheet. The equity price risk in the portfolio held by Equinor's captive insurance company is managed, with the aim of maintaining a moderate risk profile, through geographical diversification and the use of broad benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a 35% reasonable possible change in equity prices that impact Equinor's financial accounts, based on balances at 31 December 2022. At 31 December 2021, a change of 35% in equity prices was equally viewed as a reasonable possible change. The estimated gains and the estimated losses following from a change in equity prices would impact the Consolidated statement of income.

| Equity price sensitivity (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 - 35% | + 35% | 2021 - 35% | + 35% |
| Net gains/(losses) | (450) | 450 | (534) | 534 |

#### Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The purpose of liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made six times per year. Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls from counterparties.

If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Equinor raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The policy is to have a maturity profile with repayments not exceeding 5% of capital employed in any year for the nearest five years. Equinor's non-current financial liabilities have a weighted average maturity of approximately nine years. For more information about Equinor's non-current financial liabilities, see note 21 Finance debt.

Short-term funding needs will normally be covered by the USD 5.0 billion US Commercial paper programme (CP) which is backed by a revolving credit facility of USD 6.0 billion, supported by 19 core banks, maturing in 2025. The facility supports secure access to funding, supported by the best available short-term rating. As at 31 December 2022 the facility has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor's financial liabilities.

76 Equinor, Annual Report on Form 20-F 2022

| (in USD million) | At 31 December |  |  | 2021 |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 2022 Non-derivative financial liabilities | Lease liabilities | Derivative financial liabilities | Non-derivative financial liabilities | Lease liabilities | Derivative financial liabilities |
| Year 1 | 20,172 | 1,325 | 1,065 | 18,841 | 1,183 | 175 |
| Year 2 and 3 | 6,292 | 1,421 | 752 | 6,684 | 1,262 | 211 |
| Year 4 and 5 | 5,785 | 504 | 486 | 6,140 | 656 | 318 |
| Year 6 to 10 | 8,749 | 465 | 1,202 | 10,636 | 642 | 588 |
| After 10 years | 11,204 | 120 | 706 | 12,849 | 158 | 187 |
| Total specified | 52,202 | 3,835 | 4,211 | 55,150 | 3,901 | 1,479 |

#### Credit risk

Credit risk is the risk that Equinor's customers or counterparties will cause Equinor financial loss by failing to honour their obligations. Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments, derivative financial instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce or control credit risk both on a counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments, and cash collateral.

Prior to entering into transactions with new counterparties, Equinor's credit policy requires all counterparties to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor's assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements and other relevant business information. All counterparties are re-assessed regularly.

Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor's portfolio as well as maximum credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual exposures against limits on a daily basis. Equinor's total credit exposure is geographically diversified among a number of counterparties within the oil and energy sector, as well as larger oil and gas consumers and financial counterparties. The majority of Equinor's credit exposure is with investment-grade counterparties.

The following table contains the carrying amount of Equinor's financial receivables and derivative financial instruments split by Equinor's assessment of the counterparty's credit risk. Trade and other receivables include 1% overdue receivables of more than 30 days. A provision has been recognised for expected credit losses of trade and other receivables using the expected credit loss model. Only non-exchange traded instruments are included in derivative financial instruments.

| (in USD million) | Non-current financial receivables | Trade and other receivables | Non-current derivative financial instruments | Current derivative financial instruments |
| --- | --- | --- | --- | --- |
| At 31 December 2022 |  |  |  |  |
| Investment grade, rated A or above | 1,633 | 6,125 | 390 | 1,715 |
| Other investment grade | 12 | 8,725 | 41 | 1,393 |
| Non-investment grade or not rated | 14 | 6,761 | 259 | 931 |
| Total financial assets | 1,659 | 21,611 | 690 | 4,039 |
| At 31 December 2021 |  |  |  |  |
| Investment grade, rated A or above | 452 | 3,637 | 1,103 | 2,902 |
| Other investment grade | 18 | 8,930 | 0 | 1,524 |
| Non-investment grade or not rated | 238 | 4,624 | 162 | 705 |
| Total financial assets | 708 | 17,191 | 1,265 | 5,131 |

For more information about Trade and other receivables, see note 18 Trade and other receivables.

Equinor, Annual Report on Form 20-F 2022 77

The table below presents the amounts offset under the terms of various master netting agreements for financial assets and liabilities. Amounts not qualifying for offsetting consists of collateral receipts or payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There exist no restrictions on collaterals received.

| (in USD million) | Gross amounts of recognised financial assets/ liabilities | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount |
| --- | --- | --- | --- | --- | --- |
| At 31 December 2022 |  |  |  |  |  |
| Financial assets |  |  |  |  |  |
| Trade receivables | 25,607 | 7,464 | 18,143 | 0 | 18,143 |
| Collateral receivables | 19,043 | 15,575 | 3,468 | 3,468 | 0 |
| Derivative financial instruments | 30,078 | 25,348 | 4,730 | 1,708 | 3,022 |
| Total financial assets | 74,728 | 48,387 | 26,341 | 5,176 | 21,165 |
| Financial liabilities |  |  |  |  |  |
| Trade payables | 19,913 | 7,464 | 12,449 | 0 | 12,449 |
| Collateral liabilities | 15,479 | 13,907 | 1,572 | 1,571 | 1 |
| Derivative financial instruments | 33,497 | 27,015 | 6,482 | 3,605 | 2,877 |
| Total financial liabilities | 68,889 | 48,386 | 20,503 | 5,176 | 15,327 |

| (in USD million) | Gross amounts of recognised financial assets/ liabilities 1) | Gross amounts offset in the balance sheet 1) | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount |
| --- | --- | --- | --- | --- | --- |
| At 31 December 2021 |  |  |  |  |  |
| Financial assets |  |  |  |  |  |
| Trade receivables | 20,061 | 4,445 | 15,616 | 0 | 15,616 |
| Collateral receivables 1) | 9,902 | 8,327 | 1,576 | 1,576 | 0 |
| Derivative financial instruments 1) | 32,493 | 26,097 | 6,396 | 2,771 | 3,625 |
| Total financial assets 1) | 62,456 | 38,869 | 23,588 | 4,347 | 19,241 |
| Financial liabilities |  |  |  |  |  |
| Trade payables | 16,795 | 4,445 | 12,350 | 0 | 12,350 |
| Collateral liabilities 1) | 9,851 | 7,580 | 2,271 | 2,271 | 0 |
| Derivative financial instruments 1) | 32,218 | 26,844 | 5,375 | 2,076 | 3,299 |
| Total financial liabilities 1) | 58,864 | 38,869 | 19,996 | 4,347 | 15,649 |

1) Gross amounts have been restated due to reassessment of certain exchange traded derivatives and related collaterals previously not recognised on the Consolidated balance sheet, with no effect on net amounts presented.

#### Capital management

78 Equinor, Annual Report on Form 20-F 2022

The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to ensure sufficient financial flexibility. Equinor's primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts for Norwegian Government ownership). Equinor's current long-term ratings are AA- with a stable outlook (including one notch uplift) and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody's, respectively. In order to monitor financial robustness, a key ratio utilised by Equinor is the non-GAAP metric of 'Net interest-bearing debt adjusted (ND) to Capital employed adjusted' (CE)'.

| (in USD million) | At 31 December 2022 | 2021 |
| --- | --- | --- |
| Net interest-bearing debt adjusted, including lease liabilities (ND1) | (6,750) | 3,236 |
| Net interest-bearing debt adjusted (ND2) | (10,417) | (326) |
| Capital employed adjusted, including lease liabilities (CE1) | 47,239 | 42,259 |
| Capital employed adjusted (CE2) | 43,571 | 38,697 |
| Net debt to capital employed adjusted*, including lease liabilities (ND1/CE1) | (14.3%) | 7.7% |
| Net debt to capital employed adjusted* (ND2/CE2) | (23.9%) | (0.8%) |

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial investments, adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD 6,538 million and USD 2,369 million for 2022 and 2021, respectively). CE1 is defined as Equinor's total equity (including non-controlling interests) and ND1. ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD 3,668 million and USD 3,562 million for 2022 and 2021, respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

## 5 Segments

### Accounting policies

Equinor's operations are managed through operating segments identified on the basis of those components of Equinor that are regularly reviewed by the chief operating decision maker, Equinor's corporate executive committee (CEC). The reportable segments Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the line-item Additions to PP&E, intangibles and equity accounted investments in which movements related to changes in asset retirement obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market prices. The transactions are eliminated upon consolidation.

With effect from 2022, Equinor changed the measurement basis for the segments related to leases. Up to and including 2021, all leases were presented within the Other segment and lease costs were allocated to the operating segments based on underlying lease payments with a corresponding credit in the Other segment. With effect from 2022, lease contracts are accounted for in accordance with IFRS 16 Leases in all segments. This change does not affect Equinor's Consolidated financial statements except the segment disclosures in this note. Comparative numbers in the segments have been restated.

The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources, commercial development and safe and efficient operation of the oil and gas portfolios within their respective geographical areas: E&P Norway on the Norwegian continental shelf, E&P USA in USA and E&P International worldwide outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

Equinor, Annual Report on Form 20-F 2022 79

TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas, NGL and refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines, shipping, trucking and rail. In addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such as offshore wind, green hydrogen, storage solutions, and solar power.

Segment information for the years ended 31 December 2022, 2021, and 2020 are presented below. For revenues per geographical area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments, please refer to the related notes: note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments, contingent liabilities, and contingent assets.

| 2022 (in USD million) | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income | 1,299 | 1,134 | 305 | 147,173 | 127 | 149 | 0 | 150,186 |
| Revenues inter-segment | 74,631 | 6,124 | 5,217 | 527 | 0 | 55 | (86,554) | 0 |
| Net income/(loss) from equity accounted investments | 0 | 172 | 0 | 406 | 58 | (16) | 0 | 620 |
| Total revenues and other income | 75,930 | 7,431 | 5,523 | 148,105 | 185 | 187 | (86,554) | 150,806 |
| Purchases [net of inventory variation] | 0 | (116) | 0 | (139,916) | 0 | 0 | 86,227 | (53,806) |
| Operating, selling, general and administrative expenses | (3,782) | (1,698) | (938) | (4,591) | (265) | (223) | 904 | (10,595) |
| Depreciation and amortisation | (4,986) | (1,445) | (1,422) | (881) | (4) | (142) | 0 | (8,878) |
| Net impairment (losses)/reversals | 819 | (286) | 1,060 | 895 | 0 | 0 | 0 | 2,487 |
| Exploration expenses | (366) | (638) | (201) | 0 | 0 | 0 | 0 | (1,205) |
| Total operating expenses | (8,315) | (4,183) | (1,501) | (144,493) | (269) | (365) | 87,131 | (71,995) |
| Net operating income/(loss) | 67,614 | 3,248 | 4,022 | 3,612 | (84) | (178) | 577 | 78,811 |
| Additions to PP&E, intangibles and equity accounted investments | 4,922 | 2,623 | 764 | 1,212 | 298 | 176 | 0 | 9,994 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 550 | 0 | 688 | 1,452 | 65 | 0 | 2,758 |
| Non-current segment assets | 28,510 | 15,868 | 11,311 | 4,619 | 316 | 1,031 | 0 | 61,656 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 15,437 |
| Total non-current assets |  |  |  |  |  |  |  | 79,851 |
| Assets classified as held for sale | 0 | 1,018 | 0 | 0 | 0 | 0 | 0 | 1,018 |

80 Equinor, Annual Report on Form 20-F 2022

| 2021 (in USD million) | E&P Norway 1) | E&P International 1) | E&P USA 1) | MMP 1) | REN 1) | Other 1) | Eliminations 1) | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income 1) | 414 | 1,121 | 377 | 87,050 | 1,394 | 307 | 0 | 90,665 |
| Revenues inter-segment 1) | 38,972 | 4,230 | 3,771 | 321 | 0 | 41 | (47,335) | 0 |
| Net income/(loss) from equity accounted investments | 0 | 214 | 0 | 22 | 16 | 7 | 0 | 259 |
| Total revenues and other income 1) | 39,386 | 5,566 | 4,149 | 87,393 | 1,411 | 355 | (47,335) | 90,924 |
| Purchases [net of inventory variation] | 0 | (58) | 0 | (80,873) | 0 | (1) | 45,772 | (35,160) |
| Operating, selling, general and administrative expenses 1) | (3,653) | (1,405) | (1,074) | (3,753) | (163) | (432) | 1,102 | (9,378) |
| Depreciation and amortisation 1) | (6,002) | (1,734) | (1,665) | (869) | (3) | (158) | 0 | (10,432) |
| Net impairment (losses)/reversals 1) | 1,102 | (1,587) | (69) | (735) | 0 | 2 | 0 | (1,287) |
| Exploration expenses | (363) | (451) | (190) | 0 | 0 | 0 | 0 | (1,004) |
| Total operating expenses 1) | (8,915) | (5,237) | (2,998) | (86,230) | (166) | (590) | 46,873 | (57,261) |
| Net operating income/(loss) 1) | 30,471 | 329 | 1,150 | 1,163 | 1,245 | (234) | (461) | 33,663 |
| Additions to PP&E, intangibles and equity accounted investments 1) | 4,943 | 1,834 | 690 | 517 | 457 | 64 | 0 | 8,506 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 1,417 | 0 | 113 | 1,108 | 45 | 0 | 2,686 |
| Non-current segment assets 1) | 36,502 | 15,422 | 11,406 | 4,006 | 157 | 1,032 | 0 | 68,527 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 13,406 |
| Total non-current assets |  |  |  |  |  |  |  | 84,618 |
| Assets classified as held for sale | 0 | 676 | 0 | 0 | 0 | 0 | 0 | 676 |

1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line items Operating, selling, general and administrative expenses in MMP (reduction of USD 523 million), E&P Norway (reduction of USD 77 million) and Other (increase of USD 696 million), Depreciation and amortisation in MMP (increase of USD 509 million), E&P Norway (increase of USD 222 million) and Other (reduction of USD 799 million) and Non-current segment assets in MMP (increase of USD 987 million), E&P Norway (increase of USD 1,201 million) and Other (decrease of USD 2,255 million).

Equinor, Annual Report on Form 20-F 2022 81

| 2020 (in USD million) | E&P Norway 1) | E&P International 1) | E&P USA | MMP 1) | REN 1) | Other 1) | Eliminations | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income 1) | 215 | 452 | 368 | 44,623 | 18 | 88 | 0 | 45,765 |
| Revenues inter-segment | 11,804 | 3,183 | 2,247 | 309 | 0 | 39 | (17,581) | 0 |
| Net income/(loss) from equity accounted investments | 0 | (146) | 0 | 31 | 163 | 5 | 0 | 53 |
| Total revenues and other income 1) | 12,019 | 3,489 | 2,615 | 44,963 | 181 | 132 | (17,581) | 45,818 |
| Purchases [net of inventory variation] | 0 | (72) | 0 | (38,072) | 0 | 1 | 17,157 | (20,986) |
| Operating, selling, general and administrative expenses 1) | (2,736) | (1,374) | (1,310) | (4,564) | (214) | (59) | 722 | (9,537) |
| Depreciation and amortisation 1) | (4,466) | (2,105) | (1,889) | (875) | (1) | (178) | (1) | (9,515) |
| Net impairment (losses)/reversals 1) | (1,260) | (1,426) | (1,938) | (1,076) | 0 | (19) | (1) | (5,720) |
| Exploration expenses | (423) | (2,071) | (990) | 0 | 0 | 1 | (1) | (3,483) |
| Total operating expenses 1) | (8,886) | (7,048) | (6,127) | (44,587) | (216) | (254) | 17,877 | (49,241) |
| Net operating income/(loss) 1) | 3,133 | (3,559) | (3,512) | 376 | (35) | (122) | 295 | (3,423) |
| Additions to PP&E, intangibles and equity accounted investments 1) | 5,004 | 2,588 | 1,067 | 1,048 | 33 | 22 | 0 | 9,762 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 1,125 | 0 | 95 | 1,017 | 25 | 0 | 2,262 |
| Non-current segment assets 1) | 39,355 | 17,960 | 12,588 | 5,605 | 4 | 1,144 | 0 | 76,657 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 13,704 |
| Total non-current assets |  |  |  |  |  |  |  | 92,623 |
| Assets classified as held for sale | 0 | 0 | 1,159 | 0 | 203 | 0 | 0 | 1,362 |

1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line items Operating, selling, general and administrative expenses in MMP (reduction of USD 494 million), E&P Norway (reduction of USD 93 million) and Other (increase of USD 693 million), Depreciation and amortisation in MMP (increase of USD 481 million), E&P Norway (increase of USD 181 million) and Other (reduction of USD 718 million) and Non-current segment assets in MMP (increase of USD 1,238 million), E&P Norway (increase of USD 1,623 million) and Other (decrease of USD 2,987 million).

82 Equinor, Annual Report on Form 20-F 2022

# **Non-current assets by country**

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Norway | 33,242 | 40,564 |
| USA | 12,343 | 12,323 |
| Brazil | 9,400 | 8,751 |
| UK | 3,688 | 2,096 |
| Azerbaijan | 1,401 | 1,654 |
| Canada | 1,171 | 1,403 |
| Angola | 895 | 948 |
| Algeria | 622 | 708 |
| Argentina | 615 | 474 |
| Denmark | 497 | 536 |
| Other | 541 | 1,757 |
| Total non-current assets 1) | 64,414 | 71,213 |

1) Excluding deferred tax assets, pension assets and non-current financial assets.

Equinor's non-current assets in Norway have decreased by USD 7,322 million to USD 33,242 million at 31 December 2022 compared to year-end 2021, mainly due to increased discount rates and strengthening of USD versus NOK. The decrease has mainly affected Property, plant and equipment, see note 12.

Equinor, Annual Report on Form 20-F 2022 83

# 6 Acquisitions and disposals

## Accounting policies

### Business combinations

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition method. The purchase price includes total consideration paid to acquire the entity's assets and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the Consolidated statement of income under Other income.

Equinor recognises a gain/loss on disposal of a subsidiary when control is lost. Any remaining interest in the former subsidiary is recognised at fair value. When partially divesting subsidiaries which do not constitute a business, and where the remaining investment in the former subsidiary is an associate or a jointly controlled investment, Equinor only recognises the gain or loss on the divested part within Other income or Operating expenses, respectively. The remaining interest in the former subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

### After-tax disposals

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of income.

### Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This condition is met when an asset is available for immediate sale in its present condition, Equinor's management is committed to the sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are normally met when management has approved a negotiated letter of intent with the counterparties (a 'DGC'). Liabilities directly associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified separately. 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.

### Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an asset purchase, and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

### Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The conclusion requires judgement to be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the standards' requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal entities concurrently with a portion of the entities' shares being sold to a third party, thereby resulting in Equinor's loss of control of those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to only recognise the gain on the divested portion.

2022

## Acquisitions

### Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar Aps to acquire 100% of BeGreen Solar Aps for a cash consideration of USD 277 million (EUR 260 million) and a consideration contingent on successful delivery of future solar projects above an agreed MW threshold. BeGreen Solar Aps is a Danish solar developer. At closing, USD 226 million (EUR 213 million) of the cash consideration was paid and recognised in the REN segment.

### Acquisition of Triton Power

84 Equinor, Annual Report on Form 20-F 2022

On 1 September 2022, Equinor and SSE Thermal Generation Holdings Limited (SSE Thermal) closed a transaction to acquire the UK power company Triton Power Holdings Ltd (Triton Power) from Triton Power Partners LP owned by Energy Capital Partners (ECP). Equinor's share of the consideration was USD 141 million (GBP 120 million), after adjustments that mainly related to net debt and working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station with an installed capacity of 1.2 GW. Equinor and SSE Thermal own 50% each of Triton Power, and Equinor is accounting for the investment under the equity method as a joint venture in the MMP segment.

#### **Acquisition of Stafford licence shares**

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy's interests in production licences in the Stafford area which covers the Norwegian and UK Continental Shelves and consists of three integrated production platforms and satellite subsea installations. All licences are operated by Equinor. Spirit Energy's ownership shares in the licences covered by the transaction range from 11.56% to 48.78%. The cash consideration received was USD 193 million, whereof USD 25 million related to Spirit's lifting of volumes on Equinor's behalf in June 2022. The assets and liabilities acquired have been reflected in accordance with the principles in IFRS 3 Business Combinations. The transaction is reflected in the E&P Norway and E&P International segments with a cash consideration of USD 96 million and USD 72 million, respectively.

In the segment E&P Norway, the acquisition resulted in an increase of USD 98 million in property, plant and equipment, an increase of USD 390 million in asset retirement obligation, a reduction of deferred tax liability of USD 298 million and an increase in taxes payable of USD 98 million. In the segment E&P International, the acquisition resulted in an increase of USD 98 million in property, plant and equipment, an increase of USD 241 million in asset retirement obligation and an increase of deferred tax asset of USD 86 million.

#### **Disposals**

##### **Ekofisk and Martin Linge on the Norwegian Continental Shelf**

On 30 September 2022, Equinor closed a transaction with Sval Energi AS to divest Equinor's entire ownership share in the Greater Ekofisk Area including its share in Norpipe Oil AS, and a 19% ownership share in Martin Linge. The cash consideration paid upon closing of the transaction amounted to USD 293 million after interim period settlement. In addition, an estimated contingent consideration of USD 169 million linked to realised oil and gas prices for 2022 and 2023 was recognised. Equinor retained a 51% ownership share in Martin Linge and continues as operator of the field. The disposal resulted in a decrease in property, plant and equipment of USD 1,493 million, a decrease in asset retirement obligation of USD 376 million, a decrease in deferred tax liability of USD 597 million and a decrease in taxes payable of USD 686 million. A post-tax gain of USD 655 million is presented in the line item Other income in the Consolidated statement of income in the E&P Norway segment.

##### **Exit Russia**

Following Russia's invasion of Ukraine in February 2022, Equinor announced that it had decided to stop new investments in Russia and start the process of exiting Equinor's joint arrangements. Based on this decision, Equinor evaluated its assets in Russia and recognised net impairments of USD 1,083 million in the first quarter, of which USD 251 million was related to property, plant and equipment and intangible assets and USD 832 million was related to investments accounted for using the equity method. The impairments were net of contingent consideration from the time of acquiring the assets. The impairments were recognised in the line items Depreciation, amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based on the nature of the impaired assets and reflected in the E&P International segment. During the second quarter, Equinor transferred its participating interests in four Russian entities to Rosneft and was released from all future commitments and obligations with no material impact on the financial statements. The ownership interests in Kharyaga were transferred to the operator.

Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any new trades or engage in new transport of oil and oil products from Russia. Equinor has assessed the accounting impact of certain commitments arising from such contracts entered into prior to the invasion and deem the impact to be immaterial.

##### **10% of Dogger Bank C**

On 10 February 2022, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank C project in the UK for a total consideration of USD 91 million (GBP 68 million), resulting in a gain of USD 87 million (GBP 65 million). After closing, Equinor's ownership share is 40%. Equinor continues to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

#### **Held for sale**

##### **Equinor Energy Ireland Limited**

In the fourth quarter of 2021, Equinor entered into an agreement with Vermilion Energy Inc (Vermilion) to sell Equinor's non-operated equity position in the Corrib gas project in Ireland. The transaction covers a sale of 100% of the shares in Equinor Energy Ireland Limited (EEIL). EEIL owns 36.5% of the Corrib field alongside the operator Vermilion (20%) and Nephin Energy (43.5%). Equinor and

Equinor, Annual Report on Form 20-F 2022 85

Vermilion have agreed a consideration of USD 434 million before closing adjustments and contingent consideration linked to 2022 production level and gas prices. Closing is dependent on governmental approval and is expected to take place during the first quarter 2023.

## 2021

### Acquisitions

#### Wento

On 5 May 2021, Equinor completed a transaction to acquire 100% of the shares in Polish onshore renewables developer Wento from the private equity firm Enterprise Investors for a cash consideration of USD 117 million (EUR 98 million) after net cash adjustments. The assets and liabilities related to the acquired business were recognised under the acquisition method. The acquisition resulted in an increase of Equinor's intangible assets of USD 46 million and goodwill of USD 59 million. The goodwill reflects the expected synergies, competence and access to the Polish renewables market obtained in the acquisition. The transaction has been accounted for in the REN segment.

### Disposals

#### Equinor Refining Denmark A/S

On 31 December 2021, Equinor Danmark A/S closed the transaction with the Klesch Group to sell 100% of the shares in Equinor Refining Denmark A/S (ERD). Klesch paid USD 48 million of the total estimated consideration at closing. ERD consists of the Kalundborg refinery and associated terminals and infrastructure. Following an impairment earlier in 2021, the disposal resulted in an immaterial loss. Prior to transaction closing, Equinor received USD 335 million in extraordinary dividend and repayment of paid-in capital from ERD.

Following the disposal, a gain of USD 167 million was recycled from Other comprehensive income (OCI) to the Consolidated statement of income in the line item Other income and has been reflected in the MMP segment.

#### Terra Nova

On 8 September 2021, Equinor closed the transaction with Cenovus and Murphy to sell 100% of its interest, which includes a release of any future obligations and liabilities, in the Terra Nova asset in offshore Canada. The transaction was accounted for in the E&P International segment. The consideration paid, the net carrying amount and the impact to the Consolidated statement of income are immaterial.

#### Bakken onshore unconventional field

On 26 April 2021, Equinor closed the transaction to divest its interests in the Bakken field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments for an estimated total consideration of USD 819 million, including interim period settlement, for which payment was received in the first half of 2021. The asset had been impaired in 2021 prior to closing. Subsequent to closing, insignificant losses were recorded and are presented in the line item Operating expenses in the Consolidated statement of income in the E&P USA segment.

#### 10% of Dogger Bank Farm A and B

On 26 February 2021, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of USD 285 million (GBP 206 million), resulting in a gain of USD 280 million (GBP 203 million). After closing, Equinor has a 40% shareholding in Dogger Bank A and Dogger Bank B, and will continue to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

#### Non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast

On 29 January 2021, Equinor closed the transaction with BP to sell 50% of the non-operated interests in the Empire Wind and Beacon Wind assets for a preliminary total consideration after interim period adjustments of USD 1.2 billion, resulting in a gain of USD 1.1 billion for the divested part, of which USD 500 million had been prepaid at the end of December 2020. Through this transaction, the two companies have established a strategic partnership for further growth within offshore wind in the USA. Following the transaction, Equinor remains the operator with a 50% interest. Equinor consolidated the assets until transaction closing, and thereafter the investments are classified as joint ventures and accounted for using the equity method. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

## 7 Total revenues and other income

### Accounting policies

#### Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption, Revenues, in the Consolidated statement of income.

86 Equinor, Annual Report on Form 20-F 2022

#### Revenue from contracts with customers

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, which is delivered on a continuous basis through pipelines, sales are completed over time in line with the delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial instruments or part of Equinor's trading activities, they are settled and presented on a net basis as Other revenue. Reference is made to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of Equinor's own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership interest, costs are deferred for the underlift.

#### Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as Other revenue if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related to sales contracts or revenue-related risk management.

#### Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The Norwegian State's participation in petroleum activities is organised through the SDFI (the Norwegian State's Direct Financial Interests). All purchases and sales of the SDFI's oil production are classified as purchases [net of inventory variation] and revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI's account and risk, the SDFI's production of natural gas. These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial statements. Natural gas sales made in the name of Equinor's subsidiaries are also presented net of the SDFI's share in the Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

#### Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement, Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards sales to third party customers. Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI. On that basis, Equinor is not considered the principal in the sale of the SDFI's natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and SDFI.

#### Revenues from contracts with customers by geographical areas

Equinor has business operations in around 30 countries. When attributing the line-item Revenues from contracts with customers for 2022 to the country of the legal entity executing the sale for 2022, Norway constitutes 84% and USA constitutes 13%. For 2021 the revenues to Norway and USA constituted 81% and 13% respectively, and for 2020 80% and 14% respectively.

#### Revenues from contracts with customers and other revenues

| (in USD million) | Note | 2022 | 2021 | 2020 |
| --- | --- | --- | --- | --- |
| Crude oil |  | 58,524 | 38,307 | 24,509 |
| Natural gas |  | 65,232 | 28,050 | 7,213 |

Equinor, Annual Report on Form 20-F 2022 87

| - European gas | 58,239 | 24,900 | 5,839 |
| --- | --- | --- | --- |
| - North American gas | 2,884 | 1,783 | 1,010 |
| - Other incl LNG | 4,109 | 1,368 | 363 |
| Refined products | 11,093 | 11,473 | 6,534 |
| Natural gas liquids | 9,240 | 8,490 | 5,069 |
| Transportation | 1,470 | 921 | 1,083 |
| Other sales | 4,702 | 1,006 | 681 |
| Total revenues from contracts with customers | 150,262 | 88,247 | 45,088 |
| Taxes paid in-kind | 412 | 345 | 93 |
| Physically settled commodity derivatives | (2,534) | (1,075) | 209 |
| Gain/(loss) on commodity derivatives | 739 | 951 | 108 |
| Change in fair value of trading inventory | (194) | 0 | 0 |
| Other revenues | 319 | 276 | 256 |
| Total other revenues | (1,258) | 497 | 665 |
| Revenues | 149,004 | 88,744 | 45,753 |
| Net income/(loss) from equity accounted investments | 15 620 | 259 | 53 |
| Other income | 6 1,182 | 1,921 | 12 |
| Total revenues and other income | 150,806 | 90,924 | 45,818 |

88 Equinor, Annual Report on Form 20-F 2022

## 8 Salaries and personnel expenses

| (in USD million, except average number of employees) | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Salaries 1) | 2,875 | 2,962 | 2,625 |
| Pension costs 2) | 458 | 488 | 432 |
| Payroll tax | 433 | 414 | 368 |
| Other compensations and social costs | 324 | 288 | 283 |
| Total payroll expenses | 4,090 | 4,152 | 3,707 |
| Average number of employees 3) | 21,500 | 21,400 | 21,700 |

1) Salaries include bonuses, severance packages and expatriate costs in addition to base pay.

2) See note 22 Pensions.

3) Part time employees amount to 3% for 2022 and 2021 and 2% for 2020.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours incurred basis.

Equinor, Annual Report on Form 20-F 2022 89

## Compensation to the board of directors (BoD) and the corporate executive committee (CEC)

| (in USD million) 1) | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Current employee benefits | 12.9 | 12.2 | 9.0 |
| Post-employment benefits | 0.4 | 0.4 | 0.6 |
| Other non-current benefits | 0.0 | 0.0 | 0.0 |
| Share-based payment benefits | 0.2 | 0.1 | 0.1 |
| Total benefits | 13.5 | 12.7 | 9.7 |

1) All figures in the table are presented on accrual basis.

At 31 December 2022, 2021, and 2020 there are no loans to the members of the BoD or the CEC.

### Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts vested for bonus shares granted and related social security tax was USD 85 million, USD 79 million, and USD 74 million related to the 2022, 2021 and 2020 programmes, respectively. For the 2023 programme (granted in 2022), the estimated compensation expense is USD 78 million. At 31 December 2022 the amount of compensation cost yet to be expensed throughout the vesting period is USD 174 million.

See note 20 Shareholders' equity and dividends for more information about share-based compensation.

## 9 Auditor's remuneration and Research and development expenditures

### Auditor's remuneration

| (in USD million, excluding VAT) | 2022 | Full year 2021 | 2020 |
| --- | --- | --- | --- |
| Audit fee | 11.4 | 14.4 | 10.7 |
| Audit related fee | 1.8 | 1.1 | 1.0 |
| Tax fee | - | - | - |
| Other service fee | - | - | - |
| Total remuneration | 13.2 | 15.5 | 11.7 |

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences amount to USD 0.6 million, USD 0.5 million and USD 0.5 million for 2022, 2021 and 2020, respectively.

### Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D activities contribute to maximising and developing long-term value from Equinor's assets. R&D expenditures are partially financed by partners of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD 308 million, USD 291 million and USD 254 million in 2022, 2021 and 2020, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated statement of income.

90 Equinor, Annual Report on Form 20-F 2022

## 10 Financial items

| (in USD million) | 2022 | Full year 2021 | 2020 |
| --- | --- | --- | --- |
| Foreign currency exchange gains/(losses) derivative financial instruments | 797 | 870 | (1,288) |
| Other foreign currency exchange gains/(losses) | 1,291 | (823) | 642 |
| Net foreign currency exchange gains/(losses) | 2,088 | 47 | (646) |
| Dividends received | 93 | 39 | 44 |
| Interest income financial investments, including cash and cash equivalents | 398 | 38 | 108 |
| Interest income non-current financial receivables | 30 | 26 | 34 |
| Interest income other current financial assets and other financial items | 701 | 48 | 113 |
| Interest income and other financial items | 1,222 | 151 | 298 |
| Gains/(losses) financial investments | (394) | (348) | 456 |
| Gains/(losses) other derivative financial instruments | (1,745) | (708) | 448 |
| Interest expense bonds and bank loans and net interest on related derivatives | (1,029) | (896) | (951) |
| Interest expense lease liabilities | (90) | (93) | (104) |
| Capitalised borrowing costs | 382 | 334 | 308 |
| Accretion expense asset retirement obligations | (449) | (453) | (412) |
| Interest expense current financial liabilities and other finance expense | (192) | (114) | (232) |
| Interest expenses and other finance expenses | (1,379) | (1,223) | (1,392) |
| Net financial items | (207) | (2,080) | (836) |

Equinor's main financial items relate to assets and liabilities categorised in the fair value through profit or loss and the amortised cost categories. For more information about financial instruments by category see note 28 Financial instruments and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to liquidity and currency risk. The line item Other foreign currency exchange gains/(losses) includes a fair value loss from derivatives related to non-current debt of USD 691 million in 2022, a loss of USD 702 million in 2021 and a gain of USD 796 million in 2020.

The line item Gains/(losses) other derivative financial instruments primarily includes fair value changes from interest rate related derivatives, with a loss of USD 1,760 million and USD 724 million in 2022 and 2021 respectively, and a gain of USD 432 million in 2020.

The line item Interest expense bonds and bank loans and net interest on related derivatives includes interest expenses of USD 918 million, USD 990 million, and USD 1,031 million for 2022, 2021 and 2020, respectively, from the financial liabilities at amortised cost category. It also includes net interest on related derivatives from the fair value through profit or loss category, amounting to a net interest expense of USD 111 million for 2022, net interest income of USD 94 million and USD 79 million for 2021 and 2020, respectively.

Equinor, Annual Report on Form 20-F 2022 91

# 11 Income taxes

## Accounting policies

### Income tax

Income tax in the Consolidated statement of income comprises 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 adjustment to tax payable for previous years. Uncertain tax positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 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, and on unused tax losses and credits carried forward, subject to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income, convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items. The applied policy is in line with an amendment to IAS 12 Income Taxes, reducing the scope of the initial recognition exemption, which is effective from 1 January 2023.

### Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred tax assets and deferred tax liabilities. There may be uncertainties related to interpretations of applicable tax laws and regulations regarding amounts in Equinor's tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient future taxable income before tax losses expire.

92 Equinor, Annual Report on Form 20-F 2022

## Significant components of income tax expense

| (in USD million) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Current income tax expense in respect of current year | (52,124) | (21,271) | (1,115) |
| Prior period adjustments | (112) | (28) | 313 |
| Current income tax expense | (52,236) | (21,299) | (802) |
| Origination and reversal of temporary differences | (2,136) | (1,778) | (648) |
| Recognition of previously unrecognised deferred tax assets | 4,401 | 126 | 130 |
| Change in tax regulations | 0 | 4 | (12) |
| Prior period adjustments | 110 | (60) | 94 |
| Deferred tax income/(expense) | 2,375 | (1,708) | (435) |
| Income tax | (49,861) | (23,007) | (1,237) |

## Changes to tax regimes

### Norway

As a measure to maintain activity in the oil and gas related industry during the Covid-19 pandemic, the Norwegian Government enacted temporary targeted changes to Norway's petroleum tax system for investments incurred in 2020 and 2021, and for new projects with Plan for development and operations (PDOs) or Plan for installation and operations (PIOs) submitted to the Ministry of Oil and Energy by the end of 2022 and approved prior to 1 January 2024. The changes were effective from 1 January 2020 and provided companies with a direct tax deduction in the special petroleum tax instead of tax depreciation over six years. In addition, the tax uplift benefit, was recognised over one year instead of four years. Tax depreciation towards the ordinary offshore corporate tax was continued with a six-year depreciation profile.

On 17 June 2022, the Norwegian Parliament adopted amendments to the Petroleum Tax Act to convert the special tax for petroleum activities to a cash flow tax. The amendments were effective 1 January 2022 and maintains the marginal rate for special petroleum tax and corporate income tax at 56% and 22% respectively but allows for cost of investments in the year of investment and calculated corporate income tax to be deducted in the special petroleum tax base. Uplift deductions for investments incurred after 1 January 2022 was discontinued. The uplift deduction rate under the temporary rules was reduced to 17.69% for 2022 and further reduced to 12.4% as from 2023.

### UK

On 23 May 2022, the UK introduced a new levy intended to tax windfall profits on oil and gas production from the United Kingdom Continental Shelf, called the Energy (Oil & Gas) Profits Levy Act 2022 (EPL).

EPL was introduced as a new temporary tax at the rate of 25% from 26 May 2022 to 31 December 2022, and further increased to 35% from 1 January 2023 to 31 March 2028. It applies to profits on transactions from that date forward with no tax relief for prior expenditures or brought forward losses and with no EPL tax relief for interest and decommissioning costs. Capital cost incurred since 26 May 2022 are eligible for an EPL deductible uplift of 80% until 31 December 2022 and thereafter at 29% for expenditure other than that in respect of de-carbonisation where the rate of uplift remains at 80%. EPL losses can be carried forward without limitation and carried back for one year.

### US

On August 16, 2022, the Inflation Reduction Act (IRA) was enacted in the USA. As from 2023, under the IRA a Corporate Minimum Tax on Book Earnings (BMT) applies a 15% tax on adjusted financial statement income. The enactment of the IRA had no impact in 2022.

Equinor, Annual Report on Form 20-F 2022 93

## Reconciliation of statutory tax rate to effective tax rate

| (in USD million) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Income/(loss) before tax | 78,604 | 31,583 | (4,259) |
| Calculated income tax at statutory rate 1) | (18,168) | (7,053) | 1,445 |
| Calculated Norwegian Petroleum tax 2) | (36,952) | (17,619) | (2,126) |
| Tax effect uplift 3) | 259 | 914 | 1,006 |
| Tax effect of permanent differences regarding divestments | 417 | 90 | (9) |
| Tax effect of permanent differences caused by functional currency different from tax currency | 145 | 150 | (198) |
| Tax effect of other permanent differences | 403 | 228 | 450 |
| Recognition of previously unrecognised deferred tax assets 4) | 4,401 | 126 | 130 |
| Change in unrecognised deferred tax assets | (34) | 619 | (1,685) |
| Change in tax regulations | 0 | 4 | (12) |
| Prior period adjustments | (3) | (88) | 408 |
| Other items including foreign currency effects | (327) | (378) | (647) |
| Income tax | (49,861) | (23,007) | (1,237) |
| Effective tax rate | 63.4% | 72.8% | (29.0 %) |

1) The weighted average of statutory tax rates was 23.1% in 2022, 22.3% in 2021 and 33.9% in 2020. The rates are influenced by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory tax rates.

2) The Norwegian petroleum income is taxable at a tax rate of 71.8% after deduction for 22% corporate tax in the special petroleum tax basis.

3) When calculating the petroleum tax of 71.8% on income from the Norwegian continental shelf, an additional tax-free allowance (uplift) was previously granted on the basis of the original capitalised cost of offshore production installations.

Previously, a 5.2% uplift could be deducted from taxable income for a period of four years starting when the capital expenditure was incurred. On 17 June 2022, the Norwegian Parliament adopted amendments to the Petroleum Tax Act and converted the special tax for petroleum activities to a cash flow tax. The amendments were effective 1 January 2022. Uplift deductions for investments incurred after 1 January 2022 were discontinued. At year-end 2022, un-recognised uplift credits were zero, compared to USD 272 million at year-end 2021.

For 2020 and 2021, temporary rules enacted under the Covid-19 pandemic allowed direct deduction of the whole uplift at a rate of 24% in the year the capital expenditure was incurred. This rate was reduced to 17.69% for 2022, and further reduced to 12.4% on capital expenditures incurred on investments eligible under the temporary rules as from 2023.

4) An amount of USD 4,401 million of previously un-recognised deferred tax assets was recognised in 2022, resulting in a lower effective tax rate for 2022 compared to 2021. More than 90% of the recognition relates to the US, that after a history of significant losses, is now recording profits. Projected future taxable income demonstrates that it is probable that the unused tax losses carried forward can be utilised in the nearest future. The tax value of unused accumulated losses recognised as a deferred tax asset in the US, amounts to USD 2,738 million at year-end 2022. A 30% decline in commodity prices, considered to represent a reasonably possible change, would have an immaterial impact on the recognised amount.

94 Equinor, Annual Report on Form 20-F 2022

#### Deferred tax assets and liabilities comprise

| (in USD million) | Tax losses carried forward | Property, plant and equipment and intangible assets | Asset retirement obligations | Lease liabilities | Pensions | Derivatives | Other | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Deferred tax assets | 8,105 | 694 | 7,356 | 1,306 | 694 | 1,131 | 1,348 | 20,634 |
| Deferred tax liabilities | (28) | (23,356) | 0 | (3) | (12) | (3) | (411) | (23,813) |
| Net asset/(liability) at 31 December 2022 | 8,077 | (22,662) | 7,356 | 1,303 | 682 | 1,128 | 937 | (3,179) |
| Deferred tax assets | 5,162 | 719 | 11,256 | 1,506 | 804 | 21 | 2,015 | 21,484 |
| Deferred tax liabilities | 0 | (27,136) | 0 | 0 | (21) | (1,453) | (530) | (29,140) |
| Net asset/(liability) at 31 December 2021 | 5,162 | (26,417) | 11,256 | 1,506 | 783 | (1,432) | 1,485 | (7,655) |

#### Changes in net deferred tax liability during the year were as follows:

| (in USD million) | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Net deferred tax liability at 1 January | 7,655 | 6,250 | 5,530 |
| Charged/(credited) to the Consolidated statement of income | (2,375) | 1,708 | 435 |
| Charged/(credited) to Other comprehensive income | 105 | 35 | (19) |
| Acquisitions and disposals | (968) | 36 | 0 |
| Foreign currency translation effects and other effects | (1,239) | (374) | 304 |
| Net deferred tax liability at 31 December | 3,179 | 7,655 | 6,250 |

Equinor, Annual Report on Form 20-F 2022 95

Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a legally enforceable right to offset current tax assets against current tax liabilities. After netting deferred tax assets and liabilities by fiscal entity and reclassification to Assets held for sale, deferred taxes are presented on the Consolidated balance sheet as follows:

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Deferred tax assets | 8,732 | 6,259 |
| Deferred tax liabilities | 11,996 | 14,037 |
| Deferred tax assets reported in Assets classified as held for sale | 85 | 122 |

Deferred tax assets are recognised based on the expectation that sufficient taxable income will be available through reversal of taxable temporary differences or future taxable income. At year-end 2022, the deferred tax assets of USD 8,817 million were primarily recognised in the US, the UK, Norway, Angola, Canada and Brazil. Of this amount, USD 1,953 million was recognised in entities which have suffered a tax loss in either the current or the preceding period. The corresponding amounts for 2021, were USD 6,381 million and USD 4,636 million, respectively. The tax losses will be utilised through reversal of taxable temporary differences and future taxable income, mainly from production of oil and gas.

96 Equinor, Annual Report on Form 20-F 2022

## Unrecognised deferred tax assets

| (in USD million) | 2022 |  | At 31 December 2021 |  |
| --- | --- | --- | --- | --- |
|  | Basis | Tax | Basis | Tax |
| Deductible temporary differences | 2,558 | 968 | 2,900 | 1,203 |
| Unused tax credits | 0 | 129 | 0 | 264 |
| Tax losses carried forward | 3,458 | 930 | 20,552 | 5,047 |
| Total unrecognised deferred tax assets | 6,016 | 2,027 | 23,452 | 6,514 |

Approximately 90% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the unrecognised tax losses that cannot be carried forward indefinitely expire after 2027. The unrecognised tax credits expire from 2030, while the unrecognised deductible temporary differences do not expire under the current tax legislation. Deferred tax assets have not been recognised in respect of these items because currently there is insufficient evidence to support that future taxable profits will be available to secure utilisation of the benefits.

At year-end 2022, unrecognised deferred tax assets in Angola and Canada represents USD 636 million and USD 346 million, respectively, of the total unrecognised deferred tax assets of USD 2,027 million. Similar amounts for 2021 were USD 4,206 million in the USA and USD 749 million in Angola, respectively, of a total of USD 6,514 million. The remaining unrecognised deferred tax assets originate from several different tax jurisdictions.

Equinor, Annual Report on Form 20-F 2022 97

# 12 Property, plant and equipment

## Accounting policies

### Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs. Proceeds from production ahead of a project's final approval are regarded as 'early production' and is recognised as revenue rather than as a reduction of acquisition cost. Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance programmes planned and carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or completion of infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport systems for oil and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when designed for significantly larger volumes than the reserves from already developed and producing wells, are depreciated using the unit of production method (UoP) based on proved reserves expected to be recovered from the area during the concession or contract period. Depreciation of production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs of proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances where the use of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset's future economic benefits are expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets and transport systems used by several fields is calculated on the basis of their estimated useful lives, normally using the straight-line method. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For exploration and production assets, Equinor has established separate depreciation categories which as a minimum distinguish between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably certain, are recognised in the Consolidated balance sheet as a deduction to the carrying value of the asset and subsequently recognised in the Consolidated statement of income over the life of the depreciable asset as a reduced depreciation expense.

### Research and development

Equinor undertakes research and development both on a funded basis for licence holders and on an unfunded basis for projects at its own risk, developing innovative technologies to create opportunities and enhance the value of current and future assets. Expenses relate both to in-house resources and the use of suppliers. Equinor's own share of the licence holders' funding and the total costs of the unfunded projects are considered for capitalisation under the applicable IFRS requirements. Subsequent to initial recognition, any capitalised development costs are accounted for in the same manner as Property, plant and equipment. Costs not qualifying for capitalisation are expensed as incurred, see note 9 Auditor's remuneration and Research and development expenditures for more details.

#### Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and gas quantities are always uncertain. Estimating reserves is complex and based on a high degree of professional judgement involving geological and engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing yield factors and installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and economic data and the efficiency of extracting and processing the hydrocarbons.

#### Estimation uncertainty: Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets, as changes in the proved reserves, will impact the unit of production rates used for depreciation and amortisation. Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible

98 Equinor, Annual Report on Form 20-F 2022

from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves only reflect the period before the contracts providing the right to operate expire. For future development projects, proved reserves estimates are included only where there is a significant commitment to project funding and execution and when relevant governmental and regulatory approvals have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed reserves are to be recovered through existing wells with existing equipment and operating methods, or where the cost of the required equipment is relatively minor compared to the cost of a new well. Proved undeveloped reserves are to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled well locations can be classified as having proved undeveloped reserves if a development plan is in place indicating that they are scheduled to be drilled within five years unless specific circumstances justify a longer time horizon. Specific circumstances are for instance fields which have large up-front investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled to continue for much longer than five years. For unconventional reservoirs where continued drilling of new wells is a major part of the investments, such as the US onshore assets, the proved reserves are always limited to proved well locations scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry standards and are governed by the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission (SEC) regulations S-K and S-X, and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have been based on a 12-month average product price and on existing economic conditions and operating methods as required, and recovery of the estimated quantities have a high degree of certainty (at least a 90% probability). An independent third party has evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's estimates.

#### Estimation uncertainty: Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of asset retirement obligations, as a consequence of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets, possibly affecting impairment testing and the recognition of deferred tax assets. Expected oil and gas reserves are the estimated remaining, commercially recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in operation or decided for development. As per Equinor's internal guidelines, expected reserves are defined as the 'forward looking mean reserves' when based on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which case the expected reserves are the deterministic base case or best estimate. Expected reserves are therefore typically larger than proved reserves as defined by the SEC, which are high confidence estimates with at least a 90% probability of recovery when a probabilistic approach is used. Expected oil and gas reserves have been estimated by internal qualified professionals based on industry standards and classified in accordance with the Norwegian resource classification system issued by the Norwegian Petroleum Directorate.

Equinor, Annual Report on Form 20-F 2022 99

| (in USD million) | Machinery, equipment and transportation equipment | Production plants and oil and gas assets | Refining and manufacturing plants | Buildings and land | Assets under development | Right of use assets 4) | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cost at 1 January 2022 | 1,335 | 183,358 | 8,481 | 596 | 12,614 | 5,850 | 212,234 |
| Additions and transfers 5) | 52 | 9,390 | 378 | 6 | (813) | 1,319 | 10,332 |
| Changes in asset retirement obligations | 0 | (4,756) | 0 | 0 | (48) | 0 | (4,805) |
| Disposals at cost | (9) | (3,487) | 2 | (20) | (5) | (347) | (3,865) |
| Foreign currency translation effects | (36) | (12,557) | (576) | (19) | (934) | (188) | (14,310) |
| Cost at 31 December 2022 | 1,343 | 171,948 | 8,285 | 562 | 10,815 | 6,633 | 199,586 |
| Accumulated depreciation and impairment losses at 1 January 2022 | (1,188) | (137,763) | (7,926) | (320) | (344) | (2,619) | (150,159) |
| Depreciation | (52) | (7,643) | (160) | (33) | 0 | (969) | (8,856) |
| Impairment losses | (8) | (187) | (39) | 0 | (49) | (4) | (286) |
| Reversal of impairment losses | 4 | 2,585 | 802 | 0 | 207 | 0 | 3,599 |
| Transfers 6) | (2) | (20) | 2 | 0 | 20 | (8) | (8) |
| Accumulated depreciation and impairment on disposed assets | 8 | 2,002 | (4) | 5 | 0 | 347 | 2,359 |
| Foreign currency translation effects | 34 | 9,571 | 562 | 9 | 30 | 59 | 10,264 |
| Accumulated depreciation and impairment losses at 31 December 2022 7) | (1,203) | (131,455) | (6,763) | (338) | (135) | (3,194) | (143,088) |
| Carrying amount at 31 December 2022 | 140 | 40,493 | 1,522 | 224 | 10,679 | 3,439 | 56,498 |
| Estimated useful lives (years) | 3 - 20 | UoP 1) | 15 - 20 | 10 - 33 2) |  | 1 - 20 3) |  |

100 Equinor, Annual Report on Form 20-F 2022

| (in USD million) | Machinery, equipment and transportation equipment | Production plants and oil and gas assets | Refining and manufacturing plants | Buildings and land | Assets under development | Right of use assets | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cost at 1 January 2021 | 2,806 | 183,082 | 9,238 | 929 | 13,163 | 6,370 | 215,587 |
| Additions and transfers 5) | 39 | 9,439 | 95 | 27 | (355) | 148 | 9,393 |
| Changes in asset retirement obligations | 0 | (2,125) | 0 | 0 | (40) | 0 | (2,165) |
| Disposals at cost | (1,496) | (1,975) | (70) | (353) | (25) | (501) | (4,420) |
| Assets reclassified to held for sale | 0 | (1,010) | (563) | 0 | 0 | (91) | (1,664) |
| Foreign currency translation effects | (13) | (4,052) | (220) | (6) | (130) | (77) | (4,497) |
| Cost at 31 December 2021 | 1,335 | 183,358 | 8,481 | 596 | 12,614 | 5,850 | 212,234 |
| Accumulated depreciation and impairment losses at 1 January 2021 | (2,596) | (132,427) | (8,005) | (524) | (1,275) | (2,251) | (147,079) |
| Depreciation | (68) | (9,136) | (232) | (42) | 0 | (930) | (10,408) |
| Impairment losses | (42) | (2,092) | (401) | (21) | (390) | (17) | (2,962) |
| Reversal of impairment losses | 0 | 1,675 | 0 | 0 | 0 | 2 | 1,677 |
| Transfers 6) | 61 | (1,319) | 0 | (61) | 1,319 | (11) | (11) |
| Accumulated depreciation and impairment on disposed assets | 1,448 | 1,785 | 59 | 326 | 21 | 480 | 4,118 |
| Accumulated depreciation and impairment assets classified as held for sale | 0 | 825 | 461 | 0 | 0 | 82 | 1,367 |
| Foreign currency translation effects | 9 | 2,926 | 192 | 2 | (18) | 27 | 3,138 |
| Accumulated depreciation and impairment losses at 31 December 2021 5) | (1,188) | (137,763) | (7,926) | (320) | (344) | (2,619) | (150,159) |
| Carrying amount at 31 December 2021 | 147 | 45,595 | 555 | 276 | 12,270 | 3,231 | 62,075 |
| Estimated useful lives (years) | 3 - 20 | UoP 1) | 15 - 20 | 10 - 33 2) |  | 1 - 20 3) |  |

1) Depreciation according to unit of production method.

2) Land is not depreciated. Buildings include leasehold improvements.

3) Depreciation linearly over contract period.

4) Right of use assets at 31 December 2022 mainly consist of Land and buildings USD 1,013 million, Vessels USD 1,557 million and Drilling rigs USD 595 million.

5) See note 14 Impairments.

6) The carrying amount of assets transferred to Property plant and equipment from Intangible assets in 2022 and 2021 amounted to USD 982 million and USD 1,730 million, respectively.

Equinor, Annual Report on Form 20-F 2022 101

# 13 Intangible assets

## Accounting policies

### Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible assets include acquisition cost for oil and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas resources, goodwill, and other intangible assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil and natural gas resources are not amortised. When the decision to develop a particular area is made, related intangible exploration and evaluation assets are reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or group of units, expected to benefit from the combination's synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. In acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred tax is reflected in the accounts based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group of CGUs on whose tax depreciation basis the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line method.

### Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to acquire mineral interests in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells and evaluation expenditures are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas prospects. Geological and geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons, the previously capitalised costs are evaluated for derecognition or tested for impairment. Any derecognition or impairment is classified as Exploration expenses in the Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred to Property, plant and equipment at the time of sanctioning of the development project. The timing from evaluation of a discovery until a project is sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery, whether a host government agreement is in place, the complexity of the project and the financial robustness of the project. For onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund a portion of the selling partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected in the Consolidated financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain or loss recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying amount of the asset. If the consideration exceeds the carrying amount of the asset, the excess amount is reflected in the Consolidated statement of income under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with only immaterial cash considerations are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

### Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether a major capital expenditure can be justified, will remain capitalised during the evaluation phase for the findings on the exploration wells. Thereafter it will be considered a trigger for impairment evaluation of the well if no development decision is planned for the near future, and there moreover are no concrete plans for future drilling in the licence. Judgements as to whether these expenditures should remain capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the operating income for the period.

102 Equinor, Annual Report on Form 20-F 2022

| (in USD million) | Exploration expenses | Acquisition costs - oil and gas prospects | Goodwill | Other | Total |
| --- | --- | --- | --- | --- | --- |
| Cost at 1 January 2022 | 1,958 | 2,670 | 1,467 | 722 | 6,816 |
| Additions | 227 | 4 | 36 | 57 | 324 |
| Disposals at cost | (10) | (50) | 0 | 1 | (58) |
| Transfers | (227) | (516) | 0 | (239) | (982) |
| Expensed exploration expenditures previously capitalised | (283) | (59) | 0 | 0 | (342) |
| Impairment of goodwill | 0 | 0 | (3) | 0 | (3) |
| Foreign currency translation effects | (65) | (14) | (121) | (13) | (213) |
| Cost at 31 December 2022 | 1,599 | 2,035 | 1,380 | 528 | 5,542 |
| Accumulated depreciation and impairment losses at 31 December 2022 1) |  |  |  | (384) | (384) |
| Carrying amount at 31 December 2022 | 1,599 | 2,035 | 1,380 | 144 | 5,158 |

| (in USD million) | Exploration expenses | Acquisition costs - oil and gas prospects | Goodwill | Other | Total |
| --- | --- | --- | --- | --- | --- |
| Cost at 1 January 2021 | 2,261 | 3,932 | 1,481 | 831 | 8,505 |
| Additions | 191 | 36 | 61 | 90 | 378 |
| Disposals at cost | (22) | 1 | (3) | (29) | (53) |
| Transfers | (432) | (1,137) | 0 | (161) | (1,730) |
| Expensed exploration expenditures previously capitalised | (19) | (152) | 0 | 0 | (171) |
| Impairment of goodwill | 0 | 0 | (1) | 0 | (1) |
| Foreign currency translation effects | (21) | (10) | (70) | (10) | (111) |
| Cost at 31 December 2021 | 1,958 | 2,670 | 1,467 | 722 | 6,816 |
| Accumulated depreciation and impairment losses at 31 December 2021 1) |  |  |  | (364) | (364) |
| Carrying amount at 31 December 2021 | 1,958 | 2,670 | 1,467 | 358 | 6,452 |

1) See note 14 Impairments.

Goodwill of USD 1,380 million per 31 December 2022 mainly consist of technical goodwill related to business acquisitions in 2019, USD 550 million in the Exploration & Production Norway area and USD 410 million in the Marketing Midstream & Processing area.

The table below shows the aging of capitalised exploration expenditures.

| (in USD million) | 2022 | 2021 |
| --- | --- | --- |
| Less than one year | 250 | 234 |
| Between one and five years | 340 | 692 |
| More than five years | 1,009 | 1,033 |
| Total capitalised exploration expenditures | 1,599 | 1,958 |

Equinor, Annual Report on Form 20-F 2022 103

The table below shows the components of the exploration expenses.

| (in USD million) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Exploration expenditures | 1,087 | 1,027 | 1,371 |
| Expensed exploration expenditures previously capitalised | 342 | 171 | 2,506 |
| Capitalised exploration | (224) | (194) | (394) |
| Exploration expenses | 1,205 | 1,004 | 3,483 |

## 14 Impairments

### Accounting policies

#### Impairment of property, plant and equipment, right-of-use assets and intangible assets including goodwill

Equinor assesses individual assets or groups of assets for impairment whenever events or changes 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 largely independent of the cash inflows from other parts of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances suggest that the carrying amount of the asset or CGU to which the unproved properties belong may exceed its recoverable amount, and at least once a year. Exploratory wells that have found reserves, but where classification of those reserves as proved depends on whether major capital expenditure can be justified or where the economic viability of that major capital expenditure depends on the successful completion of further exploration work, will remain capitalised during the evaluation phase for the exploratory finds. If, following evaluation, an exploratory well has not found proved reserves, the previously capitalised costs are tested for impairment. After the initial evaluation phase for a well, it will be considered a trigger for impairment testing of a well if no development decision is planned for the near future and there is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Impairment is determined by assessing the recoverable amount of the CGU, or group of units, to which the goodwill relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred tax provision in a post-tax transaction on the NCS, the remaining amount of the deferred tax provision will factor into the impairment evaluations.

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 the nature of the impaired assets as either exploration assets (intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets), respectively.

#### Measurement

The recoverable amount applied in Equinor's impairment assessments is normally estimated value in use. Equinor may also apply the assets' fair value less cost of disposal as the recoverable amount when such a value is available, reasonably reliable, and based on a recent and comparable transaction.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions and economic conditions in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs with an expected useful life or timeline for production of expected oil and natural gas reserves extending beyond five years, including planned onshore production from shale assets with a long development and production horizon, the forecasts reflect expected production volumes, and the related cash flows include project or asset specific estimates reflecting the relevant period. Such estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted using a real post-tax discount rate which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a monetary adjustment to the projects' cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is adjusted for risk that influences the expected cash flow of a project and which is not part of the project itself. The use of post-tax

104 Equinor, Annual Report on Form 20-F 2022

discount rates in determining value in use does not result in a materially different determination of the need for, or the amount of, impairment that would be required if pre-tax discount rates had been used.

#### Impairment reversals

A previously recognised impairment loss is reversed 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. A reversal cannot exceed the carrying amount of the asset or CGU that would have been reflected, net of depreciation, if no impairment loss had been recognised in prior periods. Impairment of unsuccessful wells is reversed only to the extent that conditions for impairment are no longer present. Previously recognised impairments of goodwill are not reversed in future periods.

#### Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a high degree of judgement and may to a large extent depend upon the selection of key assumptions about the future. In Equinor's line of business, judgement is involved in determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product pricing, management actions and other factors may over time lead to changes in CGUs such as splitting one original CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic factors such as future commodity prices and discount rates, and uncertainty in asset specific factors such as reserve estimates and operational decisions impacting the production profile or activity levels for our oil and natural gas properties. Changes in foreign currency exchange rates will also affect value in use, especially for assets on the NCS, where the functional currency is NOK. When estimating the recoverable amount, the expected cash flow approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used in the estimated future cash flows. For example, climate-related matters (see also Note 3 Consequences of initiatives to limit climate changes) are expected to have a pervasive effect on the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-related levies, and other matters with mainly mid-term and long-term effects. These effects have been factored into the price assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor's, market participants' and other external sources' assumptions about the future and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires long-term assumptions to be made concerning a number of economic factors such as future market prices, refinery margins, foreign currency exchange rates and future output, discount rates, impact of the timing of tax incentive regulations, and political and country risk among others. Long-term assumptions for major economic factors are made at a group level, and there is a high degree of reasoned judgement involved in establishing these assumptions, in determining other relevant factors such as forward price curves, in estimating production outputs, and in determining the ultimate terminal value of an asset.

#### Net impairments/(reversal of impairments)

| Full year (in USD million) | Property, plant and equipment |  |  | Intangible assets |  |  | Total |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 |
| Producing and development assets 1) | (3,313) | 1,285 | 5,671 | (26) | (2) | 680 | (3,339) | 1,283 | 6,351 |
| Goodwill 1) |  |  |  | 3 | 1 | 42 | 3 | 1 | 42 |
| Other intangible assets 1) |  |  |  | 0 | 0 | 8 | 0 | 0 | 8 |
| Acquisition costs related to oil and gas prospects 2) |  |  |  | 85 | 154 | 657 | 85 | 154 | 657 |
| Total net impairments/(reversals) recognised for Property, plant and equipment and Intangible assets | (3,313) | 1,285 | 5,671 | 62 | 154 | 1,386 | (3,251) | 1,439 | 7,057 |

1) In addition, impairments in 2022 related to equity accounted investments amounted to USD 832 million, please refer to note 6 Acquisitions and disposals regarding the effects of the decision to exit Russia. The total net impairment reversals recognised under IAS 36 Impairment of assets in 2022 amount to USD 2,504 million.

2) Subject to impairment assessment under the successful efforts' method (IFRS 6 Exploration and Evaluation of Mineral Resources) and classified as exploration expenses in the income statement.

Equinor, Annual Report on Form 20-F 2022 105

For impairment purposes, the asset's carrying amount is compared to its recoverable amount. The table below describes, per area, the Producing and development assets being impaired/(reversed), net impairment/(reversal), and the carrying amount after impairment.

| (in USD million) | At 31 December 2022 |  | At 31 December 2021 |  |
| --- | --- | --- | --- | --- |
|  | Carrying amount after impairment | Net impairment loss/(reversal) | Carrying amount after impairment | Net impairment loss/(reversal) |
| Exploration & Production Norway | 3,201 | (819) | 5,379 | (1,102) |
| Exploration & Production USA - onshore | 546 | (204) | 1,979 | 48 |
| Exploration & Production USA - offshore Gulf of Mexico | 2,691 | (882) | 798 | 18 |
| Europe and Asia | 1,551 | 295 | 1,566 | 1,609 |
| Marketing, Midstream & Processing | 1,416 | (895) | 868 | 716 |
| Other | 30 | 0 | 20 | (7) |
| Total | 9,435 | (2,505) | 10,611 | 1,283 |

106 Equinor, Annual Report on Form 20-F 2022

#### Exploration & Production Norway

In 2022, the net impairment reversal was mainly caused by increased price estimates and changed gas export strategy. In 2021, the net impairment reversal was mainly due to increased price estimates and an upward reserve revision.

#### Exploration & Production USA - onshore

In 2022, the impairment reversal was caused by increased gas price assumptions, while in 2021 the net impairment was caused by revision of reserves and sale of an asset.

#### Exploration & Production USA - offshore Gulf of Mexico

In 2022, the impairment reversal was caused by increased price assumptions and higher reserves estimates, while in 2021, the impairment was due to a negative reserve revision.

#### Exploration & Production International - Europe and Asia

In 2022, the net impairment was mainly caused by the decision to exit Russia (see note 6 Acquisitions and disposals). This was to a large extent offset by a reversal on Mariner in the UK mainly due to optimisation of the production profile and higher prices, supported by a slight increase in reserves estimates. In 2021, the net impairment was mainly caused by downward reserve revisions partially offset by higher prices.

#### Marketing, Midstream & Processing

In 2022 the net impairment reversal was mainly related to increased refinery margin assumptions, while in 2021, the impairment losses were caused by increased CO2 fees and - quotas on a refinery and a classification to held for sale.

#### Accounting assumptions

Management's future commodity price assumptions and currency assumptions are applied when estimating value in use. While there are inherent uncertainties in the assumptions, the commodity price assumptions as well as currency assumptions reflect management's best estimate of the price and currency development over the life of the Group's assets based on its view of relevant current circumstances and the likely future development of such circumstances, including energy demand development, energy and climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks, technology and cost development and other factors. Management's best estimate also takes into consideration a range of external forecasts.

Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon economy, future supply actions by OPEC+ and other factors. The management's analysis of the expected development in drivers for the different commodity markets and exchange rates resulted in changes in the long-term price assumptions with effect from the third quarter of 2022. The main changes with effect for impairment and impairment reversal assessments are disclosed in the table below as price-points on price-curves. Previously applied price-points from the third quarter of 2021 up to and including the second quarter of 2022 are provided in brackets.

| Year | 2025 |  | 2030 |  | 2040 |  | 2050 |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Prices in real term 1) |  |  |  |  |  |  |  |  |
| Brent Blend (USD/bbl) | 75 | (70) | 75 | (75) | 70 | (69) | 65 | (64) |
| European gas (USD/MMBtu) - TTF 2) | 20.0 | (7.3) | 9.5 | (6.8) | 9.0 | (8.2) | 9.0 | (7.5) |
| Henry Hub (USD/MMBtu) | 4.0 | (3.3) | 3.7 | (3.4) | 3.7 | (3.6) | 3.7 | (3.6) |
| Electricity Germany (EUR/MWh) | 115 | (65) | 70 | (62) | 57 | (64) | 57 | (64) |
| EU ETS (EUR/tonne) | 80 | (61) | 80 | (70) | 105 | (89) | 130 | (108) |

2) As from the third quarter 2022, TTF is applied as the main reference price for European gas. Updated price-points for the previously applied NBP correspond to the disclosed updated price-points for TTF. Previously applied comparable prices for NBP are 7.4, 6.9, 8.3 and 7.6 for 2025, 2030, 2040 and 2050 respectively.

Climate considerations are included in the impairment calculations directly by estimating the CO2 taxes in the cash flows. Indirectly, the expected effect of climate change is also included in the estimated commodity prices where supply and demand are considered. The prices also have effect on the estimated production profiles and economic cut-off of the projects. Furthermore, climate considerations are a part of the investment decisions following Equinor's strategy and commitments to the energy transition.

Norway's Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO2 tax (the total of EU ETS + Norwegian CO2 tax) in Norway to 2,000 NOK/tonne in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor, Annual Report on Form 20-F 2022 107

To reflect that carbon will have a cost for all our assets the current best estimate is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where Equinor has not established specific estimates.

The long-term NOK currency exchange rates are expected to be unchanged compared to previous long-term assumptions. The NOK/USD rate from 2025 and onwards is kept at 8.50, the NOK/EUR at 10.0. The USD/GBP rate is kept at 1.35.

The base discount rate applied in value in use calculations is 5.0% real after tax. The discount rate is derived from Equinor's weighted average cost of capital. For projects, mainly within the REN segment in periods with fixed low risk income, a lower discount rate will be considered. A derived pre-tax discount rate is in the range of 42-102% for E&P Norway, 8-9% for E&P International, 6-9% for E&P USA and 7% for MMP depending on the asset's characteristics, such as specific tax treatments, cash flow profiles, and economic life. The pre-tax rates for 2021 were 18-32%, 5-9%, 6-7% and 7% respectively.

### **Sensitivities**

Commodity prices have historically been volatile. Significant downward adjustments of Equinor's commodity price assumptions would result in impairment losses on certain producing and development assets in Equinor's portfolio including intangible assets that are subject to impairment assessment, while an opposite adjustment could lead to impairment-reversals. If a decline in commodity price forecasts over the lifetime of the assets was 30%, considered to represent a reasonably possible change, the impairment amount to be recognised could illustratively be in the region of USD 14 billion before tax effects. See note 3 Consequences of initiatives to limit climate changes for possible effect of using the prices in a 1.5°C compatible Net Zero Emission by 2050 scenario and the Announced Pledges Scenario as estimated by the International Energy Agency (IEA).

These illustrative impairment sensitivities, both based on a simplified method, assumes no changes to input factors other than prices; however, a price reduction of 30% or those representing Net Zero Emission scenario and Announced Pledges Scenario is likely to result in changes in business plans as well as other factors used when estimating an asset's recoverable amount. These associated changes reduce the stand-alone impact on the price sensitivities. Changes in such input factors would likely include a reduction in the cost level in the oil and gas industry as well as offsetting foreign currency effects, both of which have historically occurred following significant changes in commodity prices. The illustrative sensitivities are 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 licence 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 development plans.

108 Equinor, Annual Report on Form 20-F 2022

# 15 Joint arrangements and associates

## Accounting policies

### Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an activity subject to joint control, i.e. when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such joint arrangements are classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor considers the nature of products and markets of the arrangements and whether the substance of the agreements is that the parties involved have rights to substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have rights to the net assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues and expenses in joint operations in accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope of IFRS 11 Joint Arrangements have been classified as joint operations. A considerable number of Equinor's unincorporated joint exploration and production activities are conducted through arrangements that are not jointly controlled, either because unanimous consent is not required among all parties involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through agreement between more than one combination of involved parties are considered to be outside the scope of IFRS 11, and these activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for financial information related to Equinor's participation in joint operations within upstream activities.

Joint ventures, in which Equinor has rights to the net assets, are accounted for using the equity method. These currently include the majority of Equinor's investments in the Renewables (REN) operating and reporting segment. Equinor's participation in joint arrangements that are joint ventures and investments in companies in which Equinor has neither control nor joint control but has the ability to exercise significant influence over operating and financial policies, are classified as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost plus post-acquisition changes in Equinor's share of net assets of the entity, less distributions received and less any impairment in value of the investment. The part of an equity accounted investment's dividend distribution exceeding the entity's carrying amount in the Consolidated balance sheet is reflected as income from equity accounted investments in the Consolidated statement of income. Equinor will subsequently only reflect the share of net profit in the investment that exceeds the dividend already reflected as income. The Consolidated statement of income reflects Equinor's share of the results after tax of an equity accounted entity, adjusted to account for depreciation, amortisation and any impairment of the equity accounted entity's assets based on their fair values at the date of acquisition. Net income/loss from equity accounted investments is presented as part of Total revenues and other income, as investments in and participation with significant influence in other companies engaged in energy-related business activities is considered to be part of Equinor's main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the activity constitutes a business, are accounted for in accordance with the requirements applicable to business combinations. Please refer to note 6 Acquisitions and disposals for more details on acquisitions.

### Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These costs are allocated on an hours' incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are reimbursed and only Equinor's share of the statement of income and balance sheet items related to Equinor-operated joint operations and similar arrangements are reflected in the Consolidated statement of income and the Consolidated balance sheet.

Equinor, Annual Report on Form 20-F 2022 109

## Joint ventures and other equity accounted investments

| (in USD million) | 2022 | 2021 |
| --- | --- | --- |
| Net investments at 1 January | 2,686 | 2,270 |
| Net income/(loss) from equity accounted investments | 620 | 259 |
| Impairment 1) | (832) | 0 |
| Acquisitions and increase in capital | 337 | 475 |
| Dividend and other distributions | (210) | (230) |
| Other comprehensive income/(loss) | 384 | (58) |
| Divestments, derecognition and decrease in paid in capital | (22) | (31) |
| Other | (205) | 1 |
| Net investments at 31 December | 2,758 | 2,686 |

1) Related to investments in Russia, see also note 6 Acquisitions and disposals.

Equity accounted investments consist of several investments, none above USD 0.6 billion. None of the investments are significant on an individual basis. Voting rights corresponds to ownership.

## 16 Financial investments and financial receivables

### Non-current financial investments

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Bonds | 1,448 | 1,822 |
| Listed equity securities | 794 | 1,131 |
| Non-listed equity securities | 491 | 393 |
| Financial investments | 2,733 | 3,346 |

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.

110 Equinor, Annual Report on Form 20-F 2022

#### Non-current prepayments and financial receivables

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Interest-bearing financial receivables | 1,658 | 707 |
| Other interest-bearing receivables | 66 | 276 |
| Prepayments and other non-interest-bearing receivables | 339 | 104 |
| Prepayments and financial receivables | 2,063 | 1,087 |

Interest-bearing financial receivables consist primarily of receivables from related parties, see note 27 Related parties. Other interest-bearing receivables primarily relate to financial sublease and tax receivables.

#### Current financial investments

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Time deposits | 12,373 | 7,060 |
| Interest-bearing securities | 17,504 | 14,186 |
| Financial investments | 29,876 | 21,246 |

At 31 December 2022, current financial investments include USD 410 million in investment portfolios held by Equinor's captive insurance company which mainly are accounted for using fair value through profit or loss. The corresponding balance at 31 December 2021 was USD 300 million.

For information about financial instruments by category, see note 28 Financial instruments and fair value measurement.

Equinor, Annual Report on Form 20-F 2022 111

## 17 Inventories

### Accounting policies

#### Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable value. Cost is determined by the first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing expenses. With effect from 2022, due to the evolving trading business in the Group, fair value less cost to sell (FVLCS) is considered the appropriate measurement basis for commodity inventories held for trading purposes, with subsequent changes in FV recognised in the Consolidated statement of income under Other revenues. These inventories are categorised within level 2 of the fair value hierarchy. Comparative numbers have not been restated due to materiality.

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Crude oil | 2,115 | 2,014 |
| Petroleum products | 451 | 315 |
| Natural gas | 127 | 642 |
| Commodity inventories at the lower of cost and net realisable value | 2,693 | 2,971 |
| Natural gas held for trading purposes measured at fair value | 1,994 | 0 |
| Other | 517 | 424 |
| Total inventories | 5,205 | 3,395 |

The write-down of inventories from cost to net realisable value amounted to an expense of USD 143 million and USD 77 million in 2022 and 2021, respectively. Inventories held for trading purposes consist of gas stores held by Danske Commodities.

112 Equinor, Annual Report on Form 20-F 2022

## 18 Trade and other receivables

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Trade receivables from contracts with customers 1) | 15,213 | 13,266 |
| Other current receivables | 992 | 1,436 |
| Collateral receivables 2) | 3,468 | 1,576 |
| Receivables from participation in joint operations and similar arrangements | 661 | 491 |
| Receivables from equity accounted associated companies and other related parties | 1,276 | 423 |
| Total financial trade and other receivables | 21,611 | 17,192 |
| Non-financial trade and other receivables | 841 | 736 |
| Trade and other receivables | 22,452 | 17,927 |

1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses.

2) Mainly related to cash paid as security for a portion of Equinor's credit exposure.

For more information about the credit quality of Equinor's counterparties, see note 4 Financial risk and capital management. For currency sensitivities, see note 28 Financial instruments and fair value measurement.

## 19 Cash and cash equivalents

### Accounting policies

Cash and cash equivalents are accounted for at amortised cost and 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 acquisition date. Contractually mandatory deposits in escrow bank accounts are included as restricted cash if the deposits are provided as part of the Group's operating activities and therefore are deemed as held for the purpose of meeting short-term cash commitments, and the deposits can be released from the escrow account without undue expenses.

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Cash at bank available | 2,220 | 2,673 |
| Time deposits | 836 | 1,906 |
| Money market funds | 3,106 | 2,714 |
| Interest-bearing securities | 3,276 | 4,740 |
| Restricted cash, including collateral deposits | 6,140 | 2,093 |
| Cash and cash equivalents | 15,579 | 14,126 |

Restricted cash at 31 December 2022 includes collateral deposits of USD 6,128 million related to trading activities. Correspondingly, collateral deposits at 31 December 2021 were USD 2,069 million. Collateral deposits are related to certain requirements of exchanges where Equinor is trading. The terms and conditions related to these requirements are determined by the respective exchanges.

Equinor, Annual Report on Form 20-F 2022 113

## 20 Shareholders' equity and dividends

|  | Number of shares | NOK per value | NOK | USD |
| --- | --- | --- | --- | --- |
| Share capital at 1 January 2022 | 3,257,687,707 | 2.50 | 8,144,219,267.50 | 1,163,987,792 |
| Capital reduction | (82,217,548) | 2.50 | (205,543,870.00) | (21,951,527) |
| Share capital at 31 December 2022 | 3,175,470,159 | 2.50 | 7,938,675,397.50 | 1,142,036,265 |

|  | Number of shares | NOK per value | Common Stock |
| --- | --- | --- | --- |
| Authorised and issued | 3,175,470,159 | 2.50 | 7,938,675,397.50 |
| Treasury shares |  |  |  |
| Share buy-back programme | (42,619,172) | 2.50 | (106,547,930.00) |
| Employees share saving plan | (10,908,717) | 2.50 | (27,271,792.50) |
| Total outstanding shares | 3,121,942,270 | 2.50 | 7,804,855,675.00 |

Equinor ASA has only one class of shares and all shares have voting rights. The holders of shares are entitled to receive dividends as and when declared and are entitled to one vote per share at the annual general meeting of the company.

### Dividend

During 2022, dividend for the third and for the fourth quarter of 2021 and dividend for the first and second quarter of 2022 were settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated balance sheet. The Consolidated statement of changes in equity shows declared dividend in the period (retained earnings). Dividend declared in 2022 relates to the fourth quarter of 2021 and to the first three quarters of 2022.

On 7 February 2023, the board of directors proposed an ordinary cash dividend for the fourth quarter of 2022 of USD 0.30 per share and an extraordinary cash dividend of USD 0.60 per share (subject to annual general meeting approval). The Equinor share will trade ex-dividend 11 May 2023 on Oslo Børs and for ADR holders on New York Stock Exchange. Record date will be 12 May 2023 and payment date will be 25 May 2023.

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Dividends declared | 7,549 | 2,041 |
| USD per share or ADS | 2.4000 | 0.6300 |
| Dividends paid | 5,380 | 1,797 |
| USD per share or ADS | 1.6800 | 0.5600 |
| NOK per share | 16.4837 | 4.8078 |

### Accounting policies

#### Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme or has placed an irrevocable order with a third party for Equinor shares to be acquired in the market, such shares are reflected as a reduction in equity as treasury shares. Treasury shares are not included in the weighted average number of ordinary shares outstanding in the calculation of Earnings per share. The remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and provisions.

#### Share buy-back programme

114 Equinor, Annual Report on Form 20-F 2022

![exhibit1p1i0](exhibit1p1i0.jpg) **ARTICLES OF ASSOCIATIONfor Equinor ASA(Effective from 11 May 2022)Article 1**The company's name is Equinor ASA. The company is a public limited company.The objective of Equinor ASA is to develop, produce and market various forms of energy and derived products and services, as well as other business. The activities may also be carried out through participation in or cooperation with other companies.**Article 2**The company's registered office is located in the municipality of Stavanger.**Article 3**The share capital of the company is NOK 7,938,675,397.50 divided into 3,175,470,159 shares of NOK 2.50 each.**Article 4**The board of directors of the company shall consist of 9-11 members. The board of directors, including the chair and the deputy chair, shall be elected by the corporate assembly. Deputy directors may be elected in respect of the directors elected by and among the employees in accordance with regulations stipulated in or pursuant to the Public Limited Companies Act. The board of directors may be elected for up to two years.**Article 5**The chair of the board alone, the chief executive officer alone or any two directors jointly may sign for the company. The board may grant powers of procuration.Page 1 of 3

![exhibit1p2i0](exhibit1p2i0.jpg) Security Classification: Open - Status: Final

Page 2 of 3**Article 6**The board shall appoint the company's chief executive officer and stipulate his/her salary.**Article 7**The company shall have a corporate assembly consisting of 18 members and deputy members. The annual general meeting shall elect 12 members and four deputy members for these 12 members. Six members and deputies for these six members shall be elected by and among the employees of the company in accordance with regulations stipulated in or pursuant to the Public Limited Companies Act.The corporate assembly shall elect a chair and deputy chair from and among its members. The corporate assembly shall hold at least 2 meetings annually.**Article 8**The annual general meeting shall be held each year by the end of June. Annual general meetings shall be held in the municipality of Stavanger or Oslo.**Article 9**Documents relating to matters to be dealt with by the company's annual general meeting, including documents which by law shall be included in or attached to the notice of the annual general meeting, do not need to be sent to the shareholders if the documents are accessible on the company's home pages. A shareholder may nevertheless request that documents, which relate to matters to be dealt with by the company's annual general meeting, be sent to him/her.The annual general meeting shall address and decide the following matters:1. Adoption of the annual report and accounts, including the declaration of dividends.2. Any other matters which are referred to the annual general meeting by statute law or the articles of association.Shareholders are able to vote in writing, including through electronic communication, in a period before the general meeting. The board of directors can stipulate guidelines for such advance voting. It must be stated in the notice for the general meeting which guidelines have been set.**Article 10**The company shall be responsible for the marketing and sale of the state's petroleum which is produced from the state's direct financial interest (SDFI) on the Norwegian continental shelf, as well as for the marketing and sale of petroleum paid as royalty in accordance with the Petroleum Act of 29 November 1996 No 72. The annual general meeting of the company may by simple majority decide on further instructions concerning the marketing and sale.

![exhibit1p2i0](exhibit1p2i0.jpg) Security Classification: Open - Status: Final

Page 3 of 3**Article 11**The duties of the nomination committee are to submit a recommendation to1. the annual general meeting for the election of shareholder-elected members and deputy members of the corporate assembly and remuneration of members of the corporate assembly;2. the annual general meeting for the election and remuneration of members of the nomination committee;3. the corporate assembly for the election of shareholder-elected members of the board of directors and remuneration of the members of the board of directors; and4. the corporate assembly for the election of the chair and the deputy chair of the corporate assembly.The chair of the board of directors and the president and chief executive officer shall be invited, without having the right to vote, to attend at least one meeting of the nomination committee before it makes its final recommendation.The nomination committee consists of four members who must be shareholders or representatives of shareholders and who shall be independent of the board of directors and the company's management. The members of the nomination committee, including the chair, shall be elected by the annual general meeting. The chair of the nomination committee and one other member shall be elected from among the shareholder -elected members of the corporate assembly. The members of the nomination committee are normally elected for a term of two years. Personal deputy members for one or more of the nomination committee's members may be elected in accordance with the same criteria as described above. A deputy member only meets for the member if the appointment of that member terminates before the term of office has expired.If the appointment of a member of the nomination committee terminates before the term of office has expired, the election of a new member can be deferred until the next general meeting of shareholders. If that member has a personal deputy member, the deputy member will function as a member of the nomination committee until a new election has been held. If the appointment of the chair terminates before his/her term of office has expired, the committee elects from among its members a new chair to hold office until the next general meeting of shareholders.The annual general meeting stipulates the remuneration to be paid to members of the nomination committee. The company will cover the costs of the nomination committee.The general meeting may adopt instructions for the nomination committee.

EXHIBIT 2.1

#### DESCRIPTION OF SECURITIES

#### REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT
As of 31 December 2022, Equinor ASA ("Equinor," the "company," "we," "us," and "our") had

the following series of securities registered pursuant to Section 12(b) of the Act:

#### Title of each class

#### Trading symbol(s)

#### Name of each exchange on

#### which registered
American Depositary Shares

EQNR

New York Stock Exchange

Ordinary shares, nominal value of

NOK 2.50 each

New York Stock Exchange\*

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

Shares, pursuant to the requirements of the Securities and Exchange Commission (the "SEC")

Capitalized terms used but not defined herein have the meanings given to them in our annual

report on Form 20-F for the fiscal year ended 31 December 2022 (the "Annual Report").

#### ORDINARY SHARES

#### General
This is a summary of material information relating to our share capital, including summaries of

certain provisions of our articles of association and the applicable Norwegian law in effect at

the date of the Annual Report, including the Norwegian Public Limited Companies Act. You

should refer to the full text of our articles of association in English, which is filed as Exhibit 1 to

the Annual Report.

#### Share Capital
As of 31 December 2022, our authorised share capital was NOK 7,938,675,397.50, divided

into 3,175,470,159 ordinary shares, with a nominal value of NOK 2.50 per ordinary share. The

ordinary shares are in registered form. As of 31 December 2022, 3,121,942,270 ordinary

shares were issued and outstanding (excluding repurchased shares).

We have only one class of shares and all shares have voting rights. The holders of shares are

entitled to receive dividends as and when declared and are entitled to one vote per share at

the annual general meeting of the company.

#### Authorisation to Acquire Our Own Shares
The annual general meeting authorised on 11 May 2022, the board of directors to acquire

Equinor ASA shares in the market, on behalf of the company, with a nominal value of up to

NOK 187,500,000. The board of directors is authorised to decide at what price within minimum

and maximum prices per share of NOK 50 and NOK 1,000, respectively, and at what time such

acquisition shall take place. Shares acquired pursuant to this authorisation can only be used

for annulment through a reduction of the company's share capital, pursuant to the Norwegian

Public Limited Liability Companies Act section 12-1. The authorization is valid until the next

annual general meeting, but not beyond 30 June 2023.

Further, on 11 May 2022, the annual general meeting authorised the board of directors to

acquire Equinor ASA shares in the market, on behalf of the company, with a nominal value of

up to NOK 38,000,000 to continue operation of the share savings plan for employees. The

board of directors is authorised to decide the price within minimum and maximum prices per

share of NOK 50 and NOK 1,000, respectively, and the time of such acquisition. Shares

acquired pursuant to this authorisation may only be used for sale and transfer to employees of

the Equinor group as a part of the group's share savings plan and long-term incentive plan, as

approved by the board of directors. The authorization is valid until 30 June 2023.

#### General Meetings
In accordance with Norwegian law, our annual general meeting of shareholders is required to

be held each year on or prior to June 30. The meeting addresses and decides adoption of the

annual report and accounts, including the distribution of any dividend and any other matters

required by law or the articles of association.

Norwegian law requires that written notice of general meetings be sent to all shareholders

whose addresses are known at least 21 days prior to the date of the meeting. A shareholder

may vote at the general meeting either in person or by proxy.

Norwegian law does not require us to send proxy forms to our shareholders for general

meetings as long as such proxy forms are made available on our webpage and the notice for

general meetings includes the link to such website. However, we plan to continue to send

proxy forms with future notices of general meetings.

Our articles of association provide that shareholders may vote in writing, including through

electronic communication, during a specified period before the general meeting. Our board of

directors adopted guidelines for such advance voting in March 2012, and these guidelines are

described in the notices of the annual general meetings.

In addition to the annual general meeting, extraordinary general meetings of shareholders may

be held if deemed necessary by the board of directors, the corporate assembly or the Chair of

the corporate assembly. An extraordinary general meeting must also be convened for the

consideration of specific matters at the written request of our auditors or of shareholders

representing a total of at least 5% of the outstanding share capital.

#### Voting Rights
All of our ordinary shares carry equal right to vote at general meetings. Except as otherwise

provided, decisions which shareholders are entitled to make pursuant to Norwegian law or our

articles of association may be made by a simple majority of the votes cast. In the case of

elections, the persons who obtain the most votes cast are deemed elected. However, certain

decisions, including, but not limited to resolutions to waive preferential rights in connection with

any share issue, to approve a merger or demerger, to amend our articles of association, to

authorise an increase or reduction in our share capital, to issue convertible loans and certain

other financial instruments or to authorise the board of directors to purchase shares, must

receive the approval of at least two-thirds of the aggregate number of votes cast as well as

two-thirds of the share capital represented at a shareholders' meeting.

In general, in order to be entitled to vote, a shareholder must be registered as the owner of

shares in the share register kept by the Norway's central securities depository, referred to as

the VPS System (described below), or, alternatively, report and show evidence of its share

acquisition to us prior to the general meeting. With effect from 1 July 2023, the Norwegian

Public Limited Liability Companies Act will be amended so that only shareholders who are

registered in the VPS five business days prior to the general meeting will be able to attend and

vote at the general meeting.

Beneficial owners of shares which are registered in the name of a nominee are generally not

entitled to vote under Norwegian law, nor are any persons who are designated in the register

as holding such shares as nominees. The beneficial owners of American Depositary Shares

("ADS") are therefore only able to vote at meetings by surrendering their ADSs, withdrawing

their ordinary shares from the ADR depositary and registering their ownership of such ordinary

shares directly in our share register in the VPS System. Alternatively, the ADS holder may

instruct the ADR depositary to vote the ordinary shares underlying the ADSs on behalf of the

holder, provided that the ADS holder instructs the ADR depositary to execute a temporary

transfer of the underlying ordinary shares in the VPS System to the beneficial owner. Similarly,

beneficial owners of ordinary shares registered through other VPS-registered nominees may

not be able to vote their shares unless their ownership is reregistered in the name of the

beneficial owner prior to the relevant shareholders' meeting. With effect from 1 July 2023, the

Norwegian Public Limited Liability Companies Act will be amended so that beneficial owners of

ADSs will no longer need to surrender their ADSs, withdraw their ordinary shares from the

ADR depositary and register their ownership of such ordinary shares directly in our share

register in the VPS System, or arrange for a temporary transfer of the underlying ordinary

share to the beneficial owner, in order to be able to vote at our general meetings. However,

owners of ADSs who wish to attend and vote at our general meetings will, following 1 July

2023, need to give us notice of attendance at least two business days prior the general

meeting. The board of directors may, before notice of general meeting has been sent, decide

on a later deadline.

#### The Central Securities Depository and Transfer of Shares
Euronext Securities Oslo (Verdipapirsentralen ASA, "ES-OSL" or "VPS") is Norway's central

securities depository. It is a computerized bookkeeping system in which the ownership of, and

all transactions relating to, Norwegian listed shares must be recorded. Our share register is

operated through the VPS System.

All transactions relating to securities registered with the VPS System are made through

computerized book entries. No physical share certificates are or can be issued. The VPS

System confirms each entry by sending a transcript to the registered shareholder regardless of

beneficial ownership. To effect these entries, the individual shareholder must establish a

securities' account with a Norwegian account agent. Norwegian banks, the Central Bank of

Norway, authorised investment firms in Norway, and Norwegian branches of credit institutions

established within the European Economic Area are allowed to act as account agents.

The entry of a transaction in the VPS System is

*prima facie*

evidence in determining the legal

rights of parties as against the issuing company or a third party claiming an interest in the

subject security.

The VPS System is liable for any loss suffered as a result of faulty registration or an

amendment to, or deletion of, rights in respect of registered securities unless the error is

caused by matters outside the VPS' control, the consequences of which the VPS could not

reasonably be expected to avoid or overcome. Damages payable by the VPS may, however,

be reduced in the event of contributory negligence by the aggrieved party. A transferee or

assignee of shares may not exercise the rights of a shareholder with respect to his or her

shares unless that transferee or assignee has registered his or her shareholding or has

reported and shown evidence of such share acquisition and the acquisition of such shares is

not prevented by law, our articles of association or otherwise.

#### Amendments to our Articles of Association, including Variation of Rights
The affirmative vote of at least two-thirds of the votes cast and of the share capital represented

at the general meeting is required to amend our articles of association. Any amendment, or

other resolution, which would reduce any shareholder's right in respect of dividend payments

or other rights to our assets or restrict the transferability of shares requires a majority vote of at

least 90% of the aggregate share capital represented in a general meeting, as well as the

majority required for the amendment of the articles of association. Because the Norwegian

State, acting through the Ministry of Trade, Industry and Fisheries, holds more than two-thirds

of the shares in the company, it currently practically has the sole power to amend our articles

of association.

Certain types of changes in the rights of our shareholders require the consent of all affected

shareholders. If such resolutions only affect some of the shareholders, the resolutions require

the support of all affected shareholders, as well as the majority required for the amendment of

the articles of association.

#### Additional Issuances and Preferential Rights
If we issue any new shares, including bonus share issues, our articles of association must be

amended, which requires the same vote as other amendments to our articles of association. In

addition, under Norwegian law, our shareholders have a preferential right to subscribe to new

shares issued by us. The preferential rights to subscribe to an issue may be waived by a

resolution in a general meeting passed by the same percentage threshold required to approve

amendments to our articles of association.

The general meeting may, with a majority vote as described above, authorise the board of

directors to issue new shares, and to waive the preferential rights of shareholders in

connection with such issuances. Such authorisation may be effective for a maximum of two

years, and the total par value of the shares to be issued may not exceed 50% of the registered

share capital when the authorisation is registered in the Norwegian Register of Business

Enterprises.

The issuance of shares to holders who are citizens or residents of the United States upon the

exercise of preferential rights may require us to file a registration statement in the United

States under United States securities laws. If we decide not to file a registration statement,

these holders may not be able to exercise their preferential rights.

Under Norwegian law, bonus share issues may be distributed, subject to shareholder approval,

by transfer from our distributable equity. Any bonus issues may be effected either by issuing

shares or by increasing the par value of the shares outstanding.

#### Minority Rights
Norwegian law contains a number of protections for minority shareholders against oppression

by the majority including but not limited to those described in this paragraph Any shareholder

may petition the courts to have a decision of the general meeting declared invalid on the

grounds that it was unlawfully adopted or is otherwise in conflict with statute or the articles of

association of the company. In certain grave circumstances shareholders may require the

courts to dissolve the company as a result of such a decision. A shareholder may also demand

a dissolution if any of the company's bodies has adopted a decision which is suited to give

certain shareholders or others an unreasonable benefit at the expense of other shareholders or

the company.

Minority shareholders holding 5% or more of our share capital have a right to demand that we

hold an extraordinary general meeting to discuss or resolve specific matters. In addition, any

shareholder may demand that we place an item on the agenda for any general meeting if we

are notified at least within seven days before the deadline for convening the general meeting.

#### Mandatory Bid Requirement
Norwegian law requires any person, entity or consolidated group that acquires more than one-

third of the voting rights of a Norwegian company listed on a Norwegian regulated market,

such as the Oslo Stock Exchange ("OSE"), to make, within four weeks of such acquisition, an

unconditional general offer to acquire the remaining shares in that company. The mandatory

bid obligation ceases to apply if the person subject to the obligation disposes of the portion of

shares exceeding the mandatory bid threshold within such four week period. The party must

immediately notify the stock exchange and the company when it enters into an agreement to

acquire shares that will trigger the duty to make a mandatory offer. Until a bid is made, or a

sale is effective, the relevant party cannot vote the portion of its shares which exceeds the

mandatory bid threshold or exercise any rights of share ownership in respect of such shares,

other than the right to receive dividends and preferential rights in the event of a share capital

increase.

The offer is subject to approval by the Oslo Stock Exchange in its capacity as Norwegian

takeover supervisory authority before submission of the offer to the shareholders. The offer

must be in cash or contain a cash alternative at least equivalent to any other consideration

offered. The bid price shall be at least as high as the highest payment the offeror has made or

agreed to make in the six-month prior to the time the mandatory bid obligation was triggered,

but equal to the market price if it is clear that the market price was higher at the point the

mandatory bid obligation was triggered. The period for acceptance of the bid must be within

four and six weeks.

A shareholder that fails to make a bid within the four week period may not, as long as the

mandatory bid requirement applies and unless the remaining shareholders so approve,

exercise rights of share ownership with respect to all its shares other than the right to receive

dividends and preferential rights in the event of a share capital increase. In addition, the

takeover supervisory authority may impose a daily fine upon a shareholder who fails to make

the required offer. If no bid is made, and the period allowed for sale is exceeded, the takeover

supervisory authority may sell the shares under the rules governing forced sales.

Any person, entity or consolidated group that owns shares representing more than one-third of

the voting rights in a company is obliged to make an offer to acquire the remaining shares of

the company if the person, entity or consolidated group becomes the owner of shares

representing 40% or more of the voting rights in the company through an acquisition (repeated

mandatory offer obligation). The same applies if the shareholder becomes the owner of 50% or

more of the voting rights in the company through an acquisition.

#### Compulsory Acquisition
A shareholder who, directly or via subsidiaries, acquires shares representing more than 90% of

the total number of issued shares, as well as more than 90% of the total voting rights, has the

right to effect a compulsory acquisition for cash of any shares not already owned by the

majority shareholder (and each remaining minority shareholder of that company would have

the right to require the majority shareholder to effect a compulsory acquisition for cash of the

shares not already owned by such majority shareholder). A compulsory acquisition has the

effect that the majority shareholder becomes the owner of the shares of the minority

shareholders with immediate effect.

A majority shareholder who effects a compulsory acquisition is required to offer the minority

shareholders a specific price per share. The determination of the offer price is at the discretion

of the majority shareholder. However, where the shareholder, after making a mandatory or

voluntary offer, has acquired more than 90% of the voting shares of a company and a

corresponding proportion of the voting rights, and the shareholder completes a compulsory

acquisition of the remaining shares within three months after the expiry of the offer period, the

redemption price shall be determined on the basis of the offer price in the mandatory /

voluntary offer unless specific reasons indicate another price.

Should any minority shareholder not accept the offered price, such minority shareholder must

notify the majority shareholder within a specified period of not less than two months. If the

parties do not come to an agreement on the offer price, each party can request that the price

be set by the Norwegian courts. The cost of such court procedure would normally be charged

to the account of the majority shareholder, and the courts would have full discretion in

determining the consideration due to the minority shareholder as a result of the compulsory

acquisition on the basis of the true value of the company.

#### Our Directors and Corporate Assembly
We have a corporate assembly comprising 18 members. At the general meeting of

shareholders, two-thirds of the members of the corporate assembly are normally elected for a

term of two years, together with deputy members, while the remaining one-third, together with

deputy members, are elected by and from among our employees. There is no quorum

requirement, and nominees who receive the most votes are elected. Any shareholder at the

meeting may place nominations before the meeting. A member of the corporate assembly

(other than a member elected by employees) may be removed by the shareholders at any time

without cause.

We have a nomination committee that makes recommendations to the general meeting

regarding the election of shareholder-elected members of the corporate assembly and their

deputies. The committee consists of four members who must be shareholders or

representatives of shareholders and who must be independent of the board of directors and

the company's management. The members of the nomination committee, including the chair,

are elected by the annual general meeting. The chair of the committee and one other member

are elected among the shareholder-elected members of the corporate assembly. Each

member is elected for a two-year term.

Our articles of association provide that the board of directors consists of 9 to 11 directors. Our

directors are elected by our corporate assembly to the board of directors for a period of up to

two years and may also be removed from office by our corporate assembly. If requested by at

least one third of the members of the corporate assembly, up to one-third of the directors must

be employee representatives. Our nomination committee makes recommendations to the

corporate assembly regarding the election of shareholder-elected directors of the board and

their deputies (if any). Half of the corporate assembly members elected by the employees may

demand that the members of the board of directors be elected by the shareholder-elected

members of the corporate assembly and the employee-elected members of the corporate

assembly, each voting as a separate group. A director (other than a director elected directly by

the employee members) may be removed at any time by the corporate assembly without

cause.

The corporate assembly makes decisions by majority vote, and more than half must be present

for a quorum. If votes are tied, the chair of the meeting casts the deciding vote.

#### Payment of Dividends
We announce dividends on a quarterly basis. The board of directors approves first to third

quarter interim dividends based on an authorisation from the general meeting, while the annual

general meeting approves the fourth quarter (and total annual) dividend based on a proposal

from the board. When deciding the interim dividends and recommending the total annual

dividend level, the board of directors will take into consideration expected cash flow, capital

expenditure plans, financing requirements and appropriate financial flexibility.

In addition to cash dividends, Equinor might buy back shares as part of the distribution of

capital to the shareholders.

The shareholders at the annual general meeting may vote to reduce, but may not increase, the

dividend proposed by the board of directors. Equinor announces dividend payments in

connection with quarterly results. Payment of quarterly dividends is expected to take place

approximately four months after the announcement of each quarterly dividend.

Equinor declares dividends in USD. Dividends in NOK per share will be calculated and

communicated four business days after record date for shareholders at Oslo Børs.

#### Rights of Redemption and Repurchase of Shares
Our articles of association do not authorise the redemption of shares. In the absence of

authorisation, the redemption of shares may still be decided by a general meeting of

shareholders by a two-thirds majority under certain conditions. However, the share redemption

would, for all practical purposes, depend on the consent of all shareholders whose shares are

redeemed.

A Norwegian company may purchase its own shares if an authorisation to do so has been

given by a general meeting with the approval of at least two-thirds of the aggregate number of

votes cast as well as twothirds of the share capital represented at the meeting. The aggregate

par value of treasury shares held by the company must not exceed 10% of the company's

share capital and treasury shares may only be acquired if the company's distributable equity,

according to the latest adopted balance sheet, exceeds the consideration to be paid for the

shares. The authorisation by the general meeting cannot be given for a period exceeding two

years. See "Authorisation to Acquire Our Own Shares" above.

#### Shareholders' Votes on Certain Reorganizations
A decision to merge with another company or to demerge requires a resolution of our

shareholders at a general meeting passed by a two-thirds majority of the aggregate votes cast

as well as two-thirds of the aggregate share capital represented at the general meeting. A

merger plan or demerger plan signed by the board of directors along with certain other

required documentation must be made available to the shareholders on the company's website

at least one month prior to the shareholders' meeting.

#### Material Agreements
The general meeting must approve any material agreement between Equinor and a related

party. A material agreement comprises agreements under which the fair value of the

company's obligations exceed 2.5% of Equinor's total equity and liabilities, as presented on its

last approved annual financial statement. In voting on whether to grant such approval, voting

rights cannot be exercised in respect of shares held by the related party or by another

enterprise in the same company group. The general meeting's approval is not required for

agreements concluded with a wholly owned subsidiary or in the ordinary course of business

entered into on customary business terms and principles. Additional exceptions follow from the

Norwegian Public Limited Companies Act.

#### Liability of Directors
Our directors, the Chief Executive Officer and the members of the corporate assembly owe a

fiduciary duty to the company and its shareholders. Their fiduciary duty requires that they act in

our best interests when exercising their functions and exercise a general duty of loyalty and

care toward us. Their principal task is to safeguard the interests of the company.

Our directors, the Chief Executive Officer and the members of the corporate assembly can

each be held liable for any damage they negligently or willfully cause us. Norwegian law

permits the general meeting to exempt any such person from liability, but the exemption is not

binding if substantially correct and complete information was not provided at the general

meeting when the decision was taken. If a resolution to grant such exemption from liability or to

not pursue claims against such a person has been passed by a general meeting with a smaller

majority than that required to amend our articles of association, shareholders representing

more than 10% of the share capital or (if there are more than 100 shareholders) more than

10% of the number of shareholders may pursue the claim on our behalf and in our name. The

cost of any such action is not our responsibility, but can be recovered by any proceeds we

receive as a result of the action. If the decision to grant exemption from liability or to not pursue

claims is made by such a majority as is necessary to amend the articles of association, the

minority shareholders cannot pursue the claim in our name.

#### Indemnification of Directors and Officers
Neither Norwegian law nor our articles of association contain any provision concerning

indemnification by us of our board of directors.

#### Distribution of Assets on Liquidation
Under Norwegian law, a company may be wound-up by a resolution of the company's

shareholders in a general meeting passed by both a two-thirds majority of the aggregate votes

cast and two-thirds of the aggregate share capital represented at the meeting. The shares rank

equal in the event of a return on capital by the company upon a winding-up or otherwise.

#### Exchange Controls and Other Limitations Affecting Shareholders of a Norwegian

#### Company
Under the Norwegian foreign exchange control law, transfers of capital to and from Norway are

not subject to prior government approval. An exception applies to the physical transfer of

payments in currency exceeding certain thresholds, which must be declared to the Norwegian

custom authorities. This means that non-Norwegian resident shareholders may receive

dividend payments without Norwegian exchange control consent as long as the payment is

made through an institution licensed to provide payment services. Transferring banks are

required to submit reports on foreign currency exchange transactions into and out of Norway

into a central data register maintained by the Norwegian tax authorities. The Norwegian police,

tax authorities, customs and excise authorities, the Labour and Welfare Administration and the

Norwegian FSA have electronic access to the data in this register, and certain other entities

also have access such as the Norwegian central bank, the Norwegian Ministry of Foreign

Affairs and trustees in bankruptcy estates.

There are no restrictions affecting the rights of non-Norwegian residents or foreign owners to

hold or vote for our shares.

#### AMERICAN DEPOSITARY SHARES
This section summarizes certain material provisions of the Amended and Restated Deposit

Agreement, dated as of 4 February 2019, among Equinor ASA, JPMorgan Chase Bank, N.A.,

as depositary, and the holders from time to time of American Depositary Receipts ("ADRs").

We refer to this agreement as the "deposit agreement." We do not, however, describe every

aspect of the deposit agreement, which has been filed as an exhibit to our registration

statement on Form F-6, filed on 13 October 2022. You should read the deposit agreement for a

more detailed description of the terms of the ADRs. Additional copies of the deposit agreement

are available for inspection at the principal office of the depositary in New York, which is

presently located at 383 Madison Avenue, Floor 11, New York, New York, 10179.

#### American Depositary Receipts
The depositary issued ADRs evidencing American depositary shares pursuant to the deposit

agreement. Each ADS represents one ordinary share. Only persons in whose names ADRs

are registered on the books of the depositary will be treated by the depositary and us as

holders of ADRs. Unless certificated ADRs are specifically requested by you, all ADSs will be

issued on the books of our depositary in book-entry form and periodic statements will be

mailed to you which reflect your ownership interest in such ADSs. In our description,

references to American depositary receipts or ADRs shall include the statements you will

receive which reflect your ownership of ADSs.

You may hold ADSs either directly or indirectly through your broker or other financial institution.

If you hold ADSs directly, by having an ADS registered in your name on the books of the

depositary, you are an ADR holder. This description assumes you hold your ADSs directly. If

you hold the ADSs through your broker or financial institution nominee, you must rely on the

procedures of such broker or financial institution to assert the rights of an ADR holder

described herein. You should consult with your broker or financial institution to find out what

those procedures are.

Pursuant to the terms of the deposit agreement, registered holders of ADRs and all persons

holding any interest in ADRs and/or ADSs will be subject to any applicable disclosure

requirements regarding acquisition and ownership of, or interests in, ordinary shares as are

applicable pursuant to the terms of our articles of association or other provisions of or

governing the ordinary shares. In order to enforce such disclosure requirements, we reserve

the right to instruct ADR holders to deliver their ADSs for cancellation and withdrawal of the

deposited securities so as to permit us to deal directly with the holder thereof as a holder of

ordinary shares, and, by being a holder of an ADR, ADR holders are contractually agreeing to

comply with such instructions. The depositary has agreed, subject to the terms and conditions

of the deposit agreement, to cooperate with Equinor in its efforts to inform ADR holders of any

exercise by us of our rights to instruct ADR holders to deliver their ADSs for cancellation, and

to consult with and provide us with reasonable assistance without risk, liability or expense on

the part of the depositary, on the manner or manners in which we may enforce such rights with

respect to any ADR holder.

The depositary will keep, at its transfer office, (i) a register for the registration, registration of

transfer, combination and split-up of ADRs, which at all reasonable times will be open for

inspection by holders of ADRs and us for the purpose of communicating with holders in the

interest of our business or a matter relating to the deposit agreement and (ii) facilities for the

delivery and receipt of ADRs.

#### Deposit, Transfer and Withdrawal
The depositary has agreed that upon delivery of our ordinary shares (or rights to receive our

ordinary shares from us or any registrar, transfer agent, clearing agency or other entity

recording ordinary share ownership or transactions for us) to their custodian, which is currently

Nordea Bank Norge ASA, and in accordance with the procedures set forth in the deposit

agreement, the depositary will issue ADRs for delivery at its designated transfer office.

Upon surrender at the office of the depositary of an ADR for the purpose of withdrawal of the

deposited securities represented by the ADSs evidenced by such ADR, and upon payment of

the fees, governmental charges and taxes provided in the deposit agreement, and subject to

the terms and conditions of the deposit agreement, the holder of such ADR will be entitled to

delivery to such holder or upon such holder's order, as permitted by applicable law, of the

amount of deposited securities at the time represented by the ADS evidenced by such ADR.

The custodian will ordinarily deliver such deposited securities at or from its office. The

forwarding of deposited securities for delivery at any other place specified by the holder will be

at the risk and expense of the holder.

#### Dividends, Other Distributions and Rights
To the extent practicable, the depositary will distribute to you, in proportion to the number of

ADSs you hold, any U.S. dollars available to the depositary resulting from a cash dividend or

other cash distribution or the net proceeds of sales of any other distribution that it receives in

respect of the deposited securities. Such a distribution will be subject to (i) appropriate

adjustments for taxes withheld, (ii) the impermissibility or impracticability of such distribution

with respect to certain holders and (iii) the deduction of the depositary and/or its agents' fees

and expenses in (1) converting any foreign currency to U.S. dollars by sale or in such other

manner as the depositary may determine, to the extent that it determines that such conversion

may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars to the

United States by such means as the depositary may determine, to the extent that it determines

that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of

any governmental authority required for such conversion or transfer, which is obtainable at a

reasonable cost and within a reasonable time and (4) making any sale by public or private

means in any commercially reasonable manner. To the extent that the depositary determines

in its discretion that any distribution under the terms of the deposit agreement is not practicable

with respect to any holder, the depositary may make such distribution as it so deems

practicable, including the distribution of foreign currency, securities or property (or appropriate

documents evidencing the right to receive foreign currency, securities or property) or the

retention thereof as deposited securities with respect to such holder's ADRs (without liability for

interest thereon or the investment thereof). See "Ordinary Shares—Payment of Dividends"

above.

If any distribution on deposited securities consists of a dividend in, or free distribution of,

ordinary shares, the depositary will, to the extent practicable, distribute to you, in proportion to

the number of ADSs you hold, additional ADRs evidencing an aggregate number of ADSs that

represents the amount of ordinary shares received as such dividend or free distribution. In lieu

of delivering ADRs for fractional ADSs in the event of any such dividend or free distribution, the

depositary shall sell the number of ordinary shares represented by the aggregate of such

fractions and distribute the net proceeds to holders entitled thereto.

If we offer or cause to be offered to holders of deposited securities any rights to subscribe for

additional shares or rights of any nature, the depositary will to the extent practicable distribute

warrants or other instruments, in its discretion, representing rights to acquire additional ADRs

in respect of any rights that have been made available to the depositary as a result of a

distribution on deposited securities, to the extent that we timely furnish to the depositary

evidence satisfactory to the depositary that the depositary may lawfully distribute the same. We

have no obligation to furnish such evidence, and to the extent that we do not furnish such

evidence and the sales of rights are practicable, the depositary will distribute any U.S. dollars

available to the depositary from the net proceeds of sales of rights, as in the case of cash, or,

to the extent that we do not furnish such evidence and such sales cannot practicably be

accomplished by reason of the non-transferability of the rights, limited markets therefor, their

short duration, or otherwise, the depositary will distribute nothing (and any rights may lapse).

The depositary will not offer rights to holders having an address in the U.S. unless both the

rights and the securities to which such rights relate are either exempt from registration under

the Securities Act of 1933, as amended (the "Securities Act") with respect to a distribution to all

holders or are registered under the provisions of the Securities Act. Notwithstanding any terms

of the deposit agreement to the contrary, we shall have no obligation to prepare and file a

registration statement in respect of any such rights.

Whenever the depositary shall receive any distribution other than cash, ordinary shares or

rights in respect of the deposited securities, the depositary will to the extent practicable

distribute securities or property available to the depositary resulting from such distribution to

the holders entitled thereto by any means that the depositary may deem equitable and

practicable, or, to the extent that the depositary deems distribution of such securities or

property to not be equitable and practicable, any U.S. dollars available to the depositary from

the net proceeds of sales of such securities or property, as in the case of cash.

Whenever we intend to distribute a dividend payable at the election of the holders of ordinary

shares in cash or in additional shares, we shall give notice thereof to the depositary at least 30

days prior to the proposed distribution stating whether or not we wish such elective distribution

to be made available to ADR holders. Upon receipt of notice indicating that we wish such

elective distribution to be made available to ADR holders, the depositary shall consult with us

to determine, and we shall assist the depositary in its determination, whether it is lawful and

reasonably practicable to make such elective distribution available to the ADR holders. The

depositary shall make such elective distribution available to ADR holders only if (i) we shall

have timely requested that the elective distribution is available to ADR holders, (ii) the

depositary shall have determined that such distribution is reasonably practicable and (iii) the

depositary shall have received satisfactory documentation within the terms of the deposit

agreement including, without limitation, any legal opinions of counsel in any applicable

jurisdiction that the depositary in its reasonable discretion may request, at our expense. If the

above conditions are not satisfied, the depositary shall, to the extent permitted by law,

distribute to the ADR holders, on the basis of the same determination as is made in the local

market in respect of the ordinary shares for which no election is made, either (x) cash or (y)

additional ADSs representing such additional ordinary shares. If the above conditions are

satisfied, the depositary shall establish a record date and establish procedures to enable ADR

holders to elect the receipt of the proposed dividend in cash or in additional ADSs. We shall

assist the depositary in establishing such procedures to the extent necessary. Nothing herein

shall obligate the depositary to make available to ADR holders a method to receive the elective

dividend in ordinary shares (rather than ADSs). There can be no assurance that ADR holders

generally, or any holder in particular, will be given the opportunity to receive elective

distributions on the same terms and conditions as the holders of ordinary shares.

If the depositary determines that any distribution of property other than cash (including ordinary

shares or rights) on deposited securities is subject to any tax which the depositary or the

custodian is obligated to withhold, the depositary may dispose of all or a portion of such

property in such amounts and in such manner as the depositary deems necessary and

practicable to pay such taxes, by public or private sale, and the depositary will distribute the

net proceeds of any such sale or the balance of any such property after deduction of such

taxes to the holders entitled thereto.

#### Changes Affecting Deposited Securities
Pursuant to the terms of the deposit agreement, the depositary may, in its discretion, and will if

we so reasonably request, amend the ADRs or distribute additional or amended ADRs (with or

without calling for the exchange of any ADRs) or cash, securities or property on the record

date set by the depositary therefor to reflect any change in par value, split-up, consolidation,

cancellation or other reclassification of deposited securities, any share distribution or any

distribution other than cash, ordinary shares or rights, which in each case is not distributed to

holders or any cash, securities or property available to the depositary in respect of the

deposited securities from (and the depositary is authorised to surrender any deposited

securities to any person and, irrespective of whether such deposited securities are surrendered

or otherwise cancelled by operation of law, rule, regulation or otherwise, to sell by public or

private sale any property received in connection with) any recapitalization, reorganization,

merger, consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all of

our assets, and to the extent that the depositary does not so amend the ADRs or make a

distribution to holders to reflect any of the foregoing, or the net proceeds thereof, whatever

cash, securities or property results from any of the foregoing shall constitute deposited

securities and each ADS evidenced by an ADR shall automatically represent its pro rata

interest in the deposited securities as then constituted. Promptly upon the occurrence of any of

the aforementioned changes affecting deposited securities, we shall notify the depositary in

writing of such occurrence and as soon as practicable after receipt of such notice, may instruct

the depositary to give notice thereof, at our expense, to holders in accordance with the

provisions of the deposit agreement. Upon receipt of such instruction, the depositary shall give

notice to the holders in accordance with the terms of the deposit agreement, as soon as

reasonably practicable.

#### Record Dates
The depositary may, after consultation with us if practicable, fix a record date (which, to the

extent applicable, shall be as near as practicable to any corresponding record date set by us)

for the determination of the holders who shall be responsible for the fee assessed by the

depositary for administration of the ADR program and for any expenses provided in the deposit

agreement as well as for the determination of the holders who shall be entitled to receive any

distribution on or in respect of deposited securities, to give instructions for the exercise of any

voting rights, to receive any notice or to act in respect of other matters and only such holders

shall be so entitled or obligated.

#### Voting of Deposited Securities
Subject to the following sentence, as soon as practicable after receipt of notice of any

meetings at which the holders of ordinary shares are entitled to vote, or of solicitation of

consents or proxies from holders of ordinary shares or other deposited securities, the

depositary shall fix the ADS record date in accordance with the deposit agreement in respect

of such meeting or solicitation of consent or proxy. The depositary shall, if we request in writing

in a timely manner (the depositary having no obligation to take any further action if the request

shall not have been received by the depositary at least 30 days prior to the date of such vote or

meeting) and at our expense and provided no legal prohibitions exist, distribute to holders a

notice stating:

1. such information as is contained in such notice and any solicitation materials;

2. that each holder on the record date set by the depositary therefor will, subject to any

applicable provisions of Norwegian law, be entitled to instruct the depositary as to the exercise

of the voting rights, if any, pertaining to the deposited securities represented by the ADSs

evidenced by such holder's ADRs; and

3. the manner in which such instructions may be given, including without limitation, any

requirements that ADSs be blocked for a specified period of time leading up to and including

the date of such meeting or solicitation and/or ordinary shares represented by ADSs for which

instructions are provided be registered on the books of Equinor in the name of the instructing

holder.

Upon actual receipt by the ADR department of the depositary of instructions of a holder on

such record date in the manner and on or before the time established by the depositary for

such purpose and timely compliance by the ADR holder with any requirements notified by the

depositary, the depositary shall endeavor, insofar as practicable and permitted under the

provisions of, or governing, deposited securities, to vote or cause to be voted the deposited

securities represented by such holder's ADRs in accordance with such instructions. The

depositary will not itself exercise any voting discretion in respect of any deposited securities.

There is no guarantee that holders generally or any holder in particular will receive the notice

described above with sufficient time to comply with the voting requirements set forth in the

notice referenced above or to enable such holder to return any voting instructions to the

depositary in a timely manner.

Notwithstanding anything contained in the deposit agreement or any ADR, the depositary may,

to the extent not prohibited by law or regulations, or by the requirements of the stock exchange

on which the ADSs are listed, in lieu of distribution of the materials provided to the depositary

in connection with any meeting of, or solicitation of consents or proxies from, holders of

deposited securities, distribute to holders of ADRs a notice that provides such holders with, or

otherwise publicizes to such holders, instructions on how to retrieve such materials or receive

such materials upon request (i.e., by reference to a website containing the materials for

retrieval or a contact for requesting copies of the materials).

ADR holders are strongly encouraged to forward their voting instructions as soon as possible.

Voting instructions will not be deemed received until such time as the ADR department

responsible for proxies and voting has received such instructions notwithstanding that such

instructions may have been physically received by the depositary prior to such time.

The depositary and its agents may rely and shall be protected in acting upon the opinion(s) of

our counsels with respect to all matters relating to voting under Norwegian Law, rule and/or

regulation.

#### Reports and Other Communications
We have delivered to the depositary, the custodian and any transfer office, on the SEC's

website, or upon request from the depositary (which request may be refused by the depositary

at its discretion), a copy of all provisions of or governing the ordinary shares and any other

deposited securities issued by us or any of our affiliates and, promptly upon any change

thereto, we will deliver to the depositary, the custodian and any transfer office, a copy (in

English or with an English translation) of such provisions as so changed.

#### Amendment and Termination of the Deposit Agreement
Subject to the provisions of the deposit agreement, the ADRs and the deposit agreement may

at any time be amended by us and the depositary without your consent; provided that any

amendment that imposes or increases any fees or charges (other than stock transfer or other

taxes and other governmental charges, transfer or registration fees, SWIFT, cable, telex or

facsimile transmission costs, delivery costs or other such expenses), or which otherwise

prejudices any substantial existing right of yours, will take effect 30 days after notice of any

such amendment has been given to ADR holders. Every holder of an ADR at the time any

amendment to the deposit agreement so becomes effective will be deemed by continuing to

hold such ADRs to consent and agree to such amendment and to be bound by the deposit

agreement as amended thereby. In no event may any amendment impair the right of any

holder of ADRs to surrender such ADRs and receive the deposited securities represented

thereby, except in order to comply with mandatory provisions of applicable law.

Any amendments or supplements which (i) are reasonably necessary (as agreed by us and the

depositary) in order for (a) the ADSs to be registered under the Securities Act or (b) the ADSs

or our ordinary shares to be traded solely in electronic book-entry form and (ii) do not in either

such case impose or increase any fees or charges to be borne by holders of ADRs, shall be

deemed not to prejudice any substantial rights of such holders. Notwithstanding the foregoing,

if any governmental body or regulatory body should adopt new laws, rules or regulations which

would require amendment or supplement of the deposit agreement or the form of ADR to

ensure compliance therewith, we and the depositary may amend or supplement the deposit

agreement and the form of ADR at any time in accordance with such changed laws, rules or

regulations. Such amendment or supplement to the deposit agreement in such circumstances

may become effective before a notice of such amendment or supplement is given to holders of

ADRs or within any other period of time as required for compliance. Notice of any amendment

to the deposit agreement or form of ADR shall not need to describe in detail the specific

amendments effectuated thereby, and failure to describe the specific amendments in any such

notice shall not render such notice invalid, provided, however, that, in each such case, the

notice given to the holders identifies a means for holders to retrieve or receive the text of such

amendment (i.e., upon retrieval from the SEC's, the depositary's or our website or upon

request from the depositary).

The depositary may, and shall at our written direction, terminate the deposit agreement and the

ADRs by mailing notice of such termination to the ADR holders at least 30 days prior to the

date fixed in such notice for such termination; provided, however, if the depositary shall have

(i) resigned as depositary, notice of such termination by the depositary shall not be provided to

ADR holders unless a successor depositary shall not be operating under the deposit

agreement within 60 days of the date of such resignation, or (ii) been removed as depositary,

notice of such termination by the depositary shall not be provided to ADR holders unless a

successor depositary shall not be operating under the deposit agreement on the 60th day after

our notice of removal was first provided to the depositary. Notwithstanding anything to the

contrary set forth in the deposit agreement, the depositary may terminate the deposit

agreement without notice to us, but subject to giving 30 days' notice to the ADR holders, under

the following circumstances: (i) in the event of the our bankruptcy or insolvency, (ii) if the

ordinary shares cease to be listed on an internationally recognized stock exchange, (iii) if we

effect (or will effect) a redemption of all or substantially all of the deposited securities, or a cash

or share distribution representing a return of all or substantially all of the value of the deposited

securities, or (iv) there occurs a merger, consolidation, sale of assets or other transaction as a

result of which securities or other property are delivered in exchange for or in lieu of deposited

securities.

After the date so fixed for termination, the depositary and its agents will perform no further acts

under the deposit agreement and the ADRs, except to receive and hold (or sell) distributions

on deposited securities and deliver deposited securities being withdrawn. As soon as

practicable after the date so fixed for termination, the depositary shall use its reasonable efforts

to sell the deposited securities and shall thereafter (as long as it may lawfully do so) hold in an

account (which may be segregated or unsegregated account) the net proceeds of such sales,

together with any other cash then held by it under the deposit agreement, without liability for

interest, in trust for the pro rata benefit of the holders of ADRs not theretofore surrendered.

After making such sale, the depositary shall be discharged from all obligations in respect of the

deposit agreement and the ADRs, except to account for such net proceeds and other cash.

After the date so fixed for termination, we shall be discharged from all obligations under the

deposit agreement except for our obligations to the depositary and its agents.

In the event that the depositary resigns, is removed or is otherwise substituted, and a

successor thereto is appointed, the successor depositary will promptly mail you notice of such

appointment.

#### Liability of Holder for Taxes
If any tax or other governmental charges (including any penalties and/or interest) become

payable by the custodian or the depositary with respect to any ADR, any deposited securities

represented by the ADSs evidenced thereby or any distribution thereon, such tax or other

governmental charge will be paid by the holder thereof to the depositary and by holding or

having held an ADR the holder and all prior holders, jointly and severally, agree to indemnify,

defend and hold harmless each of the depositary and its agents in respect thereof. The

depositary may refuse to effect any registration, registration of transfer or any split-up or

combination of such ADR or any withdrawal of deposited securities underlying such ADR until

such payment is made. The depositary may also deduct from any dividends or other

distributions or may sell by public or private sale for your account any part or all of the

deposited securities underlying such ADR and may apply such dividends, distributions or the

proceeds of any such sale to pay any such tax or other governmental charges, and the holder

of such ADR shall remain liable for any deficiency, and the depositary shall reduce the number

of ADSs evidenced thereby to reflect any such sales of shares. In connection with any

distribution to holders, we will remit to the appropriate governmental authority or agency all

amounts (if any) required to be withheld and owing to such authority or agency by us; and the

depositary and the custodian will remit to the appropriate governmental authority or agency all

amounts (if any) required to be withheld and owing to such authority or agency by the

depositary or the custodian. If the depositary determines that any distribution in property other

than cash (including shares or rights) on deposited securities is subject to any tax that the

depositary or the custodian is obligated to withhold, the depositary may dispose of all or a

portion of such property in such amounts and in such manner as the depositary deems

necessary and practicable to pay such taxes, by public or private sale, and the depositary shall

distribute the net proceeds of any such sale or the balance of any such property after

deduction of such taxes to the holders entitled thereto. Each holder of an ADR or an interest

therein agrees to indemnify the depositary, us, the custodian and any of their respective

officers, directors, employees, agents and affiliates against, and hold each of them harmless

from, any claims by any governmental authority with respect to taxes, additions to tax,

penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or

other tax benefit obtained, which obligations shall survive any transfer or surrender of ADSs or

the termination of the deposit agreement.

#### Transfer of American Depositary Receipts
The ADRs are transferable on the books of the depositary,

*provided*

that the depositary may

close the transfer books or any portion thereof at any time or from time to time when deemed

expedient by it, and may also close the issuance book portion of the transfer books when

reasonably requested by us solely in order to enable us to comply with applicable law. As a

condition precedent to the issue, registration, registration of transfer, split-up or combination of

any ADR, the delivery of any distribution thereon, or withdrawal of any deposited securities, the

depositary, we or the custodian may require (i) payment of a sum sufficient to reimburse it for

any tax or other governmental charge and any stock transfer or registration fee with respect

thereto (including any such tax or charge and fee with respect to ordinary shares being

deposited or withdrawn) and payment of any applicable fees payable by the holders of ADRs

under the deposit agreement, (ii) proof of the identity of any signatory and genuineness of any

signature, (iii) information as to citizenship or residence, exchange control approval, beneficial

ownership of any securities, compliance with applicable law, regulations, provisions of or

governing the deposited securities and terms of the deposit agreement and the ADR or other

information as it may deem necessary or proper, and (iv) compliance with such regulations as

the depositary may establish consistent with the deposit agreement. The issuance, transfer,

combination or split-up of ADRs or the withdrawal of deposited securities may be suspended,

generally or in particular instances, during any period when the transfer books of the

depositary or the books of Equinor or its agent for the registration and transfer of ordinary

shares are closed or if any such action is deemed advisable by the depositary.

#### Limitations on Liability
Neither the depositary nor we nor any of our respective directors, officers, employees, agents

or affiliates will be liable to you if by reason of any provision of any present or future law, rule,

regulation, fiat, order or decree of the United States, the Kingdom of Norway or any other

country or jurisdiction, or of any other governmental or regulatory authority or securities

exchange or market or automated quotation system, or by reason of any provision of or

governing any deposited securities or any provision of our charter, or by reason of any act of

God, war, terrorism, nationalization, expropriation, currency restrictions, work stoppage, strike,

civil unrest, revolutions, rebellions, explosions, computer failure or circumstance beyond any

such party's direct and immediate control, the depositary, we or any of our respective directors,

employees, agents or affiliates shall be prevented or delayed in performing, or shall be subject

to any civil or criminal penalty in connection with, any act which by the terms of the deposit

agreement or the ADRs it is provided shall be done or performed by it or them (including,

without limitation, voting pursuant to the terms of the ADRs); nor will the depositary, we or any

of our respective directors, employees, agents or affiliates incur any liability to you by reason of

any non-performance or delay, caused as aforesaid, in the performance of any act or things

which by the terms of the Deposit Agreement it is provided shall or may be done or performed

or of any exercise of, or failure to exercise, any discretion provided for under the deposit

agreement or any ADR (including, without limitation, any failure to determine that any

distribution or action may be lawful or reasonably practicable), or for any action or inaction by it

in reliance upon the advice of or information from legal counsel, accountants, any person

presenting ordinary shares for deposit, any ADR holder, or any other person believed by it to

be competent to give such advice or information.

Neither we nor the depositary nor any of our respective directors, officers, employees, agents

or affiliates assume any obligation or be subject to any liability except to perform its obligations

to the extent they are specifically provided under the deposit agreement or the ADRs without

gross negligence or willful misconduct. We, the depositary and its agents and may rely and

shall be protected in acting upon any written notice, request, direction, instruction or document

believed to be genuine and to have been signed, presented or given by the proper party or

parties.

The depositary and its agents have no obligation to appear in, prosecute or defend any action,

suit or other proceeding in respect of any deposited securities or the ADRs, and we and our

agents have no obligation to appear in, prosecute or defend any action, suit or other

proceeding in respect of any deposited securities or the ADRs, which in our opinion may

involve us in expense or liability, unless indemnity satisfactory to us against all expense

(including fees and disbursements of counsel) and liability is furnished as often as may be

required.

The depositary shall not be liable for the acts or omissions made by, or the insolvency of, any

securities depository, clearing agency or settlement system, and shall not have any liability for

the price received in connection with any sale of securities, the timing thereof or any delay in

action or omission to act, nor shall it be responsible for any error or delay in action, omission to

act, default or negligence on the part of the party so retained in connection with any such sale

or proposed sale. The depositary shall be under no obligation to inform registered holders of

ADRs or any other holders of an interest in any ADSs about the requirements of the laws, rules

or regulations or any changes therein or thereto of any country or jurisdiction or of any

governmental or regulatory authority or any securities exchange or market or automated

quotation system. The depositary and its agents will not be responsible for any failure to carry

out any instructions to vote any of the Deposited Securities, for the manner in which any such

vote is cast or for the effect of any such vote. The depositary may rely upon instructions from

us or our counsel in respect of any approval or license required for any currency conversion,

transfer or distribution. The depositary and its agents may own and deal in any class of our

securities and securities or our affiliates and in ADRs. Notwithstanding anything else contained

in the deposit agreement or any prior deposit agreement, the depositary shall have no liability

or responsibility under the deposit agreement, any ADR or any related agreement, for any

period prior to the effective date of the deposit agreement or for any act or omission of the

predecessor to the depositary or any of its agents (including the custodian as defined in the

prior deposit agreement), under or in connection with this deposit agreement, any ADRs or any

related agreement. Notwithstanding anything to the contrary set forth in the deposit agreement

or an ADR, the depositary and its agents may fully respond to any and all demands or requests

for information maintained by or on its behalf in connection with the deposit agreement, any

ADR holder or holders, any ADR or ADRs or otherwise related thereto to the extent such

information is requested or required by or pursuant to any lawful authority, including without

limitation laws, rules, regulations, administrative or judicial process, banking, securities or other

regulators.

None of us, the depositary or the custodian shall be liable for the failure by any registered

holder or beneficial owner of ADRs to obtain the benefits of credits or refunds of non-U.S. tax

paid against such holder's or beneficial owner's income tax liability. Neither we nor the

depositary shall incur any liability for any tax or tax consequences that may be incurred by

registered holders or beneficial owners of ADRs on account of their ownership or disposition of

the ADRs or ADSs.

The depositary shall not incur any liability for the content of any information submitted to it by

or on our behalf for distribution to the ADR holders or for any inaccuracy of any translation

thereof, for any investment risk associated with acquiring an interest in the deposited

securities, for the validity or worth of the deposited securities, for the credit-worthiness of any

third party, for allowing any rights to lapse upon the terms of the deposit agreement or for the

failure or timeliness of any notice from us. Notwithstanding anything set forth in the deposit

agreement to the contrary, the depositary and the custodian(s) may use third party delivery

services and providers of information regarding matters such as pricing, proxy voting,

corporate actions, class action litigation and other services in connection herewith and the

deposit agreement, and use local agents to provide extraordinary services such as attendance

at annual meetings of issuers of securities. Although the depositary and the custodian will use

reasonable care (and cause their agents to use reasonable care) in the selection and retention

of such third party providers and local agents, they will not be responsible for any errors or

omissions made by them in providing the relevant information or services. The depositary shall

not be liable for any acts or omissions made by a successor depositary whether in connection

with a previous act or omission of the depositary or in connection with any matter arising wholly

after the removal or resignation of the depositary, unless a liability is directly caused by the

previous gross negligence or willful misconduct of the depositary or its directors, officers,

employees, agents or affiliates acting in their capacities as such under the deposit agreement.

Neither we nor the depositary nor any of our respective agents shall be liable to registered

holders of ADRs or beneficial owners of interests in ADSs for any indirect, special, punitive or

consequential damages (including, without limitation, legal fees and expenses) or lost profits,

in each case of any form incurred by any person or entity, whether or not foreseeable and

regardless of the type of action in which such a claim may be brought.

The depositary shall not be responsible for, and shall incur no liability in connection with or

arising from any act or omission to act on the part of the custodian except to the extent that

any holder has incurred liability directly as a result of the custodian having (a) committed fraud

or willful misconduct in the provision of custodial services to the depositary or (b) failed to use

reasonable care in the provision of custodial services to the depositary as determined in

accordance with the standards prevailing in the jurisdiction in which the custodian is located.

As long as we or one of our affiliates is serving as the custodian with respect to the deposit

agreement we shall be solely liable for each and any act or failure to act on the part of the

custodian.

No provision of the deposit agreement or any ADR is intended to constitute a waiver or

limitation of any rights which an ADR holder or any person or entity having a beneficial

ownership interest in any ADSs may have under the Securities Act or the Securities Exchange

Act of 1934, to the extent applicable.

#### Governing Law, Submission to Jurisdiction and Waiver of Right to Trial by Jury
The deposit agreement is governed by and construed in accordance with the laws of the State

of New York.

We have irrevocably agreed that any legal suit, action or proceeding against us brought by the

depositary or any holder, arising out of or based upon the deposit agreement or the

transactions contemplated thereby, may be instituted in any state or federal court in New York,

New York, and irrevocably waive any objection which we may now or hereafter have to the

laying of venue of any such proceeding, and irrevocably submit to the non-exclusive

jurisdiction of such courts in any such suit, action or proceeding. We have also irrevocably

agreed that any legal suit, action or proceeding against the depositary brought by us, arising

out of or based upon the deposit agreement or the transactions contemplated thereby, may

only be instituted in a state or federal court in New York, New York.

Each holder or beneficial owner of ADSs and each holder of interests therein, has irrevocably

agreed that any legal suit, action or proceeding against or involving us or the depositary,

arising out of or based on the deposit agreement, the ADSs, or the transactions contemplated

thereby, may only be instituted in a state or federal court in New York, New York, and each

such party has irrevocably waived any objection which it may now or hereafter have to the

laying of venue of any such proceeding, and irrevocably submits to the exclusive jurisdiction of

such courts in any such suit, action or proceeding.

Each party to the deposit agreement, including each holder and beneficial owner and/or holder

of interests in ADRs, irrevocably waives, to the fullest extent permitted by applicable law, any

right it may have to a trial by jury in any suit, action or proceeding against the depositary and/or

us directly or indirectly arising out of or relating to the ordinary shares or other deposited

securities, the ADSs or the ADRs, the deposit agreement or any transaction contemplated

therein, or the breach thereof, whether based on contract, tort, common law or any other

theory.

#### Appointment
In the deposit agreement, each registered holder of ADRs and each person holding an interest

in ADSs, upon acceptance of any ADSs (or any interest therein) issued in accordance with the

terms and conditions of the deposit agreement shall be deemed for all purposes to:

(a) be a party to and bound by the terms of the deposit agreement and the applicable ADR(s),

(b) appoint the depositary its attorney-in-fact, with full power to delegate, to act on its behalf

and to take any and all actions contemplated in the deposit agreement and the applicable

ADR(s), to adopt any and all procedures necessary to comply with applicable law and to take

such action as the depositary in its sole discretion may deem necessary or appropriate to carry

out the purposes of the deposit agreement and the applicable ADR(s), the taking of such

actions to be the conclusive determinant of the necessity and appropriateness thereof,

(c) acknowledge and agree that (i) nothing in the deposit agreement or any ADR shall give rise

to a partnership or joint venture among the parties thereto nor establish a fiduciary or similar

relationship among such parties, (ii) the depositary, its divisions, branches and affiliates, and

their respective agents, may from time to time be in the possession of non-public information

about Equinor, ADR holders, owners of ADSs and/or their respective affiliates, (iii) the

depositary and its divisions, branches and affiliates may at any time have multiple banking

relationships with Equinor, ADR holders, owners of ADSs and/or the affiliates of any of them,

(iv) the depositary and its divisions, branches and affiliates may, from time to time, be engaged

in transactions in which parties adverse to Equinor or the Holders or owners of ADSs may

have interests, (v) nothing contained in the Deposit Agreement or any ADR(s) shall (A)

preclude the Depositary or any of its divisions, branches or affiliates from engaging in such

transactions or establishing or maintaining such relationships, or (B) obligate the Depositary or

any of its divisions, branches or affiliates to disclose such transactions or relationships or to

account for any profit made or payment received in such transactions or relationships, and (vi)

the Depositary shall not be deemed to have knowledge of any information held by any branch,

division or affiliate of the Depositary.

# AMENDED AND RESTATED AGENCY AGREEMENT

9 MAY 2022

EQUINOR ASA
as

Issuer

and

EQUINOR ENERGY AS
as Guarantor

THE BANK OF NEW YORK MELLON, LONDON BRANCH
as

Agent

and

THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH
as Paying Agent

in respect of a
€20,000,000,000
EURO MEDIUM TERM NOTE PROGRAMME

exhibit25p1i0

Allen & Overy LLP

0010155-0003327 UKO2:2004375908.9

# CONTENTS

| Clause | Page |
| --- | --- |
| 1. Definitions and Interpretation | 4 |
| 2. Appointment of Agent and Paying Agents | 10 |
| 3. Issue of Temporary Global Notes | 11 |
| 4. Determination of Exchange Date and Issue of Permanent Global Notes and Definitive Notes | 12 |
| 5. Issue of Definitive Notes | 12 |
| 6. Terms of Issue | 13 |
| 7. Payments | 14 |
| 8. Determinations and Notifications in respect of Notes and Interest Determination | 15 |
| 9. Notice of any Withholding or Deduction | 16 |
| 10. Duties of the Agent in Connection with early Redemption | 16 |
| 11. Receipt and Publication of Notices | 17 |
| 12. Cancellation of Notes, Coupons and Talons | 17 |
| 13. Issue of Replacement Notes, Coupons and Talons | 18 |
| 14. Copies of Documents Available for Inspection or Collection | 19 |
| 15. Meetings of Noteholders | 19 |
| 16. Commissions, Expenses and Review of Fees and Expenses | 20 |
| 17. Indemnity | 20 |
| 18. Repayment by the Agent | 21 |
| 19. Conditions of Appointment | 21 |
| 20. Release of the Guarantor | 22 |
| 21. Communication between the Parties | 22 |
| 22. Changes in Agent and other Paying Agents | 22 |
| 23. Merger and Consolidation | 24 |
| 24. Notification of Changes to Paying Agents | 24 |
| 25. Change of Specified Office | 25 |
| 26. Notices and Communication | 25 |
| 27. Taxes and Stamp Duties | 26 |
| 28. Currency Indemnity | 26 |
| 29. Amendments | 26 |
| 30. Descriptive Headings | 26 |
| 31. Contract (Rights of Third Parties) Act 1999 | 26 |
| 32. Governing Law and Submission to Jurisdiction | 26 |
| 33. Counterparts | 27 |
| 34. General | 27 |

35. EU Contractual Recognition of Bail-in... 27

**Schedule**                                                                 **Page**

1. Terms and Conditions of the Notes other than VPS Notes... 29
2. Forms of Global and Definitive Notes, Coupons and Talons ... 78
   Part 1    Form of Temporary Global Note... 78
   Part 2    Form of Permanent Global Note... 86
   Part 3    Form of Definitive Note... 94
   Part 4    Form of Coupon... 97
   Part 5    Form of Talon... 98
3. Form of Deed of Covenant... 100
4. Provisions for Meetings of Noteholders... 103
5. Form of Put Notice... 109
6. Form of Deed Poll... 111
7. Form of Issuer - ICSDs Agreement... 117
8. Additional Duties of the Agent... 121

Signatories... 122

**Appendix**

1. Form of Calculation Agency Agreement... 124

# AMENDED AND RESTATED AGENCY AGREEMENT

in respect of a
€20,000,000,000
EURO MEDIUM TERM NOTE PROGRAMME

THIS AGREEMENT is made on 9 May 2022

BETWEEN:

(1) EQUINOR ASA of Forusbeen 50, N-4035 Stavanger, Norway in its capacity as an issuer of Notes under the Programme (the Issuer);
(2) EQUINOR ENERGY AS of Forusbeen 50, N-4035 Stavanger, Norway (the Guarantor);
(3) THE BANK OF NEW YORK MELLON, LONDON BRANCH of One Canada Square, London E14 5AL, United Kingdom (the Agent, which expression shall include any successor agent appointed in accordance with clause (D)22); and
(4) THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH of Vertigo Building - Polaris, 2-4 rue, Eugène Ruppert, L-2453 Luxembourg (together with the Agent, the Paying Agents, which expression shall include any additional or successor paying agent appointed in accordance with clause (D)22 and Paying Agent shall mean any of the Paying Agents).

WHEREAS:

(A) The parties hereto entered into an amended and restated Agency Agreement (the Previous Agency Agreement) dated 13 May 2020 in respect of a €20,000,000,000 Euro Medium Term Note Programme (the Programme).
(B) The parties hereto wish to make certain modifications to the Previous Agency Agreement.
(C) The Issuer and the Guarantor have entered into an amended and restated programme agreement (as modified and/or restated and/or supplemented from time to time, the Programme Agreement) dated 9 May 2022 with the Dealers named therein pursuant to which the Issuer may issue Euro Medium Term Notes (the Notes) in an aggregate nominal amount of up to €20,000,000,000 (or its equivalent in other currencies) under the Programme.
(D) Each issue of Notes (other than VPS Notes) will be initially represented by a temporary global Note exchangeable in whole or in part for definitive Notes or for a permanent global Note which will be exchangeable as described therein for definitive Notes.

IT IS HEREBY AGREED as follows:

1. DEFINITIONS AND INTERPRETATION

1.1 Terms and expressions defined in the Programme Agreement or the Notes or used in the applicable Final Terms shall have the same meanings in this Agreement, except where the context requires otherwise or unless otherwise stated.

4

1.2 Without prejudice to the foregoing:

**Authorised Person** means any person who is designated in writing by the Issuer from time to time to give Instructions to the Agent under the terms of this Agreement;

**CGN** means a Temporary Global Note in the form set out in Part 1 of Schedule 2 or a Permanent Global Note in the form set out in Part 2 of Schedule 2, in either case where the applicable Final Terms specify that the Notes are not in New Global Note form;

**Clearstream, Luxembourg** means Clearstream Banking S.A.;

**Code** means the U.S. Internal Revenue Code of 1986, as amended;

**Conditions** means, in relation to the Notes of any Series, the terms and conditions endorsed on or incorporated by reference into the Note or Notes constituting such Series, such terms and conditions being in or substantially in the form set out in Schedule 1 or in such other form, having regard to the terms of the Notes of the relevant Series, as may be agreed between the Issuer, the Agent and the relevant Dealer as completed by the Final Terms applicable to the Notes of the relevant Series;

**Coupon** means an interest coupon appertaining to a Definitive Note (other than a Zero Coupon Note), such coupon being:

(a) if appertaining to a Fixed Rate Note, in the form or substantially in the form set out in Part 4A of Schedule 2 or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the Issuer, the Agent and the relevant Dealer; or

(b) if appertaining to a Floating Rate Note, in the form or substantially in the form set out in Part 4B of Schedule 2 or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the Issuer, the Agent and the relevant Dealer; or

(c) if appertaining to a Definitive Note which is neither a Fixed Rate Note nor a Floating Rate Note, in such form as may be agreed between the Issuer, the Agent and the relevant Dealer,

and includes, where applicable, the Talon(s) appertaining thereto and any replacements for Coupons and Talons issued pursuant to Condition 9;

**Couponholders** means the several persons who are for the time being holders of the Coupons and shall, unless the context otherwise requires, include the holders of the Talons;

**Deed of Covenant** means the deed of covenant, as modified and/or restated and/or supplemented from time to time, dated 13 May 2020, substantially in the form set out in Schedule 3, executed as a deed by the Issuer in favour of certain accountholders with Euroclear and Clearstream, Luxembourg;

**Deed Poll** means any Deed Poll as defined in Condition 14 the form of which is set out in Schedule 6 hereto;

**Definitive Note** means a definitive Note issued or, as the case may require, to be issued by the Issuer in accordance with the provisions of the Programme Agreement or any other agreement between the Issuer and the relevant Dealer in exchange for either a Temporary Global Note or a Permanent Global Note (all as indicated in the applicable Final Terms),

0010155-0003327 UKO2:2004375908.9

5

such definitive Note being in the form or substantially in the form set out in Part 3 of Schedule 2 with such modifications (if any) as may be agreed between the Issuer, the Agent and the relevant Dealer and having the Conditions endorsed

0010155-0003327 UKO2:2004375908.9

6

thereon or, if permitted by the relevant authority or authorities, incorporating the Conditions by reference and having the applicable Final Terms (or the relevant provisions thereof) either endorsed thereon or attached thereto and (except in the case of a Zero Coupon Note) having Coupons and, where appropriate, Talons attached thereto on issue;

**Distribution Compliance Period** has the meaning given to such term in Regulation S under the Securities Act;

**Euroclear** means Euroclear Bank SA/NV;

**Eurosystem-eligible NGN** means an NGN which is intended to be held in a manner which would allow Eurosystem eligibility, as stated in the applicable Final Terms;

**FATCA Withholding** means any withholding or deduction required pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations thereunder or official interpretations thereof) or an intergovernmental agreement between the United States and another jurisdiction facilitating the implementation thereof (or any law implementing such an intergovernmental agreement);

**Fixed Rate Note** means a Note on which interest is calculated at a fixed rate payable in arrear on a fixed date or dates in each year and on redemption or on such other dates as may be agreed between the Issuer and the relevant Dealer (as indicated in the applicable Final Terms);

**Floating Rate Note** means a Note on which interest is calculated at a floating rate payable in respect of such period or on such date(s) as may be agreed between the Issuer and the relevant Dealer (as indicated in the applicable Final Terms);

**Global Note** means a Temporary Global Note and/or a Permanent Global Note, as applicable;

**Grandfathering Date** means the date that is six months after the date on which final regulations defining the term 'foreign passthru payment' are published in the U.S. Federal Register;

**Guarantee** means the Deed of Guarantee, as modified and/or restated and/or supplemented from time to time, executed by the Guarantor on 13 May 2020 in respect of the Programme;

**Instructions** means any written notices, directions or instructions received by the Agent from an Authorised Person or from a person reasonably believed by the Agent to be an Authorised Person;

**Interest Commencement Date** means, in the case of interest-bearing Notes, the date specified in the applicable Final Terms from (and including) which such Notes bear interest, which may or may not be the Issue Date;

**Issue Date** means the date of issue and purchase of a Note, in each case pursuant to and in accordance with the Programme Agreement or any other agreement between the Issuer and the relevant Dealer, being in the case of any Permanent Global Note or Definitive Note, the same date as the date of issue of the Temporary Global Note which initially represented such Note;

**Issue Price** means the price, generally expressed as a percentage of the nominal amount of the Notes, at which the Notes will be issued;

0010155-0003327 UKO2:2004375908.9

7

**Maturity Date** means, in relation to a Note, the date on which it is expressed to be redeemable;

0010155-0003327 UKO2:2004375908.9

8

**NGN** means a Temporary Global Note in the form set out in Part 1 of Schedule 2 or a Permanent Global Note in the form set out in Part 2 of Schedule 2, in either case where the applicable Final Terms specify that the Notes are in New Global Note form;

**Note** means a note denominated in Australian Dollars, Canadian Dollars, Danish Kroner, Euro, Hong Kong Dollars, Japanese Yen, New Zealand Dollars, Norwegian Kroner, South African Rand, Sterling, Swedish Kronor, Swiss Francs, U.S. Dollars or such other currency or currencies as may be agreed between the Issuer and the relevant Dealer issued or to be issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer and which shall initially be represented by, and comprised in, a Temporary Global Note which may (in accordance with the terms of such Temporary Global Note) be exchanged for either Definitive Notes or a Permanent Global Note which Permanent Global Note may (in accordance with the terms of such Permanent Global Note) in turn be exchanged for Definitive Notes (all as indicated in the applicable Final Terms) and includes any replacements for a Note issued pursuant to Condition 9;

**Noteholders** means the several persons who are for the time being holders of the Notes save that, in respect of the Notes of any Series, for so long as such Notes or any part thereof are represented by a Global Note held on behalf of Euroclear and/or of Clearstream, Luxembourg, each person (other than Euroclear or Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear or of Clearstream, Luxembourg as the holder of a particular nominal amount of the Notes of such Series (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be treated by the Issuer, the Agent and any other Paying Agent as the holder of such nominal amount of such Notes for all purposes other than with respect to the payment of principal or interest on such Notes, for which purpose the bearer of the relevant Global Note shall be treated by the Issuer, the Agent and any other Paying Agent as the holder of such nominal amount of such Notes in accordance with and subject to the terms of the relevant Global Note and the expressions **Noteholder**, **holder of Notes** and related expressions shall be construed accordingly;

**outstanding** means, in relation to the Notes of any Series, all the Notes issued other than (a) those which have been redeemed in full in accordance with the Conditions, (b) those in respect of which the date for redemption in accordance with the Conditions has occurred and the redemption moneys wherefor (including all interest (if any) accrued thereon to the date for such redemption and any interest (if any) payable under the Conditions after such date) have been duly paid to the Agent as provided herein (and, where appropriate, notice has been given to the Noteholders of the relevant Series in accordance with Condition 12) and remain available for payment of the relevant Notes and/or Coupons, (c) those which have become void under the Conditions, (d) those which have been purchased and cancelled as provided in the Conditions, (e) those mutilated or defaced Notes which have been surrendered in exchange for replacement Notes pursuant to the Conditions, (f) (for the purpose only of determining how many Notes are outstanding and without prejudice to their status for any other purpose) those Notes alleged to have been lost, stolen or destroyed and in respect of which replacement Notes have been issued pursuant to the Conditions, (g) Temporary Global Notes to the extent that they shall have been duly exchanged for Permanent Global Notes and/or Definitive Notes and Permanent Global Notes to the extent that they shall have been duly exchanged for Definitive Notes, in each case pursuant to their respective provisions and (h) Temporary Global Notes and Permanent Global Notes which have become void in accordance with their terms (provided that at the Relevant Time (as defined in the Deed of Covenant) the Underlying Notes (as defined in the Deed of Covenant) will be deemed to be still outstanding) and,

0010155-0003327 UKO2:2004375908.9

9

PROVIDED THAT for each of the following purposes, namely:

0010155-0003327 UKO2:2004375908.9

10

(i) the right to attend and vote at any meeting of the Noteholders or any of them, passing an Extraordinary Resolution (as defined in Schedule 4) in writing or an Extraordinary Resolution by way of electronic consents given through the relevant clearing systems as envisaged by Schedule 4; and

(ii) the determination of how many and which Notes are for the time being outstanding for the purposes of paragraphs 2, 5 and 6 of Schedule 4 hereto,

those Notes (if any) which are for the time being held by any person (including but not limited to the Issuer or any of its Subsidiaries) for the benefit of the Issuer or any of its Subsidiaries shall (unless and until ceasing to be so held) be deemed not to be outstanding;

**Participating FFI** means a "participating FFI" as defined in US Treasury Regulations Section 1.1471-1(b)(91) (or any successor provision) or any other entity whose payments are subject to FATCA Withholding;

**Permanent Global Note** means a global note in the form or substantially in the form set out in Part 2 of Schedule 2 together with the copy of the applicable Final Terms attached thereto with such modifications (if any) as may be agreed between the Issuer, the Agent and the relevant Dealer, comprising some or all of the Notes of the same Series, issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer in exchange for the whole or part of any Temporary Global Note issued in respect of such Notes;

**Put Notice** means a notice in the form set out in Schedule 5;

**Series** means a Tranche of the Notes together with any further Tranche or Tranches of the Notes which are (a) expressed to be consolidated and form a single series and (b) identical in all respects (including as to listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices and the expressions **Notes of the relevant Series** and **holders of Notes of the relevant Series** and related expressions shall be construed accordingly;

**Talons** means the talons (if any) appertaining to, and exchangeable in accordance with the provisions therein contained for further Coupons appertaining to, a Definitive Note (other than a Zero Coupon Note), such talons being in the form or substantially in the form set out in Part 5 of Schedule 2 or in such other form as may be agreed between the Issuer, the Agent and the relevant Dealer and includes any replacements for Talons issued pursuant to Condition 9;

**Temporary Global Note** means a global note in the form or substantially in the form set out in Part 1 of Schedule 2 together with the copy of the applicable Final Terms attached thereto with such modifications (if any) as may be agreed between the Issuer, the Agent and the relevant Dealer, comprising some or all of the Notes of the same Series, issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer;

**Tranche** means all Notes with the same Issue Date and subject to the same Final Terms; and

**Zero Coupon Note** means a Note on which no interest is payable.

1.3 (a) Words denoting the singular number only shall include the plural number also and vice versa;

0010155-0003327 UKO2:2004375908.9

11

(b) words denoting one gender only shall include the other gender; and
(c) words denoting persons only shall include firms and corporations and vice versa.

0010155-0003327 UKO2:2004375908.9

12

1.4 All references in this Agreement to costs or charges or expenses shall include any value added tax or similar tax charged or chargeable in respect thereof to the extent not recoverable as an input.1.5 All references in the Agreement to 'the Guarantor' shall be deemed to be deleted in relation to Notes that do not have the benefit of the Guarantee.1.6 For the purposes of this Agreement, the Notes of each Series shall form a separate series of Notes and the provisions of this Agreement shall apply *mutatis mutandis* separately and independently to the Notes of each Series and in this Agreement the expressions **Notes, Noteholders, Coupons, Couponholders and Talons** shall be construed accordingly.1.7 All references in this Agreement to principal and/or interest or both in respect of the Notes or to any moneys payable by the Issuer under this Agreement shall have the meaning set out in Condition 4(f).1.8 All references in this Agreement to the **relevant currency** shall be construed as references to the currency in which the relevant Notes and/or Coupons are denominated.1.9 In this Agreement, clause headings are inserted for convenience and ease of reference only and shall not affect the interpretation of this Agreement. All references in this Agreement to the provisions of any statute shall be deemed to be references to that statute as from time to time modified, extended, amended or re-enacted or to any statutory instrument, order or regulation made thereunder or under such re-enactment.1.10 All references in this Agreement to an agreement, instrument or other document (including, without limitation, this Agreement, the Programme Agreement, the Deed of Covenant, the Guarantee, the Procedures Memorandum, the Notes and any Conditions appertaining thereto) shall be construed as a reference to that agreement, instrument or document as the same may be amended, modified, varied or supplemented from time to time.1.11 Any references herein to Euroclear and/or Clearstream, Luxembourg shall, whenever the context so permits, be deemed to include a reference to any additional or alternative clearance system approved by the Issuer and the Agent or as otherwise specified in Part B of the applied Final Terms.1.12 All references to the **records** of Euroclear and Clearstream, Luxembourg shall be to the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such customer's interest in the Notes.1.13 As used herein, in relation to any Notes which are to have a 'listing' or be 'listed' (i) on the London Stock Exchange, **listing** and **listed** shall be construed to mean that such Notes have been admitted to the Official List and admitted to trading on the London Stock Exchange's main market and (ii) on any European Economic Area Stock Exchange, **listing** and **listed** shall be construed to mean that that Notes have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU, as amended).1.14 This Agreement does not apply to the VPS Notes.1.15 With effect from the date hereof, the provisions of the Previous Agency Agreement shall be amended and restated and shall take effect in the form set out in this Agency Agreement and all references to the **Agency Agreement, this Agency Agreement, this Agreement, hereof, hereunder** and expressions of similar import in this Agency Agreement shall be construed as references to the Previous Agency Agreement as so amended and restated. Any Notes issued on or after the date hereof shall be issued pursuant to this Agency

0010155-0003327 UKO2:2004375908.9

13

Agreement. This does not affect any Notes issued prior to the date of this Agreement.

0010155-0003327 UKO2:2004375908.9

14

## 2. APPOINTMENT OF AGENT AND PAYING AGENTS

2.1 The Agent is hereby appointed, and the Agent hereby agrees to act as issuing and paying agent of the Issuer and the Guarantor upon the terms and subject to the conditions set out below, for the purposes of, *inter alia*:

- (a) completing, authenticating and delivering Global Notes and (if required) completing, authenticating and delivering Definitive Notes;
- (b) giving effectuation instructions in respect of each Global Note which is a Eurosystem- eligible NGN;
- (c) exchanging Temporary Global Notes for Permanent Global Notes or Definitive Notes, as the case may be, in accordance with the terms of Temporary Global Notes and, in respect of any such exchange, (i) making all notations on Global Notes which are CGNs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Global Notes which are NGNs;
- (d) exchanging Permanent Global Notes for Definitive Notes in accordance with the terms of such Permanent Global Notes and, in respect of any such exchange, (i) making all notations on Permanent Global Notes which are CGNs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Permanent Global Notes which are NGNs;
- (e) paying sums due on Global Notes and Definitive Notes and Coupons and instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Global Notes which are NGNs;
- (f) exchanging Talons for Coupons in accordance with the Conditions;
- (g) arranging on behalf of the Issuer or, as the case may be, the Guarantor, for notices to be communicated to the Noteholders;
- (h) ensuring that all necessary action is taken to comply with any reporting requirements of any competent authority in respect of any relevant currency as may be in force from time to time with respect to the Notes to be issued under the Programme;
- (i) subject to the Procedures Memorandum, submitting to the relevant authority or authorities such number of copies of each Final Terms which relates to Notes which are to be listed as the relevant authority or authorities may reasonably require;
- (j) acting as Calculation Agent in respect of Notes where named as such in the relevant Final Terms; and
- (k) performing all other obligations and duties imposed upon it by the Conditions and this Agreement.

2.2 Each Paying Agent is hereby appointed as paying agent of the Issuer and the Guarantor, upon the terms and subject to the conditions set out below, for the purposes of paying sums due on Notes and Coupons and of performing all other obligations and duties imposed upon it by the Conditions and this Agreement. The obligations of the Paying Agents under this Agreement shall be several and not joint.

0010155-0003327 UKO2:2004375908.9

15

2.3 In relation to each issue of Eurosystem-eligible NGNs, the Issuer hereby authorises and instructs the Agent to elect Euroclear and/or Clearstream, Luxembourg as common safekeeper. From time to time, the Issuer and the Agent may agree to vary this election. The Issuer acknowledges that any such election is subject to the right of Euroclear and Clearstream, Luxembourg to jointly determine that the other shall act as common safekeeper in relation to any such issue and agrees that no liability shall attach to the Agent in respect of any such election made by it.

### 3. ISSUE OF TEMPORARY GLOBAL NOTES

3.1 Subject to subclause 3.2 below, following receipt of a faxed copy of the Final Terms signed by the Issuer and the Guarantor, the Issuer hereby authorises the Agent and the Agent hereby agrees to take the steps required of the Agent in the Procedures Memorandum. For this purpose the Agent will, *inter alia*, on behalf of the Issuer:

- (a) prepare a Temporary Global Note by attaching a copy of the applicable Final Terms to a copy of the applicable master Temporary Global Note;
- (b) authenticate such Temporary Global Note;
- (c) deliver such Temporary Global Note to the specified common depository (if the Temporary Global Note is a CGN) or specified common safekeeper (if the Temporary Global Note is an NGN) for Euroclear and Clearstream, Luxembourg and, in the case of a Temporary Global Note which is a Eurosystem-eligible NGN, to instruct the common safekeeper to effectuate the same;
- (d) ensure that the Notes of each Tranche are assigned a common code and ISIN by Euroclear and Clearstream, Luxembourg which are different from the common code and ISIN assigned to Notes of any other Tranche of the same Series until at least the expiry of the applicable Distribution Compliance Period of such Tranche as notified by the Agent to the relevant Dealer; and
- (e) if the Temporary Global Note is an NGN, instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate principal amount of the relevant Tranche of Notes.

3.2 The Agent shall only be required to perform its obligations under subclause 3.1 above if it holds:

- (a) a master Temporary Global Note duly executed by a person or persons authorised to execute the same on behalf of the Issuer, which may be used by the Agent for the purpose of preparing a Temporary Global Note in accordance with subclause 3.1(a); and
- (b) a master Permanent Global Note duly executed by a person or persons authorised to execute the same on behalf of the Issuer, which may be used by the Agent for the purpose of preparing a Permanent Global Note in accordance with clause 4 below.

3.3 Where the Agent delivers any authenticated Global Note to a common safekeeper for effectuation using electronic means, it is authorised and instructed to destroy the Global Note retained by it following its receipt of confirmation from the common safekeeper that the relevant Global Note has been effectuated.

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#### **4. DETERMINATION OF EXCHANGE DATE AND ISSUE OF PERMANENT GLOBAL NOTES AND DEFINITIVE NOTES**

4.1 (a) The Agent shall determine the Exchange Date for each Temporary Global Note in accordance with the terms thereof. Forthwith upon determining the Exchange Date in respect of any Tranche, the Agent shall notify such determination to the Issuer, the Guarantor, the relevant Dealer, Euroclear and Clearstream, Luxembourg.

(b) Where a Temporary Global Note is to be exchanged for a Permanent Global Note, the Agent is hereby authorised on behalf of the Issuer:

(i) in the case of the first Tranche of any Series of Notes, to prepare and complete a Permanent Global Note in accordance with the terms of the Temporary Global Note applicable to such Tranche by attaching a copy of the applicable Final Terms to a copy of the applicable master Permanent Global Note;

(ii) in the case of the first Tranche of any Series of Notes, to authenticate such Permanent Global Note;

(iii) in the case of the first Tranche of any Series of Notes if the Permanent Global Note is a CGN, to deliver such Permanent Global Note to the common depositary which is holding the Temporary Global Note applicable to such Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to hold on behalf of the Issuer pending its exchange for such Temporary Global Note;

(iv) in the case of the first Tranche of any Series of Notes if the Permanent Global Note is an NGN, to deliver the Permanent Global Note to the common safekeeper which is holding the Temporary Global Note representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to effectuate (in the case of a Permanent Global Note which is a Eurosystem-eligible NGN) and to hold on behalf of the Issuer pending its exchange for the Temporary Global Note;

(v) in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is a CGN, by attaching a copy of the applicable Final Terms to the Permanent Global Note applicable to the relevant Series and entering details of any exchange in whole or part as aforesaid; and

(vi) in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is an NGN, to deliver the applicable Final Terms to the specified common safekeeper for attachment to the Permanent Global Note applicable to the relevant Series.

#### **5. ISSUE OF DEFINITIVE NOTES**

5.1 Where a Global Note is to be exchanged for Definitive Notes in accordance with its terms, the Agent is hereby authorised on behalf of the Issuer:

(a) to authenticate such Definitive Note(s) in accordance with the provisions of this Agreement; and

(b) to deliver such Definitive Note(s) to or to the order of Euroclear and/or Clearstream, Luxembourg.

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The Agent shall notify the Issuer forthwith upon receipt of a request for issue of (a) Definitive Note(s) in accordance with the provisions of a Temporary Global Note or Permanent Global Note, as the case may be, (and the aggregate nominal amount of such Temporary Global Note or Permanent Global Note, as the case may be, to be exchanged in connection therewith).

5.2 The Issuer undertakes to deliver to the Agent sufficient numbers of executed Definitive Notes with, if applicable, Coupons and Talons attached to enable the Agent to comply with its obligations under this clause.

## 6. TERMS OF ISSUE

6.1 The Agent shall cause all Temporary Global Notes, Permanent Global Notes and Definitive Notes delivered to and held by it under this Agreement to be maintained in safe custody and shall ensure that such Notes are issued only in accordance with the provisions of this Agreement and the relevant Global Note and Conditions.

6.2 Subject to the procedures set out in the Procedures Memorandum, for the purposes of subclause 3.1 the Agent is entitled to treat a telephone or facsimile communication from a person who the Agent believes to be the authorised representative of the Issuer or, as the case may be, the Guarantor, named in the list referred to in, or notified pursuant to, subclause 19.7 as sufficient instructions and authority of the Issuer and the Guarantor for the Agent to act in accordance with subclause 3.1.

6.3 In the event that a person who has signed on behalf of the Issuer any Note not yet issued but held by the Agent in accordance with subclause 3.1 ceases to be authorised as described in subclause 19.7, the Agent shall (unless the Issuer gives written notice to the Agent that Notes signed by that person do not constitute valid and binding obligations of the Issuer or otherwise until replacements have been provided to the Agent) continue to have authority to issue any such Notes, and the Issuer hereby warrants to the Agent that such Notes shall, unless notified as aforesaid, be valid and binding obligations of the Issuer. Promptly upon such person ceasing to be authorised, the Issuer shall provide the Agent with replacement Notes and upon receipt of such replacement Notes the Agent shall cancel and destroy the Notes held by it which are signed by such person and shall provide to the Issuer a confirmation of destruction in respect thereof specifying the Notes so cancelled and destroyed.

6.4 If the Agent pays an amount (the **Advance**) to the Issuer on the basis that a payment (the **Payment**) has been, or will be, received from a Dealer and if the Payment is not received by the Agent on the date the Agent pays the Issuer, the Issuer, failing which the Guarantor, shall repay to the Agent the Advance and shall pay interest on the Advance (or the unreimbursed portion thereof) from (and including) the date such Advance is made to (but excluding) the earlier of repayment of the Advance and receipt by the Agent of the Payment (at a rate quoted at that time by the Agent as the aggregate of one per cent. and its cost of funding the Advance provided that evidence of the basis of such rate is given to the Issuer if so required).

6.5 Except in the case of issues where the Agent does not act as receiving bank for the Issuer in respect of the purchase price of the Notes being issued, if on the relevant Issue Date a Dealer does not pay the full purchase price due from it in respect of any Note (the **Defaulted Note**) and, as a result, the Defaulted Note remains in the Agent's distribution account with Euroclear and/or Clearstream, Luxembourg after such Issue Date, the Agent will continue to hold the Defaulted Note to the order of the Issuer. The Agent shall notify the Issuer forthwith of the failure of the Dealer to pay the full purchase price due from it in respect of any Defaulted Note and, subsequently, shall notify the Issuer forthwith upon

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receipt from the Dealer of the full purchase price in respect of such Defaulted Note.

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## 7. PAYMENTS

7.1 The Issuer, failing which the Guarantor will, before 10.00 a.m. (local time in the relevant financial centre of the payment), on each date on which any payment in respect of any Note becomes due, transfer to an account specified by the Agent such amount in the relevant currency as shall be sufficient for the purposes of such payment in funds settled through such payment system as the Agent and the Issuer or, as the case may be, the Guarantor may agree.

7.2 The Issuer, failing which the Guarantor will ensure that no later than 10.00 a.m. (London time) on the Business Day (as defined below) immediately preceding the date on which any payment is to be made to the Agent pursuant to subclause 7.1, the Agent shall receive a payment confirmation from the paying bank of the Issuer.

For the purposes of this clause **Business Day** means a day which is both:

- (a) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in London and any other place specified in the applicable Final Terms as an Additional Business Centre; and
- (b) either (i) in relation to a payment to be made in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments in the principal financial centre of the country of the relevant Specified Currency (if other than London and any Additional Business Centre) and which, if the Specified Currency is New Zealand Dollars, shall be Auckland or (ii) in relation to any sum payable in euro, a day on which the Trans-European Automated Real Time Gross Settlement Express Transfer (TARGET 2) System is operating.

7.3 The Agent shall ensure that payments of both principal and interest in respect of a Temporary Global Note will be made only to the extent that certification of non-U.S. beneficial ownership as required by U.S. securities laws and U.S. Treasury regulations has been received from Euroclear and/or Clearstream, Luxembourg in accordance with the terms thereof.

7.4 Subject to the receipt by the Agent of the payment confirmation as provided in subclause 7.2 above, the Agent or the relevant Paying Agent shall pay or cause to be paid all amounts due in respect of the Notes on behalf of the Issuer (failing which the Guarantor) in the manner provided in the Conditions. If any payment provided for in subclause 7.1 is made late but otherwise in accordance with the provisions of this Agreement, the Agent and each Paying Agent shall nevertheless make payments in respect of the Notes as aforesaid following receipt by it of such payment.

7.5 If for any reason the Agent considers in its reasonable opinion that the amounts to be received by the Agent pursuant to subclause 7.1 will be, or the amounts actually received by it pursuant thereto are, insufficient to satisfy all claims in respect of all payments then falling due in respect of the Notes, neither the Agent nor any Paying Agent shall be obliged to pay any such claims until the Agent has received the full amount of all such payments.

7.6 Without prejudice to subclauses 7.4 and 7.5, if the Agent pays any amounts to the holders of Notes or Coupons or to any Paying Agent at a time when it has not received payment in full in respect of the relevant Notes in accordance with subclause 7.1 (the excess of the amounts so paid over the amounts so received being the **Shortfall**), the Issuer, failing which the Guarantor will, in addition to paying amounts due under subclause 7.1, pay to the Agent on demand interest (at a rate which represents the aggregate of one per cent. and the Agent's cost of funding the Shortfall) on the Shortfall (or the unreimbursed portion

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thereof) until the receipt in full by the Agent of the Shortfall.

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7.7 The Agent shall on demand promptly reimburse each Paying Agent for payments in respect of Notes properly made by such Paying Agent in accordance with this Agreement and the Conditions unless the Agent has notified the Paying Agent, prior to the opening of business in the location of the office of the Paying Agent through which payment in respect of the Notes can be made on the due date of a payment in respect of the Notes, that the Agent does not expect to receive sufficient funds to make payment of all amounts falling due in respect of such Notes.

7.8 Whilst any Notes are represented by Global Notes, all payments due in respect of such Notes shall be made to, or to the order of, the holder of the Global Notes, subject to and in accordance with the provisions of the Global Notes. On the occasion of any such payment (i) in the case of a CGN, the Paying Agent to which the Global Note was presented for the purpose of making such payment shall cause the appropriate Schedule to the relevant Global Note to be annotated so as to evidence the amounts and dates of such payments of principal and/or interest as applicable or (ii) in the case of any Global Note which is an NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such payment.

7.9 If the amount of principal and/or interest then due for payment is not paid in full (otherwise than by reason of a deduction required by law to be made therefrom or by reason of a FATCA Withholding),
(i) the Paying Agent to which a Note is presented for the purpose of making such payment shall, unless the Note is an NGN, make a record of such Shortfall on the Note and such record shall, in the absence of manifest error, be prima facie evidence that the payment in question has not to that extent been made or (ii) in the case of any Global Note which is an NGN, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such shortfall in payment.

7.10 In the event that (a) the Issuer is or becomes a Participating FFI, (b) Notes are issued or amended (or any terms of the Notes are waived) after the Grandfathering Date and (c) the Issuer or the Guarantor determines in its sole discretion that FATCA Withholding will be required in connection with any payment due to the Agent on any Notes, then the Issuer or the Guarantor will be entitled to re-direct or reorganise any such payment in any way that it sees fit in order that the payment may be made without FATCA Withholding provided that any such redirected or reorganised payment is otherwise made in accordance with this Agreement. The Issuer will promptly notify the Agent and the Noteholders of any such redirection or reorganisation.

7.11 The Agent shall be entitled to deduct FATCA Withholding, and shall have no obligation to gross-up any payment hereunder or to pay any additional amount as a result of such FATCA Withholding.

# 8. DETERMINATIONS AND NOTIFICATIONS IN RESPECT OF NOTES AND INTEREST DETERMINATION

# 8.1 Determinations and Notifications

(a) The Agent shall make all such determinations and calculations (howsoever described) as it is required to do under the Conditions, all subject to and in accordance with the Conditions.
(b) The Agent shall not be responsible to the Issuer, the Guarantor or to any third party as a result of the Agent having acted on any quotation given by any Reference Bank which subsequently may be found to be incorrect.
(c) The Agent shall promptly notify (and confirm in writing to) the Issuer, the Guarantor, the other Paying Agents and (in respect of a Series of Notes listed on a Stock Exchange) the

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relevant Stock Exchange of, *inter alia*, each Rate of Interest, Interest Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions as

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soon as practicable after the determination thereof and of any subsequent amendment thereto pursuant to the Conditions.

(d) The Agent shall use its best endeavours to cause each Rate of Interest, Interest Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions to be published as required in accordance with the Conditions as soon as possible after their determination or calculation.

(e) If the Agent does not at any material time for any reason determine and/or calculate and/or publish the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any Interest Period or any other amount, rate or date as provided in this clause, it shall forthwith notify the Issuer, the Guarantor and the other Paying Agents of such fact.

(f) Determinations with regard to Notes shall be made by the Calculation Agent specified in the applicable Final Terms in the manner specified in the applicable Final Terms. Unless otherwise agreed between the Issuer and the relevant Dealer or unless the Agent is the Calculation Agent (in which case the provisions of this Agreement shall apply), such determinations shall be made on the basis of a Calculation Agency Agreement substantially in the form of Appendix 1 to this Agreement.

### 8.2 Interest Determination, Screen Rate Determination including Fallback Provisions

(a) Where Screen Rate Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest Period will be determined in accordance with the Conditions.

(b) The Conditions also contain provisions for determining the Rate of Interest in the event that the Relevant Screen Page is not available or the quotation or quotations required by the Conditions are unavailable or following a Benchmark Event or Benchmark Transition Event.

### 9. NOTICE OF ANY WITHHOLDING OR DEDUCTION

In the event that (a) the Issuer or the Guarantor is or becomes a Participating FFI and (b) Notes are issued or amended (or any terms of the Notes are waived) after the Grandfathering Date, the Issuer will notify the Agent as soon as is practicable of: (i) the fact that the Issuer or the Guarantor is or has become a Participating FFI, and (ii) any other information known to the Issuer and pertaining to the Issuer or, as the case may be, the Guarantor, necessary for the Agent to determine the amount, if any, it is required to withhold or deduct in respect of any FATCA Withholding in relation to any payment under the Notes.

### 10. DUTIES OF THE AGENT IN CONNECTION WITH EARLY REDEMPTION

10.1 If the Issuer decides to redeem any Notes for the time being outstanding prior to their Maturity Date in accordance with the Conditions, the Issuer shall, unless otherwise agreed, give notice of such decision to the Agent not less than 15 days before the date on which the Issuer will give notice to the Noteholders in accordance with the Conditions of such redemption in order to enable the Agent to undertake its obligations herein and in the Conditions.

10.2 If some only of the Notes are to be redeemed on such date, the Agent shall make the required drawing in accordance with the Conditions but shall give the Issuer and the Guarantor reasonable notice of the time and place proposed for such drawing and the Issuer shall be entitled to send representatives to attend such drawing.

10.3 The Agent shall publish the notice required in connection with any such redemption and

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shall at the same time also publish a separate list of the serial numbers of any Notes previously drawn and not

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presented for redemption. Such notice shall specify the date fixed for redemption, the redemption amount, the manner in which redemption will be effected and, in the case of a partial redemption, the serial numbers of the Notes to be redeemed. Such notice will be published in accordance with the Conditions. The Agent will also notify the other Paying Agents of any date fixed for redemption of any Notes.

10.4 Each Paying Agent will keep a stock of Put Notices and will make such notices available on demand to holders of Notes, the Conditions of which provide for redemption at the option of Noteholders. Upon receipt of any Note deposited in the exercise of such option in accordance with the Conditions, the Paying Agent with which such Note is deposited shall hold such Note (together with any Coupons and Talons relating to it deposited with it) on behalf of the depositing Noteholder (but shall not, save as provided below, release it) until the due date for redemption of the relevant Note consequent upon the exercise of such option, when, subject as provided below, it shall present such Note (and any such Coupons and Talons) to itself for payment of the amount due thereon together with any interest due on such date in accordance with the Conditions and shall pay such moneys in accordance with the directions of the Noteholder contained in the relevant Put Notice. If, prior to such due date for its redemption, such Note becomes immediately due and payable or if upon due presentation payment of such redemption moneys is improperly withheld or refused, the Paying Agent concerned shall post such Note (together with any such Coupons and Talons) by uninsured post to, and at the risk of, the relevant Noteholder unless the Noteholder has otherwise requested and paid the costs of such insurance to the relevant Paying Agent at the time of depositing the Notes at such address as may have been given by the Noteholder in the relevant Put Notice. At the end of each period for the exercise of such option, each Paying Agent shall promptly notify the Agent of the principal amount of the Notes in respect of which such option has been exercised with it together with their serial numbers and the Agent shall promptly notify such details to the Issuer. The Issuer or the Guarantor shall provide to the Agent sufficient supplies of blank Put Notices for such purposes.

# 11. RECEIPT AND PUBLICATION OF NOTICES

11.1 Forthwith upon the receipt by the Agent of a demand or notice from any Noteholder in accordance with the Conditions the Agent shall forward a copy thereof to the Issuer and the Guarantor.
11.2 On behalf of and at the request and expense of the Issuer (failing which the Guarantor), the Agent shall cause to be published all notices required to be given by the Issuer or the Guarantor to the Noteholders in accordance with the Conditions.

# 12. CANCELLATION OF NOTES, COUPONS AND TALONS

12.1 All Notes which are redeemed, all Coupons which are paid and all Talons which are exchanged shall be cancelled by the Agent or Paying Agent by which they are redeemed, paid or exchanged. In addition, the Issuer and the Guarantor shall immediately notify the Agent in writing of all Notes which are purchased by or on behalf of the Issuer or the Guarantor and all such Notes surrendered to a Paying Agent for cancellation, together (in the case of Definitive Notes) with all unmatured Coupons or Talons (if any) attached thereto or surrendered therewith, shall be cancelled by the Paying Agent to which they are surrendered. Each of the other Paying Agents shall give to the Agent details of all payments made by it and shall deliver all cancelled Notes, Coupons and Talons to the Agent.
12.2 A certificate stating:

(a) the aggregate nominal amount of Notes which have been redeemed and the

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aggregate amount paid in respect thereof;

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(b) the number of Notes cancelled together (in the case of Notes in definitive form) with details of all unmatured Coupons or Talons (if any) attached thereto or delivered therewith;
(c) the aggregate amount paid in respect of interest on the Notes;
(d) the total number by maturity date of Coupons and Talons so cancelled; and
(e) (in the case of Definitive Notes) the serial numbers of such Notes,

shall be given to the Issuer by the Agent as soon as reasonably practicable and in any event upon written request within three months after the date of such repayment or, as the case may be, payment or exchange.

12.3 The Agent shall destroy all cancelled Notes, Coupons and Talons and, forthwith upon destruction, furnish the Issuer upon written request with a certificate of the serial numbers of the Notes (in the case of Notes in definitive form) and the number by maturity date of Coupons and Talons so destroyed.

12.4 Without prejudice to the obligations of the Agent pursuant to subclause 12.2, the Agent shall keep a full and complete record of all Notes, Coupons and Talons (other than serial numbers of Coupons) and of their redemption, purchase by or on behalf of the Issuer or the Guarantor and cancellation, payment or exchange (as the case may be) and of all replacement Notes, Coupons or Talons issued in substitution for mutilated, defaced, destroyed, lost or stolen Notes, Coupons or Talons. The Agent shall in respect of the Coupons of each maturity retain (in the case of Coupons other than Talons) until the expiry of ten years from the Relevant Date in respect of such Coupons and (in the case of Talons) indefinitely either all paid or exchanged Coupons of that maturity or a list of the serial numbers of Coupons of that maturity still remaining unpaid or unexchanged. The Agent shall at all reasonable times make such record available to the Issuer, the Guarantor and any persons authorised by it for inspection and for the taking of copies thereof or extracts therefrom.

12.5 The Agent is authorised by the Issuer and instructed (a) in the case of any Global Note which is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note to reflect the reduction in the nominal amount represented by it by the amount so redeemed or purchased and cancelled and (b) in the case of any Global Note which is an NGN, to instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such redemption or purchase and cancellation, as the case may be; provided, that, in the case of a purchase or cancellation, the Issuer has notified the Agent of the same in accordance with subclause 12.1.

12.6 All records and certificates made or given pursuant to this clause and clause 13 shall make a distinction between Notes, Coupons and Talons of each Series.

### **13. ISSUE OF REPLACEMENT NOTES, COUPONS AND TALONS**

13.1 The Issuer will cause a sufficient quantity of additional forms of Notes, Coupons and Talons to be available, upon request, to the Agent at its specified office for the purpose of issuing replacement Notes, Coupons and Talons as provided below.

13.2 The Agent will, subject to and in accordance with the Conditions and the following provisions of this clause, cause to be delivered any replacement Notes, Coupons and Talons which the Issuer may determine to issue in place of Notes, Coupons and Talons which have been lost, stolen, mutilated, defaced or destroyed.

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13.3 In the case of a mutilated or defaced Note, the Agent shall ensure that (unless otherwise covered by such indemnity as the Issuer may reasonably require) any replacement Note will only have attached

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to it Coupons and Talons corresponding to those (if any) attached to the mutilated or defaced Note which is presented for replacement.

13.4 The Agent shall not issue any replacement Note, Coupon or Talon unless and until the claimant therefor shall have:

(a) paid such costs and expenses as may be incurred in connection therewith;
(b) furnished it with such evidence and indemnity as the Issuer may reasonably require; and
(c) in the case of any mutilated or defaced Note, Coupon or Talon, surrendered it to the Agent.

13.5 The Agent shall cancel any mutilated or defaced Notes, Coupons and Talons in respect of which replacement Notes, Coupons and Talons have been issued pursuant to this clause and shall furnish the Issuer with a certificate stating the serial numbers of the Notes, Coupons and Talons so cancelled and, unless otherwise instructed by the Issuer in writing, shall destroy such cancelled Notes, Coupons and Talons and furnish the Issuer with a destruction certificate containing the information specified in subclause 12.3.

13.6 The Agent shall, on issuing any replacement Note, Coupon or Talon, forthwith inform the Issuer and the other Paying Agents of the serial number of such replacement Note, Coupon or Talon issued and (if known) of the serial number of the Note, Coupon or Talon in place of which such replacement Note, Coupon or Talon has been issued. Whenever replacement Coupons or Talons are issued pursuant to the provisions of this clause, the Agent shall also notify the other Paying Agents of the maturity dates of the lost, stolen, mutilated, defaced or destroyed Coupons or Talons and of the replacement Coupons or Talons issued.

13.7 The Agent shall keep a full and complete record of all replacement Notes, Coupons and Talons issued and shall make such record available at all reasonable times to the Issuer, the Guarantor and any persons authorised by it for inspection and for the taking of copies thereof or extracts therefrom.

13.8 Whenever any Note, Coupon or Talon for which a replacement Note, Coupon or Talon has been issued and in respect of which the serial number is known is presented to the Agent or any of the other Paying Agents for payment, the Agent or, as the case may be, the relevant other Paying Agent shall immediately send notice thereof to the Issuer and the other Paying Agents.

#### **14. COPIES OF DOCUMENTS AVAILABLE FOR INSPECTION OR COLLECTION**

14.1 The Paying Agents shall hold available for inspection or collection at their specified office during normal business hours copies of all documents required to be so available by the Conditions of any Notes. For these purposes, the Issuer, failing which the Guarantor, shall furnish the Paying Agents with sufficient copies of each of the relevant documents.

14.2 Each Paying Agent shall provide by email to a Noteholder copies of all documents required to be so available by the Conditions of any Notes, following the Noteholder's prior written request and provision of proof of holding and identity (in a form satisfactory to the relevant Paying Agent).

#### **15. MEETINGS OF NOTEHOLDERS**

15.1 The provisions of Schedule 4 hereto shall apply to meetings of the Noteholders and shall

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have effect in the same manner as if set out in this Agreement.

15.2 Without prejudice to subclause 15.1, each of the Agent and the other Paying Agents on the request of any Noteholder shall issue voting certificates and block voting instructions in accordance with

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Schedule 4 and shall forthwith give notice to the Issuer in writing of any revocation or amendment of a block voting instruction. Each of the Agent and the other Paying Agents will keep a full and complete record of all voting certificates and block voting instructions issued by it and will, not less than 24 hours before the time appointed for holding a meeting or adjourned meeting, deposit at such place as the Agent shall designate or approve, full particulars of all voting certificates and block voting instructions issued by it in respect of such meeting or adjourned meeting. The Issuer shall provide to the Agent sufficient supplies of such voting certificates and block voting instructions for such purposes.

## **16. COMMISSIONS, EXPENSES AND REVIEW OF FEES AND EXPENSES**

16.1 The Issuer, failing which the Guarantor agrees to pay to the Agent such fees and commissions as the Issuer, the Guarantor and the Agent shall separately agree in respect of the services of the Agent and the other Paying Agents hereunder together with any expenses reasonably incurred (including legal, printing, postage, fax, cable and advertising expenses) incurred by the Agent and the other Paying Agents in connection with their said services.

16.2 The Agent will make payment of the fees and commissions due hereunder to the other Paying Agents and will reimburse their expenses promptly after the receipt of the relevant moneys from the Issuer or, as the case may be, the Guarantor. Neither the Issuer nor the Guarantor shall be responsible for any such payment or reimbursement by the Agent to the other Paying Agents.

16.3 The parties to this Agreement agree that, at the request of the Agent, the fees and expenses payable under this clause 16 may be reviewed and increased from time to time in accordance with the Agent's or any other relevant Paying Agent's then current fee levels. In addition, the Agent reserves the right at any time and from time to time to charge the Issuer properly incurred additional fees and expenses in respect of the performance by the Agent or such other Paying Agent of services hereunder in respect of any exercise by the Issuer or the Noteholders of any call or put option, exchanges, conversions, solicitations, offers, tenders or any other process that requires communication with the Noteholders.

## **17. INDEMNITY**

17.1 The Issuer, failing which the Guarantor, agrees to indemnify, defend and hold the Agent and its officers, directors, employees, agents and shareholders harmless from and against any and all liabilities that are properly incurred by each of them and their respective officers, directors, employees, agents and shareholders arising directly or indirectly out of or in connection with this Agreement (including value added tax or similar tax pursuant to clause 1.4 of this Agreement and stamp and other documentary taxes and duties pursuant to clause 27 of this Agreement, but excluding all other taxes), including, without limitation, any payment made by the Agent relying on information received by it pursuant to clause 7 and the legal costs and expenses as such expenses are incurred (including, without limitation, the expenses of any experts, counsel, agents or other professional advisers) of investigating, preparing for or defending itself against any action, claim or liability in connection with its performance hereunder. In no event however, shall the Issuer or the Guarantor be obliged to indemnify the Agent and keep the Agent harmless from any fees, expenses, charges and/or liabilities (i) incurred by the Agent as a result of its own fraud, wilful misconduct or negligence, or (ii) the reimbursement of which is governed by another clause of this Agreement.

17.2 The indemnity set out above shall survive the resignation or removal of the Agent or any termination or expiry of this Agreement including any termination under any bankruptcy law or similar.

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## 18. REPAYMENT BY THE AGENT

Upon the Issuer or, as the case may be, the Guarantor being discharged from its obligation to make payments in respect of any Notes pursuant to the relevant Conditions, and provided that there is no outstanding, bona fide and proper claim in respect of any such payments, the Agent shall forthwith on demand pay to the Issuer or, as the case may be, the Guarantor sums equivalent to any amounts paid to it by the Issuer or, as the case may be, the Guarantor for the purposes of such payments.

## 19. CONDITIONS OF APPOINTMENT

19.1 The Agent shall be entitled to deal with money paid to it by the Issuer or the Guarantor for the purpose of this Agreement in the same manner as other money paid to a banker by its customers except:

- (a) that it shall not exercise any right of set-off, lien or similar claim in respect thereof;
- (b) as provided in subclause 19.2 below; and
- (c) that it shall not be liable to account to the Issuer or the Guarantor for any interest thereon.

19.2 In acting hereunder and in connection with the Notes, the Agent and the other Paying Agents shall act solely as agents of the Issuer and the Guarantor and will not thereby assume any obligations towards or relationship of agency or trust for or with any of the owners or holders of the Notes, Coupons or Talons.

19.3 The Agent and the other Paying Agents hereby undertake to the Issuer and the Guarantor to perform such obligations and duties, and shall be obliged to perform such duties and only such duties as are herein (including Schedule 8 in the case of the Agent), in the Conditions and in the Procedures Memorandum specifically set forth and no implied duties or obligations shall be read into this Agreement or the Notes against the Agent and the other Paying Agents. Each of the Paying Agents (other than the Agent) agrees that if any information that is required by the Agent to perform the duties set out in Schedule 8 becomes known to it, it will promptly provide such information to the Agent.

19.4 The Agent may consult with legal and other professional advisers and the opinion of such advisers shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith and in accordance with the opinion of such advisers.

19.5 Each of the Agent and the other Paying Agents shall be protected and shall incur no liability for or in respect of any action taken, omitted or suffered in reliance upon any instruction, request or order from the Issuer or the Guarantor or any notice, resolution, direction, consent, certificate, affidavit, Note, statement, cable, telex or other paper or document which it reasonably believes to be genuine and to have been delivered, signed or sent by the proper party or parties or upon written instructions from the Issuer or the Guarantor.

19.6 Any of the Agent and the other Paying Agents and their officers, directors and employees may become the owner of, or acquire any interest in, any Notes, Coupons or Talons with the same rights that it or they would have if the Agent or the relevant other Paying Agent, as the case may be, concerned were not appointed hereunder, and may engage or be interested in any financial or other transaction with the Issuer or the Guarantor and may act on, or as depositary, trustee or agent for, any committee or body of holders of Notes or Coupons or in connection with any other obligations of the Issuer or the Guarantor as freely as if the Agent or the relevant other Paying Agent, as the case may be, were not appointed hereunder.

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19.7 The Issuer and the Guarantor shall provide the Agent with a certified copy of the list of persons authorised to execute documents and take action on its behalf in connection with this Agreement and shall notify the Agent immediately in writing if any of such persons ceases to be so authorised or if any additional person becomes so authorised together, in the case of an additional authorised person, with evidence satisfactory to the Agent that such person has been so authorised.

19.8 Notwithstanding any provision of this Agreement to the contrary, the Agent shall not in any event be liable for indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), whether or not foreseeable, even if the Agent has been advised of the likelihood of such loss or damage and regardless of whether the claim for loss or damage is made in negligence, for breach of contract or otherwise.

19.9 Notwithstanding anything to the contrary in the transaction documents, the Agent shall not be liable to any person for any matter or thing done or omitted in any way in connection with the transaction documents save in relation to its own wilful default, negligence, fraud or wilful misconduct, including that of its officers and employees.

19.10 The Agent shall not be under any obligation to take (and the Agent shall be entitled to refrain from taking without liability) any action under this Agency Agreement (including without limitation, any legal action or proceedings under or in connection with this Agency Agreement) or the other transaction documents which in its reasonable opinion may be illegal or contrary to any law or regulation applicable to it (including, without limitation, the laws of the United States of America or any jurisdiction forming part of it or England and Wales or Luxembourg) or any direction or regulation of any agency of any such state or jurisdiction. The Agent may without liability do anything which is, in its reasonable opinion, necessary to comply with any such law, directive, policy or regulation. In such event, the Agent shall, where legally permissible and reasonably practicable, take all reasonable steps to notify the Issuer that it has so refrained.

## **20. RELEASE OF THE GUARANTOR**

20.1 If the Guarantee terminates and the Guarantor is released from its obligations in respect of the Notes pursuant to Condition 2(c) (*Termination of Guarantee*), the Guarantor will be deemed to be simultaneously released from its rights and obligations as the Guarantor under this Agreement from (and including) the Guarantee Termination Date, without prejudice to any obligations which may have accrued prior to that time, without the need for any further act or thing to be done.

20.2 Pursuant to the terms of Condition 2(c), the Issuer shall deliver to the Agent a notice of such termination as soon as reasonably practicable after such termination.

## **21. COMMUNICATION BETWEEN THE PARTIES**

A copy of all communications relating to the subject matter of this Agreement between the Issuer, the Guarantor and the Noteholders or Couponholders and any of the Paying Agents (other than the Agent) shall be sent to the Agent by the other relevant Paying Agent.

## **22. CHANGES IN AGENT AND OTHER PAYING AGENTS**

22.1 Each of the Issuer and the Guarantor agrees that, for so long as any Note is outstanding, or until moneys for the payment of all amounts in respect of all outstanding Notes have been made available to the Agent and have been returned to the Issuer or, as the case may be, the Guarantor as provided herein:

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(a) so long as any Notes are listed on any Stock Exchange, there will at all times be a Paying Agent (which may be the Agent) with a specified office in such place as may be required by the rules and regulations of the relevant Stock Exchange or other relevant authority;
(b) there will at all times be a Paying Agent with a specified office outside Norway; and
(c) there will at all times be an Agent.

In addition, the Issuer and the Guarantor shall forthwith appoint a Paying Agent having a specified office in New York City in the circumstances described in the second paragraph of Condition 4(d). Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency (as provided in subclause 22.5 below), when it shall be of immediate effect) after not less than 30 nor more than 45 days' prior notice thereof shall have been given to the Noteholders in accordance with Condition 12.

22.2 The Agent may (subject as provided in subclause 22.4 below) at any time resign as Agent by giving at least 90 days' written notice to the Issuer and the Guarantor of such intention on its part, specifying the date on which its desired resignation shall become effective.

22.3 The Agent may (subject as provided in subclause 22.4 below) be removed at any time by the Issuer and the Guarantor on at least 30 days' notice by the filing with it of an instrument in writing signed on behalf of the Issuer and the Guarantor specifying such removal and the date when it shall become effective.

22.4 Any resignation under subclause 22.2 or removal under subclauses 22.3 or 22.5 shall only take effect upon the appointment by the Issuer and the Guarantor as hereinafter provided, of a successor Agent and (other than in cases of insolvency of the Agent) on the expiry of the notice to be given under clause 24. The Issuer and the Guarantor agree with the Agent that if, by the day falling ten days before the expiry of any notice under subclause 22.2, the Issuer and the Guarantor have not appointed a successor Agent, then the Agent shall be entitled, on behalf of the Issuer and the Guarantor to appoint as a successor Agent in its place a reputable financial institution of good standing which the Issuer shall approve (such approval not to be unreasonably withheld or delayed).

22.5 In case at any time the Agent resigns, or is removed, or becomes incapable of acting, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver of all or a substantial part of its property, or admits in writing its inability to pay or meet its debts as they mature or suspends payment thereof, or if any order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or insolvency law or if a receiver of it or of all or a substantial part of its property is appointed or if any officer takes charge or control of it or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, a successor Agent, which shall be a reputable financial institution of good standing may be appointed by the Issuer and the Guarantor by an instrument in writing filed with the successor Agent. Upon the appointment as aforesaid of a successor Agent and acceptance by the latter of such appointment and (other than in case of insolvency of the Agent when it shall be of immediate effect) upon expiry of the notice to be given under clause 24 the Agent so superseded shall cease to be the Agent hereunder.

22.6 Subject to subclause 22.1, the Issuer and the Guarantor may, after prior consultation with the Agent, terminate the appointment of any of the other Paying Agents at any time and/or appoint one or more further other Paying Agents by giving to the Agent, and to the relevant other Paying Agent at least 45 days' notice in writing to that effect (other than in the case of

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insolvency of the other Paying Agent).

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22.7 Subject to subclause 22.1, all or any of the Paying Agents may resign their respective appointments hereunder at any time by giving the Issuer, the Guarantor and the Agent at least 45 days' written notice to that effect.

22.8 Upon its resignation or removal becoming effective, the Agent or the relevant Paying Agent:

(a) shall forthwith transfer all moneys held by it hereunder and, if applicable, deliver the records referred to in subclauses 12.4 and 13.7 to the successor Agent hereunder; and

(b) shall be entitled to the payment by the Issuer, failing which the Guarantor of its commissions, fees and expenses for the services theretofore rendered hereunder in accordance with the terms of clause 16.

22.9 Upon its appointment becoming effective, a successor Agent and any new Paying Agent shall, without further act, deed or conveyance, become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of its predecessor or, as the case may be, a Paying Agent with like effect as if originally named as Agent or (as the case may be) a Paying Agent hereunder.

22.10 If either the Issuer or Guarantor is required to withhold or deduct any FATCA Withholding in connection with any payments due on the Notes and such FATCA Withholding would not have arisen but for the Paying Agent not being or having ceased to be a person to whom payments are free from FATCA Withholding, the Issuer or Guarantor will be entitled, during the period in which that Paying Agent is not a person to whom payments are free from FATCA Withholding, to terminate the Paying Agent with 10 days' notice and such termination will be effective from any such time specified in writing to such Paying Agent.

## 23. MERGER AND CONSOLIDATION

Any corporation into which the Agent or any other Paying Agent may be merged or converted, or any corporation with which the Agent or any of the other Paying Agents may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Agent or any of the other Paying Agents shall be a party, or any corporation to which the Agent or any of the other Paying Agents shall sell or otherwise transfer all or substantially all the assets of the Agent or any other Paying Agent, or any corporation to which the Agent or any other Paying Agent shall sell or otherwise transfer all or substantially all of its corporate trust business shall, on the date when such merger, conversion, consolidation or transfer becomes effective and to the extent permitted by any applicable laws, become the successor Agent or, as the case may be, other Paying Agent under this Agreement without the execution or filing of any paper or any further act on the part of the parties hereto, unless otherwise required by the Issuer or the Guarantor, and after the said effective date all references in this Agreement to the Agent or, as the case may be, such other Paying Agent shall be deemed to be references to such corporation. Written notice of any such merger, conversion, consolidation or transfer shall forthwith be given to the Issuer and the Guarantor by the Agent or other Paying Agent.

## 24. NOTIFICATION OF CHANGES TO PAYING AGENTS

Following receipt of notice of resignation from the Agent or any other Paying Agent and forthwith upon appointing a successor Agent or, as the case may be, further or other Paying Agents or on giving notice to terminate the appointment of the Agent or, as the case may be, other Paying Agent, the Agent (on behalf of and at the expense of the Issuer, failing which the Guarantor) shall give or cause to be given not more than 45 days' nor less than 30 days' notice thereof to the Noteholders in accordance with the Conditions.

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## 25. CHANGE OF SPECIFIED OFFICE

If the Agent or any other Paying Agent determines to change its specified office it shall (after having, in any such case other than a change of specified office within the same city, obtained the prior written approval of the Issuer and the Guarantor thereto) give to the Issuer, the Guarantor and (if applicable) the Agent written notice of such determination giving the address of the new specified office which shall be in the same city and stating the date on which such change is to take effect, which shall not be less than 45 days thereafter. The Agent (on behalf of the Issuer, failing which the Guarantor) but at its own expense) shall within 15 days of receipt of such notice (unless the appointment of the Agent or the other relevant Paying Agent, as the case may be, is to terminate pursuant to clause 22 on or prior to the date of such change) give or cause to be given not more than 45 days' nor less than 30 days' notice thereof to the Noteholders in accordance with the Conditions.

## 26. NOTICES AND COMMUNICATION

26.1 Any notice or communication given hereunder shall be sufficiently given or served:

- (a) if delivered in person to the relevant address specified on the signature pages hereof or such other address as may be notified by the recipient in accordance with this clause and, if so delivered, shall be deemed to have been delivered at time of receipt; or
- (b) if by email, when sent, subject to no delivery failure notification being received by the sender within 24 hours of the time of sending, to the relevant email address specified on the signature pages hereof or such other email address as may be notified by the recipient in accordance with this clause; or
- (c) if sent by facsimile to the relevant number specified on the signature pages hereof or such other address as may be notified by the recipient in accordance with this clause and, if so sent, shall be deemed to have been delivered immediately after transmission provided such transmission is confirmed when an acknowledgement of receipt is received.

26.2 Where a communication is received after business hours it shall be deemed to be received and become effective on the next business day. Every communication shall be irrevocable save in respect of any manifest error therein.

26.3 In no event shall the Agent or any other entity of The Bank of New York Mellon Group be liable for any losses arising to the Agent or any other entity of The Bank of New York Mellon Group receiving or transmitting any data from any Issuer, any Authorised Person or any party to the transaction via any non-secure method of transmission or communication, such as, but without limitation, by facsimile or email. The parties hereto accept that some methods of communication are not secure and the Agent or any other entity of The Bank of New York Mellon Group shall incur no liability for receiving Instructions via any such non-secure method. The Agent or any other entity of The Bank of New York Mellon Group is authorised to comply with and rely upon any such notice, Instructions or other communications believed by it to have been sent or given by an Authorised Person or an appropriate party to the transaction (or authorised representative thereof). The Issuer or authorised officer of the Issuer shall use all reasonable endeavours to ensure that Instructions transmitted to the Agent or any other entity of The Bank of New York Mellon Group pursuant to this Agreement are complete and correct. Any Instructions shall be conclusively deemed to be valid Instructions from the Issuer or authorised officer of the Issuer to the Agent or any other entity of The Bank of New York Mellon Group for the purposes of this Agreement.

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## 27. TAXES AND STAMP DUTIES

The Issuer, failing which the Guarantor, agrees to pay any and all stamp and other documentary taxes or duties which may be payable in connection with the execution, delivery, performance and enforcement of this Agreement.

## 28. CURRENCY INDEMNITY

If, under any applicable law and whether pursuant to a judgment being made or registered against the Issuer and/or the Guarantor or in the liquidation, insolvency or analogous process of the Issuer and/or the Guarantor or for any other reason, any payment under or in connection with this Agreement is made or fails to be satisfied in a currency (the **other currency**) other than that in which the relevant payment is expressed to be due (the **required currency**) under this Agreement, then, to the extent that the payment (when converted into the required currency at the rate of exchange on the date of payment or, if it is not practicable for the Agent or the relevant other Paying Agent to purchase the required currency with the other currency on the date of payment, at the rate of exchange as soon thereafter as it is practicable for it to do so or, in the case of a liquidation, insolvency or analogous process at the rate of exchange on the latest date permitted by applicable law for the determination of liabilities in such liquidation, insolvency or analogous process) actually received by the Agent or the relevant other Paying Agent falls short of the amount due under the terms of this Agreement, the Issuer and the Guarantor jointly and severally undertake that they shall, as a separate and independent obligation, indemnify and hold harmless the Agent and each other Paying Agent against the amount of such shortfall. For the purpose of this clause, **rate of exchange** means the rate at which the Agent or the relevant other Paying Agent is able on the relevant date to purchase the required currency with the other currency and shall take into account any premium and other costs of exchange.

## 29. AMENDMENTS

This Agreement may be amended in writing by agreement between the Issuer, the Guarantor, the Agent and the other Paying Agents, but without the consent of any Noteholder or Couponholder, for the purpose of curing any ambiguity or of curing, correcting or supplementing any defective provision contained herein or in any manner which the parties may mutually deem necessary or desirable and which shall not be materially prejudicial to the interests of the Noteholders. The Issuer, the Guarantor and the Agent may also agree any modification pursuant to Condition 13 of the Notes.

## 30. DESCRIPTIVE HEADINGS

The descriptive headings in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

## 31. CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agency Agreement or any agency agreement supplemental hereto has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agency Agreement or any agency agreement supplemental hereto, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

## 32. GOVERNING LAW AND SUBMISSION TO JURISDICTION

32.1 This Agreement and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

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32.2 The courts of England are to have exclusive jurisdiction to settle any disputes which may arise of out of or in connection with this Agreement (including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement) and accordingly any legal action or proceedings arising out of or in connection with this Agreement (Proceedings) (including any Proceedings relating to any non-contractual obligations arising out of or in connection with this Agreement) may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in any such courts whether on the ground of venue or on the ground that Proceedings have been brought in an inconvenient forum. This submission is made for the benefit of each of the Paying Agents and, to the extent allowed by applicable law, shall not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

The Issuer and the Guarantor irrevocably appoints Equinor UK Limited (whose offices are at the date of this Agreement at One Kingdom Street, Paddington Central, London W2 6BD) as their authorised agent for service of process in England. If for any reason such agent shall cease to be such agent for service of process, the Issuer and/or the Guarantor, as the case may be, shall forthwith, on request of the Agent, appoint a new agent for service of process in England and deliver to the Agent a copy of the new agent's acceptance of that appointment within 30 days. Nothing in this Agreement shall affect the right to serve process in any other manner permitted by law.

### 33. COUNTERPARTS

33.1 This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

### 34. GENERAL

34.1 If any provision in or obligation under this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Agreement.

### 35. EU CONTRACTUAL RECOGNITION OF BAIL-IN

Notwithstanding and to the exclusion of any other term of this Agreement or any other agreements, arrangements, or understanding between the parties to this Agreement, each of the parties to this Agreement acknowledges and accepts that a BRRD Liability arising under this Agreement may be subject to the exercise of Bail-in Powers by the Relevant Resolution Authority, and acknowledges, accepts, and agrees to be bound by:

(a) the effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of any BRRD Entity (a Relevant BRRD Party) to any other party under this Agreement, that (without limitation) may include and result in any of the following, or some combination thereof:

(i) the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;

(ii) the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of the Relevant BRRD Party or another person, and the issue to

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or conferral on any other party to this Agreement of such shares, securities or obligations;

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(iii) the cancellation of any BRRD Liability; and
(iv) the amendment or alteration of the amounts due in relation to any BRRD Liability, including any interest, if applicable, thereon, or the date on which any payments are due, including by suspending payment for a temporary period; and
(b) the variation of the terms of this Agreement as deemed necessary by the Relevant Resolution Authority, to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.

For the purposes of this clause 35:

**Bail-in Legislation** means, in relation to a member state of the European Economic Area which has implemented, or which at any time implements, the BRRD, the relevant implementing law, regulation, rule or requirement as described in the EU Bail-in Legislation Schedule from time to time;

**Bail-in Powers** means any Write-down and Conversion Powers as defined in the EU Bail-in Legislation Schedule, in relation to the relevant Bail-in Legislation;

**BRRD** means Directive 2014/59/EU of 15 May 2014 establishing the framework for the recovery and resolution of credit institutions and investment firms, as amended or replaced from time to time;

**BRRD Entity** means any party to this Agreement that is subject to Bail-in Powers;

**BRRD Liability** means any liability in respect of which the relevant Bail-in Powers may be exercised;

**EU Bail-in Legislation Schedule** means the document described as such, then in effect, and published by the Loan Market Association (or any successor person) from time to time; and

**Relevant Resolution Authority** means, in respect of any Relevant BRRD Party, the resolution authority with the ability to exercise any Bail-in Powers in relation to such Relevant BRRD Party.

**IN WITNESS WHEREOF** the parties hereto have executed this Agreement as of the date first above written.

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## SCHEDULE 1

### TERMS AND CONDITIONS OF THE NOTES OTHER THAN VPS NOTES

*The following are the Terms and Conditions of the Notes other than VPS Notes which will be incorporated by reference into each global Note and each definitive Note, in the latter case only if permitted by the relevant stock exchange or listing authority (if any) and agreed by the Issuer and the relevant Dealer at the time of issue but, if not so permitted and agreed, such definitive Note will have endorsed thereon or attached thereto such Terms and Conditions. The applicable Final Terms (or the relevant provisions thereof) will be endorsed upon, or attached to, each temporary global Note, permanent global Note and definitive Note. Reference should be made to "Form of Final Terms" above for a description of the content of Final Terms which will include certain terms used in the following Terms and Conditions or specify which of such terms are to apply in relation to the relevant Notes.*

This Note is one of a Series (as defined below) of Notes issued by Equinor ASA (the **Issuer**) pursuant to the Agency Agreement (as defined below).

References herein to the **Notes** shall be references to the Notes of this Series and shall mean:

- (i) in relation to any Notes represented by a global Note, units of each Specified Denomination in the Specified Currency;
- (ii) definitive Notes issued in exchange for a global Note; and
- (iii) any global Note.

The Notes and the Coupons (as defined below) also have the benefit of an amended and restated Agency Agreement (such Agency Agreement, as modified and/or restated and/or supplemented from time to time, the **Agency Agreement**) dated 9 May 2022 and made among the Issuer, Equinor Energy AS (the **Guarantor**), The Bank of New York Mellon, London Branch as issuing and principal paying agent and agent bank (the **Agent**, which expression shall include any successor agent specified in the applicable Final Terms) and the other paying agents named therein (together with the Agent, the **Paying Agents**, which expression shall include any additional or successor paying agents).

If so indicated in the applicable Final Terms, the Notes will (subject to Condition 2(c) (*Termination of Guarantee*)) have the benefit of the deed of guarantee executed by the Guarantor (such deed as modified and/or restated and/or supplemented from time to time, the **Guarantee**) dated 13 May 2020.

Interest bearing definitive Notes have interest coupons (**Coupons**) and in the case of Notes which, when issued in definitive form, have more than 27 interest payments remaining talons for further Coupons (**Talons**) attached on issue. Any reference herein to Coupons or coupons shall, unless the context otherwise requires, be deemed to include a reference to Talons or talons.

The final terms for this Note (or the relevant provisions thereof) are set out in Part A of the Final Terms attached to or endorsed on this Note and complete these Terms and Conditions. References to the **applicable Final Terms** are to Part A of the Final Terms (or the relevant provisions thereof) attached to or endorsed on this Note.

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Any reference to **Noteholders** shall mean the holders of the Notes, and shall, in relation to any Notes represented by a global Note, be construed as provided below. Any reference herein to **Couponholders** shall mean the holders of any Coupons, and shall, unless the context otherwise requires, include the holders of any Talons.

As used herein, **Tranche** means all Notes with the same Issue Date and which are subject to the same Final Terms and **Series** means a Tranche of Notes together with any further Tranche or Tranches of Notes which are (i) expressed to be consolidated and form a single series and (ii) identical in all respects (including as to listing and admission to trading) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices.

The Noteholders and the Couponholders are entitled to the benefit of the Deed of Covenant (such Deed of Covenant, as modified and/or restated and/or supplemented from time to time, the **Deed of Covenant**) dated 13 May 2020 and made by the Issuer. The original of the Deed of Covenant is held by a common depository on behalf of Euroclear (as defined below) and Clearstream, Luxembourg (as defined below).

Copies of the Agency Agreement and the Deed of Covenant (i) are available for inspection or collection during normal business hours at the specified office of each of the Agent and the other Paying Agents or (ii) may be provided by email to a Noteholder following their prior written request to the Agent or any other Paying Agent and provision of proof of holding and identity (in a form satisfactory to the Agent or the relevant Paying Agent, as the case may be). When the Notes are to be admitted to trading on the main market of the London Stock Exchange plc, the applicable Final Terms will be published on the website of the London Stock Exchange plc through a regulatory information service. The applicable Final Terms will, during normal business hours, be available for viewing at and copies may be obtained from the registered office of the Issuer and from the specified office of each of the Paying Agents by a Noteholder upon such Noteholder producing evidence satisfactory to the relevant Paying Agent as to its holding of such Notes and its identity. The Noteholders and the Couponholders are deemed to have notice of, and are entitled to the benefit of, all the provisions of the Agency Agreement and the applicable Final Terms which are applicable to them.

Words and expressions defined in the Agency Agreement or used in the applicable Final Terms shall have the same meanings where used in these Terms and Conditions unless the context otherwise requires or unless otherwise stated and provided that, in the event of inconsistency between the Agency Agreement and the applicable Final Terms, the applicable Final Terms will prevail.

## 1. Form, Denomination and Title

The Notes are in bearer form and, in the case of definitive Notes, serially numbered, in the currency (the **Specified Currency**) and the denominations (the **Specified Denomination(s)**) specified in the applicable Final Terms. Notes of one Specified Denomination may not be exchanged for Notes of another Specified Denomination.

This Note may be a Fixed Rate Note, a Floating Rate Note, a Zero Coupon Note or a combination of any of the foregoing, depending upon the Interest Basis shown in the applicable Final Terms.

Definitive Notes are issued with Coupons attached, unless they are Zero Coupon Notes in which case references to Coupons and Couponholders in these Terms and Conditions are not applicable.

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Subject as set out below, title to the Notes and Coupons will pass by delivery. The Issuer, the Guarantor, and any Paying Agent may deem and treat the bearer of any Note or Coupon as the absolute owner thereof (whether or not overdue and notwithstanding any notice of ownership or writing thereon or notice of any previous loss or theft thereof) for all purposes but, in the case of any global Note, without prejudice to the provisions set out in the next succeeding paragraph.

For so long as any of the Notes is represented by a global Note held on behalf of Euroclear Bank SA/NV (**Euroclear**) and/or Clearstream Banking S.A. (**Clearstream, Luxembourg**) each person (other than Euroclear or Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear or of Clearstream, Luxembourg as the holder of a particular nominal amount of such Notes (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be treated by the Issuer, the Guarantor (in the case of Notes having the benefit of the Guarantee), the Agent and any other Paying Agent as the holder of such nominal amount of such Notes for all purposes other than with respect to the payment of principal or interest on such nominal amount of such Notes, for which purpose the bearer of the relevant global Note shall be treated by the Issuer, the Guarantor (in the case of Notes having the benefit of the Guarantee), the Agent and any other Paying Agent as the holder of such nominal amount of such Notes in accordance with and subject to the terms of the relevant global Note and the expressions **Noteholder** and **holder of Notes** and related expressions shall be construed accordingly. Notes which are represented by a global Note will be transferable only in accordance with the rules and procedures for the time being of Euroclear or of Clearstream, Luxembourg, as the case may be.

## 2. Status of the Notes and the Guarantee

### (a) Status of the Notes

The Notes and the relative Coupons (if any) constitute unsecured and unsubordinated obligations of the Issuer and shall at all times rank *pari passu* and without any preference among themselves. The payment obligations of the Issuer under the Notes and the relative Coupons (if any) shall, save for such exceptions as may be provided by applicable legislation, at all times rank at least equally with all its other present and future unsecured and unsubordinated obligations.

### (b) Status of Guarantee

The obligations of the Guarantor under the Guarantee constitute unsecured and unsubordinated obligations of the Guarantor and shall at all times rank *pari passu* and without any preference among themselves and (with the exception of obligations in respect of national and local taxes and certain other statutory exceptions and subject as aforesaid) at least equally with all its other present and future unsecured and unsubordinated obligations.

### (c) Termination of Guarantee

(i) The Guarantee shall automatically and unconditionally be terminated on the Guarantee Termination Date. As soon as reasonably practicable after such termination (and by no later than 15 Business Days (as defined in Condition 3(b)(i) (*Interest Payment Dates*)) after the Guarantee Termination Date), the Guarantor or the Issuer shall provide notice of such termination to the Noteholders and Couponholders in accordance with Condition 12 (*Notices*).

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For the purposes of this Condition 2(c)(i):

**Guarantee Termination Date** means the first date on which the aggregate amount of indebtedness for borrowed money for which the Guarantor is an obligor (as a guarantor, co-issuer or borrower) does not exceed 10 per cent. of the aggregate principal amount of indebtedness for borrowed money of the Issuer and its Subsidiaries (as defined in Condition 8 (*Events of Default*)), on a consolidated basis, as of such time; and

the amount of the Guarantor's indebtedness for borrowed money shall not include (A) any Notes subject to this Condition 2(c) (*Termination of Guarantee*), (B) any other debt the terms of which permit the termination of the Guarantor's guarantee of such debt under similar circumstances, as long as the Guarantor's obligations in respect of such other debt are terminated at substantially the same time as the Guarantee, and (C) any debt that is being refinanced at substantially the same time that the Guarantee of the Notes is being terminated, **provided that** any obligations of the Guarantor in respect of the debt that is incurred in the refinancing shall be included in the calculation of the Guarantor's indebtedness for borrowed money.

(ii) For the avoidance of doubt, the Notes may not be declared due and payable pursuant to Condition 8(e) (*Events of Default*) as a result of the Guarantee being terminated pursuant to this Condition 2(c) (*Termination of Guarantee*).

### 3. Interest

#### (a) *Interest on Fixed Rate Notes*

Each Fixed Rate Note bears interest from (and including) the Interest Commencement Date at the rate(s) per annum equal to the Rate(s) of Interest payable in arrear on the Interest Payment Date(s) in each year and on the Maturity Date if that does not fall on an Interest Payment Date.

If the Notes are in definitive form, except as provided in the applicable Final Terms, the amount of interest payable on each Interest Payment Date in respect of the Fixed Interest Period ending on (but excluding) such date will amount to the Fixed Coupon Amount. Payments of interest on any Interest Payment Date will, if so specified in the applicable Final Terms, amount to the Broken Amount(s) so specified.

As used in these Conditions, **Fixed Interest Period** means the period from (and including) an Interest Payment Date (or the Interest Commencement Date) to (but excluding) the next (or first) Interest Payment Date.

Except in the case of Notes in definitive form where a Fixed Coupon Amount or Broken Amount is specified in the applicable Final Terms, interest shall be calculated in respect of any period by applying the Rate of Interest to:

- (A) in the case of Fixed Rate Notes which are represented by a Global Note, the aggregate outstanding nominal amount of the Fixed Rate Notes represented by such Global Note; or
- (B) in the case of Fixed Rate Notes in definitive form, the Calculation Amount, and, in each case, multiplying such sum by the applicable Day Count Fraction.

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The resultant figure (including after application of any Fixed Coupon Amount or Broken Amount to the Calculation Amount in the case of Fixed Rate Notes in definitive form) shall be rounded to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention.

Where the Specified Denomination of a Fixed Rate Note in definitive form is a multiple of the Calculation Amount, the amount of interest payable in respect of such Fixed Rate Note shall be the product of the amount (determined in the manner provided above) for the Calculation Amount and the amount by which the Calculation Amount is multiplied to reach the Specified Denomination, without any further rounding.

In these Conditions, **Day Count Fraction** means, in respect of the calculation of an amount of interest in accordance with this Condition 3(a) (*Interest on Fixed Rate Notes*):

- (i) if 'Actual/Actual (ICMA)' is specified in the applicable Final Terms:
  - (a) in the case of Notes where the number of days in the relevant period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant payment date (the Accrual Period) is equal to or shorter than the Determination Period during which the Accrual Period ends, the number of days in such Accrual Period divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in the applicable Final Terms) that would occur in one calendar year; or
  - (b) in the case of Notes where the Accrual Period is longer than the Determination Period during which the Accrual Period ends, the sum of:
    - (1) the number of days in such Accrual Period falling in the Determination Period in which the Accrual Period begins divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Dates (as specified in the applicable Final Terms) that would occur in one calendar year; and
    - (2) the number of days in such Accrual Period falling in the next Determination Period divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Dates that would occur in one calendar year; and
- (ii) if '30/360' is specified in the applicable Final Terms, the number of days in the period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant payment date (such number of days being calculated on the basis of a year of 360 days with 12 30-day months) divided by 360.

In these Conditions:

**Determination Period** means each period from (and including) a Determination Date to but excluding the next Determination Date (including, where either the Interest Commencement Date or the final Interest Payment Date is not a Determination Date, the period commencing on the first Determination Date prior to, and ending on the first Determination Date following after, such date); and

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**sub-unit** means, with respect to any currency other than euro, the lowest amount of such currency that is available as legal tender in the country of such currency and, with respect to euro, means one cent.

(b) *Interest on Floating Rate Notes*

(i) *Interest Payment Dates*

Each Floating Rate Note bears interest from (and including) the Interest Commencement Date and such interest will be payable in arrear on either:

(A) the Specified Interest Payment Date(s) (each an **Interest Payment Date**) in each year specified in the applicable Final Terms; or

(B) if no Specified Interest Payment Date(s) is/are specified in the applicable Final Terms, each date (each an **Interest Payment Date**) which falls the number of months or other period specified as the Specified Period in the applicable Final Terms after the preceding Interest Payment Date or, in the case of the first Interest Payment Date, after the Interest Commencement Date.

Such interest will be payable in respect of each Interest Period (which expression, shall, in these Terms and Conditions, mean the period from (and including) an Interest Payment Date (or the Interest Commencement Date) to (but excluding) the next (or first) Interest Payment Date or the relevant payment date if the Notes become payable on a date other than an Interest Payment Date).

If a Business Day Convention is specified in the applicable Final Terms and (x) if there is no numerically corresponding day in the calendar month in which an Interest Payment Date should occur or (y) if any Interest Payment Date would otherwise fall on a day which is not a Business Day, then, if the Business Day convention specified is:

(1) in any case where Specified Periods are specified in accordance with Condition 3(b)(i)(B) above, the Floating Rate Convention, such Interest Payment Date (i) in the case of (x) above, shall be the last day that is a Business Day in the relevant month and the provisions of (B) below shall apply *mutatis mutandis* or (ii) in the case of (y) above, shall be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in which event (A) such Interest Payment Date shall be brought forward to the immediately preceding Business Day and (B) each subsequent Interest Payment Date shall be the last Business Day in the month which falls in the Specified Period after the preceding applicable Interest Payment Date occurred; or

(2) the Following Business Day Convention, such Interest Payment Date shall be postponed to the next day which is a Business Day; or

(3) the Modified Following Business Day Convention, such Interest Payment Date shall be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in which event such Interest Payment Date shall be brought forward to the immediately preceding Business Day; or

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(4) the Preceding Business Day Convention, such Interest Payment Date shall be brought forward to the immediately preceding Business Day.

In this Condition, **Business Day** means:

(A) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in any Additional Business Centre (other than TARGET2 System) specified in the applicable Final Terms;

(B) if TARGET2 System is specified as an Additional Business Centre in the applicable Final Terms, a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET2) System (the **TARGET2 System**) is open; and

(C) either (1) in relation to any sum payable in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency (which if the Specified Currency is New Zealand dollars shall be Auckland) or (2) in relation to any sum payable in euro, a day on which the TARGET2 System is open.

(ii) *Rate of Interest*

The Rate of Interest payable from time to time in respect of Floating Rate Notes will be determined in the manner specified in the applicable Final Terms.

(A) *ISDA Determination for Floating Rate Notes*

Where ISDA Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest Period will be the relevant ISDA Rate plus or minus (as indicated in the applicable Final Terms) the Margin (if any). For the purposes of this sub-paragraph (A), **ISDA Rate** for an Interest Period means a rate equal to the Floating Rate that would be determined by the Agent or the Calculation Agent, as applicable, under an interest rate swap transaction if the Agent or the Calculation Agent, as applicable, were acting as Calculation Agent (as defined in the ISDA Definitions (as defined below)) for that swap transaction under the terms of an agreement incorporating (i) if "2006 ISDA Definitions" is specified in the applicable Final Terms, the 2006 ISDA Definitions as amended and updated as at the Issue Date of the first Tranche of the Notes, published by the International Swaps and Derivatives Association, Inc. (**ISDA**); or (ii) if "2021 ISDA Definitions" is specified in the applicable Final Terms, the latest version of the 2021 ISDA Interest Rate Derivatives Definitions as at the Issue Date of the first Tranche of the Notes, published by ISDA (together, the **ISDA Definitions**) and under which:

(1) the Floating Rate Option is as specified in the applicable Final Terms;

(2) the Designated Maturity, if applicable, is a period specified in the applicable Final Terms;

(3) the relevant Reset Date is the day specified in the applicable Final Terms;

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(4) if the Floating Rate Option is an Overnight Floating Rate Option, the Overnight Rate Compounding Method is one of the following as specified in the applicable Final Terms:
(A) Compounding with Lookback;
(B) Compounding with Observation Period Shift; or
(C) Compounding with Lockout; and
(5) if the Floating Rate Option is a Compounded Index Floating Rate Option, the Index Method is Compounded Index Method with Observation Period Shift, as specified in the applicable Final Terms.

In connection with the Overnight Rate Compounding Method, references in the ISDA Definitions to numbers or other items specified in the relevant confirmation shall be deemed to be references to the numbers or other items specified for such purpose in the applicable Final Terms.

For the purposes of this sub-paragraph (A), (i) Floating Rate, Floating Rate Option, Designated Maturity, Reset Date, Overnight Floating Rate Option, Overnight Rate Compounding Method, Compounding with Lookback, Compounding with Observation Period Shift, Compounding with Lockout, Averaging with Lookback, Averaging with Observation Period Shift, Averaging with Lockout, Compounded Index Floating Rate Option, Index Method and Compounded Index Method with Observation Period Shift have the meanings given to those terms in the ISDA Definitions, (ii) the definition of Banking Day in the ISDA Definitions shall be amended to insert after the words "are open for" in the second line, the word "general" and (iii) Euro-zone means the region comprised of Member States of the European Union that adopt the single currency in accordance with the Treaty on European Union.

(B) Screen Rate Determination for Floating Rate Notes - Term Rate

Where "Screen Rate Determination" is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined and "Term Rate" is specified in the applicable Final Terms to be "Applicable", the Rate of Interest for each Interest Period will, subject to Condition 3(b)(viii) (Benchmark Discontinuation) and subject as provided below, be either:

(1) the offered quotation; or
(2) the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the offered quotations,

(expressed as a percentage rate per annum) for the Reference Rate (being either EURIBOR or NIBOR or STIBOR, in each case for the relevant currency and/or period, all as specified in the applicable Final Terms) which appears or appear, as the case may be, on the Relevant Screen Page (or such replacement page on that service which displays the information) as at the Specified Time on the Interest Determination Date in question plus or minus (as indicated in the applicable Final Terms) the Margin (if any), all as determined by the Agent or the Calculation Agent, as applicable. If five or more of such offered quotations are available on the Relevant Screen Page, the highest (or, if there is more than one such highest quotation, one

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only of such quotations) and the lowest (or, if there is more than one such lowest quotation, one only of such quotations) shall be disregarded by the Agent or the Calculation Agent, as applicable, for the purpose of determining the arithmetic mean (rounded as provided above) of such offered quotations.

If, other than in the circumstances described in Condition 3(b)(viii) (Benchmark Discontinuation) below, the Relevant Screen Page is not available or if, in the case of Condition 3(b)(ii)(B)(1), no such offered quotation appears or, in the case of Condition 3(b)(ii)(B)(2), fewer than three such offered quotations appear, in each case as at the time specified in Condition 3(b)(ii)(B) the Agent or the Calculation Agent, as applicable, shall request each of the Reference Banks to provide the Agent or the Calculation Agent, as applicable, with its offered quotation (expressed as a percentage rate per annum) for the Reference Rate at approximately the Specified Time on the Interest Determination Date in question. If two or more of the Reference Banks provide the Agent or the Calculation Agent, as applicable, with such offered quotations, the Rate of Interest for such Interest Period shall be the arithmetic mean (rounded if necessary to the fifth decimal place with 0.000005 being rounded upwards) of such offered quotations plus or minus (as appropriate) the Margin (if any), all as determined by the Agent or the Calculation Agent, as applicable.

If on any Interest Determination Date one only or none of the Reference Banks provides the Agent or the Calculation Agent, as applicable, with such offered quotations as provided in the preceding paragraph, the Rate of Interest for the relevant Interest Period shall be the rate per annum which the Agent or the Calculation Agent, as applicable, determines as being the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the rates, as communicated to (and at the request of) the Agent or the Calculation Agent, as applicable, by the Reference Banks or any two or more of them, at which such banks were offered, at approximately the Specified Time on the relevant Interest Determination Date, deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate by leading banks in the Euro-zone inter-bank market (if the Reference Rate is EURIBOR) or the Norwegian inter-bank market (if the Reference Rate is NIBOR) or the Stockholm inter-bank market (if the Reference Rate is STIBOR) plus or minus (as appropriate) the Margin (if any) or, if fewer than two of the Reference Banks provide the Agent or the Calculation Agent, as applicable, with such offered rates, the offered rate for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, or the arithmetic mean (rounded as provided above) of the offered rates for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, at which, at approximately the Specified Time on the relevant Interest Determination Date, any one or more banks (which bank or banks is or are in the opinion of the Issuer suitable for such purpose) informs the Agent or the Calculation Agent, as applicable, it is quoting to leading banks in the Euro-zone inter-bank market (if the Reference Rate is EURIBOR) or the Norwegian inter-bank market (if the Reference Rate is NIBOR) or the Stockholm inter-bank market (if the Reference Rate is STIBOR) plus or minus (as appropriate) the Margin (if any), provided that, if the Rate of Interest cannot be determined in accordance with the foregoing provisions of this paragraph, the Rate of Interest shall be determined as at the last preceding Interest Determination Date (though substituting, where a different Margin is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin relating to the relevant Interest Period, in place of the Margin relating to that last preceding Interest Period).

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**Reference Banks** means, in the case of Condition 3(b)(ii)(B)(1) above, those banks whose offered rates were used to determine such quotation when such quotation last appeared on the Relevant Screen Page and, in the case of Condition 3(b)(ii)(B)(2) above, those banks whose offered quotations last appeared on the Relevant Screen Page when no fewer than three such offered quotations appeared, and in each case, as selected by the Issuer.

**Specified Time** means 11.00 a.m. (Brussels time) if the Reference Rate is EURIBOR, 11.00 a.m. (Stockholm time) if the Reference Rate is STIBOR or 12.00 noon (Oslo time) if the Reference Rate is NIBOR.

(C) *Screen Rate Determination for Floating Rate Notes - Compounded Daily SONIA - Non-Index Determination*

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the manner in which the Rate of Interest is to be determined and “Overnight Rate” to be “Applicable”; (2) “Compounded Daily SONIA” as the Reference Rate; and (3) “Index Determination” to be “Not Applicable”, the Rate of Interest for an Interest Period will, subject to Condition 3(b)(viii) (*Benchmark Discontinuation*) and as provided below, be Compounded Daily SONIA Formula Rate with respect to such Interest Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

As used in these Conditions, **Compounded Daily SONIA Formula Rate** means, with respect to an Interest Period, the rate of return of a daily compound interest investment during the Observation Period corresponding to such Interest Period (with the daily SONIA reference rate as reference rate for the calculation of interest) as calculated by the Agent or the Calculation Agent, as applicable, as at the relevant Interest Determination Date, in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to the fifth decimal place, with 0.000005 being rounded upwards):

where:

**d** is the number of calendar days in:

(1) where “Lag” is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or

(2) where “Observation Shift” is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

**d0** is the number of London Banking Days in:

(1) where “Lag” is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or

(2) where “Observation Shift” is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

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i is a series of whole numbers from one to d0, each representing a London Banking Day in chronological order from, and including, the first London Banking Day in:

(1) where "Lag" is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

London Banking Day means any day on which commercial banks are open for general business (including dealing in foreign exchange and foreign currency deposits) in London;

ni, for any London Banking Day "i", means the number of calendar days from (and including) such London Banking Day "i" up to (but excluding) the following London Banking Day;

Observation Period means, in respect of an Interest Period, the period from (and including) the date falling "p" London Banking Days prior to the first day of such Interest Period to (but excluding) the date falling "p" London Banking Days prior to (1) the Interest Payment Date for such Interest Period or (2) such earlier date, if any, on which the Notes become due and payable;

p means:

(1) where "Lag" is specified as the Observation Method in the applicable Final Terms, the number of London Banking Days specified as the "Lag Period" in the applicable Final Terms (or, if no such number is so specified, five London Banking Days); or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the number of London Banking Days specified as the "Observation Shift Period" in the applicable Final Terms (or, if no such number is so specified, five London Banking Days);

SONIA reference rate means, in respect of any London Banking Day (LBDx), a reference rate equal to the daily Sterling Overnight Index Average (SONIA) rate for LBDx as provided by the administrator of SONIA to authorised distributors and as then published on the Relevant Screen Page (or, if the Relevant Screen Page is unavailable, as otherwise published by such authorised distributors) on the London Banking Day immediately following LBDx; and

SONIAi means the SONIA reference rate for:

(1) where "Lag" is specified as the Observation Method in the applicable Final Terms, the London Banking Day falling "p" London Banking Days prior to the relevant London Banking Day "i"; or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the relevant London Banking Day "i".

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If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(C), in respect of any London Banking Day for which the SONIA reference rate is required to be determined, the Agent or the Calculation Agent, as applicable, determines that the applicable SONIA reference rate is not available on the Relevant Screen Page and has not otherwise been published by the relevant authorised distributors, then (unless the Agent or the Calculation Agent, as applicable, has been notified of any Successor Rate or Alternative Rate (and any related Adjustment Spread and/or Benchmark Amendments) pursuant to Condition 3(b)(viii) (Benchmark Discontinuation), if applicable) the SONIA reference rate in respect of such London Banking Day shall be:

(1) (I) the Bank of England's Bank Rate (the Bank Rate) prevailing at 5.00 p.m. (London time) (or, if earlier, the close of business) on such London Banking Day; plus (II) the mean of the spread of the SONIA reference rate to the Bank Rate over the previous five London Banking Days on which a SONIA reference rate has been published, excluding the highest spread (or, if there is more than one highest spread, one only of those highest spreads) and lowest spread (or, if there is more than one lowest spread, one only of those lowest spreads) to the Bank Rate; or

(2) if the Bank Rate under (1)(I) above is not available at the relevant time, either (I) the SONIA reference rate published on the Relevant Screen Page (or otherwise published by the relevant authorised distributors) for the first preceding London Banking Day on which the SONIA reference rate was published on the Relevant Screen Page (or otherwise published by the relevant authorised distributors) or (II) if this is more recent, the latest rate determined under (1) above,

and, in each case, references to the "SONIA reference rate" in this Condition 3(b)(ii)(C) shall be construed accordingly.

In the event that the Rate of Interest cannot be determined in accordance with the foregoing provisions, the Rate of Interest shall (subject to Condition 3(b)(viii) (Benchmark Discontinuation)) be:

(1) that determined as at the last preceding Interest Determination Date (though substituting, where a different Margin, Maximum Rate of Interest and/or Minimum Rate of Interest is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin, Maximum Rate of Interest and/or Minimum Rate of Interest (as the case may be) relating to the relevant Interest Period, in place of the Margin, Maximum Rate of Interest and/or Minimum Rate of Interest (as applicable) relating to that last preceding Interest Period); or

(2) if there is no such preceding Interest Determination Date, the initial Rate of Interest which would have been applicable to such Notes for the first scheduled Interest Period had the Notes been in issue for a period equal in duration to the first scheduled Interest Period but ending on (and excluding) the Interest Commencement Date (but applying the Margin and, if applicable, any Maximum Rate of Interest and/or Minimum Rate of Interest, applicable to the first scheduled Interest Period).

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If the Notes become due and payable in accordance with Condition 8 (*Events of Default*), the final Rate of Interest shall be calculated for the period from (and including) the previous Interest Payment Date to (but excluding) the date on which the Notes become so due and payable, and such Rate of Interest shall continue to apply to the Notes for so long as interest continues to accrue thereon as provided in Condition 3(c) (*Accrual of Interest*).

# (D) *Screen Rate Determination for Floating Rate Notes - Compounded Daily SONIA - Index Determination*

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the manner in which the Rate of Interest is to be determined and “Overnight Rate” to be “Applicable”; (2) “Compounded Daily SONIA” as the Reference Rate; and (3) “Index Determination” to be “Applicable”, the Rate of Interest for an Interest Period will, subject to Condition 3(b)(viii) (*Benchmark Discontinuation*) and as provided below, be the Compounded Daily SONIA Index Rate with respect to such Interest Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

**Compounded Daily SONIA Index Rate** means, with respect to an Interest Period, the rate of return of a daily compound interest investment as calculated by the Agent or the Calculation Agent, as applicable, on the relevant Interest Determination Date in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to the fifth decimal place, with 0.000005 being rounded upwards):

![exhibit25p56i0]() exhibit25p56i0

where:

**d** is the number of calendar days from (and including) the day in relation to which SONIA Compounded Index$_{Start}$ is determined to (but excluding) the day in relation to which SONIA Compounded Index$_{End}$ is determined;

**London Banking Day** has the meaning set out in Condition 3(b)(ii)(C) above;

**Relevant Number** is the number specified as such in the applicable Final Terms (or, if no such number is specified, five);

**SONIA Compounded Index$_{End}$** means the SONIA Compounded Index value relating to the London Banking Day falling the Relevant Number of London Banking Days prior to (1) the Interest Payment Date for the relevant Interest Period or (2) such earlier date, if any, on which the Notes become due and payable;

**SONIA Compounded Index$_{Start}$** means the SONIA Compounded Index value relating to the London Banking Day falling the Relevant Number of London Banking Days prior to the first day of the relevant Interest Period; and

the **SONIA Compounded Index** means, with respect to any London Banking Day, the value of the SONIA compounded index that is provided by the administrator of the SONIA reference rate to authorised distributors and as then published on the Relevant Screen Page (or, if the Relevant Screen Page is unavailable, as otherwise published by such authorised distributors) in respect of such London Banking Day.

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If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(D), the Agent or the Calculation Agent, as applicable, determines that the relevant SONIA Compounded Index value required to determine SONIA Compounded Index$_{Start}$ or SONIA Compounded Index$_{End}$ is not available on the Relevant Screen Page and has not otherwise been published by the relevant authorised distributors by 5.00 p.m. (London time) (or, if later, by the time falling one hour after the customary or scheduled time for publication thereof in accordance with the then-prevailing operational procedures of the administrator of the SONIA reference rate or of such other information service, as the case may be) on the relevant Interest Determination Date, the Compounded Daily SONIA Index Rate for the applicable Interest Period for which the relevant SONIA Compounded Index value is not available shall be 'Compounded Daily SONIA Formula Rate' determined in accordance with Condition 3(b)(ii)(C) above as if Index Determination had been specified as being Not Applicable in the applicable Final Terms, and for these purposes: (1) the 'Observation Method' shall be deemed to be 'Observation Shift' and (2) the 'Observation Shift Period' shall be deemed to be equal to the Relevant Number of London Banking Days, as if those alternative elections had been made in the applicable Final Terms.

If the Notes become due and payable in accordance with Condition 8 (*Events of Default*), the final Rate of Interest shall be calculated for the period from (and including) the previous Interest Payment Date to (but excluding) the date on which the Notes become so due and payable, and such Rate of Interest shall continue to apply to the Notes for so long as interest continues to accrue thereon as provided in Condition 3(c) (*Accrual of Interest*).

# (E) *Screen Rate Determination for Floating Rate Notes - Compounded Daily SOFR - Non-Index Determination*

Where the applicable Final Terms specifies: (1) 'Screen Rate Determination' as the manner in which the Rate of Interest is to be determined and 'Overnight Rate' to be 'Applicable'; (2) 'Compounded Daily SOFR' as the Reference Rate; and (3) 'Index Determination' to be 'Not Applicable', the Rate of Interest for an Interest Period will, subject to Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) and as provided below, be Compounded Daily SOFR Formula Rate with respect to such Interest Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

**Compounded Daily SOFR Formula Rate** means, with respect to an Interest Period, the rate of return of a daily compound interest investment in U.S. dollars (with the Secured Overnight Financing Rate as the reference rate for the calculation of interest) as calculated by the Agent or the Calculation Agent, as applicable, on the relevant Interest Determination Date in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to the nearest fifth decimal place, with 0.000005 being rounded upwards):

exhibit25p57i0

where:

**d** is the number of calendar days in:

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(1) where "Lookback" or "Lock-out" is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

d0 is the number of U.S. Government Securities Business Days in:

(1) where "Lookback" or "Lock-out" is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

i is a series of whole numbers from one to d0, each representing the relevant U.S. Government Securities Business Day in chronological order from, and including, the first U.S. Government Securities Business Day in:

(1) where "Lookback" or "Lock-out" is specified as the Observation Method in the applicable Final Terms, the relevant Interest Period; or
(2) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the relevant Observation Period;

**Lock-out Period** means the period from (and including) the day following the Interest Determination Date to (but excluding) the corresponding Interest Payment Date;

ni, for any U.S. Government Securities Business Day "i", means the number of calendar days from (and including) such U.S. Government Securities Business Day "i" up to (but excluding) the following U.S. Government Securities Business Day;

**Observation Period** means, in respect of an Interest Period, the period from (and including) the date falling "p" U.S. Government Securities Business Days prior to the first day of such Interest Period to (but excluding) the date falling "p" U.S. Government Securities Business Days prior to (1) the Interest Payment Date for such Interest Period or (2) such earlier date, if any, on which the Notes become due and payable;

p means:

(1) where "Lookback" is specified as the Observation Method in the applicable Final Terms, the number of U.S. Government Securities Business Days specified as the "Lookback Period (p)" in the applicable Final Terms (or, if no such number is so specified, five U.S. Government Securities Business Days); or
(2) where "Lock-out" is specified as the Observation Method in the applicable Final Terms, zero U.S. Government Securities Business Days; or
(3) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, the number of U.S. Government Securities

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Business Days specified as the "Observation Shift Period" in the applicable Final Terms (or, if no such number is so specified, five U.S. Government Securities Business Days);

**Reference Day** means each U.S. Government Securities Business Day in the relevant Interest Period, other than any U.S. Government Securities Business Day in the Lock-out Period;

**SOFR** means, in respect of any U.S. Government Securities Business Day, a rate determined in accordance with the following provisions:

(1) the Secured Overnight Financing Rate published for such U.S. Government Securities Business Day that appears on the SOFR Administrator's Website at or about 3.00 p.m. (New York City time) on the U.S. Government Securities Business Day immediately following such U.S. Government Securities Business Day; and

(2) if the rate specified in paragraph (1) above does not so appear, unless both a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, then the Agent or the Calculation Agent, as applicable, shall use the Secured Overnight Financing Rate published on the SOFR Administrator's Website for the first preceding U.S. Government Securities Business Day on which the Secured Overnight Financing Rate was published on the SOFR Administrator's Website;

**SOFR** means, in respect of any U.S. Government Securities Business Day "i":

(1) where "Lookback" is specified as the Observation Method in the applicable Final Terms, SOFR in respect of the U.S. Government Securities Business Day falling "p" U.S. Government Securities Business Days prior to the relevant U.S. Government Securities Business Day "i"; or

(2) where "Lock-out" is specified as the Observation Method in the applicable Final Terms:

(I) in respect of each U.S. Government Securities Business Day "i" that is a Reference Day, SOFR in respect of the U.S. Government Securities Business Day immediately preceding such Reference Day; or

(II) in respect of each U.S. Government Securities Business Day "i" that is not a Reference Day (being a U.S. Government Securities Business Day in the Lock-out Period), SOFR in respect of the U.S. Government Securities Business Day immediately preceding the last Reference Day of the relevant Interest Period (such last Reference Day coinciding with the Interest Determination Date); or

(3) where "Observation Shift" is specified as the Observation Method in the applicable Final Terms, SOFR in respect of such U.S. Government Securities Business Day "i"; and

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**U.S. Government Securities Business Day** means any day except for a Saturday, a Sunday or a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

Certain other capitalised terms used in the foregoing terms and provisions relating to determination of the Compounded Daily SOFR Formula Rate have the meanings set forth under Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) below.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Compounded Daily SOFR Formula Rate (or any component part thereof), the benchmark replacement provisions set forth in Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) below shall apply for the purposes of all determinations of the Rate of Interest in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (*Events of Default*), the final Rate of Interest shall be calculated for the period from (and including) the previous Interest Payment Date to (but excluding) the date on which the Notes become so due and payable, and such Rate of Interest shall continue to apply to the Notes for so long as interest continues to accrue thereon as provided in Condition 3(c) (*Accrual of Interest*).

# (F) *Screen Rate Determination for Floating Rate Notes - Compounded Daily SOFR - Index Determination*

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the manner in which the Rate of Interest is to be determined and “Overnight Rate” to be “Applicable”; (2) “Compounded Daily SOFR” as the Reference Rate; and (3) “Index Determination” to be “Applicable”, the Rate of Interest for an Interest Period will, subject to Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) and as provided below, be the Compounded Daily SOFR Index Rate with respect to such Interest Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

**Compounded SOFR Index Rate** means, with respect to an Interest Period, the rate of return of a daily compound interest investment as calculated by the Agent or the Calculation Agent, as applicable, on the relevant Interest Determination Date in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to the nearest fifth decimal place, with 0.000005 being rounded upwards):

where:

**d** is the number of calendar days from (and including) the day in relation to which “SOFR Index$_{Start}$” is determined to (but excluding) the day in relation to which “SOFR Index$_{End}$” is determined;

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**Relevant Number** is the number specified as such in the applicable Final Terms (or, if no such number is specified, five);

**SOFR Index$_{End}$** means the SOFR Index value relating to the U.S. Government Securities Business Day falling the Relevant Number of U.S. Government Securities Business Days prior to (1) the Interest Payment Date for the relevant Interest Period or (2) such earlier date, if any, on which the Notes become due and payable;

**SOFR Index$_{Start}$** means the SOFR Index value relating to the U.S. Government Securities Business Day falling the Relevant Number of U.S. Government Securities Business Days prior to the first date of the relevant Interest Period;

the **SOFR Index** means, with respect to any U.S. Government Securities Business Day, prior to a Benchmark Replacement Date, the SOFR Index published for such U.S. Government Securities Business Day as such value appears on the SOFR Administrator's Website at 3:00 p.m. (New York City time) on such U.S. Government Securities Business Day; and

**U.S. Government Securities Business Day** has the meaning set out in Condition 3(b)(ii)(E) above.

Certain other capitalised terms used in the foregoing terms and provisions relating to determination of the Compounded SOFR Index Rate have the meanings set forth under Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) below.

If, where any Rate of Interest is to be calculated pursuant to this Condition 3(b)(ii)(F), the Agent or the Calculation Agent, as applicable, determines that the SOFR Index$_{Start}$ or the SOFR Index$_{End}$ does not appear on the SOFR Administrator's Website by 3.00 p.m. (New York City time) on the relevant Interest Determination Date and a Benchmark Transition Event and its related Benchmark Replacement Date have not occurred with respect to the Compounded SOFR Index Rate (or any component part thereof), the Compounded SOFR Index Rate for the applicable Interest Period for which such SOFR Index value is not available shall be the 'Compounded Daily SOFR Formula Rate' determined in accordance with Condition 3(b)(ii)(E) above as if Index Determination had been specified as being Not Applicable in the applicable Final Terms, and for these purposes: (1) the 'Observation Method' shall be deemed to be 'Observation Shift', and (2) the 'Observation Shift Period' shall be deemed to be equal to the Relevant Number of U.S. Government Securities Business Days, as if those alternative elections had been made in the applicable Final Terms.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Compounded SOFR Index Rate (or any component part thereof), the benchmark replacement provisions set forth in Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) below shall apply for the purposes of all determinations of the Rate of Interest in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (*Events of Default*), the final Rate of Interest shall be calculated for the period from (and including) the previous Interest Payment Date to (but excluding) the date on which

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the Notes become so due and payable, and such Rate of Interest shall continue to apply to the Notes for so long as interest continues to accrue thereon as provided in Condition 3(c) (*Accrual of Interest*).

# (G) *Screen Rate Determination for Floating Rate Notes - Average SOFR*

Where the applicable Final Terms specifies: (1) “Screen Rate Determination” as the manner in which the Rate of Interest is to be determined and “Overnight Rate” to be “Applicable”; (2) “Average SOFR” as the Reference Rate; and (3) “Index Determination” to be “Not Applicable”, the Rate of Interest for an Interest Period will, subject to Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) and as provided below, be the Average SOFR Rate with respect to such Interest Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any).

**Average SOFR Rate** means, with respect to an Interest Period, the arithmetic mean of SOFR in effect during such Interest Period as calculated by the Agent or the Calculation Agent, as applicable, on the relevant Interest Determination Date in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to the nearest fifth decimal place, with 0.000005 being rounded upwards):

where $d_0$, $i$, **SOFR**, **SOFRi**, $n_i$ and $d$ have the meanings set out in Condition 3(b)(ii)(E) above.

Notwithstanding anything to the contrary, if both a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Average SOFR Rate (or any component part thereof), the benchmark replacement provisions set forth in Condition 3(b)(ix) (*Benchmark Discontinuation - SOFR*) below shall apply for the purposes of all determinations of the Rate of Interest in respect of the Notes.

If the Notes become due and payable in accordance with Condition 8 (*Events of Default*), the final Rate of Interest shall be calculated for the period from (and including) the previous Interest Payment Date to (but excluding) the date on which the Notes become so due and payable, and such Rate of Interest shall continue to apply to the Notes for so long as interest continues to accrue thereon as provided in Condition 3(c) (*Accrual of Interest*).

# (iii) *Minimum and/or Maximum Rate of Interest*

If the applicable Final Terms specifies a Minimum Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in respect of such Interest Period determined in accordance with the provisions of paragraph (ii) above is less than such Minimum Rate of Interest, the Rate of Interest for such Interest Period shall be such Minimum Rate of Interest. If the applicable Final Terms specifies a Maximum Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in respect of such Interest Period determined in accordance with the provisions of paragraph (ii) above is greater than such Maximum Rate of Interest, the Rate of Interest for such Interest Period shall be such Maximum Rate of Interest.

# (iv) *Determination of Rate of Interest and Calculation of Interest Amounts*

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The Agent or the Calculation Agent, as applicable, will at or as soon as practicable after each time at which the Rate of Interest is to be determined, determine the Rate of Interest for the relevant Interest Period.

The Agent or the Calculation Agent, as applicable, will calculate the amount of interest (the Interest Amount) payable on the Floating Rate Notes for the relevant Interest Period by applying the Rate of Interest to:

(A) in the case of Floating Rate Notes which are represented by a Global Note, the aggregate outstanding nominal amount of the Notes represented by such Global Note; or
(B) in the case of Floating Rate Notes in definitive form, the Calculation Amount;

and, in each case, multiplying such sum by the applicable Day Count Fraction, and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention. Where the Specified Denomination of a Floating Rate Note in definitive form is a multiple of the Calculation Amount, the Interest Amount payable in respect of such Note shall be the product of the amount (determined in the manner provided above) for the Calculation Amount and the amount by which the Calculation Amount is multiplied to reach the Specified Denomination, without any further rounding.

Day Count Fraction means, in respect of the calculation of an amount of interest in accordance with this Condition 3 (Interest):

(i) if "Actual/Actual (ISDA)" or "Actual/Actual" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 365 (or, if any portion of that Interest Period falls in a leap year, the sum of (I) the actual number of days in that portion of the Interest Period falling in a leap year divided by 366 and (II) the actual number of days in that portion of the Interest Period falling in a non-leap year divided by 365);
(ii) if "Actual/365 (Fixed)" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 365;
(iii) if "Actual/365 (Sterling)" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 365 or, in the case of an Interest Payment Date falling in a leap year, 366;
(iv) if "Actual/360" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 360;
(v) if "30/360", "360/360" or "Bond Basis" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:

DayCount Fraction
extr $$\frac{[360\text{ex}(Y_2 \text{ ex}Y_1)]\text{ex}[B0\text{ex}(M_2 \text{ ex}M_1)]\text{ex}[D_2 \text{ ex}D_1)}{360}$$

where:

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"Y1" is the year, expressed as a number, in which the first day of the Interest Period falls:

"Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

"M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"D1" is the first calendar day, expressed as a number, of the Interest Period, unless such number is 31, in which case D1 will be 30; and

"D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number would be 31 and D1 is greater than 29, in which case D2 will be 30;

(vi) if "30E/360" or "Eurobond Basis" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:

DayCount Fraction ex1 $$\frac{[360 \times (Y_2 \times M_1)] \times [360 \times (M_2 \times M_1)] \times (D_2 \times D_1)}{360}$$

where:

"Y1" is the year, expressed as a number, in which the first day of the Interest Period falls:

"Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

"M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"D1" is the first calendar day, expressed as a number, of the Interest Period, unless such number would be 31, in which case D1 will be 30; and

"D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number would be 31, in which case D2 will be 30; or

(vii) if "30E/360 (ISDA)" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:

DayCount Fraction ex1 $$\frac{[360 \times (Y_2 \times M_1)] \times [360 \times (M_2 \times M_1)] \times (D_2 \times D_1)}{360}$$

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where:

"Y1" is the year, expressed as a number, in which the first day of the Interest Period falls;

"Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

"M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

"D1" is the first calendar day, expressed as a number, of the Interest Period, unless (i) that day is the last day of February or (ii) such number would be 31, in which case D1 will be 30; and

"D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless (i) that day is the last day of February but not the Maturity Date or (ii) such number would be 31 and D2 will be 30.

# (v) Linear Interpolation

Where Linear Interpolation is specified as applicable in respect of an Interest Period in the applicable Final Terms, the Rate of Interest for such Interest Period shall be calculated by the Agent or the Calculation Agent, as applicable, by straight line linear interpolation by reference to two rates based on the relevant Reference Rate (where Screen Rate Determination is specified as applicable in the applicable Final Terms) or the relevant Floating Rate Option (where ISDA Determination is specified as applicable in the applicable Final Terms), one of which shall be determined as if the Designated Maturity were the period of time for which rates are available next shorter than the length of the relevant Interest Period and the other of which shall be determined as if the Designated Maturity were the period of time for which rates are available next longer than the length of the relevant Interest Period provided however that if there is no rate available for a period of time next shorter or, as the case may be, next longer, then the Agent or the Calculation Agent, as applicable, shall determine such rate at such time and by reference to such sources as an independent adviser, appointed by the Issuer and acting in good faith and in a commercially reasonable manner as an expert, determines appropriate.

Designated Maturity means, in relation to Screen Rate Determination, the period of time designated in the Reference Rate.

# (vi) Notification of Rate of Interest and Interest Amounts

(A) Except where "Screen Rate Determination" is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined and "Overnight Rate" is specified in the applicable Final Terms to be "Applicable", the Agent or the Calculation Agent, as applicable, will cause the Rate of Interest and each Interest Amount for each Interest Period and the relevant Interest Payment Date to be notified to the Issuer and any stock exchange on which the relevant Floating Rate Notes are for the time being listed and notice

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thereof to be published in accordance with Condition 12 (*Notices*) as soon as possible after their determination but in no event later than the fourth London Business Day thereafter. Each Interest Amount and Interest Payment Date so notified may subsequently be amended (or appropriate alternative arrangements made by way of adjustment) without prior notice in the event of an extension or shortening of the Interest Period. Any such amendment will be promptly notified to each stock exchange on which the relevant Floating Rate Notes are for the time being listed and to the Noteholders in accordance with Condition 12 (*Notices*). For the purposes of this paragraph, the expression **London Business Day** means a day (other than a Saturday or a Sunday) on which banks and foreign exchange markets are open for general business in London.

(B) Where 'Screen Rate Determination' is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined and 'Overnight Rate' is specified in the applicable Final Terms to be 'Applicable', the Agent or the Calculation Agent, as applicable, will cause the Rate of Interest and each Interest Amount for each Interest Period and the relevant Interest Payment Date to be notified to the Issuer and any stock exchange on which the relevant Floating Rate Notes are for the time being listed and notice thereof to be published in accordance with Condition 12 (*Notices*) as soon as possible after their determination but in no event later than (1) where the applicable Final Terms specifies the Reference Rate as 'Compounded Daily SONIA', the second London Banking Day thereafter or (2) where the applicable Final Terms specifies the Reference Rate as 'Compounded Daily SOFR' or 'Average SOFR', the second U.S. Government Securities Business Day thereafter. Each Rate of Interest, Interest Amount and Interest Payment Date so notified may subsequently be amended (or appropriate alternative arrangements made by way of adjustment) without prior notice in the event of an extension or shortening of the relevant Interest Period. Any such amendment or alternative arrangements will promptly be notified to each stock exchange on which the relevant Floating Rate Notes are for the time being listed and to the Noteholders in accordance with Condition 12 (*Notices*).

# (vii) *Certificates to be Final*

All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of this Condition 3(b) (*Interest on Floating Rate Notes*) by the Agent, an Independent Adviser (as defined below) or the Calculation Agent, as applicable, shall (in the absence of wilful default, bad faith or manifest error) be binding on the Issuer, the Issuer's designee (as defined below), the Guarantor (in the case of Notes having the benefit of the Guarantee), the Agent, the Calculation Agent, the other Paying Agents and all Noteholders and Couponholders and (in the absence as aforesaid) no liability to the Issuer, the Issuer's designee, the Guarantor (in the case of Notes having the benefit of the Guarantee), the Noteholders or the Couponholders shall attach to the Agent, an Independent Adviser or the Calculation Agent, as applicable, in connection with the exercise or non-exercise by it of its powers, duties and discretions pursuant to such provisions.

# (viii) *Benchmark Discontinuation*

Notwithstanding the foregoing provisions of this Condition 3(b) (*Interest on Floating Rate Notes*), if:

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(1) the Reference Rate specified in the applicable Final Terms is neither Compounded Daily SOFR nor Average SOFR; and
(2) the Issuer determines that a Benchmark Event (as defined below) has occurred in relation to a Reference Rate at any time when any Rate of Interest (or the relevant component thereof) remains to be determined by reference to such Reference Rate,

then the following provisions shall apply:

(A) the Issuer shall use reasonable endeavours to appoint, as soon as reasonably practicable, an Independent Adviser (as defined below) to determine (without any requirement for any consent or approval of the Noteholders or the Couponholders), no later than 10 days prior to the relevant Interest Determination Date relating to the next succeeding Interest Period (the IA Determination Cut-off Date), a Successor Rate (as defined below) or, alternatively, if there is no Successor Rate, an Alternative Reference Rate (as defined below), and in either case an Adjustment Spread (as defined below), for the purposes of determining the Rate of Interest (or the relevant component part thereof) applicable to the Notes;
(B) if a Successor Rate or, failing which, an Alternative Reference Rate (as applicable) is determined in accordance with paragraph (A) above, such Successor Rate or, failing which, such Alternative Reference Rate (as applicable) shall be the Reference Rate for each of the future Interest Periods for which the Rate of Interest (or the relevant component thereof) was otherwise to be determined by reference to the relevant Reference Rate (subject to the subsequent operation of, and to adjustment as provided in, this Condition 3(b)(viii) (Benchmark Discontinuation));
(C) if the Independent Adviser determines a Successor Rate or, failing which, an Alternative Reference Rate (as applicable) in accordance with the above provisions, the Independent Adviser, following consultation with the Issuer, may also specify changes to these Conditions, including but not limited to the Day Count Fraction, Relevant Screen Page, Specified Time, Business Day Convention, Business Day, Interest Determination Date, Reference Banks, Additional Business Centre and/or the definition of Reference Rate applicable to the Notes, and/or the method for determining the fallback to the Reference Rate in relation to the Notes, in each case in order to follow market practice in relation to the Successor Rate or the Alternative Reference Rate (as applicable). If a Successor Rate or Alternative Rate is determined in accordance with the foregoing provisions, the Independent Adviser (in consultation with the Issuer) will determine the Adjustment Spread to be applied to such Successor Rate or Alternative Rate (as the case may be) for each subsequent determination of a relevant Rate of Interest (or a relevant component part thereof) by reference to such Successor Rate or Alternative Rate (as applicable). For the avoidance of doubt, the Issuer shall be obliged, and the Issuer shall direct the Agent (if applicable) who (upon such direction) shall be obliged, in each case without the requirement for any consent or approval of the Noteholders or the Couponholders, to use its reasonable endeavours to effect such amendments to the Agency Agreement and these Conditions, as applicable, as may be specified by the Independent Adviser following consultation with the Issuer in order to give effect to this Condition 3(b)(viii)(C) (such amendments, the Benchmark Amendments). For the

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avoidance of doubt, no Noteholder or Couponholder consent shall be required in connection with effecting the Benchmark Amendments or such other changes, including for the execution of any documents, amendments or other steps by the Issuer, the Guarantor (in the case of Notes having the benefit of the Guarantee) or the Agent (if required). Notwithstanding the foregoing provisions of this Condition, the Agent shall not be required to agree to the amendments and changes referred to above that in the Agent's opinion, acting reasonably and in good faith, imposes more onerous obligations upon it or exposes it to additional duties, responsibilities or liability, or reduces or amends the protective provisions afforded to the Agent in the Agency Agreement.

(D) the Issuer shall promptly, following the determination of any Successor Rate or Alternative Reference Rate (as applicable), the applicable Adjustment Spread and the specific terms of any Benchmark Amendments give notice thereof to the Agent and, in accordance with Condition 12 (Notices), the Noteholders and the Couponholders (which notice shall be irrevocable);

(E) if a Successor Rate or an Alternative Reference Rate or, in either case, the applicable Adjustment Spread, is not determined by an Independent Adviser in accordance with the above provisions prior to the relevant IA Determination Cut-off Date, then the Rate of Interest for the next Interest Period shall be determined by reference to the original Reference Rate and the fallback provisions set out in Condition 3(b)(ii)(B), (C) or (D), as applicable; for the avoidance of doubt, in such circumstances the Rate of Interest for any subsequent Interest Periods shall be subject to the subsequent operation of, and to adjustment as provided in, this Condition 3(b)(viii) (Benchmark Discontinuation); and

(F) an Independent Adviser appointed pursuant to this Condition 3(b)(viii) (Benchmark Discontinuation) shall act in good faith and in a commercially reasonable manner and in accordance with the provisions of this Condition 3(b)(viii) (Benchmark Discontinuation) in respect of any determination made by it pursuant to this Condition 3(b)(viii) (Benchmark Discontinuation).

The occurrence of a Benchmark Event shall be determined by the Issuer and promptly notified by the Issuer to the Agent, the Calculation Agent and the Paying Agents. For the avoidance of doubt, none of the Agent, the Calculation Agent or the Paying Agents shall have any responsibility for making such determination.

For the purposes of this Condition 3(b)(viii) (Benchmark Discontinuation):

**Adjustment Spread** means the spread (which may be positive, negative or zero), quantum or formula or methodology for calculating a spread, which the Independent Adviser (in consultation with the Issuer) determines is required to be applied to the Successor Rate or the Alternative Reference Rate (as applicable) and is the spread, quantum, formula or methodology which:

(1) in the case of a Successor Rate, is formally recommended in relation to the replacement of the Reference Rate with the Successor Rate by any Relevant Nominating Body (as defined below); or

(2) in the case of a Successor Rate for which no such recommendation as referred to in (1) above has been made, or in the case of an Alternative Reference Rate,

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the Independent Adviser (in consultation with the Issuer) determines is recognised or acknowledged as being in customary market usage in international debt capital markets transactions which reference the Reference Rate, where such rate has been replaced by the Successor Rate or the Alternative Reference Rate (as applicable); or

(3) if the Independent Adviser determines that neither (1) nor (2) above applies, the Independent Adviser (in consultation with the Issuer) in its discretion determines (acting in good faith and in a commercially reasonable manner) to be appropriate;

**Alternative Reference Rate** means the rate that the Independent Adviser (in consultation with the Issuer) determines (acting in good faith and in a commercially reasonable manner) has replaced the relevant Reference Rate in customary market usage in the international debt capital markets for the purposes of determining floating rates of interest (or the relevant component thereof) in respect of bonds denominated in the Specified Currency and with an interest period of a comparable duration to the relevant Interest Period, or, if the Independent Adviser (in consultation with the Issuer) determines that there is no such rate, such other rate as the Independent Adviser (in consultation with the Issuer) determines in its sole discretion is most comparable to the relevant Reference Rate;

**Benchmark Event** means, with respect to a Reference Rate:

1. (1) the Reference Rate (A) ceasing to be published for a period of at least five consecutive Business Days or (B) ceasing to exist or be administered; or
2. (2) the later of (A) the making of a public statement by the administrator of such Reference Rate that it will, on or before a specified date, cease publishing such Reference Rate permanently or indefinitely (in circumstances where no successor administrator has been appointed that will continue publication of such Reference Rate) and (B) the date falling six months prior to the specified date referred to in (2)(A); or
3. (3) the making of a public statement by the supervisor of the administrator of such Reference Rate that such Reference Rate has been permanently or indefinitely discontinued; or
4. (4) the later of (A) the making of a public statement by the supervisor of the administrator of such Reference Rate that such Reference Rate will, on or before a specified date, be permanently or indefinitely discontinued and (B) the date falling six months prior to the specified date referred to in (4)(A); or
5. (5) the later of (A) the making of a public statement by the supervisor of the administrator of such Reference Rate that means such Reference Rate will be prohibited from being used or that its use will be subject to restrictions or adverse consequences, in each case on or before a specified date and (B) the date falling six months prior to the specified date referred to in (5)(A); or
6. (6) a public statement by the supervisor of the administrator of such Reference Rate that, in the view of such supervisor, such Reference Rate is no longer representative of its underlying market; or

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(7) the later of (A) a public statement by the supervisor of the administrator of such Reference Rate that, in the view of such supervisor, such Reference Rate will, as of a specified date, no longer be representative of its underlying market and (B) the date falling six months prior to the specified date referred to in (7)(A); or

(8) it has, or will prior to the next Interest Determination Date become unlawful for the Issuer, the Agent, the Calculation Agent, any other party specified in the applicable Final Terms as being responsible for calculating the Rate of Interest or any Paying Agent to calculate any payments due to be made to any Noteholder or Couponholder using such Reference Rate;

**Independent Adviser** means an independent financial institution of international repute or other independent financial adviser experienced in the international debt capital markets, in each case appointed by the Issuer at its own expense. For the avoidance of doubt, neither the Agent nor the Calculation Agent shall act as the Independent Adviser unless it accepts such appointment in writing;

**Relevant Nominating Body** means, in respect of a Reference Rate:

(1) the central bank for the currency to which the Reference Rate relates, or any central bank or other supervisory authority which is responsible for supervising the administrator of the Reference Rate; or

(2) any working group or committee sponsored by, chaired or co-chaired by or constituted at the request of (a) the central bank for the currency to which the Reference Rate relates, (b) any central bank or other supervisory authority which is responsible for supervising the administrator of the Reference Rate, (c) a group of the aforementioned central banks or other supervisory authorities, or (d) the Financial Stability Board or any part thereof; and

**Successor Rate** means the rate that the Independent Adviser (in consultation with the Issuer) determines (acting in good faith and in a commercially reasonable manner) is a successor to or replacement of the Reference Rate which is formally recommended by any Relevant Nominating Body.

(ix) *Benchmark Discontinuation - SOFR*

Notwithstanding the foregoing provisions of this Condition 3(b) (*Interest on Floating Rate Notes*), if:

(1) the Reference Rate specified in the applicable Final Terms is either Compounded Daily SOFR or Average SOFR; and

(2) any Rate of Interest (or any component part thereof) remains to be determined by reference to the Benchmark,

then the following provisions shall apply:

(A) *Benchmark Replacement*

If the Issuer or its designee determines prior to the Reference Time on the relevant Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the then-current Benchmark, the Benchmark Replacement will replace the then-current Benchmark for

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all purposes relating to the Notes in respect of all determinations on such date and all determinations on all subsequent dates (subject to any subsequent application of this Condition 3(b)(ix) with respect to such Benchmark Replacement).

In the event that the Issuer or its designee is unable to, or does not, determine a Benchmark Replacement, or a Benchmark Replacement is not implemented in accordance with this Condition 3(b)(ix), prior to 5:00 p.m. (New York City time) on the relevant Interest Determination Date, the Rate of Interest for the relevant Interest Period shall be:

(1) that determined as at the last preceding Interest Determination Date (though substituting, where a different Margin, Maximum Rate of Interest and/or Minimum Rate of Interest is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin, Maximum Rate of Interest and/or Minimum Rate of Interest (as the case may be) relating to the relevant Interest Period, in place of the Margin, Maximum Rate of Interest and/or Minimum Rate of Interest (as applicable) relating to that last preceding Interest Period); or

(2) if there is no such preceding Interest Determination Date, the initial Rate of Interest which would have been applicable to such Series of Notes for the first scheduled Interest Period had the Notes been in issue for a period equal in duration to the first scheduled Interest Period but ending on (and excluding) the Interest Commencement Date (and applying the Margin and, if applicable, any Maximum Rate of Interest and/or Minimum Rate of Interest, applicable to the first scheduled Interest Period).

**(B) Benchmark Replacement Conforming Changes**

In connection with the implementation of a Benchmark Replacement, the Issuer or its designee will have the right to make Benchmark Replacement Conforming Changes from time to time.

The Issuer shall be obliged, and the Issuer shall direct the Agent (if applicable) who (upon such direction) shall be obliged, in each case without the requirement for any consent or approval of the Noteholders or the Couponholders, to use its reasonable endeavours to effect any Benchmark Replacement Conforming Changes (including, *inter alia*, by the execution of a supplemental Agency Agreement). For the avoidance of doubt, no Noteholder or Couponholder consent shall be required in connection with effecting the Benchmark Replacement Conforming Changes or such other changes, including for the execution of any documents, amendments or other steps by the Issuer, the Guarantor (in the case of Notes having the benefit of the Guarantee) or the Agent (if required).

Notwithstanding the foregoing provisions of this Condition, the Agent shall not be required to agree to the amendments and changes referred to above that in the Agent's opinion, acting reasonably and in good faith, imposes more onerous obligations upon it or exposes it to additional duties, responsibilities or liability, or reduces or amends the protective provisions afforded to the Agent in the Agency Agreement.

**(C) Decisions and Determinations**

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Any determination, decision or election that may be made by the Issuer or its designee pursuant to this Condition 3(b)(ix), including (without limitation) any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error, may be made in the Issuer's or its designee's sole discretion (as applicable), and, notwithstanding anything to the contrary in these Conditions, shall become effective without any requirement for the consent or approval of Noteholders, Couponholders or any other party. Neither the Agent nor the Calculation Agent (if applicable) shall have any responsibility to make any such determinations or exercise discretion with respect to the foregoing.

In connection with any Benchmark Replacement Conforming Changes in accordance with this Condition 3(b)(ix), if and for so long as the Notes are admitted to trading and listed on the official list of a stock exchange, the Issuer shall comply with the rules of that stock exchange.

The Agent and the Calculation Agent (if applicable) shall be entitled to conclusively rely on any determination made by the Issuer or its designee and, in the absence of fraud, negligence or wilful default, will have no liability for actions taken at the direction of the Issuer or its designee.

(D) Notice and Certification

Any Benchmark Replacement Conforming Changes determined under this Condition 3(b)(ix) shall be notified promptly by the Issuer to the Agent, the Calculation Agent (if applicable) and, in accordance with Condition 12 (Notices), the Noteholders. Such notice shall be irrevocable and shall specify the effective date of such Benchmark Replacement Conforming Changes.

(E) Definitions

In this Condition 3(b)(ix):

**Benchmark** means, initially, SOFR (provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to SOFR (or the published daily SOFR used in the calculation thereof) or any Benchmark which has replaced it in accordance with this Condition 3(b)(ix), then the term "**Benchmark**" means the applicable Benchmark Replacement);

**Benchmark Replacement** means the first alternative set forth in the order below that can be determined by the Issuer or its designee as of the Benchmark Replacement Date:

(1) the sum of: (I) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark and (II) the Benchmark Replacement Adjustment;

(2) the sum of: (I) the ISDA Fallback Rate and (II) the Benchmark Replacement Adjustment; or

(3) the sum of: (I) the alternate rate of interest that has been selected by the Issuer or its designee as the replacement for the then-current Benchmark

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giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (II) the Benchmark Replacement Adjustment;

**Benchmark Replacement Adjustment** means the first alternative set forth in the order below that can be determined by the Issuer or its designee as of the Benchmark Replacement Date:

(1) the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

(2) if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; or

(3) the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Issuer or its designee giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time;

**Benchmark Replacement Conforming Changes** means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of Interest Period, timing and frequency of determining rates and making payments of interest, rounding amounts or tenors, and other administrative matters) that the Issuer or its designee decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Issuer or its designee decides that adoption of any portion of such market practice is not administratively feasible or if the Issuer or its designee determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Issuer or its designee determines is reasonably necessary);

**Benchmark Replacement Date** means the earliest to occur of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

(1) in the case of paragraph (1) or (2) of the definition of "Benchmark Transition Event", the later of (1) the date of the public statement or publication of information referenced therein and (2) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark (or such component); or

(2) in the case of paragraph (3) of the definition of "Benchmark Transition Event", the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time on the relevant Interest Determination Date, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination;

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**Benchmark Transition Event** means the occurrence of one or more of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

(1) a public statement or publication of information by or on behalf of the administrator of the Benchmark (or such component) announcing that such administrator has ceased or will cease to provide the Benchmark (or such component), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such component);

(2) a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark (or such component), the central bank for the currency of the Benchmark (or such component), an insolvency official with jurisdiction over the administrator for the Benchmark (or such component), a resolution authority with jurisdiction over the administrator for the Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark (or such component), which states that the administrator of the Benchmark (or such component) has ceased or will cease to provide the Benchmark (or such component) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such component); or

(3) a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative;

**designee** means an affiliate or any other agent of the Issuer;

**ISDA Definitions** means the 2006 ISDA Definitions published by ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time;

**ISDA Fallback Adjustment** means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark;

**ISDA Fallback Rate** means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment;

**Reference Time** with respect to any determination of the Benchmark means (1) if the Benchmark is SOFR, 3:00 p.m. (New York City time) or such other time as is reasonably agreed between the Issuer or its designee and the Agent or the Calculation Agent, as applicable and (2) if the Benchmark is not SOFR, the time determined by the Issuer or its designee in accordance with the Benchmark Replacement Conforming Changes;

**Relevant Governmental Body** means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened

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by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto;

**SOFR** with respect to any day means the Secured Overnight Financing Rate published for such day by the SOFR Administrator on the SOFR Administrator's Website;

**SOFR Administrator** means the Federal Reserve Bank of New York (or a successor administrator of SOFR);

**SOFR Administrator's Website** means the website of the Federal Reserve Bank of New York, or any successor source; and

**Unadjusted Benchmark Replacement** means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

(c) *Accrual of Interest*

Each Note (or in the case of the redemption of part only of a Note, that part only of such Note) will cease to bear interest (if any) from the date for its redemption unless payment of principal is improperly withheld or refused. In such event, interest will continue to accrue until whichever is the earlier of:

- (i) the date on which all amounts due in respect of such Note have been paid; and
- (ii) five days after the date on which the full amount of the moneys payable in respect of such Note has been received by the Agent and notice to that effect has been given to the Noteholders in accordance with Condition 12 (*Notices*).

**4. Payments**

(a) *Method of Payment*

Subject as provided below:

- (i) payments in a Specified Currency other than euro will be made by transfer to an account in the relevant Specified Currency maintained by the payee with, or at the option of the payee by a cheque in such Specified Currency drawn on, a bank in the principal financial centre of the country of such Specified Currency (which, if the Specified Currency is New Zealand dollars, shall be Auckland); and
- (ii) payments in euro will be made by credit or transfer to a euro account (or any other account to which euro may be credited or transferred) specified by the payee or at the option of the payee, by a euro cheque.

Payments will be subject in all cases to any fiscal or other laws and regulations applicable thereto in the place of payment, but without prejudice to the provisions of Condition 6 (*Taxation*).

(b) *Presentation of definitive Notes and Coupons*

Payments of principal in respect of definitive Notes will (subject as provided below) be made in the manner provided in paragraph (a) above only against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of definitive Notes, and payments

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of interest in respect of definitive Notes will (subject as provided below) be made as aforesaid only against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of Coupons, in each case at the specified office of any Paying Agent outside the United States (which expression, as used herein, means the United States of America (including the States and the District of Columbia and its possessions)).

Fixed Rate Notes in definitive form should be presented for payment together with all unmatured Coupons appertaining thereto (which expression shall for this purpose include Coupons failing to be issued on exchange of matured Talons), failing which the amount of any missing unmatured Coupon (or, in the case of payment not being made in full, the same proportion of the amount of such missing unmatured Coupon as the sum so paid bears to the sum due) will be deducted from the sum due for payment. Each amount of principal so deducted will be paid in the manner mentioned above against surrender of the relative missing Coupon at any time before the expiry of 10 years after the Relevant Date (as defined in Condition 6 (*Taxation*)) in respect of such principal (whether or not such Coupon would otherwise have become void under Condition 7 (*Prescription*)) or, if later, five years from the date on which such Coupon would otherwise have become due, but in no event thereafter.

Upon any Fixed Rate Note in definitive form becoming due and repayable prior to its Maturity Date, all unmatured Talons (if any) appertaining thereto will become void and no further Coupons will be issued in respect thereof.

Upon the date on which any Floating Rate Note in definitive form becomes due and repayable, unmatured Coupons and Talons (if any) relating thereto (whether or not attached) shall become void and no payment or, as the case may be, exchange for further Coupons shall be made in respect thereof.

If the due date for redemption of any definitive Note is not an Interest Payment Date, interest (if any) accrued in respect of such Note from (and including) the preceding Interest Payment Date or, as the case may be, the Interest Commencement Date shall be payable only against surrender of the relevant definitive Note.

# (c) *Payments in respect of global Notes*

Payments of principal and interest (if any) in respect of Notes represented by any global Note will (subject as provided below) be made in the manner specified above in relation to definitive Notes or otherwise in the manner specified in the relevant global Note, where applicable against presentation or surrender, as the case may be, of such global Note at the specified office of any Paying Agent outside the United States.

A record of each payment made against presentation or surrender of such global Note, distinguishing between any payment of principal and any payment of interest, will be made on such global Note either by the Paying Agent to which it was presented or in the records of Euroclear and Clearstream, Luxembourg, as applicable.

# (d) *General provisions applicable to payments*

The holder of a global Note shall be the only person entitled to receive payments in respect of Notes represented by such global Note and the Issuer or, as the case may be, the Guarantor will be discharged by payment to, or to the order of, the holder of such global Note in respect of each amount so paid. Each of the persons shown in the records of Euroclear or Clearstream, Luxembourg as the beneficial holder of a particular nominal amount of Notes represented by such global Note must look solely to Euroclear or

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Clearstream, Luxembourg, as the case may be, for their share of each payment so made by the Issuer or, as the case may be, the Guarantor to, or to the order of, the holder of such global Note.

Notwithstanding the foregoing provisions of this Condition, if any amount of principal and/or interest in respect of Notes is payable in U.S. dollars, such U.S. dollar payments of principal and/or interest in respect of such Notes will be made at the specified office of a Paying Agent in the United States if:

(i) the Issuer has appointed Paying Agents with specified offices outside the United States with the reasonable expectation that such Paying Agents would be able to make payment in U.S. dollars at such specified offices outside the United States of the full amount of principal and interest on the Notes in the manner provided above when due;

(ii) payment of the full amount of such principal and interest at all such specified offices outside the United States is illegal or effectively precluded by exchange controls or other similar restrictions on the full payment or receipt of principal and interest in U.S. dollars; and

(iii) such payment is then permitted under United States law without involving, in the opinion of the Issuer and the Guarantor (in the case of Notes having the benefit of the Guarantee), adverse tax consequences to the Issuer and the Guarantor (in the case of Notes having the benefit of the Guarantee).

(e) Payment Day

If the date for payment of any amount in respect of any Note or Coupon is not a Payment Day, the holder thereof shall not be entitled to payment until the next following Payment Day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay. For these purposes, Payment Day means any day which (subject to Condition 7 (Prescription)) is:

(i) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in:

(a) in the case of Notes in definitive form only, the relevant place of presentation;

(b) each Additional Financial Centre (other than TARGET2 System) specified in the applicable Final Terms;

(ii) if TARGET2 System is specified as an Additional Financial Centre in the applicable Final Terms, a day on which the TARGET2 System is open; and

(iii) either (1) in relation to any sum payable in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency (which if the Specified Currency is New Zealand dollars shall be Auckland) or (2) in relation to any sum payable in euro, a day on which the TARGET2 System is open.

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(f) Interpretation of Principal and Interest

Any reference in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as applicable:

(i) any additional amounts which may be payable with respect to principal under Condition 6 (Taxation);

(ii) the Final Redemption Amount of the Notes;

(iii) the Early Redemption Amount of the Notes;

(iv) the Optional Redemption Amount(s) (if any) of the Notes;

(v) the Make-Whole Redemption Amount(s) (if any) of the Notes;

(vi) the Residual Call Early Redemption Amount (if any) of the Notes; and

(vii) any premium and any other amounts (other than interest) which may be payable by the Issuer under or in respect of the Notes.

Any reference in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any additional amounts which may be payable with respect to interest under Condition 6 (Taxation).

5. Redemption and Purchase

(a) At Maturity

Unless previously redeemed or purchased and cancelled as specified below, each Note will be redeemed by the Issuer at its Final Redemption Amount specified in, or determined in the manner specified in, the applicable Final Terms in the relevant Specified Currency on the Maturity Date.

(b) Redemption for Tax Reasons

The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time (if this Note is not a Floating Rate Note) or on any Interest Payment Date (if this Note is a Floating Rate Note), on giving not less than 30 nor more than 60 days' notice to the Noteholders (which notice shall be irrevocable), if:

(i) on the occasion of the next payment due under the Notes, the Issuer has or will become obliged to pay additional amounts as provided or referred to in Condition 6 (Taxation) or (in the case of Notes having the benefit of the Guarantee) the Guarantor would be unable for reasons outside its control to procure payment by the Issuer and in making payment itself would be required to pay such additional amounts, in each case as a result of any change in, or amendment to, the laws or regulations of the Kingdom of Norway or any political subdivision or any authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the Issue Date of the first Tranche of the Notes; and

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(ii) such obligation cannot be avoided by the Issuer or, as the case may be, the Guarantor (in the case of Notes having the benefit of the Guarantee) taking reasonable measures available to it,

provided that no such notice of redemption shall be given earlier than 90 days (or, in the case of Floating Rate Notes, a number of days which is equal to the aggregate of the number of days falling within the then current interest period applicable to the Floating Rate Notes plus 60 days) prior to the earliest date on which the Issuer or, as the case may be, the Guarantor (in the case of Notes having the benefit of the Guarantee) would be obliged to pay such additional amounts were a payment in respect of the Notes then due.

Prior to the publication of any notice of redemption pursuant to this Condition 5(b) (Redemption for Tax Reasons), the Issuer shall deliver to the Agent a certificate signed by one director of the Issuer or, as the case may be, one director of the Guarantor (in the case of Notes having the benefit of the Guarantee) stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion of independent legal advisers of recognised standing to the effect that the Issuer or, as the case may be, the Guarantor (in the case of Notes having the benefit of the Guarantee) has or will become obliged to pay such additional amounts as a result of such change or amendment.

Notes redeemed pursuant to this Condition 5(b) (Redemption for Tax Reasons) will be redeemed at their Early Redemption Amount referred to in paragraph (g) below together (if appropriate) with interest accrued to (but excluding) the date of redemption.

(c) Redemption at the Option of the Issuer (Issuer Call)

If Issuer Call is specified as being applicable in the applicable Final Terms, the Issuer shall, having given:

(i) not less than 15 nor more than 30 days' notice to the Noteholders in accordance with Condition 12 (Notices); and

(ii) not less than 15 days before the giving of the notice referred to in (i), notice to the Agent;

(which notices shall be irrevocable), redeem all or, if so specified in the applicable Final Terms, some only of the Notes then outstanding on any Optional Redemption Date and at the Optional Redemption Amount(s) specified in, or determined in the manner specified in, the applicable Final Terms together, if appropriate, with interest accrued to (but excluding) the relevant Optional Redemption Date. Any such redemption must be of a nominal amount not less than the Minimum Redemption Amount and not more than a Higher Redemption Amount in each case as may be specified in the applicable Final Terms. In the case of a partial redemption of Notes, the Notes to be redeemed (Redeemed Notes) will be selected individually by lot, in the case of Redeemed Notes represented by definitive Notes, and in accordance with the rules of Euroclear and/or Clearstream, Luxembourg, (to be reflected in the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion) in the case of Redeemed Notes represented by a global Note, not more than 30 days prior to the date fixed for redemption (such date of selection being hereinafter called the Selection Date). In the case of Redeemed Notes represented by definitive Notes, a list of the serial numbers of such Redeemed Notes will be published in accordance with Condition 12 (Notices) not less than 15 days prior to the date fixed for redemption. No exchange of the relevant global Note will be permitted during the period from (and including) the Selection Date to (and including) the date fixed for

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redemption pursuant to this paragraph (c) and notice to that effect shall be given by the Issuer to the Noteholders in accordance with Condition 12 (*Notices*) at least 15 days prior to the Selection Date.

# (d) *Make-Whole Redemption*

If Make-Whole Redemption is specified as being applicable in the applicable Final Terms, the Issuer may, having given not less than 15 nor more than 60 days' notice (or such other notice period as may be specified in the applicable Final Terms) to the Noteholders in accordance with Condition 12 (*Notices*) (which notice shall be irrevocable and shall specify the date fixed for redemption (the **Make-Whole Redemption Date**)), redeem all or (if redemption in part is specified as being applicable in the applicable Final Terms) some only of the Notes then outstanding on any Make-Whole Redemption Date and at the Make-Whole Redemption Amount together, if appropriate, with interest accrued to (but excluding) the relevant Make-Whole Redemption Date. If redemption in part is specified as being applicable in the applicable Final Terms, any such redemption must be of a nominal amount not less than the Minimum Redemption Amount and not more than the Maximum Redemption Amount in each case as may be specified in the applicable Final Terms.

In the case of a partial redemption of Notes, the Redeemed Notes will be selected individually by lot, in the case of Redeemed Notes represented by definitive Notes, and in accordance with the rules of Euroclear and/or Clearstream, Luxembourg (to be reflected in the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion), in the case of Redeemed Notes represented by a Global Note, on a Selection Date not more than 30 days prior to the Make-Whole Redemption Date. In the case of Redeemed Notes represented by definitive Notes, a list of the serial numbers of such Redeemed Notes will be published in accordance with Condition 12 (*Notices*) not less than 15 days prior to the Make-Whole Redemption Date. No exchange of the relevant Global Note will be permitted during the period from (and including) the Selection Date to (and including) the Make-Whole Redemption Date pursuant to this paragraph (d) and notice to that effect shall be given by the Issuer to the Noteholders in accordance with Condition 12 (*Notices*) at least 15 days prior to the Selection Date.

In this Condition 5(d) (*Make-Whole Redemption*), **Make-Whole Redemption Amount** means (A) the outstanding principal amount of the relevant Note or (B) if higher, the sum, as determined by the Make-Whole Calculation Agent, of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed (not including any portion of such payments of interest accrued to the date of redemption) discounted to the Make-Whole Redemption Date on an annual basis at the Reference Rate plus the Make-Whole Redemption Margin specified in the applicable Final Terms, where:

**CA Selected Bond** means a government security or securities (which, if the Specified Currency is euro, will be a German Bundesobligationen) selected by the Make-Whole Calculation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilised, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes;

**Make-Whole Calculation Agent** means an independent investment, merchant or commercial bank or financial institution selected by the Issuer for the purposes of calculating the Make-Whole Redemption Amount, and notified to the Noteholders in accordance with Condition 12 (*Notices*);

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**Reference Bond** means (A) if CA Selected Bond is specified in the applicable Final Terms, the relevant CA Selected Bond or (B) if CA Selected Bond is not specified in the applicable Final Terms, the security specified in the applicable Final Terms, provided that if the Make-Whole Calculation Agent advises the Issuer that, for reasons of illiquidity or otherwise, the relevant security specified is not appropriate for such purpose, such other central bank or government security as the Make-Whole Calculation Agent may, with the advice of Reference Market Makers, determine to be appropriate;

**Reference Bond Price** means (i) the average of three Reference Market Maker Quotations for the relevant Make-Whole Redemption Date, after excluding the highest and lowest Reference Market Maker Quotations, (ii) if the Make-Whole Calculation Agent obtains fewer than three, but more than one, such Reference Market Maker Quotations, the average of all such quotations, or (iii) if only one such Reference Market Maker Quotation is obtained, the amount of the Reference Market Maker Quotation so obtained;

**Reference Market Maker Quotations** means, with respect to each Reference Market Maker and any Make-Whole Redemption Date, the average, as determined by the Make-Whole Calculation Agent, of the bid and asked prices for the Reference Bond (expressed in each case as a percentage of its principal amount) quoted in writing to the Make-Whole Calculation Agent at the Quotation Time specified in the applicable Final Terms on the Reference Rate Determination Day specified in the applicable Final Terms;

**Reference Market Makers** means three brokers or market makers of securities such as the Reference Bond selected by the Make-Whole Calculation Agent or such other three persons operating in the market for securities such as the Reference Bond as are selected by the Make-Whole Calculation Agent in consultation with the Issuer; and

**Reference Rate** means, with respect to any Make-Whole Redemption Date, the rate per annum equal to the equivalent yield to maturity of the Reference Bond, calculated using a price for the Reference Bond (expressed as a percentage of its principal amount) equal to the Reference Bond Price for such Make-Whole Redemption Date. The Reference Rate will be calculated on the Reference Rate Determination Day specified in the applicable Final Terms.

# (e) *Issuer Residual Call*

If Issuer Residual Call is specified as being applicable in the applicable Final Terms and, at any time, the outstanding aggregate nominal amount of the Notes is equal to or less than 25 per cent. (or such other percentage as may be specified in the applicable Final Terms as being the Residual Call Threshold) of the aggregate nominal amount of the Series issued (other than as a result of a partial redemption of the Notes pursuant to Condition 5(c) (*Redemption at the Option of the Issuer (Issuer Call)*)) or Condition 5(d) (*Make-Whole Redemption*)), the Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time (if this Note is not a Floating Rate Note) or on any Interest Payment Date (if this Note is a Floating Rate Note), on giving not less than 15 and not more than 60 days' notice (or such other notice period as may be specified in the applicable Final Terms) to the Noteholders in accordance with Condition 12 (*Notices*) (which notice shall be irrevocable and shall specify the date fixed for redemption) at the Residual Call Early Redemption Amount together, if appropriate, with interest accrued to (but excluding) the date of redemption.

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# (f) *Redemption at the Option of the Noteholders (Investor Put)*

If Investor Put is specified as being applicable in the applicable Final Terms, upon the holder of any Note giving to the Issuer in accordance with Condition 12 (*Notices*) not less than 15 nor more than 30 days' notice the Issuer will, upon the expiry of such notice, redeem, in whole (but not in part), such Note on the Optional Redemption Date and at the Optional Redemption Amount specified in the applicable Final Terms together, if appropriate, with interest accrued to (but excluding) the Optional Redemption Date.

If this Note is in definitive form and held outside Euroclear and Clearstream, Luxembourg, to exercise the right to require redemption of this Note the holder of this Note must deliver such Note at the specified office of any Paying Agent at any time during normal business hours of such Paying Agent falling within the notice period, accompanied by a duly completed and signed notice of exercise in the form (for the time being current) obtainable from any specified office of any Paying Agent (a **Put Notice**) and in which the holder must specify a bank account (or, if payment is by cheque, an address) to which payment is to be made under this Condition accompanied by this Note or evidence satisfactory to the Paying Agent concerned that this Note will, following delivery of the Put Notice, be held to its order or under its control. If this Note is represented by a global Note or is in definitive form and held through Euroclear or Clearstream, Luxembourg, to exercise the right to require redemption of this Note the holder of this Note must, within the notice period, give notice to the Agent of such exercise in accordance with the standard procedures of Euroclear and Clearstream, Luxembourg (which may include notice being given on their instruction by Euroclear or Clearstream, Luxembourg or any common depository or common safekeeper, as the case may be, for them to the Agent by electronic means) in a form acceptable to Euroclear and Clearstream, Luxembourg from time to time.

Any Put Notice or other notice given in accordance with the standard procedures of Euroclear and Clearstream, Luxembourg given by a holder of any Note pursuant to this paragraph shall be irrevocable except where prior to the due date of redemption an Event of Default shall have occurred and be continuing in which event such holder, at its option, may elect by notice to the Issuer to withdraw the notice given pursuant to this paragraph and instead to declare such Note forthwith due and payable pursuant to Condition 8 (*Events of Default*).

# (g) *Early Redemption Amounts*

For the purpose of paragraph (b) above and Condition 8 (*Events of Default*), the Notes will be redeemed at the Early Redemption Amount calculated as follows:

- (i) in the case of Notes with a Final Redemption Amount equal to the Issue Price, at the Final Redemption Amount thereof;
- (ii) in the case of Notes (other than Zero Coupon Notes) with a Final Redemption Amount which is or may be less or greater than the Issue Price or which is payable in a Specified Currency other than that in which the Notes are denominated, at the amount specified in, or determined in the manner specified in, the applicable Final Terms or, if no such amount or manner is so specified in the Final Terms, at their nominal amount; or
- (iii) in the case of Zero Coupon Notes, at its Early Redemption Amount calculated in accordance with the following formula:

$$\text{Early Redemption Amount} = \text{RP} \times (1 + \text{AY})^\gamma$$

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where:

RP means the Reference Price;

AY means the Accrual Yield expressed as a decimal; and

y is the Day Count Fraction specified in the applicable Final Terms which will be either (i) 30/360 (in which case the numerator will be equal to the number of days (calculated on the basis of a 360 day year consisting of 12 months of 30 days each) from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 360 (ii) Actual/360 (in which case the numerator will be equal to the actual number of days from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 360) or (iii) Actual/365 (in which case the numerator will be equal to the actual number of days from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 365).

(h) Purchases

The Issuer or the Guarantor (in the case of Notes having the benefit of the Guarantee) may at any time purchase Notes (provided that, in the case of definitive Notes, all unmatured Coupons and Talons appertaining thereto are purchased therewith) at any price in the open market or otherwise. Such Notes may be held, reissued, resold or, at the option of the Issuer or the Guarantor (in the case of Notes having the benefit of the Guarantee), surrendered to any Paying Agent for cancellation.

(i) Cancellation

All Notes which are redeemed will forthwith be cancelled (together with all unmatured Coupons attached thereto or surrendered therewith at the time of redemption). All Notes so cancelled and the Notes purchased and cancelled pursuant to paragraph (g) above (together with all unmatured Coupons cancelled therewith) shall be forwarded to the Agent and cannot be reissued or resold.

(j) Late payment on Zero Coupon Notes

If the amount payable in respect of any Zero Coupon Note upon redemption of such Zero Coupon Note pursuant to paragraph (a), (b), (c), (d), (e) or (f) above or upon its becoming due and repayable as provided in Condition 8 (Events of Default) is improperly withheld or refused, the amount due and repayable in respect of such Zero Coupon Note shall be the amount calculated as provided in paragraph (g)(iii) above as though the references therein to the date fixed for the redemption or the date upon which such Zero Coupon Note becomes due and payable were replaced by references to the date which is the earlier of:

(i) the date on which all amounts due in respect of such Zero Coupon Note have been paid; and

(ii) five days after the date on which the full amount of the moneys payable has been received by the Agent and notice to that effect has been given to the Noteholders in accordance with Condition 12 (Notices).

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## 6. Taxation

All payments of principal and interest in respect of the Notes and Coupons by the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges (Taxes) of whatever nature imposed, levied, collected, withheld or assessed by or within the Kingdom of Norway or any authority therein or thereof having power to tax, unless such withholding or deduction is required by law. In such event, the Issuer or, as the case may be, the Guarantor (in the case of Notes having the benefit of the Guarantee) shall pay such additional amounts as will result in receipt by the holders of the Notes or Coupons of such amounts as would have been received by them had no such withholding or deduction been required, except that no such additional amounts shall be payable with respect to any Note or Coupon:

- (a) presented for payment in the Kingdom of Norway; or
- (b) the holder or beneficial owner of which is liable for such Taxes in respect of such Note or Coupon by reason of the holder or beneficial owner having some connection with the Kingdom of Norway other than the mere holding of such Note or Coupon; or
- (c) presented for payment more than 30 days after the Relevant Date except to the extent that the holder thereof would have been entitled to such additional amounts on presenting the same for payment on such thirtieth day; or
- (d) on account of any Taxes that are payable pursuant to the Norwegian Tax Act section 10-80 on payments to related companies or undertakings (as such term is defined in the Norwegian Tax Act section 10-82) tax resident in a low-tax jurisdiction (as such term is defined in the Norwegian Tax Act section 10-63).

In addition, any amounts to be paid on the Notes will be paid net of any deduction or withholding imposed or required pursuant to sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986 (or any regulations thereunder or official interpretations thereof) (FATCA) or any intergovernmental agreement with the United States to implement FATCA (IGA) (or any law implementing such an intergovernmental agreement), and no additional amounts will be required to be paid on account of any such deduction or withholding.

Relevant Date means whichever is the later of (i) the date on which such payment first becomes due and (ii) if the full amount payable has not been received by the Agent on or prior to such due date, the date on which, the full amount having been so received, notice to that effect is duly given to the Noteholders in accordance with Condition 12 (Notices).

## 7. Prescription

The Notes and Coupons will become void unless claims in respect of principal and/or interest are made within a period of 10 years (in the case of principal) and five years (in the case of interest) after the Relevant Date therefor.

There shall not be included in any Coupon sheet issued on exchange of a Talon any Coupon the claim for payment in respect of which would be void pursuant to this Condition 7 (Prescription) or Condition 4(b) (Presentation of definitive Notes and Coupons) or any Talon which would be void pursuant to Condition 4(b) (Presentation of definitive Notes and Coupons).

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## 8. Events of Default

If any one or more of the following events (each an **Event of Default**) shall occur and is continuing:

- (a) the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor fails to pay any principal or interest on any of the Notes when due and such failure continues, in the case of principal or interest, for a period of 30 days; or
- (b) the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor does not perform or comply with any one or more of its other obligations in the Notes which default is incapable of remedy or is not remedied within 90 days after notice of such default shall have been given to the Agent at its specified office by any Noteholder; or
- (c) the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor is (or is, or could be, deemed by law or a court to be) insolvent or bankrupt or unable to pay its debts, stops, suspends or threatens to stop or suspend payment of all or a material part of (or of a particular type of) its debts, proposes or makes a general assignment or an arrangement or composition with or for the benefit of the relevant creditors in respect of any of such debts or a moratorium is agreed or declared in respect of or affecting all or any part of (or of a particular type of) the debts of the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor; or
- (d) (A) an order is made or an effective resolution passed for the winding-up or dissolution of the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor, or (B) the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor ceases or threatens to cease to carry on all or substantially all of its business or operations, except:
  - (i) (in the case of sub-paragraph (B)) in the case of an Asset Transfer;
  - (ii) in the case of a Permitted Reorganisation; or
  - (iii) for the purpose of and followed by any other reconstruction, amalgamation, reorganisation, merger or consolidation, on terms approved by an Extraordinary Resolution of the Noteholders; or
- (e) other than in respect of the termination of the Guarantee pursuant to Condition 2(c) (*Termination of Guarantee*), if the Guarantee ceases to be, or is claimed by the Issuer or the Guarantor not to be, in full force and effect; or
- (f) any event occurs which under the laws of any relevant jurisdiction has an analogous effect to any of the events referred to in (c) to (e) above,

then any Note may, by notice given in writing to the Agent at its specified office by the holder be declared immediately due and payable whereupon it shall become immediately due and payable at the Early Redemption Amount (as described in Condition 5(g) (*Early Redemption Amounts*)), together with accrued interest (if any) to the date of repayment, without further formality unless such Event of Default shall have been remedied prior to the receipt of such notice by the Agent.

As used herein:

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**Asset Transfer** means, at any particular time, any transfer or transfers by the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor of all or substantially all of its and its Subsidiaries' business or operations, taken as a whole, to one or more direct or indirect wholly-owned Subsidiaries and/or, in the case of the Guarantor, to the Issuer;

**Permitted Reorganisation** means any (i) consolidation by the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor with, or merger of the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor into, another person, or (ii) conveyance, transfer or lease by the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor of all or substantially all of its and its Subsidiaries' properties and assets, taken as a whole, to any person, in each case where:

(a) the person formed by such consolidation into which the Issuer or the Guarantor, as the case may be, is merged or the person which acquires by conveyance or transfer, or which leases, all or substantially all of the properties and assets of the Issuer and its Subsidiaries or the Guarantor and its Subsidiaries, in each case taken as a whole, (such person, the Successor) shall be a corporation, partnership or trust, shall be organised and validly existing under the laws of any jurisdiction and shall expressly assume, by way of a deed of assumption governed by English law (the **Deed of Assumption**), all obligations of the Issuer and/or the Guarantor, as applicable, under the Notes and/or the Guarantee, as applicable; and

(b) the Issuer or the Guarantor, as the case may be, has delivered to the Agent (1) a certificate signed by one director of the Issuer or, as the case may be, one director of the Guarantor (in the case of Notes having the benefit of the Guarantee) stating that such consolidation, merger, conveyance, transfer or lease comply with the requirements of this definition and that all conditions precedent provided for in this definition relating to such transaction have been complied with, and (2) legal opinions from (A) a leading firm of lawyers to the Successor in the country of incorporation of the Successor, and (B) a leading firm of lawyers to the Successor in England, in each case to the effect that, as a matter of the relevant law, the Deed of Assumption constitutes legal, valid and binding obligations of the Successor and is enforceable in accordance with its terms, such opinions to be available for inspection by Noteholders and Couponholders at the specified offices of the Agent; and

**Subsidiary** means, at any particular time, a company of which the Issuer or (in the case of Notes having the benefit of the Guarantee) the Guarantor directly or indirectly owns or controls at least a majority of the outstanding voting stock having power to elect directors of such company.

## 9. Replacement of Notes, Coupons and Talons

Should any Note, Coupon or Talon be lost, stolen, mutilated, defaced or destroyed, it may be replaced at the specified office of the Agent or any Replacement Agent upon payment by the claimant of such costs and expenses as may be incurred in connection therewith and on such terms as to evidence and indemnity as the Issuer may reasonably require. Mutilated or defaced Notes, Coupons or Talons must be surrendered before replacements will be issued.

## 10. Agent and Paying Agents

The names of the initial Agent and the other initial Paying Agents and their initial specified offices are set out below.

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The Issuer and the Guarantor (in the case of Notes having the benefit of the Guarantee) is entitled to vary or terminate the appointment of any Paying Agent and/or appoint additional or other Paying Agents and/or approve any change in the specified office through which any Paying Agent acts, provided that:

(i) so long as the Notes are listed on any stock exchange, there will at all times be a Paying Agent with a specified office in such place as may be required by the rules and regulations of the relevant stock exchange or other relevant authority;

(ii) there will at all times be a Paying Agent with a specified office outside Norway; and

(iii) there will at all times be an Agent.

In addition, the Issuer and the Guarantor (in the case of Notes having the benefit of the Guarantee) shall forthwith appoint a Paying Agent having a specified office in New York City in the circumstances described in the final paragraph of Condition 4(d) (General provisions applicable to payments). Notice of any variation, termination, appointment or change in Paying Agents will be given to the Noteholders promptly by the issuer in accordance with Condition 12 (Notices).

# 11. Exchange of Talons

On and after the Interest Payment Date, on which the final Coupon comprised in any Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may be surrendered at the specified office of the Agent or any other Paying Agent in exchange for a further Coupon sheet including (if such further Coupon sheet does not include Coupons to (and including) the final date for the payment of interest due in respect of the Note to which it appertains) a further Talon, subject to the provisions of Condition 7 (Prescription).

# 12. Notices

All notices regarding the Notes shall be published in a leading English language daily newspaper of general circulation in London. It is expected that such publication will be made in the Financial Times or any other daily newspaper in London. The Issuer shall also ensure that notices are duly published in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are for the time being listed or by which they have been admitted to trading including publication on the website of the relevant stock exchange or relevant authority if required by those rules. Any such notice will be deemed to have been given on the date of the first publication or, where required to be published in both newspapers, on the date of the first publication in both such newspapers.

Until such time as any definitive Notes are issued, there may (provided that, in the case of Notes listed on any stock exchange or admitted to trading by another relevant authority, such stock exchange or relevant authority permits), so long as the global Note(s) is or are held in its/their entirety on behalf of Euroclear and Clearstream, Luxembourg, be substituted for such publication in such newspaper(s) or such website the delivery of the relevant notice to Euroclear and Clearstream, Luxembourg for communication by them to the holders of the Notes. Any such notice shall be deemed to have been given to the holders of the Notes on the day on which the said notice was given to Euroclear and Clearstream, Luxembourg.

Notices to be given by any holder of the Notes shall be in writing and given by lodging the same, together (in the case of any Note in definitive form) with the relative Note or Notes, with the Agent. Whilst any of the Notes are represented by a global Note, such notice may

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be given by any holder of a Note to the Agent via Euroclear and/or Clearstream, Luxembourg, as the case may be, in such manner as the Agent and Euroclear and/or Clearstream, Luxembourg, as the case may be, may approve for this purpose.

### 13. Meetings of Noteholders, Modification and Waiver

The Agency Agreement contains provisions for convening meetings (including by way of conference call or by use of a videoconference platform) of Noteholders to consider matters affecting their interests, including the sanctioning by Extraordinary Resolution of a modification of any of these Conditions. Such a meeting may be convened by Noteholders holding not less than 10 per cent. in nominal principal amount of the Notes for the time being outstanding. The quorum for any meeting convened to consider an Extraordinary Resolution will be two or more persons holding or representing a clear majority in nominal amount of the Notes for the time being outstanding, or at any adjourned meeting one or more persons being or representing Noteholders whatever the nominal amount of the Notes held or represented, unless the business of such meeting includes consideration of proposals, inter alia, (i) to modify the maturity of the Notes or the dates on which interest is payable in respect of the Notes, (ii) to reduce or cancel the principal amount of interest on the Notes, (iii) to change the currency of payment of the Notes or the Coupons, (iv) to modify the provisions concerning the quorum required at any meeting of Noteholders or the majority required to pass an Extraordinary Resolution, or (v) to modify or cancel the obligations of the Guarantor under the Guarantee, in which case the necessary quorum will be two or more persons holding or representing not less than 75 per cent., or at any adjourned meeting not less than 25 per cent., in principal amount of the Notes for the time being outstanding. The Agency Agreement provides that (i) a resolution passed at a meeting duly convened and held in accordance with the Agency Agreement by a majority consisting of not less than 75 per cent. of the votes cast on such resolution, (ii) a resolution in writing signed by or on behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the time being outstanding or (iii) consent given by way of electronic consents through the relevant clearing system(s) (in a form satisfactory to the Agent) by or on behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the time being outstanding, shall, in each case, be effective as an Extraordinary Resolution of the Noteholders. Any Extraordinary Resolution duly passed shall be binding on Noteholders (whether or not they were present at any meeting, and whether or not they voted on such resolution) and on all Couponholders.

The Agent, the Issuer and (in the case of Notes having the benefit of the Guarantee) the Guarantor may agree, without the consent of the Noteholders or Couponholders, to:

- (i) any modification (except as mentioned above) of the Agency Agreement which is, in the sole opinion of the Issuer and (in the case of Notes having the benefit of the Guarantee) the Guarantor, not prejudicial to the interests of the Noteholders; or
- (ii) any modification of the Notes, the Coupons or the Agency Agreement which is, in the sole opinion of the Issuer and (in the case of Notes having the benefit of the Guarantee) the Guarantor, of a formal, minor or technical nature or is made to correct a manifest error or to comply with mandatory provisions of the law of the jurisdiction in which the Issuer is incorporated.

Any such modification shall be binding on the Noteholders and the Couponholders and any such modification shall be notified to the Noteholders in accordance with Condition 12 (Notices) as soon as practicable thereafter.

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In addition, the Agent shall be obliged to use its reasonable endeavours to effect any Benchmark Amendments or Benchmark Replacement Confirming Changes in the circumstances and as otherwise set out in Condition 3(b)(viii) (Benchmark Discontinuation) or Condition 3(b)(ix) (Benchmark Discontinuation - SOFR) above (as applicable), without the consent of the Noteholders or the Couponholders.

# 14. Substitution

The Issuer, or any previously substituted company, may at any time, without the consent of the Noteholders or the Couponholders, substitute for itself as principal debtor under the Notes and the Coupons a company (the Substitute) as principal debtor under the Notes or Coupons in the manner specified in Schedule 6 to the Agency Agreement, provided that no payment in respect of the Notes or the Coupons is at the relevant time overdue. The substitution shall be made by a deed poll (the Deed Poll), to be substantially in the form exhibited to the Agency Agreement, and may take place only if:

(i) the obligations of the Substitute under the Deed Poll, the Notes and the Coupons shall be unconditionally and irrevocably guaranteed by Equinor ASA (in such capacity, the New Guarantor and such guarantee, the New Guarantee) and (in the case of Notes having the benefit of the Guarantee) the Guarantor, by means of the Deed Poll;

(ii) all action, conditions and things required to be taken, fulfilled and done (including the obtaining of any necessary consents) to ensure that the Deed Poll, the Notes and Coupons represent valid, legally binding and enforceable obligations of the Substitute and in the case of the Deed Poll of the New Guarantor and (in the case of Notes having the benefit of the Guarantee) the Guarantor have been taken, fulfilled and done and are in full force and effect;

(iii) the Substitute shall have become party to the Agency Agreement, with any appropriate consequential amendments, as if it had been an original party to it;

(iv) each stock exchange or listing authority which has the Notes listed on such stock exchange shall have confirmed that following the proposed substitution of the Substitute the Notes would continue to be listed on such stock exchange;

(v) legal opinions addressed to the Noteholders shall have been delivered to them (care of the Agent) from a lawyer or firm of lawyers with a leading securities practice in (i) the Kingdom of Norway and, if applicable, any Substitute Jurisdiction (as defined in the final paragraph of this Condition 14 (Substitution)) and (ii) England, in each case as to the fulfilment of the preceding conditions of this Condition 14 (Substitution) and the other matters specified in the Deed Poll; and

(vi) the Issuer shall have given at least 14 days' prior notice of such substitution to the Noteholders, stating that copies, or, pending execution, the agreed text, of all documents in relation to the substitution which are referred to above, or which might otherwise reasonably be regarded as material to Noteholders, will be available for inspection at the specified office of each of the Paying Agents. References in Condition 8 (Events of Default) to obligations under the Notes shall be deemed to include obligations under the Deed Poll, and the events listed in Condition 8 (Events of Default) shall be deemed to include the New Guarantee not being (or being claimed by the New Guarantor not to be) in full force and effect and the provisions of Condition 8(c) to 8(e) (Events of Default) inclusive (other than the words "other than in respect of the termination of the Guarantee pursuant to Condition 2(c) (Termination of

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Guarantee)" in Condition 8(e)) shall be deemed to apply in addition to the New Guarantor.

In connection with any proposed substitution pursuant to this Condition 14 (Substitution), the Issuer (or previously substituted company, as the case may be) or Substitute shall not be required to have regard to, or be in any way liable for, the consequences of such substitution for individual Noteholders or the Couponholders resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory. No Noteholder or Couponholder shall, in connection with any such substitution, be entitled to claim from the Issuer (or previously substituted company, as the case may be) or Substitute any indemnification or payment in respect of any tax consequence of any such substitution upon such individual Noteholders or Couponholders, except to the extent already provided in Condition 6 (Taxation) as modified in accordance with the following paragraph.

Where a substitution takes place pursuant to this Condition 14 (Substitution) and the Substitute is subject, by reason of its incorporation or residence for tax purposes, to a jurisdiction or any political subdivision or any authority thereof or therein having power to tax (the Substitute Jurisdiction) other than the Kingdom of Norway (or, as the case may be, the jurisdiction of incorporation or residence for tax purposes of the preceding substituted company) or any political subdivision or any authority thereof or therein having power to tax (the Previous Jurisdiction), references to the Previous Jurisdiction in Condition 5(b) (Redemption for Tax Reasons) and Condition 6 (Taxation) shall, in respect of any payments to be made by the Substitute (but not in respect of payments to be made by (A) the New Guarantor under the New Guarantee or (B) (in the case of Notes having the benefit of the Guarantee) the Guarantor), be deemed to be replaced by references to the Substitute Jurisdiction, and Conditions 5(b) (Redemption for Tax Reasons) and 6 (Taxation) shall be deemed to be modified accordingly when the substitution takes place.

15. Further Issues

The Issuer shall be at liberty from time to time without the consent of the Noteholders or Couponholders to create and issue further notes having terms and conditions the same as the Notes or the same in all respects save for the amount and date of the first payment of interest thereon and so that the same shall be consolidated and form a single Series with the outstanding Notes.

16. Contracts (Rights of Third Parties) Act 1999

A person who is not a Noteholder has no right under the Contracts (Rights of Third Parties) Act 1999 (the Act) to enforce any term of the Notes, but this does not affect any right or remedy of a third party which exists or is available apart from the Act.

17. Governing Law and Submission to Jurisdiction

(a) The Agency Agreement, the Guarantee, the Notes and the Coupons and any non-contractual obligations arising out of or in connection with the Agency Agreement, the Guarantee, the Notes and the Coupons are governed by, and shall be construed in accordance with, English law.

(b) Subject to paragraph (c) below, the courts of England are to have jurisdiction to settle any disputes (including a dispute relating to any non-contractual obligations) which may arise out of or in connection with the Guarantee, the Notes or the Coupons and accordingly any legal action or proceedings arising out of or in connection with the

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Guarantee, the Notes or the Coupons (**Proceedings**) may be brought in such courts. Each of the Issuer and the Guarantor irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in any such courts whether on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

- (c) This paragraph (c) is for the benefit of each of the Noteholders and Couponholders only. To the extent permitted by applicable law, each of the Noteholders and Couponholders may take Proceedings against the Issuer and/or the Guarantor in any other court of competent jurisdiction and concurrent Proceedings in any number of jurisdictions.
- (d) Each of the Issuer and the Guarantor irrevocably appoints Equinor UK Limited at its registered office in England for the time being at One Kingdom Street, Paddington Central, London W2 6BD to receive service of process in any Proceedings in England based on any of the Notes or Coupons. If for any reason the Issuer or Guarantor does not have such an agent in England, it will promptly appoint a substitute process agent and notify the Noteholders of such appointment. Nothing herein shall affect the right to serve process in any other manner permitted by law.

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# **AGENT**

The Bank of New York Mellon, London
Branch One Canada Square
London E14 5AL
United Kingdom

# **PAYING AGENT**

The Bank of New York Mellon SA/NV, Luxembourg Branch
Vertigo Building - Polaris
2-4 rue, Eugène
Ruppert L-2453
Luxembourg

and/or such other or further Agent and other or further Paying Agents and/or specified offices as may from time to time be duly appointed by the Issuer and notice of which has been given to the Noteholders.

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## SCHEDULE 2

### FORMS OF GLOBAL AND DEFINITIVE NOTES, COUPONS AND TALONS

#### PART 1

#### FORM OF TEMPORARY GLOBAL NOTE

### EQUINOR ASA

#### TEMPORARY GLOBAL NOTE

Unconditionally and (subject to Condition 2(c)) irrevocably guaranteed by EQUINOR ENERGY AS

This Global Note is a Temporary Global Note in respect of a duly authorised issue of Notes (the **Notes**) of Equinor ASA (the **Issuer**) described, and having the provisions specified, in Part A of the attached Final Terms (the **Final Terms**). References in this Global Note to the Conditions shall be to the Terms and Conditions of the Notes other than VPS Notes as set out in Schedule 1 to the Agency Agreement (as defined below) as completed by the information set out in the Final Terms, but in the event of any conflict between the provisions of (a) that Schedule or (b) this Global Note and the information set out in the Final Terms, the Final Terms will prevail.

Words and expressions defined or set out in the Conditions and/or the Final Terms shall have the same meaning when used in this Global Note.

This Global Note is issued subject to, and with the benefit of, the Conditions and an Agency Agreement (the **Agency Agreement**, which expression shall be construed as a reference to that agreement as the same may be amended, supplemented, novated or restated from time to time) dated 13 May 2020 and made between the Issuer, Equinor Energy AS as guarantor (the **Guarantor**), The Bank of New York Mellon (the **Agent**) and the other agents named in it.

For value received the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer of this Global Note on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this Global Note may become due and repayable in accordance with the Conditions, the amount payable under the Conditions in respect of the Notes represented by this Global Note on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Global Note calculated and payable as provided in the Conditions together with any other sums payable under the Conditions, upon (if the Final Terms indicates that this Global Note is not intended to be a New Global Note) presentation and, at maturity, surrender of this Global Note to or to the order of the Agent or any of the other paying agents located outside the United States (except as provided in the Conditions) from time to time appointed by the Issuer and the Guarantor in respect of the Notes, but in each case subject to the requirements as to certification provided below.

If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Global Note shall be the aggregate nominal amount from time to time entered in the records of both Euroclear Bank SA/NV and Clearstream Banking S.A. (together, the **relevant Clearing Systems**). The records of the relevant Clearing Systems (which expression in this Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Global Note and, for these purposes, a statement issued by a relevant Clearing System stating the nominal amount of Notes represented by this Global Note at any time (which statement shall be made

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available to the bearer upon request) shall be conclusive evidence of the records of the relevant Clearing System at that time.

If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by this Global Note shall be the amount stated in the Final Terms or, if lower, the nominal amount most recently entered by or on behalf of the Issuer in the relevant column in Part 2 or 3 of Schedule One or in Schedule Two.

On any redemption or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Global Note the Issuer shall procure that:

(a) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered pro rata in the records of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Notes recorded in the records of the relevant Clearing Systems and represented by this Global Note shall be reduced by the aggregate nominal amount of the Notes so redeemed or purchased and cancelled; or

(b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of the Issuer in Schedule One and the relevant space in Schedule One recording any such redemption, payment or purchase and cancellation (as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption, purchase and cancellation, the nominal amount of the Notes represented by this Global Note shall be reduced by the nominal amount of the Notes so redeemed or purchased and cancelled.

Payments due in respect of Notes for the time being represented by this Global Note shall be made to the bearer of this Global Note and each payment so made will discharge the Issuer's obligations in respect thereof. Any failure to make the entries referred to above shall not affect such discharge.

Prior to the Exchange Date (as defined below), all payments (if any) on this Global Note will only be made to the bearer hereof to the extent that there is presented to the Agent by a relevant Clearing System a certificate to the effect that it has received from or in respect of a person entitled to a particular nominal amount of the Notes (as shown by its records) a certificate of non-US beneficial ownership in the form required by it. The bearer of this Global Note will not be entitled to receive any payment of interest due on or after the Exchange Date unless upon due certification exchange of this Global Note is improperly withheld or refused.

On or after the date (the Exchange Date) which is 40 days after the Issue Date this Global Note may be exchanged in whole or in part (free of charge) for, as specified in the Final Terms, either:

(a) security printed Definitive Notes and (if applicable) Coupons and Talons in the form set out in Part 3, Part 4 and Part 5 respectively of Schedule 2 to the Agency Agreement (on the basis that all the appropriate details have been included on the face of such Definitive Notes and (if applicable) Coupons and Talons and the Final Terms (or the relevant provisions of the Final Terms) have been endorsed on or attached to such Definitive Notes); or

(b) either, (i) if the Final Terms indicates that this Global Note is intended to be a New Global Note, interests recorded in the records of the relevant Clearing Systems in a Permanent Global Note or, (ii) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, a Permanent Global Note, which, in either case, is in or substantially in the form set out in Part 2 of Schedule 6 to the Agency Agreement (together with the Final Terms attached to it),

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in each case upon notice being given by a relevant Clearing System acting on the instructions of any holder of an interest in this Global Note.

If Definitive Notes and (if applicable) Coupons and/or Talons have already been issued in exchange for all the Notes represented for the time being by the Permanent Global Note, then this Global Note may only thereafter be exchanged for Definitive Notes and (if applicable) Coupons and/or Talons in accordance with the terms of this Global Note.

This Global Note may be exchanged by the bearer hereof on any day (other than a Saturday or Sunday) on which banks are open for general business in London. The Issuer shall procure that, as appropriate, (i) the Definitive Notes or (as the case may be) the Permanent Global Note issued and delivered, or (ii) the interests in the Permanent Global Note (where the Final Terms indicates that this Global Note is intended to be a New Global Note) shall be recorded in the records of the relevant Clearing System, in each case in exchange for only that portion of this Global Note in respect of which there shall have been presented to the Agent by a relevant Clearing System a certificate to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular nominal amount of the Notes (as shown by its records) a certificate of non-US beneficial ownership from such person in the form required by it. The aggregate nominal amount of Definitive Notes or interests in a Permanent Global Note issued upon an exchange of this Global Note will, subject to the terms hereof, be equal to the aggregate nominal amount of this Global Note submitted by the bearer for exchange.

On an exchange of the whole of this Global Note, this Global Note shall be surrendered to or to the order of the Agent. On an exchange of part only of this Global Note, the Issuer shall procure that:

- (a) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such exchange shall be entered pro rata in the records of the relevant Clearing Systems; or
- (b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two and the relevant space in Schedule Two recording such exchange shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes represented by this Global Note shall be reduced by the nominal amount so exchanged. On any exchange of this Global Note for a Permanent Global Note, details of such exchange shall also be entered by or on behalf of the Issuer in Schedule Two to the Permanent Global Note and the relevant space in Schedule Two to the Permanent Global Note recording such exchange shall be signed by or on behalf of the Issuer.

Until the exchange of the whole of this Global Note, the bearer of this Global Note shall in all respects (except as otherwise provided in this Global Note) be entitled to the same benefits as if he were the bearer of Definitive Notes and the relative Coupons and/or Talons (if any) represented by this Global Note. Accordingly, except as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent may deem and treat the holder of this Global Note as the absolute owner of this Global Note for all purposes.

In the event that this Global Note (or any part of it) has become due and repayable in accordance with the Conditions or that the Maturity Date (if any) has occurred and, in either case, payment in full of the amount due has not been made to the bearer in accordance with the provisions set out above, then from 8.00 p.m. (London time) on such day each Noteholder will become entitled to proceed directly against the Issuer on, and subject to, the terms of the Deed of Covenant executed by the Issuer on 13 May 2020 (as amended, supplemented, novated and/or restated as at the Issue Date) in respect of the Notes and the bearer will have no further rights under this Global Note (but without prejudice to the rights which the bearer or any other person may have under the Deed of Covenant).

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No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

If any provision in or obligation under this Global Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Global Note, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Global Note.

This Global Note and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

This Global Note shall not be valid unless authenticated by the Agent and, if the Final Terms indicates that this Global Note is intended to be a NGN (i) which is intended to be held in a manner which would allow Eurosystem eligibility or (ii) in respect of which effectuation is applicable, effectuated by the entity appointed as common safe-keeper by the relevant Clearing Systems.

**IN WITNESS** whereof the Issuer has caused this Global Note to be duly executed on its behalf.

**EQUINOR ASA**

By:

Authenticated without recourse,
warranty or liability by

**THE BANK OF NEW YORK
MELLON**

By:

Effectuated without
recourse, warranty or
liability by

...
as common safekeeper

By:

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# **SCHEDULE ONE TO THE TEMPORARY GLOBAL NOTE$^{1}$**

# **PART 1**

# **INTEREST PAYMENTS**

| Date made | Total amount of interest payable | Amount of interest paid | Confirmation of payment on behalf of the Issuer |
| --- | --- | --- | --- |

$^{1}$ Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.

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# **PART 2**

**REDEMPTIONS**

| Date made | Total amount of principal payable | Amount of principal paid | Remaining nominal amount of this Global Note following such redemption 1 | Confirmation of redemption on behalf of the Issuer |
| --- | --- | --- | --- | --- |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |

$^{1}$ See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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# **PART 3**

# **PURCHASES AND CANCELLATIONS**

| Date made | Part of nominal amount of this Global Note purchased and cancelled | Remaining nominal amount of this Global Note following such purchase and cancellation* | Confirmation of purchase and cancellation on behalf of the Issuer |
| --- | --- | --- | --- |

* See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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# **SCHEDULE TWO TO THE TEMPORARY GLOBAL NOTE2**

# **EXCHANGES**
**FOR DEFINITIVE NOTES OR PERMANENT GLOBAL NOTE**

The following exchanges of a part of this Global Note for Definitive Notes or a Permanent Global Note have been made:

| Date made | Nominal amount of this Global Note exchanged for Definitive Notes or a Permanent Global Note | Remaining nominal amount of this Global Note following such exchange* | Notation made on behalf of the Issuer |
| --- | --- | --- | --- |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |

2 Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.

* See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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## PART 2

### FORM OF PERMANENT GLOBAL NOTE

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE INTERNAL REVENUE CODE.**

## EQUINOR ASA

### PERMANENT GLOBAL NOTE

Unconditionally and (subject to Condition 2(c)) irrevocably guaranteed by EQUINOR ENERGY AS

This Global Note is a Permanent Global Note in respect of a duly authorised issue of Notes (the **Notes**) of Equinor ASA (the **Issuer**) described, and having the provisions specified, in Part A of the attached Final Terms (the **Final Terms**). References in this Global Note to the Conditions shall be to the Terms and Conditions of the Notes other than VPS Notes as set out in Schedule 1 to the Agency Agreement (as defined below) as completed by the information set out in the Final Terms, but in the event of any conflict between the provisions of (a) that Schedule or (b) this Global Note and the information set out in the Final Terms, the Final Terms will prevail.

Words and expressions defined or set out in the Conditions and/or the Final Terms shall have the same meaning when used in this Global Note.

This Global Note is issued subject to, and with the benefit of, the Conditions and an Agency Agreement (the **Agency Agreement**, which expression shall be construed as a reference to that agreement as the same may be amended, supplemented, novated or restated from time to time) dated 13 May 2020 and made between the Issuer, Equinor Energy AS (the **Guarantor**), The Bank of New York Mellon (the **Agent**) and the other agents named in it.

For value received the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer of this Global Note on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this Global Note may become due and repayable in accordance with the Conditions, the amount payable under the Conditions in respect of the Notes represented by this Global Note on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Global Note calculated and payable as provided in the Conditions together with any other sums payable under the Conditions, upon (if the Final Terms indicates that this Global Note is not intended to be a New Global Note) presentation and, at maturity, surrender of this Global Note to or to the order of the Agent or any of the other paying agents located outside the United States (except as provided in the Conditions) from time to time appointed by the Issuer and the Guarantor in respect of the Notes.

If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear Bank SA/NV and Clearstream Banking S.A. (together, the **relevant Clearing Systems**). The records of the relevant Clearing Systems (which expression in this Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Global Note and, for these purposes, a statement issued by a relevant Clearing System stating the nominal amount of Notes represented by this Global Note at any time (which statement shall be made

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available to the bearer upon request) shall be conclusive evidence of the records of the relevant Clearing System at that time.

If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by this Global Note shall be the aggregate nominal amount stated in the Final Terms or, if lower, the nominal amount most recently entered by or on behalf of the Issuer in the relevant column in Part 2 or 3 of Schedule One or in Schedule Two.

On any redemption or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Global Note the Issuer shall procure that:

(i) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered pro rata in the records of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Notes recorded in the records of the relevant Clearing Systems and represented by this Global Note shall be reduced by the aggregate nominal amount of the Notes so redeemed or purchased and cancelled; or

(ii) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of the Issuer in Schedule One and the relevant space in Schedule One recording any such redemption, payment or purchase and cancellation (as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption or purchase and cancellation, the nominal amount of the Notes represented by this Global Note shall be reduced by the nominal amount of the Notes so redeemed or purchased and cancelled.

Payments due in respect of Notes for the time being represented by this Global Note shall be made to the bearer of this Global Note and each payment so made will discharge the Issuer's obligations in respect thereof. Any failure to make the entries referred to above shall not affect such discharge.

Where the Notes have initially been represented by one or more Temporary Global Notes, on any exchange of any such Temporary Global Note for this Global Note or any part of it, the Issuer shall procure that:

(i) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such exchange shall be entered in the records of the relevant Clearing Systems; or

(ii) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two and the relevant space in Schedule Two recording any such exchange shall be signed by or on behalf of the Issuer, whereupon the nominal amount of the Notes represented by this Global Note shall be increased by the nominal amount any such Temporary Global Note so exchanged.

In certain circumstances further notes may be issued which are intended on issue to be consolidated and form a single Series with the Notes. In such circumstances the Issuer shall procure that:

(i) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such further notes shall be entered in the records of the relevant Clearing Systems such that the nominal amount of Notes represented by this Global Note shall be increased by the amount of such further notes so issued; or

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(ii) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such further notes shall be entered by or on behalf of the Issuer in Schedule Two and the relevant space in Schedule Two recording such further notes shall be signed by or on behalf of the Issuer,

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whereupon the nominal amount of the Notes represented by this Global Note shall be increased by the nominal amount of any such further notes so issued.

This Global Note may be exchanged in whole but not in part (free of charge) for security printed Definitive Notes and (if applicable) Coupons and/or Talons in the form set out in Part 3, Part 4 and Part 5 respectively of Schedule 2 to the Agency Agreement (on the basis that all the appropriate details have been included on the face of such Definitive Notes and (if applicable) Coupons and Talons and the Final Terms (or the relevant provisions of the Final Terms) have been endorsed on or attached to such Definitive Notes) either, as specified in the Final Terms:

(a) upon not less than 60 days' written notice being given to the Agent by Euroclear and/or Clearstream, Luxembourg acting on the instructions of any holder of an interest in this Global Note; or

(b) only upon the occurrence of an Exchange Event.

An Exchange Event means:

(i) an Event of Default (as defined in Condition 8) has occurred and is continuing; or

(ii) the Issuer has been notified that both the relevant Clearing Systems have been closed for business for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or have in fact done so and no successor clearing system is available.

If this Global Note is only exchangeable following the occurrence of an Exchange Event:

(A) the Issuer will promptly give notice to Noteholders in accordance with Condition 12 upon the occurrence of an Exchange Event; and

(B) in the event of the occurrence of any Exchange Event, one or more of the relevant Clearing Systems acting on the instructions of any holder of an interest in this Global Note may give notice to the Agent requesting exchange. Any such exchange shall occur no later than 45 days after the date of receipt of the first relevant notice by the Agent.

Any such exchange will be made on any day (other than a Saturday or Sunday) on which banks are open for general business in London by the bearer of this Global Note. On an exchange of this Global Note, this Global Note shall be surrendered to or to the order of the Agent. The aggregate nominal amount of Definitive Notes issued upon an exchange of this Global Note will be equal to the aggregate nominal amount of this Global Note at the time of such exchange.

Until the exchange of this Global Note, the bearer of this Global Note shall in all respects (except as otherwise provided in this Global Note) be entitled to the same benefits as if he were the bearer of Definitive Notes and the relative Coupons and/or Talons (if any) represented by this Global Note. Accordingly, except as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent may deem and treat the holder of this Global Note as the absolute owner of this Global Note for all purposes.

In the event that (a) this Global Note (or any part of it) has become due and repayable in accordance with the Conditions or that the Maturity Date has occurred and, in either case, payment in full of the amount due has not been made to the bearer in accordance with the provisions set out above, or (b) following an Exchange Event, this Global Note is not duly exchanged for definitive Notes by the day provided above, then from 8.00 p.m. (London time) on such day each Noteholder will become entitled to proceed directly against the Issuer on, and subject to, the terms of the Deed of Covenant executed by the Issuer on 13 May 2020 (as amended, supplemented, novated and/or restated as at the Issue Date) in

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respect of the Notes and the bearer

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will have no further rights under this Global Note (but without prejudice to the rights which the bearer or any other person may have under the Deed of Covenant).

No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

If any provision in or obligation under this Global Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Global Note, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Global Note.

This Global Note and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

This Global Note shall not be valid unless authenticated by the Agent and, if the Final Terms indicates that this Global Note is intended to be a NGN (i) which is intended to be held in a manner which would allow Eurosystem eligibility or (ii) in respect of which effectuation is applicable, effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.

**IN WITNESS** whereof the Issuer has caused this Global Note to be duly executed on its behalf.

**EQUINOR ASA**

By:

Authenticated without recourse,
warranty or liability by

**THE BANK OF NEW YORK
MELLON**

By:

Effectuated without
recourse, warranty or
liability by

...
as common safekeeper

By:

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# **SCHEDULE ONE TO THE PERMANENT GLOBAL NOTE3**

# **PART 1**

# **INTEREST PAYMENTS**

| Date made | Total amount of interest payable | Amount of interest paid | Confirmation of payment on behalf of the Issuer |
| --- | --- | --- | --- |

3 Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.

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# **PART 2**

# **REDEMPTIONS**

| Date made | Total amount of principal payable | Amount of principal paid | Remaining nominal amount of this Global Note following such redemption 1 | Confirmation of redemption on behalf of the Issuer |
| --- | --- | --- | --- | --- |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ | _____ |

$^{1}$ See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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# **PART 3**

# **PURCHASES AND CANCELLATIONS**

| Date made | Part of nominal amount of this Global Note purchased and cancelled | Remaining nominal amount of this Global Note following such purchase and cancellation 1 | Confirmation of purchase and cancellation on behalf of the Issuer |
| --- | --- | --- | --- |

$^{1}$ See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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# **SCHEDULE TWO TO THE PERMANENT GLOBAL NOTE4**

# **SCHEDULE OF EXCHANGES AND ISSUES OF FURTHER**

# **NOTES**

The following exchanges or further notes affecting the nominal amount of this Global Note have been made:

| Date made | Nominal amount of Temporary Global Note exchanged for this Global Note or nominal amount of further notes issued | Remaining nominal amount of this Global Note following such exchange or further notes issued* | Notation made on behalf of the Issuer |
| --- | --- | --- | --- |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |
| _____ | _____ | _____ | _____ |

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4 Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.
* See the most recent entry in Part 2 or 3 of Schedule One or in Schedule Two in order to determine this amount.

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## PART 3

### FORM OF DEFINITIVE NOTE

*(Face of Note)*

[ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]$^{(1)}$

#### EQUINOR ASA

unconditionally and (subject to Condition 2(c)) irrevocably guaranteed by EQUINOR ENERGY AS

[*Specified Currency and Nominal Amount of Tranche*]

This Note is one of a duly authorised issue of Euro Medium Term Notes denominated in the Specified Currency maturing on the Maturity Date (the **Notes**) of Equinor ASA (the **Issuer**). References herein to the Conditions shall be to the Terms and Conditions of the Notes other than VPS Notes [endorsed hereon/set out in Schedule 1 to the Agency Agreement (as defined below) which shall be incorporated by reference herein and have effect as if set out herein] as completed by the Final Terms (the **Final Terms**) (or the relevant provisions of the Final Terms) endorsed hereon, but in the event of any conflict between the provisions of the Conditions and the information in the Final Terms, the Final Terms will prevail.

This Note is issued subject to, and with the benefit of, the Conditions and an amended and restated Agency Agreement (the **Agency Agreement**, which expression shall be construed as a reference to that agreement as the same may be amended, supplemented or restated from time to time) dated 9 May 2022 and made between [(*inter alios*)] the Issuer, Equinor Energy AS as guarantor, The Bank of New York Mellon, London Branch (the **Agent**) and the other parties named therein.

For value received, the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer hereof on the Maturity Date and/or on such earlier date(s) as this Note may become due and repayable in accordance with the Conditions, the amount payable under the Conditions in respect of this Note on each such date and to pay interest (if any) on this Note calculated and payable as provided in the Conditions together with any other sums payable under the Conditions.

If any provision in or obligation under this Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Note, and

(ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Note.

This Note shall not be validly issued unless authenticated by the Agent.

**IN WITNESS** whereof the Issuer has caused this Note to be duly executed on its behalf.

**EQUINOR ASA**

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(1)

This legend can be deleted if TEFRA C or TEFRA not applicable is specified in the applicable Final Terms.

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By: ...
Authorised Signatory

Authenticated without recourse,
warranty or liability by

**THE BANK OF NEW YORK MELLON, LONDON BRANCH**

By:

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*(Reverse of Note)*

# **Terms and Conditions of the Notes other than VPS Notes**

*[Terms and Conditions of the Notes other than VPS Notes to be as set out in Schedule 1 to the Agency Agreement]*

# **Final Terms**

*[Here may be set out text of Final Terms relating to the Notes]*

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# **PART 4**

**FORM OF COUPON**

*(Face of Coupon)*

# **EQUINOR ASA**

*[Specified Currency and Nominal Amount Tranche]*
NOTES DUE *[Year of Maturity]*

Series No. [ ]

# **Part A**

# **[For Fixed Rate Notes:**

# **PART 5**

# **FORM OF TALON**

*(Face of Talon)*

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

# **EQUINOR ASA**

*[Specified Currency and Nominal Amount of Tranche] EURO MEDIUM TERM NOTES DUE [Year of Maturity]*

Series No. [ ]

On and after [ ] further Coupons [and a further Talon] appertaining to the Note to which this Talon appertains will be issued at the specified office of the Agent or any of the Paying Agents set out on the reverse hereof (and/or any other or further Paying Agents and/or specified offices as may from time to time be duly appointed and notified to the Noteholders) upon production and surrender of this Talon.

This Talon may, in certain circumstances, become void under the Terms and Conditions of the Notes other than VPS Notes endorsed on the Notes to which this Talon appertains.

# **EQUINOR ASA**

By: ...
Authorised Signatory

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(Reverse of Coupon and Talon)

**AGENT**

The Bank of New York Mellon, London
Branch One Canada Square
London E145AL
United Kingdom

**PAYING AGENT**

The Bank of New York Mellon SA/NV, Luxembourg Branch
Vertigo Building - Polaris
2-4 rue, Eugène
Ruppert L-2453
Luxembourg

and/or such other or further Agent and other or further Paying Agents and/or specified offices as may from time to time be duly appointed by the Issuer and notice of which has been given to the Noteholders.

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### SCHEDULE 3

#### FORM OF DEED OF COVENANT

**THIS DEED OF COVENANT** is made on 13 May 2020 by **EQUINOR ASA** (the **Issuer**) in favour of the account holders specified below of Clearstream Banking S.A., Euroclear Bank SA/NV, and/or any other additional clearing system or systems as are specified in Part B of the Final Terms relating to any Note (as defined below) (each a **Clearing System**).

#### WHEREAS:

- (A) The Issuer has entered into an amended and restated Programme Agreement (the **Programme Agreement**, which expression includes the same as it may be further amended and/or restated and/or supplemented from time to time) dated 13 May 2020 with the Dealers named therein under which the Issuer proposes from time to time to issue Euro Medium Term Notes (the **Notes**).
- (B) The Notes (other than the VPS Notes (as defined in the Programme Agreement)) will initially be represented by, and comprised in, Temporary Global Notes (the **Temporary Global Notes**) and thereafter may be represented by, and comprised in, Permanent Global Notes (the **Permanent Global Notes**, the Temporary Global Notes and Permanent Global Notes being herein together called the **Global Notes**) representing a certain number of underlying Notes (the **Underlying Notes**).
- (C) Each Global Note may, after issue, be deposited with a depositary for one or more Clearing Systems (each such Clearing System or all such Clearing Systems together, the **Relevant Clearing System**). Upon such deposit of a Global Note the Underlying Notes represented by such Global Note will be credited to a securities account or securities accounts with the Relevant Clearing System. Any account holder with the Relevant Clearing System which has Underlying Notes credited to its securities account from time to time (each a **Relevant Account Holder**) will, subject to and in accordance with the terms and conditions and operating procedures or management regulations of the Relevant Clearing System, be entitled to transfer such Underlying Notes and (subject to and upon payment being made by the Issuer to the bearer in accordance with the terms of the relevant Global Note) will be entitled to receive payments from the Relevant Clearing System calculated by reference to the Underlying Notes credited to its securities account.
- (D) In certain circumstances specified in each Global Note, the bearer of the Global Note will have no further rights under the Global Note (but without prejudice to the rights which any person may have pursuant to this Deed of Covenant). The time at which this occurs is hereinafter referred to as the **Relevant Time**. In such circumstances each Relevant Account Holder will, subject to and in accordance with the terms of this Deed, acquire against the Issuer all those rights which such Relevant Account Holder would have had if, prior to the Relevant Time, duly executed and authenticated Definitive Note(s) (as defined in the Agency Agreement (the **Agency Agreement**, which expression includes the same as it may be further amended and/or restated and/or supplemented from time to time) dated 13 May 2020) and interest coupons (the **Coupons**) appertaining to the Definitive Note(s) (if appropriate) had been issued in respect of its Underlying Note(s) and such Definitive Notes(s) and Coupons (if appropriate) were held and beneficially owned by such Relevant Account Holder.

#### NOW THIS DEED WITNESSES AS FOLLOWS:

1. If at any time the bearer of the Global Note ceases to have rights under it in accordance with the terms thereof, the Issuer hereby undertakes and covenants with each Relevant

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Account Holder (other than when any Relevant Clearing System is an account holder of any other Relevant Clearing System) that each Relevant Account Holder shall automatically acquire at the Relevant Time,

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without the need for any further action on behalf of any person, against the relevant Issuer all those rights which such Relevant Account Holder would have had if at the Relevant Time it held and beneficially owned duly executed and authenticated Definitive Note(s) and Coupons (if appropriate) in respect of each Underlying Note represented by such Global Note which such Relevant Account Holder has credited to its securities account with the Relevant Clearing System at the Relevant Time. The Issuer's obligation pursuant to this clause shall be a separate and independent obligation by reference to each Underlying Note which a Relevant Account Holder has credited to its securities account with the Relevant Clearing System and the Issuer agrees that a Relevant Account Holder may assign its rights hereunder in whole or in part.

2. The records of the Relevant Clearing System shall be conclusive evidence of the identity of the Relevant Account Holders and the number of Underlying Notes credited to the securities account of each Relevant Account Holder. For the purposes hereof a statement issued by the Relevant Clearing System stating:

(a) the name of the Relevant Account Holder to which such statement is issued; and
(b) the aggregate nominal amount of Underlying Notes credited to the securities account of such Relevant Account Holder as at the opening of business on the first day following the Relevant Time on which the Relevant Clearing System is open for business,

shall be conclusive evidence of the records of the Relevant Clearing System at the Relevant Time.

3. In the event of a dispute, the determination of the Relevant Time by the Relevant Clearing System (in the absence of manifest error) shall be final and conclusive for all purposes in connection with the Relevant Account Holders with securities accounts with the Relevant Clearing System.
4. The Issuer undertakes in favour of each Relevant Account Holder that, in relation to any payment to be made by it under this Deed, it will comply with the provisions of Condition 6 to the extent that they apply to any payments in respect of Underlying Notes as if those provisions had been set out in full in this Deed.
5. The Issuer agrees to pay any stamp and other similar duties and taxes, including interest and penalties, payable on or in connection with the execution of this Deed and any action taken by any Relevant Account Holder to enforce the provisions of this Deed.
6. The Issuer hereby warrants, represents and covenants with each Relevant Account Holder that it has all corporate power, and has taken all necessary corporate or other steps, to enable it to execute, deliver and perform this Deed, and that this Deed constitutes a legal, valid and binding obligation of the Issuer enforceable in accordance with its terms subject to the laws of bankruptcy and other laws affecting the rights of creditors generally.
7. This Deed shall take effect as a Deed Poll for the benefit of the Relevant Account Holders from time to time and for the time being. This Deed shall be deposited with and held by the depositary or common safekeeper, as the case may be, for the Relevant Clearing System (being at the date hereof The Bank of New York Mellon at One Canada Square, London E14 5AL) until all the obligations of the Issuer hereunder have been discharged in full.
8. The Issuer hereby acknowledges the right of every Relevant Account Holder to the production of, and the right of every Relevant Account Holder to obtain (upon payment of a reasonable charge) a copy of, this Deed, and further acknowledges and covenants that the obligations binding upon it contained herein are owed to, and shall be for the account of,

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each and every Relevant Account Holder, and that each Relevant Account Holder shall be entitled severally to enforce the said obligations against the Issuer.

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9. If any provision in or obligation under this Deed is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Deed, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Deed.

10. This Deed and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

The courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this Agreement (including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement) and accordingly any legal action or proceedings arising out of or in connection with this Agreement (Proceedings) may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in any such courts whether on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This submission is made for the benefit of each of the Relevant Account Holders and, to the extent allowed by applicable law, shall not limit the right or any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

The Issuer irrevocably appoints Equinor UK Limited (whose offices are at the date of this Agreement at One Kingdom Street, Paddington Central, London W2 6BD) as its authorised agent for service of process in England. If for any reason such agent shall cease to be such agent for service of process, the Issuer shall forthwith, on request of the Agent, appoint a new agent for service of process in England and deliver to the Agent a copy of the new agent's acceptance of that appointment within 30 days. Nothing in this Agreement shall affect the right to serve process in any other manner permitted by law.

**IN WITNESS** whereof the Issuer has caused this Deed to be duly executed the day and year first above mentioned.

**EXECUTED** as a **DEED** )
by EQUINOR ASA and signed and )
delivered as a deed on its )
behalf by )
an authorised representative of the company )

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## SCHEDULE 4

### PROVISIONS FOR MEETINGS OF NOTEHOLDERS

1. As used in this Schedule the following expressions shall have the following meanings unless the context otherwise requires:

(a) **voting certificate** shall mean an English language certificate issued by a Paying Agent and dated in which it is stated:

(i) that on the date thereof Notes (not being Notes in respect of which a block voting instruction has been issued and is outstanding in respect of the meeting specified in such voting certificate and any adjourned such meeting) bearing specified serial numbers were deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control and that no such Notes will cease to be so deposited or held until the first to occur of:

(A) the conclusion of the meeting specified in such certificate or, if applicable, any adjourned such meeting; and

(B) the surrender of the certificate to the Paying Agent who issued the same; and

(ii) that the bearer thereof is entitled to attend and vote at such meeting and any adjourned such meeting in respect of the Notes represented by such certificate;

(b) **block voting instruction** shall mean an English language document issued by a Paying Agent and dated in which:

(i) it is certified that Notes (not being Notes in respect of which a voting certificate has been issued and is outstanding in respect of the meeting specified in such block voting instruction and any adjourned such meeting) have been deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control and that no such Notes will cease to be so deposited or held until the first to occur of:

(A) the conclusion of the meeting specified in such document or, if applicable, any adjourned such meeting; and

(B) the surrender to the Paying Agent not less than 48 hours before the time for which such meeting or any adjourned such meeting is convened of the receipt issued by such Paying Agent in respect of each such deposited Note which is to be released or (as the case may require) the Note or Notes ceasing with the agreement of the Paying Agent to be held to its order or under its control and the giving of notice by the Paying Agent to the Issuer in accordance with paragraph 17 hereof of the necessary amendment to the block voting instruction;

(ii) it is certified that each holder of such Notes has instructed such Paying Agent that the vote(s) attributable to the Note or Notes so deposited or held should be cast in a particular way in relation to the resolution or resolutions to be put to such meeting or any adjourned such meeting and that all such

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instructions are during the period commencing 48 hours prior to the time for which such meeting or any adjourned

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such meeting is convened and ending at the conclusion or adjournment thereof neither revocable nor capable of amendment;

(iii) the total number and the serial numbers of the Notes so deposited or held are listed distinguishing with regard to each such resolution between those in respect of which instructions have been given as aforesaid that the votes attributable thereto should be cast in favour of the resolution and those in respect of which instructions have been so given that the votes attributable thereto should be cast against the resolution; and

(iv) one or more persons named in such document (each hereinafter called a proxy) is or are authorised and instructed by such Paying Agent to cast the votes attributable to the Notes so listed in accordance with the instructions referred to in paragraph (iii) above as set out in such document.

The holder of any voting certificate or the proxies named in any block voting instruction shall for all purposes in connection with the relevant meeting or adjourned meeting of Noteholders be deemed to be the holder of the Notes to which such voting certificate or block voting instruction relates and the Paying Agent with which such Notes have been deposited or the person holding the same to the order or under the control of such Paying Agent shall be deemed for such purposes not to be the holder of those Notes.

(c) References herein to the Notes are to the Notes in respect of which the relevant meeting is convened.

2. The Issuer may at any time and, upon a requisition in writing of Noteholders holding not less than 10 per cent. in nominal amount of the Notes for the time being outstanding, shall convene a meeting of the Noteholders and if the Issuer makes default for a period of seven days in convening such a meeting the same may be convened by the requisitionists. Whenever the Issuer is about to convene any such meeting it shall forthwith give notice in writing to the Agent and the Dealers of the day, time and place thereof (which need not be a physical place and instead may be by way of conference call, including by use of a videoconference platform) and of the nature of the business to be transacted thereat. Every such meeting shall be held at such time and place as the Agent may approve.

3. At least 21 days' notice (exclusive of the day on which the notice is given and the day on which the meeting is held) specifying the place, day and hour of meeting shall be given to the Noteholders prior to any meeting of the Noteholders in the manner provided by Condition 12. Such notice shall state generally the nature of the business to be transacted at the meeting thereby convened but (except for an Extraordinary Resolution) it shall not be necessary to specify in such notice the terms of any resolution to be proposed. Such notice shall include a statement to the effect that Notes may be deposited with Paying Agents for the purpose of obtaining voting certificates or appointing proxies not less than 24 hours before the time fixed for the meeting or that, in the case of corporations, they may appoint representatives by resolution of their directors or other governing body. A copy of the notice shall be sent by post to the Issuer (unless the meeting is convened by the Issuer).

4. Some person (who may but need not be a Noteholder) nominated in writing by the Issuer shall be entitled to take the chair at every such meeting but if no such nomination is made or if at any meeting the person nominated shall not be present within fifteen minutes after the time appointed for holding the meeting the Noteholders present shall choose one of their number to be Chair.

5. At any such meeting one or more persons present holding Notes or voting certificates or

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being proxies and holding or representing in the aggregate not less than 20 per cent. in nominal amount of the Notes for the time being outstanding shall (except for the purpose of passing an Extraordinary

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Resolution) form a quorum for the transaction of business and no business (other than the choosing of a Chair) shall be transacted at any meeting unless the requisite quorum be present at the commencement of business. The quorum at any such meeting for passing an Extraordinary Resolution shall (subject as provided below) be one or more persons present holding Notes or voting certificates or being proxies and holding or representing in the aggregate a clear majority in nominal amount of the Notes for the time being outstanding PROVIDED THAT at any meeting the business of which includes any of the following matters (each of which shall only be capable of being effected after having been approved by Extraordinary Resolution) namely:

(a) modification of the Maturity Date of the Notes or reduction or cancellation of the nominal amount payable upon maturity; or
(b) reduction or cancellation of the amount payable or modification of the payment date in respect of any interest in respect of the Notes or variation of the method of calculating the rate of interest in respect of the Notes; or
(c) reduction of any Minimum Interest Rate and/or Maximum Interest Rate specified in the applicable Final Terms of any Note; or
(d) modification of the currency in which payments under the Notes and/or Coupons appertaining thereto are to be made; or
(e) modification of the majority required to pass an Extraordinary Resolution; or
(f) the sanctioning of any such scheme or proposal as is described in paragraph 18(f) below; or
(g) alteration of this proviso or the proviso to paragraph 6 below;

the quorum shall be one or more persons present holding Notes or voting certificates or being proxies and holding or representing in the aggregate not less than 75 per cent. in nominal amount of the Notes for the time being outstanding. An Extraordinary Resolution passed at any meeting of the holders of Notes will be binding on all holders of Notes, whether or not they are present at the meeting, and on all holders of Coupons appertaining to such Notes.

6. If within fifteen minutes after the time appointed for any such meeting a quorum is not present the meeting shall if convened upon the requisition of Noteholders be dissolved. In any other case it shall stand adjourned to the same day in the next week (or if such day is a public holiday the next succeeding business day) at the same time and place (except in the case of a meeting at which an Extraordinary Resolution is to be proposed in which case it shall stand adjourned for such period being not less than 14 days nor more than 42 days, and at such place as may be appointed by the Chair and approved by the Agent) and at such adjourned meeting one or more persons present holding Notes or voting certificates or being proxies (whatever the nominal amount of the Notes so held or represented by them) shall (subject as provided below) form a quorum and shall (subject as provided below) have power to pass any Extraordinary Resolution or other resolution and to decide upon all matters which could properly have been dealt with at the meeting from which the adjournment took place had the requisite quorum been present PROVIDED THAT at any adjourned meeting the business of which includes any of the matters specified in the proviso to paragraph 5 above the quorum shall be one or more persons present holding Notes or voting certificates or being proxies and holding or representing in the aggregate not less than a clear majority in nominal amount of the Notes for the time being outstanding.

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7. Notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted shall be given in the same manner as notice of an original meeting but as if 10 were substituted for 21 in paragraph 3 above and such notice shall (except in cases where the proviso to paragraph 6 above

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shall apply when it shall state the relevant quorum) state that one or more persons present holding Notes or voting certificates or being proxies at the adjourned meeting whatever the nominal amount of the Notes held or represented by them will form a quorum. Subject as aforesaid it shall not be necessary to give any notice of an adjourned meeting.

8. Except whilst the Notes are in global form and only one proxy is attending the meeting, every question submitted to a meeting shall be decided in the first instance by a show of hands. In case of equality of votes the Chair shall both on a show of hands and on a poll have a casting vote in addition to the vote or votes (if any) to which they may be entitled as a Noteholder or as a holder of a voting certificate or as a proxy.
9. At any meeting, unless the Notes are in global form and only one proxy is attending the meeting or a poll is (before or on the declaration of the result of the show of hands) demanded by the Chair or the Issuer or by one or more persons present holding Notes or voting certificates or being proxies (whatever the nominal amount of the Notes so held by them), a declaration by the Chair that a resolution has been carried or carried by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution.
10. Subject to paragraph 12 below, if at any such meeting a poll is so demanded it shall be taken in such manner and subject as hereinafter provided either at once or after an adjournment as the Chair directs and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded as at the date of the taking of the poll. The demand for a poll shall not prevent the continuance of the meeting for the transaction of any business other than the motion on which the poll has been demanded.
11. The Chair may with the consent of (and shall if directed by) any such meeting adjourn the same from time to time and from place to place but no business shall be transacted at any adjourned meeting except business which might lawfully (but for lack of required quorum) have been transacted at the meeting from which the adjournment took place.
12. Any poll demanded at any such meeting on the election of a Chair or on any question of adjournment shall be taken at the meeting without adjournment.
13. Any director or officer of the Issuer and its lawyers may attend and speak at any meeting. Save as aforesaid, but without prejudice to the proviso to the definition of outstanding in subclause 1.2 of this Agreement, no person shall be entitled to attend and speak nor shall any person be entitled to vote at any meeting of the Noteholders or join with others in requisitioning the convening of such a meeting unless they either produce the Note or Notes of which they are the holder or a voting certificate or is a proxy. Neither the Issuer nor any of its Subsidiaries shall be entitled to vote at any meeting in respect of Notes held by it for the benefit of any such company and no other person shall be entitled to vote at any meeting in respect of Notes held by it for the benefit of any such company. Nothing herein contained shall prevent any of the proxies named in any block voting instruction from being a director, officer or representative of or otherwise connected with the Issuer.
14. Subject as provided in paragraph 13 hereof at any meeting:
(a) on a show of hands every person who is present in person and produces a Note or voting certificate or is a proxy shall have one vote; and
(b) on a poll every person who is so present shall have one vote in respect of:
(i) in the case of a meeting of the holders of Notes all of which are denominated in a single currency, each minimum integral amount of such

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currency; and

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(ii) in the case of a meeting of the holders of Notes denominated in more than one currency, each €1.00 or, in the case of a Note denominated in a currency other than euro, the equivalent of €1.00 in such currency at the Agent's spot buying rate for the relevant currency against euro at or about 11.00 a.m. (London time) on the date of publication of the notice of the relevant meeting (or of the original meeting of which such meeting is an adjournment),

or such other amount as the Agent shall in its absolute discretion stipulate in nominal amount of Notes so produced or represented by the voting certificate so produced or in respect of which they are a proxy.

Without prejudice to the obligations of the proxies named in any block voting instruction any person entitled to more than one vote need not use all their votes or cast all the votes to which they are entitled in the same way.

15. The proxies named in any block voting instruction need not be Noteholders.

16. Each block voting instruction together (if so requested by the Issuer) with proof satisfactory to the Issuer of its due execution on behalf of the relevant Paying Agent shall be deposited at such place as the Agent shall approve not less than 24 hours before the time appointed for holding the meeting or adjourned meeting at which the proxies named in the block voting instruction propose to vote and in default the block voting instruction shall not be treated as valid unless the Chair of the meeting decides otherwise before such meeting or adjourned meeting proceeds to business. A certified copy of each block voting instruction shall be deposited with the Agent before the commencement of the meeting or adjourned meeting but the Agent shall not thereby be obliged to investigate or be concerned with the validity of or the authority of the proxies named in any such block voting instruction.

17. Any vote given in accordance with the terms of a block voting instruction shall be valid notwithstanding the previous revocation or amendment of the block voting instruction or of any of the Noteholders' instructions pursuant to which it was executed PROVIDED THAT no intimation in writing of such revocation or amendment shall have been received from the relevant Paying Agent by the Issuer at its registered office (or such other place as may have been approved by the Agent for the purpose) by the time being 24 hours before the time appointed for holding the meeting or adjourned meeting at which the block voting instruction is to be used.

18. A meeting of the Noteholders shall in addition to the powers hereinbefore given have the following powers exercisable by Extraordinary Resolution (subject to the provisions relating to quorum contained in paragraphs 5 and 6 above) only, namely:

(a) power to sanction any compromise or arrangement proposed to be made between the Issuer and the Noteholders and Couponholders or any of them;

(b) power to sanction any abrogation, modification, compromise or arrangement in respect of the rights of the Noteholders and Couponholders against the Issuer or against any of its property whether such rights shall arise under this Agreement, the Notes or the Coupons or otherwise;

(c) power to assent to any modification of the provisions contained in this Agreement or the Conditions, the Notes, the Coupons or the Deed of Covenant which shall be proposed by the Issuer;

(d) power to give any authority or sanction which under the provisions of this Agreement or the Notes is required to be given by Extraordinary Resolution;

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(e) power to appoint any persons (whether Noteholders or not) as a committee or committees to represent the interests of the Noteholders and to confer upon such committee or committees any powers or discretions which the Noteholders could themselves exercise by Extraordinary Resolution;

(f) power to sanction any scheme or proposal for the exchange or sale of the Notes for, or the conversion of the Notes into or the cancellation of the Notes in consideration of, shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities of the Issuer or any other company formed or to be formed, or for or into or in consideration of cash, or partly for or into or in consideration of such shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities as aforesaid and partly for or into or in consideration of cash; and

(g) power to approve the substitution of any entity in place of (i) the Issuer (or any previous substitute) as the principal debtor in respect of the Notes and the Coupons.

19. Any resolution (i) passed at a meeting of the Noteholders duly convened and held; (ii) passed as a resolution in writing or (iii) passed by way of electronic consents given by Noteholders through the relevant clearing system(s), in accordance with the provision hereof shall be binding upon all the Noteholders whether present or not present at such meeting referred to in (i) above and whether or not voting and upon all Couponholders and each of them shall be bound to give effect thereto accordingly and the passing of any such resolution shall be conclusive evidence that the circumstances justify the passing thereof. Notice of the result of the voting on any resolution duly considered by the Noteholders shall be published in accordance with Condition 12 by the Issuer within 14 days of such result being known PROVIDED THAT the non-publication of such notice shall not invalidate such resolution.

20. The expression **Extraordinary Resolution** when used in this Agreement or the Conditions means
(a) a resolution passed at a meeting of the Noteholders duly convened and held in accordance with the provisions herein contained by a majority consisting of not less than 75 per cent. of the persons voting thereat upon a show of hands or if a poll be duly demanded then by a majority consisting of not less than 75 per cent. of the votes given on such poll or (b) a resolution in writing signed by or on behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the time being outstanding, which resolution in writing may be contained in one document or in several documents in similar form each signed by or on behalf of one or more of the Noteholders or (c) consent given by way of electronic consents through the relevant clearing system(s) (in a form satisfactory to the Agent) by or on behalf of the holders of not less than 75 per cent. in nominal amount of the Notes for the time being outstanding.

21. Minutes of all resolutions and proceedings at every such meeting as aforesaid shall be made and duly entered in books to be from time to time provided for that purpose by the Issuer and any such Minutes as aforesaid if purporting to be signed by the Chair of the meeting at which such resolutions were passed or proceedings had shall be conclusive evidence of the matters therein contained and until the contrary is proved every such meeting in respect of the proceedings of which Minutes have been made shall be deemed to have been duly held and convened and all resolutions passed or proceedings had thereat to have been duly passed or had.

22. Subject to all other provisions contained herein the Agent may without the consent of the Issuer, the Noteholders or the Couponholders prescribe such further regulations regarding

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the requisitioning and/or the holding of meetings of Noteholders and attendance and voting thereat as the Agent may in its sole discretion think fit (including, without limitation, the holding of meetings by conference call, including by use of a videoconference platform in circumstances where it may be impractical or inadvisable to hold physical meetings).

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# **SCHEDULE 5**

# **FORM OF PUT NOTICE**
**for Notes in definitive form**

# **EQUINOR ASA**
**[title of relevant Series of Notes]**

By depositing this duly completed Notice with any Paying Agent for the above Series of Notes (the **Notes**) the undersigned holder of such Notes surrendered with this Notice and referred to below irrevocably exercises its option to have such Notes redeemed in accordance with Condition 5(f) on [redemption date].

This Notice relates to Notes in the aggregate nominal amount of

... bearing the following serial numbers:

...

...

...

If the Notes referred to above are to be returned (1) to the undersigned under subclause 10.4 of the Agency Agreement, they should be returned by post to:

...

...

...

# **Payment Instructions**

Please make payment in respect of the above-mentioned Notes by [cheque posted to the above address/transfer to the following bank account] (2):

Bank: ...

Branch Address: ...

Branch Code: ...

Account Number: ...

Signature of holder: ...

Duly authorised on behalf of [ ]

[To be completed by recipient Paying

Agent]

Details of missing unmatured Coupons...(3)

Received by: ...

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[Signature and stamp of Paying Agent]

At its office at: ...

On: ...

**Notes**

(1) The Agency Agreement provides that Notes so returned will be sent by post, uninsured and at the risk of the Noteholder, unless the Noteholder otherwise requests and pays the costs of such insurance to the relevant Paying Agent at the time of depositing the Note referred to above.

(2) Delete as applicable.

(3) Only relevant for Fixed Rate Notes in definitive form.

N.B. The Paying Agent with whom the above-mentioned Notes are deposited will not in any circumstances be liable to the depositing Noteholder or any other person for any loss or damage arising from any act, default or omission of such Paying Agent in relation to the said Notes or any of them unless such loss or damage was caused by the fraud or gross negligence of such Paying Agent or its directors, officers or employees.

This Put Notice is not valid unless all of the paragraphs requiring completion are duly completed. Once validly given this Put Notice is irrevocable except in the circumstances set out in subclause 10.4 of the Agency Agreement.

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## SCHEDULE 6

### FORM OF DEED POLL

This Deed Poll is made on [ ] by [name of existing issuer] as existing issuer (in its capacity as existing issuer of the Notes (as defined below), the **Existing Issuer**), a company incorporated in [ ], [and] [name of Substitute] as the substitute of the Existing Issuer (the **Substitute**), a company incorporated in [ ] [and Equinor ASA [and Equinor Energy AS] as guarantor[s] (in [its][their] capacity as guarantor[s], the **Guarantor[s]**), [a company][companies] incorporated in The Kingdom of Norway].

- (A) The Existing Issuer has entered into a Programme Agreement dated 9 May 2022 (the **Programme Agreement** which expression includes the same as it may be amended, supplemented or restated from time to time) with the Dealers named therein under which the Existing Issuer has issued and has outstanding Euro Medium Term Notes (**Notes**).
- (B) The Notes have been issued subject to and have the benefit of an Agency Agreement dated 9 May 2022 (the **Agency Agreement** which expression includes the same as it may be amended, supplemented or restated from time to time) and entered into between, *inter alios*, the Existing Issuer, The Bank of New York Mellon, London Branch as Agent (the **Agent** which expression shall include its successor or successors for the time being under the Agency Agreement) and the other parties named therein.
- (C) The Existing Issuer has executed a Deed of Covenant dated 13 May 2020 (the **Deed of Covenant**, which expression includes the same as it may be amended, supplemented or restated from time to time) relating to Global Notes (as defined in the Agency Agreement) issued by the Existing Issuer pursuant to the Programme Agreement.
- (D) It has been proposed that in respect of the Notes there will be a substitution of the Substitute for the Existing Issuer as the issuer of the Notes. Expressions defined in the Agency Agreement have the same meaning in this Deed unless the context requires otherwise.
- (E) References herein to **Notes** include any **Underlying Notes** (as defined in the Deed of Covenant). References herein to **Coupons** are to Coupons relating to the Notes. References herein to **Holder** means any Noteholder, Couponholder or, in relation to any Underlying Notes, any Relevant Account Holder.

**THIS DEED WITNESSES** as follows:

1. The Substitute agrees that, with effect from and including the first date on which notice has been given by the Existing Issuer pursuant to Condition 14 and all the other requirements of such Condition have been met (the **Effective Date**), it shall be deemed to be **the Issuer** for all purposes in respect of the Notes and any Coupons and accordingly it shall be entitled to all the rights, and subject to all the liabilities, on the part of the Existing Issuer contained in them.
2. With effect from and including the Effective Date:
   - (a) the Existing Issuer shall be released from all its liabilities, in its capacity as issuer of the Notes, contained in the Notes and any Coupons; and
   - (b) the Terms and Conditions of the Notes (the **Conditions**) shall be amended as follows:
     - (i) all references to **the Kingdom of Norway** [(or, as the case may be, the

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jurisdiction of incorporation or residence for tax purposes of the preceding substituted

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company)] in Condition 5(b) shall, in respect of payments to be made by the Substitute (but not in respect of payments to be made by [[(A)] the New Guarantor (as defined below) [[or (B)] the Guarantor[s]]] under this Deed Poll), be replaced by references to "[jurisdiction of a country of residence of the Substitute for tax purposes and/or, if different, of its incorporation]"; and

(ii) all references to the Kingdom of Norway [(or, as the case may be, the jurisdiction of incorporation or residence for tax purposes of the preceding substituted company)] in Condition 6 shall, in respect of payments to be made by the Substitute (but not in respect of payments to be made by [[(A)] the New Guarantor (as defined below) [[or (B)] the Guarantor[s]]] under this Deed Poll), be replaced by references to "[jurisdiction of a country of residence of the Substitute for tax purposes and/or, if different, of its incorporation]".

3. (a) The [Existing Issuer (in such capacity, the New Guarantor)] and the [Guarantor[s]], subject (in the case of Equinor Energy AS) to Condition [2(c)] (Termination of the Guarantee) and clause 3(g) below,] unconditionally and irrevocably guarantee[s] [on a joint and several basis] that, if for any reason the Substitute does not pay any sum payable by it under any Note or Coupon (whether or not attached to it) or this Deed on the date specified for such payment (whether on the normal due date, on acceleration or otherwise), [the New Guarantor] [or] the Guarantor[s] will pay that sum in the currency in which it is payable under such Note to the Holder on that date on demand to [either] [the New Guarantor at [ ] [or ] [the Guarantor[s] at [ ]].

(b) As between [the New Guarantor], [the Guarantor[s]] and each Holder but without effecting the Substitute's obligations, [each of] [the New Guarantor] [and] [the Guarantor[s]] will be [jointly and severally] liable under this Deed as if it were the sole principal debtor and not merely a surety. Accordingly, [each of] [the New Guarantor] [and] [the Guarantor[s]] will not be discharged, nor will its liability be affected, by anything which would not discharge it or affect its liability if it were the sole principal debtor (including (i) any time, indulgence, concession, waiver or consent at any time given to the Substitute or any other person, (ii) any amendment or supplement to any of the Conditions or to this Deed or to any security or other guarantee or indemnity, (iii) the making or absence of any demand on the Substitute or any other person for payment, (iv) the enforcement or absence of enforcement of any Note or any Coupon or this Deed or of any security or other guarantee or indemnity, (v) the taking, existence or release of any security, guarantee or indemnity, (vi) the winding-up, dissolution, amalgamation, reconstruction or reorganisation of the Substitute or any other person or (vii) the illegality, invalidity or unenforceability of or any defect in any provision of any Note or any Coupon or this Deed or any of the Substitute's obligations under any of them).

(c) The [New Guarantor's] [and, subject (in the case of Equinor Energy AS) to Condition [2(c)] (Termination of Guarantee) and clause 3(g) below, the Guarantor[s] [s] respective] obligations under this Deed are and will remain in full force and effect by way of continuing security until no sum remains payable under the Notes or any Coupons or this Deed. Furthermore, these obligations of [each of] [the New Guarantor] [and] [the Guarantor[s]] are additional to, and not instead of, any security or other guarantee or indemnity at any time existing in favour of any person, whether from [the New Guarantor], [the Guarantor[s]] or otherwise, and may be enforced without first having recourse to the Substitute, any other person, any security or any other guarantee or indemnity. [The] [Each of the] [New Guarantor] [and] [the Guarantor[s]] irrevocably waive[s] all notices and demands

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whatsoever.

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- (d) So long as any sum remains payable under any Note or any Coupon or this Deed no right of the [New Guarantor] [or] [the Guarantor[s]], by reason of the performance of any of [its][their] obligations under this Deed, to be indemnified by the Substitute or to take the benefit of or enforce any security or other guarantee or indemnity shall be exercised or enforced.
- (e) [The][Each of the][ New Guarantor] [and the] Guarantor[s]] shall on demand [jointly and severally] indemnify the relevant Holder against any cost, loss, expense or liability sustained or incurred by it (other than value added tax or similar tax to the extent recoverable by the relevant Holder) as a result of it being required for any reason (including any bankruptcy, insolvency, winding-up, dissolution, or similar law of any jurisdiction) to refund all or part of any amount received or recovered by it in respect of any sum payable by the Substitute under any relevant Note or Coupon or this Deed and [each of] [the New Guarantor] [and] [the Guarantor[s]] shall in any event pay to it on demand the amount as refunded by it.
- (f) As separate, independent and alternative stipulations, [each of] [the New Guarantor] [and] [the Guarantor[s]] unconditionally and irrevocably agrees[, on a joint and several basis]: (i) that any sum which, although expressed to be payable by the Substitute under any Note or any Coupon or this Deed, is for any reason (whether or not now existing and whether or not now known or becoming known to the Substitute, [the New Guarantor][ the Guarantor[s]] or any Noteholder or Couponholder) not recoverable from [either [of] [the New Guarantor] [or] [the Guarantor[s]] on the basis of a guarantee shall nevertheless be recoverable from it if it were the sole principal debtor and shall be paid by it to the relevant Holder on demand and (ii) as a primary obligation to indemnify each Holder against any loss suffered by it as a result of any sum expressed to be payable by the Substitute under any Note or any Coupon or this Deed not being paid by the time, on the date and otherwise in the manner specified therein or any payment obligation of the Substitute under any Note or any Coupon or this Deed being or becoming void, voidable or unenforceable for any reason (whether or not now existing and whether or not now known or becoming known to the Substitute, [the New Guarantor][, the Guarantor[s]] or any Noteholder or Couponholder), the amount of that loss being the amount expressed to be payable by the Substitute in respect of the relevant sum.
- (g) [The release of Equinor Energy AS in accordance with Condition 2(c) (*Termination of Guarantee*) from its obligations under this Deed Poll will take effect automatically unconditionally, without prejudice to any obligations which may have accrued prior to that time, without the need for any further act or thing to be done.]
4. All payments made by [either [of] [the New Guarantor] [or] [the Guarantor[s]] under this Deed shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges (**Taxes**) of whatever nature imposed, levied, collected, withheld or assessed by or within the Kingdom of Norway or any authority therein or thereof having power to tax, unless such withholding or deduction is required by law. In that event [either [of] [the New Guarantor] [or] [the Guarantor[s]] shall pay such additional amounts as will result in receipt by the Noteholders and Couponholders of such amounts as would have been received by them had no such withholding or deduction been required, except that no such additional amounts shall be payable in respect of any Note or Coupon:
- (a) to, or to a third party on behalf of, a Holder who presented the relevant Note or Coupon for payment in the Kingdom of Norway;

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(b) to, or to a third party on behalf of, a Holder who is liable (or where the beneficial owner is liable) to such Taxes by reason of the Holder having some connection with the Kingdom of Norway other than the mere holding of the Note or Coupon;

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(c) to, or to a third party on behalf of, a Holder who presented the relevant Note or Coupon for payment more than 30 days after the Relevant Date (as defined in the Conditions) except to the extent that such Holder would have been entitled to such additional amounts on presenting the same for payment on such thirtieth day;
(d) on account of any Taxes that are payable pursuant to the Norwegian Tax Act section 10-80 on payments to related companies or undertakings (as such term is defined in the Norwegian Tax Act section 10-82) tax resident in a low-tax jurisdiction (as such term is defined in the Norwegian Tax Act section 10-63); or
(e) as a result of any FATCA Withholding (as defined in the Agency Agreement).
5. The Conditions shall apply, where the context so admits, with any necessary consequential modifications, to [the New Guarantor ][, ]the Guarantor[s]] and to [its][their respective] obligations under this Deed. For the avoidance of doubt:
(a) in Condition 2(b) (Status of Guarantee) the payment obligations shall include those of [the New Guarantor ][and ][the Guarantor[s]] under this Deed;
(b) [Condition 2(c) (Termination of Guarantee) shall apply, mutatis mutandis, to the obligations of Equinor Energy AS (but not, for the avoidance of doubt, the [New][other] Guarantor) under clause 3 of this Deed;]
(c) in Condition 5(b) (Redemption for Tax Reasons):
(i) references to "the Guarantee" shall be replaced by references to the obligations of the [New Guarantor ][and ][the Guarantor[s]], as applicable,] under clause 3 of this Deed; and
(ii) references to "the Guarantor" shall be replaced by references to "[each of][ the New Guarantor ][and ][the Guarantor[s]]";
(d) Condition 5(h) (Purchases) shall apply, mutatis mutandis, to [the New Guarantor ][, ][the Guarantor[s]] and any Notes so purchased shall not entitle the holder to vote at, or attend, or be counted towards the quorum at meetings of the Noteholders for such Notes;
(e) Condition 8 (Events of Default):
(i) references to the Issuer in subclause (d) (Winding-up), shall include a reference to [the New Guarantor][ and ][the Guarantor[s]];
(ii) there shall be an additional Event of Default if the Substitute ceases to be wholly-owned and controlled by Equinor ASA; and
(iii) there shall be an additional Event of Default if the obligations of [the New Guarantor ][or ][either of ][the Guarantor[s]] under this Deed are not (or are claimed by [the New Guarantor ][or ][either of ][the Guarantor[s]] not to be) in full force and effect; and
(f) in Condition 13 (Meetings of Noteholders, Modification and Waiver) an extra category shall be added to the proposals for which a special quorum is required, namely a proposal to modify or cancel the obligations of [either [of]][ the New Guarantor][ or ][the Guarantor[s]] under this Deed.

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6. The Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] agree that the benefit of the undertakings and the covenants binding upon them contained in this Deed shall be for the benefit of each and every Holder and each Holder shall be entitled severally to enforce such obligations against the Substitute[, / and][ the New Guarantor ][and ][ the Guarantor[s]].

7. This Deed shall be deposited with and held to the exclusion of the Substitute[, / and][ the New Guarantor ][and ][the Guarantor[s]] by the Agent at its specified office for the time being under the Conditions and the Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] hereby acknowledge the right of every Noteholder to production of this Deed and, upon request and payment of the expenses incurred in connection therewith, to the production of a copy hereof certified by the Agent to be a true and complete copy.

8. This Deed may only be amended in the same way as the other Conditions are capable of amendment under Schedule 4 of the Agency Agreement and any such amendment of this Deed will constitute one of the proposals specified in Condition 13 (Meetings of Noteholders, Modification and Waiver) to which special quorum provisions apply.

9. The Deed and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

10. The Courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this Deed and accordingly any legal action or proceedings arising out of or in connection with this Deed (Proceedings) may be brought in such courts. Each of the Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in such courts whether on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This submission is made for the benefit of each Holder and shall not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

11. No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Deed, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

12. Each of the Substitute[, / and][ the New Guarantor ][and][ the Guarantor[s]] irrevocably appoints [ ] of [ ] as its agent in England to receive service of process in respect of any Proceedings in England. If for any reason it does not have such an agent for service of process, the Substitute[, / or][ the New Guarantor ][or ][the [relevant] Guarantor], as the case may be, will promptly appoint a substitute process agent and notify the Noteholders of such appointment in accordance with the Conditions. Nothing herein shall affect the right to serve process in any other manner permitted by law.

**IN WITNESS** whereof this Deed has been executed as a deed poll on the date stated at the beginning.

**EXECUTED** as a **DEED** )
by EQUINOR ASA and signed )
and delivered as a deed on its )
behalf by )
an authorised representative of the company)

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**EXECUTED** as a **DEED** )
by [Substitute] and signed )
and delivered as a deed on its )
behalf by )
an authorised representative of the company)

**[EXECUTED** as a **DEED** )
by EQUINOR ENERGY AS and signed )
and signed )
and delivered as a deed on its )
behalf by )
an authorised representative of the company)]

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## SCHEDULE 7

### FORM OF ISSUER - ICSDs AGREEMENT

*Agreement to be sent to both:*

Euroclear Bank SA/NV
New Issues Department
1 Boulevard du Roi Albert
II B-1210 Brussels,
Belgium
newissues.issuerageement@euroclear.
com Fax: +32 (0) 2 224 1421

and

Clearstream Banking
SA New Issues
Department 42
Avenue J.F. Kennedy
L-1855 Luxembourg
issueragreements@clearstream.com
Fax: +44 (0)207 862 7005

### PROGRAMME FORM

#### AGREEMENT ENTERED INTO THIS 10 MAY, OF 2019, AMONG:

Name of issuer: Equinor ASA

Address of issuer: Forusbeen 50, N-4035 Stavanger, Norway (the **Issuer**); and

Euroclear Bank SA/NV of 1 Boulevard du Roi Albert II, B-1210 Brussels, Belgium and Clearstream Banking SA of 42 Avenue J.F. Kennedy, L-1855 Luxembourg (each a **Relevant Clearing System**).

Subject: Acceptance of:

Programme Name: **Equinor ASA €20,000,000,000 Euro Medium Term Note Programme**

Programme Number: 4138

This agreement sets forth the understanding of the parties with respect to securities to be issued, as applicable, in (i) bearer New Global Note form (**NGN Securities**) or (ii) registered form under the New Safekeeping Structure (**NSS Securities**) under the above-captioned programme (the **Securities**) that the Issuer may request be made eligible for settlement with Euroclear Bank SA/NV and Clearstream Banking SA (the **ICSDs**).

In order to allow the ICSDs to accept the Securities as eligible for settlement with the ICSDs and to properly service the Securities, the Issuer hereby represents and warrants to the ICSDs that in all matters relating to the Securities it will, and it will require any agent appointed by it to, comply with the requirements for the Securities set out herein.

1. The ICSDs hereby agree that:

(a) with respect to the issue outstanding amount (**IOA**) of the Securities, each of them will (in the case of NGN Securities) maintain their respective portion of the IOA through their records; will (in the case of NSS Securities) reflect through their records their respective portion of the IOA as maintained by the NSS securities' register; will undertake daily reconciliations of such amounts with each other; and will ensure on a daily basis that the aggregate total of their respective records matches the IOA;

(b) each of them will promptly update their records to reflect the discharge of the Issuer's obligations with respect to the Securities upon the receipt of (i) a redemption payment as required pursuant to the terms of the Securities; and (ii) a confirmation from the Issuer or

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its agent of a mark-up (that is,

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increase) or mark-down (that is, decrease) of the IOA of the Securities; in doing so, each ICSD will consult with the other to ensure that the aggregate of the amounts so updated by them is equal to the total mark-up or mark-down notified to them;

- (c) each of them will, or will require any agent appointed by it to, provide the necessary information to the Issuer's agents to enable the Issuer's agents to comply with 2(c) below; and
- (d) each of them confirms that, upon the Issuer's request, it will produce for the Issuer's use a statement showing the sum of the total nominal amount of its customer holdings for the Securities as of a specified date.2. The Issuer must procure that, in relation to any Securities:- (a) it or its agents will inform the ICSDs (through the common service provider appointed by the ICSDs to service the Securities (the **CSP**)) of the initial IOA for such Securities on or prior to the applicable closing date;
- (b) if any event occurs that requires a mark-up or mark-down of the records that an ICSD holds for its customers to reflect such customers' interest in such Securities, one of its agents will promptly provide details of the amount of such mark-up or mark-down, together with a description of the event that requires it, to the ICSDs (through the CSP) to ensure that the IOA of such NGN Securities in the records of the ICSDs, or the records of the ICSDs reflecting the IOA of such NSS Securities, remain(s) at all times accurate;
- (c) it or its agents will at least monthly perform a reconciliation process with the ICSDs (through the CSP) with respect to the IOA for such Securities and will promptly inform the ICSDs (through the CSP) of any discrepancies;
- (d) it or its agents will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the IOA of such NGN Securities or in the records reflecting the IOA of such NSS Securities;
- (e) it or its agents will promptly provide to the ICSDs (through the CSP) details of all amounts paid under the Securities (or, where the Securities provide for delivery of assets other than cash, of the assets so delivered);
- (f) it or its agents will promptly provide to the ICSDs (through the CSP) any changes to the Securities that will affect the amount of, or date for, any payment due under such Securities;
- (g) it or its agents will promptly provide to the ICSDs (through the CSP) copies of all information that is given to the holders of the Securities;
- (h) its agents will promptly pass on to it all communications they receive from the ICSDs directly or through the CSP relating to the Securities; and
- (i) its agents will promptly notify the ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Securities when due.

The Issuer's obligations under this Agreement will be discharged if it includes provisions substantially to the effect set out in the paragraph above in any agreement it has with its agents. The Issuer agrees that the ICSDs may rely on communication from its agents as if such communication was received directly from the Issuer.

3. This Agreement is not intended to create and does not create any relationship of agency

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between the parties to it.

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4. This Agreement is governed by the law of the jurisdiction marked on Schedule 1.

Signed on behalf of:

**Equinor ASA**

By: _________________________
(Signature of Authorised Officer of Issuer or agent with Authorisation of Issuer)

Name of Signatory:

On behalf of Euroclear Bank SA/NV

On behalf of Clearstream Banking, société
anonyme

Stéphane Bernard, Managing Director, Head of
Asset Servicing & Transaction Operations &
Client Services

Berthold Kracke
Member of Executive Board

Laurence Van Der Haegen, Head of
Department New Issues

Marc Kieffer, Executive Vice President,
Issuance & Distribution Services

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## Schedule 1

*Please tick one jurisdiction only.*

Austria

Belgium

Canada

Cyprus

Czech Republic

Denmark

England & Wales

Estonia

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Japan

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Netherlands

Norway

Poland

Portugal

Scotland

Slovakia

Slovenia

Spain

Switzerland

Sweden

U.S.A. - New York

- Other State

*(Name of Other State)*

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## SCHEDULE 8

### ADDITIONAL DUTIES OF THE AGENT

In relation to each Series of Notes that are NGNs, the Agent will comply with the following provisions:

1. The Agent will inform each of Euroclear and Clearstream, Luxembourg (the **ICSDs**), through the common service provider appointed by the ICSDs to service the Notes (the **CSP**), of the initial issue outstanding amount (**IOA**) for each Tranche on or prior to the relevant Issue Date.
2. If any event occurs that requires a mark up or mark down of the records which an ICSD holds for its customers to reflect such customers' interest in the Notes, the Agent will (to the extent known to it) promptly provide details of the amount of such mark up or mark down, together with a description of the event that requires it, to the ICSDs (through the **CSP**) to ensure that the IOA of the Notes remains at all times accurate.
3. The Agent will at least once every month reconcile its record of the IOA of the Notes with information received from the ICSDs (through the CSP) with respect to the IOA maintained by the ICSDs for the Notes and will promptly inform the ICSDs (through the CSP) of any discrepancies.
4. The Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the IOA of the Notes.
5. The Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid by it under the Notes (or, where the Notes provide for delivery of assets other than cash, of the assets so delivered).
6. The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) notice of any changes to the Notes that will affect the amount of, or date for, any payment due under the Notes.
7. The Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) copies of all information that is given to the holders of the Notes.
8. The Agent will promptly pass on to the Issuer all communications it receives from the ICSDs directly or through the CSP relating to the Notes.
9. The Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Notes when due.

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# SIGNATORIES

# The Issuer

# EQUINOR ASA

Forusbeen 50
N-4035 Stavanger
Norway

Telefax No: + 47 51 99 90 17
Attention: Compliance Officer, Group

Finance By:

# The Guarantor

# EQUINOR ENERGY AS

Forusbeen 50
N-4035 Stavanger
Norway

Telefax No: + 47 51 99 90 17
Attention: Compliance Officer, Group

Finance By:

[Signature page to Amended and Restated Agency Agreement]

## **The Agent**

### **THE BANK OF NEW YORK MELLON, LONDON BRANCH**

One Canada Square
London E14 5AL
United Kingdom

Email:

corpsov4@bnymellon.co

m Copy to Fax: +44 207 964 2536

Attention: Corporate Trust Administration EQUINOR ASA

By:

## **The other Paying Agent**

### **THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH**

Vertigo Building
Polaris 2-4 rue Eugene
Ruppert L-2453
Luxembourg

Telephone: Luc Biever: +352 24 52 5320

Sebastien Loiseau: +352 24 52 4436

Rima Hachoud: +352 24 52

5673 Email:

LUXMB_SPS@bnymellon.co

m Fax: +352 24 52 42 04

Attention: Corporate Trust Administration EQUINOR ASA

## **All communications c/o the Agent**

By:

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# **APPENDIX 1**  
**FORM OF CALCULATION AGENCY AGREEMENT**

# **CALCULATION AGENCY AGREEMENT**

[ ]

**EQUINOR ASA** as**

**Issuer**

**and**

**[EQUINOR ENERGY AS**

**as Guarantor]**

**€20,000,000,000**

**EURO MEDIUM TERM NOTE PROGRAMME**

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# CONTENTS

| Clause | Page |
| --- | --- |
| 1. Appointment of the Calculation Agent | 126 |
| 2. Duties of Calculation Agent | 126 |
| 3. Expenses | 127 |
| 4. Indemnity | 127 |
| 5. Conditions of Appointment | 127 |
| 6. Termination of Appointment | 128 |
| 7. Notices | 129 |
| 8. General | 130 |
| 9. Contract (Rights of Third Parties) Act 1999 | 130 |
| 10. Governing Law and Submission to Jurisdiction | 130 |
| Signatories | 132 |

125

# CALCULATION AGENCY AGREEMENT

in respect of the
EQUINOR ASA €20,000,000,000

# EURO MEDIUM TERM NOTE PROGRAMME

THIS AGREEMENT is made on [ ]

BETWEEN:

(1) EQUINOR ASA of Forusbeen 50, N-4035 Stavanger, Norway (the Issuer);
(2) [EQUINOR ENERGY AS of Forusbeen 50, N-4035 Stavanger, Norway (the Guarantor)]; and
(3) [ ] of [ ] (the Calculation Agent, which expression shall include its successor or successors for the time being as calculation agent hereunder).

WHEREAS:

(A) The Issuer has entered into an amended and restated Programme Agreement with the Dealers named therein dated 9 May 2022 under which the Issuer may issue Euro Medium Term Notes (Notes) with an aggregate nominal amount of up to €20,000,000,000 (or its equivalent in other currencies).
(B) The Notes will be issued subject to and with the benefit of an amended and restated Agency Agreement (the Agency Agreement) dated 9 May 2022 and entered into between the Issuer, The Bank of New York Mellon, London Branch as Agent (the Agent which expression shall include its successor or successors for the time being under the Agency Agreement) and the other parties named therein.

NOW IT IS HEREBY AGREED that:

1. APPOINTMENT OF THE CALCULATION AGENT

The Issuer hereby appoints [ ] as Calculation Agent in respect of each Series of Notes described in the Schedule hereto (the Relevant Notes) for the purposes set out in clause 2 below, all upon the provisions hereinafter set out. The agreement of the parties hereto that this Agreement is to apply to each Series of Relevant Notes shall be evidenced by the manuscript annotation and signature in counterpart of the Schedule hereto.

2. DUTIES OF CALCULATION AGENT

The Calculation Agent shall in relation to each Series of Relevant Notes perform all the functions and duties imposed on the Calculation Agent by the terms and conditions of the Relevant Notes (the Conditions) including endorsing the Schedule hereto appropriately in relation to each Series of Relevant Notes. In addition, the Calculation Agent agrees that it will provide a copy of all calculations made by it which affect the nominal amount outstanding of any Relevant Notes which are identified on the Schedule as being NGNs to The Bank of New York Mellon, London Branch to the contact details set out on the signature page hereof.

Notwithstanding any other provision of this Agreement, the Calculation Agent shall not be obliged to perform any functions and duties imposed on it by the Conditions as a result of any Benchmark Amendments and/or Benchmark Replacement Conforming Changes (as

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applicable) enacted without

0010155-0003327 UKO2:2004375908.9

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the consent of the Calculation Agent if, in the Calculation Agent's opinion, acting reasonably and in good faith, such Benchmark Amendments and/or Benchmark Replacement Conforming Changes (as applicable) impose more onerous obligations upon it or expose it to additional duties, responsibilities or liability, or reduce or amend the protective provisions afforded to the Calculation Agent in the Conditions or this Agreement.

### 3. EXPENSES

*[To be agreed at the time of appointment]*

### 4. INDEMNITY

4.1 The Issuer shall indemnify (and failing the Issuer so indemnifying, the Guarantor agrees so to indemnify) the Calculation Agent against any loss, liability, cost, claim, action, demand or expense (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid or incurred in disputing or defending any of the foregoing) which it may incur or which may be made against the Calculation Agent as a result of or in connection with its appointment or the exercise of its powers and duties hereunder except such as may (i) result from its own default, negligence or bad faith or that of its officers, directors or employees or the breach by it of the terms of this Agreement or (ii) be governed by any other provision of this Agreement.

4.2 The Calculation Agent shall indemnify the Issuer and the Guarantor against any loss, liability, cost, claim, action, demand or expense (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid or incurred in disputing or defending any of the foregoing) which the Issuer may incur or which may be made against the Issuer as a result of the breach by the Calculation Agent of the terms of this Agreement or its default, negligence or bad faith or that of its officers, directors or employees.

### 5. CONDITIONS OF APPOINTMENT

5.1 In acting hereunder and in connection with the Relevant Notes, the Calculation Agent shall act solely as agent of the Issuer [and the Guarantor] and will not thereby assume any obligations towards or relationship of agency or trust for or with any of the owners or holders of the Relevant Notes or the coupons (if any) appertaining thereto (the **Coupons**).

5.2 In relation to each issue of Relevant Notes the Calculation Agent hereby undertakes to the Issuer to perform such obligations and duties, and shall be obliged to perform such duties and only such duties as are herein and in the Conditions specifically set forth and no implied duties or obligations shall be read into this Agreement or the Relevant Notes against the Calculation Agent, other than the duty to act honestly and in good faith and to exercise the diligence of a reasonably prudent agent in comparable circumstances.

5.3 The Calculation Agent may consult with legal and other professional advisers and the opinion of such advisers shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith and in accordance with the opinion of such advisers.

5.4 The Calculation Agent shall be protected and shall incur no liability for or in respect of any action taken, omitted or suffered in reliance upon any instruction, request or order from the Issuer [or the Guarantor] or any notice, resolution, direction, consent, certificate, affidavit, statement, cable, telex or other paper or document which it reasonably believes to be genuine and to have been delivered, signed or sent by the proper party or parties or upon written instructions from the Issuer [or the Guarantor].

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5.5 The Calculation Agent and any of its officers, directors and employees may become the owner of, or acquire any interest in, any Notes or Coupons (if any) with the same rights that it or they would have if the Calculation Agent were not appointed hereunder, and may engage or be interested in any financial or other transaction with the Issuer [or the Guarantor] and may act on, or as depositary, trustee or agent for, any committee or body of holders of Notes or Coupons (if any) or in connection with any other obligations of the Issuer [or the Guarantor] as freely as if the Calculation Agent were not appointed hereunder.

## 6. TERMINATION OF APPOINTMENT

6.1 The Issuer [or the Guarantor] may terminate the appointment of the Calculation Agent at any time by giving to the Calculation Agent at least 45 days' prior written notice to that effect, provided that, so long as any of the Relevant Notes is outstanding:

- (a) such notice shall not expire less than 45 days before any date upon which any payment is due in respect of any Relevant Notes; and
- (b) notice shall be given in accordance with the Conditions, to the holders of the Relevant Notes at least 30 days prior to any removal of the Calculation Agent.

6.2 Notwithstanding the provisions of subclause 6.1 above, if at any time:

- (a) the Calculation Agent becomes incapable of acting, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver of all or any substantial part of its property, or admits in writing its inability to pay or meet its debts as they may mature or suspends payment thereof, or if any order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or insolvency law or if a receiver of it or of all or a substantial part of its property is appointed or if any officer takes charge or control of the Calculation Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; or
- (b) the Calculation Agent fails duly to perform any function or duty imposed upon it by the Conditions and this Agreement,

the Issuer [and the Guarantor] may forthwith without notice terminate the appointment of the Calculation Agent, in which event notice thereof shall be given to the holders of the Relevant Notes, in accordance with the Conditions as soon as practicable thereafter.

6.3 The termination of the appointment pursuant to subclause 6.1 or 6.2 above of the Calculation Agent hereunder shall not entitle the Calculation Agent to any amount by way of compensation but shall be without prejudice to any amount then accrued due.

6.4 The Calculation Agent may resign its appointment hereunder at any time by giving to the Issuer [and the Guarantor] at least 90 days' prior written notice to that effect. Following receipt of a notice of resignation from the Calculation Agent, the Issuer shall promptly give notice thereof to the holders of the Relevant Notes, in accordance with the Conditions.

6.5 Notwithstanding the provisions of subclauses 6.1, 6.2 and 6.4 above, so long as any of the Relevant Notes is outstanding, the termination of the appointment of the Calculation Agent (whether by the Issuer [and the Guarantor] or by the resignation of the Calculation Agent) shall not be effective unless upon the expiry of the relevant notice a successor Calculation Agent has been appointed. The Issuer [and the Guarantor] agrees with the Calculation Agent that if, by the day falling 10 days before the expiry of any notice under subclause

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6.1 or 6.4, the Issuer [and the Guarantor] has not

0010155-0003327 UKO2:2004375908.9

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appointed a replacement Calculation Agent, the Calculation Agent shall be entitled, on behalf of the Issuer to appoint as a successor Calculation Agent in its place a reputable financial institution of good standing which the Issuer [and the Guarantor] shall approve (such approval not to be unreasonably withheld or delayed).

6.6 Upon its appointment becoming effective, a successor Calculation Agent shall without further act, deed or conveyance, become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as the Calculation Agent hereunder.

6.7 If the appointment of the Calculation Agent hereunder is terminated (whether by the Issuer [and the Guarantor] or by the resignation of the Calculation Agent), the Calculation Agent shall, on the date on which such termination becomes effective, deliver to the successor Calculation Agent any records concerning the Relevant Notes maintained by it (except such documents and records as it is obliged by law or regulation to retain or not to release), but shall have no other duties or responsibilities hereunder.

6.8 Any corporation into which the Calculation Agent may be merged or converted, or any corporation with which the Calculation Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Calculation Agent shall be a party, or any corporation to which the Calculation Agent shall sell or otherwise transfer all or substantially all of its assets shall, on the date when such merger, consolidation or transfer becomes effective and to the extent permitted by any applicable laws, become the successor Calculation Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, unless otherwise required by the Issuer and after the said effective date all references in this Agreement to the Calculation Agent shall be deemed to be references to such corporation. Written notice of any such merger, conversion, consolidation or transfer shall forthwith be given to the Issuer and the Agent.

6.9 Upon giving notice of the intended termination of the appointment of the Calculation Agent, the Issuer shall use all reasonable endeavours to appoint a further financial institution of good standing as successor Calculation Agent.

# 7. NOTICES

Any notice or communication given hereunder shall be sufficiently given or served:

(a) if delivered in person to the relevant address specified on the signature pages hereof or such other address as may be notified by the recipient in accordance with this clause and, if so delivered, shall be deemed to have been delivered at time of receipt; or
(b) if by email, when sent, subject to no delivery failure notification being received by the sender within 24 hours of the time of sending, to the relevant email address specified on the signature pages hereof or such other email address as may be notified by the recipient in accordance with this clause; or
(c) if sent by facsimile to the relevant number specified on the signature pages hereof or such other address as may be notified by the recipient in accordance with this clause and, if so sent, shall be deemed to have been delivered immediately after transmission provided such transmission is confirmed when an acknowledgement of receipt is received.

Where a communication is received after business hours it shall be deemed to be received and become effective on the next business day. Every communication shall be irrevocable

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save in respect of any manifest error therein.

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## 8. GENERAL

8.1 The descriptive headings in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

8.2 This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

8.3 If any provision in or obligation under this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Agreement

[Consider whether contractual recognition language (pursuant to Article 55 of the EU Bank Recovery and Resolution Directive) is required to be included.]

## 9. CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

## 10. GOVERNING LAW AND SUBMISSION TO JURISDICTION

10.1 This Agreement and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

10.2 The courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this Agreement (including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement) and accordingly any legal action or proceedings arising out of or in connection with this Agreement (Proceedings) (including any Proceedings relating to any non-contractual obligations arising out of or in connection with this Agreement) may be brought in such courts. The Issuer [and the Guarantor each] irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in any such courts whether on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This submission is made for the benefit of the Calculation Agent and shall not limit its right to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

10.3 The Issuer [and the Guarantor each] irrevocably appoints Equinor UK Limited (whose offices are at the date of this Agreement at One Kingdom Street, Paddington Central, London W2 6BD) as its agent for service of process in respect of any Proceedings in England. If for any reason such agent shall cease to be such agent for service of process, the Issuer shall forthwith, on request of the Calculation Agent, appoint a new agent for service of process in England and deliver to the Calculation Agent a copy of the new agent's acceptance of that appointment within 30 days. Nothing in this Agreement shall affect the right to serve process in any other manner permitted by law.

**IN WITNESS** whereof this Agreement has been entered into the day and year first above written.

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## SCHEDULE TO THE CALCULATION AGENCY AGREEMENT

| Series number Date | Issue Date | Maturity | Title and Nomina l Amount | NGN [Yes/No ] | Annotation by Calculation Agent/Issuer |
| --- | --- | --- | --- | --- | --- |

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# SIGNATORIES

### **EQUINOR ASA**

Forusbeen 50

N-4035 Stavanger

Norway

Telefax No: + 47 51 99 90 17

Attention: Compliance Officer, Group

Finance By:

### **[EQUINOR ENERGY AS**

Forusbeen 50

N-4035 Stavanger

Norway

Telefax No: + 47 51 99 90 17

Attention: Compliance Officer, Group

Finance By: ]

[Name of Calculation Agent]

[Address of Calculation

Agent] Telefax No: [

Attention: [ ]

By: ...

### **Contact Details**

### **THE BANK OF NEW YORK MELLON, LONDON BRANCH**

One Canada Square

London E14 5AL

United Kingdom

Email: corpsov4@bnymellon.com

Copy to Fax: +44 207 964 2536

Attention: Corporate Trust Administration EQUINOR ASA

0010155-0003327 UKO2:2004375908.9

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#### Significant subsidiaries
The following table shows significant subsidiaries and significant equity accounted companies within the Equinor group as of

31 December 2022.

#### Significant subsidiaries and significant equity accounted companies

#### Name

#### in %

#### Country of

#### incorporation

#### Name

#### in %

#### Country of

#### incorporation
Danske Commodities A/S

Denmark

Equinor New Energy AS

Norway

Equinor Angola Block 15 AS

Norway

Equinor Nigeria Energy Company Ltd.

Nigeria

Equinor Angola Block 17 AS

Norway

Equinor Refining Norway AS

Norway

Equinor Angola Block 31 AS

Norway

Equinor UK Ltd. (Group)

United Kingdom

Equinor Apsheron AS

Norway

Equinor US Holding Inc. (Group)

USA

Equinor Argentina AS

Norway

Equinor Ventures AS

Norway

Equinor Brasil Energia Ltda.

Brazil

Equinor Wind Power AS

Norway

Equinor BTC (Group)

Norway

Equinor Wind US LLC

USA

Equinor Canada Ltd. (Group)

Canada

Statholding AS (Group)

Norway

Equinor Dezassete AS

Norway

Wento Group

Poland

Equinor Energy AS

Norway

AWE-Arkona-Windpark Entwicklungs-

GmbH

Germany

Equinor Energy do Brasil Ltda.

Brazil

Bandurria Sur Investment SA

Argentina

Equinor Energy International AS

Norway

Hywind (Scotland) Ltd.

United Kingdom

Equinor Holding Netherlands BV

Netherlands

SCIRA Offshore Energy Ltd.

United Kingdom

Equinor In Amenas AS

Norway

Triton Power Holdings Ltd.

United Kingdom

Equinor In Salah AS

Norway

Doggerbank Offshore Wind Farm Project

1 Holdco Ltd.

United Kingdom

Equinor Insurance AS

Norway

Doggerbank Offshore Wind Farm Project

2 Holdco Ltd.

United Kingdom

Equinor International Netherlands

BV

Netherlands

Doggerbank Offshore Wind Farm Project

3 Holdco Ltd.

United Kingdom

Equinor Natural Gas LLC

USA

1) Equity accounted entities.

For investments, voting rights correspond to ownership.

![exhibit11p1i1](exhibit11p1i1.gif) ![exhibit11p1i0](exhibit11p1i0.jpg)

Code of

#### Conduct
Dear Colleague,

Our vision for Equinor is to be recognised as a company that is shaping the future of energy. Our innovative, open

and collaborative culture is central to realising this vision. In Equinor, how we deliver is as important as what we

deliver. I strongly believe that an ethical business culture is the cornerstone of a sustainable company.

This Code of Conduct is your guide to ethical business practice. It reflects our values and our belief that

conducting business in an ethical and transparent manner is not just the

*right* 

way to work, but is the

*only* 

way to

work. The Code of Conduct includes mandatory requirements for everyone who works on behalf of Equinor. My

expectation is that the Code of Conduct, together with your good judgment, will lead you to the right decisions.

You should seek guidance from your leader or other internal resources referred to in the Code of Conduct if you

are uncertain on how to proceed.

Fundamental changes are happening in our industry which has a key role in the energy transition towards a net

zero society. From geopolitics and energy markets to our industry and our climate, we face new realities. But our

commitment to high ethical standards in our business operations stays firm. It is more important than ever to earn

the trust of our stakeholders – our people, our owners, our business partners and our communities. The Code of

Conduct will assist us in earning and sustaining this trust and in building a prosperous company for the future.

We must work together to create our future Equinor. I want Equinor to continue to be a leader in ethical business

conduct. I expect that you carefully consider your business decisions to ensure that they are in line with the Code

of Conduct. Only then will we maintain Equinor's reputation and continue to earn the trust that allows the company

to succeed with our vision – the Equinor Way.

Anders Opedal

President and CEO

Table of contents

1 The Equinor Way

1.1 Equinor's Commitment

1.2 Our Code of Conduct

1.3 Your Responsibilities

1.4 Responsibilities for Leaders

1.5 Asking Questions and Reporting Concerns

1.6 Ethics Helpline

1.7 Non-Retaliation Policy

1.8 Consequences of Breaches

1.9 Ethics and Compliance in Equinor

2 Respecting our People

2.1 Equality, Diversity and Inclusion

2.2 Harassment and Intimidation

2.3 Safety and Security

2.4 Privacy and Data Protection

2.5 Drugs and Alcohol

2.6 Purchase of Sexual Services

3 Conducting our Operations

3.1 Anti-Corruption

3.2 Conflict of Interest

3.3 Directorships and Ownership Interests

3.4 International Trade Restrictions

3.5 Anti-Money Laundering and Facilitation of Tax Evasion

3.6 Financial and Business Records and Reporting

3.7 Property and Assets

3.8 IT Solutions and IT Equipment

3.9 Information Management and Confidentiality

3.10 Inside Information

![exhibit11p3i0](exhibit11p3i0.jpg)

4 Relating to our Business Partners

4.1 Suppliers and Business Partners

4.2 Intermediaries

4.3 Fair Competition

4.4 Gifts, Hospitality and Expenses

5 Communities and Environment

5.1 Local Stakeholder Engagement

5.2 Environment

5.3 Public Communication

5.4 Public Affairs

5.5 Public Officials

*The Code of Conduct will be printed in updated versions when deemed necessary. However, any changes will be updated in* 

*the electronic version as and when required, and this will always represent the most recent edition.*

*English and Norwegian are the official versions.* 

1 The Equinor way

1.1 Equinor's Commitment

Our ability to create value is dependent on applying high ethical standards to create a trust-based relationship

with our people, our owners, our business partners and our communities.

In our business activities, we will comply with applicable laws, act in an ethical, sustainable and socially

responsible manner and practice good corporate governance. We will conduct our business consistently with the

United Nations Guiding Principles on Business and Human Rights and the ten Principles of the Global Compact,

in the manner as set out in our Human Rights Policy. We support the Paris Climate Agreement and the UN

Sustainable Development Goals. We will maintain an open dialogue on ethical issues, internally and externally.

1.2 Our Code of Conduct

The Code of Conduct (the Code) sets out our expectations, commitments and requirements for ethical conduct.

The Code applies to Equinor's board members, employees and hired personnel.

The Code reflects our values: Open, Collaborative, Courageous, and Caring. The Code includes our most

important requirements, provides references to more detailed requirements in our governing documents and

refers to other helpful resources. However, the Code does not remove the need for you to exercise good

judgment.

The Code has been approved by the Equinor's Board of Directors and provided for in

The Equinor Book.

Additional requirements and helpful tools

● Corporate policy CP02- Human rights policy

1.3 Your Responsibilities

We set high ethical standards for everyone who acts on Equinor's behalf and in an Equinor capacity. It is your

responsibility to comply with the Code, both in letter and in spirit. You are also responsible for complying with

other governing documents and applicable laws relevant to your work.

What this means to you

● Familiarise yourself with the Code as well as other governing documents and applicable laws relevant to

your work.

● Act comfortably within our ethical standards and within the law. Operating in a grey zone increases the

risk of things going wrong. When in doubt, disclose the issue to your leader and discuss it openly.

● Spend sufficient time on difficult decisions and raise issues early. The wrong decisions are often taken

when things have not been thought through properly and you are pressured into taking a rash decision.

● If there is a difference between a legal requirement and the Code, apply the most stringent standard.

● Participate in required ethics and compliance training and confirm annually that you have familiarised

yourself and will comply with the Code.

1.4 Responsibilities for Leaders

We are committed to recruiting and continuously developing the best leaders for our company. We expect our

leaders to demonstrate ownership and commitment to our ethical standards by what they say and do. As a leader

you must ensure that activities within your area of responsibility are carried out in accordance with the Code, other

governing documents and applicable laws.

What this means to you

● Be a role model for ethical leadership through promotion of our values and ethical standards. Show by

behaviour what it means to act with integrity.

● Communicate the requirements in the Code and give advice on its interpretation and application.

● Facilitate a working environment free from harassment, bullying and discrimination.

● Create an environment where people feel comfortable speaking up and asking questions without the risk

of retaliation.

● Be consistent when enforcing our standards and holding people accountable for their behaviour at work.

● Make sure your team members participate in required ethics and compliance training.

1.5 Asking Questions and Reporting Concerns

The Code aims at being as clear and direct as possible, but it cannot address every situation that may arise. We

have an open communications policy, and you should raise questions or seek advice when you are uncertain

about how to proceed in any given situation.

If you suspect a possible violation of the Code or other unethical conduct, it is your duty to report it immediately.

This includes any attempts of corruption you may become aware of. We recognise that raising a concern is not

always easy and we have several channels for taking concerns forward.

What this means to you

● Inform your leader immediately if you become aware of any activity that you think is a violation of the

Code. Alternatively, you can contact your leader's superior.

● If you do not feel comfortable with those options, you can contact your local people and organisation

representative, your local compliance officer or the legal, ethics and compliance function.

● If you are uncomfortable using any of these channels, you can report your concern to the Ethics Helpline.

● You may use the same channels to ask any questions regarding complian ce with the Code.

1.6 The Ethics Helpline

The Ethics Helpline is a multi-language service available 24/7 providing phone service and a web portal. It is available to

anyone who has a legitimate concern. You may choose to remain anonymous, if permitted by law.

Additional requirements and helpful tools

● WR1408 Ethics Helpline

1.7 Non-Retaliation Policy

We will not tolerate any form of retaliation against any person who has raised an ethical or legal concern in good faith. Acting

in good faith means that you have made a sincere report in a responsible manner through any of the channels listed above.

This applies even if your report does not turn out to be an actual violation.

1.8 Consequences of Breaches

We will not tolerate any breaches of the Code or the law. Potential misconduct may be investigated by corporate

audit or other relevant internal or external experts. We will pursue remedial measures or other follow up of

personnel if you breach the Code or laws. The same applies to leaders who disregard or tolerate such breaches

either through negligence or actual knowledge. The remedial measures may include termination of your

employment contract and reporting to relevant authorities.

Incidents of ethical misconduct shall be registered and reported in accordance with our governing documents.

![exhibit11p6i0](exhibit11p6i0.jpg)

Additional requirements and helpful tools

● FR16 People and leadership

● WR2417 Ethics incident reporting

1.9 Ethics and Compliance in Equinor

We work in a systematic manner to ensure compliance with the Code and applicable laws. Our ethics and

compliance programmes apply to all parts of Equinor. Our ethics and compliance function, headed by the Chief

Ethics and Compliance Officer, is responsible for supervising Equinor's ethics and compliance activities, including

guidance on the Code and following up potential breaches. The Chief Ethics and Compliance Officer will appoint

one compliance officer to assist in such work for each business area and for selected corporate staff functions.

The business areas and corporate functions shall appoint local compliance officers where required.

The corporate executive committee constitutes Equinor's ethics committee. In addition, ethics committees have

been established in the business areas and most corporate functions, comprising the respective management

teams. The committees will ensure a strong focus on, common understanding of, and compliance with Equinor's

ethical requirements.

Additional requirements and helpful tools

● Corporate directive CD04- Committees

● WR2595 The compliance officer role

2 Respecting our people

2.1 Equality, Diversity and Inclusion

Every employee is an important member of the Equinor team. We are committed to providing an inclusive

environment recognised for its equality and diversity, and we will treat everyone with fairness, respect and dignity.

We do not tolerate any discrimination of colleagues or others affected by our operations. Discrimination includes

exclusion, preference or illegal distinction based on ethnicity, age, gender, gender identity, disability, sexual

orientation, religion or belief, political views, or any other characteristic that compromise the principle of equality.

What this means to you

● Treat everyone with fairness, respect and dignity.

● Base your work-related decisions on merit and not on other characteristics that result in compromising the

principle of equality.

Additional requirements and helpful tools

● FR16 People and leadership

2.2 Harassment and Intimidation

Courtesy and respect are important aspects of a sound working environment and business dealings. We expect

you to treat everyone you meet through work or work-related activities in a respectful manner. We will not tolerate

any form of harassment or actions that reasonably can be considered as offensive or intimidating, including any

form of unwanted or troublesome attention of a sexual nature.

What this means to you

● Take responsibility to create and maintain a good working environment.

● Never engage in harassment, bullying, workplace violence or other behaviour that colleagues or business

partners may regard as threatening or degrading.

● Offensive messages, derogatory remarks and inappropriate jokes are never acceptable.

● Respect other people's customs and culture.

● Speak up if you observe or experience harassment or intimidating behaviour

Additional requirements and helpful tools

● GL0658 Handle harassment/bullying complaint

2.3 Safety and Security

Equinor's safety and security vision is zero harm. We are committed to providing a safe, healthy and secure

environment for all personnel at our facilities and job sites, preventing accidents and incidents from affecting

people, environment and our assets. To build a culture that is Always Safe will require consistent use of I am

Safety expectations, Security Rules, Life Saving Rules and a continued focus on building a proactive safety

culture applying Human and Organizational Performance Principles.

What this means to you

● Safety and security is everyone's responsibility. You must understand and act on your responsibilities to

contribute to a healthy, safe and secure work environment.

● Stop work immediately if you consider it unsafe.

● Report any incident or unsafe condition as soon as possible. If you see something, say something.

● Know the relevant emergency procedures for your work.

Additional requirements and helpful tools

● FR10 Safety and security

● Corporate policy CP03 - Security policy

2.4 Privacy and Data Protection

Privacy and data protection laws protect the integrity and confidentiality of a person's private information. We are

committed to protecting the privacy rights of our employees and everyone with whom we do business. We will

only use personal data for appropriate purposes, and personal data will be processed in accordance with

applicable laws, internal requirements and Equinor's Binding Corporate Rules.

What this means to you

● Respect everyone's right to privacy. If your job includes handling personal data, make sure that you are

sufficiently familiar with and comply with our internal requirements for processing of personal data.

● If you have permanent or regular access to personal data, or if you are involved in collection, copying,

storing, analysing, disclosing or otherwise using personal data, take appropriate training.

Additional requirements and helpful tools

● WR1495 Processing of personal data

● Binding Corporate Rules

● GL0473 Guideline for Processing of Personal Data

2.5 Drugs and Alcohol

Equinor is a drug and alcohol-free workplace. We will not tolerate anyone being under the influence of drugs or

alcohol while at work for Equinor. Limited amounts of alcohol may, however, be consumed when local custom and

occasion make it appropriate, and provided the consumption is not combined with operating machinery, driving or

any other incompatible activity. Tests for drugs and alcohol may be conducted whenever deemed necessary and

in accordance with applicable laws.

What this means to you

● Never work under the influence of drugs or alcohol.

● Be conscious about work-related events where alcohol is served and show moderation.

Additional requirements and helpful tools

● FR16 People and leadership

2.6 Purchase of Sexual Services

Purchase of sexual services may be illegal, support human trafficking and pose a security risk. Human trafficking

is a violation of human rights. Regardless of local rules, regulations and customs, Equinor prohibits the purchase

of sexual services when on assignments or business trips for Equinor. This also includes any contribution to the

purchase of such services.

What this means to you

● Never purchase sexual services when you are on business trips or other assignments, including long-term

assignments.

● Never influence others to purchase sexual services and never accept to receive sexual services others

have paid for.

![exhibit11p9i0](exhibit11p9i0.jpg)

3 Conducting our operations

3.1 Anti-Corruption

Corruption undermines legitimate business activities, distorts competition, ruins reputations and exposes

companies and individuals to risk. We have zero tolerance for corruption in any form, including bribery,

facilitation payments and trading in influence. We will comply with all applicable anti-corruption laws and

regulations and take active steps to ensure that corruption does not occur in relation to Equinor's business

activities.

Transparency is vital in the combat of corruption. We are committed to conducting our business activities in an

open and transparent manner, promoting transparency in our industry and supporting efforts to combat

corruption worldwide.

What this means to you

● Never engage in, authorise or tolerate corruption at any time for any reason.

● Never offer or accept an improper advantage. An improper advantage is an advantage that has no

legitimate business purpose and is given to influence the recipient's decision making.

Security Classification: Open - Status:

Final

● Payment extorted from you under threat of life, health, safety or illegal detention is allowed and will not

result in any form of retaliation, but you must report the payment immediately.

● Know your business partner, follow our integrity due diligence requirements and never engage others to

do something we cannot ethically or legally do ourselves.

● Participate in required anti-corruption training and understand the risks you face in your work.

Additional requirements and helpful tools

● Anti-corruption compliance manual

● Anti-Corruption Compliance Program

3.2 Conflict of Interest

Equinor respects your right to manage your personal affairs and investments. However, a conflict of interest may

occur when your personal interests and Equinor's interests are different and this may interfere with your ability to

make the right decision for Equinor. We expect you to always act in the best interest of Equinor when you are

representing the company. You should avoid situations with actual, potential or perceived conflict of interest.

What this means to you

● Do not work in connection with any Equinor or Equinor related transaction, procurement, contract award

or other matter in which you have, or a related party has a financial interest. A related party means your

partner, close relative or any other person with whom you or they have close relations.

● The same restriction applies where there are other circumstances that undermine trust in your ability to

act in the best interest of Equinor.

● Be open, disclose and discuss with your leader any actual, potential or perceived conflict of interest. The

leader will then decide whether any measures should be taken, for instance stepping back from the

situation that caused the conflict of interest.

3.3 Directorships and Ownership Interests

We expect you to spend your full working day on Equinor matters. Before accepting external directorships or other

material assignments, you must obtain prior written consent from your senior vice president or, for any employees

above this level, your leader. If you hold directorships on behalf of Equinor, you are not entitled to board

remuneration, but if you hold directorships in a private capacity, you may retain any remuneration paid. Elected

employee representatives on the board of Equinor ASA may receive the remuneration decided by the corporate

assembly.

There are certain specific requirements for registering directorships for the following group of employees: (1) The

CEO, executive vice presidents and senior vice presidents; (2) employee representatives on the board of Equinor

ASA and (3) employees exerting influence on Equinor's procurement or other contract awards. These categories

of employees must register all directorships, except directorships in Equinor subsidiaries or when representing

Equinor in non-controlled companies, in our personnel data system. This information must be updated on a

continuous basis and verified once a year.

Furthermore, employees in groups (1) and (2) cannot hold ownership interests, or options to ownership interests,

directly or indirectly, in any company that does or seeks to do business with Equinor if the employee can exert

influence on business decisions related to such company. The same applies to companies that are competitors to

Equinor. This prohibition does not apply to ownership interests in securities funds or shares in Equinor ASA.

What this means to you

● Ensure you have the required approval before accepting a directorship or material assignment for another

company.

● Note the special requirements for registration of directorships for certain employees.

● Note the special prohibition of ownership interests in other companies for certain employees.

Additional requirements and helpful tools

● GL0548 Equinor Board of directors handbook

Security Classification: Open - Status:

Final

3.4 International Trade Restrictions

Countries can impose various economic sanctions restrictions targeting business dealings with specific countries,

economic sectors, entities or individuals of concern. Export controls on the export or in-country transfer of certain

restricted items, technology and software are also common. We will comply with all applicable economic

sanctions as well as export and import control laws. We will assess whether government authorisation is required

before engaging in activities involving restricted items, sanctioned parties or countries and will obtain and comply

with all required authorisations.

What this means to you

● Screen your business partners, suppliers and other parties (including any ownership of the same) against

relevant restricted parties' lists.

● Obtain and comply with necessary governmental licences where cross-border export or import activity

involves restricted items, technology or software.

● Be mindful that both sanctions and export control regulations are complex and subject to frequent

changes. Stay updated on the rules applicable to your business activity.

● Seek advice from the legal department if asked to deal with a sanctioned party, market or country.

Additional requirements and helpful tools

● WR2988 Integrity due diligence

● GL0358 Legal recommendations for compliance with EU/Norway sanctions related to certain countries

● Sanctions search tool on the integrity due diligence portal

3.5 Anti-Money Laundering and Facilitation of Tax Evasion

Money laundering is illegal and supports other criminal activities, including drug trafficking, terrorism, corruption,

human rights violations and tax evasion. Money laundering is the processes of disguising the proceeds of crime in

order to hide its illegal origins or otherwise dealing with the proceeds of crime. Criminal proceeds include not only

money, but all forms of assets, real estate and intangible property that are derived from criminal activity. We will

comply with all applicable anti-money laundering laws.

Tax evasion is an illegal practice where a person or entity evades paying their actual tax liability. We do not

tolerate the facilitation of tax evasion by persons who act for or on behalf of Equinor.

What this means to you

● Be attentive to unusual payments, invoicing and banking arrangement as well as unusual tax status of

suppliers.

● Seek advice from the legal department if you need a better understanding of money laundering or tax

evasion and how to mitigate such risk to Equinor.

● Know your business partners and make sure you follow our integrity due diligence requirements.

3.6 Financial and Business Records and Reporting

Recording and reporting financial or non-financial information completely, accurately and objectively are essential

for Equinor's credibility and reputation. It is also a prerequisite for meeting legal and regulatory obligations and

reporting standards. We are committed to transparency and accuracy in all our dealings, and we will provide full,

fair, accurate and understandable disclosures in our financial and non-financial reports, in documents filed with

regulatory authorities and in other public communication.

What this means to you

● The data and information you enter in our records must be accurate, complete, and reliable. This includes

financial and non- financial information for both internal and external use.

● Any accounting information you provide must be complete, accurate, valid, and recorded in accordance

with applicable laws, relevant accounting and reporting standards and the Equinor accounting manual.

Security Classification: Open - Status:

Final

● Make sure you are familiar with and comply with internal control over financial reporting requirements

relevant to your work.

● Never enter false, misleading, or artificial entries in our records and reports. Any such intentional act may

be treated as fraud.

● The highest standard of care should always be exercised when recording and reporting financial or non-

financial information.

● If you suspect or become aware of any indications of fraud, improper financial business records and

reporting or allegations of such, you must report it to your leader or the Ethics Helpline immediately.

Additional requirements and helpful tools

● FR14 Finance and control

● WR1366 Accounting manual

3.7 Property and Assets

We trust you with Equinor's assets so that you can effectively do your work. You are responsible for safeguarding

those assets against loss, theft and misuse. Equinor's assets include facilities, equipment, IT solutions and IT

equipment, information, intangible property rights and financial assets. We will not tolerate any misuse of our

assets for personal benefit.

What this means to you

● Any use of Equinor's assets for purposes not directly related to our business, unless specifically provided

for in this Code, requires permission from your leader.

● Ensure that documents used to obtain company funds and property are accurate and complete. This

includes time sheets, invoices, benefit claims and travel and expense reimbursement reports and

underlying documentation. Inaccurate or unsubstantiated records may be treated as fraud.

● As a leader you must ensure proper control before you approve any time sheets, invoices, benefit claims

and travel and expense reimbursement reports and underlying documentation for people in your team.

3.8 IT Solutions and IT Equipment

Our IT solutions and IT equipment shall be used for business purposes. Information produced and stored on our

authorized IT solutions and IT equipment is Equinor's property and may be accessed in accordance with

applicable law. Cyberattacks and malicious activitiesy are a continuous threat to Equinor, and the use of our

authorized IT solutions and IT equipment is monitored to detect such risk. This includes blocking access to

inappropriate web sites and interception of any information transmitted by or stored on our IT solutions.

What this means to you

● Handle and archive documents according to Equinor's information management requirements and

security classification system.

● Never use our IT solutions or IT equipment to perform illegal or unethical activities, including downloading,

streaming, or sharing of offensive material.

● You must be vigilant of cyberattacks and malicious activities, such as phishing, and immediately report

any incidents.

● Limited personal use of our IT solutions and IT equipment is permitted, but such use should be kept to a

minimum and have no adverse effect on cost, IT security or productivity. This includes private use of

social media.

● Respect computer software copyrights and comply with the terms and conditions of software licenses.

Additional requirements and helpful tools

● WR2893 IT Rules

Security Classification: Open - Status:

Final

3.9 Information Management and Confidentiality

During the course of business, we gain and produce information that is vital to our financial and business integrity.

Such information may, however, also be valuable for competitors and others. We will protect information created

by us, or given to us, to ensure appropriate confidentiality and integrity. It is important to share information across

the organisation to ensure collaboration, efficiency and experience transfer, but information transfer and access

must take place in accordance with our security classification system for information management.

What this means to you

● Make sure you are familiar with and comply with our information management and security classification

system when handling company information.

● Do not use Equinor's information acquired through your work for personal advantage or for the purpose of

competing with Equinor.

● You have a duty of confidentiality, which applies even after your employment or assignment with Equinor

has ended.

Additional requirements and helpful tools

● WR0158 Manage data and information

3.10 Inside Information

Equinor supports fair and open securities markets wherever we operate. You may become aware of information

about Equinor or other companies that is not publicly available. Such information may constitute inside

information. Inside information is precise information likely to have a significant effect on the price of securities

and which is not publicly available or commonly known to the market. If you are in possession of inside

information, even if acquired incidentally, you have a legal duty of confidentiality and due care of handling to

prevent such information from coming into the possession of unauthorised persons. Any use of inside information

about Equinor or other publicly traded companies for personal gain is prohibited.

Certain persons, such as members of the Board of Directors and Corporate Executive Committee, are considered

primary insiders. Additional restrictions apply for primary insiders.

What this means to you

● Never buy or sell Equinor's or other companies' shares or other securities, or provide advice to others'

investment decisions, when you have access to inside information .

● Holders of inside information must treat this confidentially and can only pass such information to

individuals who need it in their work for Equinor based on authorisation from the information owner.

● Holders of inside information relevant for the Equinor share price must be listed in Equinor's insider listing

system.

● The restriction on buying Equinor shares when you hold inside information does not prevent you from

participating in our share savings program.

Additional requirements and helpful tools

● WR1921 Primary insiders

● WR2305 Handling of Inside Information related to commodities

● WR2401 Inside information

![exhibit11p14i0](exhibit11p14i0.jpg)

Security Classification: Open - Status:

Final

4 Relating to our business partners

4.1 Suppliers and Business Partners

Business relationships based on trust and transparency are vital to our business. Our suppliers and business

partners are essential to our ability to do business but can also cause or contribute to harm people and expose us

to reputational, operational and legal risk. We expect our suppliers and business partners to comply with

applicable laws, respect internationally recognised human rights and adhere to ethical standards which are

consistent with our ethical requirements when working for or together with us. We seek to work with others who

share our commitment to ethics and compliance, and we manage risk through in-depth knowledge of our

suppliers, business partners and markets. Equinor will not voluntarily enter into partnerships with anonymously

owned companies.

What this means to you

● Before you establish or amend any business relationship, you must follow our procedures for integrity due

diligence and human rights due diligence.

● Communicate and follow-up regularly and clearly our expectations to our suppliers and business partners.

● Report any misconduct by a supplier or business partner to your leader or any of the other reporting

channels listed in the Code.

Security Classification: Open - Status:

Final

Additional requirements and helpful tools

● Corporate policy CP02- Human rights policy

● WR2988 Integrity due diligence

● WR2452 Joint venture management related to anti-corruption compliance

● GL0349 Guidance on anti-corruption for non Equinor operated joint ventures

● GL0754 Guidance on partnerships with anonymously owned companies

● Integrity due diligence portal

4.2 Intermediaries

Intermediaries are a particular type of business partner and include agents, consultants, lobbyists and others who

act as a link between Equinor and others. The use of intermediaries may pose a particular risk to us, and we

therefore have additional requirements for hiring intermediaries. It is mandatory to perform integrity due diligence

on all intermediaries. The agreed compensation must be proportionate to the service rendered and only paid

against satisfactory documentation of work performed, which must be regularly monitored. The agreement with

the intermediary must be made in writing, describe the true relationship with Equinor and include an obligation to

follow the Code.

What this means to you

● Any intermediary you plan to hire must be subject to integrity due diligence.

● Monitor regularly the work performed by the intermediary to ensure it is in line with the Code.

4.3 Fair Competition

We believe in the benefits of competition, and Equinor will always compete in a fair and ethically justifiable

manner. We will comply with applicable competition and antitrust laws. We will not engage in or tolerate anyone

who engages in anti-competitive behaviour, such as price fixing, bid rigging, market sharing or abuse of market

power.

We participate in legal collaborative projects with other companies and share information required for such

projects. It may be a violation of competition and antitrust rules to receive or share with competitors non-public

commercially sensitive information beyond what is necessary for a legal cooperation. Commercially sensitive

information includes information which may reduce uncertainty about future market conduct, such as prices,

competitive bids, commercial strategies, costs, customers and suppliers.

What this means to you

● Do not enter into anti-competitive agreements or engage in anti-competitive conduct, such as agreeing

with competitors to fix prices or to allocate markets by territory, by products or by customers.

● Be vigilant of situations where non-public commercially sensitive information may be exchanged and

speak out against disclosure of information by others to you. Never share such information with

competitors.

● Competition laws are complex and often require a detailed assessment of facts. If you are in doubt, seek

advice from the legal department.

● Participate in required competition and antitrust compliance training.

Additional requirements and helpful tools

● WR2447 Competition law compliance

● WR1837 Inspections by authorities

● Competition compliance manual

Security Classification: Open - Status:

Final

4.4 Gifts, Hospitality and Expenses

Relationships with our business partners can be built and strengthened through legitimate networking and social

interaction. However, giving or accepting gifts and hospitality may be regarded as corruption in certain situations,

and we have strict limits for when we allow the giving or acceptance of gifts and hospitality.

As a general rule, we do not offer or accept gifts, except for promotional items of minimal value. In a situation

where it would clearly give offence to refuse, the gift may be accepted if it is of reasonable value and handed over

to Equinor immediately. We only offer or accept hospitality where there is a clear business reason for Equinor to

participate and the costs involved are reasonable. We will always pay our own costs related to travel,

accommodation and other related expenses. Except as otherwise stated in the Code, we do not pay travel,

accommodation and other related expenses for others.

What this means to you

● Never offer or accept gifts, except for promotional items of minimal value.

● Before accepting or offering hospitality, ensure that it is in line with our requirements. Written approval

from your leader is required unless the hospitality clearly is acceptable.

● Ask yourself how the acceptance or offer would be perceived by others and never offer or accept anything

that is or could be perceived as an improper advantage.

● Ensure that all acceptance and offering of hospitality are open, transparent and properly documented.

Additional requirements and helpful tools

● GL0537 Offering and accepting gifts, hospitality and expenses

● GL0782 Compliance Guideline on Social Investments

● WR1803 Management of social investment

![exhibit11p17i0](exhibit11p17i0.jpg)

Security Classification: Open - Status:

Final

5 Communities and Environment

5.1 Local Stakeholder Engagement

Stakeholder engagement is a central element of our commitment to create lasting local value.

Timely and meaningful engagement with potentially affected stakeholders, including through appropriate and

effective grievance mechanisms, is a central element of our commitment to assess actual and potential human

rights impacts linked to our activities or business relationships. Where needed, we aim to take appropriate and

mitigating actions. Where we have caused or contributed to adverse human rights impacts, we will provide or

cooperate in providing appropriate remediation.

In our engagement and dialogue with all stakeholders we seek to understand their expectations and explore

opportunities for mutual benefits. Solutions identified must be relevant to local conditions and our business needs,

and comply with our values, policies and local regulations. Our contribution to communities may include direct and

indirect employment, procurement of goods and services, infrastructure development and competence building as

well as social investments.

What this means to you

Security Classification: Open - Status:

Final

● Familiarise yourself with our human rights policy and report any potential or actual negative human rights

impact related to our operations or those of our business partners.

● Through human rights due diligence, systematically assess and address the impact our activities may

have on stakeholders and take this into account when making business decisions, including in relation to

their use of land, water and other natural resources.

● When seeking to apply effective prevention and mitigation actions, ensure that they are addressing

potential impacts fairly and without discriminating to any affected members of the local community.

● Be particularly attentive to those most vulnerable to adverse impacts, including women, children and

indigenous peoples.

● Actively identify opportunities related to our activities that can contribute to local value creation through

local employment, procurement and capacity development.

● Ensure that social contributions are made in compliance with our anti-corruption requirements.

Additional requirements and helpful tools

● Corporate policy CP02- Human rights policy

● FR11 Sustainability

● WR1803 Management of social investment

● WR2297 The rights of indigenous and tribal people

● WR2614 Community grievance mechanisms

● GL0626 Community engagement guidelines

● GL0782 Compliance Guideline on Social Investments

5.2 Environment

We systematically manage our environmental aspects in accordance with good international practices and

principles and have to comply with applicable environmental laws and regulations. Recognising that our activities

may have impacts on the environment, we apply a precautionary approach and the principle of continual

improvement of our environmental performance, aiming to protect nature and support nature conservation and

restoration initiatives. We work actively to limit greenhouse gas emissions from our activities.

What this means to you

● Ensure that the impacts our activities have or may have on the environment are assessed and

communicated.

● Ensure that relevant measures are taken into account when making business decisions, including

application of the mitigation hierarchy (to avoid, minimise, restore and offset potential significant direct

impacts in our projects), and the use of environmentally friendly technologies.

● Contribute actively to efficient use of resources, carbon efficient operations and mitigation of negative

impacts and enhancement of positive impacts on the natural environment.

● Follow up and evaluate results and contribute to continual improvement.

Additional requirements and helpful tools

● Equinor Biodiversity position

5.3 Public Communication

Security Classification: Open - Status:

Final

We believe that open, honest and accurate communication is essential to our integrity and business success. We

will communicate about Equinor in a consistent manner, and only authorised persons may talk to the media,

members of the investment community or make statements on Equinor's behalf on social media. Any private use

of social media must not breach confidentiality obligations and should not compromise Equinor's reputation or

business interests.

What this means to you

● Do not speak on Equinor's behalf unless authorised to do so. Enquiries from the media shall be directed

to corporate communication.

● If you participate in social media, use good judgement and show respect towards your colleagues,

business partners and communities. Be vigilant that participating in social media may represent a security

risk.

Additional requirements and helpful tools

● FR13 Communication

● Social Media Guidelines

5.4 Public Affairs

We will make Equinor's position known on important industry matters through proactive engagement with

government policy makers and other stakeholders, such as the media, civil society and international institutions.

However, we will not make gifts, donations or otherwise support political parties or individual politicians. We may

nevertheless be members of interest organisations relevant for our industry that support political parties or certain

political issues. Any hiring of lobbyists will be in accordance with applicable law and subject to full disclosure to

any external party they wish to influence that the lobbyist represents Equinor.

What this means to you

● Do not use company funds or resources to support any political candidates or party. Never use your

position in Equinor to try to influence any person to make political contributions.

● Ensure that all contracts with lobbyists impose an obligation to disclose to any external party they wish to

influence that the lobbyist represents Equinor.

● If you choose to participate in political activities or give any public contributions, this must be personal and

not linked to Equinor.

5.5 Public Officials

In our business operations or public affairs activities, we often interact with public officials. Many countries have

rules regarding accepted conduct when dealing with public officials, such as prohibiting giving anything of value.

We will never offer or authorise anything of value or payments to public officials unless specifically provided for in

the Code. We can, however, cover the reasonable and legitimate travel, accommodation and other related travel

expenses of public officials when they are related to the promotion or demonstration of our products or services or

the execution of a contract with a government.

What this means to you

● Take particular care when interacting with public officials .

● Never offer or agree to pay travel or accommodation for any public official unless a hosting application

has been completed and properly approved by the Chief Ethics and Compliance Officer and the relevant

EVP.

Additional requirements and helpful tools

● Hosting form for public officials

Security Classification: Open - Status:

Final

www.equinor.com

I, Anders Opedal, certify that:

1. I have reviewed this Annual report on Form 20-F of Equinor ASA;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods

presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in

which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered

by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company's internal control over financial reporting; and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons

performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and

report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company's internal control over financial reporting.

Date: 23 March 2023

By: /s/

*Anders Opedal* 

Name: Anders Opedal

Title: President and Chief Executive Officer

I, Torgrim Reitan, certify that:

1. I have reviewed this Annual report on Form 20-F of Equinor ASA;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods

presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in

which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered

by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company's internal control over financial reporting; and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons

performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and

report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company's internal control over financial reporting.

Date: 23 March 2023

By: /s/ _

*Torgrim Reitan____________* 

___

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer

#### Certification

#### Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

#### (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United

States Code), the undersigned officer of Equinor ASA, a company incorporated under the laws of Norway (the "Company"), hereby

certifies, to such officer's knowledge, that:

The Annual Report on Form 20-F for the year ended 31 December 2022 of the Company (the "Report") fully complies with the

requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and information contained in the Report

fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: 23 March 2023

By: /s/

*Anders Opedal* 

Name: Anders Opedal

Title: President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and

(b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure

document.

A signed original of this written statement required by section 906 has been provided to the Company and will be retained by the

Company and furnished to the Securities and Exchange Commission or its staff upon request.

#### Certification

#### Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

#### (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United

States Code), the undersigned officer of Equinor ASA, a company incorporated under the laws of Norway (the "Company"), hereby

certifies, to such officer's knowledge, that:

The Annual Report on Form 20-F for the year ended 31 December 2022 of the Company (the "Report") fully complies with the

requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and information contained in the Report

fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: 23 March 2023

By: /s/

*Torgrim Reitan* 

Name: Torgrim Reitan

Title: Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and

(b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure

document.

A signed original of this written statement required by section 906 has been provided to the Company and will be retained by the

Company and furnished to the Securities and Exchange Commission or its staff upon request.

#### Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form F-3 No. 333-239808) of Equinor ASA,

(2) Registration Statement (Form F-3 No. 333-239808-01) of Equinor Energy AS,

(3) Registration Statement (Form F-3 No. 333-239808-02) of Equinor US Capital LLC, and

(4) Registration Statement (Form S-8 No. 333-262601) pertaining to the Employee Share Purchase Plan of

Equinor US Holdings Inc

of our reports dated 14 March 2023, with respect to the consolidated financial statements of Equinor ASA and the

effectiveness of internal control over financial reporting of Equinor ASA included in this Annual Report (Form 20-F) of Equinor

ASA for the year ended 31 December 2022.

/s/ Ernst & Young AS

Stavanger, Norway

23 March 2023

#### DeGolyer and MacNaughton
5001 Spring Valley Road

Suite 800 Eas

t

Dallas, Texas 75244

March 20, 2023

Equinor ASA

Forusbeen 50

N-4035 Stavanger

Norway

Ladies and Gentlemen:

We hereby consent to the references to DeGolyer and MacNaughton contained

in the section entitled "Operational Performance; Proved Oil and Gas Reserves;

Preparation of reserves estimates; DeGolyer and MacNaughton report" of the Exhibit

15.5 Oil and Gas Reserves Report to Form 20-F for the year ended December 31,

2022, of Equinor ASA (the Form 20-F), to the inclusion of our report of third party dated

February 21, 2023, concerning our independent evaluation, as of December 31, 2022,

of certain properties in which Equinor ASA has represented it holds an interest (our

Report of Third Party), which is included as an exhibit to the Form 20-F, and to the

incorporation by reference thereof of our Report of Third Party in the Registration

Statements on Form S-8 (File Nos. 333-121382, 333-168426, and 333-262601)

pertaining to the Equinor US Holdings Inc. Employee Share Purchase Plan and in the

Registration Statement on Form F-3 (File No. 333-239808) of Equinor ASA and

Equinor Energy AS.

Very truly yours,

/s/ DeGolyer and MacNaughton

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-

716

#### DeGolyer and MacNaughton
5001 Spring Valley Road

Suite 800 Eas

t

Dallas, Texas 75244

February 21, 2023

Equinor ASA

Forusbeen 50

N-4035 Stavanger

Norway

Ladies and Gentlemen:

Pursuant to your request, this report of third party presents an independent

evaluation, as of December 31, 2022, of the estimated net proved oil, condensate,

liquefied petroleum gas (LPG), and sales gas reserves of certain properties (Table 1)

in which Equinor ASA (Equinor) has represented it holds an interest. This evaluation

was completed on February 21, 2023. Equinor has represented that these properties

account for 100 percent, on a net equivalent barrel basis, of Equinor's net proved

reserves as of December 31, 2022, and that Equinor's estimates of net proved

reserves have been prepared in accordance with the reserves definitions of Rules 4–

10(a)

(1)–(32) of Regulation S–X of the United States Securities and Exchange Commission

(SEC). It is our opinion that the procedures and methodologies employed by Equinor

for the preparation of its proved reserves estimates as of December 31, 2022, comply

with the current requirements of the SEC. We have reviewed information provided to

us by Equinor that it represents to be Equinor's estimates of the net reserves, as of

December 31, 2022, for the same properties as those which we have independently

evaluated. This report was prepared in accordance with guidelines specified in

Item 1202 (a)(8) of Regulation S–K and is to be used for inclusion in certain SEC filings

by Equinor.

Reserves estimated herein are expressed as net reserves as represented by

Equinor and as estimated by DeGolyer and MacNaughton. Gross reserves are defined

as the total estimated petroleum remaining to be produced from these properties after

December 31, 2022. Net reserves are defined as that portion of the gross reserves

attributable to the interests held by Equinor after deducting all interests held by others.

DeGolyer and MacNaughton

Estimates of reserves should be regarded only as estimates that may change

as further production history and additional information become available. Not only are

such estimates based on that information which is currently available, but such

estimates are also subject to the uncertainties inherent in the application of judgmental

factors in interpreting such information.

Information used in the preparation of this report was obtained from Equinor.

In the preparation of this report we have relied, without independent verification, upon

information furnished by Equinor with respect to the property interests being evaluated,

production from such properties, current costs of operation and development, current

prices for production, agreements relating to current and future operations and sale of

production, and various other information and data that were accepted as represented.

A field examination was not considered necessary for the purposes of this report.

#### Definition of Reserves
Petroleum reserves estimated by Equinor and by us included in this report are

classified as proved. Only proved reserves have been evaluated for this report.

Reserves classifications used by Equinor and by us in this report are in accordance

with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC.

Reserves are judged to be economically producible in future years from known

reservoirs under existing economic and operating conditions and assuming

continuation of current regulatory practices using known production methods and

equipment. In the analyses of production-decline curves, reserves were estimated only

to the limit of economic rates of production under existing economic and operating

conditions using prices and costs consistent with the effective date of this report,

including consideration of changes in existing prices provided only by contractual

arrangements but not including escalations based upon future conditions. The

petroleum reserves are classified as follows:

*Proved oil and gas reserves*

– Proved oil and gas reserves are those

quantities of oil and gas, which, by analysis of geoscience and

engineering data, can be estimated with reasonable certainty to be

economically producible—from a given date forward, from known

reservoirs, and under existing economic conditions, operating methods,

and government regulations—prior to the time at which contracts

providing the right to operate expire, unless evidence indicates that

renewal is reasonably certain, regardless of whether deterministic or

probabilistic methods are used for the estimation. The project to extract

the hydrocarbons must have commenced or the operator must be

reasonably certain that it will commence the project within a reasonable

time.

DeGolyer and MacNaughton

(i) The area of the reservoir considered as proved includes:

(A) The area identified by drilling and limited by fluid contacts, if

any, and (B) Adjacent undrilled portions of the reservoir that can,

with reasonable certainty, be judged to be continuous with it and

to contain economically producible oil or gas on the basis of

available geoscience and engineering data.

(ii) In the absence of data on fluid contacts, proved quantities in

a reservoir are limited by the lowest known hydrocarbons (LKH)

as seen in a well penetration unless geoscience, engineering,

or performance data and reliable technology establishes a lower

contact with reasonable certainty.

(iii) Where direct observation from well penetrations has defined

a highest known oil (HKO) elevation and the potential exists for

an associated gas cap, proved oil reserves may be assigned in

the structurally higher portions of the reservoir only if

geoscience, engineering, or performance data and reliable

technology establish the higher contact with reasonable

certainty.

(iv) Reserves which can be produced economically through

application of improved recovery techniques (including, but not

limited to, fluid injection) are included in the proved classification

when:

(A) Successful testing by a pilot project in an area of the

reservoir with properties no more favorable than in the reservoir

as a whole, the operation of an installed program in the reservoir

or an analogous reservoir, or other evidence using reliable

technology establishes the reasonable certainty of the

engineering analysis on which the project or program was

based; and (B) The project has been approved for development

by all necessary parties and entities, including governmental

entities.

(v) Existing economic conditions include prices and costs at

which economic producibility from a reservoir is to be

determined. The price shall be the average price during the

12-month period prior to the ending date of the period covered

by the report, determined as an unweighted arithmetic average

DeGolyer and MacNaughton

of the first-day-of-the-month price for each month within such

period, unless prices are defined by contractual arrangements,

excluding escalations based upon future conditions.

*Developed oil and gas reserves*

– Developed oil and gas reserves are

reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating

methods or in which the cost of the required equipment is

relatively minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure

operational at the time of the reserves estimate if the extraction

is by means not involving a well.

*Undeveloped oil and gas reserves –* 

Undeveloped oil and gas reserves

are reserves of any category that are expected to be recovered from

new wells on undrilled acreage, or from existing wells where a relatively

major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those

directly offsetting development spacing areas that are

reasonably certain of production when drilled, unless evidence

using reliable technology exists that establishes reasonable

certainty of economic producibility at greater distances.

(ii) Undrilled locations can be classified as having undeveloped

reserves only if a development plan has been adopted indicating

that they are scheduled to be drilled within five years, unless the

specific circumstances justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped

reserves be attributable to any acreage for which an application

of fluid injection or other improved recovery technique is

contemplated, unless such techniques have been proved

effective by actual projects in the same reservoir or an

analogous reservoir, as defined in [section 210.4–10 (a)

Definitions], or by other evidence using reliable technology

establishing reasonable certainty.

DeGolyer and MacNaughton

#### Methodology and Procedures
Estimates of reserves were prepared by the use of appropriate geologic,

petroleum engineering, and evaluation principles and techniques that are in

accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X

of the SEC and with practices generally recognized by the petroleum industry as

presented in the publication of the Society of Petroleum Engineers entitled "Standards

Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (revised

June 2019) Approved by the SPE Board on 25 June 2019" and in Monograph 3 and

Monograph 4 published by the Society of Petroleum Evaluation Engineers. The

method or combination of methods used in the analysis of each reservoir was

tempered by experience with similar reservoirs, stage of development, quality and

completeness of basic data, and production history.

Based on the current stage of field development, production performance, the

development plans provided by Equinor, and analyses of areas offsetting existing wells

with test or production data, reserves were classified as proved. The proved

undeveloped reserves estimates were based on opportunities identified in the plans of

development provided by Equinor.

Equinor has represented that its senior management is committed to the

development plans provided by Equinor and that Equinor has the financial capability

to execute the development plans, including the drilling and completion of wells and

the installation of equipment and facilities.

When applicable, the volumetric method was used to estimate the original oil

in place (OOIP) and original gas in place (OGIP). Structure maps were prepared to

delineate each reservoir, and isopach maps were constructed to estimate reservoir

volume. Electrical logs, radioactivity logs, and other available data were used to

prepare these maps as well as to estimate representative values for porosity and water

saturation. When adequate data were available and when circumstances justified,

material-balance and other engineering methods were used to estimate OOIP and

OGIP.

For those fields where the volumetric method was applied, estimates of ultimate

recovery were obtained after applying recovery factors to OOIP and OGIP. These

recovery factors were based on consideration of the type of energy inherent in the

reservoirs, analyses of the petroleum, the structural positions of the reservoirs, and the

production histories. When applicable, material-balance and other engineering

methods were used to estimate recovery factors based on an analysis of reservoir

pressure and reservoir fluid properties.

DeGolyer and MacNaughton

For depletion-type reservoirs or those whose performance disclosed a reliable

decline in producing-rate trends or other diagnostic characteristics, reserves were

estimated by the application of appropriate decline-curve or other performance

relationships. In the analyses of production decline curves, reserves were estimated

only to the limits of economic production as defined under the Definition of Reserves

heading of this report or to the limit of production licenses as appropriate.

For the evaluation of unconventional reservoirs, a performance-based

methodology integrating the appropriate geology and petroleum engineering data was

utilized for this report. Performance-based methodology primarily includes

(1) production diagnostics, (2) decline-curve analysis, and (3) model-based analysis (if

necessary, based on availability of data). Production diagnostics include data quality

control, identification of flow regimes, and characteristic well performance behavior.

These analyses were performed for all well groupings (or type-curve areas).

Characteristic rate-decline profiles from diagnostic interpretation were

translated to modified hyperbolic rate profiles, including one or multiple b-exponent

values followed by an exponential decline. Based on the availability of data,

model-based analysis may be integrated to evaluate long-term decline behavior, the

effect of dynamic reservoir and fracture parameters on well performance, and complex

situations sourced by the nature of unconventional reservoirs.

In certain cases, reserves were estimated by incorporating elements of analogy

with similar wells or reservoirs for which more complete data were available.

Data provided by Equinor from wells drilled through October 31, 2022, and

made available for this evaluation were used to prepare the reserves estimates herein.

These reserves estimates were based on consideration of monthly production data

available for certain properties only through October 2022. Estimated cumulative

production, as of December 31, 2022, was deducted from the estimated gross ultimate

recovery to estimate gross reserves. This required that production be estimated for up

to 2 months.

Oil and condensate reserves estimated herein are those to be recovered by

normal field separation. LPG reserves estimated herein consist primarily of propane

and butane fractions and are the result of low-temperature plant processing. Oil,

condensate, and LPG reserves included in this report are expressed in millions of

barrels (10

bbl). In these estimates, 1 barrel equals 42 United States gallons.

Gas quantities estimated herein are expressed as sales gas. Sales gas is

defined as the total gas to be produced from the reservoirs after reduction for shrinkage

from field or platform handling, separation, processing (including liquid removal), fuel

DeGolyer and MacNaughton

usage, flaring, reinjection, pipeline losses, and onshore processing measured at the

point of delivery. Gas reserves estimated herein are reported as sales gas. Gas

quantities are expressed at a temperature base of 15.6 degrees Celsius (°C) and at a

pressure base of 14.696 pounds per square inch absolute (psia). Gas quantities

included in this report are expressed in billions of cubic feet (10

ft

3).

Gas quantities are identified by the type of reservoir from which the gas will be

produced. Nonassociated gas is gas at initial reservoir conditions with no oil present

in the reservoir. Associated gas includes both gas-cap gas and solution gas. Gas-cap

gas is gas at initial reservoir conditions and is in communication with an underlying oil

zone. Solution gas is gas dissolved in oil at initial reservoir conditions. The gas

quantities estimated herein consist of both associated and nonassociated gas

reserves.

At the request of Equinor, sales gas reserves estimated herein were converted

to oil equivalent using an energy equivalent factor of 5,612.1 cubic feet of gas per

1 barrel of oil equivalent.

#### Primary Economic Assumptions
This report has been prepared using initial prices, expenses, and costs

provided by Equinor in United States dollars (U.S.$). Future prices were estimated

using guidelines established by the SEC and the Financial Accounting Standards

Board (FASB). The following economic assumptions were used for estimating the

reserves reported herein:

*Oil, Condensate, and LPG Prices* 

Equinor has represented that the oil, condensate, and LPG

prices were based on a reference price, calculated as the

unweighted arithmetic average of the first-day-of-the-month

price for each month within the 12-month period prior to the end

of the reporting period, unless prices are defined by contractual

agreements. Equinor supplied differentials by field to a Brent oil

reference price of U.S.$101.24 per barrel and the prices were

held constant thereafter. The volume-weighted average prices

attributable to the estimated proved reserves over the lives of

the properties were U.S.$100.30 per barrel of oil, U.S.$90.79

per barrel of condensate, and U.S.$56.23 per barrel of LPG.

*Gas Prices* 

DeGolyer and MacNaughton

Equinor has also represented that the gas prices were based on

a reference price, calculated as the unweighted arithmetic

average of the first-day-of-the-month price for each month within

the 12-month period prior to the end of the reporting period,

unless prices are defined by contractual agreements. A

significant quantity of the gas sold by Equinor is subject to

contract prices, and the range of such prices is varied. Where

appropriate, Equinor supplied differentials by field to a Title

Transfer Facility gas price index reference price of U.S.$36.35

per million Btu and the prices were held constant thereafter. The

volume-weighted average price attributable to the estimated

proved reserves over the lives of the properties was U.S.$30.66

per million Btu of gas.

*Operating Expenses, Capital Costs, and Abandonment Costs* 

Estimates of operating expenses and future capital

expenditures, provided by Equinor and based on existing

economic conditions, were held constant for the lives of the

properties. In certain cases, future expenditures, either higher

or lower than current expenditures, may have been used

because of anticipated changes in operating conditions, but no

general escalation that might result from inflation was applied.

Abandonment costs, which are those costs associated with the

removal of equipment, plugging of wells, and reclamation and

restoration associated with the abandonment, were provided by

Equinor for all properties and were not adjusted for inflation.

Abandonment costs herein are inclusive of costs incurred for

existing wells and facilities as well as those for future

development associated with the proved reserves estimated

herein. Operating expenses, capital costs, and abandonment

costs were considered in determining the economic viability of

the undeveloped reserves estimated herein.

In our opinion, the information relating to estimated proved reserves of oil,

condensate, LPG, and sales gas contained in this report has been prepared in

accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and

932-235-50-9 of the Accounting Standards Update 932-235-50,

*Extractive Industries* 

*– Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures*

(January 2010) of the FASB and Rules 4–10(a) (1)–(32) of Regulation S–X and

Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the

DeGolyer and MacNaughton

SEC; provided, however, that estimates of proved developed and proved undeveloped

reserves are not presented at the beginning of the year.

To the extent the above-enumerated rules, regulations, and statements require

determinations of an accounting or legal nature, we, as engineers, are necessarily

unable to express an opinion as to whether the above-described information is in

accordance therewith or sufficient therefor.

DeGolyer and MacNaughton

#### Summary of Conclusions
DeGolyer and MacNaughton has performed an independent evaluation of the

extent of the estimated net proved oil, condensate, LPG, and sales gas reserves of

certain properties in which Equinor has represented it holds an interest. Equinor has

represented that its estimated net proved reserves attributable to the evaluated

properties were based on the definition of proved reserves of the SEC. Equinor has

represented that its estimates of the net proved reserves, as of December 31, 2022,

attributable to these properties, which represent 100 percent of Equinor's reserves on

a net equivalent basis, are summarized as follows, expressed in millions of barrels

(10

bbl), billions of cubic feet (10

ft

3), and millions of barrels of oil equivalent (10

boe):

#### Estimated by Equinor

#### Net Proved Reserves as of December 31, 2022

#### Oil

#### (10

#### 6

#### bbl)

#### Condensate

#### (10

#### 6

#### bbl)

#### LPG

#### (10

#### 6

#### bbl)

#### Sales

#### Gas

#### (10

#### 9

#### ft

#### 3

####)

#### Oil

#### Equivalent

#### (10

#### 6

#### boe)
Total Proved

2,211.1

36.7 280.0 14,946.1

5,191.0

Note: Sales gas reserves estimated herein were converted to oil equivalent using an

energy equivalent factor of 5,612.1 cubic feet of gas per 1 barrel of oil equivalent.

DeGolyer and MacNaughton's independent estimates of Equinor's net proved

reserves, as of December 31, 2022, attributable to the evaluated properties were

based on the definition of proved reserves of the SEC and are summarized as follows,

expressed in millions of barrels (10

bbl), billions of cubic feet (10

ft

3), and millions of

barrels of oil equivalent (10

boe):

#### Estimated by DeGolyer and MacNaughton

#### Net Proved Reserves as of December 31, 2022

#### Oil

#### (10

#### 6

#### bbl)

#### Condensate

#### (10

#### 6

#### bbl)

#### LPG

#### (10

#### 6

#### bbl)

#### Sales

#### Gas

#### (10

#### 9

#### ft

#### 3

####)

#### Oil

#### Equivalent

#### (10

#### 6

#### boe)
Total Proved

2227.1 84.0 289.2 15,252.1

5,318.0

Note: Sales gas reserves estimated herein were converted to oil equivalent using an

energy equivalent factor of 5,612.1 cubic feet of gas per 1 barrel of oil equivalent.

DeGolyer and MacNaughton

Regnald A. Boles, P.E.

Executive Vice President

DeGolyer and MacNaughton

In comparing the detailed net proved reserves estimates prepared by DeGolyer

and MacNaughton and by Equinor, differences have been found, both positive and

negative, resulting in an aggregate difference of 2.4 percent when compared on the

basis of net equivalent barrels. It is DeGolyer and MacNaughton's opinion that the net

proved reserves estimates prepared by Equinor on the properties evaluated and

referred to above, when compared on the basis of net equivalent barrels, in aggregate,

do not differ materially from those prepared by DeGolyer and MacNaughton.

While the oil and gas industry may be subject to regulatory changes from time

to time that could affect an industry participant's ability to recover its reserves, we are

not aware of any such governmental actions which would restrict the recovery of the

December 31, 2022, estimated reserves.

DeGolyer and MacNaughton is an independent petroleum engineering

consulting firm that has been providing petroleum consulting services throughout the

world since 1936. DeGolyer and MacNaughton does not have any financial interest,

including stock ownership, in Equinor. Our fees were not contingent on the results of

our evaluation. This letter report has been prepared at the request of Equinor.

DeGolyer and MacNaughton has used all assumptions, data, procedures, and

methods that it considers necessary and appropriate to prepare this report.

Submitted,

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-

716

DeGolyer and MacNaughton

Regnald A. Boles, P.E.

Executive Vice President

DeGolyer and MacNaughton

#### CERTIFICATE of QUALIFICATION
I, Regnald A. Boles, Petroleum Engineer with DeGolyer and MacNaughton,

5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

1. That I am an Executive Vice President with DeGolyer and MacNaughton, which

firm did prepare the report of third party addressed to Equinor dated

February 21, 2023, and that I, as Executive Vice President, was responsible

for the preparation of this report of third party.

2. That I attended Texas A&M University, and that I graduated with a Bachelor of

Science degree in Petroleum Engineering in the year 1983; that I am a

Registered Professional Engineer in the State of Texas; that I am a member of

the Society of Petroleum Engineers; that I am a member of the European

Association of Geoscientists and Engineers; and that I have in excess of

39 years of experience in oil and gas reservoir studies and evaluations.

DeGolyer and MacNaughton

#### TABLE 1

#### Country

#### Field
Algeria

In Amenas

In Salah

Angola

Acacia

Cravo

Dalia

Girassol

Kizomba A

Kizomba B

Lirio

Marte

Mondo

Orquidea-Violeta

Perpetua-Hortensia

Plutao

Rosa

Saturno

Saxi-Batuque

Venus

Zinia

Argentina

Bandurria Sur

Azerbaijan

Azeri-Chirag-Gunashli

Azeri-Chirag-Gunashli-ACE

Brazil

Bacalhau Concession

Bacalhau PSA

Peregrino

Roncador

Canada

Hebron

Hibernia

Hibernia Southern Extension

Republic of Ireland

Corrib

Libya

Mabruk

Murzuq

Nigeria

Agbami

DeGolyer and MacNaughton

#### TABLE 1
–

(Continued)

#### Country

#### Field
Norway

Aasta Hansteen

Aerfugl North

Alve

Andvare

Asgard

Asterix

Bauge

Berling

Blabjorn

Breidablikk

Byrding

Enoch

Fram

Fram H-North

Fulla

Gimle

Gina Krog

Goliat

Grane

Gudrun

Gullfaks Area

Gungne

Halten East

Hanz

Heidrun

Hyme

Idun North

Ivar Aasen

Johan Castberg

Johan Sverdrup

Johan Sverdrup Phase 2

Krafla

Kristin

Kristin South Phase 1

Kvitebjorn

Lille Prinsen

Martin Linge

Marulk

Mikkel

Morvin

Njord

Norne

Ormen Lange

Ormen Lange Phase 3

Orn

Oseberg

Oseberg East

Oseberg South

Sigyn

Skarv

#### TABLE 1
–

(Continued)

#### Country

#### Field
DeGolyer and MacNaughton

Norway –

(Continued)

Skuld

Sleipner East

Sleipner West

Snohvit

Snorre

Statfjord

Statfjord East

Statfjord North

Svalin

Sygna

Tordis

Trestakk

Troll

Tune

Tyrihans

Urd

Utgard

Valemon

Verdande

Veslefrikk

Vigdis

Visund

Visund South

United Kingdom

Barnacle

Mariner

Statfjord

United States

APB North Non-Op

APB Op

APB South Non-Op

Big Foot

Caesar-Tonga

Heidelberg

Jack

Julia

St. Malo

Stampede

Tahiti

Titan

Vito

Equinor, Annual Report on Form 20-F 2022 1

exhibit154p20

# 2022 Integrated Annual Report

2 Equinor, Annual Report on Form 20-F 2022

![Twitter icon]() twitter154p30

## We are Equinor

Our ambition is to be a leading company in the energy transition. We aim to create value through the opportunities the energy transition brings, breaking new industrial ground by building on our 50 years of experience.

We energise the lives of 170 million people.

Every day.

Equinor, Annual Report on Form 20-F 2022 3

exhibit154p4i0

Equinor is an energy company, the largest oil and gas operator in Norway, one of the world's largest offshore operators, and a growing force in renewables and low carbon solutions. Present in around 30 countries with approximately 22,000 employees, we provide reliable energy for societies worldwide and aim to be a leading company in the energy transition with the ambition to become a net-zero company by 2050.

Key figures 2022.

2,039 mboe

per day
- oil and gas equity production

1,649 GWh

Renewable power generation,
Equinor share

![img-0.jpeg](img-0.jpeg)

2,661 GWh

Total power generation,
Equinor share

0.4

SIF - serious incident
frequency
(per million hours worked)

+8% gas production

from the NCS
Gas production increased
in response to the energy
security crisis in Europe

2.5

TRIF - total recordable
incident frequency
(per million hours worked)

Always safe,
high value,
low carbon

6.9

CO2 intensity
for the upstream oil and gas portfolio
(operated 100%, kg CO2 per box)

USD 52.2

billion
current income tax
expense

USD 13.7

billion
Capital distribution
including dividends
and share buy-backs

21,936

Employees
across around
30 countries

4 Equinor, Annual Report on Form 20-F 2022

Equinor, Annual Report on Form 20-F 2022 5

| (in USD million) | 2022 | 2021 |
| --- | --- | --- |
| Total revenues and other income | 100,806 | 90,924 |
| Net operating income | 78,811 | 33,663 |
| Net income | 28,744 | 8,576 |
| Effective tax rate | 63.4% | 72.8% |
| Adjusted earnings* | 74,940 | 33,486 |
| Adjusted earnings after tax* | 22,691 | 10,042 |
| Free cash flow before capital distribution (in USD billion)* | 32.1 | 27.1 |
| Return on capital employed, adjusted* | 55.2% | 22.7% |

Key Figures - Segment performance

| Financial information | E&P Norway |  | E&P International |  | E&P USA |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Total revenue and other income | 75,930 | 39,386 | 7,431 | 5,566 | 5,523 | 4,149 |
| Total operating expenses | 8,315 | 8,915 | 4,183 | 5,237 | 1,501 | 2,998 |
| Net operating income | 67,614 | 30,471 | 3,248 | 329 | 4,022 | 1,150 |
| Adjusted earnings/(loss)* | 66,260 | 29,099 | 3,806 | 2,928 | 2,957 | 1,297 |
| Additions to PP&E, intangibles and equity accounted investments | 4,922 | 4,943 | 2,623 | 1,834 | 764 | 690 |
| Operational information | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| E&P equity liquid and gas production (mboe/day) | 1,387 | 1,364 | 328 | 342 | 324 | 373 |
| E&P entitlement liquid and gas production (mboe/day) | 1,387 | 1,364 | 235 | 248 | 279 | 321 |
| Average liquids price (USD/bbl) | 97.5 | 67.6 | 92.0 | 67.6 | 81.0 | 58.3 |
| Average internal gas price (USD/mmbtu) | 31.22 | 14.43 |  |  | 5.55 | 2.89 |

| Financial information | MMP |  | REN |  |
| --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2022 | 2021 |
| Total revenue and other income | 148,105 | 87,393 | 185 | 1,411 |
| Total operating expenses | 144,493 | 86,230 | 269 | 168 |
| Net operating income | 3,612 | 1,163 | (84) | 1,245 |
| Adjusted earnings/(loss)* | 2,253 | 1,424 | (184) | (138) |
| Additions to PP&E, intangibles and equity accounted investments | 1,212 | 517 | 298 | 458 |
| Operational information | 2022 | 2021 | 2022 | 2021 |
| Liquids sales volumes (mmbbl) | 746.1 | 758.4 |  |  |
| Natural gas sales Equinor (bcm) | 63.3 | 61.0 |  |  |
| Natural gas entitlement sales Equinor (bcm) | 56.1 | 54.0 |  |  |
| Power generation (GWh) Equinor share | 1,012 |  | 1,641 | 1,562 |

* For items marked with an asterisk throughout this report, see section 5.8 Use and reconciliation of non-GAAP financial measures.

6 Equinor, Annual Report on Form 20-F 2022

![book icon]() **book** 154p7i0

## Message from the chair and CEO

Equinor's purpose is turning natural resources into energy for people, and progress for society. 2022 was a year that demonstrated how important and valuable energy is to society. The invasion of Ukraine and Russia's weaponisation of energy brought a deep crisis to a system already in imbalance. It became apparent that security of supply in Europe rests on reliable access to natural gas. The war continues to impact society and people's lives. As part of an aligned response to the invasion, Equinor decided on 27 February 2022 to exit Russia.

During last year, the effects of global climate change proved the strong need to act on the goals in the Paris agreement. The energy sector must innovate to cut emissions and create low-carbon energy systems. We must accelerate investments in renewables, energy efficiency, and in low-carbon solutions to decarbonise industry and society. But to safeguard a just and inclusive change of the energy system, we must secure access to affordable and reliable energy. In this context, Equinor is well positioned, as we focus on providing the energy the world needs while reducing emissions from our own operations and investing in the necessary systemic change towards net zero.

Geopolitical developments call for a balanced energy transition. More investments in energy production and infrastructure are needed to reduce the cost of energy, and security of supply and decarbonisation of the sector will be required. Enabling such a transition calls for longevity and stability of frame conditions. Even within the most ambitious goals of the Paris agreement and the net-zero scenario of the International Energy Agency, there will still be a need for oil and gas in the 2050 energy mix. A substantial part of the remaining demand will stem from the need for feedstock for industry and consumer goods to a global population of around 10 billion people. Low-carbon hydrogen produced from gas has the potential to become an important source of energy in the future. Equinor's Energy transition plan, supported by 97.5 percent of our shareholders at the annual general meeting in May 2022,

Equinor, Annual Report on Form 20-F 2022 7

outlines how Equinor will aim to deliver on its ambition to reach net zero by 2050.

In 2022, when it was more important than ever, people working for Equinor stepped up to deliver safe, secure, and reliable production with low emissions. The serious incident frequency for the company in 2022 was 0.4 per million hours worked, a slight improvement from the previous year, and the lowest frequency ever recorded. We progressed our emissions reduction (scope 1 and 2) by reaching a decline of 31 percent since 2015, taking us towards our ambition of net 50 percent reduction by 2030. In 2022, we also signed the world's first commercial agreement on cross-border CO$_{2}$ transportation and storage together with the joint venture partners in the Northern Lights project.

During the year, we have reached key milestones to deliver on our strategy through strong project execution. Johan Sverdrup phase 2 on the Norwegian continental shelf started production, adding barrels to a world-class oil field and making our portfolio even more robust. Peregrino phase 2 in Brazil came on stream in October, adding 250-300 million barrels while halving expected CO$_{2}$ emissions per barrel over the field's remaining lifetime. We generated first power at Hywind Tampen, the world's first floating wind farm to power offshore oil and gas platforms. Further, we matured our renewables project portfolio, and won new offshore wind leases. We aim to emerge as a leading energy player in selected international markets.

Together with partners, suppliers, and authorities, we managed to increase our gas supply to Europe by 8 percent compared to 2021. In total we produced around 2 million boe per day, and 2.7 terawatt hours of power. The CO$_{2}$ intensity of our production ended at 6.9 kg CO$_{2}$ per boe, far below the global average. Our unit production cost for oil and gas was USD 6 per barrel, confirming continued cost control. With cost inflation and continued supply chain disruption, we focus on maintaining cost competitiveness through the cycles.

Against the backdrop of the energy crisis in Europe natural gas prices rose to levels previously unseen. Our performance and focus on high production and stable delivery of oil and gas throughout the year resulted in high net operating income of USD 79 billion. This enabled us to maintain competitive shareholder returns, increasing the dividends and share buybacks during the year. At the capital markets update in February 2023, we announced a step-up in the capital distribution. We proposed a 50 percent increase in the ordinary cash dividend for the fourth quarter, to 30 cents per share. In combination with extraordinary dividend and share buy-back, we expect a total distribution in 2023 of USD 17 billion. In 2022, Equinor also contributed with USD 42.8 billion in taxes from operations on the Norwegian continental shelf. After costs, taxes, and capital distribution our free cash flow$^{8}$ ended at USD 23.4 billion.

Equinor's strong performance and results put the company in a robust financial position. We continue to optimise the oil and gas portfolio, accelerate renewables, and develop low-carbon solutions to deliver on our strategy. The strong cash flow from our oil and gas business together with our robust balance sheet enable us to continue investing and innovating. We aim to develop and bundle energy services and products, build new value chains, and invest in infrastructure projects, while delivering healthy and competitive returns to our shareholders. With our gas reserves and existing infrastructure, we are uniquely positioned to develop low carbon value chains. In collaboration with governments, industry, and customers, we aim to build markets for hydrogen and carbon capture and storage to achieve necessary scale. Our strategy and portfolio of producing assets and projects position us well to be a leading company in the energy transition.

Equinor is in a strong position to create value in the energy transition, by providing affordable, low carbon and secure energy. In 2030 we aim to produce around 2 million barrels of oil and gas per day, and 35-60 TWh of power from renewables annually. In addition, we are developing capacity for energy storage through batteries and green hydrogen, as well as blue hydrogen and carbon transport and storage.

We would like to express appreciation of our employees' strong performance under extraordinary circumstances in 2022. We would also like to thank Equinor's shareholders for their continued investment, and our stakeholders for a strong commitment.

Jon Erik Reinhardsen, chair of the board

Anders Opedal, president and CEO

8 Equinor, Annual Report on Form 20-F 2022

# Table of contents

| Introduction | Reporting segment performance |
| --- | --- |
| We are Equinor | 3.1 Optimised oil and gas |
| Key figures | 3.1.1 E&P Norway |
| Message from the chair and CEO | 3.1.2 E&P International |
| About the report | 3.1.3 E&P USA |
| Equinor in 2022 | 3.2 High-value growth in renewables (REN) |
| Progress on our Energy transition plan | 3.3 Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions |
| About Equinor and our strategy | 3.4 Other group |
| 1.1 This is Equinor | Financial statements and notes |
| 1.2 Our history | 4.1 Consolidated financial statements of the Equinor group |
| 1.3 Our business | 4.2 Parent company financial statements |
| 1.4 Equinor's market perspective | Additional information |
| 1.5 Equinor's strategy | 5.1 Board statement on corporate governance |
| 1.6 Capital and liquidity management | 5.2 Risk factors |
| 1.7 Sustainability at Equinor | 5.3 Shareholder information |
| 1.8 Governance and risk management | 5.4 EU taxonomy for sustainable activities |
| 1.9 Our people - To get there. Together | 5.5 Production per field |
| 1.10 External relations | 5.6 Additional sustainability information |
| Enterprise level performance | 5.7 Statements on this report incl. independent auditor reports |
| Performance 2022 | 5.8 Use and reconciliation of non-GAAP financial measures |
| 2.1 Always safe | 5.9 Terms and abbreviations |
| 2.1.1 Safe and secure operations | 5.10 Forward-looking statements |
| 2.1.2 Protecting nature |  |
| 2.1.3 Tackling inequality - Human rights |  |
| 2.1.4 Tackling inequality - Diversity and inclusion |  |
| 2.2 High value |  |
| Group analysis |  |
| 2.2.1 Efficient and predictable operations |  |
| 2.2.2 Profitable portfolio |  |
| 2.2.3 Value creation for society |  |
| 2.2.4 Integrity and anti-corruption |  |
| 2.3 Low carbon |  |
| 2.3.1 Net zero pathway |  |
| 2.3.2 Emissions reduction |  |

Equinor, Annual Report on Form 20-F 2022 9

# About the report

## Equinor publishes an Integrated annual report for 2022

Equinor has the for the full year of 2022 released an Integrated annual report, which combines financial and sustainability reporting into a single document. This integration acknowledges the increasing importance of sustainability issues to the company's operational and financial performance and is in accordance with the expectations of our stakeholders. Furthermore, this format aligns with external frameworks such as the Taskforce on Climate-related Financial Disclosure (TCFD) and upcoming requirements from the European Union (EU) under the Corporate Sustainability Reporting Directive (CSRD).

### This report presents the

- Board of director's report (Chapters 0-3 and Chapter 5 excluding sections 5.4, 5.6, 5.9, 5.10)
- Consolidated financial statements of the Equinor group (section 4.1)
- Parent company financial statements of Equinor ASA (section 4.2) according to the Norwegian Accounting Act of 1998
- Board statement on corporate governance according to The Norwegian Code of Practice for Corporate Governance (section 5.1)
- The company's sustainability reporting, prepared in accordance with the Global Reporting Initiative (GRI) Standards.
- Communication on Progress to the UN Global Compact (advanced reporting level)

### Other 2022 Reporting published on equinor.com/reports

- Annual report on Form 20-F
- Remuneration report, incl. 2021 Remuneration policy
- Payments to governments
- Oil and gas reserves report
- Human rights statement
- GRI and WEF index
- UK modern slavery statement
- Equinor datahub (ESG reporting centre)

This document constitutes the Statutory annual report in accordance with Norwegian requirements for Equinor ASA for the year ended 31 December 2022. The Integrated annual report is filed with the Norwegian Register of company accounts. Further information on the boundary conditions for sustainability data can be found in section 5.6 Additional sustainability information.

This document should be read in conjunction with the cautionary statement in section 5.10 Forward-looking statements.

The Integrated annual report may be downloaded from Equinor's website at www.equinor.com/reports. References in this document or other documents to Equinor's website are included as an aid to their location and are not incorporated by reference into this document.

10 Equinor, Annual Report on Form 20-F 2022

![redacted]() eha0a154p31d

The management of financial assets and liabilities takes into consideration funding sources, the maturity profile of long-term debt, interest rate risk, currency risk and available liquid assets. In addition, interest rate derivatives, primarily interest rate swaps, are used to manage the interest rate risk of the long-term debt portfolio.

As of 31 December 2022, Equinor had a long-term credit rating of Aa2 (Moody's Investors Service) and AA- (Standard & Poor's Global Ratings), including an uplift due to state ownership (two notches from Moody's Investors Service and one notch from Standard & Poor's Global Ratings compared to their respective stand-alone credit rating assessments of Equinor). This rating is well above our rating target and ensures sufficient predictability when it comes to funding access at attractive terms and conditions.

#### **Liquidity management**

Equinor diversifies its cash investments across a range of financial instruments and counterparties to avoid concentrating risk in any one type of investment or any single country. As of 31 December 2022, approximately 25% of Equinor's liquid assets were held in USD-denominated assets, 26% in NOK, 36% in EUR, 7% in SEK, 3% in DKK and 3% in GBP before the effect of currency swaps and forward contracts. Approximately 31% of Equinor's liquid assets were held in time deposits, 37% in treasury bills and commercial papers, 11% in corporate bonds, 7% in money market funds and 0% in current accounts. As of 31 December 2022, approximately 14% of Equinor's liquid assets were classified as restricted cash (including collateral deposits).

Equinor, Annual Report on Form 20-F 2022 31

## 1.7 Sustainability at Equinor

To be sustainable, the energy transition as well as being economically viable requires simultaneously providing energy with lower emissions whilst also addressing the unprecedented loss of nature and biodiversity and the need for a just, inclusive, and transparent transition. The interconnectivity and inter-dependency between these issues further require governments, civil society, and private sector entities such as Equinor to adopt integrated and holistic approaches. The way Equinor responds to these challenges is fundamental to our strategy and delivering on our purpose.

In 2022, Equinor made a strategic decision to further integrate sustainability priorities into the strategy and management of the company. We defined nine financial, operational, and sustainability-related topics that are critical to achieving our strategy, and we set ambitions for each topic to measure and report our progress to the board and our stakeholders in a coherent way (see chapter 2 for further details). From a sustainability perspective, Equinor has three overarching priorities: (i) Net zero by 2050; (ii) Evolving from a 'do no harm' principle to a nature-positive contribution; and (iii) Ensuring a just transition. Good governance and transparency are key enablers.

At both a strategic and operational level, we seek to embed these priorities into relevant governance, risk management and assurance, and decision-making processes. Alongside addressing these priorities in our own operations and projects, we seek to influence our partners and increasingly recognise the importance of understanding and managing these issues throughout our supply chain. We further recognise that external dialogue and collaboration are key to understanding and ensuring a relevant and long-lasting contribution.

The effectiveness of our sustainability management approach is regularly evaluated through performance reviews at several levels, including the board of directors (BoD), the BoD's safety, sustainability and ethics committee (SSEC), the corporate executive committee (CEC), and by corporate functions and business areas. Internal and external audits, verifications and self-assessments constitute key assurance elements of our management approach. We conduct internal and external benchmarking and participate in external performance ratings for the same purpose.

*'Equinor aims to support sustainable development through contributing to the energy transition whilst also addressing biodiversity loss and the need for a just transition.' Anders Opedal, CEO of Equinor.*

Equinor supports the UN SDGs and shares the view that business has a key role to play in delivering on and contributing to the goals. Equinor supports all the 17 SDGs and contributes especially to the following six goals: quality education, affordable and clean energy, decent work and economic growth, climate action, life below water, and partnerships for the goals.

Our sustainability reporting is prepared in accordance with the Global Reporting Initiative (GRI) Standards (2021). The information provided is also aligned with the World Economic Forum Stakeholder Capitalism reporting metrics. The report, along with its referenced information, forms Equinor's Communication on Progress (CoP) to the United Nations Global Compact (UNGC).

In alignment with industry practice and regulatory requirements, we report safety and environmental data under our operational control (100% basis), including operations where Equinor is a technical service provider. Greenhouse gas (GHG) emissions data is reported on both an equity and operational control basis. Economic data is reported on an equity share basis, and workforce data covers employees in our direct employment. Human rights data is collected from operated and non-operated assets. Our transparency act disclosures can be found at equinor.com/reports (ESG reporting centre). For more information about reporting boundaries, see section 5.6 Additional sustainability information. For additional data supporting the report, please refer to Equinor's sustainability data hub at equinor.com.

Relevant sections in Chapter 2 provide further specific information on our sustainability-related material topics, management approach and performance in 2022. Further information on the independent assurance for these topics is provided in sections 5.6 Additional sustainability information and 5.7 Statements on this report, including independent auditor reports.

32 Equinor, Annual Report on Form 20-F 2022

## 1.8 Governance and risk management

### Corporate governance

Corporate governance guides the work of Equinor's governing bodies, our management teams, and individuals, and it safeguards the shareholders' and other stakeholders' long-term trust in the company. Our corporate governance framework and processes are formed to promote transparency and accountability in decision-making and day-to-day operations.

As a public limited company with shares listed in Oslo and New York, Equinor adheres to relevant regulations and applicable corporate governance codes, including the Norwegian Code of Practice for Corporate Governance (the Code of Practice). Further details on Equinor's compliance or explanations of possible deviations with this Code of Practice can be found in section 5.1, Board statement on corporate governance.

### Governing bodies

![img-0.jpeg](img-0.jpeg)

The board of directors (BoD) focuses on maintaining a high standard of corporate governance. Good corporate governance is a prerequisite for a sound and sustainable company, and our corporate governance is based on openness and equal treatment of shareholders. Governing structures and controls help to ensure that we run our business in a justifiable and profitable manner for the benefit of employees, shareholders, partners, customers and society.

The BoD has the overriding responsibility for supervising Equinor's management and operations and establishing control systems. The work of the BoD is based on its rules of procedures and applicable legislation describing its responsibility, duties and administrative procedures. It has three sub-committees that act as preparatory bodies:

- **The audit committee (BAC)** assists in the exercise of the BoD's control responsibilities in connection with risk management, internal control and financial reporting.
- **The safety, sustainability, and ethics committee (SSEC)** assist the BoD in reviewing the practices and performance of the company regarding safety, security, ethics, sustainability and climate.
- **The compensation and executive development committee (BCC)** assists the BoD in matters relating to management compensation and leadership development, hereunder terms and conditions of employment for the CEO, and on the principles and strategy for compensation of leading executives in Equinor.

Equinor's corporate assembly consists of 18 members, 12 which are nominated by the nomination committee and elected by the general meeting. They represent a broad cross-section of the company's shareholders and stakeholders. Six members and three observers are elected by and among our employees in Equinor ASA or a subsidiary in Norway. One of the main duties of the corporate assembly is to elect the company's BoD. Further details on the governing bodies in Equinor is set out in section 5.1 Board statement on corporate governance.

Equinor, Annual Report on Form 20-F 2022 33

34 Equinor, Annual Report on Form 20-F 2022

# **Board of directors**

Equinor's board consists of 11 members.

The board members have experience from oil, gas, renewables, shipping, telecom, Norwegian defence forces and environmental and sustainability work. The work of the board is set out in section 5.1 Board statement on corporate governance.

![red square icon]() 1vnhb1154p35i0

$^{1}$ Resigned from his position as member of the board of directors in Equinor ASA with effect as of 16 March 2023.

Equinor, Annual Report on Form 20-F 2022 35

# **Corporate executive committee**

The president and chief executive officer (CEO) has the overall responsibility for day-to-day operations in Equinor. The CEO also appoints the corporate executive committee (CEC), which considers proposals for strategy, goals, financial statements, as well as important investments prior to submission to the BoD.

exhibit154p36/0

36 Equinor, Annual Report on Form 20-F 2022

Please see section 5.1 Board statement on corporate governance for a comprehensive account of our corporate governance framework, functions, and processes with references to The Norwegian Code of Practice for Corporate Governance.

#### **Remuneration of the board of directors**

The remuneration of the board of directors is decided by the corporate assembly annually, following a recommendation from the nomination committee. Remuneration for board members is not linked to performance, and board members do not receive any shares or similar as part of their remuneration. The board members generally receive an annual fixed fee. Deputy members, who are only elected for employee-elected board members, receive remuneration per meeting attended. The employee-elected members of the board receive the same remuneration as the shareholder-elected members.

#### **Remuneration of the corporate executive committee**

The board of directors is responsible for preparing and implementing a remuneration policy for the members of the CEC. The policy is effective for a period of four years, subject to any proposed material changes by the board of directors requiring adoption by the annual general meeting before the four-year term concludes.

The policy shall contribute to attracting and retaining executives and motivate them to drive the success of the company. A key principle for Equinor's remuneration policy is moderation. The reward should be competitive, but not market-leading, and aligned with the markets that the company recruits from, maintaining an overall sustainable cost level. Equinor places a high focus on fostering alignment between the interests of its executive management and those of its owners and other stakeholders. Variable remuneration is aimed at driving performance in line with the company's strategy and securing long-term commitment and retention with the company. The receipt of variable remuneration depends on individual and company performance and is subject to a holding period requirement for some elements. Performance-based variable remuneration compensation has been capped in accordance with the relevant Norwegian state guidelines.

The remuneration policy was approved by the 2021 annual general meeting. A revised policy will be presented for a binding vote at the general meeting in 2023. The approved policy will be available on Equinor's website.

#### **Executive remuneration policy**

The executive remuneration policy approved by the 2021 annual general meeting, which serves as the basis for the 2022 remuneration report, including information with respect to the board of directors and corporate assembly, can be found in an appendix to the 2022 remuneration report on equinor.com/reports.

## **Risk management**

Equinor manages risk related to our strategy selection and delivery of our strategic ambitions. The most important enterprise risks and risk factors are described in section 5.2 Risk factors.

Equinor's enterprise risk management (ERM) framework is integrated into all Equinor business activities with a focus on creating value and avoiding incidents. We consider risks related to shorter-term outcomes, as well as more immature or emerging risk issues that can impact our business ambitions and corporate risk profile. The Equinor BoD oversees the ERM framework and reviews company performance.

The ERM approach supports risk-informed decisions and optimal solutions through a focus on the following:

- compliance with Equinor's requirements, including a strong focus on avoiding HSE, human rights and business integrity incidents (such as accidents, fraud and corruption).

In general, the risk is managed in the business line as an integral part of employee and manager tasks. The business areas and corporate functions regularly identify and evaluate risk using established procedures, assess the need for risk-adjusting actions, and review overall risk management performance. Some risks, such as oil and natural gas price risks and interest and currency risks, are managed at the corporate level to provide optimal solutions. A corporate risk perspective is also applied in strategy development, portfolio prioritisation processes, and capital structure discussions. Equinor's corporate risk team analyses the corporate risk profile and maintains the ERM overview. Throughout the year, the CEO and the BoD maintain oversight of the risk management framework, processes, top enterprise risks and the overall risk picture. Areas of particular risk oversight currently include IT and cyber-security, progress on net-zero, low-carbon value proposition, political and regulatory frameworks, human rights, and capacity and capability constraints.

Equinor's risk management process is based on ISO 31000 risk management and seeks to ensure that risks are identified, analysed, evaluated, and appropriately managed. A standardised process across Equinor supports consistency in risk discussions and

Equinor, Annual Report on Form 20-F 2022 37

efficiency in decisions. Risk is integrated into the company's management information system (IT tool), where it is linked with Equinor's purpose, vision and strategy and associated strategic objectives and KPIs. This tool is used to capture risks, follow up risk-adjusting actions and related assurance activities, and supports a risk-based approach in the context of a three lines-of-control model (https://www.equinorbook.com/brandcenter/en/equinorbook/component/default/82415).

Equinor risk management can be broadly considered across the following enterprise impact areas. More detail on specific themes is provided in relevant material topics sections of this report.

**Strategic and commercial risks:**

Equinor needs to navigate uncertainty and manage risk to remain financially robust through the changing energy context. Climate-related issues influence many aspects of our strategy selection and execution. Global, regional and national political developments can change the operating environment and economic outcomes. Market conditions related to supply and demand, technological change, customer preferences and global economic conditions can significantly impact company financial performance. Our ability to deliver value from projects and operations can be impacted by factors related to partners, contractors, global supply chains as well as regulatory frameworks. Digital and cyber threats are constantly evolving and can cause major disruption across our value chains.

**Strategic and commercial risk factors:**

- Prices and markets
- International politics and geopolitical change
- Hydrocarbon resource base and low carbon opportunities
- Digital and cyber security
- Climate change and transition to a lower carbon economy
- Project delivery and operations
- Joint arrangements and contractors
- Competition and technological innovation
- Ownership and action by the Norwegian State
- Policies and legislation
- Finance
- Trading and commercial supply activities
- Workforce and organisation
- Crisis management, business continuity and insurance coverage

**Strategic and commercial risk management:**

Overall, Equinor manages risk through a diversified portfolio, robust financial framework, stress-testing and business planning, investment, and review processes. The company is exposed to oil and gas market price levels. Corporate hedges may be entered into to reduce or eliminate the cash flow volatility generated from the price levels risk. Equinor has an insurance-based approach to this hedging, securing downside protection only while keeping the upside in price exposure open. For the trading business, derivatives risk is managed through a control framework including Value at Risk and trader mandates, loss limitation systems and daily monitoring of trading profit and loss. Equinor's liquidity framework is based on a forward-looking risk management approach to assure that Equinor's strategic liquidity reserve will cover both expected and unexpected cash outflows over the subsequent six months, including a potential crisis event and significant collateral needs.

Risk factors related to low carbon solutions, climate change and transition to a lower carbon economy, workforce and organisation, cyber security, actions by the Norwegian State are included within top enterprise risks and have direct follow-up at executive level. Top enterprise risks are assessed in relation to risk appetite statements and risk tolerances that represent the company's willingness to take on risk exposure. Actions to manage exposure are implemented and assessed based on their effectiveness. Risks are reviewed by both the first line (risk owner) and second line (Corporate risk) with regards to risk management and followed up by the CEC and BoD.

To support portfolio resilience in multiple energy pathways, we have a financial framework in place addressing climate-related risks, we stress test our portfolio across different energy scenarios, and assess climate-related physical risks. Risks relating to policies and regulatory frameworks, international politics and geopolitical change, together with competition and technological innovation are regularly assessed, monitored and managed to improve outcomes for the company as part of the Equinor's risk update.

Risk factors related to projects and operations are managed at many levels, including through quality assurance processes (competence area reviews, e.g., facilities, safety and security, environment, commercial and country risk) within the investment phase, quality risk management within the project execution risk phase, and continuous improvement programs in operations. Crisis management, business continuity and insurance coverage are included in

38 Equinor, Annual Report on Form 20-F 2022

the evaluation of actions to reduce the impact of unwanted incidents. Digital security and cybersecurity remain in high focus through a cybersecurity improvement programme to maintain and strengthen cybersecurity capability and reduce cyber risk.

**Safety, security and environment risks:**

We undertake business activities globally that give exposure to a wide range of factors that can impact the health and safety of people, the integrity of facilities, and the natural environment. Incidents may include release of health hazardous substances, fire, explosions, and environmental contamination. Equinor could also be subject to hostile acts that cause harm and disrupt operations.

**Safety, security and environment risk factors:**

- Security
- Health, safety and environmental factors

**Safety, security and environment risk management:**

We regularly assess our performance through indicators, reviews and assurance activities and, when needed, instigate improvements. In the current business context, we have a specific focus on top enterprise risks related to major accidents, security incidents and human rights breaches, as well as following up on aspects of our pathway to net zero (under strategic and commercial risks). Mitigation of the major accident risk is through continued focus on our I am Safety Roadmap and rollout of major accident prevention training across the company. Risk exposure to human rights is addressed through a specific action plan that prioritises key actions to prevent forced labour in the supply chain and establish new working requirements for human rights due diligence. The European security situation continues to shape security risk management activity and we have sought to mitigate state actor threats through work on physical security, including offshore and onshore facilities and pipelines, to guard against drones, and to further develop the management of cybersecurity.

**Compliance and Control Risks:**

Breaches of laws, regulations or guidelines and ethical misconduct can lead to public or regulatory responses that affect our reputation, operating results, shareholder value and continued licence to operate. Failure to control risks related to trading processes and transactions can result in direct losses and potentially affect Equinor's licence to trade.

**Compliance and Control Risk Factors:**

- Business integrity and ethical misconduct
- Supervisions, regulatory reviews and reporting

**Compliance and Control Risk Management:**

Equinor's Code of Conduct sets out our commitment and requirements for how we do business at Equinor. We train our employees on how to apply the Code of Conduct in their daily work and require annual confirmation that all employees understand and will comply with requirements. We require our suppliers to act in a way that is consistent with our Code of Conduct and engage with them to help them understand our ethical requirements and how we do business. Equinor operates a Compliance Program to ensure that anti-bribery and corruption risks are identified, reported, and mitigated, and have a network of compliance officers who support the business areas globally.

Equinor, Annual Report on Form 20-F 2022 39

40 Equinor, Annual Report on Form 20-F 2022

## 1.9 Our People - To get there. Together

### How we work

Our success depends on thousands of individuals working together. Each and every one of us makes a difference as we shape the future of energy.

Equinor's role as a reliable energy provider is more important than ever, while we also work on securing sustainable energy production today that will enable the energy transition. This has resulted in a high activity level, and we are proud of all our people going to great lengths to keep energy production high and secure. In 2022, we strengthened our capabilities in Norway and in locations around the world, focusing on competence development, recruitment, and our operating model. In Equinor, we have around 22,000 employees globally. We work systematically with diversity and inclusion in our HR processes, from recruitment, talent, and succession to leadership deployment. In 2022, our gender balance was 31% female, and 21% of our employees were international (non-Norwegian). During the year we welcomed almost 2,000 new employees to our company. Our focus has been on strengthening competence development, recruitment, and onboarding while maintaining our people's well-being and building an inclusive culture where everyone feels respected, safe, and fully connected to our common goal.

|  | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Total number of permanent employees | Equinor group | number | 21,938 | 21,128 | 21,245 | 21,412 | 20,525 |
| Total new hires | Equinor group | number | 1,988 | 886 | 774 | 1,568 | 906 |

### Developing our people capabilities

In 2022, we implemented further improvements to our workforce planning process to ensure that there is an even stronger link between our strategy, business plans, and the people capabilities we develop for Equinor. Our workforce planning process involves leaders and employee representatives in the definition of the competence and capacity needed to deliver on future plans, as well as in the development of plans to close and mitigate gaps, such as competence development and recruitment.

### Building and utilising our collective competence

Our collective competence is a key enabler for Equinor to deliver on current and future ambitions. We are therefore supporting employees to build future-fit competence and are continuously updating our learning offering. We continuously monitor the uptake of all formal learning to ensure management focus and further optimise our learning portfolio.

In 2021 we adjusted our operating model to further expand the use of competence centres to accelerate competence development and flexibility in people allocation across activities and value chains. In 2022, we implemented further improvements to make sure that our processes and tools are fit for purpose to enable this, including a review of various IT solutions.

### Growing our workforce

To support our ambitions for the future, we added almost 2,000 new recruits in 2022 to replenish and grow our workforce. A high activity level in our existing business, combined with high growth ambitions, and a growing number of retirees, requires an increased intake of both emerging talent and experienced hires.

### Creating a great place to work

In Equinor, we continuously involve our people in the development of the company. This includes internal cross-functional collaboration and liaising with union representatives and safety delegates according to local law and practice. In 2022, this was vital in activating our new operating model, flexible work, humanitarian aid related to the war in Ukraine, and an increasingly complicated security situation. We respect employees' rights to organise and their opportunity to bring forward their opinions, and we have the same clear expectation of our suppliers and partners.

Every year we conduct a global people survey (GPS) to evaluate and improve key areas that impact safety, working environment, engagement, and the drive for continuous improvement and change in Equinor. For 2022, the GPS scores show a positive development in commitment, motivation and HSE compared to 2021, but also some negative developments for some important topics, such as continuous improvement, rapid implementation of good ideas and further development of our operating model. We are focused on developing our people, directing their time and effort to prioritised activities in more flexible ways. We continue to adapt to our new ways of working and our focus on flexibility and collaboration. In Equinor, we have established a set of flexible work principles that describe the ways we organise our work, use our facilities, and behave together, and 2022 was about implementing and operationalising these principles.

### Performance and reward framework

Our performance and reward framework measures progress and results in a holistic way across two dimensions, both by what we deliver and how we deliver. Business delivery and behaviour are equally weighted when recognising and rewarding individual performance. The CEO, his direct reports and Equinor's broader leadership are assessed based on results within a broad range of financial, operational and sustainability topics. The annual bonus for employees is based on the same holistic assessment of company performance. A comprehensive set of performance indicators and monitoring reports are made available to all employees in Equinor's management information system. The KPIs are reported on a regular basis from operational levels to the governing bodies to ensure

Equinor, Annual Report on Form 20-F 2022 41

transparency in risk and performance management - this is how we keep individuals accountable for the development of our company.

42 Equinor, Annual Report on Form 20-F 2022

# 1.10 External relations

## Stakeholder engagement

In line with our values of being open and collaborative, we actively and regularly engage with internal and external stakeholders to discuss our strategy, approach, and performance. It is important to engage to enrich and challenge our priorities and positions, so that we can continuously improve our performance and strategic direction.

Throughout 2022, we engaged with numerous stakeholders, including investors, governments, regulators, business partners and suppliers, customers, local communities, academic institutions, and non-governmental organisations. Equinor strives to have a systematic approach to engage with a broad set of relevant stakeholders for our business and the communities where we operate.

A tangible example of how we engage with stakeholders was the company's Energy transition plan. In May 2022, Equinor put forward its Energy transition plan for an advisory vote to shareholders at the annual general meeting (AGM). The plan provides an overview of how the company is progressing towards its 2050 net-zero ambition through short-term actions and medium-term ambitions. This provided an opportunity for all investors to actively engage with the company's ambitions and performance. 97.5% of the votes representing shareholders present at the AGM were cast in approval of the proposed resolution. In addition to the government as the largest shareholder, almost three out of four investors voted in favour.

The chair of the BoD, the CEO and senior managers, amongst others, regularly engage in stakeholder dialogues. We consult stakeholders both directly and indirectly, and we strive to reduce potential language, social and geographical barriers.

## Associations and industry initiatives

Equinor participates in a wide range of relevant associations and industry initiatives to engage in dialogue, share knowledge and learn from others. The following are some of the associations that worked closely with: CCSA, G+ Global offshore wind health and safety organisation and Global Wind Offshore (GWO), Hydrogen UK, the International Emissions Trading Association (IETA), International Association of Oil and Gas Producers (IOGP), Ipieca, Methane Guiding Principles, Offshore Norge, Oil and Gas Climate Initiative (OGCI), Oil and Gas Methane partnership, Renewable UK, Sustainability Hub Norway, the Task Force on Climate-related Financial Disclosures, the Task Force on Nature related Financial Disclosures, United Nations Global Compact, Wind Europe, and the World Business Council for Sustainable Development.

Further information on our Climate policy engagement activities can be found in section 2.3 Low carbon.

## Working with partners and suppliers

Equinor holds participating interests in many assets operated by other companies. Similarly, other companies hold participating interests in assets that we operate. The way we work and follow up on partner-operated assets seeks to ensure that governance, risk and performance management are compatible with our own requirements and practices. Through the applicable committee structures in the partnerships, we follow up and support the management of risks and performance related to safety, security, ethics, integrity, and sustainability, including climate, environment, human rights and social performance.

A significant part of our business activities are carried out by suppliers working under contracts awarded by Equinor. We undertake safety and sustainability qualification of suppliers' management systems to ensure that our suppliers have an acceptable standard before entering into a contract. The qualification is based on an audit of suppliers' management system according to the main principles of ISO 9001 (quality), 14001 (environment), 27001 (information security) and 45001 (occupational health and safety), in addition to the United Nations Guiding Principles on Business and Human Rights. We work closely with our suppliers and regularly verify deliveries to ensure that agreed actions are undertaken.

Integrity due diligence (IDD) is performed to identify integrity concerns and ensure that the required IDD process is complete prior to establishing a new agreement with a counterparty.

Equinor, Annual Report on Form 20-F 2022 43

# Enterprise
level performance

Performance 2022

2.1 Always safe
2.1.1 Safe and secure operations
2.1.2 Protecting nature
2.1.3 Tackling inequality - Human rights
2.1.4 Tackling inequality - Diversity and inclusion
2.2 High value
Group analysis
2.2.1 Efficient and predictable operations
2.2.2 Profitable portfolio
2.2.3 Value creation for society
2.2.4 Integrity and anti-corruption
2.3 Low carbon
2.3.1 Net zero pathway
2.3.2 Emissions reduction

44 Equator: Annual Report on Form 20-F 2022

# Performance 2022

As a large, international energy company, Equinor impacts and is impacted by a variety of factors. We create value by providing society with energy - 2,039 mboe per day of oil and gas and a total of 2,653 GWh of electric power in 2022. Through the efficient operation of our portfolio, we generate profits and shareholder returns. This financial strength, combined with our engineering expertise, enables us to contribute to the rapid deployment of renewable energy and low-carbon solutions. We also contribute to socio-economic development through jobs for around 22,000 employees and our 8,000 suppliers and pay a significant amount of tax in the societies in which we operate.

At the same time, our operations generate significant greenhouse gas emissions - in 2022 we emitted 11.4 million tonnes carbon dioxide equivalent (CO2e) from our own operations. We also impact biodiversity and ecosystems through for example discharges to sea or land, emissions to air, and the use of land and sea areas and natural resources. In our industry, the exposure to health and safety risk is high. Risks related to breaking of human rights, integrity and security are also inherent in the activities we and our suppliers perform. While profitable growth and shareholder value is critical to any business, we must create long-term growth and lasting value in a sustainable way.

In recognition of the complex interplay between our business, nature and society, we use the concept of double materiality to inform our business decisions. We systematically analyse impacts with two perspectives in mind: the impacts that Equinor has on society and nature, and the impacts that society and nature have on Equinor. This dual perspective ensures a broader understanding of the material topics we need to manage in the delivery of our long-term strategy as well as in our day-to-day operations. The identification and prioritisation of material topics is based on our understanding of relevant risk factors, consultation with internal and external subject matter experts, independent analyses and our ongoing stakeholder engagement as summarised in chapter 1. The chief executive officer (CEO) and ultimately the board of directors (BoD) are responsible for the approval of the annual report, including the material topics, monitoring indicators and ambitions.

The material topics are grouped according to our three strategic pillars: Always safe, high value and low carbon. For each of the material topics, KPIs/monitoring indicators have been identified, and clear ambitions have been set. The table below summarises our framework and provides a high-level overview of our progress in 2022. Subsequent sections of this chapter detail our ambitions, key risk factors, management approach, performance data, and evaluation of our progress for each of the nine topics. For each material topic we include a summary of Equinor's key impacts to nature and society, as well as through cross referencing relevant corporate risk factors identified in chapter 1, an assessment of the impact of nature and society to Equinor.

Equinor, Annual Report on Form 20-F 2022 45

## Material topics and 2022 performance

| ALWAYS SAFE |  |  |  |  |
| --- | --- | --- | --- | --- |
| KPM/ONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
|  |  |  | 2022 | 2021 |
| SAFE AND SECURE OPERATIONS |  |  |  |  |
| Serious Incident Frequency (SIF) (number per million hours worked) | <0.4 (2022) | • | 0.4 | 0.4 |
| Total Recrustable Injury Frequency (TRIF) (number per million hours worked) | <2.2 (2022) | • | 2.5 | 2.4 |
| Completion of cyber security awareness training for employees - cross-commenced June 2021 (%) | 95% (2022) | • | 97.7 | 97 |
| PROTECTING NATURE |  |  |  |  |
| Assets and finances in and adjacent to protected areas (number of) | From 2023: New projects in protected areas or areas of high resiliency value to establish a plan aiming to demonstrate net positive impact | • | 35 | 19 |
| Serious accidental spills (number of) | 0 (2022) | • | 0 | 0 |
| TAOKUNG INEQUALITY |  |  |  |  |
| Determine a suitable human rights indicator | Place out of human rights indicators (2022) | • | Completed |  |
| Indicate index score (%) | 1: ≥60 (2023) | • | 77 | 77 |

| HIGH VALUE |  |  |  |  |
| --- | --- | --- | --- | --- |
| KPM/ONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
|  |  |  | 2022 | 2021 |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (miles per day) | 2022 outlook guiding 'ON above 2021' 1,2 | • | Growth 5% (2020) | 267.9 |
| Production cost equity volumes (USD/ton) | <5 USD/100 (2021-2025) 1,2 | • | 5.4 | 5.4 |
| PROFITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed 3 (ROACE) (%) | <14% yearly (2022-2026) 1,2 | • | 55.2 | 22.7 |
| Relative Total Recrustable Return (Relative TSR) (quartile) | Above average in ranking among years 1 | • | 6 of 12 | 2 of 12 |
| Relative ROACE 4 (year group rank) | First quartile in ranking among years 1 | • | 1 of 12 | 2 of 12 |
| Organic Capex 5 (billion USD) | 2022 outlook guiding USD 25 1 | • | 8.3 | 7.6 |
| VALUE CREATION FOR SOCIETY |  |  |  |  |
| Payments to governments (billion USD) | Not applicable | • | 49.2 | 11.8 |
| Gross of procurement spend (costly) (%) | Not applicable | • | 88.7 | 91.4 |
| INTEGRITY AND ANTI-CORRUPTION |  |  |  |  |
| Confirmed corruption cases (number of) | 0 (2022) | • | 0 | 0 |
| Employees who signed off the Code of Conduct (%) | ≥95% (2022) | • | 95 | 84 |

| LOW CARBON |  |  |  |  |
| --- | --- | --- | --- | --- |
| KPM/ONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
|  |  |  | 2022 | 2021 |
| NET ZERO PATHWAY |  |  |  |  |
| Net carbon intensity (gCO 2 at/MJ) | <20% (2023 → 2030) >40% (2023 → 2025) | • | 88.5 | 87.1 |
| Renewable energy installed capacity (CO 2 at, equity) | 12-15 installed (2020) | • | 0.6 | 0.5 |
| Annual gross CAPEX to renewables and low carbon solutions 6 (%) | >30% (2023) >50% (2020) | • | 14 | 11 |
| EMISSIONS REDUCTIONS |  |  |  |  |
| Absolute DHS emissions scope 1 and 2 (million tonnes CO 2 at) | Net 50% emission reduction (2021 → 2026) | • | 11.4 | 12.1 |
| Upstream CO 2 intensity, Scope 1 (kg CO 2 flow) | <0.1kg/ton (2023) >0.1kg/ton (2020) | • | 6.9 | 7.0 |

**Tool in bold:** Key performance indicator.  
 $^{1}$ Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in 2022).  
 $^{2}$ USD 2021 real base.  
 $^{3}$ Reduced for portfolio measures.  
 $^{4}$ Based on 2022 CMU price scenario (95 USD/000).  
 $^{5}$ Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.  
 • Antitrust met in 2022.  
 • Antitrust not met in 2022.  
 • Plan in place, on track to reach longer-term ambition.  
 • Plan in place, not on track to reach longer-term ambition.

46 Equator, Annual Report on Form 20-F 2022

## Summary of enterprise level material topics for 2022

### Always safe

#### Improved safety and security performance

In 2022 there were no fatalities and no actual or potential major accidents, and the total number of actual serious incidents is the lowest ever recorded. Equinor also recorded the lowest number of serious oil and gas leaks ever, and there was no significant harm to people, assets or operations due to security incidents. The company, however, experienced too many personal injuries and did not meet the 2022 target. Although there was a decline in work related illness, the total level of absence has increased further since 2021. Based on our 2022 performance, we recognise the need to continue to improve our health, safety and security performance. Given the measures reinforced in 2022, we consider our approach as adequate, and health, safety and security objectives remain a top priority for Equinor's management.

#### Satisfactory performance on most nature related topics

Equinor's performance related to non-GHG emissions to air and regular discharges to sea, is considered satisfactory. Although volumes of accidental spills are lower than in 2021, we are not satisfied with the slight increase in number of uncontrolled discharges and breaches of discharge permits in our operations in Norway, and there is continued focus on improvement activities to address compliance with relevant environmental regulations. Our approach and ongoing improvement activities related to our impacts on biodiversity, for example new disclosure metrics and preparation of NPI plans and site-specific inventories of key biodiversity features, are viewed as representing an adequate response to the need for action against loss of biodiversity.

#### Further maturation of approach to human rights

Equinor has continued to mature its approach to addressing human rights and tackling inequality with two important milestones in 2022 being the articulation of our just transition framework, and stand-alone human rights statement. We continued our efforts to further integrate human rights practices into the way we work, with a particular focus on addressing indications of forced labour and unacceptable working conditions in our supply chains. We consider our management approach adequate to address the salient risks but recognise the need for more systematic efforts and broader collaborations to tackle systemic issues. We will also continue our efforts to identify meaningful indicators of social and human rights performance with the aim of reporting in a more quantitative fashion in future years. Diversity and inclusion performance satisfactory

The focus in 2022 has been on updating our diversity and inclusion (D&I) ambition, strategy and metrics to better support our business strategy, and reflect our external context, societal expectations and international reporting standards. While diversity targets have been put on hold in 2022 due to internal reorganisation, we continued to measure our inclusion index and use this data to identify actions that drive an inclusive culture. The inclusion index performance remains at the same level compared to a three-year average, and we recognise the opportunities for improvement. The plans for 2023 focus on further operationalising D&I, setting targets and actions locally and systematically measuring progress on both diversity and inclusion.

### High value

#### Efficient and predictable operations

Equinor delivered stable total equity liquids and gas production throughout 2022 while increasing gas production from the NCS in response to the energy security crisis in Europe. Production came in at 2,039 mboe per day compared to 2,079 mboe per day for 2021 primarily due to portfolio changes including Equinor's exit from Russia. Divestments and natural decline were offset by the Snahvit, Peregrino and Njord fields resuming production and start-up of Johan Sverdrup phase 2 and Peregrino phase 2 in the fourth quarter of 2022. Total renewables power generation increased by 5.6 % in 2022 to 1,649 GWh, mainly due to the full year production from the Guanuli IIA solar plant in Argentina.

Through efficient and stable production Equinor delivered a unit production cost for 2022 at 6.1 USD/boe (5.6 USD/boe real 2021). Performance came in above guiding, reflecting the challenging economic environment which developed since setting the target at the beginning of the year. Increasing energy cost, higher environmental costs and portfolio changes resulted in the higher unit production cost for 2022.

#### Profitable portfolio

Equinor's strong financial performance and results has placed the company in a robust financial position. We delivered first among peer group on Adjusted Return on Average Capital Employed* for the year with a 55% adjusted ROACE*, and above average on Relative Total Shareholder Return*.

Equinor's oil and gas portfolio is well positioned to deliver energy during an ongoing energy crisis. Strong cash generation enables Equinor to continue reinvestment in an optimised oil and gas portfolio and ensuring high value growth in renewables and low carbon solutions, with USD 8.3 billion organic capex* (adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022) in 2022. Equinor continue to optimise and reprioritise the non-sanctioned projects to ensure high value creation though cycles.

#### Significant societal value creation

Delivering value to society at large and to our host communities in particular, is fundamental to the success of our ongoing business activities and the energy transition. Our 2022 performance was geared towards ensuring crucial energy production and supply, and

Equinor, Annual Report on Form 20-F 2022 47

providing significant tax contributions, employment and procurement spend. In 2022, Equinor paid over USD 45 billion in taxes and spent around USD 17.1 billion on procurement.

#### *Integrity and anti-corruption targets met*

The number of confirmed corruption cases were zero, which is aligned with the target. 95% of employees signed-off the company's Code of Conduct which also addressed the gap identified in 2021.

#### **Low carbon**

##### *Satisfactory progress on climate performance*

Equinor's total scope 1 and 2 GHG emissions were 11.4 million tonnes CO$_{2}$e in 2022, representing a decrease compared to a three-year average. The CO$_{2}$ intensity was 6.9 kg CO$_{2}$ per barrel of oil equivalent, which is less than half of the current global industry average of 16 kg CO$_{2}$/boe. Equinor also continued its strong methane intensity performance with 0.02% compared to the OGCI average of 0.17%. Equinor's scope 3 GHG emissions (use of sold products) were 243 million tonnes CO$_{2}$e which is a slight decrease compared to a three-year average. Equinor expects to maintain the same level of oil and gas production until 2030, which may result in increased emissions from use of sold products.

The company is on track towards its ambition of allocating 30% of its gross capex* to renewables and low carbon solutions by 2025, with investments increasing to 14% in 2022, compared with 11% in 2021.

To account for both emissions and energy produced, Equinor uses a net carbon intensity (NCI) methodology, which accounts for scope 1, 2 and 3 emissions. Equinor's NCI was 66.5 g CO$_{2}$e/MJ which is a slight improvement from 67.1 g CO$_{2}$e/MJ in 2021.

## 2.1 Always safe

### Guided by our values

Safety is Equinor's top priority and the core of our license to operate. To us, this means safety for our people, the environment, and the societies in which we operate. Our values *open, courageous, collaborative and caring* guide us in our continuous work to safeguard people, the environment and assets. We operate in a high-risk industry with regards to both safety and security. As an international energy company, we are highly dependent on strong collaboration with our contractors, who undertake two thirds of our activity.

### Material topics.

The *Always safe* material topics have a strong link to how Equinor impacts nature and society. Our double materiality evaluation further highlights that several of our corporate risk factors (crisis management and business continuity, safety and environmental impact, and security threats) may have a material impact on Equinor.

'Safe and secure operations' addresses our commitment to ensure the health, safety and security of our people, and integrity of our operations. The corporate KPIs Serious Incident Frequency (SIF) and Total Recordable Injury Frequency (TRIF) are the most important ways we measure our performance in this regard, and SIF is also part of the framework for executive remuneration.

'Protecting nature' acknowledges our responsibility for nature in relation to acute spills, regular emissions and discharges, as well as our presence in or near protected areas.

Tackling inequality states that we must be active in handling the inequalities we meet in our business, both internally and when interacting with suppliers, business partners and society in general. Among our own employees we work systematically to strengthen diversity and inclusion and reduce our gender pay gap, including the use of quantitative scores and ambitions. Our ambition is that everyone should have equal opportunities regardless of gender, age, nationality, ethnicity, sexual orientation, religion and disability. Through our work with human rights issues, we expand our ownership for safety to the societies in which we operate.

48 Equinor, Annual Report on Form 20-F 2022

## 2.1.1 Safe and secure operations

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Ensure the health, safety and security of people, environment and assets. | Equinor's operating activities have actual and potential impacts on people, environment and assets. These include the potential of injury, work related illness and major accidents. | • Crisis management, business continuity and insurance coverage • Digital and cyber security • Health, safety and environmental factors • International politics and geopolitical change • Joint arrangements and contractors • Security | Serious Incident Frequency (SIF) (number per million hours worked) | ≤0.4 (2022) 1 |
|  |  |  | Total Recordable Injury Frequency (TRIF) (number per million hours worked) | ≤2.2 (2022) 1 |
|  |  |  | Completion of cyber security awareness training for employees - since commenced June 2021 | 95% (2022) 1 |
|  |  |  | 1 Ambition not in 2022. 2 Ambition not met in 2022. 3 Plan in place, on track to reach longer-term ambition. 4 Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |

### Contextual introduction

Over the course of 2022, the geopolitical context evolved with the invasion of Ukraine and changes in the related security threats. Running safe, efficient, and predictable operations remained Equinor's priority to continue to be a reliable supplier of energy to the markets in Europe in a highly challenging environment. Equinor collaborated closely with Norwegian authorities to manage the security situation in 2022 and received support to strengthen physical security both offshore and onshore.

Equinor is a broad international energy company and faces a range of potential safety and security risks including well blowouts, ignited hydrocarbon leaks, structural collapses, oil and gas spills and leaks, crime, occupational incidents, and work-related illness. Cyber security continued to be a major risk factor throughout 2022.

Two thirds of our activities are undertaken by contractors. We are fully committed to strong collaboration with our contractors to safeguard people, environment, and assets.

### Management approach

Our vision is zero harm, which is supported by our strategic pillar Always safe. We believe that all accidents related to people, environment and assets can be prevented. To guide us in our journey towards our vision and strategy, we have selected SIF and TRIF as our key performance indicators. SIF includes major accident hazard and other serious safety accidents and near misses. Near misses are incidents with no actual consequences but with a serious potential.

On 1 July 2022, the Norwegian Ministry of Petroleum and Energy decided that Equinor ASA would be subject to parts of the Norwegian Security Act and later notifications stated that Equinor would become subject to activities which are of vital importance to fundamental national functions. Equinor then began to work on responding to the requirements of the Security Act decision and achieving compliance.

### Management system

Equinor, Annual Report on Form 20-F 2022 49

Our safety and security management system capitalises on the collective knowledge gained and good practice established over many years. This is fundamental to ensure safe and efficient execution of activities and clear roles and responsibilities. Based on learning from incidents, a framework for major accident prevention was developed in 2021. The framework set a structure based on recognised industry practice for high-risk industries. The framework for major accident prevention relies on leadership, culture and organisational frame conditions, safe design and practices and safety barriers. Human and organisational performance principles are embedded in the framework. During 2022, the framework for major accident prevention was implemented globally.

exhibit154p50i0

50 Equinor, Annual Report on Form 20-F 2022

## Safety roadmap

The I am safety roadmap sets the direction for Equinor's safety improvement. It guides the safety work and outlines prioritised activities throughout the company across four categories: safety visibility, leadership and behaviour, learning and follow up, and safety indicators.

exhibit154p51/0

Human and organisational performance (HOP) principles underpin the way in which we develop a proactive and visible safety culture. The HOP approach provides guidance on how people, technology, organisations and processes interact as a system, and how these conditions can influence the causes of human errors. HOP is implemented in leadership training across the company, and HOP focal points were established and trained in 2022 to support the roll-out and training.

Equinor works together with suppliers and contractors to achieve a standardised and common approach to the safety improvement agenda. Formalised collaborations based on Life saving rules, Annual wheel and common KPIs have been established and committed through signed collaboration charters. Joint meetings across the established safety charters were held in 2022 and alignment on the agreed targets and priorities achieved. All these arenas are open and transparent venues for sharing of learning both ways.

Close cooperation with other operators is vital for the work to succeed. Equinor engages proactively across industry bodies such as the International Association of Oil & Gas Producers (IOGP), Oil Companies International Marine Forum (OCIMF) and the G+ Global Offshore Wind Health & Safety Organisation.

Equinor continuously works to improve and develop new leading indicators to proactively guide the safety approach across the company.

## Crisis and continuity management

To ensure we are prepared, we work to have appropriate emergency response capabilities in place to limit the consequences of incidents, should they occur. Our oil spill response capabilities are in line with good international practice and leverage expertise and resources made available through our membership of local and international oil spill response organisations. Equinor personnel routinely participate in training and exercises on their roles and responsibilities in emergency response situations, to be sufficiently prepared if, and when, incidents occur. Joint exercises with interaction between internal and external actors were carried out during 2022.

In response to the European security situation, a strategic project team reporting to the CEO and the CEC was established from February to December to ensure risks and challenges were managed holistically across the company. The purpose was to maintain safe and efficient operations and prepare the company for short- and long-term impact. The strategic project team facilitated close interaction and collaboration with key stakeholders, partners and Norwegian authorities and security agencies. Equinor increased the state of alert in Norway and for parts of the international business in September. We strengthened our personnel security efforts to

Equinor, Annual Report on Form 20-F 2022 51

raise awareness and handle insider risk both for our own employees and in collaboration with suppliers. During the year, Equinor continued to strengthen cyber security barriers and improved response and recovery capabilities across the company.

To safeguard onshore plants and offshore installations, Equinor reviewed its onshore and offshore physical security and improved the security barriers in line with the Equinor state of alert requirements and guidance from the Norwegian authorities.

#### Health and working environment

Health and working environment is an integral part of our efforts to safeguard people. We focus on risk management and systematic monitoring of work-related illness related to factors such as chemicals, noise, ergonomic workplace, and psychosocial aspects. In addition to monthly reviews of registered cases, we capture information from employees through our Global People Survey (GPS), which includes questions related to psychosocial and mental health risk factors.

### Performance disclosure

#### Serious incidents

In 2022, we experienced no actual nor potential major accidents, and no fatalities.

Our serious incident frequency (SIF), which includes near misses, ended on target at 0.4 incidents per million work hours. This is an improvement over the five-year period 2018-2022 from 0.5 to 0.4. The number of actual incidents has halved in the same period.

![red square icon]() eshblt154p52i1

#### Process safety

In 2022 there were 8 serious oil and gas leaks (with a leakage rate ≥ 0.1 kg per second). This is the lowest number of leaks ever recorded and came close to achieving our ambitious 2022 target of a maximum of seven leaks. No serious well control incident recorded.

There was an increase in Tier 1 process safety incidents that included loss of primary containment. A total of 14 incidents were classified as Tier 1 in 2022, while the total number for 2021 was 8. However, the sum of Tier 1 and the less severe Tier 2 incidents was reduced.

![red square icon]() eshblt154p52i0

The positive trend on the safety-critical maintenance backlog continued during 2022. Reducing this backlog is important in preventing major accidents.

52 Equinor, Annual Report on Form 20-F 2022

## Personnel health and safety

The total recordable injury frequency (TRIF) increased to 2.5, up from 2.4 in 2021 and the 2022 target of 2.2 was not achieved. However, more detailed analysis shows that according to Equinor's internal severity classification there is a decline in the most serious injuries.

## Health and working environment

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Work related illness | Equinor group | number per year | 132 | 161 | 161 | 135 | 82 |
| Sickness absence | Equinor ASA employees | percentage of planned work hours | 5.1 | 4.6 | 4.2 | 4.4 | 4.6 |

There was a decline in the number of work-related illnesses, with 132 recorded cases in 2022. The total level of absence from sickness has increased since 2020, to reach 5.1 (as a percentage of planned workhours) in 2022.

## Security incidents

Security threats are monitored and reported on a frequent basis and risks are managed holistically across the physical, cyber and personnel domains. Equinor experienced some cyber-related incidents during the year, such as a distributed denial of service (DDoS) attack on an Equinor server, which had limited impact and was rapidly resolved.

There was increased targeted activism against Equinor's operations from environmental groups. None of the security incidents led to any significant harm to people, assets, or operations.

Equinor, Annual Report on Form 20-F 2022 53

| Security |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | 2022 | 2021 | 2020 | 2019 | 2018 |
| Percentage of security personnel who have received formal training in the organisation's human rights policies - South America and Africa 1 | Equinor group | percentage | 100 | 91 | 85 | n/r | n/r |
| Security e-learning training for employees and contractors | Equinor group | number of participants | 19,580 | 15,694 | n/r | n/r | n/r |
| Completion of cyber security awareness training for employees - since commencement in June 2021 | Equinor group | percentage | 97.7 | n/r | n/r | n/r | n/r |

$^{1}$As signatories of the Voluntary Principles on Security and Human Rights (VPSHR), Equinor does not use armed guards unless it is strictly necessary. In certain locations the threat is of such a nature that the arming of guards is crucial, while in others is it not possible to procure security services without the inclusion of firearms.

### Performance evaluation

No fatalities and no actual or potential major accidents were recorded in 2022, and the total number of actual serious incidents is the lowest ever recorded.

The total recordable injury frequency (TRIF) is higher when compared to industry benchmarking. In addition, our sickness absence has increased over the last two years. These areas represent a challenge for us, and we are working to understand the causes and mitigate risks.

Based on our 2022 performance, we recognise the need to continue to improve our safety performance. Given the measures reinforced in 2022, we consider our approach as adequate to improve our performance and close the gap on our health, safety and security targets. These objectives remain a top priority for Equinor's management.

54 Equinor, Annual Report on Form 20-F 2022

## 2.1.2 Protecting nature

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/ MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Preventing the loss of biodiversity and enhancing the diversity and resilience of ecosystems in which Equinor operates. | Equinor's operating activities have actual and potential impacts on nature. These include the potential for serious uncontrolled discharges, as well as operations in or near protected areas. | Health, safety and environmental factors Policies and legislation Supervisions, regulatory reviews and reporting | Assets and licences in and adjacent to protected areas (number of) | From 2023 New projects in protected areas or areas of high biodiversity value to establish a plan aiming to demonstrate net positive impact |
|  |  |  | Serious accidental spills (number of) | 0 (2022) |
|  |  |  | ○ Ambition met in 2022 ○ Ambition not met in 2022 ○ Plan in place, on track to reach longer-term ambition ○ Plan in place, not on track to reach longer-term ambition Text in bold: Key performance indicator |  |

### Contextual introduction

For Equinor, as a large offshore oil and gas operator with a growing offshore wind portfolio, the management of our activities and their potential impacts on the marine environment continues to be a priority. Historically our operated onshore activities were limited to oil and gas, including drilling and fracturing of wells in the US. Recent investments in and our ambitions for CCS, solar, hydrogen and battery storage projects underline the increasing importance of our management of onshore environments.

Our operations have actual or potential impacts on nature through pollution, including regular and uncontrolled discharges to sea or land and emissions to air. Our use of land and sea areas and related disturbances, including the noise of our operations and the risk of collisions with animals, and introduction of alien invasive species from maritime vessels, may also negatively impact biodiversity and ecosystems. This is of particular importance if our activities are in or near protected areas or areas of high biodiversity value. Through our partners and suppliers, we may also indirectly contribute to impacts on nature, for example in activities where large quantities of materials like metals, cement and chemicals are used.

There are increasing expectations from policy makers, academia, civil society, and communities among others, for urgent action to reverse biodiversity loss this decade. Global and regional biodiversity policies and risk management and disclosure frameworks are being developed and strengthened in support of the Kunming-Montreal Global Biodiversity Framework. These developments constitute a new set of detailed expectations for companies related to impacts and dependencies on nature and have direct relevance to Equinor's operations and its supply chains. Equinor aims to go beyond the zero-harm principle and take relevant actions to reduce potential adverse impacts and contribute to positive impacts.

The shift to a more resource-efficient, circular economy is a key area increasingly being reflected in stakeholder expectations and commercial agreements, for example in the context of the EU Taxonomy and for new wind farm developments. Another important development is the increased focus on the dependencies of nature and ecosystem services. Relevant dependencies for Equinor include the extraction of natural resources in our supply chain and the bioremediation service that healthy oceans provide when we discharge produced water containing minor fractions of oil and chemicals to sea at some of our offshore platforms.

### Management approach

To manage our impacts on nature, alongside complying with applicable laws and regulations, we aim to apply recognised environmental management practices. This includes application of the precautionary approach, best available techniques, the mitigation hierarchy and the ISO 14001 environmental management principles.

In 2021, in support of the global ambition of reversing nature loss by 2030, we announced in our Biodiversity position statement ambitions of going beyond the 'do-no-harm' principle by developing a net-positive approach. In 2022, we finalised the first set of methodologies for net-positive impact plans and site-specific inventories of key biodiversity features and started establishing such inventories. From 2023, we will develop plans aiming for a net-positive impact for all new development projects in protected areas or areas of high biodiversity value. The methodologies were developed through pilots in investment projects (including collaboration with bp at our joint offshore wind developments off the US East Coast), and assets in operation, and further implementation is planned. Further information can be found in our sustainability pages at equinor.com.

During 2022, we also followed the work of the Taskforce on Nature-related Financial Disclosures (TNFD) as a member of the TNFD Forum. To prepare for implementation of emerging nature-related risk and disclosure frameworks, we initiated internal materiality assessments and assessments of relevant metrics and indicators.

Equinor, Annual Report on Form 20-F 2022 55

Our governance, risk and performance framework enables us to systematically manage environmental aspects. Our first priority is to avoid potential negative impacts. If this cannot be done, we aim to minimise them. In the planning phases of all our assets, before construction or operations can commence, a key part of our management approach is environmental and social risk and impact assessments, including stakeholder engagement. This also includes baseline studies, surveys, monitoring programmes, and collaborative research projects to build knowledge and develop tools. Our oil spill response capabilities are described in section 2.1.1 Safe and secure operations. We publish documentation from project-specific impact assessments on our own website and make biodiversity-related data available through solutions owned by others, such as the Norwegian and UK authorities.

In 2022, we enhanced our focus on environmental regulatory compliance including specific improvement initiatives for our oil and gas assets in Norway. This included improved governance and collaboration, training and awareness initiatives, increased follow-up, and operational measures.

Substitution of chemicals for less environmentally harmful ones is part of our continual improvement efforts. For example, in 2022, we completed a campaign to substitute firefighting foam containing per- and polyfluoroalkyl substances (PFAS) with fluorine-free foams across our Norwegian operations.

We are also piloting an approach for sharing more biodiversity-related data via data.equinor.com. Equinor is a member of the Ocean Decade Corporate Data Group co-hosted by the Intergovernmental Oceanographic Commission (IOC) of UNESCO and Fugro. The aim of this initiative is to make privately held ocean data available for scientific research and decision making to address the challenges identified through the United Nations Decade of Ocean Science for Sustainable Development.

Growth in renewables is core to our Energy transition plan, and we need to understand how best to achieve this ambition in a nature-positive way. For example, we actively use Hywind Scotland, the world's first floating wind farm, as a test site to increase our knowledge of potential environmental impacts of such assets, and we aim to continue this work with the new Hywind Tampere wind farm on the NCS. Research topics include sound emissions from wind turbines, and we use remote sensing technology to assess potential reef-effects. We also undertake research on potential impacts on birds and how to mitigate them.

Collaboration with external stakeholders is fundamental to our approach, which helps us to build our knowledge and develop innovative solutions to address biodiversity. In 2022, we extended our participation in a range of research programmes and industry partnerships, such as the UN Environment Programme World Conservation Monitoring Centre's (UNEP-WCMC) Proteus Partnership. We also joined a project led by the International Union for Conservation of Nature (IUCN) which aims to identify good practices for renewable energy development.

We are also working to improve our understanding of circular economy opportunities. This includes our approach to waste management in general, as well as to specific recycling opportunities such as wind turbine blades and materials from the decommissioning and removal of offshore facilities. Through the supply chains for our oil and gas, and renewables activities, we purchase large quantities of steel, other metals, cement, and various materials used in drilling and completion of wells. Each of the respective supply chains may impact nature in various ways and have specific waste management needs and practices. We apply the waste hierarchy to primarily avoid waste generation and follow key circular economy principles such as the re-use, recycling and recovery of materials. The largest waste volumes from our own operations are oily wastewater from oil and gas processing and oiled drill cuttings.

56 Equinor, Annual Report on Form 20-F 2022

# Performance disclosure

## Non-GHG emissions, discharges and waste

Selected environmental performance data for 2022 is shown in the table below. A complete set of performance data can be found in our Sustainability datahub at equinor.com.

There were no serious accidental spills in 2022, and the total volume of accidental oil spills and other spills was considerably reduced from 2021 to 2022. However, the total number of spills increased slightly. A discharge of 581,000 m3 of treated process water from the Mongstad refinery water treatment plant was reported as a breach of permit. This was because the discharge occurred closer to shore than permitted and the volume was larger and the period longer than initially communicated to the Norwegian Environment Agency.

Over the past four-to-five years, non-GHG emissions to air and regular, permitted discharges of oil in water to sea have trended downwards slightly, or remained at the same level. The increase in SOx emissions from 2021 to 2022 was mainly due to the restart of production at the Peregrino FPSO in July 2022. However, SOx emissions from the asset are lower than in earlier years due to an ongoing fuel switch from diesel to imported natural gas. Hazardous waste quantities increased from 2021, mainly caused by increased volumes of water dispatched from Mongstad for further treatment. This water stems from well cleaning at offshore platforms. Increased quantities of drill cuttings due to increased drilling activity in Norway also contributed to an increase in hazardous waste quantities. Exempt waste quantities are at a low level since only three wells were drilled and fractured during 2022, all of which are at a single location in the US.

| Indicators | Units | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- |
| SOx emissions | ktonnes | 1.1 | 0.9 | 1.3 | 2.2 | 1.8 |
| NOx emissions | ktonnes | 32 | 34 | 36 | 41 | 42 |
| Non-methane volatile organic compounds | ktonnes | 23 | 26 | 35 | 40 | 46 |
| Accidental oil spills (net volume >0) | Number | 111 | 120 | 136 | 219 | 239 |
|  | m3 | 33 | 40 | 154 | 8,913 | 138 |
| Other accidental spills (net volume >0) | Number | 122 | 98 | 117 | 204 | 199 |
|  | m3 | 302 | 3,335 | 3,997 | 57 | 934 |
| Serious accidental spills | Number | 0 | 0 | 2 | 3 | 1 |
| Regular discharges of oil in water to sea | ktonnes | 1.1 | 1.1 | 1.3 | 1.2 | 1.1 |
| Hazardous waste generated | ktonnes | 304 | 280 | 318 | 313 | 244 |
| Non-hazardous waste generated | ktonnes | 37 | 33 | 29 | 40 | 31 |
| Exempt waste generated - drill cuttings and solids from US onshore operations | ktonnes | 1.2 | 0 | 17 | 84 | 55 |
| Exempt waste generated - produced water and flowback water from US onshore operations | million m3 | 0.1 | 2 | 5 | 7 | 6 |

## Biodiversity and nature

In 2022, we expanded the scope of reporting in relation to where we have operations in protected areas and areas of high biodiversity value. We now include linear infrastructure (e.g., pipelines and cables) for which Equinor is technical service provider on behalf of other operators, resulting in inclusion of the Europipe I and II pipelines which both crosses the Wadden Sea UNESCO World Heritage Site (WHS). The Wadden Sea was included in the WHS list in 2009, while the pipeline installations were completed in 1995 and 1999, respectively. We otherwise did not operate within other sites on the WHS list or sites in the International Union of Conservation of Nature (IUCN) category 1a ("Strict nature reserve") or category 1b ("Wilderness area").

The number of assets and licences inside or adjacent to protected areas increased from 19 in 2021 to 35 in 2022. This is partially caused by the increase in renewables activity and the increased disclosure scope (as explained above). A summary of our presence in relation to protected areas and areas of high biodiversity value is shown below and a complete overview is available in the ESG reporting centre on equinor.com.

NPI plans are being developed for several assets, for which the Empire Wind project in the US and the Rosebank project in the UK are first in scope.

Equinor, Annual Report on Form 20-F 2022 57

kwhb1154p580

1. "Assets" means offshore platforms including subsecutie-ins, onshore plants, pipelines and other linear infrastructure in operation or under construction
2. "Licences" includes only those licences where there have been operational activities other than 1) above, e.g., seismic acquisition, exploration drilling, site surveys.
3. If several protected areas (PA) or areas of high biodiversity value (AHBV) are present within a proximity category around a given asset or operation, they are counted as one. If a given PA or AHBV are within proximity categories for several assets or operations, it is counted in for each of these assets or operations. Subsea installations within a field are included in the counting of the platform it is tied into. For existing linear infrastructure like pipelines, service lines and cables, only the 'Inside' and 'Adjacent' categories are applied. In cases where linear infrastructure is installed during a given reporting year, all proximity categories are applied. Information on geographic location of cases represented in the table above can be found in the "Sustainability performance datahub" on Equinor.com.

Withdrawal and consumption of freshwater in 2022 was 6 million m3, a reduction from 8 million m3 in 2021. We had no oil, gas or renewable energy production in, nor did we withdraw water from areas of high or extremely high baseline water stress as defined by the World Resources Institute's Aqueduct® tool.

## Performance evaluation

### Non-GHG emissions, discharges and waste

For 2022, non-GHG emissions to air and the volume of discharges and spills to sea were mainly at the same level or trending downwards. We have also taken measures to reduce SOx emissions at the Peregrino FPSO. We therefore believe our approach to non-GHG emissions is effective and is producing the intended results.

Generated waste volumes, which stay at the same levels as previous years, are mainly dependent on activity levels within drilling, well clean-up and maintenance. We also initiated an improvement initiative to establish a circular economy framework aiming for better management of use, reuse and recycling of resources, including waste.

Although the accidental spill volumes are lower in 2022 compared to the previous year, we are not satisfied with the fact that the number of such spills increased slightly since 2021. As also raised by the Norwegian Environmental Agency, we continue to have compliance issues related to the number of accidental spills and breaches of discharge permits for our operations in Norway. The improvement activity addressing governance, competence, awareness and performance in this area, continues.

### Biodiversity and nature

Our approach and ongoing improvement activities related to our impacts on biodiversity are viewed as representing an adequate response to the global expectations and need for action against loss of biodiversity. The increase in numbers showing our presence in or adjacent to protected areas, is the outcome of increased disclosure scope (as explained above) and our expanding renewables portfolio. We continued our implementation of a net positive approach as outlined in our biodiversity position, including relevant

58 Equinor, Annual Report on Form 20-F 2022

disclosure metrics and preparation of NPI plans. The reduced level of withdrawal and consumption of freshwater is considered a positive development.

Equinor, Annual Report on Form 20-F 2022 59

## 2.1.3 Tackling inequality - Human rights

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Respecting human rights in Equinor's own activities and supply chain. | Equinor has operations and supply chains in geographies where human and labour rights may be at risk. With 8,000 direct suppliers, our activities may impact a vast number of people. | Business integrity and ethical misconduct Equinor arrangements and contractors Policies and legislation Exhibitions and organisation | Determine a suitable human rights indicator • Ambition met in 2022 • Ambition not met in 2022 • Plan in place, on track to reach longer-term ambition • Plan in place, not on track to reach longer-term ambition | • Pilot a set of human rights indicators (2022) |

### Contextual introduction

Within a turbulent global landscape, ethical and transparent behaviour is a critical foundation for business when considering how to tackle inequality. The Russia-Ukraine war and its ripple effects on access to food and energy, alongside the cost of living crisis, can have significant implications for individuals who already face challenges to their basic human rights. Understanding and managing the risk of adverse human rights impacts related to our activities is at the core of our human rights commitment. This is consistent with the United Nations Guiding Principles on Business and Human Rights (UNGP), the ten principles of the Global Compact and the Voluntary Principles on Security and Human Rights. We recognise that our activities can cause, contribute, or be linked to negative human rights and other social impacts, especially in jurisdictions with weak regulatory frameworks or enforcement, and where our activities face inherent risks. Addressing gaps towards international labour standards continues to be our main salient issue. Specifically, addressing the possibility of forced labour connected to our supply chains, a situation exacerbated by global instability, increased inequality and continued effects of the Covid-19 pandemic, remains our key concern.

### Management approach

Equinor's human rights policy applies to all our activities. In accordance with the company's risk management system, we identify adverse human rights risks and impacts, and work to prevent, mitigate or remediate as relevant to each situation. During 2022, we continued our efforts to further integrate human rights practices into the way we work, supported by regular senior leadership engagement.

Focus on labour rights and living wages is identified as one of the core priorities of the Just Transition plan which embeds respect for human rights as fundamental to achieving a just and fair transition.

The executive-level human rights steering committee continues to serve as an advisory group focusing on learning and experience transfer, actions to address Equinor's key human rights risks, and supporting the engagement with and reporting to the CEC and BoD. Areas of discussion have included risk mitigation in project development, enterprise risk level and mitigation, and new disclosure initiatives to drive transparency.

Within Equinor, it is the responsibility of the risk-owner to conclude where human rights due diligence efforts should be prioritised. Defining such priorities is based on regular risk and portfolio assessments and supported by a corporate team of human rights experts who help ensure alignment across the portfolio. In 2022, we continued to look for indications of forced labour and unacceptable working conditions in our supply chains, particularly within fabrication and construction activities across Asia and in core countries such as Brazil. Compared to previous years, risk assessments in the earlier phases of project planning were prioritised, to better inform decision making and allow for more effective mitigation. To understand risks related to our activities, we perform environmental and social impact assessments. These are an essential part of our project development process and allow for proactive consultation with stakeholders to inform our understanding of community impacts. This includes addressing potential impacts on indigenous peoples, which continue to be a priority. For certain high-risk activities, we may perform additional and specific human rights risk assessments, typically supported by external experts. During project execution, by engaging with potentially affected stakeholders through worker dialogue, we get better understanding of any potential issues and are able to respond with appropriate means of remediation where necessary. We follow up with suppliers based on identified risk, including verifications, tracking of actions and ongoing dialogue. We expect all current and future suppliers to be familiar with and apply our general human rights expectations. We include specific human rights clauses in all our contracts, based on scope and location of delivery, which typically define the risk level.

60 Equinor, Annual Report on Form 20-F 2022

As we enter 2023, a further strengthening of our management system is underway, including global working requirements for human rights due diligence and new requirements for internal reporting. We continue to build our expert-level corporate capabilities, both through the recruitment of specialists and by improving work processes to better leverage internal capacity and know how.

The introduction of a standalone Human rights statement is a direct response to the Norwegian Transparency and Human Rights Due Diligence Act and is an opportunity to broaden our external disclosure and communication on our human rights approach, risks and work. To ensure compliance with the Act, Equinor has created an internal procedure for capturing and processing information requests.

## Performance disclosure

### Labour rights and decent work

We require all new suppliers to be screened for social criteria. In line with our approach to performing risk assessments in the early phases of our projects, we assessed 283 suppliers for social impacts in 2022. From this, 154 suppliers were identified as having significant gaps. 84% of these suppliers have through closing of gaps become qualified, while the rest of the suppliers are yet to complete their improvement plans. If we find that a supplier will not implement necessary improvements, the supplier will not be awarded a contract. There were no circumstances where suppliers were not willing to improve to become qualified, and no circumstances where findings or lack of collaborative actions resulted in a need to terminate a relationship.

Aligned to our corporate priorities, we assessed conditions for workers involved in specific construction projects in Malaysia, Singapore, Thailand and China. Indicators of forced labour as defined by the International Labour Organization (ILO) were identified in one contract we are linked to, mainly related to payment of recruitment fees, retention of identity documents, and restriction of movement. This means that during 2022, we identified 61 individuals as subject to at the minimum one indicator of forced labour within our supply chains. We continued to work with our partners to provide remedy in these instances, including compensation towards undue payments. In 2022 payments were made to 1,791 previously identified workers, to the value of over USD 2 million.

### Labour rights and working conditions in the supply chain

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Human rights (HR) assessments of suppliers conducted | Equinor group | number | 24 | 30 | 37 | 50 | 75 |
| Workers interviewed | Equinor group | number | 808 | 974 | 343 | 650 | 1000 |
| Countries in which supplier HR assessments undertaken | Equinor group | number | 11 | 10 | 9 | 16 | 20 |
| Employees working with our suppliers trained (class room course) | Equinor group | number | 264 | 128 | 190 | 409 | 514 |

Equinor, Annual Report on Form 20-F 2022 61

The number of supplier assessments varies with nature and level of activity and is not necessarily comparable year-on-year. However, our approach to be more targeted towards high-risk sites and suppliers and focus on site visits and worker interviews as opposed to more traditional audits, has resulted in a gradual decrease. We do not find it relevant to set targets towards number of assessments.

Due to publicly reported concerns of serious labour exploitation in solar supply chains, we continued our task force focusing on actions to mitigate short-term and longer-term risks. Actions include increasing and requesting traceability throughout the supply chain, seeking contractual safeguards, engaging with industry initiatives, and investigating opportunities for alternative sourcing routes.

#### A step-up in shipping and oil and gas storage

During 2022, a special task force, consisting of business line representatives and human rights expertise developed specific requirements and tools to embed human rights due diligence in our shipping and oil and gas storage business. Alongside these efforts, tailormade full-day classroom training was delivered to approximately 70 business professionals.

Human rights were also a core topic at our regular Working safely with suppliers conference. Bringing shipping and storage suppliers together in Stavanger, this event includes leadership expectations, panel conversations, and roundtable discussions to explore common challenges and ways forward.

Supplier dialogue and onsite human rights assessments were performed at two yards where new-build vessels are being constructed.

#### Community risks and impacts

No potential or actual adverse impacts of indigenous peoples' rights were identified during 2022. Across our operated assets, Equinor received no eligible grievances according to our internal procedures. Issues raised which are deemed ineligible include, for example, requests for donations, sponsorships, jobs, and requests for information about collaborating or partnering with Equinor in various projects.

Together with Shell, we continued to actively manage the remaining human rights risks and impacts associated with the resettlement of 29 households and the discontinuation of farming and fishing affecting 446 households in the area identified for a potential LNG site in Lindi, Tanzania. Specifically, the focus has been on ensuring the longer-term sustainability for impacted households. Actions include the signature of a Land agreement and the development of an agricultural livelihood baseline assessment, as the preparatory stage for an agricultural livelihood restoration programme to be implemented in 2023.

Through our joint activities to develop a solar park with Scatec in Northern Brazil, we resettled two families who were previously living and working in a location with no rights to the land or formal work contracts. Through strong Equinor-led stakeholder engagement and compliance with International Finance Corporation (IFC) standards and our human rights policy, both families have taken legal ownership of their new property, including land allocation for one family who wanted to continue farming.

#### Governance and capacity building

In addition to the human rights steering committee, executive leadership engagement in 2022 included participation in several external, cross-sectoral and multi-stakeholder coalitions including a Commissioner role in the Business Commission to Tackle Inequality and board member at the WBCSD Energy Pathway Board, with focus on human rights and the just transition. There was continued engagement with industry leaders, academia and subject matter experts to share experiences and to align on good practice. Internally, general and specific capability building efforts continued through 2022, focused around new and emerging regulations, and in particular the Norwegian Transparency Act.

We continued to deliver a third-party-facilitated Human Rights in Practice course for supply chain professionals and company representatives, focused on labour rights, Ethics, Anti-Corruption and Human Rights.

#### Information requests according to the Transparency Act

In 2022, Equinor received three information requests, which were all responded to within the legislative deadline. In addition, twelve questions and requests for action or information were received but not deemed legitimate under the scope of the Transparency Act. These were treated separately on a case-by-case basis.

62 Equinor, Annual Report on Form 20-F 2022

Finally, we continued the active participation in mediations related to a tragic crane accident at a South Korean yard in 2017. The process is facilitated by the Norwegian OECD National Contact Point, following the filing of a complaint alleging breaches by several companies, including Equinor, of the OECD Guidelines for Multinational Enterprises.

## Performance evaluation

We continue, as do many, to be challenged to find meaningful and objective assessments of performance within the field of business and human rights. In 2022, as a first step towards maturing a broader performance framework, we piloted a set of internal monitoring indicators relevant to our key risks. We will continue to build on the learnings from this pilot with the aim of reporting in a more quantitative fashion in future years.

As we continue our risk-based approach to human rights due diligence within our global supply chains, we see significant risks of adverse human rights impacts, particularly related to decent work and the possibility of forced labour.

Whilst it is never satisfactory to identify substandard labour conditions, we see that our efforts to understand potential impacts earlier in the project and procurement process as a further step towards more risk avoidance and effective mitigation.

Our efforts in 2022 focused on furthering specific actions towards the construction sector, including building leverage with peers and partners, and particular efforts were made towards our midstream business including shipping and oil and gas storage. A further strengthening of our internal work processes will drive more systematic and documented due diligence across the portfolio.

Equinor, Annual Report on Form 20-F 2022 63

## 2.1.4 Tackling inequality - Diversity and inclusion

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Creating a diverse and inclusive place to work where equal opportunities and human capital development is fostered, and discrimination is not tolerated in any form. | Equinor employs a large and diverse workforce of around 22000 employees, with operations and value chains in some 30 countries. | eBusiness integrity and ethical misconduct ePolicies and legislation eWorkforce and organisation | Inclusion index score (%) • Ambition met in 2022 • Ambition not met in 2022 • Plan in place, on track to reach longer-term ambition • Plan in place, not on track to reach longer-term ambition. | ≥80 (2025) |

### Contextual introduction

Equinor has worked systematically with diversity and inclusion (D&I) since 2019. Overall we believe our performance in 2022 has been satisfactory, and we have focused our work on updating the D&I strategy, ambition and metrics that will enable us to strengthen our performance in the future. The aim is to operationalise D&I further into our business and embed in how we develop our people and engage with the societies in which we operate.

Recent years have seen a shift in the expectations from governments, governing bodies, society and employees when it comes to companies' social responsibility and role in D&I. To us, D&I aligns with our values, our focus on safety and our purpose as a company. As outlined in our Code of Conduct, we do not tolerate any discrimination or harassment of colleagues, or others affected by our operations, and require everyone to be treated with fairness, respect, and dignity. Our agreement (likestillingsavtale) between the company and union Industri Energi applies to all employees in Equinor ASA and states that we, as an employer, work to ensure all employees are treated equally regarding recruitment, pay and working conditions, training, career paths, and professional development. Equinor is committed to being transparent about our progress and we participate in several external indexes and networks. These include the SHE Index and the Bloomberg Gender Equality Index, where we have committed to integrate D&I into our business strategy and share experience and learning.

Our updated D&I ambition states 'We are a diverse and inclusive organisation where everyone feels valued and that they belong. Our D&I strategy continues to build on strengthening a safe and inclusive work environment for all and ensuring fair and equal opportunities. The strategy strengthens Equinor's social responsibility to ensure a just energy transition and builds upon the commitments we have made as part of our new value chains.

### Management approach

Our D&I strategy is based on empowering the organisation to drive D&I locally, in line with national reporting requirements and local legislative frameworks. The strategy was developed through extensive external and internal stakeholder engagement and the feedback was focused on the need for local actions, diversity representation in senior leadership, and openness to talk about diversity dimensions beyond gender. The BoD was continually kept informed about progress through formal reporting channels and meetings. Throughout 2022 the CEC members were involved in shaping the strategy, and employees, union representatives, and members of employee resource groups (ERGs) were included in strategy development. A separate working group with Norwegian union representatives was established and met four times throughout the year to discuss D&I actions and progress. The D&I strategy is owned by the Human Resource team. Throughout 2022, Equinor also collaborated with the Norwegian Equality and Anti-Discrimination Ombud to share best practice of how to embed Norwegian legal requirements into business strategy.

At Equinor, we continually work to strengthen our understanding of diversity, and we use the diversity data that is available to measure our progress. This includes gender balance, age, and nationality. We know that inclusion is the foundation to ensure a psychologically safe work environment where everyone feels valued, respected, and that they can contribute and speak up. To monitor our progress on inclusion, we established the Inclusion Index in 2019 and work systematically with initiatives that focus on our culture and inclusion. In addition to strategy development, our key D&I actions for 2022 focused on building inclusion and equity for all our employees.

ERGs are voluntary, employee-led groups that come together with the aim to create a diverse and inclusive workplace, with a particular focus on a common diversity characteristic, cause, or goal. The establishment and support for ERGs is important for Equinor to learn about opportunities and challenges linked to equality and equity, and ensure we set actions that remove barriers for individuals who identify as part of underrepresented groups. In 2022, we focused on senior sponsorship of our ERGs and formalised D&I awareness days. A governance structure for ERGs was developed and will be implemented in 2023.

64 Equinor, Annual Report on Form 20-F 2022

We continuously work on risks related to discrimination and harassment. In 2022, we identified a small increase in the number of sexual harassment cases. This increase was taken very seriously, and significant actions and initiatives were put in place. This included awareness sessions for leaders, safety moments for general use, and as a topic in the quarterly Safety Wheel. The annual global people survey (GPS) results were further analysed to determine targeted actions. The actions focused on increasing awareness of what constitutes sexual harassment, and ensuring people feel safe to speak up and report inappropriate actions and behaviour. In 2023, we intend to continue using metrics to identify signals that may imply discrimination and harassment. One such metric includes the question about 'Zero tolerance for discrimination and harassment' in the GPS which we continually monitor.

We focus on strengthening inclusion of employees who identify as LGBTQ+ and increasing allyship. In 2022, we offered inclusive language training (Rosa kompetanse) through the Norwegian Organisation for Sexual and Gender Diversity (FRI) to our HR, communication and recruitment department, and we are finding ways to provide this training to other groups of employees in 2023. Our focus on safety and inclusion for all LGBTQ+ colleagues was strengthened in line with local Pride events. Senior leadership communication, safety-focused deliverables, and employee engagement were ongoing throughout the year. The Pride Makers ERG increased its activity both internally and externally and gained more members.

As part of our renewables value chain, Equinor made commitments related to D&I which include a focus on ethnicity. This work will continue in 2023. Our ERG, Black in Equinor further grew its membership and activity that increased engagement and knowledge about ethnicity and discrimination, with the aim of strengthening inclusion. Looking to 2023 and beyond, we have identified the need to include further work on diversity dimensions as part of our D&I roadmap, such as inclusion of people with disabilities, religion, caring responsibilities, and pregnancy/parental leave. Our updated D&I strategy will help us work more systematically on inclusion across all diversity dimensions.

#### **Building a diverse pipeline**

Our focus on building a diverse employee pipeline starts with our engagement with students and young people in the locations where we operate. Through our sponsorship programmes, partnerships, and networks we aim to help shape and build a more diverse talent pool for the future. This work is also aligned with our responsibility to ensure a just energy transition. Our focus is on engaging youth and students through programmes and events that relate to science, technology, engineering, and mathematics (STEM) subjects. This includes initiatives that target girls and women.

Building a robust, sustainable, and diverse pipeline is important to us at Equinor. D&I is integrated in our people processes, from how we recruit, manage talent and succession, to leadership assessment and deployment. D&I is embedded in how we work with our people, and part of our Annual Wheel for talent and succession reviews. Diversity representation and balance is discussed when building teams, identifying talent, and building succession pipelines. Diversity is also considered when we run our leadership assessments and when selecting employees for our leadership development courses.

In 2022, we hired almost 2,000 new employees and, together with our recruitment partner, we selected a diverse pool of candidates, with particular focus on gender and nationality. We provided hiring managers with recruitment training with the aim to ensure fair and unbiased assessment of all applicants. We work systematically to be an attractive employer and, in 2022, Equinor was ranked the most attractive employer for engineering students in Norway, with an increase in score from female students. We have a 50:50 global ambition for gender and nationality (Norwegian and other than Norwegian) for our corporate graduate programme, and an ambition of a one-third female share for our apprenticeship programme in Norway. A new Human Resource IT system will be implemented throughout 2023-2024 which will give us the opportunity to further improve our recruitment processes and limit biases. We are further re-evaluating our recruitment strategy for the future, and work will commence in 2023.

Equinor, Annual Report on Form 20-F 2022 65

## Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Inclusion Index | Equinor Group | number | 77 | 77 | 78 | 77 | 76 |

## Diversity and gender balance

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Gender balance ASA (percentage female) | Equinor ASA | % | 31 | 31 | 31 | 31 | n/r |
| Gender balance total females (percentage female) | Equinor Group | % | 31 | 31 | 31 | 30 | 31 |
| Gender balance in leadership (percentage female) |  |  |  |  |  |  |  |
| - Corporate Executive Committee (CEC) | Equinor Group | % | 36 | 60 | 30 | 30 | 30 |
| - Leaders reporting to CEC | Equinor Group | % | 51 | 49 | 45 | 41 | n/r |
| - Business unit | Equinor Group | % | 37 | 38 | 35 | 36 | 35 |
| - Business sector | Equinor Group | % | 36 | 37 | 34 | 35 | 34 |
| - Business department | Equinor Group | % | 32 | 32 | 27 | 24 | 24 |
| Nationality balance total employees |  |  |  |  |  |  |  |
| - Non-Nonwegians in Corporate Executive committee (CEC) | Equinor Group | % | 9 | 40 | 10 | 20 | 20 |
| - Non-Nonwegians reporting to Corporate Executive committee | Equinor Group | % | 16 | n/r | n/r | n/r | n/r |
| - Non-Nonwegian in Business Unit leadership positions | Equinor Group | % | 28 | 29 | 35 | 31 | 27 |
| - Non-Nonwegians in Business Sector leadership positions | Equinor Group | % | 27 | 29 | 29 | 28 | 29 |
| - Non-Nonwegians in Business Department leadership positions | Equinor Group | % | 16 | 18 | 18 | 22 | 20 |
| Earnings ratio - base salary (women:men) | Equinor ASA | % | 100 | 99 | 98 | 98 | 97 |
| Earnings ratio - total compensation (women:men) | Equinor ASA | % | 87 | 86 | n/r | n/r | n/r |
| Employees per category in Norway (percentage of women) |  |  |  |  |  |  |  |
| Operation and Support | Equinor Group | % | 23 | 24 | n/r | n/r | n/r |
| Associate | Equinor Group | % | 46 | 49 | n/r | n/r | n/r |
| Professional | Equinor Group | % | 45 | 46 | n/r | n/r | n/r |
| Principal and Support | Equinor Group | % | 34 | 33 | n/r | n/r | n/r |
| Leading | Equinor Group | % | 29 | 29 | n/r | n/r | n/r |
| Manager and Executive | Equinor Group | % | 32 | 31 | n/r | n/r | n/r |

66 Equinor, Annual Report on Form 20-F 2022

### Diversity in early talent programmes

| Programme | Gender balance (female:male) |  | Nationality balance (non-Norwegian:Norwegian) |  |
| --- | --- | --- | --- | --- |
|  | Hired | Target | Hired | Target |
| Graduates 2022 | 42:58 | 50:50 | 48:52 | 50:50 |
| Apprentices 2022 | 36:64 | 30/70 1 | N/A | N/A |

$^{1}$The apprenticeship program targets are set aligned to the gender share studying technical fields in Norwegian upper secondary schools.

### Employment

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Part-time workers (share of women) | Equinor ASA | % | 73 | n/r | n/r | n/r | n/r |
| Temporary workers (share of women) | Equinor ASA | % | 34 | n/r | n/r | n/r | n/r |
| Involuntary part-time (number of employees) | Equinor ASA | number | 0 | n/r | n/r | n/r | n/r |
| Involuntary part-time (share of women) | Equinor ASA | % | 0 | n/r | n/r | n/r | n/r |

Equinor continued hiring temporary employees in 2022. The number of summer interns and apprentices, which is included in this category, was not significant (under 2%).

### Norwegian statutory parental leave, Equinor ASA 2022

|  | Number of employees | Average weeks | Median number of weeks |
| --- | --- | --- | --- |
| Female | 133 | 18 | 16 |
| Male | 465 | 12 | 13 |

The numbers above include both statutory paid and employee requested unpaid parental leave.

### Permanent employees in the Equinor group as of 31 December 2022

| Geographical region | Number of employees |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Norway | 19,082 | 18,237 | 18,238 |
| Rest of Europe | 1,243 | 1,427 | 1,381 |
| Africa | 64 | 63 | 73 |

Equinor, Annual Report on Form 20-F 2022 67

| Asia | 96 | 80 | 68 |
| --- | --- | --- | --- |
| North America | 697 | 667 | 882 |
| South America | 754 | 652 | 603 |
| Total | 21,936 | 21,126 | 21,245 |

# **Total workforce by region and employment type in the Equinor group in 2022**  
as of 31 December 2022

| Geographical region | Permanent employees | Consultants | Total workforce(1) | Consultants (%) |
| --- | --- | --- | --- | --- |
| Norway | 19,082 | 1,292 | 20,374 | 6 |
| Rest of Europe | 1,243 | 28 | 1,271 | 2 |
| Africa | 64 | 2 | 66 | 3 |
| Asia | 96 | 19 | 115 | 17 |
| North America | 697 | 52 | 749 | 7 |
| South America | 754 | 29 | 783 | 4 |
| Total | 21,936 | 1,422 | 23,358 | 6 |
| Non-OECD | 932 | 49 | 981 | 0 |

(1) Contractor personnel, defined as third-party service providers who work at our onshore and offshore operations, are not included.

## Performance evaluation

### 1. Inclusion Index

To leverage the diversity we have in Equinor, we aim to ensure a safe and inclusive culture for all. Since the establishment of the inclusion index in 2019, Equinor has used this data to determine actions and opportunities to strengthen our culture. In 2022, the inclusion index level remained at 77. Systematic follow up of these results will take place early 2023 to determine actions that aim to strengthen inclusion.

### 2. Diversity in leadership

Equinor works systematically to build a sustainable, robust, and diverse leadership pipeline that feeds through to diverse leadership teams. Our focus has been on monitoring gender balance and nationality, while continually working to set up teams that, together, represent diversity beyond these two dimensions. Our systematic focus on developing female leaders is reflected in the continued increase in female leadership over the years, with 51% females among leaders reporting to the Corporate Executive Committee in 2022. We continue to focus on representation of nationalities other than Norwegian in our leadership to ensure we represent our global operations. To strengthen our long-term systematic focus on diversity in leadership, a new D&I KPI will be introduced in 2023, measuring gender balance and nationality representation in top leadership levels. The KPI will set the expectation for leaders across Equinor to focus on diversity in their talent and succession planning. We further continue to work systematically with gender balance across our organization and have identified the need to set targets and ambitions for gender balance more locally in our organisation. This approach is part of operationalising our D&I strategy in 2023.

### 3. Diversity in talent programs

68 Equinor, Annual Report on Form 20-F 2022

Equinor continues to invest in our emerging talents through our graduate and apprenticeship programmes. We focus on diversity in our early talent programs and have set targets in terms of gender and nationality. In 2022, we welcomed 130 graduates, representing 32 nationalities. In Norway we welcomed 169 apprentices. This year we saw an increase in female apprentices with 36%, exceeding our gender target of 30% female. We plan to strengthen our gender target for next year to ensure we continue this trend in the future. We also offered a summer internship programme to 172 students, representing 20 nationalities.

#### 4. Gender pay gap

Equinor publishes the earnings ratio between males and females for both total compensation and base pay. Norwegian authorities require reporting on full breakdown of earning ratios in all major Equinor locations by Equinor's job structure every other year. Equinor will report on this data annually to strengthen transparency on our gender pay gap. For 2022, we are pleased to see that the gender pay gap for base pay is 0 for Equinor ASA. This reflects the ongoing work to ensure gender-neutral pay decisions. In Equinor ASA, we continue to see a difference in total compensation. Our analysis shows that a key driver for this differential is the higher representation of males in skilled offshore and other operational positions. These roles are typically compensated with a range of additional elements beyond base salary, such as offshore allowances or shift allowances, as well as overtime payments. Such allowances are directly linked to the specific job an individual performs, regardless of gender. The gender imbalance in these roles compared to non-operational onshore roles results in a wider pay gap for total compensation than with base salary. We have identified the need to do further analysis on the pay gap in our global locations where there is a larger gap compared to Equinor ASA. Further details on our gender pay gap reporting is available in the Equinor data hub.

Equinor has worked systematically with D&I since 2019. Overall, we believe our performance in 2022 has been satisfactory, with a focus on updating the D&I strategy, ambition and metrics relevant to further integration of D&I in our business and strengthening our future performance.

Equinor, Annual Report on Form 20-F 2022 69

## 2.2 High value

### Group analysis

2022 witnessed an unprecedented energy crisis in Europe which was exacerbated by Russia's invasion of Ukraine, causing further disruption to the energy markets. Tight energy markets, coupled with increased demand, have led to a prolonged period of extremely high commodity prices, in particular gas which peaked at around 90 USD/MMBtu in August 2022.

In response to the conflict initiated in February 2022, Equinor took decisive action to withdraw from the Russian market and exit all assets in the country. This resulted in an impairment recognised in relation to the Russian assets of USD 1,083 million. All exit activities were concluded within the year, and Equinor has not planned for any new investments in the country as part of its future strategy.

During the year, Equinor achieved some notable operational milestones, including the restart of Snehvit and Peregrino in mid-year and Peregrino phase 2 coming on stream in the fourth quarter. All of which provided strong contributions towards offsetting the loss of production from the Russia exit.

In response to the energy crisis in Europe, gas production was accelerated on some NCS assets due to a change from gas injection to gas export. This significantly impacted the gas production for the year from E&P Norway, increasing by 8%, and also contributed to a global 2% increase in gas production for 2022 compared to 2021.

Despite the increase in gas production, restart activity and new assets coming on stream, total liquids and gas production reduced versus 2021. Equinor's exit from Russia as announced early in 2022 and turnaround activity in the US during the year, coupled with the prior year's divestment of Bakken, resulted in reduced production levels for the full year 2022 compared to the prior year.

### Results

| Condensed income statement under IFRS (in USD million) | For the year ended 31 December 2022 | 2021 | Change |
| --- | --- | --- | --- |
| Revenues | 149,004 | 88,744 | 68% |
| Net income/(loss) from equity accounted investments | 620 | 259 | >100% |
| Other income | 1,182 | 1,921 | (38%) |
| Total revenues and other income | 150,806 | 90,924 | 66% |
| Purchases [net of inventory variation] | (53,806) | (35,160) | 53% |
| Operating, selling, general and administrative expenses | (10,593) | (9,378) | 13% |
| Depreciation, amortisation and net impairment losses | (6,391) | (11,719) | (45%) |
| Exploration expenses | (1,205) | (1,004) | 20% |
| Net operating income/(loss) | 78,811 | 33,663 | >100% |
| Net financial items | (207) | (2,080) | 90% |
| Income/(loss) before tax | 78,604 | 31,583 | >100% |
| Income tax | (49,861) | (23,007) | >100% |
| Net income/(loss) | 28,744 | 8,576 | >100% |

70 Equinor, Annual Report on Form 20-F 2022

Significantly elevated realised prices and optimised product split have balanced the reduced production levels and are responsible for the significant increase in **net operating income** for the full year 2022 relative to 2021.

Strong results were recorded from European gas and power sales optimisation and trading, as well as high refining margins and high clean spark spread positively contributing to the overall business results in 2022 relative to the same periods in the prior year.

While price realisation has driven an increase in margins, Equinor has also witnessed inflationary pressures increasing its **operating expenses**. Costs pertaining to electricity, well maintenance and environmental taxes were the main contributors to this increase. The growth in **operating expenditure** is partially masked by the strengthening of the USD against the NOK.

During 2022 **depreciation, amortisation and net impairment losses** reduced by USD 5,328 million to USD 6,391 million. This movement included a USD 3,339 million net impairment reversal recognised in the year which was mainly due to updated estimates of value in use of property, plant and equipment impacted by internal forecast on cost, production profiles and commodity prices. The impairment recognised in the E&P International segment related to Equinor's decision to exit Russia was more than offset by impairment reversals primarily related to E&P Norway price changes and gas export strategy, E&P USA Gulf of Mexico assets, E&P International production optimisation profile on Mariner and refinery margin assumptions in the MMP segment. For more information, see note 14 to the Consolidated financial statements.

The strengthening of the USD against the NOK significantly impacted **net financial items** in the year. The positive development of USD 1,873 million was mainly due to a net foreign exchange gain of USD 2,088 million in 2022, driven by the strengthening of the USD against NOK, compared to a gain of USD 47 million in 2021. In 2022, interest income and other financial items were USD 1,070 million higher than in 2021 due to an increase in short-term interest rates. This was offset by an increase in losses on financial derivative instruments of USD 1,037 million, resulting from an increase in long-term interest rates.

**Income taxes** increased from USD 23,007 million in 2021 to USD 49,861 million in 2022. This is equivalent to a positive tax rate of 63.4% for 2022, reduced from 72.8% in 2021.

After a history of significant losses, Equinor are now recording profits in the US. Projected future taxable income demonstrates that it is probable that the unused tax losses carried forward could be utilised in the near future. The tax value of the unused accumulated losses has been recognised as a deferred tax asset of USD 2.7 billion, with a corresponding decrease in income taxes of USD 2.8 billion resulting in a low reported effective tax rate compared to last year. For further information see note 11 Income taxes to the Consolidated financial statements.

A high net income of USD 28,744 million was recorded for 2022 compared to USD 8,576 million for 2021 and a net loss of USD 5,496 million in 2020.

#### Capital distribution

The strong financial performance of 2022 allowed Equinor to increase its quarterly dividend to total USD 2,814 million ordinary dividends in the year and USD 6,247 million extraordinary dividends (2021: 2,939 million annual ordinary dividend).

| Fiscal year | Ordinary dividend per share (in USD) |  |  |  | Sum | Extraordinary dividend per share (in USD) |  |  |  | Sum |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 |  | Q1 | Q2 | Q3 | Q4 |  |
| 2020 | 0.09 | 0.09 | 0.11 | 0.12 | 0.41 | - | - | - | - | - |
| 2021 | 0.15 | 0.18 | 0.18 | 0.20 | 0.71 | - | - | - | 0.20 | 0.20 |
| 2022 | 0.20 | 0.20 | 0.20 | 0.30 | 0.90 | 0.20 | 0.50 | 0.70 | 0.60 | 2.00 |

For the fourth quarter of the year, the BoD proposes to the annual general meeting a cash dividend of USD 0.30 per share, and an extraordinary quarterly dividend of USD 0.60 per share. Considering the proposed dividend, USD 18,485 million will be allocated to retained earnings in the parent company.

For 2022, Equinor initiated a USD 5,000 million share buy-back programme which was increased to USD 6,000 million later in the year. The 2022 share buy-back programme started with the first tranche in February 2022 and ended with the fourth tranche, which was completed in January 2023. The Norwegian State share related to the second, third and fourth tranches of the 2022 share buy-back programme and the first tranche of the 2023 share buy-back programme, amounting to USD 4,020 million, will be redeemed in 2023. Redemption is subject to approval in the annual general meeting in May 2023.

For further information see note 20 Shareholders' equity and dividends to the Consolidated financial statements.

Equinor, Annual Report on Form 20-F 2022 71

## Review of cash flows

### Consolidated statement of cash flows

| (in USD million) | Full year 2022 | 2021 |
| --- | --- | --- |
| Cash flows provided by operating activities | 35,136 | 28,816 |
| Cash flows used in investing activities | (15,863) | (16,211) |
| Cash flows provided by/(used in) financing activities | (15,414) | (4,836) |
| Net increase/(decrease) in cash and cash equivalents | 3,860 | 7,768 |

### Cash flows provided by operating activities

Total operating cash flow has increased from USD 28,816 million in 2021 to USD 35,136 million in 2022. This increase is due to strong financial results primarily driven by high commodity prices witnessed throughout the year combined with stable production, which is partially offset by a corresponding increase in tax payments of USD 35,268 million.

### Cash flows used in investing activities

Cash flow used in investing activities has remained relatively consistent with the prior year.

### Cash flows used in financing activities

A significant increase in shareholder capital distribution contributed to cash flow used in financing activities, increasing by USD 10,577 million from USD 4,836 million in 2021 to USD 15,414 million in 2022. In addition, Equinor increased payment of short-term debt, and experienced increased collateral payments relative to the prior year due to increased margin requirements for exchange-traded derivatives.

72 Equinor, Annual Report on Form 20-F 2022

## Balance sheet and financial indicators

### Non-current assets

The sum of equity-accounted investments and non-current segment assets was USD 64,414 million for the year ending 31 December 2022, compared to USD 71,213 million for the year ending 31 December 2021. The decrease in non-current assets primarily relates to increased discount rates and strengthening of the USD versus the NOK.

### Financial indicators

| (in USD million) | For the year ended 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Gross interest-bearing debt 1) | 32,168 | 36,239 |
| Net interest-bearing debt before adjustments | (13,288) | 867 |
| Net debt to capital employed ratio 2) | (32.6%) | 2.2% |
| Net debt to capital employed ratio adjusted, including lease liabilities 3) | (14.3%) | 7.7% |
| Net debt to capital employed ratio adjusted 3) | (23.9%) | (0.8%) |
| Cash and cash equivalents | 15,579 | 14,126 |
| Current financial investments | 29,876 | 21,246 |

1) Defined as non-current and current finance debt.

2) As calculated based on IFRS balances. Net debt to capital employed ratio is the net debt divided by capital employed. Net debt is interest-bearing debt less cash and cash equivalents and current financial investments. Capital employed is net debt, shareholders' equity and minority interest.

3) In order to calculate the net debt to capital employed ratio adjusted, Equinor makes adjustments to capital employed as it would be reported under IFRS. Restricted funds held as financial investments in Equinor Insurance AS and Collateral deposits are added to the net debt while the lease liabilities are taken out of the net debt.

Equinor, Annual Report on Form 20-F 2022 73

#### **Gross interest-bearing debt**

Gross interest-bearing debt was USD 32.2 billion and USD 36.2 billion at 31 December 2022 and 2021, respectively. The USD 4.1 billion net decrease from 2021 to 2022 was due to the decline in current and non-current finance debt and lease liabilities. Current finance debt and lease liabilities decreased by USD 768 million, mainly due to a decrease in the utilisation of the US Commercial Paper programme, offset by an increase in the current portion of long-term debt, as four bonds will be repaid in 2023. Non-current finance debt decreased by USD 3.3 billion due to reclassification of non-current debt to current debt, currency effects and one repaid bond in 2022 of USD 0.3 billion. The weighted average annual interest rate on finance debt was 3.29% and 3.33% at 31 December 2022 and 2021, respectively. Equinor's weighted average maturity on finance debt was nine years at 31 December 2022 and ten years at 31 December 2021.

#### **Net interest-bearing debt**

Net interest-bearing debt before adjustments was negative USD 13.3 billion and positive USD 0.9 billion at 31 December 2022 and 2021, respectively. The decrease of USD 14.2 billion from 2021 to 2022 was mainly related to an increase in cash and cash equivalents of USD 1.4 billion, a USD 8.6 billion increase in current financial investments and a decrease in gross interest-bearing debt of USD 4.1 billion.

#### **The net debt to capital employed ratio***

The net debt to capital employed ratio* before adjustments was -32.6% and 2.2% in 2022 and 2021, respectively.

The net debt to capital employed ratio adjusted* was -23.9% and -0.8% in 2022 and 2021, respectively.

The 34.8 percentage point decrease in net debt to capital employed ratio* before adjustments from 2021 to 2022 was mainly related to the reduction of net interest-bearing debt of USD 14.2 billion.

The 23.1 percentage points decrease in net debt to capital employed ratio adjusted* from 2021 to 2022 was related to the decline in net interest-bearing debt adjusted of USD 10.1 billion, offset by an increase in capital employed adjusted* of USD 4.9 billion.

#### **Return on average capital employed (ROACE)***

The return on average capital employed (ROACE)* was 55.2% in 2022, compared to 22.7% in 2021. The change from 2021 was mainly due to the increase in adjusted earnings* after tax.

#### **Cash, cash equivalents and current financial investments**

Cash and cash equivalents were USD 15.6 billion and USD 14.1 billion at 31 December 2022 and 2021, respectively. See note 19 Cash and cash equivalents to the Consolidated financial statements for information concerning restricted cash. Current financial investments, which are part of Equinor's liquidity management, amounted to USD 29.9 billion and USD 21.2 billion at 31 December 2022 and 2021, respectively.

#### **Continued operation**

In accordance with §3-3a of the Norwegian Accounting Act, the board of directors confirms that the going concern assumption on which the financial statements have been prepared is appropriate.

## **Group outlook**

- **Organic capital expenditures*** are estimated at USD 10-11 billion for 2023 and an annual average of around USD 13 billion for 2024-2030.
- **Production** for 2023 is estimated to be around 3% above the 2022 level.
- Equinor's ambition is to keep the **unit of production cost** in the top quartile of its peer group.
- **Scheduled maintenance activity** is estimated to reduce equity production by around 45 mboe per day for the full year of 2023.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create future value, gas off-take, the timing of new capacity coming on stream and operational regularity and levels of industry product supply, demand and pricing represent the most significant risks related to the previous production guidance. Our future financial performance, including cash flow and liquidity, will be affected by the extent and duration of the current market conditions and the development in realised prices, including price differentials and other factors discussed elsewhere in the report. For further information, see section 5.10. Forward-looking statements.

* USD/NOK exchange rate assumptions of 10.

74 Equinor, Annual Report on Form 20-F 2022

## Operational data

| Operational data | For the year ended 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 22-21 change | 21-20 change |
| Prices |  |  |  |  |  |
| Average Brent oil price (USD/bbl) | 101.2 | 70.7 | 41.7 | 43% | 70% |
| E&P Norway average liquids price (USD/bbl) | 97.5 | 67.6 | 37.4 | 44% | 81% |
| E&P International average liquids price (USD/bbl) | 92.0 | 67.6 | 38.1 | 36% | 77% |
| E&P USA average liquids price (USD/bbl) | 81.0 | 58.3 | 31.3 | 39% | 88% |
| Group average liquids price (USD/bbl) | 94.1 | 66.3 | 36.5 | 42% | 82% |
| Group average liquids price (NOK/bbl) | 906 | 570 | 343 | 59% | 66% |
| E&P Norway average internal gas price (USD/mmbtu) | 31.2 | 14.43 | 2.26 | >100% | >100% |
| E&P USA average internal gas price (USD/mmbtu) | 5.6 | 2.89 | 1.32 | 92% | >100% |
| Average invoiced gas prices - Europe (USD/mmbtu) | 33.4 | 14.60 | 3.58 | >100% | >100% |
| Average invoiced gas prices - North America (USD/mmbtu) | 5.9 | 3.22 | 1.72 | 83% | 87% |
| Refining reference margin (USD/bbl) | 14.5 | 4.0 | 1.5 | >100% | >100% |
| Entitlement production (mboe per day) |  |  |  |  |  |
| E&P Norway entitlement liquids production | 605 | 643 | 630 | (6%) | 2% |
| E&P International entitlement liquids production | 203 | 207 | 236 | (2%) | (12%) |
| E&P USA entitlement liquids production | 114 | 128 | 163 | (11%) | (22%) |
| Group entitlement liquids production | 922 | 978 | 1,029 | (6%) | (5%) |
| E&P Norway entitlement gas production | 782 | 721 | 685 | 8% | 5% |
| E&P International entitlement gas production | 32 | 40 | 42 | (10%) | (6%) |
| E&P USA entitlement gas production | 165 | 193 | 181 | (14%) | 6% |
| Group entitlement gas production | 980 | 954 | 908 | 3% | 5% |
| Total entitlement liquids and gas production | 1,901 | 1,931 | 1,938 | (2%) | (0%) |
| Equity production (mboe per day) |  |  |  |  |  |
| E&P Norway equity liquids production | 605 | 643 | 630 | (6%) | 2% |
| E&P International equity liquids production | 281 | 291 | 303 | (4%) | (4%) |
| E&P USA equity liquids production | 127 | 142 | 187 | (11%) | (24%) |
| Group equity liquids production | 1,013 | 1,076 | 1,120 | (6%) | (4%) |
| E&P Norway equity gas production | 782 | 721 | 685 | 8% | 5% |
| E&P International equity gas production | 47 | 51 | 49 | (7%) | 5% |
| E&P USA equity gas production | 197 | 231 | 216 | (15%) | 7% |
| Group equity gas production | 1,026 | 1,003 | 950 | 2% | 6% |
| Total equity liquids and gas production | 2,039 | 2,079 | 2,070 | (2%) | 0% |
| Liftings (mboe per day) |  |  |  |  |  |
| Liquids liftings | 914 | 980 | 1,050 | (7%) | (7%) |
| Gas liftings | 1,009 | 989 | 941 | 2% | 5% |
| Total liquids and gas liftings | 1,923 | 1,969 | 1,991 | (2%) | (1%) |
| Production cost (USD/boe) |  |  |  |  |  |
| Production cost entitlement volumes | 6.5 | 5.8 | 5.1 | 12% | 14% |
| Production cost equity volumes | 6.1 | 5.4 | 4.8 | 13% | 13% |
| Power generation |  |  |  |  |  |
| Total power generation (GWh) Equinor share | 2,661 | 1,562 | 1,662 | 70% | (6%) |
| Renewable power generation (GWh) Equinor share | 1,649 | 1,562 | 1,662 | 6% | (6%) |

Equinor, Annual Report on Form 20-F 2022 75

## Sales volumes

Sales volumes include lifted entitlement volumes, the sale of SDFI volumes and the marketing of third-party volumes. In addition to Equinor's own volumes, we market and sell oil and gas owned by the Norwegian State through the Norwegian State's share in production licences. This is known as the State's Direct Financial Interest or SDFI. For additional information, see section 5.1 Board statement on corporate governance - subsection 4. Equal treatment of shareholders and transactions with close associates, and note 7 Total revenues and other income to the Consolidated financial statements.

The following table shows the SDFI and Equinor sales volume information on crude oil and natural gas for the periods indicated.

| Sales Volumes | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Equinor 1) |  |  |  |
| Crude oil (mmbbls) 2) | 334 | 358 | 384 |
| Natural gas (bcm) | 58.6 | 57.4 | 54.8 |
| Combined oil and gas (mmboe) | 702 | 719 | 729 |
| Third-party volumes 3) |  |  |  |
| Crude oil (mmbbls) 2) | 284 | 286 | 318 |
| Natural gas (bcm) | 7.2 | 7.0 | 8.1 |
| Combined oil and gas (mmboe) | 330 | 330 | 369 |
| SDFI assets owned by the Norwegian State 4) |  |  |  |
| Crude oil (mmbbls) 2) | 132 | 143 | 132 |
| Natural gas (bcm) | 42.9 | 41.7 | 38.4 |
| Combined oil and gas (mmboe) | 402 | 406 | 374 |
| Total |  |  |  |
| Crude oil (mmbbls) 2) | 750 | 787 | 835 |
| Natural gas (bcm) | 108.7 | 106.2 | 101.3 |
| Combined oil and gas (mmboe) | 1,434 | 1,455 | 1,472 |

1) The Equinor volumes included in the table above are based on the assumption that volumes sold were equal to lifted volumes in the relevant year. Volumes lifted by E&P International or E&P USA but not sold by MMP, and volumes lifted by E&P Norway, E&P International or E&P USA and still in inventory or in transit may cause these volumes to differ from the sales volumes reported elsewhere in this report by MMP.

2) Sales volumes of crude oil include NGL and condensate. All sales volumes reported in the table above include internal deliveries to our manufacturing facilities.

3) Third-party volumes of crude oil include both volumes purchased from partners in our upstream operations and other cargos purchased in the market. The third-party volumes are purchased either for sale to third parties or for our own use. Third party volumes of natural gas include third-party LNG volumes.

4) The line item SDFI assets owned by the Norwegian State includes sales of both equity production and third-party.

76 Equinor, Annual Report on Form 20-F 2022

## Sales prices

The following table presents realised sales prices.

| Realised sales prices | Norway | Eurasia excluding Norway | Africa | Americas |
| --- | --- | --- | --- | --- |
| Year ended 31 December 2022 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 102.0 | 89.7 | 100.9 | 90.0 |
| Average sales price NGL in USD per bbl | 64.2 | NA | 59.7 | 34.9 |
| Average sales price natural gas in USD per mmBtu | 33.4 | 25.8 | 8.4 | 5.9 |
| Year ended 31 December 2021 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 70.0 | 67.0 | 71.0 | 65.7 |
| Average sales price NGL in USD per bbl | 52.5 | 51.8 | 48.9 | 29.5 |
| Average sales price natural gas in USD per mmBtu | 14.6 | 15.4 | 6.9 | 3.2 |
| Year ended 31 December 2020 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 39.7 | 37.4 | 41.1 | 36.1 |
| Average sales price NGL in USD per bbl | 25.6 | 30.3 | 23.3 | 11.8 |
| Average sales price natural gas in USD per mmBtu | 3.6 | 3.2 | 3.9 | 1.7 |

Equinor, Annual Report on Form 20-F 2022 77

# High value - overview of material topics

Our strategic pillar, 'High Value', reflects our commitment to prioritising value in everything we do. This includes creating value for our customers, shareholders and broader society. Value can be measured by "how" we perform and operate in addition to "what" we produce and achieve.

In this chapter, the strategic pillar of High value is covered by the material topics: Efficient and predictable operations, Profitable portfolio, Value creation for society, and Integrity and anti-corruption. The indicators in the table shown are key in monitoring Equinor's value performance.

| HIGH VALUE |  |  |  |  |
| --- | --- | --- | --- | --- |
| KPIMONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
|  |  |  | 2022 | 2021 |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (mL/ton per day) | 2022 outlook guiding '2% above 2021 1,2 | □ | Growth 0% (2020) | 2079 |
| Production cost equity volumes (USD/hour) | <5 USD/bbl (2021-2026) 1,2 | □ | 5.6 | 5.4 |
| PRIORITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030) 1,2 | □ | 55.2 | 22.7 |
| Relative Total Shareholder Return (Relative TSR) (quartile) | Above average in ranking among peers 1 | □ | 6 of 12 | 2 of 12 |
| Relative ROACE* (peer group rank) | First quartile in ranking among peers 1 | □ | 1 of 12 | 2 of 12 |
| Organic Capex* (billion USD) | 2022 outlook guiding USD 10 1 | □ | 8.3 | 7.9 |
| VALUE CREATION FOR SOCIETY |  |  |  |  |
| Payments to governments (billion USD) | Not applicable |  | 49.2 | 11.8 |
| Share of procurement spend locally (%) | Not applicable |  | 88.7 | 91.4 |
| INTEGRITY AND ANTI-CORRUPTION |  |  |  |  |
| Confirmed corruption cases (number of) | 0 (2022) | □ | 0 | 0 |
| Employees who signed off the Code of Conduct (%) | ≥95% (2022) | □ | 95 | 94 |
| Text in bold: Key performance indicator: 1 Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU). 2 USD 2021 real base. 3 Released for portfolio measures. 4 Based on 2022 CMU price scenario (95 USD/bbl). 5 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022. □ Ambition met in 2022. □ Ambition not met in 2022. □ Plan in place, on track to reach longer-term ambition. □ Plan in place, not on track to reach longer-term ambition. |  |  |  |  |

# Efficient and predictable operations

The core of our business is energy provision to our customers. Optimal operational performance to drive production and how we get energy to our customers ultimately drives the business and serves the most people. In the current situation of economic crisis and tight energy supply with high demand efficient and predictable operations are of particular importance. Equity production reflects our ability to produce at a high level over time and through different phases of activity. Production cost equity volumes indicate how cost efficient our production operations are, thereby assessing the value of our volumes.

# Profitable portfolio

To ensure the business is future-proof, robust and attractive to our shareholders now and through the energy transition, our portfolio and the development of that portfolio needs to be carefully managed and evaluated to ensure profitability now and for the future. Organic capex* tracks our investment into our portfolio, which is carefully spent using targeted investment criteria. Return on average capital employed* and relative shareholder return are important ways to track value generated from the portfolio and our ability to competitively distribute that to our shareholders.

78 Equinor, Annual Report on Form 20-F 2022

#### Value creation for society

Equinor can influence socioeconomic development by creating job opportunities, local spending, and taxes. Return of value to the wider community can be assessed through taxes paid, of which Equinor contributes significantly due to high earnings on the NCS and a share of procurement spent locally.

#### Integrity and anti-corruption

Integrity and anti-corruption signify the importance Equinor places on 'how' we deliver in a high-value manner. Ethical business practices across the company's global reach are of paramount importance, measured through confirmed corruption cases. For Equinor to speak with one voice in all we do, we need to ensure alignment on our values, which is monitored through a code of conduct sign-off.

The Equinor strategy assumes a sustainable high value strategic pillar achieved through the strategic priorities focusing on optimising oil and gas initiatives while focusing on high value growth in renewables and new market opportunities in LCS.

Equinor, Annual Report on Form 20-F 2022 79

## 2.2.1 Efficient and predictable operations

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Optimisation and management of operations, turnarounds, and technological innovation. | Europe is dependent on companies which can take the role as a reliable and robust energy producer, more than ever before. Equinor can impact energy security and sustainability in Europe, both in the short- and medium-term. | eProject delivery and operations eJoint arrangements and contractors eCompetition and technological innovation eDigital and cyber security eCrisis management, business continuity and insurance coverage eHealth, safety and environmental factors | Equity production liquids and gas (mboe per day) | 2022 outlook guiding 2% above 2021 |
|  |  |  | Production cost equity volumes (USD/boe) | <5 USD/bbl (2021-2026) |
|  |  |  | e Ambition met in 2022 e Ambition not met in 2022 e Plan in place, on track to reach longer-term ambition. e Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |

### Contextual introduction

Equinor works to safeguard efficient and reliable activities with a reduced carbon footprint per barrel, from exploration to project development and production, together with partners and suppliers. We focus on developing prospects with a low carbon intensity near existing fields and infrastructure to optimise value creation and prolong field lifetime. Always with safety and security as the highest priority, we deliver competitive projects and world-class drilling performance. Through our technology experience, we create significant value in project development. Our technology development and implementation will be important for operational cost-efficiency and decarbonisation going forward.

In response to the energy crisis, Equinor liaised with partners and Norwegian authorities to increase gas exports to Europe through adjusted production permits and reduced gas injection. Underpinned by safe and dependable operations, the efforts made it possible to increase the natural gas output from the NCS significantly during 2022.

Equinor executes a significant project portfolio and supports value creation through continued efficient and predictable operations. Solid operational performance is delivered with high gas production from the NCS supporting European energy security. Peregrino in Brazil and Hammerfest LNG are safely back in operation, and production is resumed from Njord A and B. New important projects on stream are Johan Sverdrup phase 2 on the NCS and Peregrino phase 2 in Brazil. The first power from the floating offshore wind farm Hywind Tampen was produced in the fourth quarter.

### Management approach

#### Exploration

Continued exploration of hydrocarbons is important to maintaining long-term energy deliveries. On the NCS, we increasingly explore mature areas where discoveries can be tied into existing infrastructure. Utilising previous investments contribute to improved value creation and lower emission. Internationally we prioritise significant wells in growth and frontier basins.

Equinor was awarded 26 new licences in mature areas on the NCS in January 2022 and 26 licences in January 2023. We drill wells based on the following main criteria: high profitability, short payback time and low carbon intensity. In addition, meeting a rising gas demand from Europe, including as input to sectors such as blue hydrogen production, will require exploration for new gas volumes.

Several developments tied back to existing infrastructure were brought on stream over the last years, such as the Snahvit satellite Askeladd in 2022 and Troll phase 3 in 2021. Subsea tieback developments Kristin South, Halten East, Irpa and Verdande are underway to add value and extend the field lifetime.

#### Project development

Equinor is responsible for a portfolio of 28 projects in execution, encompassing oil and gas projects combined with electrification projects to contribute to the energy transition.

We will reinvest in our oil and gas activity in an attractive project portfolio with an average breakeven of USD 35 per barrel and a short average payback time. We also continue to invest and grow our project portfolio within renewables and low-carbon solutions. A milestone is the first power expected in 2023 for Dogger Bank, the world's largest offshore wind farm.

80 Equinor, Annual Report on Form 20-F 2022

We use standardised and digitised solutions to ensure the delivery of competitive projects with long-term value creation and maintain a rigorous quality and cost focus. With the pursuit of 'the perfect well,' a modern rig fleet and capitalising on economies of scale, we demonstrate world-class drilling performance. In external benchmarks, Equinor is ranked highly on the facility cost index for completed projects and drilling cost per metre.

We mature promising prospects towards sanction, focusing on economically viable projects with robust technical solutions and the lowest possible emissions.

Improvement activities are undertaken to ensure that our project deliveries remain competitive towards a digital and carbon-neutral future. The investment projects are developed in project development centres that strengthen the use of standardised products and tasks, enabling consistent use of best practices driving continuous learning and improvement for project development, together with good capacity utilisation. Fit-for-purpose digital solutions contributing to efficient and transparent decision-making and collaboration are implemented in projects with training and roll-out in the project development centres.

We work to deploy standard procurement specifications and standardised solutions in projects to reduce costs and improve efficiency, seeking to realise portfolio synergies and unlock value through simplification, standardisation and industrialisation. Digital well deliveries and automated well control are being implemented - new ways of working to improve safety, reduce carbon footprint and standardise the best performance. Also, we work closely with suppliers through strategic collaboration to deliver projects successfully.

Technology is an enabler in making projects cost-efficient and profitable. To contribute to efficient and reliable operations with lower CO2 emissions, we aim to deploy innovative technologies in field development within both offshore oil and gas, renewables and low-carbon solutions. Recent examples are Johan Sverdrup's use of 'digital twin' and the innovative Hywind technology developed by Equinor and deployed in floating wind developments, such as Hywind Scotland and Hywind Tampen, the first floating offshore wind farm to supply offshore oil and gas installations in operation.

# Operations

We aim to ensure safe and efficient operations, maximising the value potential of our assets worldwide. We transform the NCS using digital and carbon-efficient solutions with electrification on installations.

The operations of our fields on the NCS are supported by three onshore integrated operations centres (IOCs), contributing to optimisation and increased production efficiency. Digital tools ensure faster and better decisions through close interaction between offshore operations and the onshore support centre. Furthermore, the centres strengthen our collaboration with suppliers and partners, enhance the knowledge transfer across the organisation, and benefit from economies of scale. The IOCs contribute to safe and optimal operations of our installations, identifying challenges and preventing shutdowns.

A separate unit within Equinor works to provide value creation for late-life fields. Innovative approaches, such as using ambulating teams has resulted in efficiency gains and eliminated backlog of critical maintenance.

We create value by increasing recovery and prolonging field life from our producing assets, capitalising on existing infrastructure. Projects brought on stream and tied into existing infrastructure in 2022 were the fifth Johan Sverdrup platform, the revamped Njord A and storage vessel, the third Peregrino wellhead platform and a Roncador IOR project in Brazil. The Peregrino field in Brazil and Snahvit in the Barents Sea were safely brought back into production, and the refurbished Hammerfest LNG plant resumed operations after having been suspended following the Melkøya fire in September 2020. Production started on the Vito deepwater platform, operated by Shell, in early 2023.

We worked with partners and government authorities throughout 2022 to increase gas exports to Europe through increased production permits, reduced gas injection, and optimisation of NGL to increase gas calorific value. The flexibility in our gas portfolio allowed us to transport and sell gas where it was most needed.

Laying the ground for cost-efficient and sustainable operations in the future, we electrify offshore and onshore installations. The electric power supply is provided either through power cables from shore, or by offshore wind turbines, and is operational at several fields on the NCS. The Johan Sverdrup field, brought into production in 2019, emits only 0.67 kg CO2 per barrel, compared to the global average of 15 kg per barrel, mainly owing to power supply from shore. The Hywind Tampen floating wind farm to supply Gullfaks and Snorre started production in 2022. Work is underway to electrify other NCS fields.

Leveraging 25 years of operational experience and technology within carbon capture and storage (CCS) on the NCS, we work to develop solutions for CCS, expected to play a major part in the Norwegian climate solution. The Northern Lights infrastructure project for CO2 transport and storage is well underway, and the development of a CO2 storage at Smeaheia is under consideration.

Equinor, Annual Report on Form 20-F 2022 81

## Performance disclosure

| KPI/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
| --- | --- | --- | --- | --- |
|  |  |  | 2022 | 2021 |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (mboe per day) | 2022 outlook guiding 2% above 2021 1,2 | n | Growth 0% (2039) | 2079 |
| Production cost equity volumes (USD/boe) | <5 USD/bbl (2021-2026) 1,2 | n | 5.6 2 | 5.4 |
| Text in bold: Key performance indicator: 1 Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU). 2 USD 2021 real base. 3 Rebased for portfolio measures. 4 Based on 2022 CMU price scenario (65 USD/bbl). |  |  |  |  |
| n Ambition met in 2022. n Ambition not met in 2022. n Plan in place, on track to reach longer-term ambition. n Plan in place, not on track to reach longer-term ambition. |  |  |  |  |

## Performance evaluation

### Oil and Gas production

Total equity liquids and gas production was 2,039 mboe and 2,079 mboe per day in 2022 and 2021, respectively. Divestment of assets, including exit from Russian assets, and natural decline contributed to the decrease. The Snaftvit, Peregrino and Njord fields resumed production in 2022, and Johan Sverdrup phase 2 and Peregrino phase 2 started production in the fourth quarter of 2022. Lower liquid production was partially offset by increased gas production, as Equinor implemented measures to increase deliveries of natural gas to Europe.

Rebased for portfolio measures the equity production was flat from 2021 to 2022. The result is below the guided outlook ambition of a 2% production increase, mainly due to later startup of new fields than assumed in the initial guiding forecast, and operations.

Total entitlement liquids and gas production was 1,901 mboe per day in 2022 compared to 1,931 mboe in 2021. The production was mainly influenced by the factors mentioned above.

Over time, the volumes lifted and sold will equal the entitlement production, but they may be higher or lower in any period due to differences between the capacity and timing of the vessels lifting our volumes and the actual entitlement production during the period.

### Unit Production Cost (UPC)

The equity Unit Production Cost (UPC) for 2022 ended on 6.1 USD/bbl (compared towards the 2021 USD real base outlook assumptions, the 2022 UPC ended at 5.6 USD/bbl). The increase in UPC from 2021 to 2022 is mainly related to increase in the energy cost and CO2 cost. In addition, there has been portfolio adjustments resulting in increased equity share in Statfjord licence, being a late life field with high UPC.

The UPC ambition communicated at Capital Market Update (CMU) in February 2023 is to keep the UPC below 6.0 USD/bbl (USD 2022 real term) in the period from 2023-2026.

### Renewables Power Generation

From 2021 to 2022, the total renewable power generation increased by 5.6 % (from 1,562 GWh to 1,649 GWh). The increased power production is mainly due to a full year operation of the Guanzuli IIA solar plant in Argentina.

82 Equinor, Annual Report on Form 20-F 2022

## 2.2.2 Profitable portfolio

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Portfolio development and composition to ensure ongoing profitability with risk assessment and management of current asset base. | Having a profitable and robust portfolio enables Equinor to provide long-term economic value through job creation, tax contributions and providing energy. | a) Prices and markets b) Hydrocarbon resource base and low carbon opportunities c) Capital structure, finance and liquidity d) Trading and supply activities e) Policies and legislation f) Climate change and transition to lower carbon economy | Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030) |
|  |  |  | Relative Total Share-holder Return (Relative TSR) (quartile) | Above average in ranking among peers |
|  |  |  | Relative ROACE* (peer group rank) | First quartile in ranking among peers |
|  |  |  | Organic Capex* (billion USD) | 2022 outlook guiding USD 10 |
|  |  |  | = Ambition met in 2022. = Ambition not met in 2022. = Plan in place, on track to reach longer-term ambition. = Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |

### Contextual Introduction

Equinor's portfolio delivered strong profits based on our ability to maintain stable delivery of oil and gas during an energy crisis in Europe.

The cost inflation and the capacity constraints in the heated supplier market will likely make it more challenging to sanction and to execute new projects going forward. The overall cost trend was stable within sanctioned project developments through 2022, due to the price conditions in existing contracts. However, the non-sanctioned project portfolio will likely be exposed to major market effects going forward. Most cost increases are expected to come from the cost of equipment and raw materials, reflecting higher commodity prices and an increasingly heated supplier market. Following the market volatility and unpredictability, suppliers are building increased profit risk elements into the contract quotes.

In order to maintain a profitable portfolio and reliably supply energy through the transition, Equinor is transforming its portfolio to become a broad energy company. Equinor believes that by being a leading company in the energy transition, we can not only reduce our own CO2 footprint, but also maximise value for both society and our shareholders. Building a portfolio that has robust profitability through future cycles will be essential for us to deliver on our Energy Transition Plan and provide shareholder value.

### Management approach

#### Portfolio composition

Our ambition is to build a focused, carbon efficient oil and gas portfolio complemented with renewable and low-carbon solutions to create long-term value while supplying reliable energy with progressively lower emissions. Future oil and natural gas prices are uncertain and Equinor believes it is positioned to capture the upside and withstand the downside.

Equinor, Annual Report on Form 20-F 2022 63

As illustrated by the following graph, the share of gross capex* in renewables and low-carbon solutions increased from 11% in 2021 to 14% in 2022. Based on current portfolio forecasts, we are progressing on our ambitions to have more than 30% of our annual gross capex* allocated to renewables and low-carbon solutions in 2025. This growth will be contingent on access and profitability.

![img-0.jpeg](img-0.jpeg)

Due to the long-term nature of investments in energy projects it is expected that our rising share of investments in renewable energy projects will have an increasing impact on the oil, gas and renewables ratios in the total production profile as the projects come into operation. In 2022 Equinor produced a total of 4.3 million TJ of energy, 16 thousand TJ of which was from renewables. By 2030, we aim to reach an installed net capacity of 12-16 GW of renewables, with the potential to produce between 35 and 60 TWh annually, while maintaining our energy production from oil and gas at around the same level as today.

![img-1.jpeg](img-1.jpeg)

#### **Investment criteria and portfolio robustness:**

Equinor's strategy is to continue to create long-term, high value growth by developing a broad portfolio pipeline and applying strict robustness criteria to investments. To maintain a valuable portfolio in different possible energy transition pathways, Equinor has a financial framework in place addressing climate-related risks and the robustness of investment proposals.

84 Equinor, Annual Report on Form 20-F 2022

## Investment criteria

When a project is being sanctioned, it is assessed on multiple measures:

- Net present value (NPV): to bring value to the company and our shareholders.
- Price sensitivities: to assess the impact of different prices on the investment.
- Other considerations include: safety, security and sustainability, optionality, resource efficiency and alternative cost, strategic value, country risk, operational capacity and capability. We undertake environmental and social impact assessments for all new projects including consideration of potential human rights impacts.

In addition, for oil and gas projects, the following assessments are undertaken:

- Break-even price: to remain robust in low-price scenarios we use a break-even target for all oil and gas projects.
- CO2 intensity: all oil and gas projects are measured on scope 1 CO2 intensity (upstream).
- Carbon pricing: a CO2 cost acts as an additional element of robustness, including application of Equinor's internal carbon price.

Equinor recognises that planned investments that are not sanctioned can have negative economic consequences for connected suppliers, partners, and end users of energy. We therefore work closely with all stakeholders, including local governments to explore solutions that enable Equinor to proceed with investment, or alternatively to find new developers or owners.

## Portfolio robustness

Equinor maintains significant capex flexibility in our current portfolio, with only our sanctioned projects being committed, representing less than 50% of the total capex between 2024 and 2026. This will allow us to optimise and re-prioritise our non-sanctioned projects to ensure we continue to generate high value through cycles. The volume weighted break-even price of our upstream projects coming on stream in the next 10 years is around 35 USD/bbl. Operated projects already sanctioned have a weighted average break-even price below 30 USD/bbl (calculated from date of sanction). Despite increased competition, we maintain our expectation of real base project returns of 4% to 8% for renewables excluding the effects of farmdowns and project financing.

## Portfolio Stress Test

Since 2016 Equinor has tested the resilience of its portfolio against the scenarios from the IEAs World Energy Outlook (WEO) report. WEO scenarios change from year to year and in the 2022 WEO report they were:

- Stated Policies Scenario (STEPS).
- Announced Pledges Scenario (APS).
- Net Zero Emissions by 2050 Scenario (NZE).

evhldt154p85i0

Scenario, or the Net Zero Emissions by 2050 Scenario.

The WEO 2022 scenarios illustrate the wide range of possible demand for different energy sources, including fossil fuels, nuclear and renewables. The scenarios show that relative to 2021, oil and gas energy demand in 2050 could be 10% higher (STEPS) or 40% lower (APS). The NZE scenario shows a significant 70% reduction in oil and gas energy demand and relies on a rapid growth of alternative energy sources.

We test our portfolio by applying the price assumptions for oil, natural gas and CO2 tax in each of these scenarios and compare the impact towards the value calculated at our commodity price assumptions4. Equinor's commodity price assumptions are based on management's best estimate of the development of relevant current circumstances and the likely future development of such circumstances. This price-set is currently not equal to a price-set in accordance with the achievements of the goals in the Paris Agreement as described in the WEO Sustainability Development

The Stated Policies and Announced Pledges scenarios have a median expected global temperature rise by 2050 of around 1.95°C and 1.65°C respectively.

The Net Zero Emissions scenario is consistent with limiting global temperature rise to 1.5°C with a 50% probability.

4 See note 14 Impairments to the Consolidated financial statements for an overview of Equinor's long term commodity price assumptions.

Equinor, Annual Report on Form 20-F 2022 85

The illustration shown displays the net present value after tax (NPV) in the WEO scenarios relative to value using Equinor's commodity price assumptions.

Compared to last year's report, the impact from the Stated Policies Scenario has increased from 30% to 41%, and the impact from the Announced Pledges Scenario has increased from 12% to 17%. The Net Zero Emissions Scenario decreases NPV by 22%, 12% less than last year. Our long-term strategy remains firm, however the change from last year is mainly impacted by the bridging of high current commodity prices towards the initial WEO 2030 scenario price point. The resilience in our oil and gas portfolio, combined with our continuous focus on maintaining flexibility, positions us well towards different future scenarios and towards a sustained low-price environment.

NPV is calculated forward looking from 2023. We assume a linear bridging between 2022 prices and the first price point given by the IEA in 2030. This bridging is consistent with methodology used in previous years. However, due to high commodity prices seen in 2022, this methodology leads to some of the IEA scenarios having higher commodity prices than Equinor's commodity price assumptions for some years towards 2030. We further assume a linear interpolation between IEA's price from 2030 to 2050 and that the price in 2050 is kept constant in real terms thereafter. USD 2 per box transportation cost for oil production is added to compare with Brent Blend. Exploration activities are not included due to the uncertainties related to potential discoveries and development solutions. The WEO scenarios renders some volumes unprofitable, which could have implications for sanctioning of new projects. Equinor's renewable projects are not fully influenced by the price assumptions in the different scenarios, due to offtake agreements. Furthermore, the scenarios primarily stress oil and gas prices, not reflecting the potential impact on our renewable and low carbon projects in an accelerated transition scenario. Our portfolio flexibility may help us to reduce the negative impact seen in the low-price scenarios by mitigating actions such as re-optimizing the non-sanctioned portfolio.

exhibit154p86i1

### Carbon pricing and carbon costs

For portfolio and decision analysis, our base assumptions include a carbon cost for all assets and projects. In countries where no such cost exists, we use a generic cost starting from 2023. We use a default minimum at 68 USD per tonne (real 2022), that increases to 108 USD per tonne by 2030 and stays flat thereafter. In countries with higher carbon costs, we use the country-specific cost expectations. This carbon cost is included in investment decisions and is part of break-even calculations when testing for profitability robustness. The actual CO2 costs for Equinor-operated assets were USD 1,019 million

in 20225.

The illustration above shows the total carbon cost in the WEO scenarios, relative to the total cost using Equinor's commodity price assumptions, based on the same volume base. All the WEO scenarios predict lower absolute carbon costs compared to Equinor's assumed CO2 cost. With Equinor's ambition to reduce operated scope 1 and 2 emissions by net 50% by 2030 relative to 2015, this further supports the adaptation to a low-carbon future.

### Physical Climate Risk

Equinor's portfolio comprises offshore and onshore assets across a diverse set of regions around the world. While the company's core business is centred on the NCS, the internationalisation of the oil and gas portfolio and the move towards a broad energy company has seen an expansion in the company's geographic footprint. The IPCC's sixth assessment report finds that "climate change is bringing multiple different changes in different regions - which will all increase with further warming". These include changes to wetness and dryness, to winds, snow and ice, coastal areas and oceans. To assess the exposure of our assets to possible climate-related perils we modeled the portfolio to different climate scenarios using data analytics software. The model assessed the exposure of 118 assets in which Equinor has an equity interest to six climate-related perils: wind, heat, fire, flood, hail and precipitation, providing details on both present-day exposure and the expected change in exposure between 2020 and 2050.

exhibit154p86i0

5Costs are reported for Equinor-operated assets only, on a 100% basis, cost before tax (tax deductible).

86 Equinor, Annual Report on Form 20-F 2022

The results of the assessment can be seen in the figure above, which also shows the relative book value of different clusters of assets by reporting segment. The results show that the majority of Equinor's assets by book value are subject to a relatively low level of present and future climate-related exposure. Those assets subject to the highest present-day exposure are offshore installations in the US Gulf of Mexico, while those with the greatest changes in exposure towards 2050 are the renewable installations in South America. Similar results were found for both the RCP 4.5 and RCP 8.5 warming scenarios. While the assessment provides details on the exposure of assets, it is not a direct indication of physical or financial-related risk as all Equinor installations are designed with margins to tolerate a range of meteorological conditions. Installation-specific risk assessments are therefore required to assess the climate risk and to implement mitigating measures (if required). We will continue to assess the current and future exposure of our portfolio to physical climate changes and to implement preventative and mitigating measures.

### Profitable portfolio

By carefully evaluating investment criteria to develop our future portfolio and assessing our current portfolio for physical climate risk exposure, we can ensure we have resilient value creating assets able to be profitable through challenging market conditions and climate scenarios. It also empowers us with knowledge to implement any measures to ensure we are profitable for the future and able to create value for shareholders through capital allocation and distribution.

Performance disclosure

| KPI/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE |  |
| --- | --- | --- | --- | --- |
|  |  |  | 2022 | 2021 |
| PROFITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030) 1,2 | n | 55.2 | 22.7 |
| Relative Total Shareholder Return (Relative TSR) (quartile) | Above average in ranking among peers 1 | n | 6 of 12 | 2 of 12 |
| Relative ROACE* (peer group rank) | First quartile in ranking among peers 1 | n | 1 of 12 | 2 of 12 |
| Organic Capex* (billion USD) | 2022 outlook guiding USD 10 1 | n | 8.3 3 | 7.9 |
| Test in bold: Key performance indicator 1 Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU). 2 USD 2021 real base. 3 Released for portfolio measures. 4 Based on 2022 CMU price scenario (95 USD/bbl). 5 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022 |  |  |  |  |
| n Ambition met in 2022. n Ambition not met in 2022. n Plan in place, on track to reach longer-term ambition. n Plan in place, not on track to reach longer-term ambition. |  |  |  |  |

Performance evaluation

### Investments

In 2022, capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in note 5 Segments to the Consolidated financial statements, amounted to USD 10.0 billion, of which USD 8.1 billion were organic capital expenditures* (adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022, organic capital expenditures* were USD 8.3 billion).

In 2021, capital expenditures were USD 8.5 billion, as per note 5 Segments to the Consolidated financial statements, of which organic capital expenditures* amounted to USD 8.1 billion.

In Norway, a substantial proportion of 2023 capital expenditures will be spent on ongoing development projects such as the Johan Castberg and the Breidablikk and fields with final investment decisions where plans for development and operation (PDOs) have been submitted, such as Munin (formerly Krafla), Halten Øst and Irpa. In addition, capital expenditures will be spent on various extensions, modifications and improvements on currently producing fields.

Internationally, we estimate that a substantial proportion of 2023 capital expenditures will be spent on ongoing and planned development projects such as the Bacalhau field in Brazil and offshore and non-operated onshore activity in the USA.

Within renewable energy, capital expenditure in 2023 is expected to be spent mainly on offshore wind projects and on the acquisition of the solar developer BeGreen announced in November 2022.

Equinor, Annual Report on Form 20-F 2022 87

Equinor finances its capital expenditures both internally and externally. For more information, see financial debt and liquidity management in the section 2.2 High value.

Equinor has committed to certain investments in the future. A large part of the capital expenditure for 2023 is committed. The further into the future, the more flexibility we will have to revise expenditures. This flexibility is partially dependent on the expenditure joint venture partners agree to commit to. For further information, see note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements.

Equinor may alter the amount, timing or segmental or project allocation of capital expenditures in anticipation of, or as a result of several factors outside our control.

# **Return on average capital employed (ROACE)\***

The return on average capital employed (ROACE)* was 55.2% in 2022, compared to 22.7% in 2021. The change from 2021 was mainly due to the increase in adjusted earnings* after tax.

# **Relative ROACE\* (peer group rank)**

On relative ROACE* Equinor was ranked 1* in the peer group, which is a position in the first quartile.

88 Equinor, Annual Report on Form 20-F 2022

| (in USD million, unless stated otherwise) | For the year ended 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 2019 | 2018 |
| Share information 1) |  |  |  |  |  |
| Diluted earnings per share (in USD) | 9.03 | 2.63 | (1.69) | 0.55 | 2.27 |
| Share price at OSE (Norway) on 31 December (in NOK) 2) | 351.80 | 235.90 | 144.95 | 175.50 | 183.75 |
| Share price at NYSE (USA) on 31 December (in USD) | 35.52 | 26.33 | 16.42 | 19.91 | 21.17 |
| Dividend paid per share (in USD) 3) | 1.68 | 0.56 | 0.71 | 1.01 | 0.91 |
| Weighted average number of ordinary shares outstanding (in millions) | 3,174 | 3,254 | 3,269 | 3,326 | 3,326 |

1) See section 5.3 Shareholder information for a description of how dividends are determined and information on share repurchases.

2) Last day of trading on Oslo Bars was 30 December in both 2022 and 2021.

3) See note 20 Shareholders' equity and dividends to the Consolidated Financial Statements.

#### Relative TSR

Equinor assesses performance against a peer group of 11 European and U.S. companies by relative Total Shareholder Return (TSR). TSR is the sum of a share's price growth and dividends for the same period, divided by the share price at the beginning of the period and is provided by a third-party service provider.

exhibit154p8N1

The chart above shows TSR for 2022. Equinor is number six with a TSR of 40% (measured in USD).

The year 2022 was weak for global equity markets but a strong year for oil and gas equities. The strong outperformance for energy markets in 2022 was primarily caused by Russia's invasion of Ukraine, leading to a shortfall in European supply, which had a profound impact on European prices for gas and electricity. This resulted in increased earnings, cash flow and share price for companies with exposure to European gas markets. No company stood out like Equinor, resulting in very strong relative performance until early September. In the last months of 2022, Equinor showed weaker relative performance due to a fall in European gas prices. This was due to warmer than expected European weather, and the fact that European storage was no longer a big concern for the 2022-2023 winter as European countries were able to find alternative supplies and eventually refilled their gas storage.

exhibit154p8N0

The graph below shows the relative performance of Equinor over the five years from 2018 until 2022. Over this period, Equinor ranks number 2 with a TSR of 105%.

Equinor's peer group consist of the following companies:

Aker BP, BP, Chevron, ConocoPhilips, Eni, ExxonMobil, Galp, Ørsted, Repsol, Shell and TotalEnergies.

Equinor, Annual Report on Form 20-F 2022 89

90 Equinor, Annual Report on Form 20-F 2022

## 2.2.3 Value creation for society

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Value creation for society, including generating revenue, job opportunities and economic wellbeing through procurement and taxes. | Equinor makes substantial payments to governments and can significantly influence socio-economic development where it operates. | •Business integrity and ethical misconduct •International politics and the political change •Joint arrangements and contractors •Ownership and action by the Norwegian State | Payments to governments (Billion USD) Share of procurement spend locally (%) | Not applicable Not applicable |
| • Ambition met in 2022. • Ambition not met in 2022. • Plan in place, on track to reach longer-term ambition. • Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |  |  |  |

### Contextual introduction

Delivering value to society at large and to our host communities is fundamental to the success of our ongoing business activities and the energy transition. The turbulent times of 2022 have reinforced our belief in our long-standing purpose and the importance of the value we bring to people and society, being a reliable provider of energy to our customers while continuing to take vital steps in our transition.

Energy underpins virtually all current economic activity and is a fundamental human well-being and development component. The jobs we create, taxes we pay and the economic and social benefits we deliver are material contributions. Equinor provides to society at large and to the communities in which we are present.

Alongside our tax contributions, a main lever to deliver value to society is through the procurement of goods and services of approximately 7,500 direct suppliers and their sub-suppliers. Thriving domestic supply chains are important for regional economic development and for Equinor as we deliver new projects and invest in long-term infrastructure that will operate for decades. Helping to develop new supply chains is as important as ensuring that our existing suppliers are transitioning along with us to balance creating new jobs and the minimising job losses in the value chain and beyond our industry.

At the core of our efforts to deliver value to society is openness and collaboration with stakeholders and partners to understand their needs and expectations and to help find mutual benefits and lasting solutions to common challenges.

### Management approach

Host communities and value chain partners are key stakeholders in identifying and delivering societal value.

Identification of opportunities starts at the early stages of business development. Local authorities and non-governmental organisations help us understand the needs and expectations of our host communities. These are key to informing business models and project strategies that can deliver lasting value to the community and its support of our activities.

In addition to tax contributions and procurement spending, we deliver socioeconomic benefits such as voluntary or mandatory social investments, sponsorships and donations. In 2022, we prioritised our efforts towards education and vocational training, institutional capacity building, cultural enrichment and support for humanitarian aid. All social investments must comply with internal policies and requirements as well as local regulations.

We measure our performance towards tax contributions and spend on procurement, social investments, sponsorships and donations.

Towards the end of 2022, we launched our Just Transition plan and our commitment to contributing to an energy transition that is just and inclusive and brings long-term social and economic benefits. See equinor.com for more information about our approach and priorities, including supporting case studies that exemplify how we deliver value to societies accordingly. As we implement this plan, we will evolve our performance framework on material topics, including defining relevant ambitions.

Actual and potential adverse impacts related to our business activities are further addressed in other parts of the report, more specifically in Emissions reductions, Integrity and anti-corruption, Safe and secure operations, Protecting nature, and Tackling inequality - Human rights.

Equinor, Annual Report on Form 20-F 2022 91

## Performance disclosure

Alongside the provision of reliable energy, we continue creating economic value and societal progress through avenues such as:

- Revenues for countries through the taxes we pay
- Economic opportunities for our direct suppliers and sub-suppliers and further revenues for countries through our sourcing of goods and services
- Job creation, training, skills development, and educational investments and enhancement of opportunities for own workforce and beyond
- Innovation, research and development of technologies

Our key numbers:

| Economic value created and distributed |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| Tax contribution | Equinor group | USD billion | 45.2 | 9.0 | 3.1 | 8.8 | 9.6 |
| Payment to governments (Total economic contributions to governments) | Equinor group | USD billion | 49.2 | 11.8 | 4.5 | 11.6 | 13.4 |
| Purchase of goods and services (Total procurement spend) | Equinor group | USD billion | 17.1 | 15.7 | 16.1 | 18.4 | 17.4 |
| Total share of spend locally | Equinor group | % | 89 | 91 | 89 | 85 | nil |
| Corporate donations spend | Equinor ASA | USD million | 7.6 | 1.8 | 1.8 | 0.2 | 0.8 |
| Total social investments spend (excl. Norway and Denmark) | Equinor group | USD million | 6.3 | 1.9 | 1.4 | 3.1 | 2.1 |
| Voluntary social investments spend | Equinor group | USD million | 0.6 | 0.4 | 0.6 | 2.2 | 1.1 |
| Mandatory social investments spend | Equinor group | USD million | 5.7 | 1.4 | 0.8 | 0.9 | 1.0 |

Data and information about employees, apprenticeships and graduates can be found in section 1.9 Our people - To get there. Together.

### Enabling societal progress through tax contributions

Paying the right tax where value is created is central to Equinor's commitment to contributing to progress for societies. In 2022, the Equinor group paid USD 45 billion in corporate income taxes and USD 4 billion in royalty payments and fees to local and national governments, including host entitlement. USD 44 billion was paid in Norway, where Equinor has the largest share of its operations and earnings.

The full Payments to governments report for 2022 pursuant to the Norwegian Accounting Act §3-3d and the Norwegian Security Trading Act §5-5a can be found at our website: equinor.com/reports. We published our second tax contribution report in October 2022, which provides further insight into our approach to tax and explains why and where we pay the taxes we pay.

### Procurement and ripple effects

Enabling local value creation is integrated into how we plan and operate our activities across all parts of our strategy. A significant contribution to society in terms of monetary value is our purchase of goods and services, totalling approx. USD 17.1 billion in 2022. Continued sourcing from key suppliers enables them to make long-term plans and investments in securing and creating jobs, developing new skills and technology and investing in their own supply chains.

In Norway, according to a report by Bodø Science Park, we procured goods and services for our operations from over 1,800 suppliers in 152 Norwegian municipalities in 2021, totalling NOK 77 billion. 90% of all deliveries were by Norwegian suppliers, demonstrating their capacity, competence and competitiveness.

In the UK, our upcoming project Rosebank, according to a socioeconomic study by Wood Mackenzie and Vår Energi, if sanctioned, is estimated to create GBP 8.1 billion of direct investment, of which GBP 6.3 billion is likely to be invested in UK-based businesses. Over the 25 years lifetime of the field, Rosebank is forecast to generate a total of GBP 24.1 billion of gross value add (GVA), comprised of direct, indirect and induced economic impacts.

### Enabling local opportunities in offshore wind projects

Specifically related to floating wind, Equinor has developed a set of design principles and a toolbox to help select solutions that are both cost-effective and provide opportunities for the local supply chain. Water depths, capabilities of local harbours, and the competence and capacity of the local supply chain are some of the main drivers when we consider the technology of choice.

In Norway, the local supply chain has been awarded over 50% of Hywind Tampen's contract value by being competitive in the chosen technologies. This contributes to job creation and local economic value and builds know-how for future industrial projects.

92 Equinor, Annual Report on Form 20-F 2022

In the UK, the Dogger bank offshore wind farm, which will be the world's largest fixed-bottom offshore wind farm has facilitated local investments, local jobs, contractors, and skills development. During 2022, Equinor led six supply chain workshops to prepare local suppliers for future tenders and collaborating around skills and innovation. Equinor entered into a number of strategic collaborations in North-East England including with the Offshore Renewable Energy Catapult, a UK-wide initiative for innovation in renewable energy.

#### **Social investments**

In 2022, we spent around USD 6.3 million on social investments internationally, the majority in which were contractual obligations. The investments were often targeted towards underprivileged groups and focused on STEM education and vocational training and skills building to improve employability, as well as healthcare and economic empowerment for women. In 2022, material contributions included support to infrastructure development in Argentina, and support to local capacity building and innovation through our offshore wind projects, Empire Wind and Beacon Wind, in the US. An overview of Equinor's social investments in 2022 is presented in our ESG data hub.

#### **Supporting humanitarian efforts in a turbulent year**

With 2022 marked by Russia's invasion of Ukraine and a growing humanitarian crisis in its wake, Equinor donated a total of USD 5 million to humanitarian organisations supporting the people in and refugees from Ukraine, as well as organisations working to alleviate the hunger crisis on the Horn of Africa, that was exacerbated by the war in Ukraine.

In Poland, we supported joint industry initiatives to provide technical assistance and technical equipment to Ukrainian organisations. We also provided financial aid to support refugees that will remain in the country for a longer period through partnering with local NGOs, including those cooperating with UN bodies, like the Polish Centre for International Aid and United Nations Global Compact Poland.

#### **Performance evaluation**

Overall, our performance on value creation for society was geared towards ensuring crucial energy production and supply, and providing significant tax contributions, employment and procurement spending. Alongside these, we extended humanitarian aid to support direct and indirect victims of the war in Ukraine and continued our local community engagement in the countries of our operations.

Looking ahead, we will pursue opportunities to further strengthen our activities, performance and disclosures, notably as a part of our just transition plan.

Equinor, Annual Report on Form 20-F 2022 93

## 2.2.4 Integrity and anti-corruption

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Preventing corruption and ensuring ethical business culture is embedded across the company through our values, Code of Conduct and compliance programmes. | Corruption undermines legal business activities, distorts competition, runs reputations and exposes companies and individuals to civil and criminal penalties. | eBusiness integrity and ethical misconduct eJoint arrangements and contractors ePolicies and legislation eSupervisions, regulatory reviews and reporting | Confirmed corruption cases (number of) | 0 (2022) |
|  |  |  | Employees who signed-off the Code of Conduct (%) | ≥95% (2022) |
|  |  |  | • Ambition met in 2022. • Ambition not met in 2022. • Plan in place, on track to reach longer-term ambition. • Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |

### Contextual information

Equinor is a global company, and we are present in parts of the world where there is a high risk of corruption. We believe that an ethical business culture is the cornerstone of a sustainable company, and we continued our work on ethics and compliance throughout 2022. Our commitment to conduct business in an ethical, socially responsible and transparent manner remained constant, irrespective of the impact of the European security situation.

Equinor has a zero-tolerance policy towards all forms of corruption. This is embedded across the company through our values, Code of Conduct and compliance programmes.

### Management approach

#### Code of Conduct

The Equinor Code of Conduct sets out our commitment and requirements for how we do business. It applies to our employees, board members and hired personnel who, each year, are required to confirm that they understand and will comply with the Code of Conduct and take an online test to certify as competent. We expect our suppliers to act in a way that is consistent with our Code of Conduct and we engage with them to help them understand our ethical requirements and how we do business. If our expectations are not met, we take appropriate action.

#### Anti-corruption

Our Code of Conduct explicitly prohibits engaging in bribery and corruption in any form. Equinor's anti-corruption compliance programme summarises the standards, requirements and procedures implemented to comply with applicable laws and regulations and maintain our high ethical standards. The programme lays down the foundation for ensuring that anti-bribery and corruption risks are identified, concerns are reported, and measures are taken to mitigate risk in all parts of the organisation. We have a global network of compliance officers who support the business in identifying and handling business integrity risks and ensure that ethical and anti-corruption considerations are integrated into our activities no matter where they take place. Equinor provides regular training across the organisation to build awareness and understanding of the anti-corruption compliance programme.

#### Competition and antitrust compliance

Equinor's Code of Conduct also addresses the requirement to comply with applicable competition and antitrust laws. Our competition and antitrust programme consists of governing documents and manuals, and training of employees in high-risk positions, as well as regular risk assessments and assurance activities.

#### Reporting and handling of concerns

The Code of Conduct imposes a duty to report possible violations of the Code or other incidents of unethical conduct. We require leaders to take their control responsibilities seriously to prevent, detect and respond to ethical issues. Employees are encouraged to discuss concerns with their line manager or the line manager's superior, or use available internal channels established to provide support. Concerns may also be reported through our Ethics Helpline which allows for anonymous reporting and is open to employees, business partners and the general public. Equinor has a strict non-establishment policy.

#### Roles and responsibilities

The legal business ethics and compliance function is headed by the chief ethics and compliance officer (CECO), who reports to the executive vice president legal and compliance. The CECO is also able to report matters directly to the CEO, the BoD, the audit committee (BAC) and the safety, sustainability, ethics committee (SSEC).

94 Equinor, Annual Report on Form 20-F 2022

#### Collaboration and stakeholder engagement

At Equinor, we believe in the value of collective action to actively promote anti-corruption and revenue transparency. We have long standing relationships with the UN Global Compact, the World Economic Forum's Partnering Against Corruption Initiative (PACI) and Transparency International (TI). In 2022, as a long-standing supporter of the Extractive Industries Transparency Initiative (EITI), we continued to participate actively in the EITI multi-stakeholder process with the clear objective of strengthening revenue transparency and good governance in the sector.

#### Operational targets

Employees having signed the Code of Conduct: 95%

We have a target of zero confirmed incidents of corruption which could lead to corporate criminal liability. **Key initiatives in 2022 KPIs/monitoring indicators and ambitions**

The Code of Conduct was updated in 2022, updating several sections and, in particular, those related to communities and environment.

Our training efforts included general and targeted training and awareness sessions and we delivered an increased number of training activities. Ethics and integrity-related leadership performance goals were made available in 2022, and general leadership training programmes were updated to explicitly cover ethics and integrity.

Delivering mandatory and voluntary social investments is one of our tools to contribute towards tackling societal challenges. However, if not done the right way, social investments can expose Equinor to significant business integrity and reputational risks. To reduce this risk, our requirements and guidance on management of social investments was strengthened in response to changing business needs and identified challenges.

### Performance disclosure

#### Ethics Helpline

| Indicator | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cases and inquiries to the Ethics Helpline | Public | number | 192 | 160 | 183 | 194 | 182 |
| Confirmed corruption cases | Public | number | 0 | 0 | n/r | n/r | n/r |

#### Ethics and compliance training

| Indicator | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| People completing Code of conduct training and sign-off (Employees) | Equinor group | % | 95 | 84 | 87 | 93 | 83 |

Equinor, Annual Report on Form 20-F 2022 95

hvhbt1S4p96i0

96 Equinor, Annual Report on Form 20-F 2022

### Performance evaluation

The number of cases received through the Ethics Helpline was 192 in 2022, of which 126 were reports of concerns. This was an increase from 2021. The cases included 60 reported concerns relating to harassment, discrimination and other conduct affecting the working environment. We experienced a decrease in the number of cases related to our suppliers.

The Code of Conduct yearly sign-off is a mandatory competence requirement for all employees in the company. By following up on the sign-off rates for each business area we were able to monitor the trends closely and saw a significant improvement compared to 2021.

Looking ahead, we maintain our commitment to ethical, socially responsible and transparent business conduct. We will continue to strengthen our risk-based compliance programmes and monitor their effectiveness.

Equinor, Annual Report on Form 20-F 2022 97

## 2.3 Low carbon

### The need for rapid emission reductions and systemic transformation toward net zero

#### Urgency of the climate challenge

The Paris Agreement calls for rapid emission reductions in accordance with the best available science to achieve a balance between manmade emissions and sinks of greenhouse gases in the second half of this century. Since the signing of the Paris agreement, the scientific and physical evidence of climate change has become ever more apparent. In order to meet the goals of the Paris Agreement, the world's energy systems will need to undergo a transformation in the coming years to decarbonise. According to the Intergovernmental Panel on Climate Change's sixth assessment report, 'reducing GHG emissions across the full energy sector requires major transitions, including a substantial reduction in overall fossil fuel use, the deployment of low-emission energy sources, switching to alternative energy carriers, and energy efficiency and conservation'.

The International Energy Agency (IEA) estimates that clean energy investment must rise above USD 4 trillion by 2030 for the world to be on track to meet its Net Zero Emissions by 2030 scenario$^{8}$. Companies, customers, governments and society at large will all have to collaborate, innovate and adapt in new ways to ensure a sustainable future. It will require the development of new technologies, new value chains, and new ways of working, as well as firm leadership from policymakers. It will also require continuity and the provision of stable, reliable and affordable energy that the global economy depends on.

#### Our response

Equinor is committed to long-term value creation in support of the goals of the Paris Agreement. We aim to be a leading company in the energy transition and have set an ambition to reach net zero by 2050. We realise that this will be a journey that will require an evolution of the way energy is produced and consumed globally.

As an industrial company focused on the production and delivery of oil, gas, electricity and low-carbon products and services, our business has both direct and indirect negative impacts. Our operations generate significant greenhouse gas emissions (in 2022, for example, we emitted 11.4 million tonnes of carbon dioxide equivalent (CO$_{2}$e) from our own operations). And, of course, the emissions associated with the use of the products we sell are many times higher than those from our direct operations, equivalent to 243 million tonnes of CO$_{2}$e in 2022.

We have already developed an upstream portfolio that is one of the most carbon efficient in the industry. Our ambition to reduce net group-wide operated scope 1 and 2 emissions by 50% by 2030, shows that we are focused on medium-term actions consistent with the goals of the Paris Agreement and a 1.5-degree pathway.

Rapidly reducing our own emissions is necessary, but not sufficient. To be an effective agent of change in the energy transition, we must help society decarbonise by providing our customers and end-users with energy that has lower - and eventually net-zero - emissions. To achieve this, we have to apply our experience and competence from oil and gas to new sectors of the energy system. We have built a robust offshore wind portfolio and aim to further strengthen our leading position in floating offshore wind. We are shaping the low carbon industry, leveraging our advantaged industrial starting point on the Norwegian continental shelf (NCS) and proximity to the European market.

Equinor's 2022 Energy Transition Plan laid out our strategy for delivering on our ambition to become a net-zero company by 2050, including emissions from production and final consumption of the energy we produce. In addition to the main corporate decarbonisation and transition ambitions, the plan included a series of short-term industrial project milestones that demonstrated our concrete commitment to delivering our transition strategy. A summary of progress against the Energy Transition Plan can be found in the introductory sections of this report and more detail on our net zero pathway and emissions reductions is provided below.

#### Risk management

To deliver on our transition strategy we have put in place a framework for climate-related risk management that is informed by the concept of double materiality. Equinor assesses climate risk from two perspectives: transition risk, which assesses the financial robustness of the company's business model and portfolio in various decarbonisation scenarios; and physical climate risk, which assesses the vulnerability of our assets to climate-related perils in different warming scenarios. A full description of how we integrate climate considerations into our investment and valuation criteria, and details of our CO$_{2}$ price forecasts is published in presented in section 2.2.2 Profitable portfolio. To assess and manage climate-related risks we also use scenario and sensitivity analysis, including net present value (NPV) stress tests against all relevant scenarios published by the IEA. Details of our stress testing and scenario analysis are published in section 2.2.2 Profitable portfolio. For physical climate risk, we map the exposure of our global asset portfolio against a range of climate-related perils and scenarios, including heat, flood, fire, and wind. The results of the 2022 mapping can be seen in section 2.2.2 Profitable portfolio.

$^{8}$ World Energy Outlook, November 2022

98 Equinor, Annual Report on Form 20-F 2022

Equinor aligns its climate-related disclosures with the recommendations of the Task Force on Climate related Financial Disclosures (TCFD) and we include explicit reference to the TCFD recommendations in section 5.6.

# **Using our voice**

Our advocacy and policy engagement is also conducted in line with the objectives of the Paris Agreement. Equinor promotes policies supporting the goals of the Paris Agreement and forceful actions to accelerate the energy transition. We also actively work to ensure that the policy positions and advocacy of our membership organisations is supportive of and aligned with the objectives Paris Agreement. To ensure transparency, we conduct and publish an annual review of industry association and membership organisations showing any areas of potential misalignment. Our climate policy positions and our expectations of our membership associations are available on Equinor.com. We engage with a wide range of external independent benchmarking and assessment organisations, including Climate Action 100+, CDP, InfluenceMap and others, in an effort to be a proactive stakeholder in the development of effective frameworks for assessing corporate performance in the energy transition.

Equinor, Annual Report on Form 20-F 2022 99

### 2.3.1 Net zero pathway

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Achieving net-zero greenhouse gas emissions by 2050, including emissions from the use of our products | Equinor has significant scope 1, 2 and 3 GHG emissions (11.4 + 243 million tonnes CO 2 e). | • Climate change and transition to a lower carbon economy • Competition and technological innovation • International politics and geopolitical change • Policies and legislation • Prices and markets • Ownership and action by the Norwegian State • Workforce and organisation | Net carbon intensity (gCO 2 e/MJ) | -20% (2019 -> 2030) -40% (2019 -> 2035) 1 |
|  |  |  | Renewable energy installed capacity (GW) | 12-16 installed (2030) 1 |
|  |  |  | Annual gross CAPEX 7 to Renewables and low carbon | >30% (2025) >50% (2030) 1 |
|  |  |  | 1 Ambition met in 2022. 2 Ambition not met in 2022. 3 Plan in place, on track to reach longer-term ambition. 4 Plan in place, not on track to reach longer-term ambition. Text in bold: Key performance indicator. |  |

#### Investing in a broad energy portfolio to accelerate systemic transformation

To meet the climate challenge while also addressing the need for energy, Equinor has developed a metric that shows how we are progressing towards our own net-zero ambition while simultaneously investing in the transformation of the energy system that will be necessary to realise the goals of the Paris Agreement. The Net Carbon Intensity (NCI) metric tracks our net emissions, including scope 3 emissions from the use of our products, in relation to our total energy production from oil, gas, electricity, and hydrogen. Using a combination of all of the options available to us as a broad energy company, our NCI metric shows how we will deliver energy with lower emissions over time, helping our customers in their efforts to deliver emission reductions. Our ambition is to reduce our NCI of 67.8g CO$_{2}$e/MJ in 2019 by 20% by 2030 and by 40% by 2035. By 2050, we aim to bring the NCI down by 100% - to net zero. Equinor's interim NCI ambitions show reductions by 2030 and 2035 greater than those implied by the IEA's Announced Pledges Scenario (APS), which assumes that all climate commitments made by governments around the world as of COP26, including Nationally Determined Contributions (NDCs) and longer-term net-zero targets, will be met in full and on time.

Our strategy for achieving net zero has been informed by engagement with a wide range of stakeholders, including shareholder and shareholder groups, government, non-governmental organisations, academia, and civil society.

In addition to the products and services we provide to our customers, we recognise that we have the potential to have a positive impact on global emissions reduction through engagement with our suppliers. As a major consumer of goods and services, Equinor has the opportunity to drive emissions reductions among its suppliers and sub-suppliers. Our Energy transition plan included a commitment to 'work with our suppliers and customers, host governments, and civil society to develop the business models, policies and frameworks to enable the world to achieve net zero by 2050'.

#### Management approach

Equinor is applying its competitive advantage to create value in new areas of the energy system and to deliver on our net zero ambition. We have an ambition to allocate more than 50% of our gross capital expenditure to renewables and low-carbon solutions by 2030. A central element in this effort is our ambition to become a leading global player in offshore wind. We will accelerate growth in renewables to strengthen our competitive position and achieve the economies of scale necessary to improve returns. To build a competitive wind portfolio, we are applying our experience in technology, innovation and project delivery and building new competence and capacity to support the transition. We have an ambition to have a total of 12-16 GW of installed equity-based renewable capacity$^{7}$ by 2030.

To complete our development as a broad energy company, we are building a platform for growth in low carbon solutions with a focus on hydrogen and CCS. This is a natural next step for Equinor: a way for us to decarbonise our supplies of energy and to help industrial end-users realise their climate ambitions. Building on our strong position in industrial value chains in Europe, we are applying our technical and engineering competence to bring low-carbon products and services to the market. We are developing a broad funnel of options to be at the forefront of maturing these decarbonisation markets over the next ten years. We have established early positioning in CCS licences and high-impact hydrogen projects in Northwest Europe, working with commercial partners and

$^{7}$ Installed capacity, including capacity from financial investment

100 Equinor, Annual Report on Form 20-F 2022

governments to create new value chains. We have an ambition of developing a CO2 transport and storage capacity of 5-10 million tonnes by 2030 and 15-30 million tonnes by 2035.

Our success in achieving our net zero ambition will require collaboration with partners, customers, suppliers, and host governments on the necessary actions to accelerate the energy transition. Such collaboration takes the form of engagement and advocacy on policy issues; strategic partnerships with companies across the energy value chain; dialogue and commercial agreement with customers; consultation and investment in host communities; engagement with suppliers and sub-suppliers; and participation in initiatives with academia, NGOs, and other stakeholders.

Success also requires an internal governance and performance framework that is informed by our transition ambitions. Equinor's remuneration framework contributes to the business strategy, long-term interests and sustainability of the company. In order to better reflect Equinor's strategy and the energy transition, the instructions for the BoD compensation and executive development committee were updated in 2020 to include climate and energy transition-related goals as part of the remuneration policies. The CEO, his direct reports and Equinor's wider leadership are assessed based on results within a broad range of topics, including safety, security and sustainability. The ability of executive leaders to be role models and drive the energy transition forward forms part of the holistic performance evaluation.

# Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Energy production |  |  |  |  |  |  |  |  |  |
| Oil and gas production | Operational control | million barrels of oil equivalent (mmboe) | 1,129 | 1,115 | 1,106 | 1,055 | 1,077 | 1,099 | 1,030 |
| Oil and gas production | Equity basis | million barrels of oil equivalent (mmboe) | 744 | 759 | 758 | 757 | 770 | 759 | 723 |
| Gas to power | Equity basis | GWh | 1012 | 0 | 0 | 0 | 0 | 0 | 0 |
| Renewable energy delivered to grid | Equity basis | GWh | 1,641 | 1,562 | 1,662 | 1,754 | 1,251 | 830 | 423 |
| Renewable energy generated for use by Equinor | Equity basis | GWh | 8 | 0 | 0 | 0 | 0 | 0 | 0 |
| SUM renewable energy generated | Equity basis | GWh | 1,649 | 1,562 | 1,662 | 1,754 | 1,251 | 830 | 423 |
| Renewable installed capacity | Operational control | GW | 0.9 | 0.7 | 0.7 | 0.7 | 0.8 | 0.8 | 0.3 |
| Renewable installed capacity | Equity basis | GW | 0.6 | 0.5 | 0.5 | 0.5 | 0.6 | 0.3 | 0.1 |
| Net carbon intensity | Operational control/Equity basis | g CO2e per MJ energy produced | 66.5 | 67.1 | 67.8 | 67.8 | n/r | n/r | n/r |
| Scope 3 GHG emissions (GHG Protocol cat. 11, use of sold products) | Equity basis | million tonnes CO2 | 243 | 249 | 250 | 247 | 252 | 250 | 239 |
| CO2 emissions captured and stored per year | Operational control | million tonnes | 0.5 | 0.3 | 0.9 | 1.2 | 1.3 | 1.2 | 1.4 |

Equinor, Annual Report on Form 20-F 2022 101

| Accumulated CO2 emissions captured and stored | Operational control | million tonnes | 26.3 | 25.8 | 25.6 | 24.6 | 23.4 | 22.2 | 20.9 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Gross capital expenditure* in renewables and low carbon solutions, share of total | Equinor group | % | 14 | 11 | 4 | 2 | 4 | n/r | n/r |
| Top suppliers, with near-term emissions reductions target, absolute or intensity basis, within 2030 | Equinor group | % | 65 | n/r | n/r | n/r | n/r | n/r | n/r |

#### Investing in the future energy system

To deliver on our medium-term ambitions on the route to net zero, we are positioning ourselves through project execution, organic business opportunities, strategic business development and through the establishment of commercial agreements and investments in low-carbon value chains. In 2022 we increased our share of gross capital expenditure* to renewables and low carbon solutions to 14%, up from 11% in 2021. In our renewables business, we demonstrated real progress in 2022 on both project execution and on building the portfolio pipeline. In addition to laying the first foundations at the Dogger Bank offshore wind farm in the UK and completion of the Stepien solar project in Poland, we put in place further building blocks for our renewables strategy. Equinor's selection as a provisional winner of a lease area on the Outer continental shelf off California provides us with a platform to deliver on our goal of becoming an offshore wind major in one of the world's most attractive growth regions for floating offshore wind, while the acquisition of BeGreen, a Danish solar developer with a strong project pipeline enables will enable us to deliver on our goal of becoming a market-driven power producer. For our Low Carbon Solutions business 2022 was a year of continued progress in developing the value chains that will enable hydrogen and CCS to be key enablers in the energy transition. Commercial agreements and partnerships with key European peers and counterparties - in particular the world's first cross-border CO$_{2}$ transportation between the Northern Lights partnership and fertiliser company Yara - show that we are progressing the business models to take forward the LCS portfolio. Awards of new CO$_{2}$ storage licenses in Norway and the UK as well as government support for pioneering cluster projects such as H2H Saltend were key enablers to deliver on our ambition to deliver on our 2030 and 2035 ambitions for CCS and hydrogen.

#### Net Carbon Intensity

Our 1% reduction in net carbon intensity in 2022 compared to 2021 (66.5 down from 67.1) was driven mainly by the relative increase in the share of gas to oil production in our production portfolio. Despite increasing our share of gross capital expenditure to renewables and low carbon solutions, the contribution of renewable energy in our portfolio remained relatively unchanged from 2021, reflecting the long lead times of the capital cycle between investment and commissioning. Similarly, the amount of CO$_{2}$ that we transported and stored in 2022 was 0.5 million tonnes. This is higher than in 2021 but lower than the historical 5-year average. The main reason for the lower CO$_{2}$ transport and storage levels is the shutdown of the Hammerfest LNG terminal for repairs until June 2022 and the reduced CO$_{2}$ injection at the Stepien field. Both renewable output and CO$_{2}$ storage and transport volumes will increase in the coming years as projects reach maturity. The reduction in our scope 3 emissions from use of products sold was principally due to a reduction in our overall equity production volumes. The addition of the Triton CCGT power generation plant did not materially affect the portfolio-wide NCI.

#### Supply chain decarbonisation

For the first time in 2022, we engaged a systematic evaluation of our supplier base to assess emission reduction plans and strategies. Among those suppliers that account for the majority of Equinor's procurement spend, 65% were found to have a stated emissions reduction target on an absolute or intensity basis by 2030. We will continue to work with suppliers and sub-suppliers to increase this share and to explore tools and ways of working to increase transparency and reduce emissions across our supply chain.

102 Equinor, Annual Report on Form 20-F 2022

## Performance evaluation

Our performance in 2022 shows that Equinor is building the foundation to deliver on its net zero ambitions. As a leading indicator, capital allocation is the metric that showed the most progress in 2022 as we increased the share of gross capex* to low and zero carbon activities. Given the long lead times needed to bring renewable and low-carbon projects onstream, we saw relatively little progress in the generation from renewable energy sources or the volumes of carbon stored and transported in 2022. Consequently, there was relatively little change in the company's overall net carbon intensity. The 2% reduction in NCI from the 2019 baseline is in line with expectations. As deployment of renewable and CCS accelerates in the coming years, we expect to see greater progress in NCI reductions, with the majority of progress towards the 20% reduction ambition in 2030 expected in the second half of this decade. Meeting the 2030 and 2035 NCI ambitions will put us well ahead of society's progress towards net zero in 2050 as outlined in our Energy transition plan. Equinor's ability to deliver on its transition ambitions and its net 2050 ambition will continue to be dependent on enabling policy and regulatory frameworks. The changed energy security situation in Europe has resulted in both positive and negative drivers for Equinor's energy transition. Increased demand for oil and, particularly, natural gas raise expectations for continued hydrocarbon production, while increased policy support for renewables and low-carbon solutions are likely to accelerate their deployment in both Europe and the US. Mapping of the decarbonisation targets of our strategic suppliers in 2022 represented the first step in an important effort to increase transparency and focus on emissions in upstream scope 3 emissions; this will be a continued area of focus and improvement in 2023.

Equinor, Annual Report on Form 20-F 2022 103

## 2.3.2 Emissions reductions

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |  |
| --- | --- | --- | --- | --- | --- |
| Reducing GHG emissions from own production and the use of our products. | Equinor has significant scope 1, 2 and 3 GHG emissions with strong stakeholder interest in the transparent and accurate disclosure of the carbon intensity of its energy products and operating activities. | eClimate change and transition to a lower carbon economy eCompetition and technology innovation eHealth, safety and environmental factors eJoint arrangements and technology innovation eOwnership and action by the Norwegian State | Absolute GHG emissions scope 1 and 2 (million tonnes CO 2 e) | Net 50% emission reduction (2015 -> 2030) | ☐ |
|  |  |  | Upstream CO 2 intensity, Scope 1 (kg CO 2 /boe) | <8 kg/boe (2025) <6 kg/boe (2030) | ☐ |
|  |  |  | ☐ Ambition met in 2022 ☐ Ambition not met in 2022 ☐ Plan in place, on track to reach longer-term ambition ☐ Plan in place, not on track to reach longer-term ambition Text in bold: Key performance indicator. |  |  |

### Supplying reliable oil and gas while halving operated emissions by 2030

Equinor has a proud history as a safe and reliable producer of oil and gas. These energy sources will be needed to power the global economy for many years to come, including in every independent scenario of what would be needed for a Paris-aligned emissions trajectory. In addition to being primary sources of energy, oil and gas will also be needed as input to low-carbon fuels for hard-to-abate sectors such as blue hydrogen and as feedstocks for non-energy applications such as chemicals. The IEA's analysis from October 2022 shows that global oil demand is expected to grow in 2023 by 1.7 million barrels per day (mmbpd) to over 101mmbpd. The IEA's Net Zero Emissions (NZE) in 2050 scenario, which assumes demand levels consistent with a 1.5-degree trajectory, shows global oil demand projected to decline at 2.5% per year from 2021 to around 72 million barrels per day in 2030 and 24mmbpd in 2050. The IEA also sees growing demand for natural gas in the short term, including in its NZE scenario, which was developed before the current energy crisis and the attempts to reduce reliance on Russian energy exports. To meet the needs of society, Equinor will continue to produce oil and gas for the foreseeable future. We aim to excel in operational emissions management, maximising the efficiency of our infrastructure on the NCS and optimising our high-quality international portfolio. To earn the right to supply the oil and gas the world demands, we are continuing to improve the industry-leading carbon efficiency of our production.

Our ambition to reduce net group-wide operated emissions by 50% by 2030, shows that we are focused on bringing down our direct operated emissions in line with reductions necessary for a 1.5-degree pathway. Setting a baseline year that corresponds to the year of the Paris Agreement enables us to show our early action on emissions reduction and to build on our leadership position throughout this decade. The ambition, which was announced at our 2022 capital market update, was informed by engagement with a range of government and non-government stakeholders and will enable us to contribute to national decarbonisation plans in key host jurisdictions, including Norway's ambition to reduce its emissions by 55% by 2030 relative to a 1990 baseline.

### Management approach

Reaching our 50% reduction ambition for operated scope 1 and 2 emissions will require a focused and coordinated effort across the company on executing and maturing a portfolio of abatement projects, improving energy efficiency of offshore and onshore assets, developing new technologies, and strengthening resilience in the portfolio, including through consolidation. The abatement projects primarily include electrification of offshore assets in Norway, mainly by power from shore but also including innovations such as Hywind Tampen. Projects in the abatement portfolio are selected, developed and executed in close dialogue with authorities and partners and coordinated through our Norway Energy Hub initiative. In addition to CO$_{2}$ emissions, we have instituted a renewed focus on improving our industry-leading performance on methane emissions, with increased emphasis on site-level measurement for improved quantification and reporting. Carbon offsets will play a minimal role in achieving this ambition, with at least 90% of the reductions being met through absolute emissions reductions. In the longer term, we see negative emissions solutions and offsets as making an important contribution to address the climate challenge. We plan to use only carbon credits verified according to high standards and to disclose information about the type of offsets employed. To ensure quality in our carbon credits, we have established a set of corporate criteria and principles based on the Oxford Principles for Net Zero-Aligned Carbon Offsetting.

To track and incentivise the company's performance on decarbonisation, we have established a performance indicator that assesses progress towards the 2030 decarbonisation ambition. The indicator is the first of its kind in Equinor to use a forecast-based methodology. The indicator tracks the internal forecast for Equinor's operated GHG emissions in 2030 relative to the reduction level required to meet the decarbonisation ambition, as well as progress on the portfolio of abatement projects. The indicator was implemented as an internal corporate KPI in 2023.

104 Equinor, Annual Report on Form 20-F 2022

In addition to our absolute emissions reduction efforts, we are focused on continuing to improve the industry-leading carbon and methane efficiency of our profitable upstream portfolio, enabling us to be the resilient and responsible producer of the oil and gas that the world demands. Performance on the upstream CO2 intensity of the oil and gas portfolio is integrated as a KPI for the BoD and CEC and is linked renumeration. The same KPI also informs renumeration for business-unit managers as well as an input into the general bonus for all employees.

# Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Scope 1 GHG emissions | Operational control | million tonnes CO2 | 11.4 | 12.0 | 13.3 | 14.7 | 14.9 | 15.4 | 15.4 |
| Scope 1+2 GHG emissions Norway | Operational control | million tonnes CO2 | 11.0 | 11.1 | 11.9 | 12.4 | 13.0 | 13.4 | 13.4 |
| Scope 1+2 GHG emissions | Operational control | million tonnes CO2 | 11.4 | 12.1 | 13.5 | 14.9 | 15.1 | 15.6 | 15.7 |
| Scope 2 GHG emissions (location based) | Operational control | million tonnes CO2 | 0.1 | 0.1 | 0.3 | 0.2 | 0.2 | 0.2 | 0.3 |
| Scope 2 GHG emissions (market based) | Operational control | million tonnes CO2 | 2.5 | 2.7 | 2.5 | 2.9 | 3.0 | 2.8 | 2.6 |
| Scope 3 GHG emissions (GHG Protocol cat. 11, use of sold products) | Equity basis | million tonnes CO2 | 243 | 249 | 250 | 247 | 252 | 250 | 239 |
| Business travel GHG emissions (GHG Protocol cat. 6) | Operational control | million tonnes CO2 | 0.05 | 0.01 | 0.02 | 0.1 | 0.1 | 0.1 | 0.1 |
| CO2 emissions | Operational control | million tonnes | 11.1 | 11.6 | 12.9 | 14.2 | 14.4 | 14.9 | 14.8 |
| CO2 emissions excl. flaring | Operational control | million tonnes | 10.4 | 11.0 | 11.9 | 13.0 | 13.3 | 13.6 | 13.4 |
| CO2 emissions from flaring | Operational control | million tonnes | 0.6 | 0.7 | 1.0 | 1.2 | 1.2 | 1.3 | 1.4 |
| CO2 emissions from upstream operations | Operational control | million tonnes | 7.6 | 7.8 | 8.7 | 9.6 | 9.3 | 9.2 | 9.7 |
| CO2 emissions from midstream operations | Operational control | million tonnes | 3.5 | 3.8 | 4.2 | 4.6 | 5.1 | 5.6 | 5.0 |
| CO2 emissions from other operations | Operational control | million tonnes | 0.02 | 0.01 | 0.01 | 0.01 | 0.11 | 0.11 | 0.04 |
| CO2 emissions | Equity basis | million tonnes | 9.1 | 9.9 | 10.1 | 11.5 | 11.6 | 12.0 | 12.7 |
| Upstream CO2 emissions intensity | Operational control | kg CO2 per barrel of oil equivalent (boe) | 6.9 | 7.0 | 8.0 | 9.5 | 9.0 | 8.8 | 9.8 |

Equinor, Annual Report on Form 20-F 2022 105

| Upstream CO 2 emissions intensity | Equity basis | kg CO 2 per barrel of oil equivalent (boe) | 8.5 | 8.8 | 9.2 | 10.7 | 10.3 | 10.4 | 13.0 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Maritime CO 2 emissions | Operational control | million tonnes CO 2 e | 3.8 | 3.8 | 4.9 | n/r | n/r | n/r | n/r |
| CH 4 emissions | Operational control | thousand tonnes | 11.2 | 14.5 | 17.7 | 19.0 | 20.0 | 19.3 | 24.2 |
| CH 4 intensity | Operational control | % (m3 CH 4 emitted per m3 marketed gas) | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 |
| Hydrocarbons flared | Operational control | thousand tonnes | 203 | 201 | 339 | 414 | 396 | 406 | 443 |
| Upstream flaring intensity | Operational control | tonnes of hydrocarbons flared per 1000 tonnes of hydrocarbon produced | 0.7 | 0.9 | 1.7 | 2.5 | 2.4 | 2.1 | 2.5 |
| Routine flaring (share of total) | Operational control | % | 3 | 14 | 31 | 27 | 21 | 10 | 14 |

#### Operated emissions

In 2022 Equinor was on track to meet its ambitions to halve its operated scope 1 and 2 emissions by 2030. Our total operated scope 1 and 2 GHG emissions for 2022 were 11.4 million tonnes - a 6% decrease from the previous year. Equinor has now achieved a reduction in absolute operated scope 1 and 2 emissions of around 30% relative to 2015.

The main drivers of our reduced scope 1 and 2 emissions were a combination of operational and portfolio measures including: divestment of our Kalundborg refinery and Bakken asset; modifications and emissions reduction initiatives at our onshore plants at Mongstad and Kårstæ; and a change in strategy at several of our NCS assets from gas injection to gas exports to maximise supplies to Europe.

In 2022, several abatement projects moved forward, including first power from the Hywind Tampen floating wind facility to our oil and gas production assets on the NCS and the sanctioning of electrification for Hammerfest LNG and the Njord field. We also saw positive contributions to our emissions reductions efforts through energy efficiency projects in Norway, which reduced emissions by 200,000 tonnes, and from our international portfolio including the Peregrine gas import solution, which is expected to avoid around 100,000 tonnes of CO$_{2}$ emissions per year in operated emissions.

![BBOX]0.2998,0.4847,0.2996,0.4949[/BBOX]evhbt154p1060

Figure: Operated scope 1 + scope 2 emissions 2022 vs 2021 with key levers/contributions.

![img-0.jpeg](img-0.jpeg)

Figure: End 2022 forecast for operated emissions to 2030.

#### Equity emissions

Equinor's equity CO$_{2}$ emissions in 2022 were 9.1 million tonnes, a decrease from 9.9 in 2021. In 2021 we provided field-based emissions disclosure of our operated emissions and our partner-operated Norwegian assets. This year, for the first time, we also provide field-based emissions for our international partner-operated assets in the USA, Canada, and other jurisdictions where we have approval from partners. We continue to work with our partners to encourage emissions disclosure on a field basis and have requested consent to publish emissions data from all partners from whom it is required.

#### Upstream intensity

In 2022, Equinor was on track to meet its ambitions with regard to upstream CO$_{2}$ intensity. The upstream CO$_{2}$ intensity of Equinor's operated portfolio decreased from 7.0 to 6.9kg CO$_{2}$/boe, well below the 2025 ambition of 8kg CO$_{2}$/boe. The main driver for this change was reduced CO$_{2}$ levels from operated Norwegian assets which changed their strategy from gas injection to gas export during 2022. There were also significant emissions reductions measures implemented in the upstream portfolio in 2022 (202,000 tonnes CO$_{2}$), as well as decommissioning of the Veskifrikk field and divestment of the Bakken asset in the United States, both of which had higher than average upstream emissions intensity. Increased production levels from the electrified asset Martin Linge also have a positive effect on the intensity.

![img-1.jpeg](img-1.jpeg)

Figure: Operated CO$_{2}$ intensity 2022 vs 6-year performance and 2025 target

# Methane

Equinor's 2022 methane intensity for our operated upstream and midstream business remained low at approximately 0.02%. This represents an industry-leading performance as Equinor's methane emissions intensity is around 12% of the average of members of the Oil and Gas Climate Initiative group of companies. Equinor continues to pursue a methane intensity target of near zero by 2030.

![img-2.jpeg](img-2.jpeg)

Figure: Operated scope 1 + scope 2 methane emissions intensity 2022 vs 6 year historical performance and vs OGCI average.

# Flaring

Our 2022 upstream flaring intensity was 0.7 tonnes/1000 tonnes of hydrocarbon produced compared with 0.9 in 2021. This is significantly lower than the industry average of 9 (IOGP 2021). Equinor's low flaring levels are due to continued focus on operational efficiency and leveraging the well-established gas infrastructure in Norway. The main reason for the reduced flaring levels in 2022 was decreased flaring from Martin Linge (which experienced start-up flaring in 2021), decommissioning of Veslefrikk B, turnaround maintenance at Statfjord A, the divestment of the Bakken asset, and the implementation of several emission reduction initiatives.

# Performance evaluation

2022 saw positive progress in Equinor's performance to reduce its absolute operated scope 1 and 2 emissions as well as a continued focus on maintaining industry-leading performance on the carbon and methane intensity of its upstream oil and gas portfolio. While portfolio changes and production strategy were significant contributors to the reduction in operated emissions and emissions intensity in 2022, Equinor made progress throughout the year in advancing abatement projects to bring emissions down in line with the 2030 ambition. The newly developed forecast indicator shows that the operated portfolio is currently on track to meet the company's 50% reduction ambition by 2030, despite a forecasted increase in emissions in 2025 due to new production projects coming onstream.

108 Equinor, Annual Report on Form 20-F 2022

# Reporting segment Performance

3.1 Optimised oil and gas
3.1.1 E&P Norway
3.1.2 E&P International
3.1.3 E&P USA
3.2 High value growth in renewables
3.3 Marketing, midstream and processing (MMP),
including new market opportunities in low carbon solutions
3.4 Other group

Equinor, Annual Report on Form 20-F 2022 109

# Reporting Segment Performance
## Introduction to segmental reporting

Equinor's business strategy is structured around three pillars: Always safe, High value, and Low carbon:

This means that, to create value as a leader in the energy transition, we are pursuing high value growth in renewables, and seeking new market opportunities in low-carbon solutions while, at the same time, optimising our oil and gas portfolio.

exhibit154p110i0

In order to effectively manage and execute our strategy, including the ability to measure the progress of the business against its strategic goals, Equinor's operations are organised into business areas and followed up through operating segments. The operating segments directly correspond to the reporting segments - with the exception of the operating segments, Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI), and Corporate staff and functions, which are aggregated into the reporting segment Other.

exhibit154p110i1

The Exploration & Production (E&P) segments are responsible for the discovery and appraisal of new resources and commercial development of the oil and gas portfolios within their respective geographical areas: E&P Norway on the Norwegian continental shelf, E&P USA in the USA and E&P International worldwide, except for Norway and the USA.

Marketing, Midstream & Processing (MMP) works to maximise value creation in Equinor's global mid- and downstream positions. The segment is responsible for the global marketing, trading, processing, and transportation of crude, petroleum products and natural gas, in addition to power and emissions trading. MMP also leads Equinor's focus in low-carbon solutions such as carbon capture and storage (CCS) and other low-carbon energy solutions.

The Renewables (REN) segment is responsible for developing and exploring areas within renewable energy, such as offshore wind, green hydrogen, storage solutions, and solar power.

### Inter-segmental transactions

Internal transactions in oil and gas volumes occur between reporting segments before volumes are sold in the market. Equinor has established a market-based transfer pricing methodology for the intercompany sale of oil and natural gas that meets the requirements of applicable laws and regulations. For further information, see section 2.2 High Value for production volumes and prices.

E&P Norway produces oil and natural gas including liquefied natural gas (LNG) which is sold internally to MMP. A large proportion of the oil and natural gas produced by E&P USA and oil from E&P International is also sold through MMP. The remaining oil and gas from E&P International and E&P USA is sold directly in the market. In 2022, the average transfer price for natural gas for E&P Norway was 31.22 USD/MMBtu (compared to 14.43 USD/MMBtu in 2021). For the oil sold from E&P Norway to MMP, the transfer price used is the applicable market-reflective price minus a cost recovery rate.

Equinor eliminates intercompany sales when combining the results of our reporting segments. Intercompany sales include transactions recorded in connection with oil and natural gas production in the E&P reporting segments, and in connection with the

110 Equinor, Annual Report on Form 20-F 2022

Equinor 2022 Reserves Report 1

exhibit155p2i0

# 2022 Oil and gas reserves report

Equinor 2022 Reserves Report 2

# Introduction

## About the report

This report presents Equinor's proved oil and gas reserves as of 31 December 2022. Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations-prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

In alignment with industry practice and regulatory requirements, we report operational performance and supplementary oil and gas information (unaudited). Numbers have been prepared in accordance with the reserve definitions of Rules 4-10(a)(1)-(32) of Regulations S-X of the United States Securities and Exchange Commission (SEC). All numbers are internal estimates produced by Equinor. Estimates of reserves should be regarded only as estimates that may change over time as further production history and additional information becomes available. The determination of these reserves is part of an ongoing process subject to continual revision. Moreover, identified reserves and contingent resources that may become proved in the future are excluded from the estimates of proved reserves provided in this report.

The Oil and gas reserves report may be downloaded from Equinor's website at www.equinor.com/reports. The report is also included as Exhibit 15.5 to the 2022 annual report on Form 20-F.

Equinor 2022 Reserves Report 3

# Operational performance

## Proved oil and gas reserves

Proved oil and gas reserves were estimated to be 5,191 million boe at year end 2022, compared to 5,356 million boe at the end of 2021.

![img-0.jpeg](img-0.jpeg)

Changes in proved reserves estimates are most commonly the result of revisions of estimates due to observed production performance or changes in prices or costs, extensions of proved areas through drilling activities or the inclusion of proved reserves in new discoveries through the sanctioning of new development projects. These changes are the result of continuous business processes and can be expected to continue to affect reserves in the future.

Proved reserves can also be added or subtracted through purchases and sales of reserves-in-place or factors outside management control.

Changes in oil and gas prices can affect the quantities of oil and gas that can be recovered from the accumulations. Higher oil and gas prices will normally allow more oil and gas to be recovered, while lower prices will normally result in reduced recovery. However, for fields with production sharing agreements (PSA), higher prices may result in reduced entitlement to produced volumes and lower prices may result in increased entitlement to produced volumes. These described changes are included in the revisions and improved recovery (IOR) category in the tables that follows in this report.

The principles for booking proved gas reserves are limited to contracted gas sales or gas with access to a robust gas market.

Equinor prepares its disclosures for oil and gas reserves and certain other supplemental oil and gas disclosures by geographical area, as required by the US Securities and Exchange Commission (SEC). The geographical areas are defined by country and continent. These are Norway, Eurasia excluding Norway, Africa, the USA and the Americas excluding USA.

In Norway and other countries where there is a high degree of certainty that the authorities will approve the plan for development and operation (PDO), Equinor recognises reserves as proved undeveloped reserves when the PDO is submitted to the authorities. Otherwise, reserves are generally booked as proved undeveloped reserves when regulatory approval is received, or when such approval is imminent. Undrilled well locations in onshore fields in the USA are generally booked as proved undeveloped reserves when a development plan has been adopted and the well locations are scheduled to be drilled within five years.

Approximately 87% of Equinor's proved reserves are located in the Organisation of Economic Co-Operation and Development (OECD) countries. Norway is by far the most important contributor in this category, followed by the USA. Of Equinor's total proved reserves, 5% are related to PSAs in non-OECD countries such as Angola, Brazil, Azerbaijan, Algeria, Nigeria and Libya. Other proved non-OECD reserves are related to concession fields in Argentina and Brazil, representing all together 7% of Equinor's total proved reserves.

Equinor 2022 Reserves Report 4

exhibit155p5i0

Equinor 2022 Reserves Report 5

## Changes in proved reserves in 2022

The total volume of proved reserves decreased by 165 million boe in 2022.

### Change in proved reserves

| (million boe) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Revisions and improved recovery (IOR) | 344 | 596 | (171) |
| Extensions and discoveries | 278 | 306 | 131 |
| Purchases of reserves-in-place | 36 | - | 6 |
| Sales of reserves-in-place | (128) | (96) | - |
| Total reserve additions | 530 | 806 | (34) |
| Production | (695) | (710) | (710) |
| Net change in proved reserves | (165) | 96 | (744) |

### Revisions and IOR

Revisions of previously booked reserves, including the effect of improved recovery, increased the proved reserves by net 344 million boe in 2022. The increase is the result of 433 million boe in positive revisions and increased recovery, partially offset by 89 million boe in negative revisions. Many producing fields had positive revisions due to better performance, new drilling targets and improved recovery measures, as well as reduced uncertainty due to further drilling and production experience. The positive revisions also included a direct effect of higher commodity prices, increasing the proved reserves by approximately 63 million boe through increased economic lifetime on several fields. The negative revisions were mainly related to unforeseen events and operational challenges resulting in reduced production potential on some fields in addition to reduced entitlement volumes from several fields with PSAs.

### Extensions and discoveries

A total of net 278 million boe of new proved reserves were added through extensions and discoveries. Continuous extension of the proved area in the Appalachian basin together with a record number of submitted PDOs in Norway, of which Munin and Halten Øst were the largest, are the main contributors in this category. In addition, this category includes extensions of proved areas through drilling of new wells in previously undrilled areas at other fields in Norway and in Argentina.

### Purchases and sales of reserves-in-place

Equinor 2022 Reserves Report 6

A total of 36 million boe of new proved reserves in the Stafford Area, which covers the Norwegian continental shelf (NCS) and UK continental shelf, were purchased in 2022.

A total of 128 million boe of sales of reserves-in-place are related to the exit of joint arrangements in Russia in addition to the sale of the Ekofisk Area and a minority share in the Martin Linge field on the NCS. Equinor has no remaining proved reserves in Russia at year end 2022.

In the fourth quarter of 2021, Equinor entered into an agreement to divest our interests in the Corrib field in Ireland. Closing is dependent on governmental approval and is expected to take place in the first quarter of 2023. The sale will result in an estimated reduction in proved reserves of approximately 11 million boe.

## Production

The 2022 entitlement production was 695 million boe, down from 710 million boe in 2021 due to sales, natural decline and operational challenges.

## Development of reserves

In 2022, 241 million boe were matured from proved undeveloped to proved developed reserves. Continued drilling in the Appalachian basin in the USA and on major offshore assets in addition to the production start of Askeladd (Snøhvit), Johan Sverdrup Phase 2 and Peregrino Phase 2 contributed to the major portion of maturation of proved undeveloped to proved developed reserves in 2022. Smaller volumes are related to individual assets world-wide. The positive revision and improved recovery of proved developed reserves of 322 million boe is related to increased economic lifetime at some fields, increased activity levels, higher commodity prices and implementation of improved recovery projects. Finally, 256 million boe was added to proved undeveloped reserves through extensions and discoveries, the largest of these being Munin and Halten Øst in Norway, in addition to further development in the Appalachian basin in the USA.

In 2021, 881 million boe were matured from proved undeveloped to proved developed reserves. Production start of the Troll Phase 3 project and the Martin Linge field added more than 600 million boe to the proved developed reserves. Continued drilling in the Appalachian basin in the USA and in the Oseberg, Johan Sverdrup, and Snorre fields in Norway increased the proved developed reserves by 180 million boe during 2021. The remaining 100 million boe of the matured volume is related to a wide range of activities on assets world-wide. The positive revisions of both proved developed reserves of 471 million boe and proved undeveloped reserves of 125 million boe are related to higher commodity prices, increasing economic lifetime at some fields, as well as increased activity levels. Undeveloped extensions and discoveries of 269 million boe are dominated by the onshore assets in the Appalachian basin and in Argentina, together with the Bacalhau field in Brazil and the Johan Castberg field in Norway.

In 2020, 250 million boe were matured from proved undeveloped to proved developed reserves. Continued drilling in the Appalachian basin in the USA and in the Johan Sverdrup, Ærfugl and Oseberg fields in Norway, increased the proved developed reserves by 200 million boe during 2020. The remaining 50 million boe of the matured volume was related to a wide range of activities on assets world-wide. The negative revision of proved undeveloped reserves of 131 million boe was both related to lower commodity prices, decreasing economic lifetime at some fields, as well as reduced activity levels and operational challenges. This resulted in a reduction of proved undeveloped reserves, particularly in the onshore assets in the USA, in fields in Brazil and in the UK.

Over the last five years, Equinor has matured 2,376 million boe of proved undeveloped reserves to proved developed reserves.

## Development of proved reserves

| (million boe) | 2022 |  |  | 2021 |  |  | 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Total proved reserves | Developed | Undeveloped | Total proved reserves | Developed | Undeveloped | Total proved reserves | Developed | Undeveloped |
| At 1 January | 5,356 | 3,818 | 1,538 | 5,260 | 3,222 | 2,038 | 6,004 | 3,679 | 2,325 |
| Revisions and improved recovery | 344 | 322 | 22 | 596 | 471 | 125 | (171) | (40) | (131) |
| Extensions and discoveries | 278 | 22 | 256 | 306 | 37 | 269 | 131 | 37 | 94 |
| Purchases of reserves-in-place | 36 | 29 | 7 | - | - | - | 6 | 6 | 0 |
| Sales of reserves-in-place | (128) | (66) | (62) | (96) | (83) | (13) | - | - | - |
| Production | (695) | (695) | - | (710) | (710) | - | (710) | (710) | - |
| Moved from undeveloped to developed | - | 241 | (241) | - | 881 | (881) | - | 250 | (250) |
| At 31 December | 5,191 | 3,672 | 1,519 | 5,356 | 3,818 | 1,538 | 5,260 | 3,222 | 2,038 |

Equinor 2022 Reserves Report 7

## Proved developed and undeveloped reserves

| As of 31 December 2022 | Oil and condensate (mmboe) | NGL (mmboe) | Natural gas (mmcf) | Total oil and gas (mmboe) |
| --- | --- | --- | --- | --- |
| Developed |  |  |  |  |
| Norway | 731 | 149 | 10,294 | 2,714 |
| Eurasia excluding Norway | 35 | 3 | 89 | 53 |
| Africa | 107 | 8 | 91 | 131 |
| USA | 161 | 51 | 1,921 | 554 |
| Americas excluding USA | 216 | - | 25 | 220 |
| Total developed proved reserves | 1,249 | 210 | 12,420 | 3,672 |
| Undeveloped |  |  |  |  |
| Norway | 562 | 60 | 2,087 | 994 |
| Eurasia excluding Norway | 48 | 0 | 5 | 50 |
| Africa | 17 | 0 | - | 17 |
| USA | 56 | 9 | 423 | 140 |
| Americas excluding USA | 316 | - | 11 | 318 |
| Total undeveloped proved reserves | 999 | 70 | 2,526 | 1,519 |
| Total proved reserves | 2,248 | 280 | 14,946 | 5,191 |

As of 31 December 2022, the total proved undeveloped reserves amounted to 1,519 million boe, 65% of which are related to fields in Norway. The Johan Sverdrup, Snøhvit and Oseberg area fields, which have continuous development activities, together with fields not yet in production, such as Johan Castberg and Munin, have the largest proved undeveloped reserves in Norway. The largest assets with proved undeveloped reserves outside Norway, are Bacalhau, Peregrino and Roncador in Brazil, the Appalachian basin, Vito and Caesar-Tonga in the USA, Mariner in the UK, and ACG in Azerbaijan. All these fields are either producing or will start production within the next five years.

For fields with proved reserves where production has not yet started, investment decisions have already been sanctioned and investments in infrastructure and facilities have commenced. There are no material development projects, which would require a separate future investment decision by management, included in our proved reserves. Some offshore development activities will take place more than five years from the disclosure date on many fields, but these are mainly related to incremental type of spending, such as drilling of additional wells from existing facilities, in order to secure continued production.

For projects under development, the Covid-19 pandemic impacted progress due to personnel limitations on offshore as well as onshore facilities and yards. The pandemic has delayed production start at the Johan Castberg field in Norway. The field was originally planned to start production in 2022, four years after the field development was sanctioned. The start-up is delayed to 2024.

For our onshore assets, all proved undeveloped reserves are limited to wells that are scheduled to be drilled within five years.

In 2022, Equinor incurred USD 6.9 billion in development costs relating to assets carrying proved reserves, of which USD 5.8 billion was related to proved undeveloped reserves.

### Reserves replacement

The reserves replacement ratio is defined as the net amount of proved reserves added divided by produced volumes in any given period.

The 2022 reserves replacement ratio was 76% and the corresponding three-year average was 62%.

The organic reserves replacement ratio, excluding sales and purchases, was 89% in 2022 compared to 127% in 2021. The organic average three-year replacement ratio was 70% at the end of 2022 compared to 68% at the end of 2021.

Equinor 2022 Reserves Report 8

## Reserves replacement ratio

|  | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Annual | 76% | 113% | (5%) |
| Three-year-average | 62% | 61% | 95% |

## Proved reserves by region

### Proved reserves in Norway

A total of 3,708 million boe was recognised as proved reserves on the NCS, representing 71% of Equinor's total proved reserves at year end 2022. Of these, 3,208 million boe are related to fields and field areas currently in production, 94% of which is operated by Equinor.

Production experience, further drilling and improved recovery on many of Equinor's producing fields contributed with positive revisions of 318 million boe in 2022. Negative revisions totalled 43 million boe and were mainly related to operational challenges. Higher commodity prices increased the proved reserves by 74 million boe. PDOs for several new fields have been submitted to the Norwegian Ministry of Petroleum and Energy in 2022, contributing to extensions and discoveries which totalled 181 million boe in 2022. This increase also included the addition of new segments to some fields.

Of total proved reserves on the NCS, 2,714 million boe (73%) are proved developed reserves at year end 2022. Of the total proved reserves in this area, 60% are gas reserves mainly related to large fields such as Troll, the Oseberg area and Snøhvit, and 40% are liquid reserves mainly related to large fields such as Johan Sverdrup, Snorre and the Oseberg area.

![exhibit155p9i0 logo]() exhibit155p9i0

Equinor 2022 Reserves Report 9

#### **Proved reserves in Eurasia, excluding Norway**

A total of 103 million boe was recognised as proved reserves in the United Kingdom, Azerbaijan and Ireland at year end 2022. Eurasia excluding Norway represents 2% of Equinor's total proved reserves. All fields in this area are producing. The sale of our interest in joint arrangements in Russia in 2022 resulted in a reduction of proved reserves of 86 million boe.

Of total proved reserves in Eurasia excluding Norway, 53 million boe (52%) are proved developed reserves at year end 2022. Of the total proved reserves in this area, 84% are liquid reserves mainly related to larger fields such as ACG and Mariner, and 16% are gas reserves mainly related to the Corrib field and the UK part of the Statfjord field.

#### **Proved reserves in Africa**

A total of 148 million boe was recognised as proved reserves in PSAs in Angola, Algeria, Nigeria and Libya at year end 2022. Angola and Algeria are the primary contributors to the proved reserves in this area. Africa represents 3% of Equinor's total proved reserves. All fields in this area are producing. Net positive revisions increased the proved reserves by 29 million boe in 2022, mainly related to extended contract and longer technical lifetime on some fields, new wells and positive reservoir performance. Higher commodity prices decreased the proved reserves in Africa by 20 million boe.

Of total proved reserves in Africa, 131 million boe (88%) are proved developed reserves at year end 2022. Of the total proved reserves in this area, 89% are liquid reserves mainly related to large oil fields such as Agbami, In Amenas and Murzuq, and 11% are gas reserves related to the In Salah field.

#### **Proved reserves in the USA**

A total of 694 million boe was recognised as proved reserves related to onshore operations and offshore fields in the USA at year end 2022. The USA represents 13% of Equinor's total proved reserves. All fields in this area except for Vito are in the production phase at year end. Most of the onshore operations and offshore fields in the USA are mature and on decline. New wells extending the proved areas in the USA onshore assets in 2022, added a total of 89 million boe in the extensions and discoveries category. The proved reserves in the USA were also subject to a net positive revision of 49 million boe, mainly due to increased activity levels and higher commodity prices.

Of total proved reserves in the USA, 554 million boe (80%) are proved developed reserves at year end 2022. Of the total proved reserves in this area, 60% are gas reserves mainly related to the Appalachian basin, and 40% are liquid reserves mainly related to the Appalachian basin and the offshore fields Caesar-Tonga and St. Malo.

Equinor 2022 Reserves Report 10

exhibit155p11i0

#### **Proved reserves in the Americas excluding USA**

A total of 538 million boe was recognised as proved reserves in the Americas excluding USA at year end 2022, generally at the same level as at year end 2021. Three fields are located offshore Brazil, two fields offshore Canada and one field onshore in Argentina. The Americas excluding USA represents 10% of Equinor's total proved reserves. All fields in this area except for Bacalhau are in the production phase at year end.

Of total proved reserves in the Americas excluding USA, 220 million boe (41%) are proved developed reserves at year end 2022. Of the total proved reserves in this area, 99% are liquid reserves mainly related to large oil fields such as Bacalhau, Peregrino and Roncador, and 1% are gas reserves.

exhibit155p11i1

#### **Preparation of reserves estimates**

Equinor's annual reporting process for proved reserves is coordinated by a central corporate reserves management (CRM) team consisting of qualified professionals in geosciences, reservoir and production technology and financial evaluation. The team has an average of more than 25 years' experience in the oil and gas industry. CRM reports to the senior vice president of accounting and financial compliance in the Chief financial officer organisation and is independent of the exploration and production business areas. All the reserves estimates have been prepared by Equinor's technical staff.

Although the CRM team reviews the information centrally, each asset team is responsible for ensuring compliance with the requirements of the SEC and Equinor's corporate standards. Information about proved oil and gas reserves, standardised measures of discounted net cash flows related to proved oil and gas reserves and other information related to proved oil and gas reserves, is collected from the local asset teams and checked by CRM for consistency and conformity with applicable standards. The final numbers for each asset are quality-controlled and approved by the responsible asset managers, before aggregation to the required reporting level by CRM.

The person with primary responsibility for overseeing the preparation of the reserves estimates is the manager of the CRM team. The person who currently holds this position has a bachelor's degree in earth sciences from the University of Gothenburg, and a master's

Equinor 2022 Reserves Report 11

degree in petroleum exploration and exploitation from Chalmers University of Technology in Gothenburg, Sweden. She has 37 years' experience in the oil and gas industry, 36 of them with Equinor. She is a member of the Society of Petroleum Engineering (SPE) and of the UNECE Expert Group on Resource Management (EGRM).

#### **DeGolyer and MacNaughton report**

Petroleum engineering consultants DeGolyer and MacNaughton have carried out an independent evaluation of Equinor's proved reserves as of 31 December 2022 using data provided by Equinor. The evaluation accounts for 100% of Equinor's proved reserves including equity accounted entities. The aggregated net proved reserves estimates prepared by DeGolyer and MacNaughton do not differ materially from those prepared by Equinor when compared on the basis of net equivalent barrels.

A report of third party summarising this evaluation is included as Exhibit 15.3 in the annual report on Form 20-F for 2022.

#### **Net proved reserves**

| At 31 December 2022 | Oil and condensate (mmboe) | NGL/LPG (mmboe) | Natural gas (mmmcf) | Oil equivalent (mmboe) |
| --- | --- | --- | --- | --- |
| Estimated by Equinor | 2,248 | 280 | 14,946 | 5,191 |
| Estimated by DeGolyer and MacNaughton | 2,311 | 289 | 15,252 | 5,318 |

Equinor 2022 Reserves Report 12

## Operational statistics

### Developed and undeveloped oil and gas acreage

Total gross and net developed and undeveloped oil and gas acreage, in which Equinor had interests at 31 December 2022, are presented in the table below.

#### Total developed and undeveloped oil and gas acreage

| At 31 December 2022 (in thousands of acres) |  | Eurasia excluding |  |  | Americas excluding |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Norway | Norway | Africa | USA | USA |  |
| Developed acreage | - gross 1) | 903 | 41 | 846 | 387 | 259 | 2,437 |
|  | - net 2) | 370 | 14 | 267 | 96 | 63 | 809 |
| Undeveloped acreage | - gross 1) | 11,473 | 1,487 | 6,006 | 1,679 | 22,655 | 43,300 |
|  | - net 2) | 5,117 | 751 | 1,813 | 656 | 10,018 | 18,355 |

1) A gross value reflects the acreage in which Equinor has a working interest.

2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same acreage.

Equinor's largest concentrations of net developed acreage in Norway are in the Troll, Oseberg Area, Snøhvit, Ormen Lange and Johan Sverdrup fields. In Africa, the Algerian gas development projects in Amenas and in Salah represent the largest concentrations of net developed acreage. In the USA, the Appalachian basin assets represents the largest net developed acreage.

The largest concentration of net undeveloped acreage is in Argentina, which represents 36% of Equinor's total net undeveloped acreage, followed by Norway and Canada.

At 31 December 2022, Equinor no longer holds acreage in Russia due to the exit of joint arrangements.

Equinor holds acreage in numerous concessions, blocks and leases. The terms and conditions regarding expiration dates vary significantly from property to property. Work programmes are designed to ensure that the exploration potential of any property is fully evaluated before expiration.

Acreage related to several of these concessions, blocks and leases are scheduled to expire within the next three years. Most of the undeveloped acreage that will expire within the next three years, is related to early exploration activities where no production is expected in the foreseeable future. The expiration of these concessions, blocks and leases will therefore not have any material impact on our proved reserves. Any acreage which has already been evaluated to be non-profitable may be relinquished prior to the current expiration date. In other cases, Equinor may decide to apply for an extension if more time is needed to fully evaluate the potential of the properties. Historically, Equinor has generally been successful in obtaining such extensions.

Equinor 2022 Reserves Report 13

### Productive oil and gas wells

The number of gross and net productive oil and gas wells, in which Equinor had interests at 31 December 2022, are presented in the table below.

The gross and net number of oil wells has decreased from last year mainly due to the exit of joint arrangements in Russia and the sale of the Ekofisk Area. The gross and net number of gas wells has increased from last year mainly due to continued drilling in the Appalachian basin onshore assets in the USA.

The total gross number of productive wells at year end 2022 includes 319 oil wells and 12 gas wells with multiple completions or wells with more than one branch.

### Number of productive oil and gas wells

| At 31 December 2022 |  | Eurasia excluding |  |  | Americas excluding |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Norway | Norway | Africa | USA | USA |  |
| Oil wells | - gross 1) | 776 | 163 | 467 | 75 | 231 | 1712 |
|  | - net 2) | 335 | 37 | 71 | 24 | 68 | 536 |
| Gas wells | - gross 1) | 225 | 6 | 115 | 2421 | 0 | 2767 |
|  | - net 2) | 97 | 2 | 44 | 469 | 0 | 613 |

1) A gross value reflects the number of wells in which Equinor owns a working interest.

2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.

Equinor 2022 Reserves Report 14

### Net productive and dry oil and gas wells drilled

The following table presents the number of net productive and dry exploratory and development oil and gas wells drilled and completed or abandoned over the past three years. Productive wells include exploratory wells in which hydrocarbons were discovered, and where drilling or completion has been suspended pending further evaluation. A dry well is a well found to be incapable of producing sufficient quantities to justify completion as an oil or gas well. Dry development wells are mainly injector wells, but does also include drilled and permanently abandoned wells.

| Number of net productive and dry oil and gas wells drilled 1) | Eurasia |  |  | Americas |  | Total |
| --- | --- | --- | --- | --- | --- | --- |
|  | Norway | excluding Norway | Africa | USA | excluding USA |  |
| Year 2022 |  |  |  |  |  |  |
| Net productive and dry exploratory wells drilled | 6.7 | - | 0.3 | 0.5 | 5.1 | 12.6 |
| - Net dry exploratory wells | 4.5 | - | 0.2 | 0.5 | 2.1 | 7.3 |
| - Net productive exploratory wells | 2.2 | - | 0.1 | - | 3.0 | 5.3 |
| Net productive and dry development wells drilled | 35.4 | 5.4 | 4.0 | 27.6 | 12.3 | 84.7 |
| - Net dry development wells | 6.4 | 1.8 | 0.9 | - | 0.1 | 9.2 |
| - Net productive development wells | 28.9 | 3.6 | 3.1 | 27.6 | 12.2 | 75.5 |
| Year 2021 |  |  |  |  |  |  |
| Net productive and dry exploratory wells drilled | 7.4 | 0.5 | - | - | 0.6 | 8.5 |
| - Net dry exploratory wells | 4.0 | 0.5 | - | - | 0.6 | 5.0 |
| - Net productive exploratory wells | 3.5 | - | - | - | - | 3.5 |
| Net productive and dry development wells drilled | 38.8 | 26.6 | 2.0 | 19.7 | 8.5 | 95.6 |
| - Net dry development wells | 8.3 | 8.6 | 0.4 | - | 0.4 | 17.8 |
| - Net productive development wells | 30.5 | 18.0 | 1.5 | 19.7 | 8.1 | 77.8 |
| Year 2020 |  |  |  |  |  |  |
| Net productive and dry exploratory wells drilled | 8.2 | 2.0 | - | 1.1 | 2.7 | 14.0 |
| - Net dry exploratory wells | 4.7 | 1.0 | - | 0.4 | 0.9 | 6.9 |
| - Net productive exploratory wells | 3.6 | 1.0 | - | 0.7 | 1.8 | 7.0 |
| Net productive and dry development wells drilled | 27.6 | 22.1 | 1.6 | 48.2 | 8.7 | 108.2 |
| - Net dry development wells | 4.0 | 3.9 | - | - | 0.7 | 8.6 |
| - Net productive development wells | 23.6 | 18.2 | 1.6 | 48.2 | 8.0 | 99.6 |

1) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.

Equinor 2022 Reserves Report 15

### Exploratory and development drilling in process

The following table presents the number of gross and net exploratory and development oil and gas wells in the process of being drilled, or drilled but not yet put on stream at 31 December 2022.

#### Number of wells in progress

| At 31 December 2022 |  | Eurasia excluding |  |  | Americas excluding |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Norway | Norway | Africa | USA | USA |  |
| Exploratory wells | - gross 1) | 4.0 | - | - | 1.0 | - | 5.0 |
|  | - net 2) | 2.2 | - | - | 0.3 | - | 2.4 |
| Development wells | - gross 1) | 36.0 | 5.0 | 7.0 | 9.0 | 8.0 | 65.0 |
|  | - net 2) | 15.7 | 1.2 | 2.0 | 4.0 | 1.8 | 24.8 |

1) A gross value reflects the number of wells in which Equinor owns a working interest.

2) The net value corresponds to the sum of the fractional working interests owned by Equinor in the same gross wells.

### Delivery commitments

Equinor is responsible for managing, transporting and selling the Norwegian State's oil and gas from the NCS on behalf of the Norwegian State's direct financial interest (SDFI). These reserves are sold in conjunction with Equinor's own reserves. As part of this arrangement, Equinor delivers gas to customers under various types of sales contracts. In order to meet the commitments, a field supply schedule is utilised to ensure the highest possible total value for Equinor and SDFI's joint portfolio of oil and gas.

Equinor's and SDFI's delivery commitments under bilateral agreements for the calendar years 2023, 2024, 2025 and 2026 expressed as the sum of expected gas off-take, are equal to 43.3, 26.4, 20.2 and 10.6 bcm, respectively. Delivery commitments under bilateral agreements is declining over time as our customers are increasingly requesting more and more short-term contracts and increased volumes are traded on the spot market.

Equinor's currently developed gas reserves on the NCS are more than sufficient to meet our share of these commitments for the next four years.

Any remaining volumes after covering our delivery commitments under the bilateral agreements, will be sold through trading activities at the hubs.

Equinor 2022 Reserves Report 16

## Entitlement production

The following tables present Equinor's Norwegian and international entitlement production of oil, condensate, NGL and natural gas for the periods indicated. The stated production volumes are the volumes to which Equinor is entitled, pursuant to conditions laid down in licence agreements and PSAs. The production volumes are net of royalty oil paid in-kind, and of gas used for fuel and flaring. Production is based on proportionate participation in fields with multiple owners and does not include production of the Norwegian State's oil and gas. NGL includes both LPG and naphtha. For further information on production volumes see section Terms and abbreviations.

Equinor 2022 Reserves Report 17

## Entitlement production

|  | Consolidated companies |  |  |  |  |  | Equity accounted |  |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Subtotal | Eurasia excluding Norway | Americas excluding USA | Subtotal |  |
| Oil and condensate (mmboe) |  |  |  |  |  |  |  |  |  |  |
| 2022 | 188 | 11 | 32 | 33 | 23 | 287 | 1 | 3 | 4 | 291 |
| 2021 | 200 | 15 | 32 | 37 | 19 | 303 | 5 | 2 | 7 | 310 |
| 2020 | 193 | 15 | 39 | 48 | 25 | 320 | 1 | 1 | 2 | 322 |
| NGL (mmboe) |  |  |  |  |  |  |  |  |  |  |
| 2022 | 34 | 0 | 2 | 8 | - | 45 | - | - | - | 45 |
| 2021 | 38 | 0 | 3 | 9 | - | 49 | - | - | - | 49 |
| 2020 | 40 | 0 | 3 | 11 | - | 54 | - | - | - | 54 |
| Natural gas (mmmcf) |  |  |  |  |  |  |  |  |  |  |
| 2022 | 1,608 | 23 | 28 | 346 | 7 | 2,012 | 0 | 2 | 3 | 2,015 |
| 2021 | 1,500 | 20 | 41 | 396 | 8 | 1,966 | 3 | 1 | 5 | 1,971 |
| 2020 | 1,425 | 26 | 42 | 373 | 9 | 1,874 | 3 | 1 | 3 | 1,878 |
| Combined oil, condensate, NGL and natural gas (mmboe) |  |  |  |  |  |  |  |  |  |  |
| 2022 | 508 | 16 | 40 | 103 | 24 | 691 | 1 | 3 | 5 | 695 |
| 2021 | 505 | 18 | 42 | 117 | 20 | 703 | 6 | 2 | 8 | 710 |
| 2020 | 486 | 20 | 49 | 126 | 26 | 708 | 2 | 1 | 3 | 710 |

The Troll field in Norway is the only field containing more than 15% of total proved reserves based on barrels of oil equivalent.

| Troll entitlement production | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Troll field |  |  |  |
| Oil and condensate (mmboe) | 7 | 8 | 9 |
| NGL (mmboe) | 2 | 2 | 2 |
| Natural gas (mmmcf) | 427 | 403 | 378 |
| Combined oil, condensate, NGL and natural gas (mmboe) | 85 | 82 | 79 |

Equinor 2022 Reserves Report 18

# Supplementary oil and gas information (unaudited)

In accordance with the US Financial Accounting Standards Board Accounting Standards Codification 'Extractive Activities - Oil and Gas' (Topic 932), Equinor is reporting certain supplemental disclosures about oil and gas exploration and production operations. While this information is developed with reasonable care and disclosed in good faith, it is emphasised that some of the data is necessarily imprecise and represents only approximate amounts because of the subjective judgement involved in developing such information. Accordingly, this information may not necessarily represent the present financial condition of Equinor or its expected future results.

For further information regarding the reserves estimation requirement, see note 12 Property, plant and equipment - Estimation uncertainty regarding determining oil and gas reserves and Estimation uncertainty; Proved oil and gas reserves in the annual report on Form 20-F for 2022.

No events have occurred since 31 December 2022 that would result in a significant change in the estimated proved reserves or other figures reported as of that date.

## Proved oil and gas reserves

Equinor's proved oil and gas reserves have been estimated by its qualified professionals in accordance with industry standards under the requirements of the US Securities and Exchange Commission (SEC), Rule 4-10 of Regulation S-X. Statements of reserves are forward-looking statements. Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations-prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

The determination of these reserves is part of an ongoing process subject to continual revision as additional information becomes available. Estimates of proved reserve quantities are dynamic and change over time as new information becomes available. Moreover, identified reserves and contingent resources that may become proved in the future are excluded from the estimates of proved reserves.

Equinor's proved reserves are recognised under various forms of contractual agreements, including PSAs where Equinor's share of reserves can vary due to commodity prices or other factors. Reserves from agreements such as PSAs are based on the volumes to which Equinor has access (cost oil and profit oil), limited to available market access. At 31 December 2022, 5% of total proved reserves were related to such agreements, representing 10% of the oil, condensate and NGL reserves and 1% of the gas reserves. This compares with 6% and 5% of total proved reserves for 2021 and 2020, respectively. Net entitlement oil and gas production from fields with such agreements was 44 million boe during 2022, compared to 49 million boe for 2021 and 59 million boe for 2020. Equinor participates in such agreements in Algeria, Angola, Azerbaijan, Brazil, Libya and Nigeria.

Equinor is recording, as proved reserves, volumes equivalent to our tax liabilities under negotiated fiscal arrangements (PSAs) where the tax is paid on behalf of Equinor. Reserves are net of royalty volumes in the USA and net of royalty paid in-kind in PSA fields. Proved reserves does not include quantities consumed during production.

Rule 4-10 of Regulation S-X requires that the estimation of reserves shall be based on existing economic conditions, including a 12-month average price determined as an unweighted arithmetic average of the first-of-the month price for each month within the reporting period, unless prices are defined by contractual arrangements. Volume weighted average prices for the total Equinor portfolio, and the Brent blend price, are presented in the following table:

Equinor 2022 Reserves Report 19

|  | Volume weighted average prices at 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Brent blend (USD/boe) | Oil (USD/boe) | Condensate (USD/boe) | NGL (USD/boe) | Natural gas (USD/mmbtu) |
| 2022 | 101.24 | 100.30 | 90.79 | 56.23 | 30.66 |
| 2021 | 69.22 | 67.61 | 65.02 | 47.17 | 11.89 |
| 2020 | 41.26 | 40.60 | 33.99 | 23.72 | 3.18 |

Higher commodity prices affected the profitable reserves to be recovered from accumulations, resulting in increased proved reserves. The positive revisions due to higher price are in general a result of later economic cut-off. For fields with a PSA the effect of higher prices is to some degree offset by reduced entitlement to the reserves. These changes are all included in the revision category, giving a net increase of Equinor's proved reserves at year end.

From the NCS, Equinor is responsible for managing, transporting and selling the Norwegian State's oil and gas on behalf of the Norwegian State's direct financial interest (SDFI). These reserves are sold in conjunction with the Equinor reserves. As part of this arrangement, Equinor delivers and sells gas to customers in accordance with various types of sales contracts on behalf of the SDFI. In order to fulfil the commitments, Equinor utilises a field supply schedule which provides the highest possible total value for the joint portfolio of oil and gas between Equinor and the SDFI.

Equinor and the SDFI receive income from the joint gas sales portfolio based upon their respective share in the supplied volumes. For sales of the SDFI gas, to Equinor and to third parties, the payment to the Norwegian State is based on achieved prices, a net back formula calculated price or market value. All of the Norwegian State's oil and NGL is acquired by Equinor. The price Equinor pays to the SDFI for the crude oil is based on market reflective prices. The prices for NGL are either based on achieved prices, market value or market reflective prices. The regulations of the owner's instruction may be changed or withdrawn by the Equinor ASA's general meeting.

Topic 932 requires the presentation of reserves and certain other supplemental oil and gas disclosures by geographic area, defined as country or continent containing 15% or more of total proved reserves. At 31 December 2022, Norway is the only country in this category, with 71% of the total proved reserves. The USA contains close to 15% of the total proved reserves at 31 December 2022 and has been close to this level for several years. Management has therefore determined that the most meaningful presentation of geographical areas in 2022 would be Norway, the USA, and the continents of Eurasia excluding Norway, Africa, and Americas excluding USA.

#### Proved reserves movements

The largest relative changes in the proved reserves within a geographic area compared to the previous year for each of the last three years, are summarised below. All changes in the Net proved reserves (in million boe) table that represent 10% or more of the net proved reserves in million boe at the beginning of each year are discussed.

#### Proved reserves movements 2022

##### Eurasia excluding Norway

The net decrease of 14 million boe in revisions and improved recovery in Eurasia excluding Norway is the combined effect of mainly negative revisions based on reduced production potential, and reduced entitlement volumes resulting from higher commodity prices. Purchase of the UK part of the Stafford field is the main reason for the increase of 15 million boe through purchases of reserves-in-place in this area. Exit from our Russian joint arrangements reduced the proved reserves in both consolidated (10 million boe) and equity accounted (76 million boe) companies and is included as a sales of reserves-in-place.

##### Africa

The net effect of revisions and improved recovery of 29 million boe in Africa is the combined effect of 46 million boe in positive revisions resulting from both longer economic lifetime with higher commodity prices as well as extended contract and longer technical lifetime on some fields, and negative revisions of 17 million boe related to reduced entitlement volumes with higher commodity prices.

##### USA

The increase of 89 million boe in extensions and discoveries in the USA is the result of new wells drilled in previously unproven areas in our onshore developments in the Appalachian basin assets.

##### Americas excluding USA

The increase of 9 million boe in extensions and discoveries in the Americas excluding USA is the result of new wells drilled in previously unproven areas in our onshore developments in Argentina.

#### Proved reserves movements 2021

##### Norway

Equinor 2022 Reserves Report 20

The increase of 465 million boe in revisions and improved recovery in Norway was the combined effect of positive revisions following increased certainty in the ultimate recovery at many fields, prolonged economic lifetime at several fields due to higher commodity prices, and decisions to install low pressure production facilities increasing the future recovery at the Oseberg and Ormen Lange fields.

#### **Eurasia excluding Norway**

The net decrease of 16 million boe in equity accounted assets in the revisions and improved recovery category was related to proved reserves in Russia, where negative revisions of 35 million boe due to reduced production potential in some areas was partially offset by positive revisions based on increased certainty in the expected ultimate recovery in other areas.

#### **USA**

The increase of 78 million boe in revisions and improved recovery was the combined effect of positive revisions following increased certainty in the ultimate recovery, and prolonged economic lifetime at several fields mainly due to higher commodity prices. Sales of reserves-in-place of 89 million boe was a result of the divestment of our interests in the Bakken assets which was completed in 2021.

#### **Americas excluding USA**

The increase of 62 million boe in revisions and improved recovery was mainly related to proved reserves in Brazil and is the combined effect of positive revisions following increased certainty in the ultimate recovery, and prolonged economic lifetime due to higher commodity prices. The increase of 210 million boe in extensions and discoveries was the result of sanctioning of the Bacalhau development in Brazil, and the 14 million boe of equity accounted additions in the same category represent drilling of new wells in previously unproven areas at the Bandurria Sur development in Argentina.

#### **Proved reserves movements 2020**

##### **Africa**

The net increase of 40 million boe in revision and improved recovery was mainly due to positive revisions on several fields with PSAs in Angola, Algeria, Nigeria and Libya.

##### **USA**

The net decrease of 118 million boe in revisions and improved recovery included a negative revision of 110 million boe related to our onshore developments. This was mainly due to reduced activity levels as well as shorter economic field lifetime caused by lower oil and gas prices. The lower prices have also affected some of our Gulf of Mexico fields negatively. The increase of 101 million boe in extension and discoveries was the result of new wells drilled in previously unproven areas in our onshore developments.

#### **Americas excl USA**

The net decrease of 55 million boe in revisions and improved recovery was mainly due to shorter economic lifetime for fields in Brazil caused by lower oil prices. The equity accounted increase of 6 million boe in purchases of reserves-in-place is in Argentina.

The following tables reflect the estimated oil, condensate, NGL and natural gas proved reserves at 31 December 2019 through 2022 and the changes therein.

Equinor 2022 Reserves Report 21

| Net proved oil and condensate reserves (in million boe) | Consolidated companies |  |  |  |  |  | Equity accounted |  |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Eurasia excluding |  |  | Americas excluding |  |  | Eurasia excluding |  |  |  |
|  | Norway | Norway | Africa | USA | g USA | Subtotal | Norway | g USA | Subtotal |  |
| At 31 December 2019 | 1,463 | 168 | 137 | 383 | 369 | 2,518 | 56 | - | 56 | 2,575 |
| Revisions and improved recovery | 32 | (12) | 33 | (55) | (57) | (58) | (5) | - | (5) | (63) |
| Extensions and discoveries | 27 | 2 | - | 7 | - | 36 | 0 | - | 0 | 36 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | 5 | 5 | 5 |
| Sales of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Production | (193) | (15) | (39) | (48) | (25) | (320) | (1) | (1) | (2) | (322) |
| At 31 December 2020 | 1,329 | 143 | 131 | 287 | 287 | 2,177 | 50 | 5 | 55 | 2,232 |
| Revisions and improved recovery | 153 | (15) | 18 | 23 | 61 | 240 | 17 | 0 | 17 | 257 |
| Extensions and discoveries | 14 | 0 | - | 1 | 210 | 225 | 2 | 12 | 14 | 239 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Sales of reserves-in-place | - | - | - | (57) | (6) | (63) | - | - | - | (63) |
| Production | (200) | (15) | (32) | (37) | (19) | (303) | (5) | (2) | (7) | (310) |
| At 31 December 2021 | 1,296 | 114 | 116 | 217 | 533 | 2,276 | 64 | 15 | 79 | 2,355 |
| Revisions and improved recovery | 133 | (15) | 40 | 32 | 3 | 192 | 0 | (0) | (0) | 192 |
| Extensions and discoveries | 67 | - | - | 1 | - | 68 | - | 7 | 7 | 75 |
| Purchases of reserves-in-place | 10 | 5 | - | - | - | 15 | - | - | - | 15 |
| Sales of reserves-in-place | (25) | (10) | - | - | - | (35) | (62) | - | (62) | (97) |
| Production | (188) | (11) | (32) | (33) | (23) | (287) | (1) | (3) | (4) | (291) |
| At 31 December 2022 | 1,292 | 83 | 123 | 217 | 513 | 2,228 | - | 19 | 19 | 2,248 |
| Proved developed oil and condensate reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 691 | 44 | 124 | 278 | 254 | 1,392 | 5 | - | 5 | 1,396 |
| At 31 December 2020 | 654 | 54 | 110 | 217 | 202 | 1,237 | 8 | 5 | 13 | 1,249 |
| At 31 December 2021 | 702 | 47 | 104 | 161 | 205 | 1,218 | 22 | 10 | 31 | 1,249 |
| At 31 December 2022 | 731 | 35 | 107 | 161 | 203 | 1,236 | - | 12 | 12 | 1,249 |
| Proved undeveloped oil and condensate reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 772 | 123 | 13 | 104 | 115 | 1,127 | 52 | - | 52 | 1,178 |
| At 31 December 2020 | 676 | 88 | 21 | 70 | 86 | 940 | 42 | 0 | 42 | 982 |
| At 31 December 2021 | 594 | 67 | 13 | 56 | 328 | 1,058 | 42 | 5 | 47 | 1,105 |
| At 31 December 2022 | 562 | 48 | 17 | 56 | 309 | 992 | - | 7 | 7 | 999 |

Equinor 2022 Reserves Report 22

| Net proved NGL reserves (in million boe) | Consolidated companies |  |  |  |  |  | Equity accounted |  |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Eurasia excluding Norway |  |  | America's excluding Africa |  |  | Eurasia excluding Norway |  |  |  |
|  | Norway | Norway | Africa | USA | g USA | Subtotal | Norway | g USA | Subtotal |  |
| At 31 December 2019 | 254 | - | 18 | 65 | - | 337 | - | - | - | 337 |
| Revisions and improved recovery | (7) | 0 | 2 | (8) | - | (13) | - | - | - | (13) |
| Extensions and discoveries | 0 | - | - | 7 | - | 8 | - | - | - | 8 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Sales of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Production | (40) | (0) | (3) | (11) | - | (54) | - | - | - | (54) |
| At 31 December 2020 | 208 | 0 | 17 | 53 | - | 278 | - | - | - | 278 |
| Revisions and improved recovery | 31 | 0 | (1) | 14 | - | 44 | - | - | - | 44 |
| Extensions and discoveries | 1 | - | - | 4 | - | 5 | - | - | - | 5 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Sales of reserves-in-place | - | - | - | (17) | - | (17) | - | - | - | (17) |
| Production | (38) | (0) | (3) | (9) | - | (49) | - | - | - | (49) |
| At 31 December 2021 | 202 | 0 | 14 | 45 | - | 261 | - | - | - | 261 |
| Revisions and improved recovery | 13 | 0 | (3) | 13 | - | 23 | - | - | - | 23 |
| Extensions and discoveries | 26 | - | - | 10 | - | 37 | - | - | - | 37 |
| Purchases of reserves-in-place | 4 | 3 | - | - | - | 7 | - | - | - | 7 |
| Sales of reserves-in-place | (3) | - | - | - | - | (3) | - | - | - | (3) |
| Production | (34) | (0) | (2) | (8) | - | (45) | - | - | - | (45) |
| At 31 December 2022 | 209 | 3 | 8 | 60 | - | 280 | - | - | - | 280 |
| Proved developed NGL reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 175 | - | 15 | 49 | - | 240 | - | - | - | 240 |
| At 31 December 2020 | 141 | 0 | 15 | 47 | - | 204 | - | - | - | 204 |
| At 31 December 2021 | 160 | 0 | 12 | 37 | - | 209 | - | - | - | 209 |
| At 31 December 2022 | 149 | 3 | 8 | 51 | - | 210 | - | - | - | 210 |
| Proved undeveloped NGL reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 78 | - | 3 | 16 | - | 97 | - | - | - | 97 |
| At 31 December 2020 | 66 | (0) | 2 | 6 | - | 74 | - | - | - | 74 |
| At 31 December 2021 | 42 | - | 2 | 8 | - | 52 | - | - | - | 52 |
| At 31 December 2022 | 60 | 0 | 0 | 9 | - | 70 | - | - | - | 70 |

Equinor 2022 Reserves Report 23

| Net proved natural gas reserves (in billion cf) | Consolidated companies |  |  |  |  |  | Equity accounted |  |  |  | Total |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Eurasia excluding |  |  | Americas excluding |  |  | Eurasia excluding |  |  | Subtotal |  |  |
|  | Norway | Norway | Africa | USA | g USA | Subtotal | Norway | Norway | g USA |  |  | Subtotal |
| At 31 December 2019 | 14,330 | 111 | 241 | 2,371 | 8 | 17,060 | - | 295 | - | 295 | 17,355 |  |
| Revisions and improved recovery | (195) | (36) | 29 | (311) | 8 | (505) | - | (28) | - | (28) | (534) |  |
| Extensions and discoveries | 4 | - | - | 485 | - | 488 | - | - | - | - | 488 |  |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | 4 | 4 | 4 |  |
| Sales of reserves-in-place | - | - | - | - | - | - | - | - | - | - | - |  |
| Production | (1,425) | (26) | (42) | (373) | (9) | (1,874) | - | (3) | (1) | (3) | (1,878) |  |
| At 31 December 2020 | 12,714 | 49 | 227 | 2,171 | 7 | 15,169 | - | 264 | 3 | 267 | 15,436 |  |
| Revisions and improved recovery | 1,576 | 46 | (23) | 231 | 7 | 1,837 | - | (183) | 1 | (182) | 1,656 |  |
| Extensions and discoveries | 23 | - | - | 313 | - | 337 | - | - | 11 | 11 | 348 |  |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | - | - | - |  |
| Sales of reserves-in-place | - | - | - | (87) | - | (87) | - | - | - | - | (87) |  |
| Production | (1,500) | (20) | (41) | (396) | (8) | (1,966) | - | (3) | (1) | (5) | (1,971) |  |
| At 31 December 2021 | 12,813 | 75 | 163 | 2,233 | 6 | 15,289 | - | 78 | 14 | 92 | 15,381 |  |
| Revisions and improved recovery | 720 | 3 | (44) | 23 | 11 | 713 | - | 0 | 6 | 6 | 720 |  |
| Extensions and discoveries | 494 | - | - | 434 | - | 928 | - | - | 9 | 9 | 937 |  |
| Purchases of reserves-in-place | 41 | 40 | - | - | - | 81 | - | - | - | - | 81 |  |
| Sales of reserves-in-place | (79) | - | - | - | - | (79) | - | (78) | - | (78) | (157) |  |
| Production | (1,608) | (23) | (28) | (346) | (7) | (2,012) | - | (0) | (2) | (3) | (2,015) |  |
| At 31 December 2022 | 12,380 | 94 | 91 | 2,344 | 10 | 14,920 | - | - | 26 | 26 | 14,946 |  |
| Proved developed natural gas reserves |  |  |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 9,417 | 111 | 217 | 1,645 | 8 | 11,398 | - | 67 | - | 67 | 11,465 |  |
| At 31 December 2020 | 7,863 | 49 | 199 | 1,681 | 7 | 9,799 | - | 123 | 3 | 126 | 9,926 |  |
| At 31 December 2021 | 11,145 | 75 | 145 | 1,845 | 5 | 13,217 | - | 19 | 9 | 28 | 13,244 |  |
| At 31 December 2022 | 10,294 | 89 | 91 | 1,921 | 8 | 12,403 | - | - | 17 | 17 | 12,420 |  |
| Proved undeveloped natural gas reserves |  |  |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 4,912 | 0 | 23 | 726 | - | 5,662 | - | 228 | - | 228 | 5,889 |  |
| At 31 December 2020 | 4,851 | 0 | 28 | 490 | - | 5,369 | - | 141 | 0 | 141 | 5,510 |  |
| At 31 December 2021 | 1,667 | - | 17 | 387 | 0 | 2,072 | - | 59 | 5 | 64 | 2,136 |  |
| At 31 December 2022 | 2,087 | 5 | - | 423 | 2 | 2,517 | - | - | 9 | 9 | 2,526 |  |

Equinor 2022 Reserves Report 24

| Net proved reserves (in million boe) | Consolidated companies |  |  |  |  |  | Equity accounted |  |  | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Eurasia excluding Norway |  |  | America's excluding USA |  |  | Eurasia excluding Norway |  |  |  |
|  | Norway | Norway | Africa | USA | g USA | Subtotal | Norway | g USA | Subtotal |  |
| At 31 December 2019 | 4,270 | 187 | 198 | 870 | 370 | 5,895 | 109 | - | 109 | 6,004 |
| Revisions and improved recovery | (9) | (18) | 40 | (118) | (55) | (161) | (10) | - | (10) | (171) |
| Extensions and discoveries | 28 | 2 | - | 101 | - | 131 | 0 | - | 0 | 131 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | 6 | 6 | 6 |
| Sales of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Production | (486) | (20) | (49) | (126) | (26) | (708) | (2) | (1) | (3) | (710) |
| At 31 December 2020 | 3,802 | 151 | 189 | 727 | 289 | 5,158 | 97 | 5 | 102 | 5,260 |
| Revisions and improved recovery | 465 | (6) | 13 | 78 | 62 | 611 | (16) | 1 | (15) | 596 |
| Extensions and discoveries | 19 | 0 | - | 61 | 210 | 290 | 2 | 14 | 16 | 306 |
| Purchases of reserves-in-place | - | - | - | - | - | - | - | - | - | - |
| Sales of reserves-in-place | - | - | - | (89) | (6) | (96) | - | - | - | (96) |
| Production | (505) | (18) | (42) | (117) | (20) | (703) | (6) | (2) | (8) | (710) |
| At 31 December 2021 | 3,781 | 127 | 159 | 660 | 534 | 5,261 | 77 | 18 | 95 | 5,356 |
| Revisions and improved recovery | 275 | (14) | 29 | 49 | 4 | 343 | 0 | 1 | 1 | 344 |
| Extensions and discoveries | 181 | - | - | 89 | - | 269 | - | 9 | 9 | 278 |
| Purchases of reserves-in-place | 21 | 15 | - | - | - | 36 | - | - | - | 36 |
| Sales of reserves-in-place | (42) | (10) | - | - | - | (52) | (76) | - | (76) | (128) |
| Production | (508) | (16) | (40) | (103) | (24) | (691) | (1) | (3) | (5) | (695) |
| At 31 December 2022 | 3,708 | 103 | 148 | 694 | 514 | 5,167 | - | 24 | 24 | 5,191 |
| Proved developed reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 2,544 | 64 | 178 | 621 | 255 | 3,663 | 17 | - | 17 | 3,679 |
| At 31 December 2020 | 2,196 | 63 | 161 | 564 | 203 | 3,187 | 30 | 5 | 35 | 3,222 |
| At 31 December 2021 | 2,847 | 60 | 141 | 527 | 206 | 3,782 | 25 | 12 | 36 | 3,818 |
| At 31 December 2022 | 2,714 | 53 | 131 | 554 | 205 | 3,656 | - | 16 | 16 | 3,672 |
| Proved undeveloped reserves |  |  |  |  |  |  |  |  |  |  |
| At 31 December 2019 | 1,725 | 123 | 20 | 250 | 115 | 2,233 | 92 | - | 92 | 2,325 |
| At 31 December 2020 | 1,606 | 88 | 28 | 163 | 86 | 1,971 | 67 | 0 | 67 | 2,038 |
| At 31 December 2021 | 934 | 67 | 18 | 133 | 328 | 1,479 | 53 | 6 | 59 | 1,538 |
| At 31 December 2022 | 994 | 50 | 17 | 140 | 310 | 1,510 | - | 9 | 9 | 1,519 |

The conversion rates used in this table are 1 standard cubic meter = 35.3 standard cubic feet, 1 standard cubic meter oil equivalent = 6.29 barrels of oil equivalent (boe) and 1,000 standard cubic meter gas = 1 standard cubic meter oil equivalent.

**Standardised measure of discounted future net cash flows relating to proved oil and gas reserves**

Equinor 2022 Reserves Report 25

The table below shows the standardised measure of future net cash flows relating to proved reserves. The analysis is computed in accordance with Topic 932, by applying average market prices as defined by the SEC, year end costs, year end statutory tax rates and a discount factor of 10% to year end quantities of net proved reserves. The standardised measure of discounted future net cash flows is a forward-looking statement.

Future price changes are limited to those provided by existing contractual arrangements at the end of each reporting year. Future development and production costs are those estimated future expenditures necessary to develop and produce year end estimated proved reserves based on year end cost indices, assuming continuation of year end economic conditions. Pre-tax future net cash flow is net of decommissioning and removal costs. Estimated future income taxes are calculated by applying the appropriate year end statutory tax rates. These rates reflect allowable deductions and tax credits and are applied to estimated future pre-tax net cash flows, less the tax basis of related assets. Discounted future net cash flows are calculated using a discount rate of 10% per year. Discounting requires a year-by-year estimate of when future expenditures will be incurred and when reserves will be produced. The standardised measure of discounted future net cash flows prescribed under Topic 932 requires assumptions as to the timing and amount of future development and production costs and income from the production of proved reserves. The information does not represent management's estimate or Equinor's expected future cash flows or the value of its proved reserves and therefore should not be relied upon as an indication of Equinor's future cash flow or value of its proved reserves.

Equinor 2022 Reserves Report 26

| At 31 December 2022 (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated companies |  |  |  |  |  |  |
| Future net cash inflows | 620,024 | 11,225 | 13,955 | 35,382 | 50,744 | 731,330 |
| Future development costs | (15,595) | (1,795) | (1,012) | (1,388) | (3,830) | (23,620) |
| Future production costs | (60,837) | (4,356) | (3,706) | (8,736) | (19,807) | (97,442) |
| Future income tax expenses | (449,351) | (1,725) | (3,864) | (5,402) | (5,122) | (465,465) |
| Future net cash flows | 94,241 | 3,348 | 5,374 | 19,855 | 21,984 | 144,803 |
| 10% annual discount for estimated timing of cash flows | (36,714) | (954) | (1,275) | (7,124) | (10,633) | (56,701) |
| Standardised measure of discounted future net cash flows | 57,527 | 2,394 | 4,099 | 12,731 | 11,351 | 88,102 |
| Equity accounted investments |  |  |  |  |  |  |
| Standardised measure of discounted future net cash flows | - | - | - | - | 316 | 316 |
| Total standardised measure of discounted future net cash flows including equity accounted investments |  |  |  |  |  |  |
|  | 57,527 | 2,394 | 4,099 | 12,731 | 11,667 | 88,418 |

| At 31 December 2021 (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated companies |  |  |  |  |  |  |
| Future net cash inflows | 287,382 | 8,705 | 9,619 | 21,486 | 35,236 | 362,429 |
| Future development costs | (10,999) | (1,947) | (685) | (1,112) | (4,186) | (18,928) |
| Future production costs | (53,251) | (4,196) | (3,380) | (7,269) | (16,782) | (84,878) |
| Future income tax expenses | (178,370) | (352) | (2,138) | (2,686) | (2,979) | (186,525) |
| Future net cash flows | 44,763 | 2,209 | 3,416 | 10,420 | 11,289 | 72,097 |
| 10% annual discount for estimated timing of cash flows | (18,051) | (652) | (707) | (3,406) | (5,842) | (28,658) |
| Standardised measure of discounted future net cash flows | 26,711 | 1,557 | 2,709 | 7,014 | 5,447 | 43,439 |
| Equity accounted investments |  |  |  |  |  |  |
| Standardised measure of discounted future net cash flows | - | 224 | - | - | 126 | 350 |
| Total standardised measure of discounted future net cash flows including equity accounted investments |  |  |  |  |  |  |
|  | 26,711 | 1,782 | 2,709 | 7,014 | 5,573 | 43,789 |

| At 31 December 2020 (in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated companies |  |  |  |  |  |  |
| Future net cash inflows | 107,618 | 6,610 | 7,234 | 14,892 | 10,685 | 147,039 |
| Future development costs | (11,209) | (2,489) | (682) | (1,351) | (1,534) | (17,265) |
| Future production costs | (42,410) | (3,622) | (3,170) | (8,020) | (7,568) | (64,790) |
| Future income tax expenses | (35,236) | (209) | (1,262) | (965) | (336) | (38,008) |
| Future net cash flows | 18,763 | 290 | 2,119 | 4,556 | 1,248 | 26,976 |
| 10% annual discount for estimated timing of cash flows | (6,937) | (80) | (505) | (1,269) | 24 | (8,768) |
| Standardised measure of discounted future net cash flows | 11,826 | 210 | 1,614 | 3,286 | 1,272 | 18,209 |
| Equity accounted investments |  |  |  |  |  |  |
| Standardised measure of discounted future net cash flows | - | (32) | - | - | 22 | (10) |

Equinor 2022 Reserves Report 27

**Total standardised measure of discounted future net cash flows including equity accounted investments**

11,826

178

1,614

3,286

1,294

**18,199**

Equinor 2022 Reserves Report 28

# **Changes in the standardised measure of discounted future net cash flows from proved reserves**

| (in USD million) | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Consolidated companies |  |  |  |
| Standardised measure at 1 January | 43,439 | 18,209 | 35,173 |
| Net change in sales and transfer prices and in production (lifting) costs related to future production | 231,555 | 126,974 | (52,527) |
| Changes in estimated future development costs | (4,739) | (5,915) | (1,547) |
| Sales and transfers of oil and gas produced during the period, net of production cost | (91,580) | (43,998) | (15,180) |
| Net change due to extensions, discoveries, and improved recovery | 15,928 | 7,734 | 265 |
| Net change due to purchases and sales of minerals in place | 386 | (2,280) | - |
| Net change due to revisions in quantity estimates | 34,325 | 17,080 | 3,263 |
| Previously estimated development costs incurred during the period | 6,691 | 6,619 | 6,558 |
| Accretion of discount | 15,063 | 4,078 | 9,087 |
| Net change in income taxes | (162,965) | (85,062) | 33,117 |
| Total change in the standardised measure during the year | 44,663 | 25,230 | (16,965) |
| Standardised measure at 31 December | 88,102 | 43,439 | 18,209 |
| Equity accounted investments |  |  |  |
| Standardised measure at 31 December | 316 | 350 | (10) |
| Standardised measure at 31 December including equity accounted investments | 88,418 | 43,789 | 18,199 |

In this table each line item presents the sources of changes in the standardised measure of value on a discounted basis, with the accretion of discount line item reflecting the increase in the net discounted value of the proved oil and gas reserves due to the fact that the future cash flows are now one year closer in time.

The standardised measure at the beginning of the year represents the discounted net present value after deductions of both future development costs, production costs and taxes. The line item Net change in sales and transfer prices and in production (lifting) costs related to future production is, on the other hand, related to the future net cash flows at 31 December 2021. The proved reserves at 31 December 2021 were multiplied by the actual change in price, and change in unit of production costs, to arrive at the net effect of changes in price and production costs. Development costs and taxes are reflected in the line items Change in estimated future development costs and Net change in income taxes and are not included in the Net change in sales and transfer prices and in production (lifting) costs related to future production.

Equinor 2022 Reserves Report 29

# Terms and abbreviations

Organisational abbreviations

- ACG - Azeri-Chirag-Gunashli
- CAPEX - Capital expenditure
- IOR - Improved oil recovery
- LPG - Liquefied petroleum gas
- NCS - Norwegian continental shelf
- NGL - Natural gas liquids
- OECD - Organisation of Economic Co-Operation and Development
- PDO - Plan for development and operation
- PSA - Production sharing agreement
- SDFI - Norwegian State's Direct Financial Interest
- SEC - US Securities and Exchange Commission
- UKCS - UK continental shelf
- USA - United States of America
- USD - United States dollar

Measurement abbreviations etc.

- one billion - one thousand million
- bbl - barrel
- mmbbl - million barrels
- boe - barrels of oil equivalent
- mmboe - million barrels of oil equivalent
- cf - cubic feet
- mmmcf - billion cubic feet
- MMBtu - million British thermal units
- bcm - billion cubic metres of natural gas

Equivalent measurements are based upon

- 1 barrel equals 0.134 tonnes of oil (33 degrees API)
- 1 barrel equals 0.159 standard cubic metres
- 1 barrel of oil equivalent equals 1 barrel of crude oil
- 1 barrel of oil equivalent equals 159 standard cubic metres of natural gas
- 1 barrel of oil equivalent equals 5,612 cubic feet of natural gas
- 1 barrel of oil equivalent equals 0.0837 tonnes of NGLs
- 1 billion standard cubic metres of natural gas equals 1 million standard cubic metres of oil equivalent
- 1 cubic metre equals 35.3 cubic feet
- 1 cubic metre of natural gas equals 1 standard cubic metre of natural gas
- 1,000 standard cubic meter gas equals 1 standard cubic meter oil equivalent
- 1,000 standard cubic metres of natural gas equals 6.29 boe
- 1 standard cubic foot equals 0.0283 standard cubic metres
- 1 standard cubic foot equals 1000 British thermal units (btu)
- 1 tonne of NGLs equals 1.9 standard cubic metres of oil equivalent

Miscellaneous terms

- Appraisal well: A well drilled to establish the extent and the size of a discovery.
- BOE (barrels of oil equivalent): A measure to quantify crude oil, natural gas liquids and natural gas amounts using the same basis. Natural gas volumes are converted to barrels on the basis of energy content.
- Condensates: The heavier natural gas components, such as pentane, hexane, isoprene and so forth, which are liquid under atmospheric pressure - also called natural gasoline or naphtha.
- Development: The drilling, construction, and related activities following discovery that are necessary to begin production of crude oil and natural gas fields.
- Equity and entitlement volumes of oil and gas: Equity volumes represent volumes produced under a production sharing agreement (PSA) that correspond to Equinor's percentage ownership in a particular field. Entitlement volumes, on the other hand, represent Equinor's share of the volumes distributed to the partners in the field, which are subject to deductions for, among other things, royalties and the host government's share of profit oil. Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return on investment to the partners and/or production from the licence. The distinction between equity and entitlement is relevant to most PSA regimes, whereas it is not applicable in most concessionary regimes such as those in Norway, the United Kingdom, Canada and Brazil. The overview of equity production provides additional information for readers, as certain costs described in the profit and loss analysis were directly associated with equity volumes produced during the reported years.
- IOR (improved oil recovery): Actual measures resulting in an increased oil recovery factor from a reservoir as compared with the expected value at a certain reference point in time. IOR comprises both of conventional and emerging technologies.
- Liquids: Refers to oil, condensates and NGL.

Equinor 2022 Reserves Report 30

- LPG (liquefied petroleum gas): Consists primarily of propane and butane, which turn liquid under a pressure of six to seven atmospheres. LPG is shipped in special vessels.
- Natural gas: Petroleum that consists principally of light hydrocarbons. It can be divided into 1) lean gas, primarily methane but often containing some ethane and smaller quantities of heavier hydrocarbons (also called sales gas) and 2) wet gas, primarily ethane, propane and butane as well as smaller amounts of heavier hydrocarbons; partially liquid under atmospheric pressure.
- NGL (natural gas liquids): Light hydrocarbons mainly consisting of ethane, propane and butane which are liquid under pressure at normal temperature.
- Petroleum: A collective term for hydrocarbons, whether solid, liquid or gaseous. Hydrocarbons are compounds formed from the elements hydrogen (H) and carbon (C). The proportion of different compounds, from methane and ethane up to the heaviest components, in a petroleum find varies from discovery to discovery. If a reservoir primarily contains light hydrocarbons, it is described as a gas field. If heavier hydrocarbons predominate, it is described as an oil field. An oil field may feature free gas above the oil and contain a quantity of light hydrocarbons, also called associated gas.
- Proved reserves: Reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions and using existing technology. They are the only type the US Securities and Exchange Commission allows oil companies to report.

Equinor 2022 Reserves Report

31

# Equinor remuneration report for 2022

*Corporate executive committee, board of directors and corporate assembly*

## Contents

| 1 | Preamble | 2 |
| --- | --- | --- |
| 1.1 | Introduction | 2 |
| 1.2 | Letter from the chair of the board of directors | 2 |
| 2 | Key developments in remuneration - 2022 | 5 |
| 2.1 | Overall company performance in 2022 | 5 |
|  | Safety, security and sustainability | 5 |
|  | People and organisation | 5 |
|  | Operations | 5 |
|  | Market | 5 |
|  | Finance | 6 |
| 2.2 | Performance-based modifiers used in calculating variable pay | 6 |
|  | Threshold for payments under variable pay plans | 7 |
|  | Company performance modifier | 7 |
| 2.3 | The board of directors' assessment of the chief executive officer's performance | 7 |
| 2.4 | Summary of targets and achievement of corporate KPIs and goals forming the basis for annual variable pay | 9 |
|  | From performance to AVP award | 9 |
| 2.5 | Key developments in corporate executive remuneration in 2022 | 10 |
|  | Execution of policy on executive remuneration in 2022 | 10 |
|  | Remuneration policy changes | 10 |
|  | General notes on remuneration elements | 11 |
|  | Notes on roles and remuneration of CEC members in 2022 | 11 |
| 2.6 | Derogations and deviations from remuneration policy | 13 |
| 2.7 | Right to reclaim ('malus and clawback') | 13 |
| 2.8 | Shareholder feedback on the remuneration report for 2021 | 13 |
| 2.9 | Activities of the compensation and executive development committee in 2022 | 13 |
| 3 | Remuneration and share ownership of the board of directors and corporate assembly | 14 |
| 3.1 | Remuneration of the board of directors | 14 |
| 3.2 | Total number and value of shares held by the members of the board of directors | 15 |
| 3.3 | Remuneration of the corporate assembly | 15 |
| 3.4 | Shares held by the members of the corporate assembly | 16 |

1

4 Remuneration and share ownership of the CEC...16
4.1 Remuneration of the CEC...16
4.2 Shares awarded or due to the CEC for the reported financial year...20
4.3 Total number and value of shares held by the CEC...26
4.4 Performance and AVP awarded to the CEC members in the reported financial year27
4.5 Key performance indicators and behaviour goals forming the basis for AVP for the CEC in 2023 37
5 Remuneration and company performance for 2017-2022...38
5.1 Comparative tables over the remuneration and company performance compared to the last five reported financial years...38
6 Statement by the board of directors on the remuneration report...43
7 Independent auditor's statement on the remuneration report...45
8 Appendix: Executive remuneration policy 2021...46
8.1 Remuneration to the board of directors...46
8.2 Remuneration to the corporate assembly...46
8.3 Remuneration to the CEC...46

# 1 Preamble

## 1.1 Introduction

The remuneration report contains information on:

- the remuneration for Equinor's corporate executive committee ("CEC") consisting of the chief executive officer ("CEO") and the executive vice presidents ("EVPs")
- the remuneration for Equinor's corporate assembly and board of directors ("the board")

The remuneration report is proposed by the board of directors, where an advisory vote shall be held by the 2023 annual general meeting ("AGM"), pursuant to the Norwegian Public Limited Liability Companies Act, section 6-16b and regulation 2020-12-11-2730 and the Norwegian Accounting Act section 7-31b.

The remuneration report should be read in conjunction with the remuneration policy, which is included in the Appendix.

## 1.2 Letter from the chair of the board of directors

On behalf of the board of directors, I present to you Equinor's remuneration report for 2022. Our objective is to provide a comprehensive and transparent overview of the remuneration of the board of directors, the corporate assembly and the corporate executive committee in 2022.

2

### *Equinor in 2022*

The role of Equinor as a reliable energy provider is more important than ever. The Russian war in Ukraine has changed the energy markets, reduced energy availability and increased prices. Equinor continued to provide stable flow and record-level production in 2022, with an increased focus on safety in a challenging global environment. High production combined with high price levels resulted in very strong financial results.

Developing new solutions for the energy transition remained a high priority in 2022. Equinor continued strengthening workforce capacity and capabilities both on the Norwegian continental shelf and in locations around the world, ramping up recruitment, strengthening learning activities and focusing on diversity, inclusion and wellbeing.

More details on Equinor's performance results within the different perspectives of our performance assessment are presented further in this report and in Equinor's annual report.

### *Work on improving the information in the remuneration policy and remuneration report*

The Norwegian Ministry of Trade, Industry and Fisheries ('MTIF') that represents Equinor's majority shareholder issued a statement to Equinor which was presented at the 2022 annual general meeting, as follows:

> *The Ministry of Trade, Industry and Fisheries (MTIF) refers to the State's Guidelines for the Remuneration of Senior Executives in Companies with State Ownership stipulated on 20 April 2021. The MTIF wants to emphasise the state's expectations in the executive remuneration area, including paying due regard to the principle of moderation. The state finds it important that the remuneration of senior executives is competitive, enabling the company to succeed in recruiting and retaining good executives. At the same time the remuneration shall not be market-leading compared with similar companies, and shall be set with due regard to the principle of moderation. This, among other things, means that the remuneration shall not be higher than necessary to attract and retain the desired expertise. It is neither in the interest of the company, nor the owners, if the company pays more remuneration, including bonus, than necessary. When evaluating moderation, the ratio between the remuneration of executive personnel and other employees in the company may be relevant. The state finds it important that this ratio does not increase without a good justification. Increased difference in the remuneration between executive personnel and other employees in the company may be ill-judged, among other things because it may be harmful to the company's reputation by contributing to unreasonable disparities in the company and society at large. The state finds it important that the board pays due regard to the principle of moderation in determining the total remuneration. The state, as an owner, emphasises transparency associated with executive remuneration. Transparency as regards the formulation, level and development of executive remuneration, including that that the programmes are unambiguous, is important in order to enable owners and other stakeholders to evaluate the executive remuneration. The state, as an owner, will continue the dialogue with Equinor about how the board of directors' executive remuneration policy can be better aligned with the state's expectations in the executive remuneration area, and expects the board of directors to present an updated policy for the 2023 annual general meeting.*

Over the course of 2022, Equinor worked on revising the remuneration policy and remuneration report to address the expectations in the above note, with a particular focus on clarifying the application of the pay-for-performance approach, paying due regard to the principle of moderation and ensuring transparency in the formulation and level of executive remuneration. The review also included adjustments to the structure, wording and presentation of the information contained in the remuneration policy and remuneration report, aiming for a more logical, modern and user-friendly style for the reader. As of 2022 the remuneration report is presented as a stand-alone document, separate to Equinor's annual report.

The new remuneration policy is presented for the 2023 AGM for approval and will be effective as of the reporting year 2024. The 2022 report is therefore based on the remuneration policy approved in the 2021 AGM.

3

### *Equinor executive performance and remuneration in 2022*

The general salary increases for the members of the CEC in 2022 were in line with the general salary increase frame in the relevant Equinor entity.

Equinor's strong financial and operational performance in 2022, as well as a strong position compared to peers was reflected in the annual variable pay awards.

An important focus area in 2022 was improving the clarity and consistency in documenting the targets for measuring the performance of the CEC members. Individual performance contracts are in place as of 2022 outlining the respective KPIs and goals used as a basis for assessing results and translating those into annual variable pay awards.

On 12 December, the Norwegian government issued amendments to "The State's Guidelines for the Remuneration of Senior Executives in Companies with State Ownership (Stipulated by the Ministry of Trade, Industry and Fisheries on 30 April 2021)" ("state guidelines"). Among other things it includes an expectation for state-owned companies in Norway such as Equinor to reduce the maximum rate of bonuses payable to leading personnel from 50% to 25%. Equinor has implemented these changes in the revised policy referred to above.

### *Changes in the CEC in 2022*

- The CEC was expanded on 1 March to formally include the position of EVP Communication held by Jannik Lindbæk (COM).
- Aksel Stenerud joined the CEC on 1 March taking over as EVP People & Organisation (PO) from Ana Fonseca Nordang who took on another role in the company.
- Geir Tungesvik joined the CEC as EVP Projects, Drilling & Procurement (PDP) on 1 May, taking over from Arne Sigve Nylund who retired from the company on 31 July.
- Hege Skryseth joined Equinor and the CEC as EVP Technology, Digital & Innovation (TDI) on 1 September. She succeeded Elisabeth Birkeland Kvalheim who acted in this role after Carri Lockhart left the CEC on 21 March and resigned from the company on 30 June.
- Torgrim Reitan joined the CEC on 6 October as EVP and chief financial officer (CFO). He succeeded Ulrica Fearn who stepped down from the CEC on 5 October and resigned from the company on 31 December.
- Alasdair Cook resigned from the CEC on 31 December. He is succeeded by Philippe François Mathieu.

The board believes that Equinor is in a strong position to drive the execution of our strategy and take on new challenges with this strong and renewed corporate executive team.

Jon Erik Reinhardsen
Chair of the board of directors

4

## 2 Key developments in remuneration - 2022

### 2.1 Overall company performance in 2022

The below summarises Equinor's results for 2022 within the five perspectives of our performance assessment, as described in the annual report.

#### *Safety, security and sustainability*

Strategic objective: An industry leader in safety, security and sustainability

The serious incident frequency (SIF) indicator has been stable in 2022 compared to the 2021 result. The development on the total recordable injury frequency (TRIF) ratio indicator was negative compared to 2021. The CO2 intensity came in well below the target, impacted by high gas production and high regularity from low intensity fields. The scope 1 & 2 greenhouse gas (GHG) net emission reduction forecast is according to plan towards the 2030 target, but it is highly affected by progress of the abatement projects.

#### *People and organisation*

Strategic objective: A values-based and learning organisation enabled by the right capabilities

The result on the 2022 competence indicator is positive compared to 2021. There is still a gap to close towards reaching the target within inclusion. To address the capacity gap around 2,600 new employees have been recruited during 2022. Close follow-up of development in manning level is expected going forward. The global people survey (GPS) shows increasing scores in important areas from 2021 to 2022 such as commitment, motivation and health, safety and environment (HSE). There is however remaining work and adjustments needed to achieve the effects from the new operating model.

#### *Operations*

Strategic objective: A top performing energy company driving the industry transformation

The total equity production of gas and liquids decreased by around 2% from 2,079 boe/d in 2021 to 2,039 boe/d in 2022. The total gas production increased by around 2.3%, whilst liquid production decreased by around 6%. Gas production from NCS to Europe increased by 8% from 2021 to 2022. The total 2022 production is approximately on par with 2021.

The total power generation from renewables has increased by around 5.6% from 2021 to 2022 (from 1,562 GWh to 1,649 GWh).

#### *Market*

5

Strategic objective: a flexible and resilient energy portfolio

We are progressing on our energy transition plan and remain committed to the ambition of net zero. Following the Capital Market Update (CMU) responses, the performance status is well received by the investor market. Equinor's total portfolio value has grown year on year, but slightly less than target. Our oil and gas portfolio continues to be competitive, with break evens for projects coming on stream the next ten years around 35 USD/boe. We see good progress within low carbon solution (LCS), particularly with RWE, Engie partnerships and Smeaheia licence award.

Within renewables Equinor has an attractive development portfolio, but the targeted accessed offshore wind capacity in 2022 was not achieved.

### *Finance*

Strategic objective: A cash generating, profitable and competitive company delivering value to our stakeholders

Equinor ended on top in the peer group$^{1}$ ranking on return on average capital employed (RoACE) and ended at number 6 out of 12 on the total shareholder return (TSR) ranking. The financial robustness is still strong and 2022 has shown strong earnings and cash flow from operations.

Cost level is under pressure due to significant inflation in 2022, giving reduced robustness for non-sanctioned projects. Existing contracts for our sanctioned project portfolio are less affected. Organic capex ended below guided level in 2022.

The Exploration & Production Norway (EPN) portfolio has a positive trend in break-even compared to the June assessment, whilst Exploration & Production International (EPI) experience an increase in break-even numbers.

## 2.2 Performance-based modifiers used in calculating variable pay

As described in the remuneration policy, a threshold and a company performance modifier ('CPM') are applied as a means of strengthening the link between the company's overall financial results and the individual's variable pay. The results of these modifiers for 2022 are presented below.

$^{1}$The composition of Equinor's defined peer group can be found on equinor.com - link.

6

### Threshold for payments under variable pay plans

With reference to the definitions and parameters described in the remuneration policy, the company performance for 2022 is assessed as being in the green zone.

![img-0.jpeg](img-0.jpeg)

### Company performance modifier

With reference to the definitions and parameters described in the remuneration policy, the CPM for 2022 is set at 133%.

![img-1.jpeg](img-1.jpeg)

- Relative RoACE result: number 1 in the peer group of 12 companies, including Equinor.
- Relative TSR result: number 6 (second quartile) in the same peer group.

## 2.3 The board of directors' assessment of the chief executive officer's performance

7

Overall, 2022 was an extraordinary year also for Equinor. Impacted by the geopolitical turmoil, energy crisis, increased focus on energy security and immediate need for reliable and sanction compliant supplies, Equinor reinforced its European energy position by responding quickly to the situation. Throughout the year, the company's position as energy supplier to Europe was further strengthened.

Equinor's response has demonstrated the ability to accelerate the energy transition in collaboration with Norwegian government and EU, as well as through established and new industry partnerships. Strong deliveries of gas supply through Europe in an extraordinarily challenging context demonstrate Equinor's high-performance operational capacity and capabilities to capture high value in a volatile market.

Equinor's strong operating results enabled conversion of the high commodity prices to record results delivering world leading pre-tax profits. The record high financial result led to cash flow on par with 2021 after unprecedented tax payments and increased capital distribution. Equinor's financial position and balance sheet has been further strengthened. Both the performance and the consistency in strategy have been well received by the investor market.

The continuous drive to focus and optimise Equinor's international oil & gas business with implied risk reduction continues according to plan, at the same time as there is good progress both within renewables and low carbon solutions.

In its assessment of the chief executive officer's performance for 2022, the board of directors has highlighted that the deliveries in key areas have been above, at or below targets.

The business delivery dimension for the CEO's variable remuneration (performance year 2022) was based on an assessment against the following KPIs: SIF, Upstream CO2 intensity, Capex share REN/LCS, relative TSR, relative ROACE. Ref. also Table 4 for details.

The 12 months SIF ratio result of 0.4 is according to target, and a historical low. Over the last 12 months we have seen a decrease in incidents compared to 2021 numbers although the activity level in 2022 was higher than the 2021 level (~5% more hours).

The CO2 intensity ended at 6.9 kg CO2/boe, well below target of 8 kg CO2/boe and slightly lower than 2021. Emission reduction initiatives as well as high gas production and high regularity from low intensity fields are main contributors. Lower than normal production from Peregrino and Snøhvit contributed to the reduced CO2 intensity.

The Capex share to Renewable/Low Carbon Solutions result ended at 14 % compared to a target of >15%. This is an increase from 11% last year. Although a modest result measured purely against target, the board appreciates the capital discipline demonstrated by avoiding bidding on excessively priced renewables license rounds, irrespective of KPI target.

Equinor's return on RoACE was best in the peer group. Relative position in the peer group for TSR was number 6, which is above average (target level).

Implementation of the new operating model (One Equinor 2021) is progressing, but there is still identified improvement potential and related actions to be accomplished.

Employee surveys show progress in many key areas from 2021 to 2022. Areas like safety, conduct, trust in leadership and company strategic ambitions score high across the business. The need to maintain focus on continuous improvement in some areas has also been identified. The board's impression of progress and status on overall employee satisfaction is positive.

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## 2.4 Summary of targets and achievement of corporate KPIs and goals forming the basis for annual variable pay

The board of directors decides on a comprehensive set of KPIs and behaviour goals to facilitate direction and areas of focus prior to each calendar year. The KPIs and behaviour goals to be used by the board of directors to assess the CEO's performance in relation to the AVP for the upcoming calendar year are selected from this set and included in an annual performance contract with the CEO. The selected KPIs and goals are those assessed to be most critical in achieving the core strategic objectives for the company in the coming year.

The corporate delivery KPIs and behaviour goals selected for the CEO are similarly set forth in a performance contract between the CEO and EVPs, to the extent these are deemed relevant. For the EVPs of business areas, a selection of additional business area KPIs supporting the company's strategic ambitions from the specific business area is included in their performance contracts.

### From performance to AVP award

As described in the remuneration policy, performance forms the basis for the decision on annual variable pay ('AVP') percentages for the members of the CEC.

Common corporate delivery KPIs, business area specific delivery KPIs and behaviour goals are measured separately and assessed holistically, as described below.

These together form the basis for payment of annual variable pay, where delivery KPIs and behaviour goals each have a weight of 50%. For EVPs in business areas delivery KPIs are weighted to comprise 50% corporate KPIs and 50% business area specific KPIs.

The individual KPIs and goals within a category are equally weighted initially and can be adjusted to reflect prevailing business context and strategic priorities.

| Group of CEC member | Weighting of KPIs in 'what' dimension - 50% |  | Weighting of goals in 'how' dimension - 50% |
| --- | --- | --- | --- |
|  | Corporate delivery KPIs | Business area delivery KPIs | Corporate behaviour goals |
| CEO and staffs EVPs | 50% | - | 50% |
| EVPs with BA responsibility | 25% | 25% | 50% |

Delivery in 2022 against the selected corporate delivery goals ('what' dimension) which are applied to the CEO, as well as the individual EVPs, is summarized as follows:

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| KPI | Target | Performance |
| --- | --- | --- |
| • Serious Incident Frequency | 0.4 or better | 0.4 |
| • CO2 intensity for the upstream portfolio | 8 kg CO2 per boe or better | 6.9 |
| • Relative Total Shareholder Return | Ranked better than peer average | 6 of 12 |
| • Relative RoACE | Ranked in first quartile among peers | 1 of 12 |
| • Gross capex share of renewable and low carbon solutions | > 15% | 14% |

In terms of the “how” dimension, common behaviour goals are defined for the CEO and the EVPs with reference to Equinor’s core values and leadership principles, as follows:

- Demonstrate accountability, visibility, and engagement for safety and compliance
- Build trust in the CEC and Equinor
- Transform own organisation to deliver on our common purpose and become a leading company in the energy transition
- Develop strong succession pipeline

Performance against these behaviour goals is measured on an individual basis for the CEC members.

The KPI targets and results of the business deliveries (“what”), and the behaviour goals and results (“how”) and how these translate into the AVP award are presented for the individual CEC members in the Table 4 section further below.

The KPI targets and behaviour goals applicable for the performance measurement for AVP in 2023 are presented in section 4.5.

## 2.5 Key developments in corporate executive remuneration in 2022

### *Execution of policy on executive remuneration in 2022*

The remuneration of the CEC members for 2022 was determined in accordance with the remuneration policy and principles approved by the AGM on 11 May 2021. These principles, as well as details on the elements constituting executive remuneration are outlined in Equinor’s remuneration policy, see Appendix.

The values-based performance framework and the main elements of remuneration applies to the CEC members employed by Equinor ASA and subsidiaries, in accordance with Equinor’s remuneration policy.

For 2022 Alasdair Cook and Carri Lockhart held positions with the CEC. Their terms and conditions were in accordance with local market practice in their respective base countries and Equinor’s applicable remuneration policies, ref. below.

### *Remuneration policy changes*

10

As noted in the 2021 annual report, the following changes were introduced to the remuneration policy effective 2022, in accordance with the updated requirements of the state:

- the maximum AVP potential has been reduced to 45% from 50% of base salary
- the share savings plan has been defined as variable pay under the guidelines, and thereby falls under the 80% maximum variable pay
- the holding period for shares under the employee share savings plan has been increased from two to three calendar years for the CEC members.

# General notes on remuneration elements

# Fixed pay

The annual salary increases for the members of the CEC in 2022 were in line with the general salary increase frame in the relevant Equinor entity.

# Variable pay

Based on the overall company performance in 2022 and in accordance with the threshold criteria described in the remuneration policy the AVP payments were not reduced.

The target for annual variable pay for members of the CEC employed by Equinor ASA was 25% of base salary, and the maximum annual variable pay for 2022 was 45% of base salary. For members of the CEC employed outside the Norwegian market other targets and maximum limit for annual variable pay apply.

The company performance modifier and the threshold affect the final annual variable pay award. As described above, the CPM was set at 133% for 2022. There was no threshold effect applied for 2022.

The LTI grants in 2022 were not reduced, as the threshold for the previous year - 2021 - was in the “green” zone.

# Benefits

As described in the remuneration policy, members of the CEC employed in Equinor ASA are covered by the company’s general occupational defined contribution pension scheme. A defined benefit scheme is retained for a grandfathered group of employees. In 2022, this applies to Arne Sigve Nylund and Geir Tungesvik.

A fixed salary addition calculated as 18% of base salary is provided in lieu of pension accrual above 12 G to members of the CEC covered by the general defined contribution pension scheme and who were employed by Equinor ASA before 1 September 2017. This addition does not form part either of the pensionable salary or of the basis for variable pay.

Members of the CEC employed in other subsidiaries have different pension arrangements, as described below.

# Notes on roles and remuneration of CEC members in 2022

11

| CEC member | Position | Period on CEC in 2022 and notes on remuneration |
| --- | --- | --- |
| Anders Opedal | President and chief executive officer (CEO) | Full year |
| Irene Rummelhoff | EVP Marketing, Midstream & Processing (MMP) | Full year |
| Arne Sigve Nylund | EVP Projects, Drilling & Procurement (PDP) | Until 30 April |
| Geir Tungesvik |  | As of 1 May |
| Jannicke Nilsson | EVP Safety, Security & Sustainability (SSU) | Full year |
| Pål Eitrheim | EVP Renewables (REN) | Full year |
| Alasdair Cook | EVP Exploration & Production International (EPI) | Full year. Employed in Equinor UK Ltd. Terms decided as appropriate due to local market conditions. - AVP target level at 40% of base salary (maximum 80%) - Long term incentive grant of 70% of base salary - Cash compensation in lieu of pension accrual. |
| Kjetil Hove | EVP Exploration & Production Norway (EPN) | Full year |
| Carri Lockhart | EVP Technology, Digital & Innovation (TDI) | Until 21 March. Was employed by Equinor US Operations LLC; resigned on 30 June. Terms decided as appropriate due to local market conditions. - AVP target 50% of base salary (max 100%) - Long term incentive grant of 70% of base salary - Carri Lockhart participates in a supplementary defined contribution pension scheme - SERP. This was established with her former employer and continued in Equinor US Operations LLC when she joined in 2016. |
| Elisabeth Birkeland Kvalheim |  | Acting EVP from 22 March to 31 August |
| Hege Skryseth |  | From 1 September |
| Ulrica Fearn | EVP and Chief financial officer (CFO) | Until 5 October; resigned 31 December Recruited from UK; remuneration until 15 June was agreed to be equal to being on international assignment from UK to Norway. As of 16 June additional benefits were provided with respect to housing and schooling. |

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| CEC member | Position | Period on CEC in 2022 and notes on remuneration |
| --- | --- | --- |
| Torgrim Reitan |  | From 6 October. Torgrim Reitan is entitled to early retirement from age 65 with a pension level amounting to 66% of pensionable salary. |
| Siv Helen Rygh Torstensen | EVP Legal & Compliance (LEG) | Full year |
| Ana Fonseca Nordang | EVP People & Organisation (PO) | Until 28 February |
| Aksel Stenerud |  | From 1 March |
| Jannik Lindbæk | EVP Communication (COM) | From 1 March |

## 2.6 Derogations and deviations from remuneration policy

There were no derogations from the remuneration policy in 2022.

## 2.7 Right to reclaim ('malus and clawback')

There were no cases where the right to reclaim was exercised in 2022.

## 2.8 Shareholder feedback on the remuneration report for 2021

The remuneration report for 2021 was presented for approval (advisory vote) at the annual general meeting on 11 May 2022 and was endorsed by a significant majority. 98.96% of the votes cast were in favour of the remuneration report for 2021. MTIF issued a statement to the 2022 AGM, as included in section 1.2.

## 2.9 Activities of the compensation and executive development committee in 2022

The activities of the BCC in 2022 were in line with the instructions from the board of directors which are available on equinor.com.

The BCC had a high focus in 2022 on addressing the comments from the MTIF provided at the 2022 AGM. This included discussing and reviewing proposals for:

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- adopting a more consistent approach and detailed template for performance contracts containing KPIs and goals used as a basis for setting AVP awards, applicable both to the CEO and the EVPs effective 2022
- a revised remuneration policy and remuneration report, presenting the information in a more structured and concise way, and with increased transparency on Equinor's approach to pay-for-performance and paying due regard to the principle of moderation.

Other activities included:

- Discussions on the trends within the executive talent market and executive remuneration
- Executive succession planning and talent review
- Recommendation to the board on the threshold used in calculating variable remuneration, based on relevant company performance results
- Recommendation to the board on the base salary review for the CEO
- Review and submission for approval of the board of the performance evaluation and goals for the CEO
- Assessment and submission for the decision of the board of the proposal for AVP of the CEO
- Presentation by the CEO of the performance assessment and considerations on AVP awards to the EVPs
- Discussion of the evaluation by the board and self-assessment of the performance of the BCC
- Review and submission for approval of the board of the instructions to the BCC

### 3 Remuneration and share ownership of the board of directors and corporate assembly

#### 3.1 Remuneration of the board of directors

In 2022, the total remuneration to the board, including fees for the board's three committees, was USD 801 thousand (NOK 7,662 thousand).

Detailed information about the individual remuneration to the members of the board of directors in 2022 is provided in the table below.

| Members of the board (figures in USD thousand) | Total remuneration |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2018 | 2019 | 2020 | 2021 | 2022 |
| Jon Erik Reinhardsen (chair of the board) | 117 | 110 | 108 | 119 | 110 |
| Jeroen van der Veer (deputy chair of the board) 1 | 95 | 101 | 96 | 98 | 52 |
| Anne Drinkwater (deputy chair of the board) 2 | 48 | 100 | 88 | 82 | 96 |
| Bjørn Tore Godal 3 | 70 | 67 | 64 | 70 | 62 |
| Rebekka Glasser Herlofsen | 66 | 62 | 59 | 66 | 66 |
| Jonathan Lewis | 44 | 93 | 76 | 70 | 80 |
| Finn Bjørn Ruyter | - | 37 | 69 | 77 | 71 |
| Tove Andersen | - | - | 27 | 59 | 55 |
| Michael Lewis 4 |  |  |  |  | 28 |
| Haakon Bruun-Hanssen 5 |  |  |  |  | - |
| Per Martin Labråten 6 | 59 | 56 | 54 | 66 | 65 |
| Stig Lægreid 7 | 59 | 56 | 54 | 59 | 55 |

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| Hilde Møllerstad 6 | - | 32 | 59 | 66 | 61 |
| --- | --- | --- | --- | --- | --- |
| Employee elected deputy members of the board |  |  |  |  |  |
| Hans Einar Haldorsen | - | - | - | - | - |
| Bjørn Palerud | - | - | - | - | - |
| Anita Skaga Myking | - | - | - | - | - |
| Total remuneration | 558 | 714 | 754 | 832 | 801 |
| 1) Member of the board until 30 June 2022 |  |  |  |  |  |
| 2) Deputy chair of the board from 1 July 2022 |  |  |  |  |  |
| 3) Member of the board until 11 December 2022 |  |  |  |  |  |
| 4) Member of the board from 1 July 2022 |  |  |  |  |  |
| 5) Member of the board from 12 December 2022 |  |  |  |  |  |
| 6) Employee-elected members of the board |  |  |  |  |  |

### 3.2 Total number and value of shares held by the members of the board of directors

The number of Equinor shares owned by members of the board of and/or owned by their close associates is shown below. Individually, each member of the board of directors owned less than 1% of the outstanding Equinor shares.

The voting rights of members of the board of directors, the CEC and the corporate assembly as a shareholder do not differ from those of ordinary shareholders.

| Ownership of Equinor shares (incl. shares owned by close associates) | As of 1 Jan. 2022 | As of 31 Dec. 2022 | Market value as of 31 Dec. 2022, USD thousand | As of 14 March 2023 |
| --- | --- | --- | --- | --- |
| Jon Erik Reinhardsen | 4,584 | 4,584 | 168 | 4,584 |
| Jeroen van der Veer | 6000 | - | - | - |
| Anne Drinkwater | 1,100 | 1,100 | 40 | 1,100 |
| Bjørn Tore Godal | - | - | - | - |
| Rebekka Glasser Herlofsen | 220 | 220 | 8 | 220 |
| Jonathan Lewis | - | - | - | - |
| Finn Bjørn Ruyter | 620 | 620 | 23 | 620 |
| Tove Andersen | 4,700 | 4,700 | 172 | 4,700 |
| Michael Lewis | - | - | - | - |
| Haakon Bruun-Hanssen | - | - | - | - |
| Per Martin Labråten | 2,642 | 587 | 22 | 796 |
| Stig Lægreid | 125 | 5 | 0 | 5 |
| Hilde Møllerstad | 5,234 | 6,290 | 231 | 7,185 |
| Deputy members | - | - | - | - |
| Hans Einar Haldorsen | 2,961 | 1,875 | 69 | 2,574 |
| Bjørn Palerud | 4,680 | 974 | 36 | 1,217 |
| Anita Skaga Myking | 5,898 | 6,240 | 229 | 6,544 |

### 3.3 Remuneration of the corporate assembly

15

In 2022, the total remuneration to the shareholder and employee-elected members of the corporate assembly was USD 135 thousand (NOK 1,296 thousand).

| Corporate assembly employee elected members (figures in USD thousand) | Total remuneration |  |
| --- | --- | --- |
|  | 2021 | 2022 |
| Berit Søgnen Sandven | 6 | 5 |
| Frode Mikkelsen | 6 | 5 |
| Lars Olav Grøvik | 6 | 5 |
| Oddvar Karlsen | 6 | 5 |
| Peter Bernhard Sabel | 6 | 5 |
| Terje S. Enes | 6 | 5 |
| Per Helge Ødegård (observer) | 6 | 5 |
| Ingvild Berg Martiniussen (observer) | 6 | 5 |
| Anne Kristi Horneland (observer) | 6 | 5 |
| Employee elected deputy members who received member fees |  |  |
| Terje Herland | 1 | 1 |
| Steinar Kåre Dale | 1 | 2 |
| Vidar Frøseth | - | 1 |
| Kjetil Gjerstad | - | 2 |
| Frank Indreland Gundersen | - | 1 |
| Katrine Knarvik-Skogstø | - | 2 |
| Total remuneration | 56 | 54 |

### 3.4 Shares held by the members of the corporate assembly

Individually, each member of the corporate assembly owned less than 1% of the outstanding Equinor shares as of 31 December 2022 and as of 14 March 2023. In aggregate, members of the corporate assembly owned a total of 27,155 shares as of 31 December 2022 and a total of 28,762 shares as of 14 March 2023. Information about the individual share ownership of the members of the corporate assembly is presented in the section 5.8 of the annual report «Corporate assembly, board of directors and management».

## 4 Remuneration and share ownership of the CEC

### 4.1 Remuneration of the CEC

In 2022, the aggregate remuneration to the CEC was USD 12,647 thousand (2021: USD 11,936 thousand).

No loans have been granted by the company to members of the CEC.

Below is an overview of the total remuneration of the CEC members in 2022.

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exhibit156p17i0

exhibit156p17i1

Table 1 - Remuneration of the corporate executive committee for the reported financial year
2022

17

| Members of the corporate executive committee (figures in USD thousand) | Fixed remuneration |  |  |  | Variable remuneration |  |  |  | Extra-ordinary items | Pension expenses | Total remuneration | Proportion of fixed and variable remuneration |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Fees |  |  |  | One-year variable | Multi-year variable |  |  |  |  |  |  |
|  | Base salary | Fixed salary addition | Other fees | Fringe benefits | AVP | LTI | SSP |  |  |  |  |  |
| Anders Opedal | 999 | 180 | 97 | 28 | 411 | 295 | 6 | 0 | 28 | 2042 |  | 63%/37% |
| Irene Rummelhoff | 436 | 78 | 74 | 10 | 198 | 107 | 28 | 0 | 29 | 961 |  | 63%/37% |
| Jannicke Nilsson | 360 | 65 | 87 | 47 | 138 | 89 | 23 | 0 | 37 | 844 |  | 68%/32% |
| Pål Eitrheim | 393 | 71 | 31 | 23 | 146 | 97 | 0 | 0 | 23 | 783 |  | 67%/33% |
| Kjetil Hove | 490 | 88 | 72 | 31 | 202 | 120 | 21 | 0 | 30 | 1055 |  | 65%/35% |
| Siv Helen Rygh Torstensen | 311 | 56 | 68 | 20 | 120 | 77 | 14 | 0 | 27 | 691 |  | 68%/32% |
| Arne Sigve Nylund | 151 | 0 | 13 | 8 | 37 | 29 | 79 | 0 | 48 | 365 |  | 59%/41% |
| Geir Tungesvik | 264 | 48 | 37 | 1 | 98 | 65 | 12 | 0 | 17 | 541 |  | 65%/35% |
| Ulrica Fearn | 479 | 0 | 298 | 43 | 0 | 0 | 0 | 0 | 14 | 833 |  | 100%/0% |
| Torgrim Reitan | 116 | 20 | 21 | 1 | 46 | 36 | 0 | 0 | 6 | 245 |  | 64%/36% |
| Ana Fonseca Nordang | 53 | 10 | 10 | 2 | 18 | 13 | 2 | 0 | 3 | 110 |  | 69%/31% |
| Aksel Stenerud | 260 | 47 | 49 | 17 | 101 | 64 | 10 | 0 | 28 | 575 |  | 67%/33% |
| Elisabeth Birkeland Kvalheim | 130 | 20 | 14 | 1 | 43 | 22 | 7 | 0 | 14 | 251 |  | 69%/31% |
| Hege Skryseth | 139 | 0 | 33 | 1 | 52 | 35 | 0 | 156 | 6 | 422 |  | 41%/59% |
| Jannik Lindbæk | 257 | 46 | 24 | 17 | 99 | 63 | 14 | 0 | 26 | 546 |  | 65%/35% |
| Alasdair Cook | 714 | 0 | 412 | 75 | 0 | 443 | 0 | 0 | 0 | 1643 |  | 73%/27% |
| Carri Lockhart | 110 | 87 | 332 | 27 | 0 | 153 | 12 | 0 | 18 | 738 |  | 78%/22% |

## 2021

| Members of the corporate executive committee (figures in USD thousand) | Fixed remuneration |  |  |  | Variable remuneration |  |  |  | Extra-ordinary items | Pension expenses | Total remuneration | Proportion of fixed and variable remuneration |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Fees |  |  |  | One-year variable | Multi-year variable |  |  |  |  |  |  |
|  | Base salary | Fixed salary addition | Other fees | Fringe benefits | AVP | LTI | SSP |  |  |  |  |  |

18

| Anders Opedal | 1,071 | 193 | 84 | 22 | 493 | 159 | 4 | 0 | 30 | 2,055 | 68% / 32% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Irene Rummelhoff | 469 | 85 | 55 | 10 | 201 | 58 | 14 | 0 | 31 | 924 | 70% / 30% |
| Jannicke Nilsson | 388 | 70 | 69 | 42 | 160 | 48 | 14 | 0 | 39 | 830 | 73% / 27% |
| Pål Eilheim | 400 | 72 | 33 | 19 | 200 | 46 | 0 | 0 | 25 | 796 | 69% / 31% |
| Kjetil Hove | 478 | 86 | 60 | 35 | 258 | 43 | 13 | 0 | 32 | 1,004 | 69% / 31% |
| Siv Helen Rygh Torstensen | 197 | 35 | 22 | 1 | 81 | 20 | 5 | 0 | 17 | 378 | 72% / 28% |
| Arne Sigve Nylund | 496 | 0 | 45 | 33 | 212 | 61 | 0 | 0 | 152 | 1,000 | 73% / 27% |
| Ulrica Fearn | 367 | 0 | 299 | 106 | 163 | 48 | 0 | 0 | 11 | 993 | 79% / 21% |
| Ana Fonseca Nordang | 204 | 37 | 26 | 5 | 84 | 18 | 4 | 0 | 14 | 393 | 73% / 27% |
| Alasdair Cook | 765 | 0 | 163 | 60 | 564 | 347 | 13 | 0 | 0 | 1,912 | 52% / 48% |
| Carri Lockhart | 307 | 112 | 216 | 70 | 227 | 199 | 8 | 0 | 46 | 1,184 | 63% / 37% |

Notes to the table “Remuneration of the corporate executive committee for the reported financial year”:

- The figures are presented on an accrual basis, i.e. for the earning period.
- For executives who were a member of the CEC for only part of 2022, all compensation and benefits have been allocated accordingly. See table in section “Notes on remuneration of CEC members in 2022” for details on position changes.
- Comparative figures are included for those employees who were part of the CEC in both 2022 and 2021.
- All CEC members received their remuneration in NOK except Alasdair Cook who received the remuneration in GBP, and Carri Lockhart who received remuneration in USD.
- All figures in the table are presented in USD based on average foreign currency exchange rates. Average rates 2022: NOK/USD = 0.1043, GBP/USD = 1.2355, (2021: NOK/USD = 0,1164, GBP/USD = 1,3756).
- **Fixed salary addition:** for Carri Lockhart the amount represents company contributions to the SERP plan.
- **Other fees** include car allowance, holiday pay and other cash payments. For Ulrica Fearn this category includes the agreed remuneration referred to in the section “Notes on roles and remuneration of CEC members in 2022”. For Alasdair Cook and Carri Lockhart the category includes compensation according to Equinor’s international assignment terms. Additionally for Alasdair Cook this category includes USD 107 thousand in lieu of pension contributions for 2022.
- **Fringe benefits** include benefits in kind such as company car, commuter apartments, health program.
- **AVP** (annual variable pay) includes holiday pay on the AVP payment for CEC members employed in Equinor ASA and resident in Norway.
- **LTI** (long-term incentive): With reference to the remuneration policy, the LTI plan is share-based in Equinor ASA and cash-based in the international subsidiaries. For CEC members employed in Equinor ASA the value included in Table 1 represents the grant, i.e. gross amount, which, after

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deduction of tax is invested in shares in the reporting year and subject to a lock-in period. For CEC members employed in the international subsidiaries this represents the pay-out under the cash-based plan after the lock-in period. Refer to the remuneration policy for further details.

- **SSP** (share savings plan): the amounts represent the value of the bonus shares received in the reporting year after the applicable holding period. For Arne Sigve Nylund it also includes the shares awarded at retirement. Refer to the remuneration policy for details of this plan.
- **Extraordinary items:** For Hege Skryseth this represents a sign-on bonus.
- **Pension expenses:** Estimated pension cost for the defined benefit scheme is calculated based on actuarial assumptions and pensionable salary (mainly base salary) at 31 December 2021 and is recognised as pension cost in the statement of income for 2022. Arne Sigve Nylund and Geir Tungesvik are maintained in the closed defined benefit scheme. The pension cost for the defined contribution scheme is represented by the respective contributions. For the notional contribution scheme, the pension cost is represented by the contributions and the fair value changes of the employees' notional assets. The remaining members of the CEC employed by Equinor ASA are covered by the defined contribution pension scheme. For Carri Lockhart, refer to comment under "Fixed salary addition" above. For Alasdair Cook, refer to comment under "Other fees" above.

## 4.2 Shares awarded or due to the CEC for the reported financial year

Table 3

Refer to the remuneration policy for details of the share-based plans.

- For those CEC members who were on the CEC less than a full year in 2022 the number of shares refers to the CEC period.
- Column 4 "Vesting date" has been excluded from the table, as this represents the same date as shown in column 5 "End of holding period".
- Column 9 "Shares subject to a performance condition" has been excluded from the table, as there are no performance conditions in relation to shares.
- Column 10 "Shares awarded and unvested at year end" has been excluded from the table, as this represents the same date as shown in column 11 "Shares subject to a holding period"

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | 6 Shares awarded at the beginning of the year | During the year |  | Closing balance |
|  |  |  |  |  |  | 7 Shares awarded | 8 Shares vested |  |
| Anders Opedal CEO |  | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,997 |  | 2,997 | 11 Shares subject to a holding period |
|  | LTI | 2020 - 2022 | 05/29/2020 | 05/28/2023 | 3,830 |  | USD 105,414 | 3,830 |
|  |  | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 3,614 |  |  | 3,614 |
|  |  | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 4,002 |  | 4,002 |
|  |  |  |  |  |  | USD 138,531 |  |  |
|  | SSP | 2022 | 01/18/2022 |  |  | 212 |  |  |
|  |  |  |  |  |  | USD 5,633 |  |  |
|  | SUM |  |  |  | 10,441 | 4,214 | 2,997 | 11,446 |
|  |  |  |  |  |  | USD 144,163 | USD 105,414 |  |

| Name, Position | The main conditions of share award plans |  | Information regarding the reported financial year |  |
| --- | --- | --- | --- | --- |
|  | Opening balance | During the year | Closing balance |  |

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| Name, Position | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Irene Rummelhoff EVP MMP | LTI | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,858 |  | 2,858 |  |
| 2020 - 2022 |  |  | 05/29/2020 | 05/28/2023 | 3,802 |  | USD 100,525 | 3,802 |  |
| 2021 - 2023 |  |  | 06/17/2021 | 06/16/2024 | 1,267 |  |  | 1,267 |  |
| 2022 - 2024 |  |  | 05/20/2022 | 05/19/2025 |  | 1,487 |  | 1,487 |  |
| SSP |  | 2022 | 01/18/2022 |  |  | USD 51,473 |  |  |  |
|  |  |  |  |  |  | 1,040 |  |  |  |
|  | SUM |  |  |  | 7,927 | 2,527 | 2,858 | 6,556 |  |
|  |  |  |  |  |  | USD 79,106 | USD 100,525 |  |  |

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year | Closing balance |  |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Arne Sigve Nylund EVP PDP | LTI | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,365 |  | 2,365 |  |
|  |  | 2020 - 2022 | 05/29/2020 | 07/31/2022 | 4,036 |  | USD 83,185 |  |
|  |  | 2021 - 2023 | 06/17/2021 | 07/31/2022 | 1,339 |  | 4,036 |  |
|  |  | 2022 - 2024 | 05/20/2022 | 07/31/2022 |  | 528 | USD 155,370 |  |
|  | SSP | 2022 | 01/18/2022 |  |  | USD 18,261 | 1,339 |  |
|  |  | 2022 | 06/16/2022 |  |  | 619 | USD 51,546 |  |
|  | SUM |  |  |  | 7,740 | 2,830 | 8,268 |  |
|  |  |  |  |  |  | USD 96,197 | USD 20,326 |  |

- The end of holding period under the LTI plan dated 31 July 2022 is due to retirement on 31 July 2022.
- Allocation of bonus shares under the SSP on 16 June 2022 is due to retirement.

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year | Closing balance |  |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Geir Tungesvik EVP PDP | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 863 |  | 863 |
|  | SSP | 2022 | 01/18/2022 |  |  | USD 29,869 |  |  |
|  |  |  |  |  |  | 443 |  |  |
|  | SUM |  |  |  |  | 1,306 |  | 863 |
|  |  |  |  |  |  | USD 41,640 |  |  |

| The main conditions of share award plans | Information regarding the reported financial year |
| --- | --- |

21

| Name, Position | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested |  |
| Jannicke Nilsson EVP SSU | LTI | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,365 |  | 2,365 USD 83,185 | 11 Shares subject to a holding period |
|  |  | 2020 - 2022 | 05/29/2020 | 05/28/2023 | 3,205 |  |  |  |
|  |  | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 1,091 |  |  |  |
|  |  | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 1,254 USD 43,408 |  |  |
|  | SSP | 2022 | 01/18/2022 |  |  | 862 USD 22,903 |  |  |
|  | SUM |  |  |  | 6,661 | 2,116 USD 66,311 | 2,365 USD 83,185 | 5,550 |

| Name, Position | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Information regarding the reported financial year |  | Closing balance |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | Opening balance | During the year |  |  |
| Pål Eilrheim EVP REN | LTI | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,503 |  | 2,503 USD 88,039 | 11 Shares subject to a holding period |
|  |  | 2020 - 2022 | 05/29/2020 | 05/28/2023 | 3,385 |  |  |  |
|  |  | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 1,153 |  |  |  |
|  |  | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 1,478 USD 51,161 |  |  |
|  | SUM |  |  |  | 7,041 | 1,478 USD 51,161 | 2,503 USD 88,039 | 6,016 |

| Name, Position | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Information regarding the reported financial year |  | Closing balance |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | Opening balance | During the year |  |  |  |
| Kjetil Hove EVP DPN/EPN | LTI | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 997 |  | 997 1,670 | 11 Shares subject to a holding period |  |
|  |  | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 1,670 USD 57,808 |  |  |  |
|  |  | SSP | 2022 | 01/18/2022 |  |  | 800 USD 21,256 |  |  |
|  |  | SUM |  |  |  | 997 | 2,470 USD 79,064 |  | 2,667 |

| Name, Position | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Information regarding the reported financial year |  | Closing balance |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | Opening balance | During the year |  |  |
|  | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
|  |  |  |  |  |  | 320 USD 11,084 |  |  |

22

Elisabeth B Kvalheim
EVP TDI

| SSP | 2022 | 01/18/2022 | 270 USD 7,179 |  |
| --- | --- | --- | --- | --- |
| SUM |  |  | 590 USD 18,262 | 320 |

23

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Hege Skryseth | LTI | 2022 - 2024 | 11/18/2022 | 11/17/2025 |  | 461 |  | 461 |
| EVP TDI | SUM |  |  |  |  | USD 17,064 |  |  |
|  |  |  |  |  |  | 461 |  | 461 |
|  |  |  |  |  |  | USD 17,064 |  |  |

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Ulrica Fearn | LTI | 2021 - 2023 | 03/24/2022 | 12/31/2022 |  | 795 | 795 |  |
| EVP CFO |  | 2022 - 2024 | 05/20/2022 | 12/31/2022 |  | USD 23,491 | USD 29,178 |  |
|  |  |  |  |  |  | 1,825 | 1,825 |  |
|  |  |  |  |  |  | USD 63,169 | USD 66,980 |  |
|  | SUM |  |  |  |  | 2,620 | 2,620 |  |
|  |  |  |  |  |  | USD 86,661 | USD 96,158 |  |

- The end of holding period dated 31 December 2022 is due to termination of employment on 31 December 2022.
- The 2021-2023 grant was included in Table 1 in chapter 3.12 of the 2021 annual report. The related shares were allocated in 2022.

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Torgrim Reitan | LTI | 2019 - 2021 | 05/08/2019 | 05/07/2022 | 2,539 |  | 2,539 |  |
| EVP CFO |  | 2020 - 2022 | 05/29/2020 | 05/28/2023 | 3,376 |  | USD 89,305 | 3,376 |
|  |  | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 283 |  | 283 |
|  |  |  | 11/18/2022 | 11/17/2025 |  | USD 9,810 |  |  |
|  |  |  |  |  |  | 117 |  | 117 |
|  |  |  |  |  |  | USD 4,331 |  |  |
|  | SSP | 2022 | 01/18/2022 |  |  | 255 |  |  |
|  |  |  |  |  |  | USD 6,770 |  |  |
|  | SUM |  |  |  | 5,915 | 655 | 2,539 | 3,776 |
|  |  |  |  |  |  | USD 20,911 | USD 89,305 |  |

24

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Siv H Rygh Torstensen |  | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 545 |  |  | 545 |
|  | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 1,172 |  | 1,172 |
|  |  |  |  |  |  | USD 40,569 |  |  |
| EVP LEG | SSP | 2022 | 01/18/2022 |  |  | 510 |  |  |
|  |  |  |  |  |  | USD 13,551 |  |  |
|  | SUM |  |  |  | 545 | 1,682 |  | 1,717 |
|  |  |  |  |  |  | USD 54,120 |  |  |

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Ana Fonseca Nordang |  | 2021 - 2023 | 06/17/2021 | 06/16/2024 | 502 |  |  | 502 |
|  | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 197 |  | 197 |
|  |  |  |  |  |  | USD 6,815 |  |  |
| EVP PO | SSP | 2022 | 01/18/2022 |  |  | 72 |  |  |
|  |  |  |  |  |  | USD 1,903 |  |  |
|  | SUM |  |  |  | 502 | 268 |  | 699 |
|  |  |  |  |  |  | USD 8,718 |  |  |

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested | 11 Shares subject to a holding period |
| Aksel Stenerud | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 922 |  | 922 |
|  |  |  |  |  |  | USD 31,909 |  |  |
|  | SSP | 2022 | 01/18/2022 |  |  | 376 |  |  |
| EVP PO |  |  |  |  |  | USD 10,002 |  |  |
|  | SUM |  |  |  |  | 1,298 |  | 922 |
|  |  |  |  |  |  | USD 41,910 |  |  |

25

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested |  |
| Jannik Lindbæk EVP COM | LTI | 2022 - 2024 | 05/20/2022 | 05/19/2025 |  | 952 USD 32,958 |  | 952 |
|  | SSP | 2022 | 01/18/2022 |  |  | 532 USD 14,122 |  |  |
|  | SUM |  |  |  |  | 1,484 USD 47,081 |  | 952 |

| Name, Position | The main conditions of share award plans |  |  |  | Information regarding the reported financial year |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 1 Specification of plan | 2 Performance period | 3 Award date | 5 End of holding period | Opening balance | During the year |  | Closing balance |
|  |  |  |  |  | 6 Shares awarded at the beginning of the year | 7 Shares awarded | 8 Shares vested |  |
| Carri Lockhart EVP TDI | SSP | 2022 | 01/18/2022 |  |  | 455 USD 11,996 |  |  |
|  | SUM |  |  |  |  | 455 USD 11,996 |  |  |

### 4.3 Total number and value of shares held by the CEC

The number of Equinor shares owned by members of the CEC and/or their close associates is shown below. Individually, each member of the CEC owned less than 1% of the outstanding Equinor shares.

The voting rights of members of the CEC members as shareholders do not differ from those of ordinary shareholders.

| Ownership of Equinor shares (incl. shares owned by close associates) | As of 1 Jan. 2022 | As of 31 Dec. 2022 | Market value as of 31 Dec. 2022, USD thousand | As of 14 March 2023 |
| --- | --- | --- | --- | --- |
| Anders Opedal | 41,458 | 46,996 | 1,725 | 47,315 |
| Ulrica Fearn | - | - | - | - |
| Torgrim Reitan | - | 11,473 | 421 | 12,879 |
| Arne Sige Nylund | 15,820 | - | - | - |
| Geir Tungesvik | - | 17,624 | 647 | 18,563 |
| Irene Rummelhoff | 25,036 | 28,152 | 1,033 | 29,523 |
| Jannicke Nilsson | 56,272 | 59,380 | 2,179 | 60,945 |
| Pål Eilheim | 17,840 | 19,644 | 721 | 19,644 |
| Alasdair Cook | 3,738 | 3,738 | 137 | - |
| Philippe F. Mathieu | - | 4,645 | 170 | 5,420 |
| Kjetil Hove | 17,017 | 20,149 | 740 | 21,220 |
| Carri Lockhart | 8,450 | - | - | - |
| Hege Skryseth | - | 2,633 | 97 | 2,633 |
| Siv Helen Rygh Torstensen | 13,318 | 15,832 | 581 | 17,132 |
| Ana Fonseca Nordang | 8,370 | - | - | - |
| Aksel Stenerud | - | 9,372 | 344 | 9,966 |

26

| Jannik Lindbæk | - | 12,542 | 460 | 13,367 |
| --- | --- | --- | --- | --- |

#### 4.4 Performance and AVP awarded to the CEC members in the reported financial year

In accordance with Equinor's performance framework and remuneration policy, performance in relation to behaviour goals has formed an equal part to the business performance in the holistic performance assessment.

The assessment of the performance results for 2022 is presented below, including a score measurement against the set KPI targets and behaviour goals.

Each delivery KPI is given a score within a range of 1-5, where 5 is the highest result. Each score reflects a holistic assessment, where applicable. The holistic assessment may reflect events outside the control of the CEO or EVPs, such as exceptional fluctuations in commodity prices, changes in global conditions, the industry operating environment or other relevant context.

The overall performance on the behaviour goals is also given a score within the range of 1-5. Performance on behaviour goals is a qualitative assessment by the board of directors and the CEO, as applicable, and is supported by the results of employee feedback surveys.

The scores are converted into the AVP award percentage, as shown in the below conversion table.

As mentioned above, two factors - the threshold and the company performance modifier ('CPM') - are applied to the percentage to arrive at the final AVP award pay-out levels, as described above.

Process illustration - numbers are for illustration only

27

exhibit156p28i0

28

Conversion table from performance rating to AVP

![img-0.jpeg](img-0.jpeg)

Select business delivery KPIs ("what" dimension) set at the corporate level are applicable to both CEO and the EVPs.

Table 4 - Performance of CEC members in the reported financial year

Corporate delivery KPIs

| "WHAT"-dimension - corporate delivery KPIs - total assessment |  |  | 3.4 |
| --- | --- | --- | --- |
|  | Target | Achievements | Assessment |
| Serious incident frequency | <0.4 | 0.4 | 3.3 |
| Upstream CO2 intensity | <8 kg/boe | 6.9 kg /boe | 3.5 |
| Capex share REN/LCS | >15% | 14% | 2.8 |
| Relative TSR | Above average | 2 nd quartile | 3.0 |
| Relative RoACE | 1 st quartile | 1 st quartile | 4.2 |

Holistic assessment of corporate delivery KPIs:

The final scores for the following KPIs have been adjusted from actual score through the board of directors' holistic assessment:

1) Final score for Serious incident frequency is increased as the result is best in history, and with continued improvement from last year and an actual reduction in number of incidents despite higher activity level
2) Final score for Upstream CO2 intensity has been reduced for positive impact from high gas production, late start of Peregrino and Snøhvit and start-up of low emitting assets
3) The final score on relative ROACE has been reduced to reflect the impact of delayed tax payments on the NCS

Additional BA-specific delivery KPIs ("what" dimension) apply to EVPs with business areas responsibilities.

29

Select behaviour goals ('how' dimension) are set in relation to both CEO and the EVPs and assessed on an individual basis. The total score representing the assessment of the results is shown below for the respective CEC member. The assessment of individual behaviour goals is not disclosed.

| 'HOW'-dimension - behaviour goals |
| --- |
| Demonstrate accountability, visibility, and engagement for safety and compliance |
| Build trust in the CEC and Equinor |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |
| Develop strong succession pipeline |

The performance results of each member of the CEC with respect to the delivery KPIs and behaviour goals set for such member are set forth further, together with the resulting AVP award level.

### Anders Opedal (CEO)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| 'HOW'-dimension - behaviour goals |  |  |  | 3.3 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.3 |
| AVP award pre company performance modifier |  |  |  | 30% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 1,031 |  |  |  |
| Award based on performance evaluation |  | 30% | n/a | 309 |
| Adjustment for company modifier | 133% | 0.33 |  | 102 |
|  |  |  |  | 421 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

### Irene Rummelhoff (EVP MMP)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| 'WHAT'-dimension - business area delivery KPIs |  |  |  | 3.5 |
|  | Target | Achievements | Assessment |  |
| Unplanned shutdowns onshore assets | 2.50% | 3.80% | 2.7 |  |
| Adjusted earnings (MUSD) | >1,500 | 4,920 | 5.0 |  |
| Fixed opex and SG&A (MUSD) | <1,145 | 1,313 | 2.8 |  |
| 'HOW'-dimension - behaviour goals |  |  |  | 3.3 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |

30

| Build trust in the CEC and Equinor |  |  |  |  |
| --- | --- | --- | --- | --- |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.4 |
| AVP award pre company performance modifier |  |  |  | 33% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 450 |  |  |  |
| Award based on performance evaluation |  | 33% | n/a | 149 |
| Adjustment for company modifier | 133% | 0.33 |  | 49 |
|  |  |  |  | 198 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

#### Jannicke Nilsson (EVP SSU)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| “HOW”-dimension - behaviour goals |  |  |  | 3.1 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 370 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 104 |
| Adjustment for company modifier | 133% | 0.33 |  | 34 |
|  |  |  |  | 138 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

#### Pål Eitrheim (EVP REN)

| «WHAT»-dimension - corporate delivery KPIs |  |  | 3.4 |
| --- | --- | --- | --- |
| “WHAT”-dimension - business area delivery KPIs |  |  | 2.8 |
|  | Target | Achievements | Assessment |
| Production based availability (PBA) | >96% | 93.3% | 2.8 |

31

| Capacity accessed offshore | >3 GW | 2 GW | 2.9 |
| --- | --- | --- | --- |
| Improvement in LCOE | >2% | -1% | 2.6 |
| "HOW"-dimension - behaviour goals |  |  | 3.2 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |
| Develop strong succession pipeline |  |  |  |
| Total performance assessment for AVP |  |  | 3.1 |
| AVP award pre company performance modifier |  |  | 27% |
| AVP award | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |
| Base salary, USD (1000) | 405 |  |  |
| Award based on performance evaluation | 27% | n/a | 109 |
| Adjustment for company modifier | 133% | 0,33 | 36 |
|  |  |  | 146 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

**BA-specific KPIs:** The final scores for the following KPIs have been adjusted from actual score through the CEO's holistic assessment of the performance:

The score for accessed wind capacity KPI has been increased slightly because capital discipline has been desirable in a very competitive market

#### Kjetil Hove (EVP EPN)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| "WHAT"-dimension - business area delivery KPIs |  |  |  | 3.3 |
|  | Target | Achievements | Assessment |  |
| Production | >1,425 | 1,387 | 3.3 |  |
| UPC USD/boe | <5 | 5.8 | 3.3 |  |
| Net cash flow @65 USD/bbl | >13 BUSD | 12.5 BUSD | 3.3 |  |
| "HOW"-dimension - behaviour goals |  |  | 3.3 |  |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  | 3.3 |  |
| AVP award pre company performance modifier |  |  | 30% |  |
| AVP award | Award outcome AVP % | Reduction for threshold | USD (1000) |  |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 506 |  |  |  |

32

| Award based on performance evaluation |  | 30% | n/a | 152 |
| --- | --- | --- | --- | --- |
| Adjustment for company modifier | 133% | 0.33 |  | 50 |
|  |  |  |  | 202 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

**BA-specific KPIs:** The final scores for the following KPIs have been adjusted from actual score through the CEO's holistic assessment of the performance:

1) Final score for Production is increased as a result of strong gas deliveries from NCS to Europe
2) Final score for Unit production cost is increased as a result of market effects from increased Co2 and electricity cost
3) Net cash flow at 65 is increased as a result of market effects on cost

#### Siv Helen Rygh Torstensen (EVP LEG)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| "HOW"-dimension - behaviour goals |  |  |  | 3.1 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 321 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 90 |
| Adjustment for company modifier | 133% | 0.33 |  | 30 |
|  |  |  |  | 120 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

#### Geir Tungesvik (EVP PDP)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| "WHAT"-dimension - business area delivery KPIs |  |  |  | 2.9 |
|  | Target | Achievements | Assessment |  |
| Number of new wells | 107 | 94 | 2.6 |  |
| Break-even price DG1-DG3 (USD/boe) | <=37 | 40.8 | 3.0 |  |
| Estimate development DG3/4 | <105% | 109% | 3.1 |  |

33

| "HOW"-dimension - behaviour goals |  |  |  | 3.1 |
| --- | --- | --- | --- | --- |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.1 |
| AVP award pre company performance modifier |  |  |  | 27% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 406 |  |  |  |
| Award based on performance evaluation |  | 27% | n/a | 110 |
| Adjustment for company modifier | 133% | 0.33 |  | 36 |
|  |  |  |  | 146 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

**BA-specific KPIs:** The final scores for the following KPIs have been adjusted from actual score through the CEO's holistic assessment of the performance:

1) Break-even price DG1-DG3 adjusted due to unprecedented market increase
2) Estimate DG3-DG4 is increased due to the impact of currency

### Torgrim Reitan (CFO)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| "HOW"-dimension - behaviour goals |  |  |  | 3.3 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.3 |
| AVP award pre company performance modifier |  |  |  | 30% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 485 |  |  |  |
| Award based on performance evaluation |  | 30% | n/a | 146 |
| Adjustment for company modifier | 133% | 0.33 |  | 48 |
|  |  |  |  | 194 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

34

### Ana Fonseca Nordang (EVP PO)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | - |
| --- | --- | --- | --- | --- |
| “HOW”-dimension - behaviour goals |  |  |  | - |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | - |
| AVP award pre company performance modifier |  |  |  | 25% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 326 |  |  |  |
| Award based on performance evaluation |  | 25% | n/a | 82 |
| Adjustment for company modifier | 133% | 0.33 |  | 27 |
|  |  |  |  | 109 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

Due to short period in role in 2022 scores not provided.

### Aksel Stenerud (EVP PO)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| “HOW”-dimension - behaviour goals |  |  |  | 3.1 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 322 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 90 |
| Adjustment for company modifier | 133% | 0.33 |  | 30 |
|  |  |  |  | 120 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

35

### Elisabeth Birkeland Kvalheim (acting EVP TDI)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| “WHAT”-dimension - business area delivery KPIs |  |  |  | 2.9 |
|  | Target | Achievements | Assessment |  |
| Low Carbon/Renewable R&D | > 2021 (32%) | 36% | 3.3 |  |
| Net multiple of Money Invested | >1 | <1 | 2.7 |  |
| TDI task responsibility - Cost, MNOK, 100% | <8,000 | 10,088 | 2.8 |  |
| “HOW”-dimension - behaviour goals |  |  |  | 3.3 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 261 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 73 |
| Adjustment for company modifier | 133% | 0.33 |  | 24 |
|  |  |  |  | 97 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

### Hege Skryseth (EVP TDI)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| “WHAT”-dimension - business area delivery KPIs |  |  |  | 2.9 |
|  | Target | Achievements | Assessment |  |
| Low Carbon/Renewable R&D | > 2021 (32%) | 36% | 3.3 |  |
| Net multiple of Money Invested | >1 | <1 | 2.7 |  |
| TDI task responsibility - Cost, MNOK, 100% | <8,000 | 10,088 | 2.8 |  |
| “HOW”-dimension - behaviour goals |  |  |  | 3.3 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |

36

| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| --- | --- | --- | --- | --- |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 417 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 117 |
| Adjustment for company modifier | 133% | 0.33 |  | 39 |
|  |  |  |  | 155 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

#### Jannik Lindbæk (EVP COM)

| «WHAT»-dimension - corporate delivery KPIs |  |  |  | 3.4 |
| --- | --- | --- | --- | --- |
| “HOW”-dimension - behaviour goals |  |  |  | 3.1 |
| Demonstrate accountability, visibility, and engagement for safety and compliance |  |  |  |  |
| Build trust in the CEC and Equinor |  |  |  |  |
| Transform own organisation to deliver on our common purpose and become a leading company in the energy transition |  |  |  |  |
| Develop strong succession pipeline |  |  |  |  |
| Total performance assessment for AVP |  |  |  | 3.2 |
| AVP award pre company performance modifier |  |  |  | 28% |
| AVP award |  | Award outcome AVP % | Reduction for threshold | USD (1000) |
| AVP target | 25% |  |  |  |
| Base salary, USD (1000) | 317 |  |  |  |
| Award based on performance evaluation |  | 28% | n/a | 89 |
| Adjustment for company modifier | 133% | 0.33 |  | 29 |
|  |  |  |  | 118 |

The performance assessment included the following holistic considerations, which have influenced the overall score:

**Corporate delivery KPIs:** Ref comments to separate table above on corporate delivery KPIs

#### 4.5 Key performance indicators and behaviour goals forming the basis for AVP for the CEC in 2023

The business delivery dimension (“what”) for the variable remuneration (performance year 2023) for the CEC members will be based on an assessment against the following common corporate KPIs:

- Serious Incident Frequency: 0.3 or better
- CO2 intensity for the upstream portfolio: 8 kg CO2/boe or better
- Relative total shareholder return: ranked better than peer average
- Relative RoACE: Ranked in first quartile among peers

37

- Unit production cost (UPC): under 6.0 USD/boe*
- Renewable (REN) power production*: not disclosed **

(*) only apply to the CEO and EVPs without business area responsibilities

For EVPs with business area responsibilities, the assessment of the business delivery dimension will in addition be made against the following KPIs:

| Business area | KPI | Unit | Target |
| --- | --- | --- | --- |
| EPN | Production | kboe/d | 1,446 |
|  | UPC | nominal USD/boe | 5.8 |
|  | Break-even price (CMU portfolio) | USD/bbl | <35 |
| EPI | Production | kboe/d | 677 |
|  | UPC | nominal USD/boe | 6.5 |
|  | Break-even price (CMU portfolio) | USD/bbl | <35 |
| MMP | Production efficiency | % | not disclosed** |
|  | Net Operating income (ex derivatives) | bn USD | not disclosed** |
|  | Fixed opex & SG&A | mill USD | 1,285 |
| REN | REN power generation | TWh | not disclosed* |
|  | NOI adjusted | mill USD | > -200 |
| PDP | Number of wells | number | 104 |
|  | Break-even price (CMU portfolio) | USD/bbl | <35 |
|  | Estimate development DG3-DG4 | % | 100% |
| TDI | Low carbon R&D |  | >30% |
|  | Software consolidation progress |  | 50% |
|  | TDI task responsibility cost savings | NOK mill, 100% | 500 |

(**) Not disclosed due to commercial sensitivity

The behaviour dimension ("how") will be based on an individual assessment against the following goals:

- Demonstrate accountability, visibility, and engagement for safety, security and compliance
- Build trust in Equinor
- Transform the organization to deliver on our common purpose and become a leading company in the energy transition
- Develop strong and diverse succession pipeline

## 5 Remuneration and company performance for 2017-2022

### 5.1 Comparative tables over the remuneration and company performance compared to the last five reported financial years

Table 5 - Comparative table over the remuneration and company performance over the last five reported financial years (RFY)

Executive remuneration for 2018-2022
All amounts in USD

| Remuneration | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- |

38

# **Anders Opedal, CEO**

| Total remuneration and % change vs previous year | 1,171,410 | - | 881,029 | -24.79% | 814,098 | -7.60% | 2,055,023 | 152.43% | 2,042,382 | -0.62% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | 4.00% | - | 0.00% | 133.30% | 3.50% | - | 4.90% | - |
| AVP % pre and post threshold and company performance modifier | - | - | 28.00% | 23.24% | 0.00% | 0.00% | 30.00% | 45.00% | 30.00% | 39.90% |
| LTI % pre and post threshold | - | - | 25.00% | 25.00% | 25.00% | 25.00% | 30.00% | 15.00% | 30.00% | 30.00% |

| Remuneration | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- |

# **Irene Rummelhoff, EVP MMP**

| Total remuneration and % change vs previous year | 924,926 | 28.34% | 826,342 | -10.66% | 681,363 | -17.54% | 923,578 | 35.55% | 960,784 | 4.03% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | 25.10% | 3.80% | - | - | - | 3.00% | 5.40% | 4.90% | - |
| AVP % pre and post threshold and company performance modifier | 29.00% | 43.50% | 26.00% | 21.58% | - | - | 28.00% | 42.00% | 33.00% | 43.89% |
| LTI % pre and post threshold | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 12.50% | 25.00% | 25.00% |

# **Arne Sigve Nylund, EVP PDP**

| Total remuneration and % change vs previous year | 1,001,197 | 19.27% | 889,200 | -11.19% | 736,354 | -17.19% | 999,976 | 35.80% | 1,111,160 | 11.12% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | 11.00% | - | 4.20% | - | - | - | 3.00% | - | - | - |
| AVP % pre and post threshold and company performance modifier | 31.00% | 46.50% | 26.00% | 21.58% | - | - | 28.00% | 42.00% | - | - |
| LTI % pre and post threshold | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 12.50% | 25.00% | 25.00% |

# **Jannicke Nilsson, EVP SSU**

| Total remuneration and % change vs previous year | 890,465 | 15.29% | 757,055 | -14.98% | 623,702 | -17.61% | 829,810 | 33.05% | 844,012 | 1.71% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | 3.10% | - | 3.60% | - | - | - | 3.00% | 5.40% | 4.50% | - |
| AVP % pre and post threshold and company performance modifier | 26.00% | 39.00% | 23.00% | 19.09% | - | - | 27.00% | 40.50% | 28.00% | 37.24% |
| LTI % pre and post threshold | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 12.50% | 25.00% | 25.00% |

# **Pål Eithheim, EVP REN**

| Total remuneration and % change vs previous year | 807,881 | - | 669,000 | -17.19% | 524,113 | -21.66% | 796,048 | 51.88% | 782,549 | -1.70% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | 3.40% | - | - | - | 4.00% | 17.20% | 4.90% | - |
| AVP % pre and post threshold and company performance modifier | - | - | 26.00% | 21.58% | - | - | 31.00% | 46.50% | 27.00% | 35.91% |
| LTI % pre and post threshold | - | - | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 12.50% | 25.00% | 25.00% |

# **Alasdair Cook, EVP EPI**

39

| Total remuneration and % change vs previous year | 1,331,015 | - | 1,364,022 | 2.48% | 1,037,272 | -23.95% | 1,912,255 | 84.35% | 1,643,412 | -14.06% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | 5.95% | - | - | - | 3.50% | 23.60% | 4.50% | 0 |
| AVP % pre and post threshold and company performance modifier | - | - | 43.00% | 35.69% | - | - | 48.00% | 72.00% | - |  |
| LTI % pre and post threshold | - | - | 70.00% | 93.33% | 70.00% | 85.40% | 70.00% | 85.40% | 70.00% | 85.40% |

40

# **All amounts in USD**

| Remuneration | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- |

# **Kjetil Hove, EVP EPN**

| Total remuneration and % change vs previous year | - | - | - | - | - | - | 1,004,283 | - | 1,055,271 | 5.08% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | - | - | - | - | - | - | 5.05% | - |
| AVP % pre and post threshold and company performance modifier | - | - | - | - | - | - | 32.00% | 48.00% | 30.00% | 39.90% |
| LTI % pre and post threshold | - | - | - | - | - | - | 25.00% | 12.50% | 25.00% | 25.00% |

# **Carri Lockhart, EVP TDI**

| Total remuneration and % change vs previous year | - | - | - | - | - | - | 2,018,761 | - | 3,367,960 | 66.83% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | - | - | - | - | - | - | - | - |
| AVP % pre and post threshold and company performance modifier | - | - | - | - | - | - | 50.00% | 75.00% | - | - |
| LTI % pre and post threshold | - | - | - | - | - | - | 70.00% | 85.40% | 70.00% | 85.40% |

# **Ulrica Fearn, EVP and CFO**

| Total remuneration and % change vs previous year | - | - | - | - | - | - | 1,821,237 | - | 1,093,432 | -39.96% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | - | - | - | - | - | - | 4.90% | - |
| AVP % pre and post threshold and company performance modifier | - | - | - | - | - | - | 30.00% | 45.00% | - | - |
| LTI % pre and post threshold | - | - | - | - | - | - | 25.00% | 12.50% | 25.00% | 25.00% |

41

# **All amounts in USD**

| Remuneration | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- |

# **Torgim Reitan, EVP CFO**

| Total remuneration and % change vs previous year | 1,206,165 | 2.28% | 904,980 | -24.97% | 766,448 | -15.31% | - | 1,027,357 | - |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | 7.77% |  | 3.73% |  |  |  |  | - | - |
| AVP % pre and post threshold and company performance modifier | 30.00% | 45.00% | 27.00% | 22.41% |  |  |  | 30.00% | 39.90% |
| LTI % pre and post threshold | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |  | 25.00% | 25.00% |

# **Siv Helen Rygh Torstensen, EVP LEG**

| Total remuneration and % change vs previous year | - | - | - | - | - | - | 645,511 | 691,436 | 7.11% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | - | - | - | - |  | 4.90% | - |
| AVP % pre and post threshold and company performance modifier | - | - | - | - | - | - | 27.00% | 40.50% | 28.00% |
| LTI % pre and post threshold | - | - | - | - | - | - | 25.00% | 12.50% | 25.00% |

# **Ana Fonseca Nordang, EVP PO**

| Total remuneration and % change vs previous year | - | - | - | - | - | - | 670,712 | - | 682,030 | 1.69% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Base salary % increase in annual salary review and on other adjustments | - | - | - | - | - | - | - | - | - | - |
| AVP % pre and post threshold and company performance modifier | - | - | - | - | - | - | 27.00% | 40.50% | 25.00% | 33.25% |
| LTI % pre and post threshold | - | - | - | - | - | - | 25.00% | 12.50% | 25.00% | 25.00% |

# **Geir Tungesvik, EVP PDP**

# **Elisabeth Birkeland Kvalheim, Acting EVP TDI**

# **Hege Skryseth, EVP TDI**

# **Aksel Stenerud, EVP PO**

# **Jannik Lindbæk, EVP COM**

42

Notes to the table “Executive remuneration for 2017-2022”:

- Total remuneration consists of taxable compensation, non-taxable benefits in kind, and estimated pension cost for the years 2017-2020
- For the cash-based plans, payment of LTI is made 3 years after the grant. The “post” percentage is relative to base salary at the time of the grant.

| Company performance - effect on AVP and LTI | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | AVP | LTI | AVP | LTI | AVP | LTI | AVP | LTI | AVP | LTI |
| Threshold | - | - | - | - | 50 % reduct. | - | - | 50 % reduct. | - | - |
| Company performance modifier | 150% | - | 83% | - | 133% | - | 150% | - | 133% | - |

All amounts in USD

| Average remuneration on a full-time equivalent basis of employees | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Equinor ASA 4) |  |  |  |  |  |  |  |  |  |  |
| Average base salary and % change vs previous year, based on USD amounts | 94,903 | 4.70% | 90,260 | -4.90% | 86,229 | -4.50% | 95,893 | 11.20% | 88,923 | -7.27% |
| Change in average base salary vs previous year, based on NOK amounts | - | 3.00% | - | 3.00% | - | 1.60% | - | 2.00% | - | 3.40% |
| Average total remuneration and % change vs previous year, based on USD amounts | 133,656 | 7.00% | 123,626 | -7.50% | 115,137 | -6.90% | 135,597 | 17.80% | 144,868 | 6.84% |
| Change in average total remuneration vs previous year, based on NOK amounts | - | 5.30% | - | 0.20% | - | -0.90% | - | 8.10% | - | 19.2% |
| General salary increase frame | - | 2.90% | - | 3.50% | - | 0.80% | - | 3.50% | - | 4.90% |
| General bonus % | - | 8.50% | - | 4.50% | - | 3.50% | - | 10.50% | - | 9.30% |
| AVP % range from manager to SVP pre and post company performance modifier and threshold | 11.25% - 17.5% | 16.88% - 26.25% | 11.25% - 17.5% | 9.34% - 14.53% | 11.25% - 17.5% | 7.48% - 11.64% | 11.25% - 17.5% | 16.88% - 26.25% | 11.25% - 17.50% | 14.96% - 23.28% |

Notes to the table “Average remuneration on a full-time equivalent basis of employees”:

- Offshore workers with 2-4 schedule reported as FTE 100%
- Annual salary increase is affected by the NOK/USD exchange rate
- Holiday and bonus pay are included for the year of accrual
- Annual total remuneration increase is affected by bonus and any bonus shares from the SSP or LTI
- Overtime allowance is not included. Pension is included as of 2022

## 6 Statement by the board of directors on the remuneration report

43

The board of directors has today considered and approved the remuneration report of Equinor for the financial year 1 January - 31 December 2022.

The remuneration report has been prepared in accordance with Norwegian Public Limited Liability Companies Act, section 6-16b and regulation 2020-12-11-2730 and the Norwegian Accounting Act section 7-31b.

In our opinion, the remuneration report is in accordance with the remuneration policy adopted at the annual general meeting, and is free from material misstatement and omissions, whether due to fraud or error.

The remuneration report will be presented for an advisory vote at the annual general meeting.

Oslo, 19 March 2023

The Board of directors of Equinor

Jon Erik Reinhardsen, Chair

Anne Drinkwater, Deputy-chair

Bjørn Tore Godal

Hilde Møllerstad

Per Martin Labråthen

Tove Andersen

Rebekka Glasser Herlofsen

Finn Bjørn Ruyter

Stig Lægreid

Jonathan Lewis

Michael D. Lewis

44

# 7 Independent auditor's statement on the remuneration report

[Removed from Exhibit 15.6 as it does not form part of Equinor's Annual Report on Form 20-F as filed with the SEC.]

45

## 8 Appendix: Executive remuneration policy 2021

### 8.1 Remuneration to the board of directors

| Approach to setting fees | Basis of fees | Other items |
| --- | --- | --- |
| The remuneration to the board and its committees is decided by the corporate assembly, based on a recommendation from the nomination committee. | The board members have an annual, fixed remuneration, except for deputy members (only elected for employee-elected board members) who receive remuneration per meeting attended. Separate rates are set for the board's chair, deputy chair and other members. Separate rates are also adopted for the board's committees, with similar differentiation between the chair and the other members of each committee. The employee-elected members of the board receive the same remuneration as the shareholder-elected members. The board receives its remuneration by cash payment. | The board members from outside Scandinavia and outside Europe, respectively, receive separate travel allowances for each meeting attended. Remuneration for board membership is not linked to performance and no share or option programmes or similar structures are in place. Employee-elected board members may participate in variable pay, pension and benefit programs according to their location and grade in line with other employees. None of the shareholder-elected board members have a pension scheme or agreement concerning pay after termination of their office with the company. If shareholder-elected members of the board and/or companies they are associated with should take on specific assignments for Equinor in addition to their board membership, this will be disclosed to the full board. |

### 8.2 Remuneration to the corporate assembly

| Approach to setting fees | Basis of fees |
| --- | --- |
| The remuneration to the corporate assembly is decided by the general meeting, based on a recommendation from the nomination committee | The members have an annual, fixed remuneration, except for deputy members who receive remuneration per meeting attended. Separate rates are set for the corporate assembly's chair, deputy chair and other members. The employee-elected members of the corporate assembly receive the same remuneration as the shareholder-elected members. |

### 8.3 Remuneration to the CEC

The board of directors' complete remuneration policy and report for executive personnel follows.

#### Remuneration policy

The following guidelines for remuneration of Equinor' corporate executive committee proposed by the board of directors were approved by the 2021 annual general meeting, pursuant to the Norwegian Public Limited Liability Companies Act, section 6-16 a and supplementing regulations. The policy also includes compensation to members of the board of directors and the corporate assembly employed by the company, which is explained in the above section ' Remuneration to the board of

directors and corporate assembly'. The policy is subject to approval by the annual general meeting at every material change and, in any case, at least every fourth year.

Equinor's remuneration policy and terms are aligned with the company's overall strategy, values, people policy and performance-oriented framework. Our rewards and recognition for executives are designed to attract and retain the right people; people who are committed to deliver on our business strategy and able to adapt to a changing business

46

environment. Equinor's remuneration framework contributes to the business strategy, long-term interests and sustainability of the company.

A key role for the board of directors is to ensure that executive compensation is competitive, but not market leading, in the markets where we operate. The board is committed to ensuring that executive compensation is fair and aligned with our overall remuneration philosophy and compensation levels in the company, and in line with shareholders' interests.

The remuneration policy is an integrated part of our values-based performance framework. It has been designed to:

- • Contribute to the business strategy, long-term interests and sustainability of the company
- • Strengthen the common interests of employees in the Equinor group and its shareholders
- • Reflect the company's overall performance and financial results
- • Be competitive and aligned with local markets
- • Equally reward and recognise 'What' we deliver and 'How' we deliver
- • Differentiate on the basis of responsibilities and performance
- • Be acknowledged as fair, transparent, consistent and non-discriminatory
- • Promote collaboration and teamwork
- • Fully align with our values and HSE standards
- • Promote continuous improvement and a sustainable cost level

## The decision-making process

The decision-making process for implementing or changing our remuneration policy, and the determination of salaries and other remuneration for the corporate executive committee, are in accordance with the provisions of the Norwegian public limited liability companies act sections 5-6 and 6-16 a and the board's rules of procedure. The board of director's rules of procedure are available at www.equinor.com/board.

The board of directors has appointed a designated compensation and executive development committee. The compensation and executive development committee is a preparatory body for the board of directors. The committee's main objective is to assist the board of directors in its work relating to the terms of employment for Equinor's chief executive officer and the main principles and strategy for the remuneration and leadership development of our senior executives. The board of directors determines the chief executive officer's salary and other terms of employment. The committee shall prepare a proposal for new guidelines at every material change and, in any case, every fourth year and submit it to the general meeting for resolution. The guidelines shall be in force until new guidelines have been adopted by the general meeting.

The compensation and executive development committee answers to the board of Equinor ASA for the performance of its duties. The work of the committee in no way alters the responsibilities of the board of directors or the individual board members.

For further details about the roles and responsibilities of the compensation and executive development committee, please refer to the committee's instructions available at www.equinor.com/compensationcommittee.

## Equinor purpose, vision and overall strategy

Equinor's purpose is turning natural resources into energy for people and progress for society, and our vision is to shape the future of energy. We are strongly committed to creating shareholder value and with a leading role in the energy transition towards a low-carbon future.

While our strategic pillars of 'always safe', 'high value' and 'low carbon' remain firm, we will further strengthen in the areas of a) an optimised oil & gas portfolio, b) a faster growing renewable business, c) expanding our low-carbon solutions business.

Within all areas, technology and innovation will be key accelerators to drive value and improved performance. We will use our strengths and experience within the oil & gas portfolio as a foundation for developing offshore wind at scale, establishing new value chains, and for developing new low carbon energy sources.

## Equinor's performance framework and the link to business strategy, long-term interests and sustainability of the company

Our performance framework translates the company vision, values and strategy into actions and results for the company, its units, teams and every leader and employee.

Performance is evaluated in two dimensions; 'What' we deliver and 'How' we deliver. This is the core of our values-based performance culture and means that delivery ('what') and behaviour ('how') are equally weighted when recognising and rewarding individual performance.

'What' we deliver (business delivery) is defined through the company's performance framework 'Ambition to Action', which addresses strategic objectives, key performance Indicators (KPIs) and actions across the five perspectives; Safety, Security and Sustainability, People and Organisation, Operations, Market and Finance. Generally, Equinor believes in setting ambitious targets to inspire and drive strong performance. Each year individual performance goals ('what') based on the company's 'Ambition to Action' are established for the CEO and the executive vice presidents.

The board decides annually a set of strategic objectives and KPIs that will form basis for the assessment of the business delivery dimension ('What'). These KPIs and related targets for the upcoming performance year shall be disclosed in the annual remuneration report. Examples of such KPIs are Serious Incident Frequency (SIF), CO2 intensity for the upstream portfolio, Levelised cost of energy (LCOE), Production efficiency (PE), Production based availability (PBA), Relative Total Shareholder Return (TSR), Relative ROACE, Improvement impact etc.

47

Goals on "How" we deliver are based on Equinor's core values and leadership principles and address the behaviour required and expected to achieve the delivery goals. We believe in developing a strong leadership and culture recognised by our values, driving the long-term and sustainable success of the company. The CEO and the executive vice presidents have individual behaviour goals within prioritised behaviour themes such as safety and compliance, empowerment, diversity and inclusion, collaboration and sustainability and climate.

Performance evaluation is holistic, involving both measurement and assessment. Significant changes in assumptions are taken into account, as well as target ambition levels, sustainability of delivered results and strategic contribution.

The balanced approach, which involves a broad set of goals defined in relation to both "What" and "How" dimensions and an overall performance evaluation, significantly reduces the likelihood that remuneration policies may incentivise excessive risk-taking or have other material adverse effects.

The remuneration concept for the corporate executive committee Equinor's remuneration for the corporate executive committee consists of the following core elements;

- Fixed remuneration: base salary and as applicable fixed salary addition
- Variable pay: annual variable pay (AVP) and long-term incentive (LTI)
- Benefits: primarily pension, insurance and share savings plan

The following table illustrate how the reward policy is translated into our key remuneration elements.

48 Equinor, Annual Report and Form 20-F 2021

## Main elements - Equinor executive remuneration

| Remuneration element | Objective | Award level | Performance criteria |
| --- | --- | --- | --- |
| Base salary | Attract and retain the right individuals by providing competitive but not market-leading terms. | We offer base salary levels which are aligned with and differentiated according to the individual's responsibility, performance and contribution to company's goals. The level is competitive in the markets in which we operate. | The base salary is normally subject to annual review based on an evaluation of the individual's performance and contribution to the company's goals. |
| Fixed salary addition | The fixed salary addition is paid in lieu of pension accrual above 12G, applied as a supplementing fixed remuneration element to be competitive in the market. | Members of the corporate executive committee employed by Equinor ASA prior to 1 September 2017, that have taken up their first position in the CEC after 13 February 2015, receive a fixed salary addition in lieu of pension accrual above 12G3 with reference to the section on pension and insurance scheme. | No performance criteria are linked to the fixed salary addition. The fixed salary addition is not pensionable and does not form basis for variable pay. |
| Annual variable pay (AVP) | Encourage our pay for performance culture and individual's contribution to the company's business strategy. Rewarding individuals for annual achievement of business objectives, both the 'What' and the 'How'. | Members of the corporate executive committee employed by Equinor ASA are from performance year 2022 entitled to annual variable pay ranging from 0 - 45% of their base salary. Target 4 value is 25%. For members of the CEC employed outside the Norwegian market, see section below on remuneration policy for international executives. The threshold principles and the company performance modifier are applied (see explanations below). The company reserves the right to recover all or part of the annual bonus, if performance data is subsequently proven to be misstated. | Performance is measured over one financial year and is based on the achievement of annual performance goals ('How' and 'What' to deliver), in order to create long-term and sustainable shareholder value. Assessment of goals defined in the individual's performance contract including objectives related to selected KPI's on the balanced scorecard constitute the basis for annual variable pay. |
| Long-term incentive (LTI) | Strengthen the alignment of top management and shareholders' long-term interests and sustainability of the company. Retention of key executives. | For members of the corporate executive committee employed by Equinor ASA, the LTI is calculated as a portion of the participant's base salary. On behalf of the participant, the company acquires shares equivalent to the net annual grant amount. The shares are subject to a three-year lock-in period and then released for the participant's disposal. If the lock-in obligations are not fulfilled, the executive has to pay back the gross value of the locked-in shares limited to the gross value of the grant amount. The level of the annual LTI reward for the CEC members employed by Equinor ASA is in the range of 25-30% of the base salary. For members of the CEC employed outside the Norwegian market, see section below on remuneration policy for international executives. The threshold principles are applied to the annual grant. The company performance modifier is not applied to the LTI in Equinor ASA. | In Equinor ASA, LTI participation and grant level are reflective of the level and impact of the position and company performance as reflected by the threshold. |
| Pension & insurance schemes | Provide competitive postemployment and other benefits. | The company offers a general occupational pension plan and insurance scheme aligned with local markets. Reference is made to the section on pension and insurance scheme. | N/A |
| Employee share savings programme (SSP) | Align and strengthen employee and shareholders' interests and remunerate for long term commitment and value creation. | Eligibility extends to all employees at Equinor and in all markets, subject to local legislation. Participants can purchase shares up to 5% of base salary. | With effect from 2022 share savings, bonus shares from the share saving programme will be awarded to the CEO and EVPs after a lock in period of 3 calendar years after the year of saving. |
| Other taxable and non-taxable benefits | Attract and retain the right individuals by providing competitive but not market-leading terms. | The members of the corporate executive committee have benefits in-kind such as company car and health checks. They are also eligible for participation in the share saving scheme as described above, and they take part in the general benefit and welfare program of the company. | N/A |

$^{3}$ G represents the basic amount of the Norwegian social security system. 1G per 31 December 2022 equals NOK 111 477..

$^{4}$ Target value reflects satisfactory deliveries according to agreed goals

49

### Remuneration policy for international executives

Equinor is a broad global energy company, developing oil, gas, wind and solar energy in around 30 countries. The company has high goals related to diversity and inclusion, and diversity at all levels including among top management is crucial in ensuring the long-term sustainable success of the company. From time to time the company will appoint executives employed in international markets with different framework for executive base pay, variable pay and benefits, than what is the case in the Norwegian market. To be able to hire international executives, the company needs to offer competitive compensation in the markets where it operates. The policy of being competitive but not market leading still remains.

In order to ensure Equinor's competitive position and attract talent in the international market, the board of directors has the mandate to exceed the levels for variable pay and pension terms described in the table above, for remuneration of executive vice presidents hired in the international market and the remuneration level will reflect the at any time prevailing and documented market level for the EVP position. The annual variable pay shall not exceed 50% of base salary at target (100% maximum) and the long-term incentive (LTI) annual grant shall be maximum 70% of base salary. The threshold for variable pay and the company performance modifier as described below will apply. For the international LTI a three years' average company performance modifier will be applied. Pension contribution will be in accordance with the local market, and the 12G cap on pension used in the Norwegian tax favored regime is not applicable for the international executives. Any decision on terms and conditions as described above will be included in the remuneration report subject to review and endorsement by the annual general meeting.

### Duration of contracts with executive vice presidents

Duration of contracts with the executive vice presidents are not limited to a certain period and are valid until the executive resigns from the position or enters into a new position in the company.

### Mobility

To support the company's need for a mobile workforce also at the senior executive level, the company's standard international assignment framework can be used for candidates employed in a different country than the location of the CEC role. International assignment for a CEC position will normally be limited to a three-year period.

### Localisation and relocation

If an executive is recruited to Equinor and employed on local terms and conditions different from the executive's country and market, the company may decide to cover reasonable relocation costs including housing and schooling within the international assignment framework for these elements for a period up to two years.

### Threshold for variable pay and company performance modifier

The threshold and company performance modifier are implemented to strengthen the link between the company's overall financial results and the individual variable pay.

### Threshold

The threshold is implemented for affordability reasons to ensure that no or reduced variable pay would be granted if the company's financial performance and position is weak and in a critical situation. The financial threshold is applicable for payment of annual variable pay and award of LTI grant.

The threshold has the following guiding parameters:

1) Cash flows provided by operating activities after tax and before working capital items
2) Net debt ratio and development
3) Company's overall operational and financial performance.

"Green zone"

Cash flows provided by operating activities after tax and before working capital items higher than USD 12 billion and a net debt ratio below 30% will normally guide for no reduction of bonus.

"Yellow zone"

Cash flows provided by operating activities after tax and before working capital items lower than USD 12 billion but higher than USD 8 billion and a net debt ratio between 30% and 45% will normally guide a reduction of bonus but not annulment.

"Red zone"

Cash flows provided by operating activities after tax and before working capital items lower than USD 8 billion and a net debt ratio above 45% will normally guide no bonus.

Application of the threshold is subject to a discretionary assessment of the company's overall performance by the board of directors. These measures and targets are indicative and will form part of a broader assessment of bonus award. The

50 Equinor, Annual Report and Form 20-F 2021

conclusion considers both achieved results and how these results are expected to impact the company's medium and long-term development and value creation.

#### **Company performance modifier**

Based on approval by the annual general meeting in 2016, a company performance modifier was introduced and has been applied in the calculation of variable pay.

The company performance will be assessed against two equally weighted measures: relative total shareholder return (TSR) and relative return on average capital employed (ROACE). TSR and ROACE are currently also applied as performance indicators in the corporate performance management system.

The results of these two performance measures are compared to our peers and determine Equinor's relative position. A position of Quartile 1 means that Equinor is amongst the top scoring quartile of peer companies. A position of Quartile 4 means that Equinor is in the bottom performing quartile. In years with strong deliveries on relative TSR and ROACE, the matrix will result in the variable pay being modified with a factor higher than one and, correspondingly, lower than one in weak years. The combination of ratings for both measures, will act as a 'multiplier' according to the guideline in the matrix displayed below.

![img-0.jpeg](img-0.jpeg)

By applying relative numbers, the effect of fluctuating oil price will be reduced.

Within the framework of 50 - 150%, the matrix is a guideline and the multiplier (percentages) may be adjusted if oil or gas price effects or other occurrences outside the control of the company are deemed to cause disproportionate results in a given year. Application of the modifier is subject to discretionary assessment based on the company's overall performance.

The company performance modifier will be used in calculations of annual variable pay for members of the corporate executive committee. The modifier will also be applied in other variable pay schemes below the corporate executive level. Further application of the company performance modifier will also be assessed and decided if deemed appropriate.

The annual variable pay for members of the corporate executive committee employed by Equinor ASA will be within a framework of 45% of base salary, irrespective of the result of the modifier.

#### **Pension and insurance schemes**

Members of the corporate executive committee in Equinor ASA are covered by the company's general occupational pension scheme which is a defined contribution scheme with a contribution level of 7% below 7.1 G and 22% above 7.1 G. A defined benefit scheme is retained by a grandfathered group of employees. For new members of the corporate executive committee appointed after 13 February 2015, a cap on pension contribution at 12 G is applied. In lieu of pension accrual above 12 G a fixed salary addition of 18% is provided. This element does not form basis of calculation of AVP and LTI. The 12 G cap is based on the Norwegian tax favoured occupational pension schemes and will not be applied to the pension schemes of executives employed outside Norway.

51

Members of the corporate executive committee employed in Equinor ASA and appointed before 13 February 2015, maintain their pension contribution above 12 G based on obligations in previously established agreements.

Pension terms that historically have been individually agreed with elements outside the framework above will be described in the annual remuneration report.

Equinor ASA has implemented a general cap on pensionable income at 12 G for all new hires into the company employed as of 1 September 2017.

In addition to the pension benefits outlined above, the executive vice presidents in the parent company are offered disability and dependents' benefits in accordance with Equinor's general pension plan/defined benefit plan. Members of the corporate executive committee are covered by the general insurance schemes applicable within Equinor.

#### **Severance pay arrangements**

The chief executive officer and the executive vice presidents are entitled to a severance payment equivalent to six months' salary, commencing after the six months' notice period, when the resignation is requested by the company. The same amount of severance payment is also payable if the parties agree that the employment should be discontinued, and the individual gives notice pursuant to a written agreement with the company. Any other payment earned by the individual during the period of severance payment will be fully deducted. This relates to earnings from any employment or business activity where the individual has active ownership.

The entitlement to severance payment is conditional on the chief executive officer or the executive vice president not being guilty of gross misconduct, gross negligence, disloyalty or other material breach of his/her duties.

The chief executive officer's/executive vice president's own notice will not instigate any severance payment.

Release of earned LTI grants and bonus shares at end of employment

If termination of employment is based on a mutual agreement between the executive and Equinor, the company may decide to release locked in LTI shares and award already earned bonus shares in the share savings scheme at the end of employment.

Salary and employment conditions of other employees

Salary and employment conditions of employees of the company have been taken into account when establishing the remuneration policy. The remuneration and employment framework for the members of the executive committee are based on the same main principles as applicable for the remuneration frameworks for senior leaders in the company in general.

#### **Recruitment policy**

From time to time, Equinor may recruit executives from outside of the organisation. Our principles are designed to attract and retain the right individuals to ensure the successful implementation of our strategy and to safeguard our long-term interests.

If an individual forfeits remuneration as a result of recruitment to Equinor, the company can compensate partly or fully for the documented financial loss of unvested short and long-term incentive opportunity held by preferred external candidates. Such decision will take into consideration the vehicle, expected value and timing of forfeited awards. Any buy-out will be limited to one year's base salary and normally paid over a period of 24 months.

52 Equinor, Annual Report and Form 20-F 2021

4867-8232-6291 v.1.1

#### LIST OF GUARANTOR SUBSIDIARIES
Equinor Energy AS, a company existing under the Norwegian Private Limited

Liability Companies Act and a wholly owned subsidiary of Equinor ASA, has

guaranteed or is a co-obligor for the following unsecured debt securities.

● USD 300,000,000 7.75% Debentures due 2023

● USD 900,000,000 2.650% Notes due 2024

● USD 1,000,000,000 3.700% Notes due 2024

● USD 500,000,000 3.250% Notes due 2024

● USD 250,000,000 7.15% Debentures due 2025

● USD 1,250,000,000 2.875% Notes due 2025

● USD 750,000,000 1.750% Notes due 2026

● USD 480,512,000 7.250% Debentures due 2027

● USD 15,588,000 7.250% Debentures due 2027

● USD 500,000,000 3.000% Notes due 2027

● USD 1,000,000,000 3.625% Notes due 2028

● USD 250,000,000 6.800% Debentures due 2028

● USD 275,000,000 7.150% Debentures due 2029

● USD 1,500,000,000 3.125% Notes due 2030

● USD 750,000,000 2.375% Notes due 2030

● USD 750,000,000 5.100% Notes due 2040

● USD 500,000,000 3.625% Notes due 2040

● USD 350,000,000 4.250% Notes due 2041

● USD 300,000,000 4.250% Notes due 2041

● USD 850,000,000 3.950% Notes due 2043

● USD 750,000,000 4.800% Notes due 2043

● USD 1,000,000,000 3.250% Notes due 2049

● USD 1,250,000,000 3.700% Notes due 2050

### Attached PDF Documents

**Attachment 1:** `eqnr20221231.pdf`

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

2022 Integrated
Annual Report

2 We are Equinor

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

![img-2.jpeg](img-2.jpeg)

Processing plant at Kårsla,
Rogaland, Norway.

# We are Equinor

Our ambition is to be a
leading company in the
energy transition. We aim
to create value through the
opportunities the energy
transition brings, breaking new
industrial ground by building
on our 50 years of experience.

We energise the lives
of 170 million people.

Every day.

Equinor 2022 Integrated annual report

3 Key figures

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# Key figures 2022

Equinor is an energy company, the largest oil and gas operator in Norway, one of the world's largest offshore operators, and a growing force in renewables and low carbon solutions. Present in around 30 countries with approximately 22,000 employees, we provide reliable energy for societies worldwide and aim to be a leading company in the energy transition with the ambition to become a net-zero company by 2050.

| (in USD million) | 2022 | 2021 |
| --- | --- | --- |
| Total revenues and other income | 150,806 | 90,924 |
| Net operating income | 78,811 | 33,663 |
| Net income | 28,744 | 8,576 |
| Effective tax rate | 63.4% | 72.8% |
| Adjusted earnings* | 74,940 | 33,486 |
| Adjusted earnings after tax* | 22,691 | 10,042 |
| Free cash flow before capital distribution (in USD billion)* | 32.1 | 27.1 |
| Return on capital employed, adjusted* | 55.2% | 22.7% |

* For items marked with an asterisk throughout this report, see section 5.8 Use and reconciliation of non-GAAP financial measures.

21,936

Employees across
around 30 countries

0.4

SIF - serious incident frequency
(per million hours worked)

2.5

TRIF - total recordable
incident frequency
(per million hours worked)

USD 52.2 billion

Current income tax
expense

1,649 GWh

Renewable power
generation,
Equinor share

Always safe,
high value,
low carbon

USD 13.7 billion

Capital distribution
including dividends
and share buy-backs

2,661 GWh

Total power generation,
Equinor share

+8%

Gas production from the NCS.
Gas production increased
in response to the energy
security crisis in Europe

2,039 mboe/d

Oil and gas equity
production

6.9

CO2 intensity for the upstream
oil and gas portfolio (operated
100%, kg CO2 per boe)

Equinor 2022 Integrated annual report

4 Key figures

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# Key figures - segment performance

| Financial information | E&P Norway |  | E&P International |  | E&P USA |  | Financial information | Marketing, midstream and processing |  | Renewables |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |  | 2022 | 2021 | 2022 | 2021 |
| Total revenue and other income | 75,930 | 39,386 | 7,431 | 5,566 | 5,523 | 4,149 | Total revenue and other income | 148,105 | 87,393 | 185 | 1,411 |
| Total operating expenses | 8,315 | 8,915 | 4,183 | 5,237 | 1,501 | 2,998 | Total operating expenses | 144,493 | 86,230 | 269 | 166 |
| Net operating income | 67,614 | 30,471 | 3,248 | 329 | 4,022 | 1,150 | Net operating income | 3,612 | 1,163 | (84) | 1,245 |
| Adjusted earnings/(loss)* | 66,260 | 29,099 | 3,806 | 2,028 | 2,957 | 1,297 | Adjusted earnings/(loss)* | 2,253 | 1,424 | (184) | (136) |
| Additions to PP&E, intangibles and equity accounted investments | 4,922 | 4,943 | 2,623 | 1,834 | 764 | 690 | Additions to PP&E, intangibles and equity accounted investments | 1,212 | 517 | 298 | 458 |
| Operational information | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | Operational information | 2022 | 2021 | 2022 | 2021 |
| E&P equity liquid and gas production (mboe/day) | 1,387 | 1,364 | 328 | 342 | 324 | 373 | Liquids sales volumes (mmbbl) | 740.1 | 758.4 |  |  |
| E&P entitlement liquid and gas production (mboe/day) | 1,387 | 1,364 | 235 | 246 | 279 | 321 | Natural gas sales Equinor (bcm) | 63.3 | 61.0 |  |  |
| Average liquids price (USD/bbl) | 97.5 | 67.6 | 92.0 | 67.6 | 81.0 | 58.3 | Natural gas entitlement sales Equinor (bcm) | 56.1 | 54.0 |  |  |
| Average internal gas price (USD/mmbbl) | 31.22 | 14.43 |  |  | 5.55 | 2.89 | Power generation (GWh) Equinor share | 1,012 |  | 1,641 | 1,562 |

Hywind Scotland floating offshore wind farm, UK.

Equinor 2022 integrated annual report

5 Message from the chair and CEO

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# Message from the chair and CEO

Equinor's purpose is turning natural resources into energy for people, and progress for society. 2022 was a year that demonstrated how important and valuable energy is to society. The invasion of Ukraine and Russia's weaponisation of energy brought a deep crisis to a system already in imbalance. It became apparent that security of supply in Europe rests on reliable access to natural gas. The war continues to impact society and peoples' lives. As part of an aligned response to the invasion, Equinor decided on 27 February 2022 to exit Russia.

During last year, the effects of global climate change proved the strong need to act on the goals in the Paris agreement. The energy sector must innovate to cut emissions and create low-carbon energy systems. We must accelerate investments in renewables, energy efficiency, and in low-carbon solutions to decarbonise industry and society. But to safeguard a just and inclusive change of the energy system, we must secure access to affordable and reliable energy. In this context, Equinor is well positioned, as we focus on providing the energy the world needs while reducing emissions from our own operations and investing in the necessary systemic change towards net zero.

Geopolitical developments call for a balanced energy transition. More investments in energy production and infrastructure are needed to reduce the cost of energy, and security of supply and decarbonisation of the sector will be required. Enabling such a transition calls for longevity and stability of frame conditions. Even

within the most ambitious goals of the Paris agreement and the net-zero scenario of the International Energy Agency, there will still be a need for oil and gas in the 2050 energy mix. A substantial part of the remaining demand will stem from the need for feedstock for industry and consumer goods to a global population of around 10 billion people. Low-carbon hydrogen produced from gas has the potential to become an important source of energy in the future. Equinor's Energy transition plan, supported by 97.5 percent of our shareholders at the annual general meeting in May 2022, outlines how Equinor will aim to deliver on its ambition to reach net zero by 2050.

In 2022, when it was more important than ever, people working for Equinor stepped up to deliver safe, secure, and reliable production with low emissions. The serious incident frequency for the company in 2022 was 0.4 per million hours worked, a slight improvement from the previous year, and the lowest frequency ever recorded. We progressed our emissions reduction (scope 1 and 2) by reaching a decline of 31 percent since 2015, taking us towards our ambition of net 50 percent reduction by 2030. In 2022, we also signed the world's first commercial agreement on cross-border CO$_{2}$ transportation and storage together with the joint venture partners in the Northern Lights project.

During the year, we have reached key milestones to deliver on our strategy through strong project execution. Johan Sverdrup phase 2 on the Norwegian continental shelf started production, adding barrels to

![img-3.jpeg](img-3.jpeg)

Chair Jon Erik Reinhardsen

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AND OUR STRATEGY

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ADDITIONAL
INFORMATION

a world-class oil field and making our portfolio even more robust. Peregrino phase 2 in Brazil came on stream in October, adding 250-300 million barrels while halving expected CO2 emissions per barrel over the field's remaining lifetime. We generated first power at Hywind Tampen, the world's first floating wind farm to power offshore oil and gas platforms. Further, we matured our renewables project portfolio, and won new offshore wind leases. We aim to emerge as a leading energy player in selected international markets.

Together with partners, suppliers, and authorities, we managed to increase our gas supply to Europe by 8 percent compared to 2021. In total we produced around 2 million boe per day, and 2.7 terawatt hours of power. The CO2 intensity of our production ended at 6.9 kg CO2 per boe, far below the global average. Our unit production cost for oil and gas was USD 6 per barrel, confirming continued cost control. With cost inflation and continued supply chain disruption, we focus on maintaining cost competitiveness through the cycles.

Against the backdrop of the energy crisis in Europe natural gas prices rose to levels previously unseen. Our performance and focus on high production and stable delivery of oil and gas throughout the year resulted in high net operating income of USD 79 billion. This enabled us to maintain competitive shareholder returns, increasing the dividends and share buybacks during the year. At the capital markets update in February 2023, we announced a step-up in the capital distribution. We proposed a 50 percent increase in the ordinary cash dividend for the fourth quarter, to 30 cents per share. In combination with extraordinary dividend and

share buy-back, we expect a total distribution in 2023 of USD 17 billion. In 2022, Equinor also contributed with USD 42.8 billion in taxes from operations on the Norwegian continental shelf. After costs, taxes, and capital distribution our free cash flow ended at USD 23.4 billion.

Equinor's strong performance and results put the company in a robust financial position. We continue to optimise the oil and gas portfolio, accelerate renewables, and develop low-carbon solutions to deliver on our strategy. The strong cash flow from our oil and gas business together with our robust balance sheet enable us to continue investing and innovating. We aim to develop and bundle energy services and products, build new value chains, and invest in infrastructure projects, while delivering healthy and competitive returns to our shareholders. With our gas reserves and existing infrastructure, we are uniquely positioned to develop low carbon value chains. In collaboration with governments, industry, and customers, we aim to build markets for hydrogen and carbon capture and storage to achieve necessary scale. Our strategy and portfolio of producing assets and projects position us well to be a leading company in the energy transition.

Equinor is in a strong position to create value in the energy transition, by providing affordable, low carbon and secure energy. In 2030 we aim to produce around 2 million barrels of oil and gas per day, and 35-60 TWh of power from renewables annually. In addition, we are developing capacity for energy storage through batteries and green hydrogen, as well as blue hydrogen and carbon transport and storage.

![img-4.jpeg](img-4.jpeg)

Platforms Gullfaks B and C seen from Gullfaks A, North Sea, Norway.

We would like to express appreciation of our employees' strong performance under extraordinary circumstances in 2022. We would also like to thank Equinor's shareholders for their continued investment, and our stakeholders for a strong commitment.

Jon Erik Reinhardsen, chair of the board
Anders Opedal, president and CEO

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INTRODUCTION

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ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# Contents

INTRODUCTION

We are Equinor 2
Key figures 3
Message from the chair and CEO 5
About the report 8
Equinor in 2022 9
Equinor's Energy transition plan 10

ABOUT EQUINOR
AND OUR STRATEGY

1.1 This is Equinor 14
1.2 Our History 15
1.3 Our Business 16
1.4 Equinor's market perspective 19
1.5 Equinor's strategy 21
1.6 Capital and liquidity management 25
1.7 Sustainability at Equinor 27
1.8 Governance and risk management 28
1.9 Our People - To get there Together 35
1.10 External relations 37

ENTERPRISE LEVEL
PERFORMANCE

Performance 2022 39
2.1 Always safe 43
2.1.1 Safe and secure operations 44
2.1.2 Protecting nature 49
2.1.3 Tackling inequality - Human rights 53
2.1.4 Tackling inequality - Diversity and inclusion 56
2.2 High value 61
Group analysis 61
2.2.1 Efficient and predictable operations 70
2.2.2 Profitable portfolio 73
2.2.3 Value creation for society 79
2.2.4 Integrity and anti-corruption 82
2.3 Low carbon 84
2.3.1 Net zero pathway 86
2.3.2 Emissions reductions 89

REPORTING SEGMENT
PERFORMANCE

Introduction to segmental reporting 94
3.1 Optimised oil and gas portfolio 95
3.1.1 Exploration & Production Norway 100
3.1.2 Exploration & Production International 109
3.1.3 Exploration & Production USA 116
3.2 High-value growth in renewables 119
3.3 Marketing, midstream and processing (MMP), incl new market opportunities in low carbon solutions 123
3.4 Corporate and other group 130

FINANCIAL
STATEMENTS

Consolidated financial statements 132
Consolidated statement of income 133
Consolidated statement of comprehensive income 134
Consolidated balance sheet 135
Consolidated statement of changes in equity 136
Consolidated statement of cash flows 137
Notes to the Consolidated financial statements 138
Parent company financial statements 205
Statement of income 206
Equinor ASA 207
Statement of comprehensive income 208
Equinor ASA 209
Balance sheet Equinor ASA 208
Statement of cash flows 209
Equinor ASA 210
Notes to the Financial statements Equinor ASA 210

ADDITIONAL
INFORMATION

5.1 Board statement on corporate governance 236
5.2 Risk factors 245
5.3 Shareholder information 250
5.4 EU Taxonomy for sustainable activities 253
5.5 Production per field 263
5.6 Additional sustainability information 269
5.7 Statements on this report incl independent auditor reports 273
5.8 Use and reconciliation of non-GAAP financial measures 285
5.9 Terms and abbreviations 295
5.10 Forward-looking statements 301

Equinor 2022 Integrated annual report

8 About the report

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ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# About the report

## Equinor publishes an Integrated annual report for 2022

Equinor has for the full year of 2022 released an Integrated annual report, which combines financial and sustainability reporting into a single document. This integration acknowledges the increasing importance of sustainability issues to the company's operational and financial performance and is in accordance with the expectations of our stakeholders. Furthermore, this format aligns with external frameworks such as the Taskforce on Climate-related Financial Disclosure (TCFD) and upcoming requirements from the European Union (EU) under the Corporate Sustainability Reporting Directive (CSRD).

### This report presents the

- Board of director's report (Chapters 0-3 and Chapter 5 excluding sections 5.4, 5.6, 5.9, 5.10)
- Consolidated financial statements of the Equinor group (section 4.1)
- Parent company financial statements of Equinor ASA (section 4.2) according to the Norwegian Accounting Act of 1998
- Board statement on corporate governance according to The Norwegian Code of Practice for Corporate Governance (section 5.1)
- The company's sustainability reporting, prepared in accordance with the Global Reporting Initiative (GRI) Standards
- Communication on Progress to the UN Global Compact (advanced reporting level)

## Other 2022 Reporting published on equinor.com/reports

- Annual report on Form 20-F
- Remuneration report, incl. 2021 Remuneration policy
- Payments to governments
- Oil and gas reserves report
- Human rights statement
- GRI and WEF index
- UK modern slavery statement
- Equinor datahub (ESG reporting centre)

This document constitutes the Statutory annual report in accordance with Norwegian requirements for Equinor ASA for the year ended 31 December 2022. The Integrated annual report is filed with the Norwegian Register of company accounts. Further information on the boundary conditions for sustainability data can be found in section 5.6 Additional sustainability information.

This document should be read in conjunction with the cautionary statement in section 5.10 Forward-looking statements.

The Integrated annual report may be downloaded from Equinor's website at www.equinor.com/reports. References in this document or other documents to Equinor's website are included as an aid to their location and are not incorporated by reference into this document.

![img-5.jpeg](img-5.jpeg)

Equinor 2022 Integrated annual report

9 Equinor in 2022

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# Equinor in 2022

JANUARY

Equinor was awarded **26** new production licences on the Norwegian continental shelf (NCS), of which **12** as operator.

FEBRUARY

In response to the European security situation, Equinor stopped investments into Russia and started the process of exiting from our **Russian joint ventures**.

MARCH

We enabled **increased gas exports** to Europe with adjusted permits and postponed turnaround at **Oseberg**, allowing for high production through the summer months so storage could be replenished.

Together with bp, we signed an agreement to transform New York's **South Brooklyn Marine Terminal** into a hub for the region's offshore wind industry.

APRIL

We were awarded operatorships for the development of a new CO2 storage facility - **Smeaheia** in the North Sea, with capacity for 20 million tonnes of CO2 annually.

MAY

At the annual general meeting, the **Energy transition plan** received support from 97.5% of the voting shareholders.

We continue to optimise our portfolio. On the NCS Equinor divested its share of the **Ekofisk** field and a share in **Martin Linge**.

Together with partners we submitted the plan for development and operation (PDO) of Hallen East, a subsea development for gas and condensate, tied back to the **Åsgard** field in the Norwegian Sea.

JUNE

After an extensive programme of repairs and improvements, **Hammerfest LNG** was brought back into production.

Together with SSE Thermal, Equinor acquired **Triton Power** in the UK. Its key asset, the **Saltend power station**, is planned to be converted to run on hydrogen in the future.

JULY

To broaden our energy offering in the US, we acquired the US battery storage developer **East Point Energy LLC**.

In Brazil, **Peregrino** resumed production after having suspended operations since 2020.

Together with our partners on the Troll and Oseberg fields, we began work on the **Trollwind concept** - a 1GW floating windfarm to provide energy for the offshore fields via an onshore connection.

AUGUST

**Northern Lights**, a joint venture owned by Equinor, Shell and TotalEnergies, signed the world's first commercial agreement on cross-border CO2 transportation and storage.

SEPTEMBER

Equinor celebrated its **50th anniversary**, and two books about the company's history were published.

**Completed Equinor's exit from Russian joint ventures**, after our withdrawal from the Kharyaga project.

OCTOBER

In Brazil, **Peregrino phase 2** with the new platform C came on stream, which will extend the field life and reduce CO2 emissions per barrel.

A final investment decision was made on Equinor's first battery project, with the **Blandford battery storage** project in the UK.

NOVEMBER

We acquired the Danish solar developer **BeGreen**, in another step towards becoming a market-driven power producer.

Power production started at **Hywind Tampen**, the world's largest floating wind farm, which delivered the first power to the Gulliks A platform in the North Sea.

The PDO was submitted for Irpa, a field in the Norwegian Sea, which prolongs the life of the **Aasta Hansteen** field and enables us to provide more gas to Europe.

We postponed submittal of a PDO for the **Wisting** project until 2026, based on an overall assessment including the impact of global supply chain bottlenecks.

DECEMBER

Equinor secured a ~2 GW lease in the Morro Bay area of California for commercial-scale floating offshore wind energy development.

Along with Aker BP, we submitted the PDO for the unmanned **Kraflo** (now **Munin**) platform, around 35km south of the Oseberg oil field in the central North Sea.

We also submitted the PDO for **Verdande**, a subsea development that secures important oil volumes for the Norse production vessel in the Norwegian sea.

Production started from **Johan Sverdrup phase 2**, which will increase plateau production from the entire field to 755,000 barrels per day.

Production resumed at the **Njord** field following an upgrade project that will extend its lifespan by 20 years.

PDO was submitted for **Snøhvit Future**, a project to maintain high gas exports from Hammerfest LNG beyond 2030 and reduce emissions from production.

Equinor 2022 Integrated annual report

10 Equinor's Energy transition plan

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# Equinor's Energy transition plan

## Progress on our Energy transition plan in 2022

Equinor is making progress on the Energy transition plan that was launched in May 2022. We moved in a positive direction across each of the three main dimensions of the plan: reduction in our operated emissions; allocation of capex share to investments in renewables and low-carbon solutions (gross capex); and reduction in the carbon intensity of energy we provide. We also took steps to operationalise our commitment to a just and inclusive transition, and to implement our biodiversity position.

### Reduction in our operated emissions

Our ambition is to reduce emissions from our own operations by net 50% by 2030 compared to 2015 levels. We aim for at least 90% of this ambition to be realised by absolute reductions. In 2022, we made significant progress towards this ambition. Our total scope 1 and 2 operated greenhouse gas (GHG) emissions for 2022 were 11.4 million tonnes CO2e, compared to 12.1 million tonnes CO2e in 2021. In total, our operated emissions are now 31% lower than in 2015, the baseline year.

We continued our industry leading performance on CO2 intensity and methane. Equinor's upstream CO2 intensity was 6.9kg CO2/boe in 2022. This is an improvement from 7.0kg CO2/boe in 2021, well below the target of 8.0kg CO2/boe in 2025, and on track.

## Progress on the Energy transition plan

![img-6.jpeg](img-6.jpeg)

1Baseline year 2015
2Baseline year 2019

Equinor 2022 Integrated annual report

11 Equinor's Energy transition plan

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ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

towards the ambition of 6kg CO2/boe in 2030. The average methane intensity of our operated assets in 2022 remained unchanged from the 2021 level at 0.02% - around one tenth of the OGC (Oil and Gas Climate Initiative) industry average of 0.2%.

Capex share to transition investments

Equinor's ambition is to allocate more than 50% of our annual gross capex* to renewables and low carbon solutions by 2030 and more than 30% in 2025. In 2022 we invested 14% of our gross capex* into these areas, which is an increase of 3% compared to 2021.

Progress towards net zero

Our ambition is to reduce the net carbon intensity (NCI) of the energy we provide by 20% by 2030. This ambition includes scope 3 emissions from the use of our products. In 2022, we saw a slight decrease in NCI due to two factors: an increase in the ratio of gas to oil in our production portfolio as well as a slight decrease in overall oil and gas production. The NCI of the energy we provided in 2022 was 66.5g CO2/MJ, which is 1% lower than in 2021 and a 2% decrease relative to the 2019 baseline year. The 2% reduction in NCI from the 2019 baseline is in line with expectations. As deployment of renewable and CCS accelerates in the coming years, we expect to see greater progress in NCI reductions, with the majority of progress towards the 20% reduction ambition by 2030 expected in the second half of this decade. Lower overall oil and gas production resulted in a year-on-year decrease in absolute scope 3 emissions from 249 million tonnes in 2021 to 243 million tonnes in 2022.

2022 status and performance

|  | OIL AND GAS | RENEWABLES | LOW CARBON SOLUTIONS |
| --- | --- | --- | --- |
| STATUS 2022 | Production: 2039 mboeday 53+2 emissions: 11.4 million tonnes CO2 Upstream CO2 intensity: 6.9 kg CO2/boe Methane intensity: 0.02% Emission reduction measures: 0.6 million tonnes | Installed capacity equity share: 0.6 GW Energy production: 1.649 GWh | CO2 storage: 0.5 million tonnes |
|  |  | 14% annual gross capex* to renewables and low carbon solutions |  |
| PERFORMANCE 2022 | Start up of Johan Sverdrup Phase 2 & Peregrino Phase 2 Start up of gas import project to reduce emissions at Peregrino First power from Hywind Tampen floating wind farm to Gulfstream A Installation of heat recovery unit at Stafford B Development plans submitted for Irpa gas field teback and Munn field with power from shore Hammerfest LNG brought back into production Electrification plan submitted for Njord A field and Njord Bravia FSO Snahit Future plan submitted for electrification of Hammerfest LNG and Snahit onshore compression Exited Russia joint ventures | First power production at Hywind Tampen floating wind farm Acquired US-based battery storage company East Point Energy Installed first foundation at Dogger Bank, the world's largest offshore wind farm Completed construction of Stepien, a 58 MW solar power plant in Poland Signed agreement to buy BeGreen, a leading solar developer Won first auction for floating wind project in California Started construction at Mendulum, a 531 MW solar project in Brazil | Awarded operations for Smeehina CO2 storage licence Awarded licences by UK government to store CO2 under the UK North Sea Agreed with Fluvys and Wintershall to develop major CO2 infrastructure transport projects Signed the world's first commercial deal for cross border CO2 transport H2H Saitland wins UK government support to progress to next round Signed agreement with Centrica to explore development of hydrogen hub in eastern UK MOU with Verdane on BECCS value chain Launched project with VNG to cooperate on hydrogen ammonia and CCS |
| MEDIUM TERM AMBITIONS | Net 50% scope 182 GHG emissions reduction by 2030 Upstream CO2 intensity: 6kg CO2/boe by 2025 -6 kg CO2/boe by 2030 | 12-16 GW installed capacity by 2030 | CO2 transport and storage capacity: 5-10 million tonnes annually by 2030 15-30 million tonnes annually by 2035 Reduce maritime emissions by 50% in Norway by 2030 Supply hydrogen to 3-5 major industrial clusters by 2035 |
|  |  | 50% annual gross capex* - 50% R&D expenditure, 100% venture capex* towards renewables and low carbon solutions by 2025 |  |
|  |  | 50% annual gross capex* to renewables and low carbon solutions by 2030 |  |

Equinor 2022 Integrated annual report

12 Equinor's Energy transition plan

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

The changed energy security situation in Europe has resulted in both positive and negative drivers for Equinor's energy transition. Increased demand for oil and, particularly, natural gas has highlighted the need for continued production of and investment in hydrocarbons, while increased policy support for renewables and low-carbon solutions are likely to accelerate their deployment in both Europe and the US. Equinor's ability to deliver on its transition ambitions and its net 2050 ambition will continue to be dependent on enabling policy and regulatory frameworks.

#### Just transition for people and net-positive impact for nature

We recognise that a successful energy transition must take into account its impact on people and nature. In 2022, we launched our Just transition approach, which lays out five foundational principles to enable us to have a positive impact on the societies in which we operate, including: respect for human rights; transparency in our financial reporting and advocacy; preparing our workforce for the future; enabling sustainable supply chains; and bringing resilience to local communities. Examples of how we work to promote a just energy transition in practice can be found on equinor.com. In addition, we continued to implement our biodiversity position, going beyond the do-no-harm principle to contributing to net-positive impact, and to promote and engage on biodiversity and nature across internal and external initiatives.

#### Oil and gas

Equinor's oil and gas production was 2,039 thousand barrels of oil equivalent per day (mboe/d) in 2022, a marginal decrease compared to 2,079 mboe/d in 2021. The main drivers of our 6% reduction in operated scope

1 and 2 emissions were a combination of operational and portfolio measures including: divestment of our Kalundborg refinery and Bakken asset; modifications and emissions reduction initiatives at our onshore plants at Mongstad and Kårstæ; and a change in strategy at several of our NCS assets from gas injection to gas exports to maximise supplies to Europe.

While the resumption of production from the Peregrino asset added emissions to our operated portfolio in 2022 relative to 2021, the implementation of a gas import solution for Peregrino in September 2022 will have the upstream carbon intensity of the asset and avoid around 100,000 tonnes of CO2 emissions per year. Meanwhile, Hywind Tampen, the world's first floating wind farm to supply power to offshore oil and gas platforms, represents an innovative step forward, and is set to reduce CO2 emissions by 200,000 tonnes a year when the project is fully operational in 2023.

In 2022, Equinor also submitted development plans for several large abatement projects, including Snøhvit Future, which is intended to electrify the Hammerfest LNG facility and provide electric compressors for the Snøhvit gas and condensate field, delivering an estimated CO2 reduction of 850,000 tonnes per year; and Njord A electrification, which will result in a reduction of 130,000 tonnes per year. As outlined in our Energy transition plan, rapid reductions in operated emissions from oil and gas in Norway depend on the availability of, and access to, low-carbon electricity supplies as well as enabling permitting and fiscal regimes.

#### Renewables

In 2022, Equinor's installed renewable capacity was 0.6 GW (equity share) and renewable energy production

![img-0.jpeg](img-0.jpeg)

Hammerfest processing plant for LNG at Melkøya, Hammerfest, Norway.

was 1,649 GWh, an increase on both metrics compared to 0.5 GW and 1,562 GWh in 2021. We saw the first foundations being laid at the Dagger Bank offshore wind farm in the UK and completed the Steppie's solar project in Poland. In addition, Equinor was selected as a provisional winner of a lease area on the California Pacific outer continental shelf, one of the world's most attractive growth regions for offshore wind, and we acquired BeGreen, a Danish solar developer with a strong project pipeline.

#### Low carbon solutions

In 2022, Equinor stored 0.5 million tonnes of CO2, increased from 0.3 million tonnes in 2021. Accumulated, Equinor has stored 26.3 million tonnes of CO2 since 1996.

For our low-carbon solutions business, 2022 was a year of continued progress in developing the value chains that will enable hydrogen and carbon capture and storage (CCS) to be key enablers in the transition. We announced the world's first commercial agreement on cross-border CO2 transportation and storage between the Northern Lights partnership and the fertiliser company Yara. We were also awarded new operatorship for the Smeaheia CO2 storage site in Norway. CO2 storage licences in the UK, and continued UK government support for our pioneering H2H Saltend low-carbon hydrogen project.

Equinor 2022 Integrated annual report

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INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# 1 About Equinor
and our strategy

![img-1.jpeg](img-1.jpeg)

Equinor 2022, marketed annual report

1.1 This is Equinor 14
1.2 Our History 15
1.3 Our Business 16
1.4 Equinor's market perspective 19
1.5 Equinor's strategy 21
1.6 Capital and liquidity management 25
1.7 Sustainability at Equinor 27
1.8 Governance and risk management 28
1.9 Our People - To get there. Together 35
1.10 External relations 37

Processing plant at Kårsta,
Rogaland, Norway.

14 11 This is Equinor

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# 1.1 This is Equinor

We are an international energy company headquartered in Norway, with 22,000 employees in around 30 countries. Our purpose is to turn natural resources into energy for people, and progress for society. Our values - open, courageous, collaborative and caring - guide our decisions and how we engage with each other, our partners, and the societies in which we operate.

We are the largest supplier of energy to Europe, a world-leading offshore operator, the largest oil and gas operator in Norway, and an international pioneer in renewables and low-carbon solutions. Today, in an increasingly unpredictable world, our deliveries of oil, gas and wind power provide a vital and stabilising contribution to Europe's energy security, both in the short and long term.

We support the United Nations' (UN) sustainable development goals (SDGs) and the importance of contributing to resolving the world's energy trilemma of security, affordability, and climate change. We support the Paris agreement and aim to become a net-zero company by 2050. We combine industrial strength with innovative thinking, expertise, and collaboration, enabling us to play a meaningful role in the global energy transition.

Our Energy transition plan was approved by the annual general meeting (AGM) in May 2022. It charts our course towards achieving our net zero ambition through short-term actions and medium-term

ambitions, showing that we have the strategy, ambition, capabilities, and track record to achieve them.

We are publishing our first integrated annual report, combining financial and sustainability (ESG) reporting. The AGM also endorsed an amendment to our objective clause to reflect our direction as a broad energy company.

Alongside our net zero ambition, we will remain a reliable energy supplier and ensure long-term value creation for our shareholders. We have access to key suppliers, markets, systems, technology, and policymakers. For decades, we have played a unique role in shaping energy systems across Europe through partnerships with governments, society, and businesses.

Our vision - shaping the future of energy - sets a clear direction. Future energy systems must differ substantially from current systems, and the energy industry has the expertise and resources to change them.

Our oil and gas production emissions are already among the lowest in the industry. By 2030, our ambition is to reduce CO2 emissions from our own oil and gas operations by 50% from the reference year 2015, as well as allocate more than 50% of annual gross investments to renewables and low-carbon solutions.

To transform the energy system, we must make substantial investments - and quickly - in new solutions.

We have defined four key areas in which we are well qualified to succeed and set clear ambitions:

- Oil and gas: Decarbonise and maintain value creation
- Offshore wind: Industrialise and upscale
- Carbon capture and storage (CCS): Industrialise and commercialise
- Hydrogen: Scale up production and develop new value chains

There are clear synergies between our expertise from existing onshore operations and a future CCS and hydrogen portfolio. The extent of our engagement is demonstrated by our proactive participation in Northern Lights, Norway Energy Hub, Clean Hydrogen to Europe (CHE), H2H (Hydrogen to Humber), Saltend, Hywind Tampen and Snøhvit future.

Even in the most optimistic future scenarios for the energy transition, the world will remain dependent on oil and gas for energy and petrochemicals for decades to come. Therefore, it is important that the hydrocarbon resources produced are produced with the lowest carbon footprint possible.

In the years ahead, we will develop new value chains with suppliers, customers and authorities. We believe that industrial scale, innovation and technology development hold the key to the energy transition. However, the scale of the task means that achieving it will depend on the foresight and wisdom of leaders, policymakers, science and industry combined.

![img-2.jpeg](img-2.jpeg)

Processing plant at Kårstø, Rogaland, Norway

Equinor 2022 Integrated annual report

15 1.2 Our History

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# 1.2 Our History

## 18 SEPTEMBER 1972

Equinor, formerly Statoil, was formed by a decision of the Norwegian parliament and incorporated as a limited liability company under the name Den norske stats oljeselskap AS. At the time owned 100% by the Norwegian State, Equinor's initial role was to be the government's commercial instrument in the development of the oil and gas industry in Norway. Growing in parallel with the Norwegian oil and gas industry, Equinor's operations were primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS).

## 1979 - 1981

The **Statfjord** field was discovered in the North Sea and commenced production. In 1981 Equinor, then called Statoil, was the first Norwegian company to be given operatorship of a field, at **Gullfaks** in the North Sea.

## 1980S AND 1990S

Equinor grew substantially through the development of the NCS (Statfjord, Gullfaks, **Oseberg**, **Troll** and others). In the 1990s, Equinor started to grow internationally, becoming a major player in the European gas market by entering into large sales contracts for the development and operation of gas transport systems and terminals. During these decades, Equinor was also involved in manufacturing and marketing in Scandinavia and established a comprehensive network of service stations. This line of business was fully divested in 2012.

## 2001

Equinor was listed on the Oslo and New York stock exchanges and became a public limited company under the name Statoil ASA, now Equinor ASA, with a 67% majority stake owned by the Norwegian State.

## 2007 - 2017

Equinor's ability to fully realise the potential of the NCS and grow internationally was strengthened through the merger with Norsk Hydro's oil and gas division on 1 October 2007. Equinor's business grew as a result of substantial investments on the NCS and internationally. Equinor delivered the world's longest multiphase pipelines on the **Ormen Lange** and **Snehvit** gas fields, and the giant Ormen Lange development project was completed in 2007.

By 2007, Equinor had expanded into Algeria, Angola, Azerbaijan, Brazil, Nigeria, UK, and the US Gulf of Mexico, amongst others.

## 2017 - 2019

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. The name supports

the company's strategy and development as a broad energy company in addition to reflecting Equinor's evolution and identity as a company for the generations to come.

The **Johan Sverdrup** field came on stream in October 2019. It is powered by electricity from shore, making it one of the most carbon-efficient fields worldwide.

## 2020 - 2021

Equinor sets an ambition to be a leading company in the energy transition and to become a **net-zero company by 2050**, including

emissions from production to final energy consumption.

Equinor announced changes to the reporting segments, corporate structure and the corporate executive committee (CEC) to further strengthen its ability to deliver on the always safe, high value, low-carbon strategy. The changes will support improved value creation from Equinor's world-class oil and gas portfolio, accelerated profitable growth within renewables and the development of low-carbon solutions.

In January 2021, civil works began at the **Northern Lights**

development for carbon transport and storage. In June 2021, the final investment decision was made for the first phase of the development of the **Bacalhau** field. The **Martin Linge** field was brought on stream in June 2021, driven by electric power from shore. The third phase of the **Troll** field development came on stream in August 2021, producing from the Troll West gas cap. The electrification of **Troll West** is underway. In November 2021, the decision was made to develop the third phase of the **Dogger Bank** offshore windfarm. To meet growing demand, Equinor **scaled up gas production** from the NCS in 2021.

Shaping the **future** of energy

50

years experience offshore Oil & Gas

25

years experience from Carbon capture and storage

20

years since Hyland floating and concept

15

years since H2 hydrogen concept

5

years digital acceleration

2030

ambitions of 50% GHG emissions reduction (GVD) & +50% share of annual gross capex to renewables and low carbon solutions

2040

ambition to become hydrogen and CCS leader

2050

Aim to transform to a net-zero company

to enhance **competitive advantage** for the future

Equinor 2022 integrated annual report

16 1.3 Our Business

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# 1.3 Our Business

## A broad energy company

We are an international energy company committed to long-term value creation in a low-carbon future. Our portfolio of projects encompasses oil and gas, renewables, hydrogen and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050.

### Oil and gas

Equinor produces around two million barrels of oil equivalent daily and is responsible for about 70% of Norwegian oil and gas production. In 2022, Equinor's activity outside Norway accounted for around one-third of the company's total oil and gas production, and this is expected to increase. The Peregrino field in Brazil and the Mariner field in the UK are our largest operatorships outside Norway.

### Refining, processing and marketing

Our refinery, processing plants and terminals transform crude oil and natural gas into everyday commodities such as petrol, diesel, heating oil and consumer-ready natural gas. Transportation and marketing, and trading of our products maximise value creation. Most of our products are exported from Norway to continental Europe, but we also export to the UK, North America and Asia.

Equinor also markets and sells the Norwegian State's share of natural gas and crude produced on the NCS.

## Where we are

![img-3.jpeg](img-3.jpeg)

### Renewable energy

Equinor provides more than one million European homes with renewable power from offshore wind farms in the UK and Germany. We develop some of the world's largest offshore wind farms in Europe and the US and are in the process of building a solar portfolio through partnerships in energy farms in Argentina and Brazil and wholly owned subsidiaries in Denmark and Poland. By 2030, we aim to have grown our installed renewables capacity (equity-based) from 2022's 0.6 GW to 12-16 GW and produce 35-60 TWh annually.

### Carbon capture and storage

Equinor is pursuing new business models to make carbon capture and storage (CCS) viable. We have 25 years of operational experience from CCS, and more than 15 years of experience from technology development within large-scale hydrogen value chains including transport and CCS. Together with our joint venture partners we are developing the Northern Lights infrastructure for transportation and storage of CO$_{2}$. The project is part of the Norwegian government's project for full-scale carbon capture, transportation and storage in Norway.

Equinor 2022 Integrated annual report

17 1.3 Our Business

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

### Technology development

Equinor's strong ability to develop and apply new technologies and digital solutions constitutes a competitive advantage. Digital technology is a key enabler for us to develop into a leading company in the energy transition. Our ambition is to allocate 40% of our research and development capital towards renewables and low-carbon solutions by 2025.

### Equinor's competitive position

We are an energy pioneer with a focused strategy built on our offshore experience and technology leadership. Equinor's history and experience building the oil and gas industry in Norway from the 1970s still represent some of the most distinct competitive advantages for the company 50 years later. As an offshore pioneer and technology developer in Norway, with examples such as piped gas infrastructure network that started with Statpipe and revolutionary subsea technology development such as the world's first subsea gas compression plant on the Åsgard template.

The experience and learnings from industrial and technological developments in Norway and the NCS have been a catalyst for our assets and operations outside of Norway to ensure safer, more valuable, and lower emissions internationally. In addition to the industrial and technology DNA originating from the 1970s, we create value as an early mover and industry shaper. Examples such as CCS at the Sleipner field from the 1990s and testing the floating offshore wind concept in the Hywind demo in the late 2000s have contributed to our latest technology developments of Northern Lights and Hywind Tampen.

![img-4.jpeg](img-4.jpeg)

Landfall at Kolste, Rogaland, Norway.

Equinor 2022 Integrated annual report

18 1.3 Our Business

INTRODUCTION

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ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## How we are organised

Equinor's assets and operations are organised through the following business areas:

![img-5.jpeg](img-5.jpeg)

Equinor 2022 Integrated annual report

**Exploration & Production Norway (EPN)** explores for and extracts crude oil, natural gas and natural gas liquids in the North, Norwegian and Barents Seas. EPN aims to ensure safe and efficient operations and transform the NCS to deliver value for many decades. EPN is shaping the future of the NCS with a digital transformation and solutions to achieve a lower carbon footprint and high recovery rates.

**Exploration & Production International (EPI)** manages Equinor's worldwide upstream activities in all countries outside Norway. EPI operates across five continents, covering offshore and onshore exploration and extraction of crude oil, natural gas and natural gas liquids, and implements rigorous safety standards, technological innovations and environmental protection. EPI intends to build and grow a competitive international portfolio, including through partner-operated activities.

**Renewables (REN)** reflects Equinor's long-term goal to complement its oil and gas portfolio with profitable renewable energy. REN aims to achieve this by continuing to combine Equinor's oil and gas competence, project delivery capacities and ability to integrate technological solutions. REN is currently responsible for wind farms, solar as well as other forms of renewable energy and energy storage.

**Marketing, Midstream, & Processing (MMP)** works to maximise value creation in Equinor's global midstream and downstream positions. MMP is responsible for the global marketing and trading of crude, petroleum products, natural gas, electric power and green certificates, including marketing of the Norwegian State's natural gas and crude resources on the NCS. MMP is responsible for onshore plants and transportation in addition to the development of value chains to ensure flow assurance for Equinor's upstream production and to maximise value creation. Low-carbon solutions, such as carbon capture and storage and other low-carbon energy solutions, are also a part of MMP's responsibility.

**Projects, Drilling & Procurement (PDP)** is responsible for oil and gas field development and well delivery, development of wind power, CCS and hydrogen projects, and procurement in Equinor. PDP aims to deliver safe, secure and efficient project development and well construction, founded on world-class project execution and technology excellence. PDP utilises innovative technologies, digital solutions and carbon-efficient concepts to shape a competitive project portfolio at the forefront of the energy industry transformation. Value is being created together with suppliers through a simplified and standardised fit-for-purpose approach.

**Technology, Digital & Innovation (TDI)** is responsible for research and technology development within Equinor to further support the business. This includes identifying potential new businesses and value chains for Equinor.

19 1.4 Equinor's market perspective

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## 1.4 Equinor's market perspective

![img-6.jpeg](img-6.jpeg)

LNG tanker Arctic Voyager,
Melkaya, Hammerfest, Norway

### Market overview

At the start of 2022, the global economy remained dampened by Covid-19, and energy markets were already tight when Russia's invasion of Ukraine impacted heavily on global energy systems and Europe's security situation. The cessation of importing energy from Russia to Europe and an increased focus on energy security and affordability resulted in Equinor becoming the largest gas supplier to Europe in 2022.

Although the Russian and Ukrainian economies were small in a world context, they played an influential role in energy and commodity markets. Many European economies relied upon Russian energy and trade links, and rising prices suppressed economic activity, despite support schemes. The US economy was more sheltered from the fallout but is increasingly impacted by elevated inflation, rising interest rates and weaker global demand. The zero-Covid policy in China persisted for most of the year, hampering recovery in domestic activity.

As we enter 2023, the world economy is teetering on the brink of recession, with several regions facing periods of negative growth1. A cost of living crisis is

materialising as higher energy prices and inflation are met by further fiscal tightening and higher interest rates. The outlook still has downside risks, including a potential worsening of the European security situation, a deepening energy crisis, a failure to curb inflation, and uncertainty over Chinese growth.

### Oil prices

The key oil price marker for Europe, dated Brent crude, began 2022 at just below 80 USD/bbl, rising towards 100 USD/bbl in a tight market before the invasion of Ukraine and peaking at 137 USD/bbl on 8 March, as several countries and companies introduced voluntary cuts on purchases of Russian crude oil.

When the member countries of the International Energy Agency (IEA) agreed to release strategic supplies in storage, and the US followed suit, prices fell to around 100 USD/bbl. However, US and EU bans on Russian oil products led to a new price hike, with oil reaching almost 133 USD/bbl on 14 June.

Prices subsequently declined slowly, reaching a low of 77 USD/bbl in early December due to fears of lower industrial activity caused by gas shortages, inflation and higher interest rates. Market players weighed the risk

1 Growth in 2022 was 3.1% year-on-year, projected to be 2.4% in 2023.
GDP growth rates are from IMF World Economic January 2023.

Equinor 2022 integrated annual report

20 14 Equinor's market perspective

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CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

that oil demand would fall below even the constrained oil supply, a discussion still ongoing at year-end since the results of fiscal measures may only be seen in Q1 2023. The price drop was also driven by paper market effects, as higher price volatility led to higher margin calls. Notably, sanctions on Russian exports of refined products led to exceptionally high refinery margins, so our standard margin for an upgraded refinery in Europe averaged 21.2 USD/bbl for 2022, compared to 4.6 USD/bbl in 2021.

## Natural gas prices and European electricity and CO2 prices

### Gas prices - Europe

European natural gas prices rose by around 135% year-on-year in 2022, having reached an all-time high of around 90 USD/MMBtu in August, with Russian flows curtailed by roughly 75 Bcm year-on-year. LNG imports played a major role in replacing lost Russian flows, increasing by almost 70% year-on-year. Security of supply measures regained focus, with countries working to bring new LNG import capacity online and filling storage capacity ahead of the winter season. Additional pipeline supplies were seen from Norway and Azerbaijan. High prices and mild weather in the fourth quarter of 2022 resulted in sharp declines in residential and industrial demand. The European Commission also proposed a series of emergency interventions during the year to limit the effect of

high energy prices, such as windfall taxes, joint gas purchases, and a market correction mechanism to cap Dutch TTF hub prices.

### Gas prices - North America

The Henry Hub spot price averaged 6.4 USD/MMBtu for the year, a jump from the 3.9 USD/MMBtu average in 2021. Strong domestic demand and LNG export outpaced production growth for the year. Producers continued to prioritise capital discipline rather than unchecked production growth. Gas rig activity levels finally returned to pre-pandemic levels in the second half of 2022, and meaningful production growth started to materialise towards year-end. On the demand side, record heat waves across the country supported high power demand throughout the summer. US LNG exports grew by ~15% year-on-year, from 110 to 127 Bcm, despite the Freeport LNG terminal being offline for half a year. Extremely high international gas prices drove terminal utilisation up and exports to record highs.

### Global LNG prices

Global LNG spot prices were highly volatile in 2022, with the Asian LNG price ranging from 18.9 USD/MMBtu to 84.8 USD/MMBtu. The average Asian LNG spot price increased from 18.4 USD/MMBtu in 2021 to 34 USD/MMBtu in 2022, driven by a surge in LNG demand in Europe. Europe suffered from congestion at LNG regasification terminals and pipeline infrastructure connecting end markets, limiting the inflow of gas to high-demand areas, such as Germany. This resulted

in large price differentials between LNG delivered to Northwestern Europe and the Dutch TTF hub price, which reached a record 29.6 USD/MMBtu in early October. These bottlenecks eased going into 2023, with several floating LNG terminals swiftly deployed on the continent and enhancements made to pipeline infrastructure. Gas demand declined in Asia due to high LNG prices and additionally in China due to Covid-19 lockdowns, which released LNG volumes for Europe.

### European electric power and CO2 prices

Power prices in major West European markets (the UK, France, Germany, Belgium, Netherlands, Spain, and Italy) averaged 245 EUR/MWh in 2022, up 117% year-on-year. Although 2022 was expected to be a welcome end to the pandemic with an uptick in production and demand, the European security situation overshadowed everything. Power price volatility was extreme, and European governments intervened in regional markets to combat ever-rising prices.

Whilst the EU ETS (CO2) allowance price in 2021 saw a steady rise, the 2022 price was more volatile due to the introduction of emergency legislation in the energy market and uncertainty surrounding the Fit for 55-package and RePowerEU. Nevertheless, the price maintained a growth trend, with an average price of EUR 81tCO2 and a record high of EUR 98tCO2 in August. Going forward, we expect the EU ETS allowance price to be driven by a persistent gas-to-coal switch due to a tight gas market and RePowerEU.

After European power and natural gas prices reached an all-time high in August 2022, the EU agreed temporary, but extendable market intervention measures including a mandatory reduction in power consumption during peak hours and a 10% target for overall power demand reduction. Also agreed was an inframarginal revenue cap for power generators as well as a solidary fiscal contribution from the oil, gas, coal and refinery sectors with activities within the territory of the Union. Various industrial actors are pursuing legal challenges to these decisions. Regarding natural gas a temporary dynamic cap mechanism applicable to the TTF and extendable to other trading places if proposed by the European Commission was agreed. The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Securities and Markets Authority (ESMA) have in a recent report concluded that no significant impacts (positive or negative) on prices can be unequivocally and directly attributed to the adoption of this mechanism. However, both regulators indicate that this situation could change if prices rise and the prospect of the cap being triggered comes into view. The European Commission has also initiated the preparation of a targeted electricity market reform and this proposal is expected for media March 2023. Member States remain split both in terms of the scope and timing of such a reform effort.

Equinor 2022 Integrated annual report

21 1.5 Equinor's strategy

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# 1.5 Equinor's strategy

Concrete foundations for Hywind  
Tampen floating offshore wind farm,  
Dommersnes, Rogaland, Norway.

![img-0.jpeg](img-0.jpeg)

2022 has been both a complex and an extraordinary year for the oil and gas industry due to the Russian invasion of Ukraine and its consequences for energy security in Europe, weakened economic growth, and inflation, but also with higher than ever profits experienced by the energy industry. In this context, our strategic beliefs stand firm with climate change being a key challenge. The world's energy systems are in transition to meet this challenge.

As Equinor transforms, we work towards striking the right balance between supporting our core, generating cash flow to enable the energy transition, growing business in new energy areas, and continuing as an attractive investment for our shareholders.

## A leading company in the energy transition

By 2030, we aim to be a leading provider of renewable energy and low-carbon solutions, alongside our continued optimised oil and gas portfolio. We aim to continue being Norway's energy major and emerge as a leading energy player in select international markets.

We have developed a comprehensive Energy transition plan to become a net-zero company by 2050, including emissions from production and final consumption.

In 2030, our ambition is to have reduced the net carbon intensity by 20%, and by 40% in 2035. We aim to achieve this reduction by directing more than 50% of our annual gross investments in 2030 towards renewables and low-carbon solutions while continuing our efforts to reduce our emissions from the production of oil and gas.

Over the next ten years, we aim to generate a substantial cash flow from oil and gas, as our operations on the NCS are expected to continue delivering positive cash flow at low prices, short payback times, leading breakers and top quartile production cost, and among the lowest carbon intensity per barrel of oil. Internationally, the oil and gas portfolio will contribute significantly to after-tax cash flow as high-value development projects come onstream from the mid-2020s. The cash flow will be used to add to our portfolio, invest in our transition, and create value for shareholders and society.

We aim to accelerate growth in offshore wind from a strong industrial position to being among the top global players. We are also positioning for success in low-carbon solutions developing industrial value chains in CCS and hydrogen, and aiming for CCS leadership in Europe.

Equinor 2022 Integrated annual report

22 1.5 Equinor's strategy

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# Overall strategic framework

# Our Strategic Beliefs

Creating value through the energy transition

Net-zero ambition gives new industry opportunities

Technology excellence and innovation define winners

Market dynamics set margins under pressure

# Our Strategy

# Optimised Oil & Gas Portfolio

- capitalising on an advantaged portfolio as a strong cash engine to fund decarbonisation and transition activities.

We expect our oil and gas portfolio to continue to provide strong free cash flow in the coming years based on our current price assumptions. Reducing emissions from operations will remain a top priority. We will pursue activities where we have the competence, experience, scale, and an overall competitive advantage to secure a leadership position. This will be on the NCS and in select international areas where we can add value by combining use of existing infrastructure, improving oil recovery, executing strict production cost control thereby achieving faster return on investments.

Equinor is divesting lower performing or non-strategic assets. Improving efficiency will remain a priority, driven by implementation of technology at scale, digitalisation and automation. When we access new acreage and future exploration, we will focus on areas where we already have activity and existing infrastructure, ensuring shorter time span from discovery to production to capitalise on previous investments. Frontier exploration will be limited.

# Always Safe

- Safe and secure operation
- Protecting nature
- Tackling inequality

# High Value Growth in Renewables

- accelerated deployment to establish a strong industrial position for value-driven growth.

Equinor aims to be among the top global players in offshore wind, with 12-16 gigawatts of installed renewables capacity by 2030. Focusing on a high value growth in renewables both onshore and offshore, Equinor's renewable portfolio will also contribute to significant value creation.

Equinor is building a profitable renewables business, looking to increase returns through regional synergies, project financing, strategic farm downs, and inorganic growth. We seek to execute projects at scale, strive for technical improvements, and drive profits from energy trading. Equinor has a position of advantage in floating offshore wind and seeks to reduce costs through industrial scale projects like Hywind Sampen. Through early access to less mature markets, where both the risk and the potential returns are higher, Equinor can build leadership positions. Equinor is continuously seeking business opportunities in select renewable markets onshore.

# New Market Opportunities in Low Carbon Solutions

- becoming a leader in carbon management and hydrogen.

Low carbon value chains will be critical to decarbonise the global economy. Equinor is uniquely positioned to become a leader in CCS and hydrogen in Europe. Equinor is actively contributing to maturing these markets and aims to achieve a leadership position in the European CCS market with a market share above 25%. We expect government subsidies to play a key role over the next decade with policy choices supporting the industry in developing markets for CCS and hydrogen. Equinor has a strong starting point on the NCS and in the UK. The company draws on 25 years of operational experience from CCS at Sleipner and Snøhvit and decades of commercial partnerships with key industrial customers in Europe. Equinor is already a participant in leading projects to industrialise CCS and hydrogen like Northern Lights, Smehwa license and hydrogen clusters in the UK. Equinor is prepared to scale up investments and technologies as markets mature.

# Our strategic pillars and material topics

# High Value

- Efficient and predictable operations
- Profitable portfolio
- Value creation for society
- Integrity and anti corruption

# Low Carbon

- Net zero pathway
- Emission reduction

Governance and People

Equinor 2022 Integrated annual report

23 15 Equinor's strategy

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Our strategic pillars stand firm

Always safe, High value, Low carbon will continue to guide our business

### Always Safe

Safety is our top priority and the core of our licence to operate. To us, this means safety for our people, the environment and the societies in which we operate. We work hard to reduce risk and avoid incidents and injuries, both among our own employees and those of our suppliers. We shall respect human rights and support diversity, equality and inclusiveness in all our operations.

![img-1.jpeg](img-1.jpeg)

### Low carbon

Our long-term ambition is to become a net zero company by 2050. This ambition is supported by our Energy transition plan and is backed by actions such as: Reducing emissions from our oil and gas operations, increasing renewables capacity, establishing value chains in CCS and hydrogen, increasing the share of non-combusted products from hydrocarbons, and using high-quality carbon sinks. In the longer term, a decline in oil and gas production will also drive reductions in net carbon intensity towards net zero in 2050.

### High Value

Competitive performance and efficiency improvements will remain a priority. Our portfolio is resilient to low prices, has fast return on investments and world-class breakevens. We are growing cash flow from its international portfolio, making it more robust towards lower prices. Through our leading positions in the offshore wind market and low-carbon solutions, we are building a pipeline of future projects within offshore and onshore renewables, CCS and hydrogen. We are utilising our trading and midstream capabilities to optimise the portfolio of commodities that we provide to our customers, together with new products and services from low-carbon solutions.

*High value also means providing value to the societies in which we operate, by optimising local employment and procurement, contributing with taxes and maintaining high ethical, non-corrupt practices.*

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24 15 Equinor's strategy

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## Material topics

Our purpose is to turn natural resources into energy for people and progress for society. This requires an understanding of the interplay between our business activities and the societies and ecosystems in which we operate.

We have identified nine topics that we believe are key to deliver on our strategy. In line with the concept of double materiality, these are topics that may significantly affect our financial or operational performance, or that may significantly impact societies and ecosystems in which we operate. The figure on the right summarises Equinor's 2022 material topics according to our strategic pillars, and the rational for their selection.

## Research and development

Technology and innovation are enablers to deliver on our strategy. Building on a strong technology legacy, we leverage technology development and implementation of innovative solutions to enhance value and create opportunities for current and future assets.

We continuously evolve our technology direction to capitalise on external innovation and internal capabilities, thereby transforming through technology, and to:

- Deliver technology impact to the business today
- Scale technologies to build the company of tomorrow
- Transform into a data-driven company

Engagement with technology builds upon a set of principles that emphasizes on embedding data and digital into activities, scaling for competitive advantage, integrating different technologies to gain from synergies, developing distinct capabilities, strategic partnership between business lines and technology teams and co-innovating with industry partners. We leverage different tools such as in-house research and development activities, cooperation with academia, research institutions and suppliers, venturing in startups and scaleups and open innovation challenges.

Equinor 2022 Integrated annual report

## Equinor's 2022 material topics

**Safe and secure operations:** Ensure the health, safety and security of people, environment and assets. As an international operator of exploration, project development, oil and gas production, refineries, gas plants, solar and wind farms, Equinor faces a range of potential safety and security risks.

**Protecting nature:** Preventing the loss of biodiversity and enhancing the diversity and resilience of ecosystems in which Equinor operates. Being present in around 30 countries, Equinor's operating activities onshore and offshore have actual or potential impacts on nature.

**Efficient and predictable operations:** Optimisation and management of operations, turnarounds, and technological innovation. Equinor's core business activity is energy provision for society, which relies on optimal operational performance. This is especially important in the current economic climate with tight energy supply and high demand.

**Profitable portfolio:** Portfolio development and composition to ensure ongoing profitability with risk assessment and management of current asset base. Equinor operates a large global portfolio of assets across several energy resources. The composition and development of this portfolio influence our ability to ensure continued profitable business activity and long-term value to shareholders.

**Net zero pathway:** Achieving net-zero greenhouse gas emissions by 2050, including emissions from the use of our products. Equinor believes that a net zero pathway creates new business opportunities and is aligned with our purpose of delivering energy to people and progress for society.

**Tackling inequality:** Respecting and protecting human rights in Equinor's own activities and supply chain. Creating a diverse and inclusive workplace with equal opportunities and human capital development, and where discrimination is not tolerated in any form. Equinor employs a large and diverse workforce, with operations and supply chains in geographies with a high risk of human rights violations.

**Value creation for society:** Generating revenue, job opportunities and economic well-being through local employment, procurement and taxes. Delivering value to society at large and to our host communities, in particular, is fundamental to the success of our ongoing business activities and the energy transition.

**Integrity and anti-corruption:** Preventing corruption and ensuring ethical business culture across the company. Equinor is a global company with a large number of business relationships and is present in parts of the world where corruption is a high risk.

**Emission reductions:** Reducing GHG emissions from own production and the use of our products. Equinor has significant GHG emissions, and reducing emissions within this decade is urgent to be aligned with the Paris agreement.

25 1.6 Capital and liquidity management

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# 1.6 Capital and liquidity management

## Capital Distribution

Equinor is ambitious to grow the annual cash dividend in line with long-term underlying earnings, in addition to buying back shares.

When deciding the interim dividends and recommending the total annual dividend level, the BoD take into consideration a range of factors, including the macro environment, expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Dividends are declared in USD. For further details on Equinor's dividend policy see section 5.1.

As part of our distribution of capital to shareholders, Equinor also buys back shares. The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part of the programme are cancelled. According to a separate agreement between Equinor and the Norwegian State, a proportionate share of the Norwegian State's shares will be redeemed and annulled at the annual general meeting, ensuring that the State's ownership interest in Equinor remains unchanged at 67%. Execution of share buy-backs after the 2023 annual general meeting is subject to a renewed authorisation, including renewal of the agreement with the Norwegian State. Share buy-backs will be executed within applicable safe harbour provisions.

During the year we have increased our cash dividend from USD 0.20 ordinary dividend per share and USD 0.20 extraordinary dividend per share in the first quarter. The extraordinary dividend increased to USD 0.50 per share in the second quarter and to USD 0.70 per share in the third quarter. For the fourth quarter of the year, the board proposes to the AGM an ordinary cash dividend of USD 0.30 per share, and an extraordinary quarterly dividend of USD 0.60 per share.

For 2022, Equinor initiated a USD 5,000 million share buy-back programme which was increased to USD 6,000 million later in the year. The 2022 share buy-back programme started with the first tranche in February 2022 and ended with the fourth tranche, which was completed in January 2023. The Norwegian State share related to the second, third and fourth tranches of the 2022 share buy-back programme and to the first tranche of the 2023 share buy-back programme, amounting to USD 4,020 million, will be redeemed in 2023. Redemption is subject to approval in the annual general meeting in May 2023.

## Debt and credit rating

Equinor generally seeks to establish financing at the corporate (top company) level. Loans or equity are then extended to subsidiaries to fund their capital requirements. Project financing may be used in cases

involving incorporated joint ventures with other companies. The aim is to always have access to a variety of funding sources across different markets and instruments, as well as maintain relationships with a core group of international banks that provide a wide range of banking services.

Our credit rating target is within the single A category on a stand-alone basis. This rating ensures access to relevant capital markets at favourable terms and conditions.

The Group's borrowing needs are usually covered through the issuance of short-, medium- and long-term securities, including utilisation of a US Commercial Paper Programme (programme limit USD 5.0 billion) and issuances under a Shelf Registration Statement filed with the SEC in the US and a Euro Medium-Term Note (EMTN) Programme (programme limit EUR 20 billion) listed on the London Stock Exchange. In addition, Equinor has a multi-currency revolving credit facility of USD 6 billion, including a USD 3 billion swing line (same day value) option. The credit facility is used as a backstop for the group's US Commercial Paper Programme and has a sustainability linked financing element included in the loan agreement related to Equinor's CO$_{2}$ upstream intensity target. Equinor believes that given its current liquidity reserves, including the committed revolving credit facility of

USD 6 billion and its access to global capital markets, Equinor will have sufficient funds available to meet its liquidity and working capital requirements.

Equinor did not issue any new bonds in 2022 and 2021. The redemption profile of previously issued bonds by currency denomination is shown below. This includes bonds issued in the US and European bond markets. All the bonds are unconditionally guaranteed by Equinor Energy AS. Equinor manages its interest rate exposure on its bond debt based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed / floating mix on interest rate exposure may vary from time to time. After the effect of currency swaps, the major part of Equinor's borrowings is in USD.

## Long-term debt maturity profile

![img-2.jpeg](img-2.jpeg)

Equinor 2022 Integrated annual report

26 16 Capital and liquidity management

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

The management of financial assets and liabilities takes into consideration funding sources, the maturity profile of long-term debt, interest rate risk, currency risk and available liquid assets. In addition, interest rate derivatives, primarily interest rate swaps, are used to manage the interest rate risk of the long-term debt portfolio.

As of 31 December 2022, Equinor had a long-term credit rating of Aa2 (Moody's Investors Service) and AA- (Standard & Poor's Global Ratings), including an uplift due to state ownership (two notches from Moody's Investors Service and one notch from Standard & Poor's Global Ratings compared to their respective stand-alone credit rating assessments of Equinor). This rating is well above our rating target and ensures sufficient predictability when it comes to funding access at attractive terms and conditions.

#### Liquidity management

Equinor diversifies its cash investments across a range of financial instruments and counterparties to avoid concentrating risk in any one type of investment or any single country. As of 31 December 2022, approximately 25% of Equinor's liquid assets were held in USD-denominated assets, 26% in NOK, 36% in EUR, 7% in SEK, 3% in DKK and 3% in GBP before the effect of currency swaps and forward contracts. Approximately 31% of Equinor's liquid assets were held in time deposits, 37% in treasury bills and commercial papers, 11% in corporate bonds, 7% in money market funds and 0% in current accounts. As of 31 December 2022, approximately 14% of Equinor's liquid assets were classified as restricted cash (including collateral deposits).

![img-3.jpeg](img-3.jpeg)

Equinor 2022 Integrated annual report

27 1.7 Sustainability at Equinor

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## 1.7 Sustainability at Equinor

To be sustainable, the energy transition as well as being economically viable requires simultaneously providing energy with lower emissions whilst also addressing the unprecedented loss of nature and biodiversity and the need for a just, inclusive, and transparent transition. The interconnectivity and inter-dependency between these issues further require governments, civil society, and private sector entities such as Equinor to adopt integrated and holistic approaches. The way Equinor responds to these challenges is fundamental to our strategy and delivering on our purpose.

In 2022, Equinor made a strategic decision to further integrate sustainability priorities into the strategy and management of the company. We defined nine financial, operational, and sustainability-related topics that are critical to achieving our strategy; and we set ambitions for each topic to measure and report our progress to the board and our stakeholders in a coherent way (see chapter 2 for further details). From a sustainability perspective, Equinor has three overarching priorities: (i) Net zero by 2050; (ii) Evolving from a 'do no harm' principle to a nature-positive contribution; and (iii) Ensuring a just transition. Good governance and transparency are key enablers.

At both a strategic and operational level, we seek to embed these priorities into relevant governance, risk management and assurance, and decision-making processes. Alongside addressing these priorities in our own operations and projects, we seek to influence our partners and increasingly recognise the importance of

"Equinor aims to support sustainable development through contributing to the energy transition whilst also addressing biodiversity loss and the need for a just transition." Anders Opedal, CEO of Equinor.

![img-4.jpeg](img-4.jpeg)

Hywind Scotland floating offshore wind farm, UK

understanding and managing these issues throughout our supply chain. We further recognise that external dialogue and collaboration are key to understanding and ensuring a relevant and long-lasting contribution.

The effectiveness of our sustainability management approach is regularly evaluated through performance reviews at several levels, including the board of directors (BoD), the BoD's safety, sustainability and ethics committee (SSEC), the corporate executive committee (CEC), and by corporate functions and business areas. Internal and external audits, verifications and self-assessments constitute key assurance elements of our management approach. We conduct internal and external benchmarking and participate in external performance ratings for the same purpose.

Equinor supports the UN SDGs and shares the view that business has a key role to play in delivering on and contributing to the goals. Equinor supports all the 17 SDGs and contributes especially to the following six goals: quality education, affordable and clean energy, decent work and economic growth, climate action, life below water, and partnerships for the goals.

Our sustainability reporting is prepared in accordance with the Global Reporting Initiative (GRI) Standards

(2021). The information provided is also aligned with the World Economic Forum Stakeholder Capitalism reporting metrics. The report, along with its referenced information, forms Equinor's Communication on Progress (CoP) to the United Nations Global Compact (UNGC).

In alignment with industry practice and regulatory requirements, we report safety and environmental data under our operational control (100% basis), including operations where Equinor is a technical service provider. Greenhouse gas (GHG) emissions data is reported on both an equity and operational control basis. Economic data is reported on an equity share basis, and workforce data covers employees in our direct employment. Human rights data is collected from operated and non-operated assets. Our transparency act disclosures can be found at equinor.com/report (ESG reporting centre). For more information about reporting boundaries, see section 5.6 Additional sustainability information. For additional data supporting the report, please refer to Equinor's sustainability data hub at equinor.com.

Relevant sections in Chapter 2 provide further specific information on our sustainability-related material topics, management approach and performance in 2022. Further information on the independent assurance for these topics is provided in sections 5.6 Additional sustainability information and 5.7 Statements on this report, including independent auditor reports.

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28 1.8 Governance and risk management

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ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# 1.8 Governance and risk management

## Corporate governance

Corporate governance guides the work of Equinor's governing bodies, our management teams, and individuals, and it safeguards the shareholders' and other stakeholders' long-term trust in the company. Our corporate governance framework and processes are formed to promote transparency and accountability in decision-making and day-to-day operations.

As a public limited company with shares listed in Oslo and New York, Equinor adheres to relevant regulations and applicable corporate governance codes, including the Norwegian Code of Practice for Corporate Governance (the Code of Practice). Further details on Equinor's compliance or explanations of possible deviations with this Code of Practice can be found in section 5.1. Board statement on corporate governance.

## Governing bodies

The board of directors (BoD) focuses on maintaining a high standard of corporate governance. Good corporate governance is a prerequisite for a sound and sustainable company, and our corporate governance is based on openness and equal treatment of shareholders. Governing structures and controls help to ensure that we run our business in a justifiable and profitable manner for the benefit of employees, shareholders, partners, customers and society.

The BoD has the overriding responsibility for supervising Equinor's management and operations and establishing control systems. The work of the BoD is based on its rules of procedures and applicable legislation describing its responsibility, duties and administrative procedures. It has three sub-committees that act as preparatory bodies:

- The audit committee (BAC) assists in the exercise of the BoD's control responsibilities in connection with risk management, internal control and financial reporting.

- The safety, sustainability, and ethics committee (SSEC) assist the BoD in reviewing the practices and performance of the company regarding safety, security, ethics, sustainability and climate.
- The compensation and executive development committee (BCC) assists the BoD in matters relating to management compensation and leadership development, hereunder terms and conditions of employment for the CEO, and on the principles and strategy for compensation of leading executives in Equinor.

Equinor's corporate assembly consists of 18 members, 12 which are nominated by the nomination committee and elected by the general meeting. They represent a broad cross-section of the company's shareholders and stakeholders. Six members and three observers are elected by and among our employees in Equinor ASA or a subsidiary in Norway. One of the main duties of the corporate assembly is to elect the company's BoD. Further details on the governing bodies in Equinor is set out in section 5.1. Board statement on corporate governance.

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ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## Board of directors

Equinor's board consists of 11 members.

The board members have experience from oil, gas, renewables, shipping, telecom, Norwegian defence forces and environmental and sustainability work. The work of the board is set out in section 5.1 Board statement on corporate governance.

![img-5.jpeg](img-5.jpeg)

**Jon Erik Reinhardsen**
Chair of the Board and of the Board's Compensation and Executive Development Committee.

Jon Erik Reinhardsen - CV

![img-6.jpeg](img-6.jpeg)

**Anne Drinkwater**
Deputy chair of the Board, chair of the Board's Audit Committee and member of the Board's Safety, Sustainability and Ethics Committee.

Anne Drinkwater - CV

![img-7.jpeg](img-7.jpeg)

**Rebekka Glasser Herlofsen**
Member of the Board, the Board's Audit Committee and the Board's Compensation and Executive Development Committee.

Rebekka Glasser Herlofsen - CV

![img-8.jpeg](img-8.jpeg)

**Jonathan (Jon) Lewis**
Member of the Board, chair of the Board's Safety, Sustainability and Ethics Committee and member of the Board's Audit Committee.

Jonathan (Jon) Lewis - CV

![img-9.jpeg](img-9.jpeg)

**Finn Bjørn Ruyter**
Member of the Board, the Board's Audit Committee and the Board's Compensation and Executive Development Committee.

Finn Bjørn Ruyter - CV

![img-10.jpeg](img-10.jpeg)

**Tove Andersen**
Member of the Board and the Board's Safety, Sustainability and Ethics Committee.

Tove Andersen - CV

![img-11.jpeg](img-11.jpeg)

**Michael D. Lewis2)**
Member of the Board and the Board's Compensation and Executive Development Committee.

Michael D. Lewis - CV

![img-12.jpeg](img-12.jpeg)

**Haakon Bruun-Hanssen**
Member of the Board, the Board's Compensation and Executive Development Committee and the Board's Safety, Sustainability and Ethics Committee.

Haakon Bruun-Hanssen - CV

![img-13.jpeg](img-13.jpeg)

**Stig Lægreid**
Employee-elected member of the Board and member of the Safety, Sustainability and Ethics Committee.

Stig Lægreid - CV

![img-14.jpeg](img-14.jpeg)

**Per Martin Labråthen**
Employee-elected member of the Board, member of the Board's Safety, Sustainability and Ethics Committee and member of the Board's Compensation and Executive Development Committee.

Per Martin Labråthen - CV

![img-15.jpeg](img-15.jpeg)

**Hilde Møllerstad**
Employee-elected member of the Board and member of the Board's Audit Committee.

Hilde Møllerstad - CV

2) Resigned from his position as member of the board of directors in Equinor ASA with effect as of 16 March 2023.

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AND OUR STRATEGY

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STATEMENTS

ADDITIONAL
INFORMATION

# Corporate executive
committee

The president and chief executive
officer (CEO) has the overall
responsibility for day-to-day
operations in Equinor. The CEO also
appoints the corporate executive
committee (CEC), which considers
proposals for strategy, goals, financial
statements, as well as important
investments prior to submission to
the BoD.

![img-16.jpeg](img-16.jpeg)

**Anders Opedal**
President and Chief
Executive Officer

Anders Opedal - CV

![img-17.jpeg](img-17.jpeg)

**Torgrim Reitan**
Executive Vice President
and Chief Financial Officer

Torgrim Reitan - CV

![img-18.jpeg](img-18.jpeg)

**Jannicke Nilsson**
Executive Vice President
Safety, Security &
Sustainability

Jannicke Nilsson - CV

![img-19.jpeg](img-19.jpeg)

**Kjetil Hove**
Executive Vice President
Exploration & Production
Norway

Kjetil Hove - CV

![img-20.jpeg](img-20.jpeg)

**Philippe François
Mathieu**
Executive Vice President
Exploration & Production
International

Philippe François Mathieu - CV

![img-21.jpeg](img-21.jpeg)

**Geir Tungesvik**
Executive Vice President
Projects, Drilling &
Procurement

Geir Tungesvik - CV

![img-22.jpeg](img-22.jpeg)

**Irene Rummelhoff**
Executive Vice President
Marketing, Midstream &
Processing

Irene Rummelhoff - CV

![img-23.jpeg](img-23.jpeg)

**Pål Eitrheim**
Executive Vice President
Renewables

Pål Eitrheim - CV

![img-24.jpeg](img-24.jpeg)

**Hege Skryseth**
Executive Vice President
Technology, Digital &
Innovation

Hege Skryseth - CV

![img-25.jpeg](img-25.jpeg)

**Siv Helen Rygh
Torstensen**
Executive Vice President
Legal & Compliance

Siv Helen Rygh Torstensen - CV

![img-26.jpeg](img-26.jpeg)

**Jannik Lindbæk**
Executive Vice President
Communication

Jannik Lindbæk - CV

![img-27.jpeg](img-27.jpeg)

**Aksel Stenerud**
Executive Vice President
People & Organisation

Aksel Stenerud - CV

Equinor 2022 Integrated annual report

31 18 Governance and risk management

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

Please see section 5.1 Board statement on corporate governance for a comprehensive account of our corporate governance framework, functions, and processes with references to The Norwegian Code of Practice for Corporate Governance.

#### Remuneration of the board of directors

The remuneration of the board of directors is decided by the corporate assembly annually, following a recommendation from the nomination committee. Remuneration for board members is not linked to performance, and board members do not receive any shares or similar as part of their remuneration. The board members generally receive an annual fixed fee. Deputy members, who are only elected for employee-elected board members, receive remuneration per meeting attended. The employee-elected members of the board receive the same remuneration as the shareholder-elected members.

#### Remuneration of the corporate executive committee

The board of directors is responsible for preparing and implementing a remuneration policy for the members of the CEC. The policy is effective for a period of four years, subject to any proposed material changes by the board of directors requiring adoption by the annual general meeting before the four-year term concludes.

The policy shall contribute to attracting and retaining executives and motivate them to drive the success of

the company. A key principle for Equinor's remuneration policy is moderation. The reward should be competitive, but not market-leading, and aligned with the markets that the company recruits from, maintaining an overall sustainable cost level. Equinor places a high focus on fostering alignment between the interests of its executive management and those of its owners and other stakeholders. Variable remuneration is aimed at driving performance in line with the company's strategy and securing long-term commitment and retention with the company. The receipt of variable remuneration depends on individual and company performance and is subject to a holding period requirement for some elements. Performance-based variable remuneration compensation has been capped in accordance with the relevant Norwegian state guidelines.

The remuneration policy was approved by the 2021 annual general meeting. A revised policy will be presented for a binding vote at the general meeting in 2023. The approved policy will be available on Equinor's website.

#### Executive remuneration policy

The executive remuneration policy approved by the 2021 annual general meeting, which serves as the basis for the 2022 remuneration report, including information with respect to the board of directors and corporate assembly, can be found in an appendix to the 2022 remuneration report on equinor.com/reports.

![img-0.jpeg](img-0.jpeg)

Supply vessel MGR Swath, 1, Mywind Scotland floating offshore wind farm, UK

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ABOUT EQUINOR
AND OUR STRATEGY

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PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## Risk management

Equinor manages risk related to our strategy selection and delivery of our strategic ambitions. The most important enterprise risks and risk factors are described in section 5.2 Risk factors.

Equinor's enterprise risk management (ERM) framework is integrated into all Equinor business activities with a focus on creating value and avoiding incidents. We consider risks related to shorter-term outcomes, as well as more immature or emerging risk issues that can impact our business ambitions and corporate risk profile. The Equinor BoD oversees the ERM framework and reviews company performance.

The ERM approach supports risk-informed decisions and optimal solutions through a focus on the following:

- the value impact for Equinor, including upside and downside risk; and
- compliance with Equinor's requirements, including a strong focus on avoiding HSE, human rights and business integrity incidents (such as accidents, fraud and corruption).

In general, the risk is managed in the business line as an integral part of employee and manager tasks. The business areas and corporate functions regularly identify and evaluate risk using established procedures, assess the need for risk-adjusting actions, and review overall risk management performance. Some risks, such as oil and natural gas price risks and interest and currency risks, are managed at the corporate

level to provide optimal solutions. A corporate risk perspective is also applied in strategy development, portfolio prioritisation processes, and capital structure discussions. Equinor's corporate risk team analyses the corporate risk profile and maintains the ERM overview. Throughout the year, the CEO and the BoD maintain oversight of the risk management framework, processes, top enterprise risks and the overall risk picture. Areas of particular risk oversight currently include IT and cyber-security, progress on net-zero, low-carbon value proposition, political and regulatory frameworks, human rights, and capacity and capability constraints.

Equinor's risk management process is based on ISO 31000 risk management and seeks to ensure that risks are identified, analysed, evaluated, and appropriately managed. A standardised process across Equinor supports consistency in risk discussions and efficiency in decisions. Risk is integrated into the company's management information system (IT tool), where it is linked with Equinor's purpose, vision and strategy and associated strategic objectives and KPIs. This tool is used to capture risks, follow up risk-adjusting actions and related assurance activities, and supports a risk-based approach in the context of a three lines-of-control model (Equinor Book).

Equinor risk management can be broadly considered across the following enterprise impact areas. More detail on specific themes is provided in relevant material topics sections of this report.

![img-1.jpeg](img-1.jpeg)

Operations and maintenance base for Dogger Bank offshore wind farm, Port of Tyne, UK.

Equinor 2022 Integrated annual report

33 1.8 Governance and risk management

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

### Strategic and commercial risks:

Equinor needs to navigate uncertainty and manage risk to remain financially robust through the changing energy context. Climate-related issues influence many aspects of our strategy selection and execution. Global, regional and national political developments can change the operating environment and economic outcomes. Market conditions related to supply and demand, technological change, customer preferences and global economic conditions can significantly impact company financial performance. Our ability to deliver value from projects and operations can be impacted by factors related to partners, contractors, global supply chains as well as regulatory frameworks. Digital and cyber threats are constantly evolving and can cause major disruption across our value chains.

### Strategic and commercial risk factors:

- • Prices and markets
- • International politics and geopolitical change
- • Hydrocarbon resource base and low carbon opportunities
- • Digital and cyber security
- • Climate change and transition to a lower carbon economy
- • Project delivery and operations
- • Joint arrangements and contractors
- • Competition and technological innovation
- • Ownership and action by the Norwegian State
- • Policies and legislation
- • Finance
- • Trading and commercial supply activities
- • Workforce and organisation
- • Crisis management, business continuity and insurance coverage

### Strategic and commercial risk management:

Overall, Equinor manages risk through a diversified portfolio, robust financial framework, stress-testing and business planning, investment, and review processes. The company is exposed to oil and gas market price levels. Corporate hedges may be entered into to reduce or eliminate the cash flow volatility generated from the price levels risk. Equinor has an insurance-based approach to this hedging, securing downside protection only while keeping the upside in price exposure open. For the trading business, derivatives risk is managed through a control framework including Value at Risk and trader mandates, loss limitation systems and daily monitoring of trading profit and loss. Equinor's liquidity framework is based on a forward-looking risk management approach to assure that Equinor's

strategic liquidity reserve will cover both expected and unexpected cash outflows over the subsequent six months, including a potential crisis event and significant collateral needs.

Risk factors related to low carbon solutions, climate change and transition to a lower carbon economy, workforce and organisation, cyber security, actions by the Norwegian State are included within top enterprise risks and have direct follow-up at executive level. Top enterprise risks are assessed in relation to risk appetite statements and risk tolerances that represent the company's willingness to take on risk exposure. Actions to manage exposure are implemented and assessed based on their effectiveness. Risks are reviewed by both the first

line (risk owner) and second line (Corporate risk) with regards to risk management and followed up by the CEC and BoD.

To support portfolio resilience in multiple energy pathways, we have a financial framework in place addressing climate-related risks, we stress test our portfolio across different energy scenarios, and assess climate-related physical risks. Risks relating to policies and regulatory frameworks, international politics and geopolitical change, together with competition and technological innovation are regularly assessed, monitored and managed to improve outcomes for the company as part of the Equinor's risk update.

Risk factors related to projects and operations are managed at many levels, including through quality assurance processes (competence area reviews, e.g., facilities, safety and security, environment, commercial and country risk) within the investment phase, quality risk management within the project execution risk phase, and continuous improvement programs in operations. Crisis management, business continuity and insurance coverage are included in the evaluation of actions to reduce the impact of unwanted incidents. Digital security and cybersecurity remain in high focus through a cybersecurity improvement programme to maintain and strengthen cybersecurity capability and reduce cyber risk.

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FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

### Safety, security and environment risks:

We undertake business activities globally that give exposure to a wide range of factors that can impact the health and safety of people, the integrity of facilities, and the natural environment. Incidents may include release of health hazardous substances, fire, explosions, and environmental contamination. Equinor could also be subject to hostile acts that cause harm and disrupt operations.

### Safety, security and environment risk factors:

- Security
- Health, safety and environmental factors

### Safety, security and environment risk management:

We regularly assess our performance through indicators, reviews and assurance activities and, when needed, instigate improvements. In the current business context, we have a specific focus on top enterprise risks related to major accidents, security incidents and human rights breaches, as well as following up on aspects of our pathway to net zero (under strategic and commercial risks). Mitigation of the major accident risk is through continued focus on our I am Safety Roadmap and rollout of major accident prevention training across the company. Risk exposure to human rights

is addressed through a specific action plan that prioritises key actions to prevent forced labour in the supply chain and establish new working requirements for human rights due diligence. The European security situation continues to shape security risk management activity and we have sought to mitigate state actor threats through work on physical security, including offshore and onshore facilities and pipelines, to guard against drones, and to further develop the management of cybersecurity.

### Compliance and Control Risks:

Breaches of laws, regulations or guidelines and ethical misconduct can lead to public or regulatory responses that affect our reputation, operating results, shareholder value and continued licence to operate. Failure to control risks related to trading processes and transactions can result in direct losses and potentially affect Equinor's licence to trade.

### Compliance and Control Risk Factors:

- Business integrity and ethical misconduct
- Supervisions, regulatory reviews and reporting

### Compliance and Control Risk Management:

Equinor's Code of Conduct sets out our commitment and requirements for how we do business at Equinor. We train our employees on how to apply the Code of Conduct in their daily work and require annual confirmation that all employees understand and will comply with requirements. We require our suppliers to act in a way that is consistent

with our Code of Conduct and engage with them to help them understand our ethical requirements and how we do business. Equinor operates a Compliance Program to ensure that anti-bribery and corruption risks are identified, reported, and mitigated, and have a network of compliance officers who support the business areas globally.

Equinor 2022 Integrated annual report

35 1.9 Our People - To get there. Together

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# 1.9 Our People - To get there. Together

## How we work

Our success depends on thousands of individuals working together. Each and every one of us makes a difference as we shape the future of energy.

Equinor's role as a reliable energy provider is more important than ever, while we also work on securing sustainable energy production today that will enable the energy transition. This has resulted in a high activity level, and we are proud of all our people going to great lengths to keep energy production high and secure. In 2022, we strengthened our capabilities in Norway and in locations around the world, focusing on competence development, recruitment, and our operating model. In Equinor, we have around 22,000 employees globally. We work systematically with diversity and inclusion in our HR processes, from recruitment, talent, and succession to leadership deployment. In 2022, our gender balance was 31% female, and 21% of our employees were international (non-Norwegian). During the year we welcomed almost 2,000 new employees to our company. Our focus has been on strengthening competence development, recruitment, and onboarding

while maintaining our people's well-being and building an inclusive culture where everyone feels respected, safe, and fully connected to our common goal.

### Developing our people capabilities

In 2022, we implemented further improvements to our workforce planning process to ensure that there is an even stronger link between our strategy, business plans, and the people capabilities we develop for Equinor. Our workforce planning process involves leaders and employee representatives in the definition of the competence and capacity needed to deliver on future plans, as well as in the development of plans to close and mitigate gaps, such as competence development and recruitment.

### Building and utilising our collective competence

Our collective competence is a key enabler for Equinor to deliver on current and future ambitions. We are therefore supporting employees to build future-fit competence and are continuously updating our learning offering. We continuously monitor the uptake of all formal learning to ensure management focus and further optimise our learning portfolio.

![img-2.jpeg](img-2.jpeg)

Equinor Fornebu, Oslo, Norway.

|  | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Total number of permanent employees | Equinor group | number | 21,936 | 21,126 | 21,245 | 21,412 | 20,525 |
| Total new hires | Equinor group | number | 1,988 | 886 | 774 | 1,568 | 905 |

Equinor 2022 Integrated annual report

36 19 Our People - To get there. Together

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

In 2021 we adjusted our operating model to further expand the use of competence centres to accelerate competence development and flexibility in people allocation across activities and value chains. In 2022, we implemented further improvements to make sure that our processes and tools are fit for purpose to enable this, including a review of various IT solutions.

#### Growing our workforce

To support our ambitions for the future, we added almost 2,000 new recruits in 2022 to replenish and grow our workforce. A high activity level in our existing business, combined with high growth ambitions, and a growing number of retirees, requires an increased intake of both emerging talent and experienced hires.

#### Creating a great place to work

In Equinor, we continuously involve our people in the development of the company. This includes internal cross-functional collaboration and liaising with union representatives and safety delegates according to local law and practice. In 2022, this was vital in activating our new operating model, flexible work, humanitarian aid related to the war in Ukraine, and an increasingly complicated security situation. We respect employees' rights to organise and their opportunity to bring forward their opinions, and we have the same clear expectation of our suppliers and partners.

Every year we conduct a global people survey (GPS) to evaluate and improve key areas that impact safety, working environment, engagement, and the drive for continuous improvement and change in Equinor. For 2022, the GPS scores show a positive development

in commitment, motivation and HSE compared to 2021, but also some negative developments for some important topics, such as continuous improvement, rapid implementation of good ideas and further development of our operating model. We are focused on developing our people, directing their time and effort to prioritised activities in more flexible ways. We continue to adapt to our new ways of working and our focus on flexibility and collaboration. In Equinor, we have established a set of flexible work principles that describe the ways we organise our work, use our facilities, and behave together, and 2022 was about implementing and operationalising these principles.

#### Performance and reward framework

Our performance and reward framework measures progress and results in a holistic way across two dimensions, both by what we deliver and how we deliver. Business delivery and behaviour are equally weighted when recognising and rewarding individual performance. The CEO, his direct reports and Equinor's broader leadership are assessed based on results within a broad range of financial, operational and sustainability topics. The annual bonus for employees is based on the same holistic assessment of company performance. A comprehensive set of performance indicators and monitoring reports are made available to all employees in Equinor's management information system. The KPIs are reported on a regular basis from operational levels to the governing bodies to ensure transparency in risk and performance management - this is how we keep individuals accountable for the development of our company.

![img-3.jpeg](img-3.jpeg)

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37 1.10 External relations

INTRODUCTION

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ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
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# 1.10 External relations

## Stakeholder engagement

In line with our values of being open and collaborative, we actively and regularly engage with internal and external stakeholders to discuss our strategy, approach, and performance. It is important to engage to enrich and challenge our priorities and positions, so that we can continuously improve our performance and strategic direction.

Throughout 2022, we engaged with numerous stakeholders, including investors, governments, regulators, business partners and suppliers, customers, local communities, academic institutions, and non-governmental organisations. Equinor strives to have a systematic approach to engage with a broad set of relevant stakeholders for our business and the communities where we operate.

A tangible example of how we engage with stakeholders was the company's Energy transition plan. In May 2022, Equinor put forward its Energy transition plan for an advisory vote to shareholders at the annual general meeting (AGM). The plan provides an overview of how the company is progressing towards its 2050 net-zero ambition through short-term actions and medium-term ambitions. This provided an opportunity for all investors to actively engage with the company's ambitions and performance. 97.5% of the votes representing shareholders present at the AGM were cast in approval of the proposed resolution. In addition to the government as the largest shareholder, almost three out of four investors voted in favour.

The chair of the BoD, the CEO and senior managers, amongst others, regularly engage in stakeholder dialogues. We consult stakeholders both directly and indirectly, and we strive to reduce potential language, social and geographical barriers.

## Associations and industry initiatives

Equinor participates in a wide range of relevant associations and industry initiatives to engage in dialogue, share knowledge and learn from others. The following are some of the associations that worked closely with: CCSA, G+ Global offshore wind health and safety organisation and Global Wind Offshore (GWO), Hydrogen UK, the International Emissions Trading Association (IETA), International Association of Oil and Gas Producers (IOGP), Ipeca, Methane Guiding Principles, Offshore Norge, Oil and Gas Climate Initiative (OGCI), Oil and Gas Methane partnership, Renewable UK, Sustainability Hub Norway, the Task Force on Climate-related Financial Disclosures, the Task Force on Nature related Financial Disclosures, United Nations Global Compact, Wind Europe, and the World Business Council for Sustainable Development.

Further information on our Climate policy engagement activities can be found in section 2.3 Low carbon.

## Working with partners and suppliers

Equinor holds participating interests in many assets operated by other companies. Similarly, other companies hold participating interests in assets that we operate. The way we work and follow up on partner-

![img-4.jpeg](img-4.jpeg)

Hammerfest processing plant for LNG at Melkøya, Hammerfest, Norway.

operated assets seeks to ensure that governance, risk and performance management are compatible with our own requirements and practices. Through the applicable committee structures in the partnerships, we follow up and support the management of risks and performance related to safety, security, ethics, integrity, and sustainability, including climate, environment, human rights and social performance.

A significant part of our business activities are carried out by suppliers working under contracts awarded by Equinor. We undertake safety and sustainability qualification of suppliers' management systems to ensure that our suppliers have an acceptable standard

before entering into a contract. The qualification is based on an audit of suppliers' management system according to the main principles of ISO 9001 (quality), 14001 (environment), 27001 (information security) and 45001 (occupational health and safety), in addition to the United Nations Guiding Principles on Business and Human Rights. We work closely with our suppliers and regularly verify deliveries to ensure that agreed actions are undertaken.

Integrity due diligence (IDD) is performed to identify integrity concerns and ensure that the required IDD process is complete prior to establishing a new agreement with a counterparty.

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38

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ABOUT EQUINOR
AND OUR STRATEGY

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PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

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STATEMENTS

ADDITIONAL
INFORMATION

# 2 Enterprise level
performance

![img-5.jpeg](img-5.jpeg)

Eddy© 2022 Integrated Circuit Report

Landfall or Kolsa
Rogaland, Norway

| Performance 2022 | 39 |
| --- | --- |
| 2.1 Always safe | 43 |
| 2.1.1 Safe and secure operations | 44 |
| 2.1.2 Protecting nature | 49 |
| 2.1.3 Tackling inequality - Human rights | 53 |
| 2.1.4 Tackling inequality - Diversity and inclusion | 56 |
| 2.2 High value | 61 |
| Group analysis | 61 |
| 2.2.1 Efficient and predictable operations | 70 |
| 2.2.2 Profitable portfolio | 73 |
| 2.2.3 Value creation for society | 79 |
| 2.2.4 Integrity and anti-corruption | 82 |
| 2.3 Low carbon | 84 |
| 2.3.1 Net zero pathway | 86 |
| 2.3.2 Emissions reductions | 89 |

39 Performance 2022

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# Performance 2022

As a large, international energy company, Equinor impacts and is impacted by a variety of factors. We create value by providing society with energy - 2,039 mboe per day of oil and gas and a total of 2,653 GWh of electric power in 2022. Through the efficient operation of our portfolio, we generate profits and shareholder returns. This financial strength, combined with our engineering expertise, enables us to contribute to the rapid deployment of renewable energy and low-carbon solutions. We also contribute to socio-economic development through jobs for around 22,000 employees and our 8,000 suppliers and pay a significant amount of tax in the societies in which we operate.

At the same time, our operations generate significant greenhouse gas emissions - in 2022 we emitted 11.4 million tonnes carbon dioxide equivalent (CO2e) from our own operations. We also impact biodiversity and ecosystems through for example discharges to sea or land, emissions to air, and the use of land and sea areas and natural resources. In our industry, the exposure to health and safety risk is high. Risks related to breaking of human rights, integrity and security are also inherent in the activities we and our suppliers perform. While profitable growth and shareholder value is critical to any business, we must create long-term growth and lasting value in a sustainable way.

In recognition of the complex interplay between our business, nature and society, we use the concept of double materiality to inform our business decisions. We

systematically analyse impacts with two perspectives in mind: the impacts that Equinor has on society and nature, and the impacts that society and nature have on Equinor. This dual perspective ensures a broader understanding of the material topics we need to manage in the delivery of our long-term strategy as well as in our day-to-day operations. The identification and prioritisation of material topics is based on our understanding of relevant risk factors, consultation with internal and external subject matter experts, independent analyses and our ongoing stakeholder engagement as summarised in chapter 1. The chief executive officer (CEO) and ultimately the board of directors (BoD) are responsible for the approval of the annual report, including the material topics, monitoring indicators and ambitions.

The material topics are grouped according to our three strategic pillars: Always safe, high value and low carbon. For each of the material topics, KPIs/monitoring indicators have been identified, and clear ambitions have been set. The table below summarises our framework and provides a high-level overview of our progress in 2022. Subsequent sections of this chapter detail our ambitions, key risk factors, management approach, performance data, and evaluation of our progress for each of the nine topics. For each material topic we include a summary of Equinor's key impacts to nature and society, as well as through cross referencing relevant corporate risk factors identified in chapter 1, an assessment of the impact of nature and society to Equinor.

![img-6.jpeg](img-6.jpeg)

Aker Solutions yard at Stord, Vestland, Norway.

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40 Performance 2022

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ENTERPRISE LEVEL PERFORMANCE

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FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# Material topics and 2022 performance

# ALWAYS SAFE

| KP/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | 2021 |
| --- | --- | --- | --- | --- |
| SAFE AND SECURE OPERATIONS |  |  |  |  |
| Serious Incident Frequency (SIF) (number per million hours worked) | ≤0.4 (2022) | ● | 0.4 | 0.4 |
| Total Recordable Injury Frequency (TRIF) (number per million hours worked) | ≤2.2 (2022) | ● | 2.5 | 2.4 |
| Completion of cyber security awareness training for employees - since commenced June 2021 (%) | 95% (2022) | ● | 97.7 | n/r |
| PROTECTING NATURE |  |  |  |  |
| Assets and licences in and adjacent to protected areas (number of) | From 2023: New projects in protected areas or areas of high biodiversity value to establish a plan aiming to demonstrate net positive impact | ● | 35 | 19 |
| Serious accidental spills (number of) | 0 (2022) | ● | 0 | 0 |
| TACKLING INEQUALITY |  |  |  |  |
| Determine a suitable human rights indicator | Pilot a set of human rights indicators (2022) | ● | Completed |  |
| Inclusion index score (%) | I: ≥80 (2025) | ● | 77 | 77 |

Text in bold: Key performance indicator: 1 Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU). 2 USD 2021 real base. 3 Rebased for portfolio measures. 4 Based on 2022 CMU price scenario (65 USD/bbl).

5 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.

● Ambition met in 2022. ● Ambition not met in 2022. ● Plan in place, on track to reach longer-term ambition. ○ Plan in place, not on track to reach longer-term ambition.

Equinor 2022 Integrated annual report

# HIGH VALUE

| KP/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | 2021 |
| --- | --- | --- | --- | --- |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (mboe per day) | 2022 outlook guiding '2% above 2021'.1 | ● | Growth 0% (2039) | 2079 |
| Production cost equity volumes (USD/boe) | <5 USD/bbl (2021-2026).2 | ● | 5.6 | 5.4 |
| PROFITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030).3 | ● | 55.2 | 22.7 |
| Relative Total Shareholder Return (Relative TSR) (quartile) | Above average in ranking among peers.4 | ● | 6 of 12 | 2 of 12 |
| Relative ROACE* (peer group rank) | First quartile in ranking among peers.5 | ● | 1 of 12 | 2 of 12 |
| Organic Capex* (billion USD) | 2022 outlook guiding USD 10.6 | ● | 8.3 | 7.9 |
| VALUE CREATION FOR SOCIETY |  |  |  |  |
| Payments to governments (billion USD) | Not applicable | ● | 49.2 | 11.8 |
| Share of procurement spend locally (%) | Not applicable | ● | 88.7 | 91.4 |
| INTEGRITY AND ANTI-CORRUPTION |  |  |  |  |
| Confirmed corruption cases (number of) | 0 (2022) | ● | 0 | 0 |
| Employees who signed-off the Code of Conduct (%) | ≥95% (2022) | ● | 95 | 84 |

# LOW CARBON

| KP/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | 2021 |
| --- | --- | --- | --- | --- |
| NET ZERO PATHWAY |  |  |  |  |
| Net carbon intensity (gCO2e/MJ) | >20% (2019 → 2030) >40% (2019 → 2035) | ● | 66.5 | 67.1 |
| Renewable energy installed capacity (GW, equity) | 12-16 installed (2030) | ● | 0.6 | 0.5 |
| Annual gross CAPEX* to renewables and low carbon solutions (%) | >30% (2025) >50% (2030) | ● | 14 | 11 |
| EMISSIONS REDUCTIONS |  |  |  |  |
| Absolute GHG emissions scope 1 and 2 (million tonnes CO2e) | Net 50% emission reduction (2015 → 2030) | ● | 11.4 | 12.1 |
| Upstream CO2 intensity, Scope 1 (kg CO2/boe) | <8 kg/boe (2025) <6 kg/boe (2030) | ● | 6.9 | 7.0 |

41 Performance 2022

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Summary of enterprise level material topics for 2022

### Always safe

#### Improved safety and security performance

In 2022 there were no fatalities and no actual or potential major accidents, and the total number of actual serious incidents is the lowest ever recorded. Equinor also recorded the lowest number of serious oil and gas leaks ever, and there was no significant harm to people, assets or operations due to security incidents. The company, however, experienced too many personal injuries and did not meet the 2022 target. Although there was a decline in work related illness, the total level of absence has increased further since 2021. Based on our 2022 performance, we recognise the need to continue to improve our health, safety and security performance. Given the measures reinforced in 2022, we consider our approach as adequate, and health, safety and security objectives remain a top priority for Equinor's management.

#### Satisfactory performance on most nature related topics

Equinor's performance related to non-GHG emissions to air and regular discharges to sea, is considered satisfactory. Although volumes of accidental spills are lower than in 2021, we are not satisfied with the slight increase in number of uncontrolled discharges and breaches of discharge permits in our operations in Norway, and there is continued focus on improvement activities to address compliance with relevant environmental regulations. Our approach and ongoing improvement activities related to our impacts on

biodiversity, for example new disclosure metrics and preparation of NPI plans and site-specific inventories of key biodiversity features, are viewed as representing an adequate response to the need for action against loss of biodiversity.

#### Further maturation of approach to human rights

Equinor has continued to mature its approach to addressing human rights and tackling inequality with two important milestones in 2022 being the articulation of our just transition framework, and stand-alone human rights statement. We continued our efforts to further integrate human rights practices into the way we work, with a particular focus on addressing indications of forced labour and unacceptable working conditions in our supply chains. We consider our management approach adequate to address the salient risks but recognise the need for more systematic efforts and broader collaborations to tackle systemic issues. We will also continue our efforts to identify meaningful indicators of social and human rights performance with the aim of reporting in a more quantitative fashion in future years.

#### Diversity and inclusion performance satisfactory

The focus in 2022 has been on updating our diversity and inclusion (D&I) ambition, strategy and metrics to better support our business strategy, and reflect our external context, societal expectations and international reporting standards. While diversity targets have been put on hold in 2022 due to internal reorganisation, we continued to measure our inclusion index and use this data to identify actions that drive an inclusive culture. The inclusion index performance remains at the same level compared to a three-year

![img-0.jpeg](img-0.jpeg)

Assembly of Lower Structure for Hiwine Tambon, Wt. ground base, Chiba, Norway.

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42 Performance 2022

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average, and we recognise the opportunities for improvement. The plans for 2023 focus on further operationalising D&I setting targets and actions locally and systematically measuring progress on both diversity and inclusion.

## High value

### Efficient and predictable operations

Equinor delivered stable equity liquids and gas production throughout 2022 at 2,039 mboe per day compared to 2,079 mboe per day for 2021. Divestments including exit from Russia and natural decline were offset by the Snehvit, Peregrino and Njord fields resuming production and start-up of Johan Sverdrup phase 2 and Peregrino phase 2 in the fourth quarter of 2022. Total renewables power generation increased by 5.6% in 2022 to 1,649 GWh, mainly due to the full year production from the Gualizul IIA solar plant in Argentina.

Through efficient and stable production Equinor delivered a unit production cost for 2022 at 6.1 USD/boe (5.6 USD/boe real 2021). Performance came in above target, reflecting the challenging economic environment which developed since setting the target at the beginning of the year. Increasing energy cost due to the energy crisis amplified by Russia's invasion of Ukraine and higher environmental costs resulted in the higher unit production cost for 2022.

### Profitable portfolio

Equinor's strong financial performance and results has placed the company in a robust financial position. We delivered first among peer group on Adjusted Return on Average Capital Employed for the year with a 55% adjusted ROACE, and above average on Relative Total Shareholder Return.

![img-1.jpeg](img-1.jpeg)

Solar plant BeGreen, Poland.

Equinor's oil and gas portfolio is well positioned to deliver energy during an ongoing energy crisis. Strong cash generation enables Equinor to continue reinvestment in an optimised oil and gas portfolio and ensuring high value growth in renewables and low carbon solutions, with USD 8.3 billion organic capex (adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022) in 2022. Equinor continue to optimise and reprioritise the non-sanctioned projects to ensure high value creation though cycles.

### Significant societal value creation

Delivering value to society at large and to our host communities in particular, is fundamental to the success of our ongoing business activities and the energy transition. Our 2022 performance was geared towards ensuring crucial energy production and supply, and providing significant tax contributions, employment and procurement spend. In 2022, Equinor paid over USD 45 billion in taxes and spent around USD 17.1 billion on procurement.

### Integrity and anti-corruption targets met

The number of confirmed corruption cases were zero, which is aligned with the target. 95% of employees confirmed they had read, understood and signed-off the company's Code of Conduct which also addressed the gap identified in 2021.

## Low carbon

### Satisfactory progress on climate performance

Equinor's total scope 1 and 2 GHG emissions were 11.4 million tonnes CO2e in 2022, representing a decrease compared to a three-year average. The CO2 intensity was 6.9 kg CO2 per barrel of oil equivalent, which is less than half of the current global industry average of 16 kg CO2/boe. Equinor also continued its strong methane intensity performance with 0.02% compared to the OGCI average of 0.17%. Equinor's scope 3 GHG emissions (use of solid products) were 243 million tonnes CO2e which is a slight decrease compared to a three-year average. Equinor expects to maintain the same level of oil and gas production until 2030, which may result in increased emissions from use of solid products.

The company is on track towards its ambition of allocating 30% of its gross capex to renewables and low carbon solutions by 2025, with investments increasing to 14% in 2022, compared with 11% in 2021.

To account for both emissions and energy produced, Equinor uses a net carbon intensity (NCI) methodology, which accounts for scope 1, 2 and 3 emissions. Equinor's NCI was 66.5 g CO2e/MJ which is a slight improvement from 67.1 g CO2e/MJ in 2021.

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43 2.1 Always safe

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## 2.1 Always safe

![img-2.jpeg](img-2.jpeg)

Processing plant at Kōrōs,

### Guided by our values

Safety is Equinor's top priority and the core of our license to operate. To us, this means safety for our people, the environment, and the societies in which we operate. Our values open, courageous, collaborative and caring guide us in our continuous work to safeguard people, the environment and assets. We operate in a high-risk industry with regards to both safety and security. As an international energy company, we are highly dependent on strong collaboration with our contractors, who undertake two thirds of our activity.

### Material topics

The *Always safe* material topics have a strong link to how Equinor impacts nature and society. Our double materiality evaluation further highlights that several of our corporate risk factors (crisis management and business continuity, safety and environmental impact, and security threats) may have a material impact on Equinor.

'Safe and secure operations' addresses our commitment to ensure the health, safety and security of our people, and integrity of our operations. The corporate KPIs Serious Incident Frequency (SIF) and Total Recordable Injury Frequency (TRIF) are the most important ways we measure our performance in this regard, and SIF is also part of the framework for executive remuneration.

'Protecting nature' acknowledges our responsibility for nature in relation to acute spills, regular emissions and discharges, as well as our presence in or near protected areas.

Tackling inequality states that we must be active in handling the inequalities we meet in our business, both internally and when interacting with suppliers, business partners and society in general. Among our own employees we work systematically to strengthen diversity and inclusion and reduce our gender pay gap, including the use of quantitative scores and ambitions. Our ambition is that everyone should have equal opportunities regardless of gender, age, nationality, ethnicity, sexual orientation, religion and disability. Through our work with human rights issues, we expand our ownership for safety to the societies in which we operate.

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## 2.1.1 Safe and secure operations

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Ensure the health, safety and security of people, environment and assets. | Equinor's operating activities have actual and potential impacts on people, environment and assets. These include the potential of injury, work related illness and major accidents. | • Crisis management, business continuity and insurance coverage • Digital and cyber security • Health, safety and environmental factors • International politics and geopolitical change • Joint arrangements and contractors • Security | Serious Incident Frequency (SIF) (number per million hours worked) Total Recordable Injury Frequency (TRIF) (number per million hours worked) Completion of cyber security awareness training for employees - since commenced June 2021 | ±0.4 (2022) ● ±2.2 (2022) ● 95% (2022) ● |

- ● Ambition met in 2022
- ● Ambition not met in 2022
- ● Plan in place, on track to reach longer-term ambition
- ● Plan in place, not on track to reach longer-term ambition
- ● **Text in bold:** Key performance indicator

### Contextual introduction

Over the course of 2022, the geopolitical context evolved with the invasion of Ukraine and changes in the related security threats. Running safe, efficient, and predictable operations remained Equinor's priority to continue to be a reliable supplier of energy to the markets in Europe in a highly challenging environment. Equinor collaborated closely with Norwegian authorities to manage the security situation in 2022 and received support to strengthen physical security both offshore and onshore.

Equinor is a broad international energy company and faces a range of potential safety and security risks including well blowouts, ignited hydrocarbon leaks, structural collapses, oil and gas spills and leaks, crime, occupational incidents, and work-related illness. Cyber security continued to be a major risk factor throughout 2022.

Two thirds of our activities are undertaken by contractors. We are fully committed to strong collaboration with our contractors to safeguard people, environment, and assets.

![img-3.jpeg](img-3.jpeg)

The Johan Sverdrup field.
North Sea, Norway.

### Management approach

Our vision is zero harm, which is supported by our strategic pillar Always safe. We believe that all accidents related to people, environment and assets can be prevented. To guide us in our journey towards our vision and strategy, we have selected SIF and TRIF as our key performance indicators. SIF includes major accident hazard and other serious safety accidents and near misses. Near misses are incidents with no actual consequences but with a serious potential.

On 1 July 2022, the Norwegian Ministry of Petroleum and Energy decided that Equinor ASA would be subject to parts of the Norwegian Security Act and later notifications stated that Equinor would become subject to activities which are of vital importance to fundamental national functions. Equinor then began to work on responding to the requirements of the Security Act decision and achieving compliance.

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## Management system

Our safety and security management system capitalises on the collective knowledge gained and good practice established over many years. This is fundamental to ensure safe and efficient execution of activities and clear roles and responsibilities. Based on learning from incidents, a framework for major accident prevention was developed in 2021. The framework set a structure based on recognised industry practice for high-risk industries. The framework for major accident prevention relies on leadership, culture and organisational frame conditions, safe design and practices and safety barriers. Human and organisational performance principles are embedded in the framework. During 2022, the framework for major accident prevention was implemented globally.

### Framework for major accident prevention

![img-4.jpeg](img-4.jpeg)

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## Safety roadmap

The I am safety roadmap sets the direction for Equinor's safety improvement. It guides the safety work and outlines prioritised activities throughout the company across four categories: safety visibility, leadership and behaviour, learning and follow up, and safety indicators.

Human and organisational performance (HOP) principles underpin the way in which we develop a proactive and visible safety culture. The HOP approach provides guidance on how people, technology, organisations and processes interact as a system, and how these conditions can influence the causes of human errors. HOP is implemented in leadership training across the company, and HOP focal points were established and trained in 2022 to support the roll-out and training.

Equinor works together with suppliers and contractors to achieve a standardised and common approach to the safety improvement agenda. Formalised collaborations based on Life saving rules, Annual wheel and common KPIs have been established and committed through signed collaboration charters. Joint meetings across the established safety charters were held in 2022 and alignment on the agreed targets and priorities achieved. All these arenas are open and transparent venues for sharing of learning both ways.

Close cooperation with other operators is vital for the work to succeed. Equinor engages proactively across industry bodies such as the International Association of Oil & Gas Producers (IOGP), Oil Companies

![img-5.jpeg](img-5.jpeg)

International Marine Forum (OCIMF) and the G+ Global Offshore Wind Health & Safety Organisation.

Equinor continuously works to improve and develop new leading indicators to proactively guide the safety approach across the company.

## Crisis and continuity management

To ensure we are prepared, we work to have appropriate emergency response capabilities in place to limit the consequences of incidents, should they occur. Our oil spill response capabilities are in line with

good international practice and leverage expertise and resources made available through our membership of local and international oil spill response organisations. Equinor personnel routinely participate in training and exercises on their roles and responsibilities in emergency response situations, to be sufficiently prepared if, and when, incidents occur. Joint exercises with interaction between internal and external actors were carried out during 2022.

In response to the European security situation a strategic project team reporting to the CEO and the CEC was established from February to December to

ensure risks and challenges were managed holistically across the company. The purpose was to maintain safe and efficient operations and prepare the company for short- and long-term impact. The strategic project team facilitated close interaction and collaboration with key stakeholders, partners and Norwegian authorities and security agencies. Equinor increased the state of alert in Norway and for parts of the international business in September. We strengthened our personnel security efforts to raise awareness and handle insider risk both for our own employees and in collaboration with suppliers. During the year, Equinor continued to strengthen cyber security barriers and

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improved response and recovery capabilities across
the company.

To safeguard onshore plants and offshore installations,
Equinor reviewed its onshore and offshore physical
security and improved the security barriers in line with
the Equinor state of alert requirements and guidance
from the Norwegian authorities.

## Health and working environment

Health and working environment is an integral part
of our efforts to safeguard people. We focus on risk
management and systematic monitoring of work-
related illness related to factors such as chemicals,
noise, ergonomic workplace, and psychosocial aspects.
In addition to monthly reviews of registered cases,

Total serious incident frequency (SIF)

![img-6.jpeg](img-6.jpeg)

we capture information from employees through our
Global People Survey (GPS), which includes questions
related to psychosocial and mental health risk factors.

## Performance disclosure

### Serious incidents

In 2022, we experienced no actual nor potential major
accidents, and no fatalities.

Our serious incident frequency (SIF), which includes
near misses, ended on target at 0.4 incidents per million
work hours. This is an improvement over the five-year
period 2018-2022 from 0.5 to 0.4. The number of
actual incidents has halved in the same period.

Serious oil and gas leakages
(number per year)

![img-7.jpeg](img-7.jpeg)

### Process safety

In 2022 there were 8 serious oil and gas leaks (with
a leakage rate ≥ 0.1 kg per second). This is the lowest
number of leaks ever recorded and came close to
achieving our ambitious 2022 target of a maximum of
seven leaks. No serious well control incident recorded.

There was an increase in Tier 1 process safety incidents
that included loss of primary containment. A total of 14
incidents were classified as Tier 1 in 2022, while the total
number for 2021 was 8. However, the sum of Tier 1 and
the less severe Tier 2 incidents was reduced.

The positive trend on the safety-critical maintenance
backlog continued during 2022. Reducing this backlog
is important in preventing major accidents.

### Personnel health and safety

The total recordable injury frequency (TRIF) increased
to 2.5, up from 2.4 in 2021 and the 2022 target of 2.2
was not achieved. However, more detailed analysis
shows that according to Equinor's internal severity
classification there is a decline in the most serious
injuries.

There was a decline in the number of work-related
illnesses, with 132 recorded cases in 2022. The total
level of absence from sickness has increased since
2020, to reach 5.1 (as a percentage of planned
workhours) in 2022.

Total recordable injury frequency (TRIF)

![img-8.jpeg](img-8.jpeg)

### Health and working environment

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Work related illness | Equinor group | number per year | 132 | 161 | 161 | 135 | 82 |
| Sickness absence | Equinor ASA employees | percentage of planned work hours | 5.1 | 4.6 | 4.2 | 4.4 | 4.6 |

Equinor 2022 Integrated annual report

48 2.1.1 Safe and secure operations

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## Security incidents

Security threats are monitored and reported on a frequent basis and risks are managed holistically across the physical, cyber and personnel domains. Equinor experienced some cyber-related incidents during the year, such as a distributed denial of service (DDoS) attack on an Equinor server, which had limited impact and was rapidly resolved.

There was increased targeted activism against Equinor's operations from environmental groups. None

of the security incidents led to any significant harm to people, assets, or operations.

## Performance evaluation

No fatalities and no actual or potential major accidents were recorded in 2022, and the total number of actual serious incidents is the lowest ever recorded.

The total recordable injury frequency (TRIF) is higher when compared to industry benchmarking. In addition, our sickness absence has increased over the last two

years. These areas represent a challenge for us, and we are working to understand the causes and mitigate risks.

Based on our 2022 performance, we recognise the need to continue to improve our safety performance. Given the measures reinforced in 2022, we consider our approach as adequate to improve our performance and close the gap on our health, safety and security targets. These objectives remain a top priority for Equinor's management.

## Security

|  |  |  | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Percentage of security personnel who have received formal training in the organisation's human rights policies - South America and Africa 1 | Equinor group | percentage | 100 | 91 | 85 | n/r | n/r |
| Security e-learning training for employees and contractors | Equinor group | number of participants | 19,580 | 15,694 | n/r | n/r | n/r |
| Completion of cyber security awareness training for employees - since commencement in June 2021 | Equinor group | percentage | 97.7 | n/r | n/r | n/r | n/r |

$^{1}$ As signatories of the Voluntary Principles on Security and Human Rights (VPSHR), Equinor does not use armed guards unless it is strictly necessary. In certain locations the threat is of such a nature that the arming of guards is crucial, while in others it is not possible to procure security services without the inclusion of firearms.

![img-9.jpeg](img-9.jpeg)

Equinor Fornebu, Oslo, Norway.

Equinor 2022 Integrated annual report

49 2.1.2 Protecting nature

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## 2.1.2 Protecting nature

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Preventing the loss of biodiversity and enhancing the diversity and resilience of ecosystems in which Equinor operates. | Equinor's operating activities have actual and potential impacts on nature. These include the potential for serious uncontrolled discharges, as well as operations in or near protected areas. | Health, safety and environmental factors Policies and legislation Supervisions, regulatory reviews and reporting | Assets and licences in and adjacent to protected areas (number of) | From 2023: New projects in protected areas or areas of high biodiversity value to establish a plan aiming to demonstrate net positive impact |
|  |  |  | Serious accidental spills (number of) | 0 (2022) |

- ● Ambition met in 2022
- ● Ambition not met in 2022
- ● Plan in place, on track to reach longer-term ambition
- ○ Plan in place, not on track to reach longer-term ambition

### Contextual introduction

For Equinor, as a large offshore oil and gas operator with a growing offshore wind portfolio, the management of our activities and their potential impacts on the marine environment continues to be a priority. Historically our operated onshore activities were limited to oil and gas, including drilling and fracturing of wells in the US. Recent investments in and our ambitions for CCS, solar, hydrogen and battery storage projects underline the increasing importance of our management of onshore environments.

Our operations have actual or potential impacts on nature through pollution, including regular and uncontrolled discharges to sea or land and emissions to air. Our use of land and sea areas and related disturbances, including the noise of our operations and the risk of collisions with animals, and introduction of alien invasive species from maritime vessels, may also negatively impact biodiversity and ecosystems. This is of particular importance if our activities are in or near protected areas or areas of high biodiversity value. Through our partners and suppliers, we may also indirectly contribute to impacts on nature, for example

in activities where large quantities of materials like metals, cement and chemicals are used.

There are increasing expectations from policy makers, academia, civil society, and communities among others, for urgent action to reverse biodiversity loss this decade. Global and regional biodiversity policies and risk management and disclosure frameworks are being developed and strengthened in support of the Kunming-Montreal Global Biodiversity Framework. These developments constitute a new set of detailed expectations for companies related to impacts and dependencies on nature and have direct relevance to Equinor's operations and its supply chains. Equinor aims to go beyond the zero-harm principle and take relevant actions to reduce potential adverse impacts and contribute to positive impacts.

The shift to a more resource-efficient, circular economy is a key area increasingly being reflected in stakeholder expectations and commercial agreements, for example in the context of the EU Taxonomy and for new wind farm developments. Another important development is the increased focus on the dependencies of nature and ecosystem services. Relevant dependencies for Equinor include the extraction of natural resources in our supply chain and the bioremediation service that healthy oceans provide when we discharge produced water containing minor fractions of oil and chemicals to sea at some of our offshore platforms.

### Management approach

To manage our impacts on nature, alongside complying with applicable laws and regulations, we aim to apply recognised environmental management practices. This

includes application of the precautionary approach, best available techniques, the mitigation hierarchy and the ISO 14001 environmental management principles.

In 2021, in support of the global ambition of reversing nature loss by 2030, we announced in our Biodiversity position statement ambitions of going beyond the 'do-no-harm' principle by developing a net-positive approach. In 2022, we finalised the first set of methodologies for net-positive impact plans and site-specific inventories of key biodiversity features and started establishing such inventories. From 2023, we will develop plans aiming for a net-positive impact for all new development projects in protected areas or areas of high biodiversity value. The methodologies were developed through pilots in investment projects (including collaboration with bp at our joint offshore wind developments off the US East Coast), and assets in operation, and further implementation is planned. Further information can be found in our sustainability pages at equinor.com.

During 2022, we also followed the work of the Taskforce on Nature-related Financial Disclosures (TNFD) as a member of the TNFD Forum. To prepare for implementation of emerging nature-related risk and disclosure frameworks, we initiated internal materiality assessments and assessments of relevant metrics and indicators.

Our governance, risk and performance framework enables us to systematically manage environmental aspects. Our first priority is to avoid potential negative impacts. If this cannot be done, we aim to minimise them. In the planning phases of all our assets, before construction or operations can commence, a key

Equinor 2022 Integrated annual report

50 2.1.2 Protecting nature

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

part of our management approach is environmental and social risk and impact assessments, including stakeholder engagement. This also includes baseline studies, surveys, monitoring programmes, and collaborative research projects to build knowledge and develop tools. Our oil spill response capabilities are described in section 2.1.1 Safe and secure operations. We publish documentation from project-specific impact assessments on our own website and make biodiversity-related data available through solutions owned by others, such as the Norwegian and UK authorities.

In 2022, we enhanced our focus on environmental regulatory compliance including specific improvement initiatives for our oil and gas assets in Norway. This included improved governance and collaboration, training and awareness initiatives, increased follow-up, and operational measures.

Substitution of chemicals for less environmentally harmful ones is part of our continual improvement efforts. For example, in 2022, we completed a campaign to substitute firefighting foam containing per- and polyfluoroalkyl substances (PFAS) with fluorine-free foams across our Norwegian operations.

We are also piloting an approach for sharing more biodiversity-related data via data.equinor.com. Equinor is a member of the Ocean Decade Corporate Data Group co-hosted by the Intergovernmental Oceanographic Commission (IOC) of UNESCO and Fugro. The aim of this initiative is to make privately held ocean data available for scientific research and

decision making to address the challenges identified through the United Nations Decade of Ocean Science for Sustainable Development.

Growth in renewables is core to our Energy transition plan, and we need to understand how best to achieve this ambition in a nature-positive way. For example, we actively use Hywind Scotland, the world's first floating wind farm, as a test site to increase our knowledge of potential environmental impacts of such assets, and we aim to continue this work with the new Hywind Tampen wind farm on the NCS. Research topics include sound emissions from wind turbines, and we use remote sensing technology to assess potential reef-effects. We also undertake research on potential impacts on birds and how to mitigate them.

Collaboration with external stakeholders is fundamental to our approach, which helps us to build our knowledge and develop innovative solutions to address biodiversity. In 2022, we extended our participation in a range of research programmes and industry partnerships, such as the UN Environment Programme World Conservation Monitoring Centre's (UNEP-WCMC) Proteus Partnership. We also joined a project led by the International Union for Conservation of Nature (IUCN) which aims to identify good practices for renewable energy development.

We are also working to improve our understanding of circular economy opportunities. This includes our approach to waste management in general, as well as to specific recycling opportunities such as wind turbine blades and materials from the decommissioning and

![img-10.jpeg](img-10.jpeg)

Hammerfest processing plant for LNG at Mølleya, Hammerfest, Norway.

removal of offshore facilities. Through the supply chains for our oil and gas, and renewables activities, we purchase large quantities of steel, other metals, cement, and various materials used in drilling and completion of wells. Each of the respective supply chains may impact nature in various ways and have specific waste management needs and practices. We apply the

waste hierarchy to primarily avoid waste generation and follow key circular economy principles such as the re-use, recycling and recovery of materials. The largest waste volumes from our own operations are oily wastewater from oil and gas processing and oiled drill cuttings.

Equinor 2022 Integrated annual report

51 2.1.2 Protecting nature

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Performance disclosure

### Non-GHG emissions, discharges and waste

Selected environmental performance data for 2022 is shown in the table. A complete set of performance data can be found in our Sustainability datahub at equinor.com.

There were no serious accidental spills in 2022, and the total volume of accidental oil spills and other spills was considerably reduced from 2021 to 2022. However, the total number of spills increased slightly. A discharge of 581,000 m3 of treated process water from the Mongstad refinery water treatment plant was reported as a breach of permit. This was because the discharge occurred closer to shore than permitted and the volume was larger and the period longer than initially communicated to the Norwegian Environment Agency.

Over the past four-to-five years, non-GHG emissions to air and regular, permitted discharges of oil in water to sea have trended downwards slightly, or remained at the same level. The increase in SOx emissions from 2021 to 2022 was due mainly to the restart of production at the Peregrino FPSO in July 2022. However, SOx emissions from the asset are lower than in earlier years due to an ongoing fuel switch from diesel to imported natural gas. Hazardous waste quantities increased from 2021, mainly caused by increased volumes of water dispatched from Mongstad for further treatment. This water stems from well cleaning at offshore platforms. Increased quantities of drill cuttings due to increased drilling activity in Norway also contributed to an increase in hazardous waste quantities. Exempt waste quantities are at a low level since only three wells were drilled and fractured during 2022, all of which are at a single location in the US.

| Indicators | Units | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- |
| SOx emissions | ktonnes | 1.1 | 0.9 | 1.3 | 2.2 | 1.8 |
| NOx emissions | ktonnes | 32 | 34 | 36 | 41 | 42 |
| Non-methane volatile organic compounds | ktonnes | 23 | 26 | 35 | 40 | 46 |
| Accidental oil spills (net volume >0) | Number | 111 | 120 | 136 | 219 | 239 |
|  | m3 | 33 | 40 | 154 | 8,913 | 138 |
| Other accidental spills (net volume >0) | Number | 122 | 98 | 117 | 204 | 199 |
|  | m3 | 302 | 3,335 | 3,997 | 57 | 934 |
| Serious accidental spills | Number | 0 | 0 | 2 | 3 | 1 |
| Regular discharges of oil in water to sea | ktonnes | 1.1 | 1.1 | 1.3 | 1.2 | 1.1 |
| Hazardous waste generated | ktonnes | 304 | 280 | 318 | 313 | 244 |
| Non-hazardous waste generated | ktonnes | 37 | 33 | 29 | 40 | 31 |
| Exempt waste generated - drill cuttings and solids from US onshore operations | ktonnes | 1.2 | 0 | 17 | 84 | 55 |
| Exempt waste generated - produced water and flowback water from US onshore operations | million m3 | 0.1 | 2 | 5 | 7 | 6 |

### Biodiversity and nature

In 2022, we expanded the scope of reporting in relation to where we have operations in protected areas and areas of high biodiversity value. We now include linear infrastructure (e.g., pipelines and cables) for which Equinor is technical service provider on behalf of other operators, resulting in inclusion of the Europipe I and II pipelines which both crosses the Wadden Sea UNESCO World Heritage Site (WHS). The Wadden Sea was included in the WHS list in 2009, while the pipeline installations were completed in 1995 and 1999, respectively. We otherwise did not operate within other sites on the WHS list or sites in the International Union.

Equinor 2022 Integrated annual report

52 2.1.2 Protecting nature

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

of Conservation of Nature (IUCN) category 1a ("Strict nature reserve") or category 1b ("Wilderness area").

The number of assets and licences inside or adjacent to protected areas increased from 19 in 2021 to 35 in 2022. This is partially caused by the increase in renewables activity and the increased disclosure scope (as explained above). A summary of our presence in relation to protected areas and areas of high biodiversity value is shown below and a complete overview is available in the ESG reporting centre on equinor.com.

NPI plans are being developed for several assets, for which the Empire Wind project in the US and the Rosebank project in the UK are first in scope.

Withdrawal and consumption of freshwater in 2022 was 6 million m3, a reduction from 8 million m3 in 2021. We had no oil, gas or renewable energy production in, nor did we withdraw water from areas of high or extremely high baseline water stress as defined by the World Resources Institute's Aqueduct® tool.

## Performance evaluation

### Non-GHG emissions, discharges and waste

For 2022, non-GHG emissions to air and the volume of discharges and spills to sea were mainly at the same level or trending downwards. We have also taken measures to reduce SO2 emissions at the Peregrino FPSO. We therefore believe our approach to non-GHG emissions is effective and is producing the intended results.

|  | Assets1 | Licences2 |
| --- | --- | --- |
| In the vicinity (5 - 20 km)3 |  |  |
| - of protected areas | 18 | 1 |
| - of areas high biodiversity value | 17 | 1 |
| Close (1 - 5 km)3 |  |  |
| - to protected areas | 10 | 0 |
| - to areas of high biodiversity value | 2 | 0 |
| Adjacent (< 1 km)3 |  |  |
| - to protected areas | 20 | 0 |
| - to areas of high biodiversity value | 7 | 0 |
| Inside3 |  |  |
| - protected areas | 15 | 0 |
| - areas of high biodiversity value | 32 | 0 |

1. 'Assets' means offshore platforms including subsea tie-ins, onshore plants, pipelines and other linear infrastructure in operation or under construction.
2. 'Licences' includes only those licences where there have been operational activities other than 1) above, e.g., seismic acquisition, exploration drilling, site surveys.
3. If several protected areas (PA) or areas of high biodiversity value (AHBV) are present within a proximity category around a given asset or operation, they are counted as one. If a given PA or AHBV are within proximity categories for several assets or operations, it is counted in for each of these assets or operations. Subsea installations within a field are included in the counting of the platform it is tied in to. For existing linear infrastructure like pipelines, service lines and cables, only the 'Inside' and 'Adjacent' categories are applied. In cases where linear infrastructure is installed during a given reporting year, all proximity categories are applied. Information on geographic location of cases represented in the table above can be found in the 'Sustainability performance data hub' on Equinor.com.

Generated waste volumes, which stay at the same levels as previous years, are mainly dependent on activity levels within drilling, well clean-up and maintenance. We also initiated an improvement initiative to establish a circular economy framework aiming for better management of use, reuse and recycling of resources, including waste.

Although the accidental spill volumes are lower in 2022 compared to the previous year, we are not satisfied with the fact that the number of such spills increased slightly since 2021. As also raised by the Norwegian Environmental Agency, we continue to have compliance issues related to the number of accidental spills and breaches of discharge permits for our operations in Norway. The improvement activity addressing governance, competence, awareness and performance in this area continues.

### Biodiversity and nature

Our approach and ongoing improvement activities related to our impacts on biodiversity are viewed as representing an adequate response to the global expectations and need for action against loss of biodiversity. The increase in numbers showing our presence in or adjacent to protected areas, is the outcome of increased disclosure scope (as explained above) and our expanding renewables portfolio. We continued our implementation of a net positive approach as outlined in our biodiversity position, including relevant disclosure metrics and preparation of NPI plans. The reduced level of withdrawal and consumption of freshwater is considered a positive development.

Equinor 2022 Integrated annual report

53 2.1.3 Tackling inequality - Human rights

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## 2.1.3 Tackling inequality - Human rights

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Respecting human rights in Equinor's own activities and supply chain. | Equinor has operations and supply chains in geographies where human and labour rights may be at risk. With 8,000 direct suppliers, our activities may impact a vast number of people. | Business integrity and ethical misconduct Joint arrangements and contractors Policies and legislation Workforce and organisation | Determine a suitable human rights indicator | Pilot a set of human rights indicators (2022) ● |

### Contextual introduction

Within a turbulent global landscape, ethical and transparent behaviour is a critical foundation for business when considering how to tackle inequality. The Russia-Ukraine war and its ripple effects on access to food and energy, alongside the cost of living crisis, can have significant implications for individuals who already face challenges to their basic human rights. Understanding and managing the risk of adverse human rights impacts related to our activities is at the core of our human rights commitment. This is consistent with the United Nations Guiding Principles on Business and Human Rights (UNGP), the ten principles of the Global Compact and the Voluntary Principles on Security and Human Rights. We recognise that our activities can cause, contribute, or be linked to negative

human rights and other social impacts, especially in jurisdictions with weak regulatory frameworks or enforcement, and where our activities face inherent risks. Addressing gaps towards international labour standards continues to be our main salient issue. Specifically, addressing the possibility of forced labour connected to our supply chains, a situation exacerbated by global instability, increased inequality and continued effects of the Covid-19 pandemic, remains our key concern.

### Management approach

Equinor's human rights policy applies to all our activities. In accordance with the company's risk management system, we identify adverse human rights risks and impacts, and work to prevent, mitigate or remediate as

relevant to each situation. During 2022, we continued our efforts to further integrate human rights practices into the way we work, supported by regular senior leadership engagement.

Focus on labour rights and living wages is identified as one of the core priorities of the Just Transition plan which embeds respect for human rights as fundamental to achieving a just and fair transition.

The executive-level human rights steering committee continues to serve as an advisory group focusing on learning and experience transfer, actions to address Equinor's key human rights risks, and supporting the engagement with and reporting to the CEC and BoD. Areas of discussion have included risk mitigation in project development, enterprise risk level and mitigation, and new disclosure initiatives to drive transparency.

Within Equinor, it is the responsibility of the risk-owner to conclude where human rights due diligence efforts should be prioritised. Defining such priorities is based on regular risk and portfolio assessments and supported by a corporate team of human rights experts who help ensure alignment across the portfolio. In 2022, we continued to look for indications of forced labour and unacceptable working conditions in our supply chains, particularly within fabrication and construction activities across Asia and in core countries such as Brazil. Compared to previous years, risk assessments in the earlier phases of project planning

were prioritised, to better inform decision making and allow for more effective mitigation. To understand risks related to our activities, we perform environmental and social impact assessments. These are an essential part of our project development process and allow for proactive consultation with stakeholders to inform our understanding of community impacts. This includes addressing potential impacts on indigenous peoples, which continue to be a priority. For certain high-risk activities, we may perform additional and specific human rights risk assessments, typically supported by external experts. During project execution, by engaging with potentially affected stakeholders through worker dialogue, we get better understanding of any potential issues and are able to respond with appropriate means of remediation where necessary. We follow up with suppliers based on identified risk, including verifications, tracking of actions and ongoing dialogue. We expect all current and future suppliers to be familiar with and apply our general human rights expectations. We include specific human rights clauses in all our contracts, based on scope and location of delivery, which typically define the risk level.

As we enter 2023, a further strengthening of our management system is underway, including global working requirements for human rights due diligence and new requirements for internal reporting. We continue to build our expert-level corporate capabilities, both through the recruitment of specialists and by improving work processes to better leverage internal capacity and know how.

Equinor 2022 Integrated annual report

54 21.3 Tackling inequality - Human rights

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

The introduction of a standalone Human rights statement is a direct response to the Norwegian Transparency and Human Rights Due Diligence Act and is an opportunity to broaden our external disclosure and communication on our human rights approach, risks and work. To ensure compliance with the Act, Equinor has created an internal procedure for capturing and processing information requests.

## Performance disclosure

### Labour rights and decent work

We require all new suppliers to be screened for social criteria. In line with our approach to performing risk assessments in the early phases of our projects, we assessed 283 suppliers for social impacts in 2022. From this, 154 suppliers were identified as having significant gaps. 84% of these suppliers have through closing of gaps become qualified, while the rest of the suppliers are yet to complete their improvement plans. If we find that a supplier will not implement necessary improvements, the supplier will not be awarded a contract. There were no circumstances where suppliers were not willing to improve to become qualified, and no circumstances where findings or lack of collaborative actions resulted in a need to terminate a relationship.

Aligned to our corporate priorities, we assessed conditions for workers involved in specific construction projects in Malaysia, Singapore, Thailand and

China. Indicators of forced labour as defined by the International Labour Organization (ILO) were identified in one contract we are linked to, mainly related to payment of recruitment fees, retention of identity documents, and restriction of movement. This means that during 2022, we identified 61 individuals as subject to at the minimum one indicator of forced labour within our supply chains. We continued to work with our partners to provide remedy in these instances, including compensation towards undue payments. In 2022 payments were made to 1,791 previously identified workers, to the value of over USD 2 million.

The number of supplier assessments varies with nature and level of activity and is not necessarily comparable

year-on-year. However, our approach to be more targeted towards high-risk sites and suppliers and focus on site visits and worker interviews as opposed to more traditional audits, has resulted in a gradual decrease. We do not find it relevant to set targets towards number of assessments.

Due to publicly reported concerns of serious labour exploitation in solar supply chains, we continued our task force focusing on actions to mitigate short-term and longer-term risks. Actions include increasing and requesting traceability throughout the supply chain, seeking contractual safeguards, engaging with industry initiatives, and investigating opportunities for alternative sourcing routes.

### Labour rights and working conditions in the supply chain

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Supplier human rights (HR) verifications conducted | Equinor group | number | 24 | 30 | 37 | 50 | 75 |
| Workers interviewed | Equinor group | number | 808 | 974 | 343 | 650 | 1,000 |
| Countries in which supplier HR verifications undertaken | Equinor group | number | 11 | 10 | 9 | 16 | 20 |
| Employees working with our suppliers trained (class room course) | Equinor group, operational control | number per year | 264 | 128 | 190 | 409 | 514 |

### Findings in human rights supplier verifications 2022

![img-0.jpeg](img-0.jpeg)

Equinor 2022 Integrated annual report

55 2.1.3 Tackling inequality - Human rights

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## A step-up in shipping and oil and gas storage

During 2022 a special task force, consisting of business line representatives and human rights expertise developed specific requirements and tools to embed human rights due diligence in our shipping and oil and gas storage business. Alongside these efforts, tailormade full-day classroom training was delivered to approximately 70 business professionals.

Human rights were also a core topic at our regular Working safely with suppliers conference. Bringing shipping and storage suppliers together in Stavanger, this event includes leadership expectations, panel conversations, and roundtable discussions to explore common challenges and ways forward.

Supplier dialogue and onsite human rights assessments were performed at two yards where new-build vessels are being constructed.

## Community risks and impacts

No potential or actual adverse impacts of indigenous peoples' rights were identified during 2022. Across our operated assets, Equinor received no eligible grievances according to our internal procedures. Issues raised which are deemed ineligible include, for example, requests for donations, sponsorships, jobs, and requests for information about collaborating or partnering with Equinor in various projects.

Together with Shell, we continued to actively manage the remaining human rights risks and impacts associated with the resettlement of 29 households and the discontinuation of farming and fishing affecting 446 households in the area identified for a potential LNG site in Lindi, Tanzania. Specifically, the focus has been on ensuring the longer-term sustainability for impacted households. Actions include the signature of a Land agreement and the development of an agricultural livelihood baseline assessment, as the preparatory stage for an agricultural livelihood restoration programme to be implemented in 2023.

Through our joint activities to develop a solar park with Scatec in Northern Brazil, we resettled two families who were previously living and working in a location with no rights to the land or formal work contracts. Through strong Equinor-led stakeholder engagement and compliance with International Finance Corporation (IFC) standards and our human rights policy, both families have taken legal ownership of their new property, including land allocation for one family who wanted to continue farming.

## Governance and capacity building

In addition to the human rights steering committee, executive leadership engagement in 2022 included participation in several external cross-sectoral and multi-stakeholder coalitions including a Commissioner role in the Business Commission to Tackle Inequality and board member at the WBCSD Energy Pathway Board, with focus on human rights and the just transition.

There was continued engagement with industry leaders, academia and subject matter experts to share experiences and to align on good practice. Internally, general and specific capability building efforts continued through 2022, focused around new and emerging regulations, and in particular the Norwegian Transparency Act.

We continued to deliver a third-party-facilitated Human Rights in Practice course for supply chain professionals and company representatives, focused on labour rights, Ethics, Anti-Corruption and Human Rights.

## Information requests according to the Transparency Act

In 2022, Equinor received three information requests, which were all responded to within the legislative deadline. In addition, twelve questions and requests for action or information were received but not deemed legitimate under the scope of the Transparency Act. These were treated separately on a case-by-case basis.

Finally, we continued the active participation in mediations related to a tragic crane accident at a South Korean yard in 2017. The process is facilitated by the Norwegian OECD National Contact Point, following the filing of a complaint alleging breaches by several companies, including Equinor, of the OECD Guidelines for Multinational Enterprises.

## Performance evaluation

We continue, as do many, to be challenged to find meaningful and objective assessments of performance within the field of business and human rights. In 2022, as a first step towards maturing a broader performance framework, we piloted a set of internal monitoring indicators relevant to our key risks. We will continue to build on the learnings from this pilot with the aim of reporting in a more quantitative fashion in future years.

As we continue our risk-based approach to human rights due diligence within our global supply chains, we see significant risks of adverse human rights impacts, particularly related to decent work and the possibility of forced labour.

Whilst it is never satisfactory to identify substandard labour conditions, we see that our efforts to understand potential impacts earlier in the project and procurement process as a further step towards more risk avoidance and effective mitigation.

Our efforts in 2022 focused on furthering specific actions towards the construction sector, including building leverage with peers and partners, and particular efforts were made towards our midstream business including shipping and oil and gas storage. A further strengthening of our internal work processes will drive more systematic and documented due diligence across the portfolio.

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56 2.1.4 Tackling inequality - Diversity and inclusion

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ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## 2.1.4 Tackling inequality - Diversity and inclusion

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Creating a diverse and inclusive place to work where equal opportunities and human capital development is fostered, and discrimination is not tolerated in any form. | Equinor employs a large and diverse workforce of around 22000 employees, with operations and value chains in some 30 countries. | Business integrity and ethical misconduct Policies and legislation Workforce and organisation | Inclusion index score (%) | ≥80 (2025) ● |

### Contextual introduction

Equinor has worked systematically with diversity and inclusion (D&I) since 2019. Overall we believe our performance in 2022 has been satisfactory, and we have focused our work on updating the D&I strategy, ambition and metrics that will enable us to strengthen our performance in the future. The aim is to operationalise D&I further into our business and embed in how we develop our people and engage with the societies in which we operate.

Recent years have seen a shift in the expectations from governments, governing bodies, society and employees when it comes to companies' social responsibility and role in D&I. To us D&I aligns with our values, our focus on safety and our purpose as a company. As outlined in our Code of Conduct, we do not tolerate any discrimination or harassment of colleagues, or others affected by our operations, and require everyone to be treated with fairness, respect, and dignity. Our agreement

(likestillingsavtale) between the company and union Industri Energi applies to all employees in Equinor ASA and states that we, as an employer, work to ensure all employees are treated equally regarding recruitment, pay and working conditions, training, career paths, and professional development. Equinor is committed to being transparent about our progress and we participate in several external indexes and networks. These include the SHE Index and the Bloomberg Gender Equality Index, where we have committed to integrate D&I into our business strategy and share experience and learning.

Our updated D&I ambition states 'We are a diverse and inclusive organisation where everyone feels valued and that they belong. Our D&I strategy continues to build on strengthening a safe and inclusive work environment for all and ensuring fair and equal opportunities. The strategy strengthens Equinor's social responsibility to ensure a just energy transition and builds upon the commitments we have made as part of our new value chains.

### Management approach

Our D&I strategy is based on empowering the organisation to drive D&I locally, in line with national reporting requirements and local legislative frameworks. The strategy was developed through extensive external and internal stakeholder engagement and the feedback was focused on the need for local actions, diversity representation in senior leadership, and openness to talk about diversity dimensions beyond gender. The BoD was continually kept informed about progress through formal reporting channels and meetings. Throughout 2022 the CEC members were involved in shaping the strategy, and employees, union representatives, and members of employee resource groups (ERGs) were included in strategy development. A separate working group with Norwegian union representatives was established and met four times throughout the year to discuss D&I actions and progress. The D&I strategy is owned by the Human Resource team. Throughout 2022, Equinor also collaborated with the Norwegian Equality and Anti-Discrimination Ombud to share best practice of how to embed Norwegian legal requirements into business strategy.

At Equinor, we continually work to strengthen understanding of diversity, and we use the diversity data that is available to measure our progress. This includes gender balance, age, and nationality. We know that inclusion is the foundation to ensure a psychologically safe work environment where everyone

feels valued, respected, and that they can contribute and speak up. To monitor our progress on inclusion, we established the Inclusion Index in 2019 and work systematically with initiatives that focus on our culture and inclusion. In addition to strategy development, our key D&I actions for 2022 focused on building inclusion and equity for all our employees.

ERGs are voluntary, employee-led groups that come together with the aim to create a diverse and inclusive workplace, with a particular focus on a common diversity characteristic, cause, or goal. The establishment and support for ERGs is important for Equinor to learn about opportunities and challenges linked to equality and equity, and ensure we set actions that remove barriers for individuals who identify as part of underrepresented groups. In 2022, we focused on senior sponsorship of our ERGs and formalised D&I awareness days. A governance structure for ERGs was developed and will be implemented in 2023.

We continuously work on risks related to discrimination and harassment. In 2022, we identified a small increase in the number of sexual harassment cases. This increase was taken very seriously, and significant actions and initiatives were put in place. This included awareness sessions for leaders, safety moments for general use, and as a topic in the quarterly Safety Wheel. The annual global people survey (GPS) results were further analysed to determine targeted actions. The actions focused on increasing awareness of what constitutes sexual harassment, and ensuring people

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feel safe to speak up and report inappropriate actions and behaviour. In 2023, we intend to continue using metrics to identify signals that may imply discrimination and harassment. One such metric includes the question about 'Zero tolerance for discrimination and harassment' in the GPS which we continually monitor.

We focus on strengthening inclusion of employees who identify as LGBTQ+ and increasing allyship. In 2022, we offered inclusive language training (Rosa kompetanse) through the Norwegian Organisation for Sexual and Gender Diversity (FRI) to our HR, communication and recruitment department, and we are finding ways to provide this training to other groups of employees in 2023. Our focus on safety and inclusion for all LGBTQ+ colleagues was strengthened in line with local Pride events. Senior leadership communication, safety-focused deliverables, and employee engagement were ongoing throughout the year. The Pride Makers ERG increased its activity both internally and externally and gained more members.

As part of our renewables value chain, Equinor made commitments related to D&I which include a focus on ethnicity. This work will continue in 2023. Our ERG Black in Equinor further grew its membership and activity that increased engagement and knowledge about ethnicity and discrimination, with the aim of strengthening inclusion. Looking to 2023 and beyond, we have identified the need to include further work on diversity dimensions as part of our D&I roadmap, such as inclusion of people with disabilities, religion, caring responsibilities, and pregnancy/parental leave. Our updated D&I strategy will help us work more systematically on inclusion across all diversity dimensions.

![img-1.jpeg](img-1.jpeg)

The FPSO at the Peregrina field, Brazil.

### Building a diverse pipeline

Our focus on building a diverse employee pipeline starts with our engagement with students and young people in the locations where we operate. Through our sponsorship programmes, partnerships, and networks we aim to help shape and build a more diverse talent pool for the future. This work is also aligned with our responsibility to ensure a just energy transition. Our focus is on engaging youth and students through

programmes and events that relate to science, technology, engineering, and mathematics (STEM) subjects. This includes initiatives that target girls and women.

Building a robust, sustainable, and diverse pipeline is important to us at Equinor. D&I is integrated in our people processes, from how we recruit, manage talent and succession, to leadership assessment and

deployment. D&I is embedded in how we work with our people, and part of our Annual Wheel for talent and succession reviews. Diversity representation and balance is discussed when building teams, identifying talent, and building succession pipelines. Diversity is also considered when we run our leadership assessments and when selecting employees for our leadership development courses.

In 2022, we hired almost 2,000 new employees and, together with our recruitment partner, we selected a diverse pool of candidates, with particular focus on gender and nationality. We provided hiring managers with recruitment training with the aim to ensure fair and unbiased assessment of all applicants. We work systematically to be an attractive employer and, in 2022 Equinor was ranked the most attractive employer for engineering students in Norway, with an increase in score from female students. We have a 50:50 global ambition for gender and nationality (Norwegian and other than Norwegian) for our corporate graduate programme, and an ambition of a one-third female share for our apprenticeship programme in Norway. A new Human Resource IT system will be implemented throughout 2023-2024 which will give us the opportunity to further improve our recruitment processes and limit biases. We are further re-evaluating our recruitment strategy for the future, and work will commence in 2023.

Equinor 2022 Integrated annual report

58 2.1.4 Tackling inequality - Diversity and inclusion

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Inclusion Index | Equinor Group | number | 77 | 77 | 78 | 77 | 76 |

### Diversity and gender balance

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Gender balance ASA (percentage female) | Equinor ASA | % | 31 | 31 | 31 | 31 | n/r |
| Gender balance total females (percentage female) | Equinor Group | % | 31 | 31 | 31 | 30 | 31 |

### Gender balance in leadership (percentage female)

| • Corporate Executive Committee (CEC) | Equinor Group | % | 36 | 60 | 30 | 30 | 30 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| • Leaders reporting to CEC | Equinor Group | % | 51 | 49 | 45 | 41 | n/r |
| • Business unit | Equinor Group | % | 37 | 38 | 35 | 36 | 35 |
| • Business sector | Equinor Group | % | 36 | 37 | 34 | 35 | 34 |
| • Business department | Equinor Group | % | 32 | 32 | 27 | 24 | 24 |

### Nationality balance total employees

| • Non-Norwegians in Corporate Executive committee (CEC) | Equinor Group | % | 9 | 40 | 10 | 20 | 20 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| • Non-Norwegians reporting to Corporate Executive committee | Equinor Group | % | 16 | n/r | n/r | n/r | n/r |
| • Non-Norwegian in Business Unit leadership positions | Equinor Group | % | 28 | 29 | 35 | 31 | 27 |
| • Non-Norwegians in Business Sector leadership positions | Equinor Group | % | 27 | 29 | 29 | 28 | 29 |
| • Non-Norwegians in Business Department leadership positions | Equinor Group | % | 16 | 18 | 18 | 22 | 20 |
| Earnings ratio - base salary (women/men) | Equinor ASA | % | 100 | 99 | 98 | 98 | 97 |
| Earnings ratio - total compensation (women/men) | Equinor ASA | % | 87 | 86 | n/r | n/r | n/r |

### Diversity and gender balance

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Employees per category in Norway (percentage of women) |  |  |  |  |  |  |  |
| Operation and Support | Equinor Group | % | 23 | 24 | n/r | n/r | n/r |
| Associate | Equinor Group | % | 46 | 49 | n/r | n/r | n/r |
| Professional | Equinor Group | % | 45 | 46 | n/r | n/r | n/r |
| Principal and Support | Equinor Group | % | 34 | 33 | n/r | n/r | n/r |
| Leading | Equinor Group | % | 29 | 29 | n/r | n/r | n/r |
| Manager and Executive | Equinor Group | % | 32 | 31 | n/r | n/r | n/r |

### Diversity in early talent programmes

| Programme | Gender balance (female/male) |  | Nationality balance (non-Norwegian/Norwegian) |  |
| --- | --- | --- | --- | --- |
|  | Hired | Target | Hired | Target |
| Graduates 2022 | 42.58 | 50.50 | 48.52 | 50.50 |
| Apprentices 2022 | 36.64 | 30/70 1 | N/A | N/A |

$^{1}$ The apprenticeship program targets are set aligned to the gender share studying technical fields in Norwegian upper secondary schools.

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59 21.4 Tackling inequality - Diversity and inclusion

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# **Employment**

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Part-time workers (share of women) | Equinor ASA | % | 73 | n/r | n/r | n/r | n/r |
| Temporary workers (share of women) | Equinor ASA | % | 34 | n/r | n/r | n/r | n/r |
| Involuntary part-time (number of employees) | Equinor ASA | number | 0 | n/r | n/r | n/r | n/r |
| Involuntary part-time (share of women) | Equinor ASA | % | 0 | n/r | n/r | n/r | n/r |

Equinor continued hiring temporary employees in 2022. The number of summer interns and apprentices, which is included in this category, was not significant (under 2%).

# **Norwegian statutory parental leave, Equinor ASA 2022**

|  | Number of employees | Average weeks | Median number of weeks |
| --- | --- | --- | --- |
| Female | 133 | 18 | 16 |
| Male | 465 | 12 | 13 |

The numbers above include both statutory paid and employee requested unpaid parental leave.

# **Permanent employees in the Equinor group**

as of 31 December 2022

| Geographical region | Number of employees |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Norway | 19,082 | 18,237 | 18,238 |
| Rest of Europe | 1,243 | 1,427 | 1,381 |
| Africa | 64 | 63 | 73 |
| Asia | 96 | 80 | 68 |
| North America | 697 | 667 | 882 |
| South America | 754 | 652 | 603 |
| Total | 21,936 | 21,126 | 21,245 |

# **Total workforce by region and employment type in the Equinor group in 2022**

as of 31 December 2022

| Geographical region | Permanent employees | Consultants | Total workforce(1) | Consultants (%) |
| --- | --- | --- | --- | --- |
| Norway | 19,082 | 1,292 | 20,374 | 6 |
| Rest of Europe | 1,243 | 28 | 1,271 | 2 |
| Africa | 64 | 2 | 66 | 3 |
| Asia | 96 | 19 | 115 | 17 |
| North America | 697 | 52 | 749 | 7 |
| South America | 754 | 29 | 783 | 4 |
| Total | 21,936 | 1,422 | 23,358 | 6 |
| Non-OECD | 932 | 49 | 981 | 0 |

(1) Contractor personnel, defined as third-party service providers who work at our onshore and offshore operations, are not included.

Equinor 2022 Integrated annual report

60 2.1.4 Tackling inequality - Diversity and inclusion

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Performance evaluation

### 1. Inclusion Index

To leverage the diversity we have in Equinor, we aim to ensure a safe and inclusive culture for all. Since the establishment of the inclusion index in 2019, Equinor has used this data to determine actions and opportunities to strengthen our culture. In 2022, the inclusion index level remained at 77. Systematic follow up of these results will take place early 2023 to determine actions that aim to strengthen inclusion.

### 2. Diversity in leadership

Equinor works systematically to build a sustainable, robust, and diverse leadership pipeline that feeds through to diverse leadership teams. Our focus has been on monitoring gender balance and nationality, while continually working to set up teams that, together, represent diversity beyond these two dimensions. Our systematic focus on developing female leaders is reflected in the continued increase in female leadership over the years, with 51% females among leaders reporting to the Corporate Executive Committee in 2022. We continue to focus on representation of nationalities other than Norwegian in our leadership to ensure we represent our global operations. To strengthen our long-term systematic focus on diversity in leadership, a new D&I KPI will be introduced in 2023, measuring gender balance and nationality representation in top leadership levels. The KPI will set the expectation for leaders across Equinor to focus on diversity in their talent and succession planning. We further continue to work systematically with gender balance across our organization and have

identified the need to set targets and ambitions for gender balance more locally in our organisation. This approach is part of operationalising our D&I strategy in 2023.

### 3. Diversity in talent programs

Equinor continues to invest in our emerging talents through our graduate and apprenticeship programmes. We focus on diversity in our early talent programs and have set targets in terms of gender and nationality. In 2022, we welcomed 130 graduates, representing 32 nationalities. In Norway we welcomed 169 apprentices. This year we saw an increase in female apprentices with 36%, exceeding our gender target of 30% female. We plan to strengthen our gender target for next year to ensure we continue this trend in the future. We also offered a summer internship programme to 172 students, representing 20 nationalities.

### 4. Gender pay gap

Equinor publishes the earnings ratio between males and females for both total compensation and base pay. Norwegian authorities require reporting on full breakdown of earning ratios in all major Equinor locations by Equinor's job structure every other year. Equinor will report on this data annually to strengthen transparency on our gender pay gap. For 2022, we are pleased to see that the gender pay gap for base pay is 0 for Equinor ASA. This reflects the ongoing work to ensure gender-neutral pay decisions. In Equinor ASA, we continue to see a difference in total compensation. Our analysis shows that a key driver for this differential is the higher

![img-2.jpeg](img-2.jpeg)

Equinor Fornab, Oslo, Norway

representation of males in skilled offshore and other operational positions. These roles are typically compensated with a range of additional elements beyond base salary, such as offshore allowances or shift allowances, as well as overtime payments. Such allowances are directly linked to the specific job and individual performance, regardless of gender. The gender imbalance in these roles compared to non-operational onshore roles results in a wider pay gap for total compensation than with base salary. We have identified the need to do further analysis

on the pay gap in our global locations where there is a larger gap compared to Equinor ASA. Further details on our gender pay gap reporting is available in the Equinor data hub.

Equinor has worked systematically with D&I since 2019. Overall, we believe our performance in 2022 has been satisfactory, with a focus on updating the D&I strategy, ambition and metrics relevant to further integration of D&I in our business and strengthening our future performance.

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## 2.2 High value

### Group analysis

2022 witnessed an unprecedented energy crisis in Europe which was exacerbated by Russia's invasion of Ukraine, causing further disruption to the energy markets. Tight energy markets, coupled with increased demand, have led to a prolonged period of extremely high commodity prices, in particular gas which peaked at around 90 USD/MMBtu in August 2022.

In response to the conflict initiated in February 2022, Equinor took decisive action to withdraw from the Russian market and exit all assets in the country. This resulted in an impairment recognised in relation to the Russian assets of USD 1,083 million. All exit activities were concluded within the year, and Equinor has not planned for any new investments in the country as part of its future strategy.

During the year, Equinor achieved some notable operational milestones, including the restart of Snehvit and Peregrino in mid-year and Peregrino phase 2 coming on stream in the fourth quarter. All provided strong contributions towards offsetting the loss of production from the Russia exit.

In response to the energy crisis in Europe, gas production was accelerated on some NCS assets due to a change from gas injection to gas export. This significantly impacted the gas production for the year from E&P Norway, increasing by 8%, and also

contributed to a global 2% increase in gas production for 2022 compared to 2021.

Despite the increase in gas production, restart activity and new assets coming on stream, total liquids and gas production reduced versus 2021. Equinor's exit from Russia as announced early in 2022 and turnaround activity in the US during the year, coupled with the prior year's divestment of Bokken, resulted in reduced production levels for the full year 2022 compared to the prior year.

#### Results

Significantly elevated realised prices and optimised product split have balanced the reduced production levels and are responsible for the significant increase in **net operating income** for the full year 2022 relative to 2021.

Strong results were recorded from European gas and power sales optimisation and trading, as well as high refining margins and high clean spark spread positively contributing to the overall business results in 2022 relative to the same periods in the prior year.

While price realisation has driven an increase in margins, Equinor has also witnessed inflationary pressures increasing its **operating expenses**. Costs pertaining to electricity, well maintenance and environmental taxes were the main contributors to this increase. The growth in **operating expenditure**

| Condensed income statement under IFRS (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | Change |
| Revenues | 149,004 | 88,744 | 68% |
| Net income/(loss) from equity accounted investments | 620 | 259 | >100% |
| Other income | 1,182 | 1,921 | (38%) |
| Total revenues and other income | 150,806 | 90,924 | 66% |
| Purchases (net of inventory variation) | (53,806) | (35,160) | 53% |
| Operating, selling, general and administrative expenses | (10,593) | (9,378) | 13% |
| Depreciation, amortisation and net impairment losses | (6,391) | (11,719) | (45%) |
| Exploration expenses | (1,205) | (1,004) | 20% |
| Net operating income/(loss) | 78,811 | 33,663 | >100% |
| Net financial items | (207) | (2,080) | 90% |
| Income/(loss) before tax | 78,604 | 31,583 | >100% |
| Income tax | (49,861) | (23,007) | >100% |
| Net income/(loss) | 28,744 | 8,576 | >100% |

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is partially masked by the strengthening of the USD
against the NOK.

During 2022 depreciation, amortisation and net
impairment losses reduced by USD 5,328 million to
USD 6,391 million. This movement included a USD 3,339
million net impairment reversal recognised in the year
which was mainly due to updated estimates of value
in use of property, plant and equipment impacted
by internal forecast on cost, production profiles and
commodity prices. The impairment recognised in
the E&P International segment related to Equinor's
decision to exit Russia was more than offset by
impairment reversals primarily related to E&P Norway
price changes and gas export strategy. E&P USA
Gulf of Mexico assets, E&P International production
optimisation profile on Mariner and refinery margin
assumptions in the MMP segment. For more information,
see note 14 to the Consolidated financial statements.

The strengthening of the USD against the NOK
significantly impacted net financial items in the year.
The positive development of USD 1,873 million was
mainly due to a net foreign exchange gain of USD 2,088
million in 2022, driven by the strengthening of the USD
against NOK, compared to a gain of USD 47 million in
2021. In 2022 interest income and other financial items
were USD 1,070 million higher than in 2021 due to an

increase in short-term interest rates. This was offset by
an increase in losses on financial derivative instruments
of USD 1,037 million, resulting from an increase in long-
term interest rates.

Income taxes increased from USD 23,007 million in
2021 to USD 49,861 million in 2022. This is equivalent
to a positive tax rate of 63.4% for 2022, reduced from
72.8% in 2021.

After a history of significant losses, Equinor are now
recording profits in the US. Projected future taxable
income demonstrates that it is probable that the
unused tax losses carried forward could be utilised
in the near future. The tax value of the unused
accumulated losses has been recognised as a deferred
tax asset of USD 2.7 billion, with a corresponding
decrease in income taxes of USD 2.8 billion resulting in
a low reported effective tax rate compared to last year.
For further information see note 11 Income taxes to the
Consolidated financial statements.

A high net income of USD 28,744 million was recorded
for 2022 compared to USD 8,576 million for 2021 and a
net loss of USD 5,496 million in 2020.

# Capital distribution

The strong financial performance of 2022 allowed

Equinor to increase its quarterly dividend to total USD
2,814 million ordinary dividends in the year and USD
6,247 million extraordinary dividends (2021: 2,939
million annual ordinary dividend).

For the fourth quarter of the year, the BoD proposes
to the annual general meeting a cash dividend of
USD 0.30 per share, and an extraordinary quarterly
dividend of USD 0.60 per share. Considering the
proposed dividend, USD 18,485 million will be allocated
to retained earnings in the parent company.

For 2022, Equinor initiated a USD 5,000 million share
buy-back programme which was increased to USD

6,000 million later in the year. The 2022 share buy-back
programme started with the first tranche in February
2022 and ended with the fourth tranche, which was
completed in January 2023. The Norwegian State
share related to the second, third and fourth tranches
of the 2022 share buy-back programme and the first
tranche of the 2023 share buy-back programme,
amounting to USD 4,020 million, will be redeemed in
2023. Redemption is subject to approval in the annual
general meeting in May 2023.

For further information see note 20 Shareholders'
equity and dividends to the Consolidated financial
statements.

![img-0.jpeg](img-0.jpeg)

Processing plant at Karstia,
Rogaland, Norway

| Fiscal year | Ordinary dividend per share (in USD) |  |  |  |  | Extraordinary dividend per share (in USD) |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 | Sum | Q1 | Q2 | Q3 | Q4 | Sum |
| 2020 | 0.09 | 0.09 | 0.11 | 0.12 | 0.41 | - | - | - | - | - |
| 2021 | 0.15 | 0.18 | 0.18 | 0.20 | 0.71 | - | - | - | 0.20 | 0.20 |
| 2022 | 0.20 | 0.20 | 0.20 | 0.30 | 0.90 | 0.20 | 0.50 | 0.70 | 0.60 | 2.00 |

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ADDITIONAL^{}[] INFORMATION

## Review of cash flows

### Consolidated statement of cash flows

| (in USD million) | Full year |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Cash flows provided by operating activities | 35,136 | 28,816 |
| Cash flows used in investing activities | (15,863) | (16,211) |
| Cash flows provided by/(used in) financing activities | (15,414) | (4,836) |
| Net increase/(decrease) in cash and cash equivalents | 3,860 | 7,768 |

### Cash flows provided by operating activities

Total operating cash flow has increased from USD 28,816 million in 2021 to USD 35,136 million in 2022. This increase is due to strong financial results primarily driven by high commodity prices witnessed throughout the year combined with stable production, which is partially offset by a corresponding increase in tax payments of USD 35,268 million.

### Cash flows used in investing activities

Cash flow used in investing activities has remained relatively consistent with the prior year. For further information see note 11 Income taxes to the Consolidated financial statements.

### Cash flows used in financing activities

A significant increase in shareholder capital distribution contributed to cash flow used in financing activities, increasing by USD 10,577 million from USD 4,836 million in 2021 to USD 15,414 million in 2022. In addition, Equinor increased payment of short-term debt, and experienced increased collateral payments relative to the prior year due to increased margin requirements for exchange-traded derivatives.

![img-1.jpeg](img-1.jpeg)

The refurbished platform for the Niord field in the Norwegian Sea under tow from Aker Solutions yard of Stord.

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INFORMATION

## Balance sheet and financial indicators

### Non-current assets

The sum of equity-accounted investments and non-current segment assets was USD 64.414 million for the year ending 31 December 2022, compared to USD 71.213 million for the year ending 31 December 2021. The decrease in non-current assets primarily relates to increased discount rates and strengthening of the USD versus the NOK.

### Gross interest-bearing debt

Gross interest-bearing debt was USD 32.2 billion and USD 36.2 billion at 31 December 2022 and 2021, respectively. The USD 4.1 billion net decrease from 2021 to 2022 was due to the decline in current and non-current finance debt and lease liabilities. Current finance debt and lease liabilities decreased by USD 768 million, mainly due to a decrease in the utilisation of the US Commercial Paper programme, offset by an increase in the current portion of long-term debt, as four bonds will be repaid in 2023. Non-current finance debt decreased by USD 3.3 billion due to reclassification of non-current debt to current debt, currency effects and one repaid bond in 2022 of USD 0.3 billion. The weighted average annual interest rate on finance debt was 3.29% and 3.33% at 31 December 2022 and 2021, respectively. Equivor's weighted average maturity on finance debt was nine years at 31 December 2022 and ten years at 31 December 2021.

### Net interest-bearing debt

Net interest-bearing debt before adjustments was negative USD 13.3 billion and positive USD 0.9 billion at 31 December 2022 and 2021, respectively. The decrease of USD 14.2 billion from 2021 to 2022 was mainly related to an increase in cash and cash equivalents of USD 1.4 billion, a USD 8.6 billion increase in current financial investments and a decrease in gross interest-bearing debt of USD 4.1 billion.

### The net debt to capital employed ratio*

The net debt to capital employed ratio* before adjustments was -32.6% and 2.2% in 2022 and 2021, respectively.

The net debt to capital employed ratio adjusted* was -23.9% and -0.8% in 2022 and 2021, respectively.

The 34.8 percentage point decrease in net debt to capital employed ratio* before adjustments from 2021 to 2022 was mainly related to the reduction of net interest-bearing debt of USD 14.2 billion.

The 23.1 percentage points decrease in net debt to capital employed ratio adjusted* from 2021 to 2022 was related to the decline in net interest-bearing debt adjusted of USD 10.1 billion, offset by an increase in capital employed adjusted* of USD 4.9 billion.

### Return on average capital employed (ROACE)*

The return on average capital employed (ROACE)* was 55.2% in 2022, compared to 22.7% in 2021. The change

from 2021 was mainly due to the increase in adjusted earnings* after tax.

### Cash, cash equivalents and current financial investments

Cash and cash equivalents were USD 15.6 billion and USD 14.1 billion at 31 December 2022 and 2021, respectively. See note 19 Cash and cash equivalents to

the Consolidated financial statements for information concerning restricted cash. Current financial investments, which are part of Equivor's liquidity management, amounted to USD 29.9 billion and USD 21.2 billion at 31 December 2022 and 2021, respectively.

### Financial indicators

| (in USD million) | For the year ended 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Gross interest-bearing debt 1) | 32,168 | 36,239 |
| Net interest-bearing debt before adjustments | (13,288) | 867 |
| Net debt to capital employed ratio* 2) | (32.6%) | 2.2% |
| Net debt to capital employed ratio adjusted, including lease liabilities* 3) | (14.3%) | 7.7% |
| Net debt to capital employed ratio adjusted* 3) | (23.9%) | (0.8%) |
| Cash and cash equivalents | 15,579 | 14,126 |
| Current financial investments | 29,876 | 21,246 |

1) Defined as non-current and current finance debt.

2) As calculated based on IFRS balances. Net debt to capital employed ratio is the net debt divided by capital employed. Net debt is interest-bearing debt less cash and cash equivalents and current financial investments. Capital employed is net debt, shareholders' equity and minority interest.

3) In order to calculate the net debt to capital employed ratio adjusted, Equivor makes adjustments to capital employed as it would be reported under IFRS. Restricted funds held as financial investments in Equivor Insurance AS and Collateral deposits are added to the net debt while the lease liabilities are taken out of the net debt.

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# **Continued operation**

In accordance with §3-3a of the Norwegian Accounting Act, the board of directors confirms that the going concern assumption on which the financial statements have been prepared is appropriate.

# **Group outlook**

- **Organic capital expenditures**1 are estimated at USD 10-11 billion for 2023 and an annual average of around USD 13 billion for 2024-20261.
- **Production** for 2023 is estimated to be around 3% above the 2022 level.
- Equinor's ambition is to keep the **unit of production cost** in the top quartile of its peer group.
- **Scheduled maintenance activity** is estimated to reduce equity production by around 45 mboe per day for the full year of 2023.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create future value, gas off-take, the timing of new capacity coming on stream and operational regularity and levels of industry product supply, demand and pricing represent the most significant risks related to the previous production guidance. Our future financial performance, including cash flow and liquidity, will be affected by the extent and duration of the current market conditions and the development in realised prices, including price differentials and other factors discussed elsewhere in the report. For further information, see section 5.10. Forward-looking statements.

1 USD/NOK exchange rate assumption of 10.

![img-2.jpeg](img-2.jpeg)

The Johan Sverdrup field, North Sea, Norway.

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# Operational data

|  | For the year ended 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 22-21 change | 21-20 change |
| Prices |  |  |  |  |  |
| Average Brent oil price (USD/bbl) | 101.2 | 70.7 | 41.7 | 43% | 70% |
| E&P Norway average liquids price (USD/bbl) | 97.5 | 67.6 | 37.4 | 44% | 81% |
| E&P International average liquids price (USD/bbl) | 92.0 | 67.6 | 38.1 | 36% | 77% |
| E&P USA average liquids price (USD/bbl) | 81.0 | 58.3 | 31.3 | 39% | 86% |
| Group average liquids price (USD/bbl) | 94.1 | 66.3 | 36.5 | 42% | 82% |
| Group average liquids price (NOK/bbl) | 90.6 | 57.0 | 34.3 | 59% | 66% |
| E&P Norway average internal gas price (USD/mmbtu) | 31.2 | 14.43 | 2.26 | >100% | >100% |
| E&P USA average internal gas price (USD/mmbtu) | 5.6 | 2.89 | 1.32 | 92% | >100% |
| Average invoiced gas prices - Europe (USD/mmbtu) | 33.4 | 14.60 | 3.58 | >100% | >100% |
| Average invoiced gas prices - North America (USD/mmbtu) | 5.9 | 3.22 | 1.72 | 83% | 87% |
| Refining reference margin (USD/bbl) | 14.5 | 4.0 | 1.5 | >100% | >100% |
| Entitlement production (mboe per day) |  |  |  |  |  |
| E&P Norway entitlement liquids production | 605 | 643 | 630 | (6%) | 2% |
| E&P International entitlement liquids production | 203 | 207 | 236 | (2%) | (12%) |
| E&P USA entitlement liquids production | 114 | 128 | 163 | (11%) | (22%) |
| Group entitlement liquids production | 922 | 978 | 1,029 | (6%) | (5%) |
| E&P Norway entitlement gas production | 782 | 721 | 685 | 8% | 5% |
| E&P International entitlement gas production | 32 | 40 | 42 | (19%) | (6%) |
| E&P USA entitlement gas production | 165 | 193 | 181 | (14%) | 6% |
| Group entitlement gas production | 980 | 954 | 908 | 3% | 5% |
| Total entitlement liquids and gas production | 1,901 | 1,931 | 1,938 | (2%) | (0%) |

|  | For the year ended 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 22-21 change | 21-20 change |
| Equity production (mboe per day) |  |  |  |  |  |
| E&P Norway equity liquids production | 605 | 643 | 630 | (6%) | 2% |
| E&P International equity liquids production | 281 | 291 | 303 | (4%) | (4%) |
| E&P USA equity liquids production | 127 | 142 | 187 | (11%) | (24%) |
| Group equity liquids production | 1,013 | 1,076 | 1,120 | (6%) | (4%) |
| E&P Norway equity gas production | 782 | 721 | 685 | 8% | 5% |
| E&P International equity gas production | 47 | 51 | 49 | (7%) | 5% |
| E&P USA equity gas production | 197 | 231 | 216 | (15%) | 7% |
| Group equity gas production | 1,026 | 1,003 | 950 | 2% | 6% |
| Total equity liquids and gas production | 2,039 | 2,079 | 2,070 | (2%) | 0% |
| Liftings (mboe per day) |  |  |  |  |  |
| Liquids liftings | 914 | 980 | 1,050 | (7%) | (7%) |
| Gas liftings | 1,009 | 989 | 941 | 2% | 5% |
| Total liquids and gas liftings | 1,923 | 1,969 | 1,991 | (2%) | (1%) |
| Production cost (USD/boe) |  |  |  |  |  |
| Production cost entitlement volumes | 6.5 | 5.8 | 5.1 | 12% | 14% |
| Production cost equity volumes | 6.1 | 5.4 | 4.8 | 13% | 13% |
| Power generation |  |  |  |  |  |
| Total power generation (GWh) Equinor share | 2,661 | 1,562 | 1,662 | 70% | (6%) |
| Renewable power generation (GWh) Equinor share | 1,649 | 1,562 | 1,662 | 6% | (6%) |

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## Sales volumes

Sales volumes include lifted entitlement volumes, the sale of SDFI volumes and the marketing of third-party volumes. In addition to Equinor's own volumes, we market and sell oil and gas owned by the Norwegian State through the Norwegian State's share in production licences. This is known as the State's Direct Financial Interest or SDFI. For additional information, see section 5.1 Board statement on corporate governance - subsection 4. Equal treatment of shareholders and transactions with close associates, and note 7 Total revenues and other income to the Consolidated financial statements.

The following table shows the SDFI and Equinor sales volume information on crude oil and natural gas for the periods indicated.

| Sales Volumes | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Equinor 1) |  |  |  |
| Crude oil (mmbbls) 2) | 334 | 358 | 384 |
| Natural gas (bcm) | 58.6 | 57.4 | 54.8 |
| Combined oil and gas (mmboe) | 702 | 719 | 729 |
| Third-party volumes 3) |  |  |  |
| Crude oil (mmbbls) 2) | 284 | 286 | 318 |
| Natural gas (bcm) | 7.2 | 7.0 | 8.1 |
| Combined oil and gas (mmboe) | 330 | 330 | 369 |
| SDFI assets owned by the Norwegian State 4) |  |  |  |
| Crude oil (mmbbls) 2) | 132 | 143 | 132 |
| Natural gas (bcm) | 42.9 | 41.7 | 38.4 |
| Combined oil and gas (mmboe) | 402 | 406 | 374 |
| Total |  |  |  |
| Crude oil (mmbbls) 2) | 750 | 787 | 835 |
| Natural gas (bcm) | 108.7 | 106.2 | 101.3 |
| Combined oil and gas (mmboe) | 1,434 | 1,455 | 1,472 |

1) The Equinor volumes included in the table above are based on the assumption that volumes sold were equal to lifted volumes in the relevant year. Volumes lifted by E&P International or E&P USA but not sold by MMP, and volumes lifted by E&P Norway, E&P International or E&P USA and still in inventory or in transit may cause these volumes to differ from the sales volumes reported elsewhere in this report by MMP.
2) Sales volumes of crude oil include NGL and condensate. All sales volumes reported in the table above include internal deliveries to our manufacturing facilities.
3) Third-party volumes of crude oil include both volumes purchased from partners in our upstream operations and other cargo purchased in the market. The third-party volumes are purchased either for sale to third parties or for our own use. Third party volumes of natural gas include third-party LNG volumes.
4) The line item SDFI assets owned by the Norwegian State includes sales of both equity production and third-party.

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

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FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Sales prices

The following table presents realised sales prices.

| Realised sales prices | Norway | Eurasia excluding Norway | Africa | Americas |
| --- | --- | --- | --- | --- |
| Year ended 31 December 2022 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 102.0 | 89.7 | 100.9 | 90.0 |
| Average sales price NGL in USD per bbl | 64.2 | NA | 59.7 | 34.9 |
| Average sales price natural gas in USD per mmBtu | 33.4 | 25.8 | 8.4 | 5.9 |
| Year ended 31 December 2021 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 70.0 | 67.0 | 71.0 | 65.7 |
| Average sales price NGL in USD per bbl | 52.5 | 51.8 | 48.9 | 29.5 |
| Average sales price natural gas in USD per mmBtu | 14.6 | 15.4 | 6.9 | 3.2 |
| Year ended 31 December 2020 |  |  |  |  |
| Average sales price oil and condensate in USD per bbl | 39.7 | 37.4 | 41.1 | 36.1 |
| Average sales price NGL in USD per bbl | 25.6 | 30.3 | 23.3 | 11.8 |
| Average sales price natural gas in USD per mmBtu | 3.6 | 3.2 | 3.9 | 1.7 |

![img-3.jpeg](img-3.jpeg)

Hammerfest processing plant for LNB

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## High value - overview of material topics

Our strategic pillar, 'High Value', signifies the priority Equinor places on placing value at the forefront of everything we do. This includes creating value for our customers, shareholders and broader society. Value can be measured by 'how' we perform and operate in addition to 'what' we produce and achieve.

In this chapter, the strategic pillar of High value is covered by the material topics: Efficient and predictable operations, Profitable portfolio, Value creation for society, and Integrity and Anti-corruption. The indicators in the table below are key in monitoring Equinor's value performance.

### Efficient and predictable operations

The core of our business is energy provision to our customers. Optimal operational performance to drive production and how we get the energy to our customers ultimately drives the business and serves the most people. Efficient and predictable operations are of particular importance in the current economic crisis and tight energy supply with high demand. Equity production reflects our ability to produce at a high level over time and through different phases of activity. Production cost equity volumes indicate how cost efficient our production operations are, thereby assessing the value of our volumes.

### Profitable portfolio

To ensure the business is future-proof, robust and attractive to our shareholders now and through the energy transition, our portfolio and the development

of that portfolio needs to be carefully managed and evaluated to ensure profitability now and for the future. Organic capex1 tracks our investment into our portfolio, which is carefully spent using targeted investment criteria. Return on average capital employed2 and relative shareholder return are important ways to track value generated from the portfolio and our ability to competitively distribute that to our shareholders.

### Value creation for society

Equinor can influence socioeconomic development by creating job opportunities, local spending, and taxes. Return of value to the wider community can be assessed through taxes paid, of which Equinor contributes significantly due to high earnings on the NCS and a share of procurement spent locally.

### Integrity and anti-corruption

Integrity and anti-corruption signify the importance Equinor places on 'how' we deliver in a high-value manner. Ethical business practices across the company's global reach are of paramount importance, measured through confirmed corruption cases. For Equinor to speak with one voice in all we do, we need to ensure alignment on our values, which is monitored through a code of conduct sign-off.

The Equinor strategy assumes a sustainable high value strategic pillar achieved through the strategic priorities focusing on optimising oil and gas initiatives while focusing on high value growth in renewables and new market opportunities in LCS.

## HIGH VALUE

| KEY/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | PERFORMANCE 2021 |
| --- | --- | --- | --- | --- |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (mboe per day) | 2022 outlook guiding '2% above 2021'3 | ● | Growth 0% (2019) | 2079 |
| Production cost equity volumes (USD/boe) | <5 USD/bbl (2021-2026)3 | ● | 5.6 | 5.4 |
| PROFITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed (ROACE) (%) | >14% yearly (2022-2030)4 | ● | 55.2 | 22.7 |
| Relative Total Shareholder Return (Relative TSR) (quartile) | Above average in ranking among peers5 | ● | 6 of 12 | 2 of 12 |
| Relative ROACE (peer group rank) | First quartile in ranking among peers5 | ● | 1 of 12 | 2 of 12 |
| Organic Capex (billion USD) | 2022 outlook guiding USD 105 | ● | 8.3 | 7.9 |
| VALUE CREATION FOR SOCIETY |  |  |  |  |
| Payments to governments (billion USD) | Not applicable |  | 49.2 | 11.8 |
| Share of procurement spend locally (%) | Not applicable |  | 88.7 | 91.4 |
| INTEGRITY AND ANTI-CORRUPTION |  |  |  |  |
| Confirmed corruption cases (number of) | 0 (2022) | ● | 0 | 0 |
| Employees who signed-off the Code of Conduct (%) | ≥95% (2022) | ● | 95 | 84 |

Text in bold: Key performance indicator

1 Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU).

2 USD 2021 real base.

3 Rebased for portfolio measures.

4 Based on 2022 CMU price scenario (65 USD/bbl).

5 Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.

● Ambition met in 2022

● Ambition not met in 2022

● Plan in place, on track to reach longer-term ambition.

○ Plan in place, not on track to reach longer-term ambition.

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## 2.2.1 Efficient and predictable operations

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/ IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Optimisation and management of operations, turnarounds, and technological innovation | Europe is dependent on companies which can take the role as a reliable and robust energy producer, more than ever before. Equinor can impact energy security and sustainability in Europe, both in the short- and medium-term. | Project delivery and operations Joint arrangements and contractors Competition and technological innovation Digital and cyber security Crisis management, business continuity and insurance coverage Health, safety and environmental factors | Equity production liquids and gas (mboe per day) Production cost equity volumes (USD/boe) | 2022 outlook guiding 2% above 2021 <5 USD/bbl (2021-2026) |

● Ambition met in 2022
● Ambition not met in 2022
● Plan in place, no track to reach longer-term ambition
● Plan in place, not on track to reach longer-term ambition
**Text in bold:** Key performance indicator

### Contextual introduction

Equinor works to safeguard efficient and reliable activities with a reduced carbon footprint per barrel, from exploration to project development and production, together with partners and suppliers. We focus on developing prospects with a low carbon intensity near existing fields and infrastructure to optimise value creation and prolong field lifetime. Always with safety and security as the highest priority, we deliver competitive projects and world-class drilling performance. Through our technology experience, we create significant value in project development. Our technology development and implementation will be important for operational cost-efficiency and decarbonisation going forward.

In response to the energy crisis, Equinor liaised with partners and Norwegian authorities to increase gas exports to Europe through adjusted production permits and reduced gas injection. Underpinned by safe and dependable operations, the efforts made it possible to increase the natural gas output from the NCS significantly during 2022.

Equinor executes a significant project portfolio and supports value creation through continued efficient and predictable operations. Solid operational performance is delivered with high gas production from the NCS supporting European energy security. Peregrino in Brazil and Hammerfest LNG are safely back in operation, and production is resumed from Njord A and B. New important projects on stream are Johan Sverdrup phase

2 on the NCS and Peregrino phase 2 in Brazil. The first power from the floating offshore wind farm Hywind Tampen was produced in the fourth quarter.

### Management approach

#### Exploration

Continued exploration of hydrocarbons is important for maintaining long-term energy deliveries. On the NCS, we increasingly explore mature areas where discoveries can be tied into existing infrastructure. Utilising previous investments contribute to improved value creation and lower emission. Internationally we prioritise significant wells in growth and frontier basins.

Equinor was awarded 26 new licences in mature areas on the NCS in January 2022 and 26 licences in January 2023. We drill wells based on the following main criteria: High profitability, short payback time and low carbon intensity. In addition, meeting a rising gas demand from Europe, including as input to sectors such as blue hydrogen production, will require exploration for new gas volumes.

Several developments tied back to existing infrastructure were brought on stream over the last years, such as the Snøhvit satellite Askeladd in 2022 and Troll phase 3 in 2021. Subsequent leback developments Kristin South, Hatten East, Irpa and Verdande are underway to add value and extend the field lifetime.

#### Project development

Equinor is responsible for a portfolio of 28 projects in execution, encompassing oil and gas projects combined with electrification projects to contribute to the energy transition.

We will reinvest in our oil and gas activity in an attractive project portfolio with an average breakeven of USD 35 per barrel and a short average payback time. We also continue to invest and grow our project portfolio within renewables and low-carbon solutions. A milestone is the first power expected in 2023 for Dogger Bank, the world's largest offshore wind farm.

We use standardised and digitised solutions to ensure the delivery of competitive projects with long-term value creation and maintain a rigorous quality and cost focus. With the pursuit of 'the perfect well', a modern rig fleet and capitalising on economies of scale, we demonstrate world-class drilling performance. In external benchmarks, Equinor is ranked highly on the facility cost index for completed projects and drilling cost per metre.

We mature promising prospects towards sanction, focusing on economically viable projects with robust technical solutions and the lowest possible emissions.

Improvement activities are undertaken to ensure that our project deliveries remain competitive towards a digital and carbon-neutral future. The investment

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projects are developed in project development centres that strengthen the use of standardised products and tasks, enabling consistent use of best practices driving continuous learning and improvement for project development, together with good capacity utilisation. Fit-for-purpose digital solutions contributing to efficient and transparent decision-making and collaboration are implemented in projects with training and roll-out in the project development centres.

We work to deploy standard procurement specifications and standardised solutions in projects to reduce costs and improve efficiency, seeking to realise portfolio synergies and unlock value through simplification, standardisation and industrialisation. Digital well deliveries and automated well control are being implemented - new ways of working to improve safety, reduce carbon footprint and standardise the best performance. Also, we work closely with suppliers through strategic collaboration to deliver projects successfully.

Technology is an enabler in making projects cost-efficient and profitable. To contribute to efficient and reliable operations with lower CO2 emissions, we aim to deploy innovative technologies in field development within both offshore oil and gas, renewables and low-carbon solutions. Recent examples are Johan Sverdrups use of digital twin and the innovative Hywind technology developed by Equinor and deployed in floating wind developments, such as Hywind Scotland and Hywind Tampen, the first floating offshore wind farm to supply offshore oil and gas installations in operation.

## Operations

We aim to ensure safe and efficient operations, maximising the value potential of our assets worldwide. We transform the NCS using digital and carbon-efficient solutions with electrification on installations.

The operations of our fields on the NCS are supported by three onshore integrated operations centres (IOCs), contributing to optimisation and increased production efficiency. Digital tools ensure faster and better decisions through close interaction between offshore operations and the onshore support centre. Furthermore, the centres strengthen our collaboration with suppliers and partners, enhance the knowledge transfer across the organisation, and benefit from economies of scale. The IOCs contribute to safe and optimal operations of our installations, identifying challenges and preventing shutdowns.

A separate unit within Equinor works to provide value creation for late-life fields. Innovative approaches, such as using ambulating teams has resulted in efficiency gains and eliminated backlog of critical maintenance.

We create value by increasing recovery and prolonging field life from our producing assets, capitalising on existing infrastructure. Projects brought on stream and tied into existing infrastructure in 2022 were the fifth Johan Sverdrup platform, the revamped Njord A and storage vessel, the third Peregrino wellhead platform and a Roncador IOR project in Brazil. The Peregrino field in Brazil and Snahvit in the Barents Sea were safely brought back into production, and the refurbished

Hammerfest LNG plant resumed operations after having been suspended following the Melkaya fire in September 2020. Production started on the Vito deepwater platform, operated by Shell, in early 2023.

We worked with partners and government authorities throughout 2022 to increase gas exports to Europe through increased production permits, reduced gas injection, and optimisation of NGL to increase gas calorific value. The flexibility in our gas portfolio allowed us to transport and sell gas where it was most needed.

Laying the ground for cost-efficient and sustainable operations in the future, we electrify offshore and onshore installations. The electric power supply is provided either through power cables from shore, or by offshore wind turbines, and is operational at several

fields on the NCS. The Johan Sverdrup field, brought into production in 2019, emits only 0.67 kg CO2 per barrel, compared to the global average of 15 kg per barrel, mainly owing to power supply from shore. The Hywind Tampen floating wind farm to supply Gullfaks and Snorre started production in 2022. Work is underway to electrify other NCS fields.

Leveraging 25 years of operational experience and technology within carbon capture and storage (CCS) on the NCS, we work to develop solutions for CCS, expected to play a major part in the Norwegian climate solution. The Northern Lights infrastructure project for CO2 transport and storage is well underway, and the development of a CO2 storage at Smeaheia is under consideration.

## Performance disclosure

| KP/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | 2021 |
| --- | --- | --- | --- | --- |
| EFFICIENT AND PREDICTABLE OPERATIONS |  |  |  |  |
| Equity production liquids and gas (mboe per day) | 2022 outlook guiding '2% above 2021' 1 | ● | Growth 0% (2039) | 2079 |
| Production cost equity volumes (USD/boe) | <5 USD/bbl (2021-2026) 2,3 | ● | 5.6 4 | 5.4 |

Text in bold: Key performance indicator

$^{1}$ Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU).

$^{2}$ USD 2021 real base.

$^{3}$ Released for portfolio measures.

$^{4}$ Based on 2022 CMU price scenario (65 USD/bbl).

$^{5}$ Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022.

● Ambition met in 2022

● Ambition not met in 2022

● Plan in place, on track to reach longer-term ambition

● Plan in place, not on track to reach longer-term ambition

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FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Performance evaluation

### Oil and Gas production

Total equity liquids and gas production was 2,039 mboe and 2,079 mboe per day in 2022 and 2021, respectively. Divestment of assets, including exit from Russian assets, and natural decline contributed to the decrease. The Snehvit, Peregrino and Njord fields resumed production in 2022, and Johan Sverdrup phase 2 and Peregrino phase 2 started production in the fourth quarter of 2022. Lower liquid production was partially offset by increased gas production, as Equinor implemented measures to increase deliveries of natural gas to Europe.

Rebased for portfolio measures the equity production was flat from 2021 to 2022. The result is below the guided outlook ambition of a 2% production increase, mainly due to later startup of new fields than assumed in the initial guiding forecast, and operations.

Total entitlement liquids and gas production was 1,901 mboe per day in 2022 compared to 1,931 mboe in 2021. The production was mainly influenced by the factors mentioned above.

Over time, the volumes lifted and sold will equal the entitlement production, but they may be higher or lower

in any period due to differences between the capacity and timing of the vessels lifting our volumes and the actual entitlement production during the period.

### Unit Production Cost (UPC)

The equity Unit Production Cost (UPC) for 2022 ended on 6.1 USD/bbl (compared towards the 2021 USD real base outlook assumptions, the 2022 UPC ended at 5.6 USD/bbl). The increase in UPC from 2021 to 2022 is mainly related to increase in the energy cost and CO$_{2}$ cost. In addition, there has been portfolio adjustments resulting in increased equity share in Statfjord licence, being a late life field with high UPC.

The UPC ambition communicated at Capital Market Update (CMU) in February 2023 is to keep the UPC below 6.0 USD/bbl (USD 2022 real term) in the period from 2023-2026.

### Renewables Power Generation

From 2021 to 2022, the total renewable power generation increased by 5.6% (from 1,562 GWh to 1,649 GWh). The increased power production is mainly due to a full year operation of the Guafizul IIA solar plant in Argentina.

![img-0.jpeg](img-0.jpeg)

The revamped Njord platform back at the field in the Norwegian Sea, ready for 20 new years of operations.

Equinor 2022 Integrated annual report

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PERFORMANCE

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STATEMENTS

ADDITIONAL
INFORMATION

## 2.2.2 Profitable portfolio

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KPI/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Portfolio development and composition to ensure ongoing profitability with risk assessment and management of current asset base. | Having a profitable and robust portfolio enables Equinor to provide long-term economic value through job creation, tax contributions and providing energy | Prices and markets Hydrocarbon resource base and low carbon opportunities Capital structure, finance, and liquidity Trading and supply activities Policies and legislation Climate change and transition to lower carbon economy | Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030) ● |
|  |  |  | Relative Total Share-holder Return (Relative TSR) (quartile) | Above average in ranking among peers ● |
|  |  |  | Relative ROACE* (peer group rank) | First quartile in ranking among peers ● |
|  |  |  | Organic Capex* (billion USD) | 2022 outlook guiding USD 10 ● |

- ● Ambition met in 2022
- ● Ambition not met in 2022
- ● Plan-in-place, on track to reach longer-term ambition
- ● Plan-in-place, not on track to reach longer-term ambition
- ● **Text in bold:** Key performance indicator

### Contextual Introduction

Equinor's portfolio delivered strong profits based on our ability to maintain stable delivery of oil and gas during an energy crisis in Europe.

The cost inflation and the capacity constraints in the heated supplier market will likely make it more challenging to sanction and to execute new projects

going forward. The overall cost trend was stable within sanctioned project developments through 2022, due to the price conditions in existing contracts. However, the non-sanctioned project portfolio will likely be exposed to major market effects going forward. Most cost increases are expected to come from the cost of equipment and raw materials, reflecting higher commodity prices and an increasingly heated supplier market. Following the market volatility and

![img-1.jpeg](img-1.jpeg)

Trading floor, Dom
Commodities, Denmark

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unpredictability, suppliers are building increased profit risk elements into the contract quotes.

In order to maintain a profitable portfolio and reliably supply energy through the transition, Equinor is transforming its portfolio to become a broad energy company. Equinor believes that by being a leading company in the energy transition, we can not only reduce our own CO2 footprint, but also maximize value for both society and our shareholders. Building a portfolio that has robust profitability through future cycles will be essential for us to deliver on our Energy Transition Plan and provide shareholder value.

## Management approach

### Portfolio composition

Our ambition is to build a focused, carbon efficient oil and gas portfolio complemented with renewable and low-carbon solutions to create long-term value while supplying reliable energy with progressively lower emissions. Future oil and natural gas prices are uncertain and Equinor believes it is positioned to capture the upside and withstand the downside.

As illustrated by the following graph, the share of gross capex* in renewables and low-carbon solutions increased from 11% in 2021 to 14% in 2022. Based on current portfolio forecasts, we are progressing on our ambitions to have more than 30% of our annual gross capex* allocated to renewables and low-carbon solutions in 2025. This growth will be contingent on access and profitability.

### Renewables & Low Carbon Solutions share of gross CAPEX*

![img-2.jpeg](img-2.jpeg)

Due to the long-term nature of investments in energy projects it is expected that our rising share of investments in renewable energy projects will have an increasing impact on the oil, gas and renewables ratios in the total production profile as the projects come into operation. In 2022 Equinor produced a total of 4.3 million TJ of energy, 16 thousand TJ of which was from renewables. By 2030, we aim to reach an installed net capacity of 12-16 GW of renewables, with the potential to produce between 35 and 60 TWh annually, while maintaining our energy production from oil and gas at around the same level as today.

### Investment criteria and portfolio robustness:

Equinor's strategy is to continue to create long-term, high value growth by developing a broad portfolio pipeline and applying strict robustness criteria to investments. To maintain a valuable portfolio in different

### Energy production indicator

(Equinor production, expressed as fossil fuel equivalents)

![img-3.jpeg](img-3.jpeg)

[1] Energy delivered to grid from gas fired power plants based on third-party gas.

[2] The primary energy of fossil-based electricity is equal to the energy content of the combusted fuel. Actual gas consumption data is used to calculate this figure.

[3] The primary energy of renewable electricity is calculated based on the equivalent amount of fossil fuel required to generate that amount of electricity in a standard thermal power plant with an efficiency of 36.8%. This means that renewable energy delivered to grid (expressed as TJ) is multiplied with a factor 1/0.368 = 2.7.

possible energy transition pathways, Equinor has a financial framework in place addressing climate-related risks and the robustness of investment proposals.

### Investment criteria

When a project is being sanctioned, it is assessed on multiple measures:

- Net present value (NPV) to bring value to the company and our shareholders.

- Price sensitivities: to assess the impact of different prices on the investment.
- Other considerations include: safety, security and sustainability, optionality, resource efficiency and alternative cost, strategic value, country risk, operational capacity and capability. We undertake environmental and social impact assessments for all new projects including consideration of potential human rights impacts.

In addition, for oil and gas projects, the following assessments are undertaken:

- Break-even price: to remain robust in low-price scenarios we use a break-even target for all oil and gas projects.
- CO2 intensity: all oil and gas projects are measured on scope 1 CO2 intensity (upstream).
- Carbon pricing: a CO2 cost acts as an additional element of robustness, including application of Equinor's internal carbon price.

Equinor recognises that planned investments that are not sanctioned can have negative economic consequences for connected suppliers, partners, and end users of energy. We therefore work closely with all stakeholders, including local governments to explore solutions that enable Equinor to proceed with investment, or alternatively to find new developers or owners.

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### Portfolio robustness

Equinor maintains significant capex flexibility in our current portfolio, with only our sanctioned projects being committed, representing less than 50% of the total capex between 2024 and 2026. This will allow us to optimise and re-prioritise our non-sanctioned projects to ensure we continue to generate high value through cycles. The volume weighted break-even price of our upstream projects coming on stream in the next 10 years is around 35 USD/bbl. Operated projects already sanctioned have a weighted average break-even price below 30 USD/bbl (calculated from date of sanction). Despite increased competition, we maintain our expectation of real base project returns of 4% to 8% for renewables excluding the effects of farmdowns and project financing.

### Portfolio Stress Test

Since 2016 Equinor has tested the resilience of its portfolio against the scenarios from the IEAs World Energy Outlook (WEO) report. WEO scenarios change from year to year and in the 2022 WEO report they were:

- Stated Policies Scenario (STEPS).
- Announced Pledges Scenario (APS).
- Net Zero Emissions by 2050 Scenario (NZE).

The WEO 2022 scenarios illustrate the wide range of possible demand for different energy sources, including fossil fuels, nuclear and renewables. The scenarios show that relative to 2021, oil and gas energy demand in 2050 could be 10% higher (STEPS) or 40% lower (APS). The NZE scenario shows a significant 70% reduction

in oil and gas energy demand and relies on a rapid growth of alternative energy sources.

We test our portfolio by applying the price assumptions for oil, natural gas and CO2 tax in each of these scenarios and compare the impact towards the value calculated at our commodity price assumptions.4 Equinor's commodity price assumptions are based on management's best estimate of the development of relevant current circumstances and the likely future development of such circumstances. This price-set is currently not equal to a price-set in accordance with the achievements of the goals in the Paris Agreement as described in the WEO Sustainability Development Scenario, or the Net Zero Emissions by 2050 Scenario.

### Portfolio stress test 2022

The Stated Policies and Announced Pledges scenarios have a median expected global temperature rise by 2050 of around 1.95°C and 1.65°C respectively.

The Net Zero Emissions scenario is consistent with limiting global temperature rise to 1.5°C with a 50% probability.

The illustration shown displays the net present value after tax (NPV) in the WEO scenarios relative to value using Equinor's commodity price assumptions.

Compared to last year's report, the impact from the Stated Policies Scenario has increased from 30% to 41%, and the impact from the Announced Pledges Scenario has increased from 12% to 17%. The Net Zero

Emissions Scenario decreases NPV by 22%, 12% less than last year. Our long-term strategy remains firm, however the change from last year is mainly impacted by the bridging of high current commodity prices towards the initial WEO 2030 scenario price point. The resilience in our oil and gas portfolio, combined with our continuous focus on maintaining flexibility, positions us well towards different future scenarios and towards a sustained low-price environment.

NPV is calculated forward looking from 2023. We assume a linear bridging between 2022 prices and the first price point given by the IEA in 2030. This bridging is consistent with methodology used in previous years. However, due to high commodity prices seen in 2022, this methodology leads to some of the IEA scenarios having higher commodity prices than Equinor's commodity price assumptions for some years towards 2030. We further assume a linear

interpolation between IEAs price from 2030 to 2050 and that the price in 2050 is kept constant in real terms thereafter. USD 2 per boe transportation cost for oil production is added to compare with Brent Blend. Exploration activities are not included due to the uncertainties related to potential discoveries and development solutions. The WEO scenarios renders some volumes unprofitable, which could have implications for sanctioning of new projects. Equinor's renewable projects are not fully influenced by the price assumptions in the different scenarios, due to offtake agreements. Furthermore, the scenarios primarily stress oil and gas prices, not reflecting the potential impact on our renewable and low carbon projects in an accelerated transition scenario. Our portfolio flexibility may help us to reduce the negative impact seen in the low-price scenarios by mitigating actions such as re-optimizing the non-sanctioned portfolio.

### Portfolio stress test 2022

![img-4.jpeg](img-4.jpeg)

4 See note 14 Impairments to the Consolidated financial statements for an overview of Equinor's long term commodity price assumptions.

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### Carbon pricing and carbon costs

For portfolio and decision analysis, our base assumptions include a carbon cost for all assets and projects. In countries where no such cost exists, we use a generic cost starting from 2023. We use a default minimum at 68 USD per tonne (real 2022), that increases to 108 USD per tonne by 2030 and stays flat thereafter. In countries with higher carbon costs, we use the country-specific cost expectations. This carbon cost is included in investment decisions and is part of break-even calculations when testing for profitability robustness. The actual CO2 costs for Equinor-operated assets were USD 1,019 million in 20225.

### Carbon cost relative to base assumptions

![img-5.jpeg](img-5.jpeg)

The illustration above shows the total carbon cost in the WEO scenarios, relative to the total cost using Equinor's commodity price assumptions, based on the same volume base. All the WEO scenarios predict lower

absolute carbon costs compared to Equinor's assumed CO2 cost. With Equinor's ambition to reduce operated scope 1 and 2 emissions by net 50% by 2030 relative to 2015, this further supports the adaptation to a low-carbon future.

### Physical Climate Risk

Equinor's portfolio comprises offshore and onshore assets across a diverse set of regions around the world. While the company's core business is centred on the NCS, the internationalisation of the oil and gas portfolio and the move towards a broad energy company has seen an expansion in the company's geographic footprint. The IPCC's sixth assessment report finds that 'climate change is bringing multiple different changes in different regions - which will all increase with further warming'. These include changes to wetness and dryness, to winds, snow and ice, coastal areas and oceans. To assess the exposure of our assets to possible climate-related perils we modeled the portfolio to different climate scenarios using data analytics software. The model assessed the exposure of 118 assets in which Equinor has an equity interest to six climate-related perils: wind, heat, fire, flood, hail and precipitation, providing details on both present-day exposure and the expected change in exposure between 2020 and 2050.

### Portfolio exposure1 to physical climate risk perils according to the RCP 8.52 climate scenario

![img-6.jpeg](img-6.jpeg)

1 Bubble size based on relative size of the book value of assets
2 RCP8.5 is a high emission scenario representing a high emissions future without effective climate change mitigation

The results of the assessment can be seen in the figure above, which also shows the relative book value of different clusters of assets by reporting segment. The results show that the majority of Equinor's assets by book value are subject to a relatively low level of present and future climate-related exposure. Those

assets subject to the highest present-day exposure are offshore installations in the US Gulf of Mexico, while those with the greatest changes in exposure towards 2050 are the renewable installations in South America. Similar results were found for both the RCP 4.5 and RCP 8.5 warming scenarios. While the assessment provides details on the exposure of assets, it is not a direct indication of physical or financial-related risk as all Equinor installations are designed with margins to tolerate a range of meteorological conditions. Installation-specific risk assessments are therefore required to assess the climate risk and to implement mitigating measures (if required). We will continue to assess the current and future exposure of our portfolio to physical climate changes and to implement preventative and mitigating measures.

### Profitable portfolio

By carefully evaluating investment criteria to develop our future portfolio and assessing our current portfolio for physical climate risk exposure, we can ensure we have resilient value creating assets able to be profitable through challenging market conditions and climate scenarios. It also empowers us with knowledge to implement any measures to ensure we are profitable for the future and able to create value for shareholders through capital allocation and distribution.

5 Costs are reported for Equinor-operated assets only, on a 100% basis, cost before tax (tax deductible).

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## Performance disclosure

| KP/MONITORING INDICATOR | 2022 AMBITION (TARGET YEAR) | STATUS | PERFORMANCE 2022 | 2021 |
| --- | --- | --- | --- | --- |
| PROFITABLE PORTFOLIO |  |  |  |  |
| Return on Average Capital Employed* (ROACE) (%) | >14% yearly (2022-2030) 1,4 | ● | 55.2 | 22.7 |
| Relative Total Shareholder Return (Relative TSR) (quartile) | Above average in ranking among peers 5 | ● | 6 of 12 | 2 of 12 |
| Relative ROACE* (peer group rank) | First quartile in ranking among peers 5 | ● | 1 of 12 | 2 of 12 |
| Organic Capex* (billion USD) | 2022 outlook guiding USD 10 6 | ● | 8.3 5 | 7.9 |

Text in bold: Key performance indicator

$^{1}$ Outlook and ambitions presented at CMU 2022 or in Annual report 2021 (forward looking updated in CMU)

$^{2}$ USD 2021 real base

$^{3}$ Rebased for portfolio measures

$^{4}$ Based on 2022 CMU price scenario (65 USD/bbl)

$^{5}$ Adjusted to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022

● Ambition met in 2022

● Ambition not met in 2022

● Plan in place, on track to reach longer-term ambition

● Plan in place, not on track to reach longer-term ambition

## Performance evaluation

### Investments

In 2022, capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in note 5 Segments to the Consolidated financial statements, amounted to USD 10.0 billion, of which USD 8.1 billion were organic capital expenditures$^{7}$(adjusted

to USD/NOK exchange rate assumption in the Outlook presented at CMU 2022, organic capital expenditures$^{7}$ were USD 8.3 billion).

In 2021, capital expenditures were USD 8.5 billion, as per note 5 Segments to the Consolidated financial statements, of which organic capital expenditures$^{7}$ amounted to USD 8.1 billion.

In Norway, a substantial proportion of 2023 capital expenditures will be spent on ongoing development projects such as the Johan Castberg and the Breidabliki and fields with final investment decisions where plans for development and operation (PDOs) have been submitted, such as Munin (formerly Krafia), Halten Øst and Irpa. In addition, capital expenditures will be spent on various extensions, modifications and improvements on currently producing fields.

Internationally, we estimate that a substantial proportion of 2023 capital expenditures will be spent on ongoing and planned development projects such as the Bacalhau field in Brazil and offshore and non-operated onshore activity in the USA.

Within renewable energy, capital expenditure in 2023 is expected to be spent mainly on offshore wind projects and on the acquisition of the solar developer BeGreen announced in November 2022.

Equinor finances its capital expenditures both internally and externally. For more information, see financial debt and liquidity management in the section 2.2 High value.

Equinor has committed to certain investments in the future. A large part of the capital expenditure for 2023 is committed. The further into the future, the more flexibility we will have to revise expenditures. This flexibility is partially dependent on the expenditure joint venture partners agree to commit to. For

further information, see note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements.

Equinor may alter the amount, timing or segmental or project allocation of capital expenditures in anticipation of, or as a result of several factors outside our control.

### Return on average capital employed (ROACE)*

The return on average capital employed (ROACE)* was 55.2% in 2022, compared to 22.7% in 2021. The change from 2021 was mainly due to the increase in adjusted earnings$^{7}$ after tax.

### Relative ROACE* (peer group rank)

On relative ROACE* Equinor was ranked 1$^{st}$ in the peer group, which is a position in the first quartile.

### Relative TSR

Equinor assesses performance against a peer group of 11 European and U.S. companies by relative Total Shareholder Return (TSR). TSR is the sum of a share's price growth and dividends for the same period, divided by the share price at the beginning of the period and is provided by a third-party service provider.

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| (in USD million, unless stated otherwise) | For the year ended 31 December |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 2019 | 2018 |

Share information1)

| Diluted earnings per share (in USD) | 9.03 | 2.63 | (1.69) | 0.55 | 2.27 |
| --- | --- | --- | --- | --- | --- |
| Share price at OSE (Norway) on 31 December (in NOK)2) | 351.80 | 235.90 | 144.95 | 175.50 | 183.75 |
| Share price at NYSE (USA) on 31 December (in USD) | 35.52 | 26.33 | 16.42 | 19.91 | 21.17 |
| Dividend paid per share (in USD)3) | 1.68 | 0.56 | 0.71 | 1.01 | 0.91 |
| Weighted average number of ordinary shares outstanding (in millions) | 3,174 | 3,254 | 3,269 | 3,326 | 3,326 |

1) See section 5.3 Shareholder information for a description of how dividends are determined and information on share repurchases.

2) Last day of trading on Oslo Bars was 30 December in both 2022 and 2021.

3) See note 20 Shareholders' equity and dividends to the Consolidated Financial Statements.

The chart above shows TSR for 2022. Equinor is number six with a TSR of 40% (measured in USD).

The year 2022 was weak for global equity markets but a strong year for oil and gas equities. The strong outperformance for energy markets in 2022 was primarily caused by Russia's invasion of Ukraine, leading to a shortfall in European supply, which had a profound impact on European prices for gas and electricity. This resulted in increased earnings, cash flow and

share price for companies with exposure to European gas markets. No company stood out like Equinor, resulting in very strong relative performance until early September. In the last months of 2022, Equinor showed weaker relative performance due to a fall in European gas prices. This was due to warmer than expected European weather, and the fact that European storage was no longer a big concern for the 2022-2023 winter as European countries were able to find alternative supplies and eventually refilled their gas storage.

Total shareholder return* in %
(1 Jan 2022 - 31 Dec 2022)

![img-7.jpeg](img-7.jpeg)

Total shareholder return* in %
(1 Jan 2018 - 31 Dec 2022)

![img-8.jpeg](img-8.jpeg)

The graph shows the relative performance of Equinor over the five years from 2018 until 2022. Over this period, Equinor ranks number 2 with a TSR of 105%.

Equinor's peer group consist of the following companies: Aker BP, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Galp, Ørsted, Repsol, Shell and TotalEnergies.

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## 2.2.3 Value creation for society

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/ IMPACT ON EQUINOR | KP/ MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Value creation for society, including generating revenue, job opportunities and economic wellbeing through procurement and taxes | Equinor makes substantial payments to governments and can significantly influence socio-economic development where it operates. | Business integrity and ethical misconduct International politics and geopolitical change Joint arrangements and contractors Ownership and action by the Norwegian State | Payments to governments (billion USD) | Not applicable |
|  |  |  | Share of procurement spend locally (%) | Not applicable |

### Contextual introduction

Delivering value to society at large and to our host communities is fundamental to the success of our ongoing business activities and the energy transition. The turbulent times of 2022 have reinforced our belief in our long-standing purpose and the importance of the value we bring to people and society, being a reliable provider of energy to our customers while continuing to take vital steps in our transition.

Energy underpins virtually all current economic activity and is a fundamental human well-being and development component. The jobs we create, taxes we pay and the economic and social benefits we deliver are material contributions Equinor provides to society at large and to the communities in which we are present.

Alongside our tax contributions, a main lever to deliver value to society is through the procurement of goods and services of approximately 7,500 direct suppliers and their sub-suppliers. Thriving domestic supply chains are important for regional economic development and for Equinor as we deliver new projects and invest in long-term infrastructure that will operate for decades. Helping to develop new supply chains is as important as ensuring that our existing suppliers are transitioning along with us to balance creating new jobs and the minimising job losses in the value chain and beyond our industry.

At the core of our efforts to deliver value to society is openness and collaboration with stakeholders and partners to understand their needs and expectations and to help find mutual benefits and lasting solutions to common challenges.

### Management approach

Host communities and value chain partners are key stakeholders in identifying and delivering societal value.

Identification of opportunities starts at the early stages of business development. Local authorities and non-governmental organisations help us understand the needs and expectations of our host communities. These are key to informing business models and project strategies that can deliver lasting value to the community and its support of our activities.

In addition to tax contributions and procurement spending, we deliver socioeconomic benefits such as voluntary or mandatory social investments, sponsorships and donations. In 2022, we prioritised our efforts towards education and vocational training, institutional capacity building, cultural enrichment and support for humanitarian aid. All social investments must comply with internal policies and requirements as well as local regulations.

We measure our performance towards tax contributions and spend on procurement, social investments, sponsorships and donations.

Towards the end of 2022, we launched our Just Transition plan and our commitment to contributing to an energy transition that is just and inclusive and brings long-term social and economic benefits. See

equinor.com for more information about our approach and priorities, including supporting case studies that exemplify how we deliver value to societies accordingly. As we implement this plan, we will evolve our performance framework on material topics, including defining relevant ambitions.

Actual and potential adverse impacts related to our business activities are further addressed in other parts of the report, more specifically in Emissions reductions, Integrity and anti-corruption, Safe and secure operations, Protecting nature, and Tackling inequality - Human rights.

### Performance disclosure

Alongside the provision of reliable energy, we continue creating economic value and societal progress through avenues such as:

- Revenues for countries through the taxes we pay
- Economic opportunities for our direct suppliers and sub-suppliers and further revenues for countries through our sourcing of goods and services
- Job creation, training, skills development, and educational investments and enhancement of opportunities for own workforce and beyond
- Innovation, research and development of technologies

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# Our key numbers:

# Economic value created and distributed

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Tax contribution | Equinor group | USD billion | 45.2 | 9.0 | 3.1 | 8.8 | 9.6 |
| Payment to governments (Total economic contributions to governments) | Equinor group | USD billion | 49.2 | 11.8 | 4.5 | 11.6 | 13.4 |
| Purchase of goods and services (Total procurement spend) | Equinor group | USD billion | 17.1 | 15.7 | 16.1 | 18.4 | 17.4 |
| Total share of spend locally | Equinor group | % | 89 | 91 | 89 | 85 | n/r |
| Corporate donations spend | Equinor ASA | USD million | 7.6 | 1.6 | 1.8 | 0.2 | 0.8 |
| Total social investments spend (excl. Norway and Denmark) | Equinor group | USD million | 6.3 | 1.9 | 1.4 | 3.1 | 2.1 |
| Voluntary social investments spend | Equinor group | USD million | 0.6 | 0.4 | 0.6 | 2.2 | 1.1 |
| Mandatory social investments spend | Equinor group | USD million | 5.7 | 1.4 | 0.8 | 0.9 | 1.0 |

Data and information about employees, apprenticeships and graduates can be found in section 1.9. Our people - To get there. Together.

# **Enabling societal progress through tax contributions**

Paying the right tax where value is created is central to Equinor's commitment to contributing to progress for societies. In 2022, the Equinor group paid USD 45 billion in corporate income taxes and USD 4 billion in royalty payments and fees to local and national governments, including host entitlement. USD 44 billion was paid in Norway, where Equinor has the largest share of its operations and earnings.

The full Payments to governments report for 2022 pursuant to the Norwegian Accounting Act §3-3d

and the Norwegian Security Trading Act §5-5a can be found at our website: equinor.com/reports. We published our second tax contribution report in October 2022, which provides further insight into our approach to tax and explains why and where we pay the taxes we pay.

# **Procurement and ripple effects**

Enabling local value creation is integrated into how we plan and operate our activities across all parts of our strategy. A significant contribution to society in terms of monetary value is our purchase of goods and services, totalling approx. USD 17.1 billion in 2022. Continued sourcing from key suppliers enables them to make long-term plans and investments in securing and creating jobs, developing new skills and technology and investing in their own supply chains.

In Norway, according to a report by Bodø Science Park, we procured goods and services for our operations from over 1,800 suppliers in 152 Norwegian municipalities in 2021, totalling NOK 77 billion. 90% of all deliveries were by Norwegian suppliers, demonstrating their capacity, competence and competitiveness.

In the UK, our upcoming project Rosebank, according to a socioeconomic study by Wood Mackenzie and Vår Energi, if sanctioned, is estimated to create GBP 8.1 billion of direct investment, of which GBP 6.3 billion is likely to be invested in UK-based businesses. Over the 25 years lifetime of the field, Rosebank is forecast to generate a total of GBP 24.1 billion of gross value (GVA), comprised of direct, indirect and induced economic impacts.

# **Enabling local opportunities in offshore wind projects**

Specifically related to floating wind, Equinor has developed a set of design principles and a toolbox to help select solutions that are both cost-effective and provide opportunities for the local supply chain. Water depths, capabilities of local harbours, and the competence and capacity of the local supply chain are some of the main drivers when we consider the technology of choice.

In Norway, the local supply chain has been awarded over 50% of Hywind Tampere's contract value by being competitive in the chosen technologies. This contributes to job creation and local economic value and builds know-how for future industrial projects.

Equinor 2022 Integrated annual report

81 2.2.3 Value creation for society

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

In the UK, the Dogger bank offshore wind farm, which will be the world's largest fixed-bottom offshore wind farm has facilitated local investments, local jobs, contractors, and skills development. During 2022, Equinor led six supply chain workshops to prepare local suppliers for future tenders and collaborating around skills and innovation. Equinor entered into a number of strategic collaborations in North-East England including with the Offshore Renewable Energy Catapult, a UK-wide initiative for innovation in renewable energy.

#### Social investments

In 2022, we spent around USD 6.3 million on social investments internationally, the majority in which were contractual obligations. The investments were often targeted towards underprivileged groups and focused on STEM education and vocational training and skills building to improve employability, as well as healthcare and economic empowerment for women. In 2022, material contributions included support to infrastructure development in Argentina, and support to local capacity building and innovation through our offshore wind projects, Empire Wind and Beacon Wind, in the US. An overview of Equinor's social investments in 2022 is presented in our ESG data hub.

#### Supporting humanitarian efforts in a turbulent year

With 2022 marked by Russia's invasion of Ukraine and a growing humanitarian crisis in its wake, Equinor donated

a total of USD 5 million to humanitarian organisations supporting the people in and refugees from Ukraine, as well as organisations working to alleviate the hunger crisis on the Horn of Africa, that was exacerbated by the war in Ukraine.

In Poland, we supported joint industry initiatives to provide technical assistance and technical equipment to Ukrainian organisations. We also provided financial aid to support refugees that will remain in the country for a longer period through partnering with local NGOs, including those cooperating with UN bodies, like the Polish Centre for International Aid and United Nations Global Compact Poland.

#### Performance evaluation

Overall, our performance on value creation for society was geared towards ensuring crucial energy production and supply, and providing significant tax contributions, employment and procurement spending. Alongside these, we extended humanitarian aid to support direct and indirect victims of the war in Ukraine and continued our local community engagement in the countries of our operations.

Looking ahead, we will pursue opportunities to further strengthen our activities, performance and disclosures, notably as a part of our just transition plan.

![img-0.jpeg](img-0.jpeg)

Equinor Fornebu,

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82 2.2.4 Integrity and anti-corruption

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## 2.2.4 Integrity and anti-corruption

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Preventing corruption and ensuring ethical business culture is embedded across the company through our values, Code of Conduct and compliance programmes. | Corruption undermines legal business activities, distorts competition, ruins reputations and exposes companies and individuals to civil and criminal penalties. | Business integrity and ethical misconduct Joint arrangements and contractors Policies and legislation Supervisions, regulatory reviews and reporting | Confirmed corruption cases (number of) Employees who signed-off the Code of Conduct (%) | 0 (2022) ● ±95% (2022) ● |

### Contextual information

Equinor is a global company, and we are present in parts of the world where there is a high risk of corruption. We believe that an ethical business culture is the cornerstone of a sustainable company, and we continued our work on ethics and compliance throughout 2022. Our commitment to conduct business in an ethical, socially responsible and transparent manner remained constant, irrespective of the impact of the European security situation.

Equinor has a zero-tolerance policy towards all forms of corruption. This is embedded across the company through our values, Code of Conduct and compliance programmes.

### Management approach

#### Code of Conduct

The Equinor Code of Conduct sets out our commitment and requirements for how we do business. It applies to our employees, board members and hired personnel who, each year, are required to confirm that they understand and will comply with the Code of Conduct and take an online test to certify as competent. We expect our suppliers to act in a way that is consistent with our Code of Conduct and we engage with them to help them understand our ethical requirements and how we do business. If our expectations are not met, we take appropriate action.

#### Anti-corruption

Our Code of Conduct explicitly prohibits engaging in bribery and corruption in any form. Equinor's anti-corruption compliance programme summarises the standards, requirements and procedures implemented to comply with applicable laws and regulations and maintain our high ethical standards. The programme lays down the foundation for ensuring that anti-bribery and corruption risks are identified, concerns are reported, and measures are taken to mitigate risk in all parts of the organisation. We have a global network of compliance officers who support the business in identifying and handling business integrity risks and ensure that ethical and anti-corruption considerations are integrated into our activities no matter where they take place. Equinor provides regular training across the organisation to build awareness and understanding of the anti-corruption compliance programme.

#### Competition and antitrust compliance

Equinor's Code of Conduct also addresses the requirement to comply with applicable competition and antitrust laws. Our competition and antitrust programme consists of governing documents and manuals, and training of employees in high-risk positions, as well as regular risk assessments and assurance activities.

#### Reporting and handling of concerns

The Code of Conduct imposes a duty to report possible violations of the Code or other incidents of unethical conduct. We require leaders to take their control

responsibilities seriously to prevent, detect and respond to ethical issues. Employees are encouraged to discuss concerns with their line manager or the line manager's superior, or use available internal channels established to provide support. Concerns may also be reported through our Ethics Helpline which allows for anonymous reporting and is open to employees, business partners and the general public. Equinor has a strict non-retaliation policy.

#### Roles and responsibilities

The legal business ethics and compliance function is headed by the chief ethics and compliance officer (CECO), who reports to the executive vice president legal and compliance. The CECO is also able to report matters directly to the CEO, the BoD, the audit committee (BAC) and the safety, sustainability, ethics committee (SSEC).

#### Collaboration and stakeholder engagement

At Equinor, we believe in the value of collective action to actively promote anti-corruption and revenue transparency. We have long standing relationships with the UN Global Compact, the World Economic Forum's Partnering Against Corruption Initiative (PACI) and Transparency International (TI). In 2022, as a long-standing supporter of the Extractive Industries Transparency Initiative (EITI), we continued to participate actively in the EITI multi-stakeholder process with the clear objective of strengthening revenue transparency and good governance in the sector.

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83 2.2.4 Integrity and anti-corruption

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CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# Operational targets

Employees having signed the Code of Conduct: 95%

We have a target of zero confirmed incidents of corruption which could lead to corporate criminal liability.

# Key initiatives in 2022 KPIs/monitoring indicators and ambitions

The Code of Conduct was updated in 2022, updating several sections and, in particular, those related to communities and environment.

Our training efforts included general and targeted training and awareness sessions and we delivered an increased number of training activities. Ethics and integrity-related leadership performance goals were made available in 2022, and general leadership training programmes were updated to explicitly cover ethics and integrity.

Delivering mandatory and voluntary social investments is one of our tools to contribute towards tackling societal challenges. However, if not done the right way,

social investments can expose Equinor to significant business integrity and reputational risks. To reduce this risk, our requirements and guidance on management of social investments was strengthened in response to changing business needs and identified challenges.

# Performance evaluation

The number of cases received through the Ethics Helpline was 192 in 2022, of which 126 were reports of concerns. This was an increase from 2021. The cases

included 60 reported concerns relating to harassment, discrimination and other conduct affecting the working environment. We experienced a decrease in the number of cases related to our suppliers.

The Code of Conduct yearly sign-off is a mandatory competence requirement for all employees in the company. By following up on the sign-off rates for each business area we were able to monitor the trends closely and saw a significant improvement compared to 2021.

Looking ahead, we maintain our commitment to ethical, socially responsible and transparent business conduct. We will continue to strengthen our risk-based compliance programmes and monitor their effectiveness.

# Performance disclosure

# Ethics helpline

| Indicator | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cases and inquiries to the Ethics Helpline | Public | number | 192 | 160 | 183 | 194 | 182 |
| Confirmed corruption cases | Public | number | 0 | 0 | n/r | n/r | n/r |

# Ethics and compliance training (1)

| Indicator | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| People completing Code of conduct training and sign-off (Employees) | Equinor group | % | 95 | 84 | 87 | 93 | 83 |

# Ethics helpline cases 2022$^{1)}$

![img-1.jpeg](img-1.jpeg)

- People and workplace
- Partners and supply chain
- Asset and business integrity
- Tests, questions and other
- Environment and communities
- Safety and security

1) Cases reported through internal channels outside Ethics Helpline are not included.

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84 2.3 Low carbon

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## 2.3 Low carbon

The need for rapid emission reductions and systemic transformation toward net zero

### Urgency of the climate challenge

The Paris Agreement calls for rapid emission reductions in accordance with the best available science to achieve a balance between manmade emissions and sinks of greenhouse gases in the second half of this century. Since the signing of the Paris agreement, the scientific and physical evidence of climate change has become ever more apparent. In order to meet the goals of the Paris Agreement, the world's energy systems will need to undergo a transformation in the coming years to decarbonise. According to the Intergovernmental Panel on Climate Change's sixth assessment report, 'reducing GHG emissions across the full energy sector requires major transitions, including a substantial reduction in overall fossil fuel use, the deployment of low-emission energy sources, switching to alternative energy carriers, and energy efficiency and conservation'. The International Energy Agency (IEA) estimates that clean energy investment must rise above USD 4 trillion by 2030 for the world to be on track to meet its Net Zero Emissions by 2030 scenario$^{8}$. Companies, customers, governments and society at large will all have to collaborate, innovate and adapt in

new ways to ensure a sustainable future. It will require the development of new technologies, new value chains, and new ways of working, as well as firm leadership from policymakers. It will also require continuity and the provision of stable, reliable and affordable energy that the global economy depends on.

### Our response

Equinor is committed to long-term value creation in support of the goals of the Paris Agreement. We aim to be a leading company in the energy transition and have set an ambition to reach net zero by 2030. We realise that this will be a journey that will require an evolution of the way energy is produced and consumed globally.

As an industrial company focused on the production and delivery of oil, gas, electricity and low-carbon products and services, our business has both direct and indirect negative impacts. Our operations generate significant greenhouse gas emissions (in 2022, for example, we emitted 11.4 million tonnes of carbon dioxide equivalent (CO$_{2}$e) from our own operations). And, of course, the emissions associated with the use of the products we sell are many times higher than those from our direct operations, equivalent to 243 million tonnes of CO$_{2}$e in 2022.

![img-2.jpeg](img-2.jpeg)

Northern Lights, the development of infrastructure for transport and storage of CO$_{2}$. Oygarden, Norway.

$^{8}$ World Energy Outlook, November 2022

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ABOUT EQUINOR
AND OUR STRATEGY

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STATEMENTS

ADDITIONAL
INFORMATION

We have already developed an upstream portfolio that is one of the most carbon efficient in the industry. Our ambition to reduce net group-wide operated scope 1 and 2 emissions by 50% by 2030, shows that we are focused on medium-term actions consistent with the goals of the Paris Agreement and a 1.5-degree pathway.

Rapidly reducing our own emissions is necessary, but not sufficient. To be an effective agent of change in the energy transition, we must help society decarbonise by providing our customers and end-users with energy that has lower - and eventually net-zero - emissions. To achieve this, we have to apply our experience and competence from oil and gas to new sectors of the energy system. We have built a robust offshore wind portfolio and aim to further strengthen our leading position in floating offshore wind. We are shaping the low carbon industry, leveraging our advanced industrial starting point on the Norwegian continental shelf (NCS) and proximity to the European market.

Equinor's 2022 Energy transition plan laid out our strategy for delivering on our ambition to become a net-zero company by 2050, including emissions from production and final consumption of the energy we produce. In addition to the main corporate decarbonisation and transition ambitions, the plan included a series of short-term industrial project milestones that demonstrated our concrete commitment to delivering our transition strategy. A summary of progress against the Energy Transition Plan can be found in the introductory sections of this report and more detail on our net zero pathway and emissions reductions is provided below.

![img-3.jpeg](img-3.jpeg)

Digital twin in use at Northern Lights, the development of infrastructure for transport and storage of CO2, Øygarden, Norway.

### Risk management

To deliver on our transition strategy we have put in place a framework for climate-related risk management that is informed by the concept of double materiality. Equinor assesses climate risk from two perspectives: transition risk, which assesses the financial robustness of the company's business model and portfolio in various decarbonisation scenarios; and

physical climate risk, which assesses the vulnerability of our assets to climate-related perils in different warming scenarios. A full description of how we integrate climate considerations into our investment and valuation criteria, and details of our CO2 price forecasts is published in presented in section 2.2.2 Profitable portfolio. To assess and manage climate-related risks we also use scenario and sensitivity analysis, including

net present value (NPV) stress tests against all relevant scenarios published by the IEA. Details of our stress testing and scenario analysis are published in section 2.2.2 Profitable portfolio. For physical climate risk, we map the exposure of our global asset portfolio against a range of climate-related perils and scenarios, including heat, flood, fire, and wind. The results of the 2022 mapping can be seen in section 2.2.2 Profitable portfolio.

Equinor aligns its climate-related disclosures with the recommendations of the Task Force on Climate related Financial Disclosures (TCFD) and we include explicit reference to the TCFD recommendations in section 5.6.

### Using our voice

Our advocacy and policy engagement is also conducted in line with the objectives of the Paris Agreement. Equinor promotes policies supporting the goals of the Paris Agreement and forceful actions to accelerate the energy transition. We also actively work to ensure that the policy positions and advocacy of our membership organisations is supportive of and aligned with the objectives Paris Agreement. To ensure transparency, we conduct and publish an annual review of industry association and membership organisations showing any areas of potential misalignment. Our climate policy positions and our expectations of our membership associations are available on Equinor.com. We engage with a wide range of external independent benchmarking and assessment organisations, including Climate Action 100+, COP, InfluenceMap and others, in an effort to be a proactive stakeholder in the development of effective frameworks for assessing corporate performance in the energy transition.

Equinor 2022 Integrated annual report

86 2.3.1 Net zero pathway

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## 2.3.1 Net zero pathway

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/ IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Achieving net-zero greenhouse gas emissions by 2050, including emissions from the use of our products | Equinor has significant scope 1, 2 and 3 GHG emissions (114 + 243 million tonnes CO 2 e). | Climate change and transition to a lower carbon economy Competition and technological innovation International politics and geopolitical change Policies and legislation Prices and markets Ownership and action by the Norwegian State Workforce and organisation | Net carbon intensity (gCO 2 e/MJ) | -20% (2019 → 2030) -40% (2019 → 2035) ● |
|  |  |  | Renewable energy installed capacity (GW) | 12-16 installed (2030) ● |
|  |  |  | Annual gross CAPEX to renewables and low carbon solutions 7 (%) | >30% (2025) >50% (2030) ● |

- ● Ambition met in 2022
- ● Ambition not met in 2022
- ● Plan in place, on track to reach longer-term ambition
- ● Plan in place, not on track to reach longer-term ambition
- ● Text in bold: Key performance indicator

### Investing in a broad energy portfolio to accelerate systemic transformation

To meet the climate challenge while also addressing the need for energy, Equinor has developed a metric that shows how we are progressing towards our own

net-zero ambition while simultaneously investing in the transformation of the energy system that will be necessary to realise the goals of the Paris Agreement. The Net Carbon Intensity (NCI) metric tracks our net emissions, including scope 3 emissions from the use of our products, in relation to our total energy

production from oil, gas, electricity, and hydrogen. Using a combination of all of the options available to us as a broad energy company, our NCI metric shows how we will deliver energy with lower emissions over time, helping our customers in their efforts to deliver emission reductions. Our ambition is to reduce our NCI of 67.8g CO$_{2}$e/MJ in 2019 by 20% by 2030 and by 40% by 2035. By 2050, we aim to bring the NCI down by 100% - to net zero. Equinor's interim NCI ambitions show reductions by 2030 and 2035 greater than those implied by the IEAs. Announced Pledges Scenario (APS), which assumes that all climate commitments made by governments around the world as of COP26, including Nationally Determined Contributions (NDCs) and longer-term net-zero targets, will be met in full and on time.

Our strategy for achieving net zero has been informed by engagement with a wide range of stakeholders, including shareholder and shareholder groups, government, non-governmental organisations, academia, and civil society.

In addition to the products and services we provide to our customers, we recognise that we have the potential to have a positive impact on global emissions reduction through engagement with our suppliers. As a major consumer of goods and services, Equinor has the opportunity to drive emissions reductions among

its suppliers and sub-suppliers. Our Energy transition plan included a commitment to 'work with our suppliers and customers, host governments, and civil society to develop the business models, policies and frameworks to enable the world to achieve net zero by 2050'.

### Management approach

Equinor is applying its competitive advantage to create value in new areas of the energy system and to deliver on our net zero ambition. We have an ambition to allocate more than 50% of our gross capital expenditure to renewables and low-carbon solutions by 2030. A central element in this effort is our ambition to become a leading global player in offshore wind. We will accelerate growth in renewables to strengthen our competitive position and achieve the economies of scale necessary to improve returns. To build a competitive wind portfolio, we are applying our experience in technology, innovation and project delivery and building new competence and capacity to support the transition. We have an ambition to have a total of 12-16 GW of installed equity-based renewable capacity$^{7}$ by 2030.

To complete our development as a broad energy company, we are building a platform for growth in low carbon solutions with a focus on hydrogen and

$^{7}$ Installed capacity, including capacity from financial investment

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

CCS. This is a natural next step for Equinor: a way for us to decarbonise our supplies of energy and to help industrial end-users realise their climate ambitions. Building on our strong position in industrial value chains in Europe, we are applying our technical and engineering competence to bring low-carbon products and services to the market. We are developing a broad funnel of options to be at the forefront of maturing these decarbonisation markets over the next ten years. We have established early positioning in CCS licences and high-impact hydrogen projects in Northwest Europe, working with commercial partners and governments to create new value chains. We have an ambition of developing a CO$_{2}$ transport and storage capacity of 5-10 million tonnes by 2030 and 15-30 million tonnes by 2035.

Our success in achieving our net zero ambition will require collaboration with partners, customers, suppliers, and host governments on the necessary actions to accelerate the energy transition. Such collaboration takes the form of engagement and advocacy on policy issues; strategic partnerships with companies across the energy value chain; dialogue and commercial agreement with customers; consultation and investment in host communities; engagement with suppliers and sub-suppliers; and participation in initiatives with academia, NGOs, and other stakeholders.

Success also requires an internal governance and performance framework that is informed by our transition ambitions. Equinor's remuneration framework contributes to the business strategy, long-term interests and sustainability of the company. In order to better reflect Equinor's strategy and the energy transition, the

instructions for the BoD compensation and executive development committee were updated in 2020 to include climate and energy transition-related goals as part of the remuneration policies. The CEO, his direct reports and Equinor's wider leadership are assessed based on results within a broad range of topics, including safety, security and sustainability. The ability of executive leaders to be role models and drive the energy transition forward forms part of the holistic performance evaluation.

#### Investing in the future energy system

To deliver on our medium-term ambitions on the route to net zero, we are positioning ourselves through project execution, organic business opportunities, strategic business development and through the establishment of commercial agreements and investments in low-carbon value chains. In 2022 we increased our share of gross capital expenditure to renewables and low carbon solutions to 14%, up from 11% in 2021. In our renewables business, we demonstrated real progress in 2022 on both project execution and on building the portfolio pipeline. In addition to laying the first foundations at the Dogger Bank offshore wind farm in the UK and completion of the Stepien solar project in Poland, we put in place further building blocks for our renewables strategy. Equinor's selection as a provisional winner of a lease area on the Outer continental shelf off California provides us with a platform to deliver on our goal of becoming an offshore wind major in one of the world's most attractive growth regions for floating offshore wind, while the acquisition of BeGreen, a Danish solar developer with a strong project pipeline enables will enable us to deliver on our goal of becoming a market-driven power producer. For our Low Carbon Solutions business 2022 was a year

#### Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Oil and gas production | Operational control | million barrels of oil equivalent (mmboe) | 1,129 | 1,115 | 1,106 | 1,055 | 1,077 | 1,099 | 1,030 |
| Oil and gas production | Equity basis | million barrels of oil equivalent (mmboe) | 744 | 759 | 758 | 757 | 770 | 759 | 723 |
| Energy delivered to grid from gas fired power plants based on third party gas | Equity basis | GWh | 1,012 | 0 | 0 | 0 | 0 | 0 | 0 |
| Renewable energy delivered to grid | Equity basis | GWh | 1,641 | 1,562 | 1,662 | 1,754 | 1,251 | 830 | 423 |
| Renewable energy generated for use by Equinor | Equity basis | GWh | 8 | 0 | 0 | 0 | 0 | 0 | 0 |
| SUM renewable energy generated | Equity basis | GWh | 1,649 | 1,562 | 1,662 | 1,754 | 1,251 | 830 | 423 |
| Renewable installed capacity | Operational control | GW | 0.9 | 0.7 | 0.7 | 0.7 | 0.8 | 0.8 | 0.3 |
| Renewable installed capacity | Equity basis | GW | 0.6 | 0.5 | 0.5 | 0.5 | 0.6 | 0.3 | 0.1 |
| Net carbon intensity | Operational control/Equity basis | g CO 2 e per MJ energy produced | 66.5 | 67.1 | 67.8 | 67.8 | n/r | n/r | n/r |
| Scope 3 GHG emissions (GHG Protocol cat. 11, use of solid products) | Equity basis | million tonnes CO 2 e | 243 | 249 | 250 | 247 | 252 | 250 | 239 |
| CO 2 emissions captured and stored per year | Operational control | million tonnes | 0.5 | 0.3 | 0.9 | 1.2 | 1.3 | 1.2 | 1.4 |
| Accumulated CO 2 emissions captured and stored | Operational control | million tonnes | 26.3 | 25.8 | 25.6 | 24.6 | 23.4 | 22.2 | 20.9 |
| Top suppliers, with near-term emissions reduction targets, absolutely or intensely basis, within 2030 [7] | Equinor group | % | 65 | n/r | n/r | n/r | n/r | n/r | n/r |
| Gross capital expenditure in renewables and low carbon solutions, share of total | Equinor group | % | 14 | 11 | 4 | 2 | 4 |  |  |

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88 2.3.1 Net zero pathway

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

of continued progress in developing the value chains that will enable hydrogen and CCS to be key enablers in the energy transition. Commercial agreements and partnerships with key European peers and counterparties - in particular the world's first cross-border CO$_{2}$ transportation between the Northern Lights partnership and fertiliser company Yara - show that we are progressing the business models to take forward the LCS portfolio. Awards of new CO$_{2}$ storage licenses in Norway and the UK as well as government support for pioneering cluster projects such as H2H Saltend were key enablers to deliver on our ambition to deliver on our 2030 and 2035 ambitions for CCS and hydrogen.

### Net Carbon Intensity

Our 1% reduction in net carbon intensity in 2022 compared to 2021 (66.5 down from 671) was driven mainly by the relative increase in the share of gas to oil production in our production portfolio. Despite increasing our share of gross capital expenditure to renewables and low carbon solutions, the contribution of renewable energy in our portfolio remained relatively unchanged from 2021, reflecting the long lead times of the capital cycle between investment and commissioning. Similarly, the amount of CO$_{2}$ that we transported and stored in 2022 was 0.5 million tonnes. This is higher than in 2021 but lower than the historical 5-year average. The main reason for the lower CO$_{2}$ transport and storage levels is the shutdown of the Hammerfest LNG terminal for repairs until June 2022 and the reduced CO$_{2}$ injection at the Sleipner field. Both renewable output and CO$_{2}$ storage and transport volumes will increase in the coming years as projects

reach maturity. The reduction in our scope 3 emissions from use of products sold was principally due to a reduction in our overall equity production volumes. The addition of the Triton CCGT power generation plant did not materially affect the portfolio-wide NCI.

### Supply chain decarbonisation

For the first time in 2022, we engaged a systematic evaluation of our supplier base to assess emission reduction plans and strategies. Among those suppliers that account for the majority of Equinor's procurement spend, 65% were found to have a stated emissions reduction target on an absolute or intensity basis by 2030. We will continue to work with suppliers and sub-suppliers to increase this share and to explore tools and ways of working to increase transparency and reduce emissions across our supply chain.

### Performance evaluation

Our performance in 2022 shows that Equinor is building the foundation to deliver on its net zero ambitions. As a leading indicator, capital allocation is the metric that showed the most progress in 2022 as we increased the share of gross capex' to low and zero carbon activities. Given the long lead times needed to bring renewable and low-carbon projects onstream, we saw relatively little progress in the generation from renewable energy sources or the volumes of carbon stored and transported in 2022. Consequently, there was relatively little change in the company's overall net carbon intensity. The 2% reduction in NCI from the 2019 baseline is in line with expectations. As deployment of renewable and CCS accelerates in the

![img-4.jpeg](img-4.jpeg)

Triton Power, Saltend Chemicals park, Hull, UK

coming years, we expect to see greater progress in NCI reductions, with the majority of progress towards the 20% reduction ambition in 2030 expected in the second half of this decade. Meeting the 2030 and 2035 NCI ambitions will put us well ahead of society's progress towards net zero in 2050 as outlined in our Energy transition plan. Equinor's ability to deliver on its transition ambitions and its net 2050 ambition will continue to be dependent on enabling policy and regulatory frameworks. The changed energy security situation in Europe has resulted in both positive and

negative drivers for Equinor's energy transition. Increased demand for oil and, particularly, natural gas raise expectations for continued hydrocarbon production, while increased policy support for renewables and low-carbon solutions are likely to accelerate their deployment in both Europe and the US. Mapping of the decarbonisation targets of our strategic suppliers in 2022 represented the first step in an important effort to increase transparency and focus on emissions in upstream scope 3 emissions; this will be a continued area of focus and improvement in 2023.

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ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## 2.3.2 Emissions reductions

| TOPIC DESCRIPTION | IMPACTS TO NATURE AND SOCIETY | PRINCIPAL RISK FACTORS/IMPACT ON EQUINOR | KP/MONITORING INDICATOR | AMBITION AND STATUS |
| --- | --- | --- | --- | --- |
| Reducing GHG emissions from own production and the use of our products. | Equinor has significant scope 1, 2 and 3 GHG emissions with strong stakeholder interest in the transparent and accurate disclosure of the carbon intensity of its energy products and operating activities. | Climate change and transition to a lower carbon economy Competition and technology innovation Health, safety and environmental factors Joint arrangements and technology innovation Ownership and action by the Norwegian State | Absolute GHG emissions scope 1 and 2 (million tonnes CO 2 e) | Net 50% emission reduction (2015 → 2030) ● |
|  |  |  | Upstream CO 2 intensity, Scope 1 (kg CO 2 /boe) | <8 kg/boe (2025) <6 kg/boe (2030) ● |

### Supplying reliable oil and gas while halving operated emissions by 2030

Equinor has a proud history as a safe and reliable producer of oil and gas. These energy sources will be needed to power the global economy for many years to come, including in every independent scenario of what would be needed for a Paris-aligned emissions trajectory. In addition to being primary sources of energy, oil and gas will also be needed as input to low-carbon fuels for hard-to-abate sectors such as blue hydrogen and as feedstocks for non-energy applications such as chemicals. The IEAs analysis

from October 2022 shows that global oil demand is expected to grow in 2023 by 1.7 million barrels per day (mmbpd) to over 101mmbpd. The IEAs Net Zero Emissions (NZE) in 2050 scenario, which assumes demand levels consistent with a 1.5-degree trajectory, shows global oil demand projected to decline at 2.5% per year from 2021 to around 72 million barrels per day in 2030 and 24mbpd in 2050. The IEAs also sees growing demand for natural gas in the short term, including in its NZE scenario, which was developed before the current energy crisis and the attempts to reduce reliance on Russian energy exports. To meet the needs of society, Equinor will continue to produce

oil and gas for the foreseeable future. We aim to excel in operational emissions management, maximising the efficiency of our infrastructure on the NCS and optimising our high-quality international portfolio. To earn the right to supply the oil and gas the world demands, we are continuing to improve the industry-leading carbon efficiency of our production.

Our ambition to reduce net group-wide operated emissions by 50% by 2030, shows that we are focused on bringing down our direct operated emissions in line with reductions necessary for a 1.5-degree pathway. Setting a baseline year that corresponds to the year of the Paris Agreement enables us to show our early action on emissions reduction and to build on our leadership position throughout this decade. The ambition, which was announced at our 2022 capital market update, was informed by engagement with a range of government and non-government stakeholders and will enable us to contribute to national decarbonisation plans in key host jurisdictions, including Norway's ambition to reduce its emissions by 55% by 2030 relative to a 1990 baseline.

### Management approach

Reaching our 50% reduction ambition for operated scope 1 and 2 emissions will require a focused and coordinated effort across the company on executing and maturing a portfolio of abatement projects, improving energy efficiency of offshore and onshore

assets, developing new technologies, and strengthening resilience in the portfolio, including through consolidation. The abatement projects primarily include electrification of offshore assets in Norway, mainly by power from shore but also including innovations such as Hywind Tampen. Projects in the abatement portfolio are selected, developed and executed in close dialogue with authorities and partners and coordinated through our Norway Energy Hub initiative. In addition to CO$_{2}$ emissions, we have instituted a renewed focus on improving our industry-leading performance on methane emissions, with increased emphasis on site-level measurement for improved quantification and reporting. Carbon offsets will play a minimal role in achieving this ambition, with at least 90% of the reductions being met through absolute emissions reductions. In the longer term, we see negative emissions solutions and offsets as making an important contribution to address the climate challenge. We plan to use only carbon credits verified according to high standards and to disclose information about the type of offsets employed. To ensure quality in our carbon credits, we have established a set of corporate criteria and principles based on the Oxford Principles for Net Zero Aligned Carbon Offsetting.

To track and incentivise the company's performance on decarbonisation, we have established a performance indicator that assesses progress towards the 2030 decarbonisation ambition. The indicator is the first of its kind in Equinor to use a forecast-based methodology.

Equinor 2022 Integrated annual report

90 2.3.2 Emissions reductions

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

The indicator tracks the internal forecast for Equinor's operated GHG emissions in 2030 relative to the reduction level required to meet the decarbonisation ambition, as well as progress on the portfolio of abatement projects. The indicator was implemented as an internal corporate KPI in 2023.

In addition to our absolute emissions reduction efforts, we are focused on continuing to improve the industry-leading carbon and methane efficiency of our profitable upstream portfolio, enabling us to be the resilient and responsible producer of the oil and gas that the world demands. Performance on the upstream CO$_{2}$ intensity of the oil and gas portfolio is integrated as a KPI for the BoD and CEC and is linked renumeration. The same KPI also informs renumeration for business-unit managers as well as an input into the general bonus for all employees.

#### Operated emissions

In 2022 Equinor was on track to meet its ambitions to halve its operated scope 1 and 2 emissions by 2030. Our total operated scope 1 and 2 GHG emissions for 2022 were 11.4 million tonnes - a 6% decrease from the previous year. Equinor has now achieved a reduction in absolute operated scope 1 and 2 emissions of around 30% relative to 2015.

The main drivers of our reduced scope 1 and 2 emissions were a combination of operational and portfolio measures including: divestment of our Kalundborg refinery and Bakken asset, modifications and emissions reduction initiatives at our onshore plants at Mongstad and Kårtal, and a change in strategy at several of our NCS assets from gas injection to gas exports to maximise supplies to Europe.

#### Performance disclosure

| Indicators | Boundary | Unit | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Scope 1 GHG emissions | Operational control | million tonnes CO 2 e | 11.4 | 12.0 | 13.3 | 14.7 | 14.9 | 15.4 | 15.4 |
| Scope 1+2 GHG emissions Norway | Operational control | million tonnes CO 2 e | 11.0 | 11.1 | 11.9 | 12.4 | 13.0 | 13.4 | 13.4 |
| Scope 1+2 GHG emissions | Operational control | million tonnes CO 2 e | 11.4 | 12.1 | 13.5 | 14.9 | 15.1 | 15.6 | 15.7 |
| Scope 2 GHG emissions (location based) | Operational control | million tonnes CO 2 e | 0.1 | 0.1 | 0.3 | 0.2 | 0.2 | 0.2 | 0.3 |
| Scope 2 GHG emissions (market based) | Operational control | million tonnes CO 2 e | 2.5 | 2.7 | 2.5 | 2.9 | 3.0 | 2.8 | 2.6 |
| Scope 3 GHG emissions (GHG Protocol cat. 11, use of solid products) | Equity basis | million tonnes CO 2 e | 243 | 249 | 250 | 247 | 252 | 250 | 239 |
| Scope 3 GHG emissions (GHG Protocol cat. 6, Business travel) | Operational control | million tonnes CO 2 e | 0.05 | 0.01 | 0.02 | 0.1 | 0.1 | 0.1 | 0.1 |
| CO 2 emissions | Operational control | million tonnes | 11.1 | 11.6 | 12.9 | 14.2 | 14.4 | 14.9 | 14.8 |
| CO 2 emissions excl. flaring | Operational control | million tonnes | 10.4 | 11.0 | 11.9 | 13.0 | 13.3 | 13.6 | 13.4 |
| CO 2 emissions from flaring | Operational control | million tonnes | 0.6 | 0.7 | 1.0 | 1.2 | 1.2 | 1.3 | 1.4 |
| CO 2 emissions from upstream operations | Operational control | million tonnes | 7.6 | 7.8 | 8.7 | 9.6 | 9.3 | 9.2 | 9.7 |
| CO 2 emissions from midstream operations | Operational control | million tonnes | 3.5 | 3.8 | 4.2 | 4.6 | 5.1 | 5.6 | 5.0 |
| CO 2 emissions from other operations | Operational control | million tonnes | 0.02 | 0.01 | 0.01 | 0.01 | 0.11 | 0.11 | 0.04 |
| CO 2 emissions | Equity basis | million tonnes | 9.1 | 9.9 | 10.1 | 11.5 | 11.6 | 12.0 | 12.7 |
| Upstream CO 2 emissions intensity | Operational control | kg CO 2 per barrel of oil equivalent (boe) | 6.9 | 7.0 | 8.0 | 9.5 | 9.0 | 8.8 | 9.8 |
| Upstream CO 2 emissions intensity | Equity basis | kg CO 2 per barrel of oil equivalent (boe) | 8.5 | 8.8 | 9.2 | 10.7 | 10.3 | 10.4 | 13.0 |
| Maritime CO 2 emissions | Operational control | million tonnes CO 2 e | 3.8 | 3.8 | 4.9 | n/r | n/r | n/r | n/r |
| CH 4 emissions | Operational control | thousand tonnes | 11.2 | 14.5 | 17.7 | 19.0 | 20.0 | 19.3 | 24.2 |
| CH 4 intensity | Operational control | % (m 3 CH 4 emitted per m 3 marketed gas) | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 |
| Hydrocarbons flared | Operational control | thousand tonnes | 203 | 201 | 339 | 414 | 396 | 406 | 443 |
| Upstream flaring intensity | Operational control | tonnes of hydrocarbons flared per 1,000 tonnes of hydrocarbon produced | 0.7 | 0.9 | 1.7 | 2.5 | 2.4 | 2.1 | 2.5 |
| Routine flaring (share of total) | Operational control | % | 3 | 14 | 31 | 27 | 21 | 10 | 14 |

Equinor 2022 integrated annual report

91 2.3.2 Emissions reductions

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

In 2022, several abatement projects moved forward, including first power from the Hywind Tampen floating wind facility to our oil and gas production assets on the NCS and the sanctioning of electrification for Hammerfest LNG and the Njord field. We also saw positive contributions to our emissions reductions efforts through energy efficiency projects in Norway, which reduced emissions by 200,000 tonnes, and from our international portfolio including the Peregrino gas import solution, which is expected to avoid around 100,000 tonnes of CO2 emissions per year in operated emissions.

**Scope 1 and 2 GHG emissions (operated, million tonnes CO2E)**
(millions tonnes, 100% operated basis)

![img-0.jpeg](img-0.jpeg)

Figure: Operated scope 1 + scope 2 emissions 2022 vs 2021 with key levers/contributions.

# **Forecast (Q4, 2022)**

![img-1.jpeg](img-1.jpeg)

Figure: End 2022 forecast for operated emissions to 2030.

# **Equity emissions**

Equinor's equity CO2 emissions in 2022 were 9.1 million tonnes, a decrease from 9.9 in 2021. In 2021 we provided field-based emissions disclosure of our operated emissions and our partner-operated Norwegian assets. This year, for the first time, we also provide field-based emissions for our international

partner-operated assets in the USA, Canada, and other jurisdictions where we have approval from partners. We continue to work with our partners to encourage emissions disclosure on a field basis and have requested consent to publish emissions data from all partners from whom it is required.

# **Upstream intensity**

In 2022, Equinor was on track to meet its ambitions with regard to upstream CO2 intensity. The upstream CO2 intensity of Equinor's operated portfolio decreased from 7.0 to 6.9kg CO2/boe, well below the 2025 ambition of 8kg CO2/boe. The main driver for this change was reduced CO2 levels from operated Norwegian assets which changed their strategy from gas injection to gas export during 2022. There were also significant emissions reductions measures implemented in the upstream portfolio in 2022 (202,000 tonnes CO2), as well as decommissioning of the Veslefrisk field and divestment of the Bakken asset in the United States, both of which had higher than average upstream emissions intensity. Increased production levels from the electrified asset Martin Linge also have a positive effect on the intensity.

# **Upstream CO2 intensity**

(kg CO2 per boe, 100% operated basis)

![img-2.jpeg](img-2.jpeg)

Upstream: All operations from exploration to production, excluding onshore gas processing and LNG facilities.

Figure: Operated CO2 intensity 2022 vs 6-year performance and 2025 target

Equinor 2022 Integrated annual report

92 2.3.2 Emissions reductions

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

### Methane

Equinor's 2022 methane intensity for our operated upstream and midstream business remained low at approximately 0.02%. This represents an industry-leading performance as Equinor's methane emissions intensity is around 12% of the average of members of the Oil and Gas Climate Initiative group of companies. Equinor continues to pursue a methane intensity target of near zero by 2030.

**Equinor methane intensity
vs industry average (OGCI)**
(% m3 CH4 emitted per m3 marketed gas)

![img-3.jpeg](img-3.jpeg)

Figure: Operated scope 1 + scope 2 methane emissions intensity 2022 vs 6 year historical performance and vs OGCI average.

### Flaring

Our 2022 upstream flaring intensity was 0.7 tonnes/1000 tonnes of hydrocarbon produced compared with 0.9 in 2021. This is significantly

![img-4.jpeg](img-4.jpeg)

Methane detector
SealOps, Ohio, USA

lower than the industry average of 9 (IOGP 2021). Equinor's low flaring levels are due to continued focus on operational efficiency and leveraging the well-established gas infrastructure in Norway. The main reason for the reduced flaring levels in 2022 was decreased flaring from Martin Linge (which experienced start-up flaring in 2021), decommissioning of Veselrirk B, turnaround maintenance at Statfjord A, the divestment of the Bakken asset, and the implementation of several emission reduction initiatives.

### Performance evaluation

2022 saw positive progress in Equinor's performance to reduce its absolute operated scope 1 and 2 emissions as well as a continued focus on maintaining industry-leading performance on the carbon and methane intensity of its upstream oil and gas portfolio. While portfolio changes and production strategy were significant contributors to the reduction in operated emissions and emissions intensity in 2022, Equinor made

progress throughout the year in advancing abatement projects to bring emissions down in line with the 2030 ambition. The newly developed forecast indicator shows that the operated portfolio is currently on track to meet the company's 50% reduction ambition by 2030, despite a forecasted increase in emissions in 2025 due to new production projects coming onstream.

Equinor 2022 Integrated annual report

93

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# 3 Reporting segment performance

![img-5.jpeg](img-5.jpeg)

The FPSO for the Johan Castberg
field under construction, Aker
Solutions yard at Stord, Norway.

Equinor 2022 integrated annual report

| Introduction to segmental reporting | 94 |
| --- | --- |
| 3.1 Optimised oil and gas portfolio | 95 |
| 3.1.1 Exploration & Production Norway | 100 |
| 3.1.2 Exploration & Production International | 109 |
| 3.1.3 Exploration & Production USA | 116 |
| 3.2 High-value growth in renewables | 119 |
| 3.3 Marketing, midstream and processing (MMP), incl. new market opportunities in low carbon solutions | 123 |
| 3.4 Corporate and other group | 130 |

94 Introduction to segmental reporting

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# Introduction to segmental reporting

Equinor's business strategy is structured around three pillars: Always safe, High value, and Low carbon

![img-6.jpeg](img-6.jpeg)

This means that, to create value as a leader in the energy transition, we are pursuing high value growth in renewables, and seeking new market opportunities in low-carbon solutions while, at the same time, optimising our oil and gas portfolio.

In order to effectively manage and execute our strategy, including the ability to measure the progress of the business against its strategic goals, Equinor's operations are organised into business areas and followed up through operating segments. The operating segments directly correspond to the reporting segments below - with the exception of the operating segments, Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI), and Corporate

Exploration & Production Norway (E&P Norway)

Exploration & Production International (E&P International)

Exploration & Production USA (E&P USA)

Renewables (REN)

Marketing, Midstream & Processing (MMP)

Other group

Optimised oil and gas portfolio

Optimised oil and gas portfolio

Optimised oil and gas portfolio

High value growth in renewables

New market opportunities in low carbon solutions

Equinor 2022 integrated annual report

Staff and Functions, which are aggregated into the reporting segment Other:

The Exploration & Production (E&P) segments are responsible for the discovery and appraisal of new resources and commercial development of the oil and gas portfolios within their respective geographical areas. E&P Norway on the Norwegian continental shelf, E&P USA in the USA and E&P International worldwide, except for Norway and the USA.

Marketing, Midstream & Processing (MMP) works to maximise value creation in Equinor's global mid- and downstream positions. The segment is responsible for the global marketing, trading, processing, and transportation of crude, petroleum products and natural gas, in addition to power and emissions trading. MMP also leads Equinor's focus in low-carbon solutions such as carbon capture and storage (CCS) and other low-carbon energy solutions.

The Renewables (REN) segment is responsible for developing and exploring areas within renewable energy, such as offshore wind, green hydrogen, storage solutions, and solar power.

## Inter-segmental transactions

Internal transactions in oil and gas volumes occur between reporting segments before volumes are sold in the market. Equinor has established a market-based transfer pricing methodology for the intercompany sale of oil and natural gas that meets the requirements of applicable laws and regulations. For further information, see section 2.2 High Value for production volumes and prices.

E&P Norway produces oil and natural gas including liquefied natural gas (LNG) which is sold internally to MMP. A large proportion of the oil and natural gas produced by E&P USA and oil from E&P International is also sold through MMP. The remaining oil and gas

from E&P International and E&P USA is sold directly in the market. In 2022, the average transfer price for natural gas for E&P Norway was 31.22 USD/MMBtu (compared to 14.43 USD/MMBtu in 2021). For the oil sold from E&P Norway to MMP, the transfer price used is the applicable market-reflective price minus a cost recovery rate.

Equinor eliminates intercompany sales when combining the results of our reporting segments. Intercompany sales include transactions recorded in connection with oil and natural gas production in the E&P reporting segments, and in connection with the sale, transportation or refining of oil and natural gas production in the MMP reporting segment. Certain types of transportation costs are reported in the MMP, E&P USA and E&P International reporting segments.

95 3.1 Optimised oil and gas portfolio

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# 3.1 Optimised oil and gas portfolio

## The Norwegian continental shelf (NCS) to deliver value for decades

After more than 50 years of operations Equinor's equity production from the NCS in 2022 is still high, about 1.387 million boe per day, and the net operating income from the NCS reached USD 676 billion in 2022. Throughout the year, Equinor, together with licence partners and Norwegian authorities, took several new steps to respond to the rising need for natural gas in Europe and increased gas production by 8% in 2022.

Going forward, Equinor will continue to add high-value barrels to the portfolio through exploration and increased recovery. A particular focus will be given to gas. Hence, NCS cash flow and value creation are expected to remain high beyond 2030. In 2022 Equinor was awarded 26 new production licences and several high-value discoveries were made close to existing infrastructure. Four tie-in projects reached investment decisions in 2022, adding value and increasing the lifespan of existing infrastructure. An investment decision was also made for the Munn project. The NCS project portfolio is very robust against potential low oil and gas prices.

The CO$_{2}$ abatement portfolio is progressing towards the ambition of 50% emissions reduction from operations in Norway by 2030. Investment decisions were made for both the Njord and Snehvit future electrification projects. The Oseberg gas capacity and power-from-shore project got PDO approval

in the fourth quarter of 2022. In November the first power was produced from the Hywind Tampen floating offshore wind farm that will supply the Snorre and the Gullfaks facilities.

Norway energy hub - the plan to transform the NCS into a broad energy province - saw good progress. Equinor together with Oseberg and Troll licence partners, are in an early phase of developing a floating offshore wind farm intended to provide electric power to Kolløses and the Troll and Oseberg fields via an onshore connection point. Blue hydrogen and CCS projects were significantly strengthened through the award of the Smeahela CO$_{2}$ storage licence and agreements on cross-border collaboration.

## Transforming the value of international oil and gas

Equinor has built its international oil and gas portfolio over the past 30 years, with an equity production of about 0.652 million boe per day in 2022. In the past few years, Equinor has made significant progress to focus and optimise its international oil and gas portfolio through divestments and country exits. In the portfolio of assets in production, the focus is on safe and efficient operations, including measures to reduce carbon emissions. The portfolio of major development projects continues to be further matured and optimised.

In 2022, Equinor completed its exit process from Russia. In Brazil, the Peregrino field and its expansion,

![img-7.jpeg](img-7.jpeg)

The Gullfaks B platform seen from Gullfaks A, North Sea, Norway.

Peregrino phase 2, came into production. The Roncador field started producing additional volumes from an IOR project. The major development project Bacalhau continued to progress. Meanwhile, in the USA, portfolio optimisation onshore (Northeastern USA) and offshore (US Gulf of Mexico) performed well. In the Gulf of Mexico, Equinor continues to materially build position with the Vito development, operated by Shell. Onshore, the significant low-carbon gas positions in the Appalachian Basin continue to generate strong

cash flows. Presence in this region has allowed Equinor to spearhead initiatives that could unlock future CCS and hydrogen opportunities together with key industrial players.

Equinor 2022 integrated annual report

96 3.1 Optimised oil and gas portfolio

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# Proved oil and gas reserves

Proved oil and gas reserves were estimated to be 5,191 million boe at year end 2022, compared to 5,356 million boe at the end of 2021.

## Proved reserves (million boe)

![img-8.jpeg](img-8.jpeg)

■ Proved undeveloped reserves ■ Proved developed reserves

Changes in proved reserves estimates are most commonly the result of revisions of estimates due to observed production performance or changes in prices or costs, extensions of proved areas through drilling activities or the inclusion of proved reserves in new discoveries through the sanctioning of new development projects. These changes are the result of continuous business processes and can be expected to continue to affect reserves in the future.

Proved reserves can also be added or subtracted through purchases and sales of reserves-in-place or factors outside management control.

Changes in oil and gas prices can affect the quantities of oil and gas that can be recovered from the accumulations. Higher oil and gas prices will normally allow more oil and gas to be recovered, while lower prices will normally result in reduced recovery. However, for fields with production sharing agreements (PSA), higher prices may result in reduced entitlement to produced volumes and lower prices may result in increased entitlement to produced volumes. These described changes are included in the revisions and improved recovery (IOR) category in the tables that follows in this report.

The principles for booking proved gas reserves are limited to contracted gas sales or gas with access to a robust gas market.

Equinor prepares its disclosures for oil and gas reserves and certain other supplemental oil and gas disclosures by geographical area, as required by the US Securities and Exchange Commission (SEC). The geographical areas are defined by country and continent. These are Norway, Eurasia excluding Norway, Africa, the USA and the Americas excluding USA.

In Norway and other countries where there is reasonable certainty that the authorities will approve the plan for development and operation (PDO), Equinor recognises reserves as proved when the PDO is submitted to the authorities. Otherwise, reserves are generally booked as proved reserves when regulatory approval is received, or when such approval is imminent. Undrilled well locations in onshore fields in the USA are generally booked as proved undeveloped reserves when a development plan has been adopted and the well locations are scheduled to be drilled within five years.

Approximately 87% of Equinor's proved reserves are located in the Organisation of Economic Co-Operation and Development (OECD) countries. Norway is by far the most important contributor in this category, followed by the USA. Of Equinor's total proved reserves, 5% are related to PSAs in non-OECD countries such as Angola, Brazil, Azerbaijan, Algeria, Nigeria and Libya. Other proved non-OECD reserves are related to concession fields in Argentina and Brazil, representing all together 7% of Equinor's total proved reserves.

## Distribution of proved reserves

![img-9.jpeg](img-9.jpeg)

Equinor 2022 Integrated annual report

97 3.1 Optimised oil and gas portfolio

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## Changes in proved reserves
in 2022

The total volume of proved reserves decreased by
165 million boe in 2022.

### Changes in proved reserves
million boe

![img-10.jpeg](img-10.jpeg)

### Revisions and IOR

Revisions of previously booked reserves, including the
effect of improved recovery, increased the proved
reserves by net 344 million boe in 2022. The increase
is the result of 433 million boe in positive revisions
and increased recovery, partially offset by 89 million
boe in negative revisions. Many producing fields had
positive revisions due to better performance, new
drilling targets and improved recovery measures, as
well as reduced uncertainty due to further drilling and

![img-11.jpeg](img-11.jpeg)

production experience. The positive revisions also
included a direct effect of higher commodity prices,
increasing the proved reserves by approximately
63 million boe through increased economic lifetime
on several fields. The negative revisions were mainly
related to unforeseen events and operational
challenges resulting in reduced production potential on
some fields in addition to reduced entitlement volumes
from several fields with PSAs.

### Extensions and discoveries

A total of net 278 million boe of new proved reserves
were added through extensions and discoveries.
Continuous extension of the proved area in the
Appalachian basin together with a record number of

submitted PDOs in Norway, of which Munin and Halten
Øst were the largest, are the main contributors to this
category. In addition, this category includes extensions
of proved areas through drilling of new wells in
previously undrilled areas at other fields in Norway and
in Argentina.

### Purchases and sales of reserves-in-place

A total of 36 million boe of new proved reserves in the
Statford Area, which covers the Norwegian continental
shelf (NCS) and UK continental shelf, were purchased
in 2022.

A total of 128 million boe of sales of reserves-in-place
are related to the exit of joint arrangements in Russia in

addition to the sale of the Ekofisk Area and a minority
share in Martin Linge on the NCS. Equinor has no
remaining proved reserves in Russia at year end 2022.

In the fourth quarter of 2021, Equinor entered into an
agreement to divest our interests in the Corrib field in
Ireland. Closing is dependent on governmental approval
and is expected to take place in the first quarter of
2023. The sale will result in an estimated reduction in
proved reserves of approximately 1.1 million boe.

### Production

The 2022 entitlement production was 695 million boe,
down from 710 million boe in 2021 due to sales, natural
decline and operational challenges.

Equinor 2022 Integrated annual report

98 3.1 Optimised oil and gas portfolio

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CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

# **Development of reserves**

In 2022, 241 million boe were matured from proved undeveloped to proved developed reserves. Continued drilling in the Appalachian basin in the USA and on major offshore assets in addition to the production

start of Askeladd (Snøhvit), Johan Sverdrup Phase 2 and Peregrino Phase 2 contributed to the major portion of maturation of proved undeveloped to proved developed reserves in 2022. Smaller volumes are related to individual assets world-wide. The positive

revision and improved recovery of proved developed reserves of 322 million boe is related to increased economic lifetime at some fields, increased activity levels, higher commodity prices and implementation of improved recovery projects. 256 million boe was added to proved undeveloped reserves as extensions and discoveries, the largest of these being Munin and Halten Øst in Norway, in addition to further development in the Appalachian basin in the USA.

# **Proved developed and undeveloped reserves**

| As of 31 December 2022 | Oil and condensate (mmboe) | NGL (mmboe) | Natural gas (mmboe) | Total oil and gas (mmboe) |
| --- | --- | --- | --- | --- |
| Developed |  |  |  |  |
| Norway | 731 | 149 | 10,294 | 2,714 |
| Eurasia excluding Norway | 35 | 3 | 89 | 53 |
| Africa | 107 | 8 | 91 | 131 |
| USA | 161 | 51 | 1,921 | 554 |
| Americas excluding USA | 216 | - | 25 | 220 |
| Total developed proved reserves | 1,249 | 210 | 12,420 | 3,672 |
| Undeveloped |  |  |  |  |
| Norway | 562 | 60 | 2,087 | 994 |
| Eurasia excluding Norway | 48 | 0 | 5 | 50 |
| Africa | 17 | 0 | - | 17 |
| USA | 56 | 9 | 423 | 140 |
| Americas excluding USA | 316 | - | 11 | 318 |
| Total undeveloped proved reserves | 999 | 70 | 2,526 | 1,519 |
| Total proved reserves | 2,248 | 280 | 14,946 | 5,191 |

As of 31 December 2022, the total proved undeveloped reserves amounted to 1,519 million boe, 65% of which are related to fields in Norway. The Johan Sverdrup, Snøhvit and Oseberg area fields, which have continuous development activities, together with fields not yet in production, such as Johan Castberg and Munin, have the largest proved undeveloped reserves in Norway. The largest assets with proved undeveloped reserves outside Norway, are Bacalhau, Peregrino and Roncador in Brazil, the Appalachian basin, Vito and Caesar-Tonga in the USA, Mariner in the UK, and ACG in Azerbaijan. All these fields are either producing or will start production within the next five years.

For fields with proved reserves where production has not yet started, investment decisions have already been sanctioned and investments in infrastructure and facilities have commenced. There are no material

development projects, which would require a separate future investment decision by management, included in our proved reserves. Some development activities will take place more than five years from the disclosure date on many fields, but these are mainly related to incremental type of spending, such as drilling of additional wells from existing facilities, in order to secure continued production.

For projects under development, the Covid-19 pandemic impacted progress due to personnel limitations on offshore as well as onshore facilities and yards. The pandemic has delayed production start at the Johan Castberg field in Norway. The field was originally planned to start production in 2022, four years after the field development was sanctioned. The start-up is delayed to 2024.

For our onshore assets, all proved undeveloped reserves are limited to wells that are scheduled to be drilled within five years.

In 2022, Equinor incurred USD 6.9 billion in development costs relating to assets carrying proved reserves, of which USD 5.8 billion was related to proved undeveloped reserves.

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FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# **Reserves replacement**

The reserves replacement ratio is defined as the net amount of proved reserves added divided by produced volumes in any given period.

The 2022 reserves replacement ratio was 76% and the corresponding three-year average was 62%.

The organic reserves replacement ratio, excluding sales and purchases, was 89% in 2022 compared to 127% in 2021. The organic average three-year replacement ratio was 70% at the end of 2022 compared to 68% at the end of 2021.

# **Reserves replacement ratio**

|  | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Annual | 76% | 113% | (5%) |
| Three-year-average | 62% | 61% | 95% |

# **Reference to Reserves report**

A separate reserves report is included as Exhibit 15.5 to the 2022 Annual report on Form 20-F. The Reserves report is covering proved reserves required by the Securities and Exchange Commission (SEC). The report may also be downloaded from Equinor's website at www.equinor.com/reports.

The FPSO at the Peregrino field, Brazil.

![img-12.jpeg](img-12.jpeg)

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## 3.1.1 Exploration & Production Norway

The Exploration & Production Norway (E&P Norway) segment covers exploration, field development and operations on the NCS, which includes the North Sea, the Norwegian Sea and the Barents Sea. E&P Norway aims to ensure safe and efficient operations, maximising the value potential from the NCS. E&P Norway transforms the NCS using digital and carbon-efficient solutions and is considering the electrification of several installations.

For 2022, Equinor reports production on the NCS from 45 fields operated by Equinor and nine fields operated by licence partners.

### Key events

- In response to the energy crisis in Europe, gas production volumes were boosted by 8% throughout 2022.
- Gas production from the Snøhvit field in the Barents Sea resumed on 2 June, when the Hammerfest LNG plant was safely brought back into operation after having been refurbished following the fire on 28 September 2020.
- Equinor and its Troll and Oseberg licence partners announced on 17 June that the development of Trollvind, a floating windfarm in the Troll area of the North Sea, is under consideration.

![img-13.jpeg](img-13.jpeg)

- First power from the first turbine at the Hywind Tampen floating offshore windfarm was delivered on 13 November, and as of mid-February 2023, seven turbines were on line. Hywind Tampen's 11 floating wind turbines will provide power to the five Snorre and Gullfaks platforms in the North Sea.
- First gas from Askeladd, the next plateau extender of the Snøhvit gas field in the Barents Sea, was achieved on 1 December.
- Production from a fifth platform on the Johan Sverdrup oil and gas field in the North Sea started on 15 December. Johan Sverdrup's new processing platform was officially opened by the Minister of Petroleum and Energy on 13 February 2023.

- Production from the Njord oil and gas field in the Norwegian Sea resumed on 27 December, when the refurbished platform A and storage vessel Bravo were brought on stream. The field had been suspended since 2016 during the platform and vessel upgrade.
- On 10 May, Equinor entered into an agreement to sell to Sval Energi its share in Ekofisk and a 19% stake in Martin Linge. Upon completion, Equinor holds a 51% operating interest in the Martin Linge field. The transaction was completed on 30 September and is effective from 1 January 2022.
- On 31 May, Equinor completed the transaction to acquire all of Spirit Energy's production licences

in the Statfjord area on the Norwegian and the UK continental shelves. Upon completion, Equinor increased its stake in Statfjord on the NCS and holds a 14.53% stake in Statfjord unit UK. Equinor plans to extend Statfjord's field life to 2040.
- On 1 March 2023, Equinor entered into an agreement to acquire stakes in five oil and gas discoveries in the Troll, Fram and Kvitbjørn areas of the North Sea from Wellesley Petroleum AS. With this, Equinor increases its participating interest in the discoveries Grosbeak, Toppand, Atlantis, Røver North and Røver South. The transaction is expected to be completed in the first half of 2023 and will be effective from 1 January 2023.

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In the **Awards for predefined areas** on the NCS, Equinor was awarded **26** licences (**12** of them as operator) on 18 January for **2021**, and awarded **26** licences (**18** of them as operator) on 10 January 2023 for **2022**.

The Norwegian Ministry of Petroleum and Energy (MPE) approved the plans for development and operation of:

- **Kristin South** oil and gas field at Haltenbanken in the Norwegian Sea, to be tied back to the Kristin platform, on 2 February
- Partner-operated **Ormen Lange 3**, the third phase of the development of the gas field in the Norwegian Sea, on 8 July
- **Oseberg gas phase 2 and power from shore**, the plan for further developing the Oseberg field in the North Sea, on 1 December
- **Gina Krog alternative oil export**, where a new pipeline will be laid from the Gina Krog platform to **Sleipner A** in the North Sea, on 15 December
- **Halten East** gas field in the Norwegian Sea, to be tied in to the **Åsgard** field, on 13 February 2023

Together with the licence partners, Equinor submitted plans to the MPE for development and operation of:

- The **Smørbukk North** gas field at Haltenbanken in the Norwegian Sea, a satellite to the **Åsgard** field, on 9 November
- The **Irpa** gas field in the Norwegian Sea, to be tied back to the **Aasta Hansteen** platform, on 22 November

- The **Verdande** oil field in the Norwegian Sea, to be tied back to the Norne FPSO, on 6 December
- A partial electrification of the **Njord** oil and gas field in the Norwegian Sea, to be electrified jointly with **Draugen**, on 15 December
- The **Munin** (formerly **Kralla**) oil and gas field in the central North Sea, to be developed in cooperation with **Hugin** (formerly **North of Alvheim**), using the groundbreaking concept of unmanned production platform developed by Equinor, on 16 December
- Partner-operated **Fulla** gas field in the central North Sea, to be tied back to the platform planned at **Hugin A**, on 16 December
- Partner-operated gas fields **Idun North** and **Ørn** in the Norwegian Sea, to be tied back to the **Skarv** FPSO, on 16 December
- Partner-operated **Symra** oil and gas field in the central North Sea, to be tied back to the **Ivar Aasen** platform, on 16 December
- **Snøhvit future**, a project to expand gas processing capacity and reduce carbon emissions, constructing a new electric compressor module on shore and fully electrifying operations at **Hammerfest LNG**. The development will lay the ground for operations on the Snøhvit field in the Barents Sea towards 2050. The plan was submitted on 20 December
- Partner-operated **Berling** gas field in the Norwegian Sea, to be tied back to the **Åsgard B** platform, on 21 December

### Major producing fields, field developments and carbon storage licences operated by Equinor and Equinor's licence partners

- Selected Equinor-operated field
- Equinor-operated field under development
- Equinor-operated field, FSO submitted
- Selected partner-operated field
- Partner-operated field, FSO submitted
- Licences to develop CO2 storage, granted to Equinor or joint venture

![img-0.jpeg](img-0.jpeg)

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## Operational performance

In response to the energy crisis, Equinor liaised with partners and Norwegian authorities to boost gas exports to Europe through adjusted production permits, reduced gas injection and augmented energy amount in NGL. A change from gas injection to gas export from some fields contributed to the 8% increase in the natural gas output throughout 2022, underpinned by safe and dependable operations.

Equinor decided to maintain high gas production levels from Troll, Oseberg and Hedrun through the summer and postponed turnarounds at Oseberg from May to September, based on a thorough evaluation of the plants' technical integrity. This contributed to refilling European gas storages before the winter, enhancing European security of supply. Equinor collaborated closely with Norwegian authorities to manage the security situation in 2022 and received support to strengthen physical security both offshore and onshore.

The 1.7% rise in output from 2021 to 2022 was mainly driven by Martin Linge and Troll phase 3 producing for the full year. Snøhvit resuming production in June, and increased gas output from Gina Krog, Troll and partner-operated Skarv. This was partially offset by natural decline. While gas volumes rose by 8%, liquids volumes declined by 6% compared to 2021. For information about the NCS production, see section 5.5 Production per field. Over time, the volumes lifted and sold will equal entitlement production, but may be higher or lower in any period due to differences between the capacities and timing of the vessels lifting the volumes and the actual entitlement production during the period.

Snøhvit's satellite Askeladd, Njord's upgraded platform and storage vessel and Johan Sverdrup's fifth platform were brought into production in December, adding volumes and prolonging field life. The Hywind Tampen floating wind farm achieved first power in November, to be fully operational in 2023. Delivering competitive projects, we create long-term value, using standardised and digitised solutions while maintaining a rigorous quality and cost focus. With the pursuit of the perfect well, a modern rig fleet and capitalising on economies of scale, we attain world-class drilling performance.

To replenish our portfolio with valuable gas volumes for Europe, exploration was conducted near existing infrastructure throughout 2022, resulting in four commercial discoveries. Exploration activity was carried out in 22 wells in 2022, compared to 21 wells in 2021. 19 wells were completed with four commercial discoveries in 2022, compared to 18 wells completed with six commercial discoveries in 2021.

## Financial performance

Increased gas production coupled with high realised gas prices drove the unusually high revenues in 2022. Higher gas transfer price and liquids price increased net operating income and revenues from 2021 to 2022. The increase in revenues was partially offset by the NOK/USD exchange rate development. Gain on divestment of Ekofisk and a 19% participating interest in Martin Linge increased other income from 2021 to 2022. In 2021, other income was mainly affected by an insurance settlement related to the Melkøya fire in 2020.

Increased maintenance, operational activities, higher environmental taxes and electricity prices led to

increased operating expenses and selling, general and administrative expenses from 2021 to 2022. New fields also contributed to the increase, which was partially offset by the NOK/USD exchange rate development.

Increased proved reserves on several fields and decreased depreciation of the asset retirement

obligation (ARO) along with the NOK/USD exchange rate development decreased depreciation, amortisation and net impairment losses from 2021 to 2022. The ramp-up of new fields partially offset the reduction.

## Performance review

### E&P Norway - condensed income statement under IFRS

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| Revenues | 74,774 | 38,841 | 93% |
| Other income | 1,155 | 546 | >100% |
| Total revenues and other income | 75,930 | 39,386 | 93% |
| Operating, selling, general and administrative expenses | (3,782) | (3,652) | 4% |
| Depreciation, amortisation and net impairment losses | (4,167) | (4,900) | (15%) |
| Exploration expenses | (366) | (363) | 1% |
| Net operating income/(loss) | 67,614 | 30,471 | >100% |

| Operational information | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| E&P Norway entitlement liquid and gas production (mboe/day) | 1,387 | 1,364 | 2% |
| Average liquids price (USD/bbl) | 97.5 | 67.6 | 44% |
| Average internal gas price (USD/mmbtu) | 31.22 | 14.43 | >100% |

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Higher drilling cost on expensed wells and a decrease in recapitalisation of previously expensed wells contributed to a minor increase in exploration expenses from 2021 to 2022. This was partially offset by lower field development costs.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 28,513 million for the year ended 31 December 2022, compared to USD 36,506 million for the year ended 31 December 2021.

## Fields in production on the NCS

The table below shows E&P Norway's average daily entitlement production for the years ending 31 December 2022, 2021 and 2020. Production increased in 2022 due to Martin Linge producing for the full year, Snehvit resuming production in June, and increased gas production from Gina Krog, Troll and Skarv, partially offset by natural decline.

Average production by location in 2022
mboe/day

![img-1.jpeg](img-1.jpeg)

## Main producing fields on the NCS

### Fields operated by Equinor

**Johan Sverdrup** (Equinor 42.63%) is a major oil field with associated gas in the North Sea, developed with five platforms. Two processing platforms, a drilling platform, a riser platform and a living quarters platform. Crude oil is exported to Mønstad through a 283-km designated pipeline, and gas is exported to the gas processing facility at Kårsø through a 156-km pipeline via a subsea connection to the Statpipe pipeline. First oil was achieved in October 2019 and the fifth Johan Sverdrup platform, a processing platform connected to the field centre, was brought on stream on 15 December 2022.

**Troll** (Equinor 30.58%) in the North Sea is the largest gas field on the NCS and a major oil field. The Troll field regions are connected to the Troll A, B and C platforms. Troll gas is produced mainly at Troll A, and oil mainly at Troll B and C. Fram, Fram H Nord and Byrding are tie-ins to Troll C.

Over recent years, new compressors have increased the gas processing capacity; one compressor was brought on stream at Troll B in September 2018, and one at Troll C in January 2020. In August 2021, the third phase of the Troll field development was brought on stream, producing from the Troll West gas cap.

A partial electrification of Troll B and a full electrification of Troll C are underway. The Troll A platform, brought on stream in 1996, was the first electrified installation on the NCS.

The **Gullfaks** (Equinor 51.00%) oil and gas field in the North Sea is developed with three platforms. Since production started on Gullfaks in 1986, several satellite fields have been developed with subsea wells which are remotely controlled from the Gullfaks A and C platforms. The first power from the Hywind Tampen floating windfarm was supplied to Gullfaks A in November 2022.

Average daily entitlement production

| Area production | 2022 |  |  | 2021 |  |  | 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Oil and NGL mboe/day | Natural gas mmc/mday | mboe/day | Oil and NGL mboe/day | Natural gas mmc/mday | mboe/day | Oil and NGL mboe/day | Natural gas mmc/mday | mboe/day |
| Equinor operated fields | 557 | 110 | 1,251 | 585 | 101 | 1,223 | 570 | 96 | 1,173 |
| Partner operated fields | 48 | 14 | 136 | 58 | 13 | 141 | 60 | 13 | 143 |
| Total | 605 | 124 | 1,387 | 643 | 115 | 1,364 | 630 | 109 | 1,315 |

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# Average production in 2022

![img-2.jpeg](img-2.jpeg)

The **Oseberg** area (Equinor 49.30%) in the North Sea produces oil and gas. The development includes the Oseberg field centre, Oseberg C, Oseberg East and Oseberg South production platforms. Oil and gas from the satellite fields are transported to the Oseberg field centre for processing and transportation. Oseberg Vestfranken 2 came on stream in October 2018. The wellhead platform was Norway's first unmanned platform, remotely controlled from the Oseberg field centre. To boost recovery and cut emissions, the installation of two new compressors is underway, and a cable to Kallons is projected to connect to the onshore grid for a partial electrification.

The **Åsgard** (Equinor 34.57%) gas and condensate field in the Norwegian Sea is developed with the Åsgard A FPSO for oil, the Åsgard B semisubmersible floating production platform for gas and condensate, and the Åsgard C storage vessel for oil and condensate. Åsgard C also provides storage for oil produced at Kristin and Tyrhans. In 2015 Equinor started the world's first subsea gas compression train on Åsgard. The Trestak field is tied back to Åsgard A. The Hallen East gas field is being developed in a subsea solution tied back to Åsgard.

The **Martin Linge** (Equinor 51.00%) oil and gas field in the North Sea was brought on stream in June 2021. The field is developed with an integrated wellhead, production and accommodation platform and a permanently anchored oil storage vessel. The gas is piped to St Fergus, Scotland, and the oil is shipped in shuttle tankers, after being processed on board the storage vessel. The field is operated from shore. In 2018, the field development started running on power from shore.

High-level meeting on the Troll A platform in the North Sea, Norway, on 17 March 2023
- visit by the president and CEO of Equinor, Anders Opedal,
the secretary general of NATO, Jens Stoltenberg,
the president of the European Commission, Ursula von der Leyen
and Norway's prime minister, Jonas Gahr Støre.

![img-3.jpeg](img-3.jpeg)

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**Visund** (Equinor 53.20%, operator) oil and gas field in the North Sea is developed with the Visund A semisubmersible integrated living quarters, drilling and processing unit, and a subsea installation in the northern part of the field. The Visund North improved oil recovery development, a subsea solution with two new wells in a new subsea template, was brought on stream in September 2018.

The **Aasta Hansteen** (Equinor 51.00%, operator) gas and condensate field in the Norwegian Sea is developed with a floating spar platform and two subsea templates. With the Snefrid North well drilled from the seabed at a depth of 1,309 metres, the field development is the deepest ever on the NCS. The Irpa gas field is being developed in a subsea solution tied back to Aasta Hansteen.

The **Tyrrhans** (Equinor 58.84%, operator) oil and gas field in the Norwegian Sea is developed with five subsea templates tied back to Kristin.

The **Snøhvit** (Equinor 36.79%, operator) gas and condensate field is developed with several subsea templates. Snøhvit was the first field development in the Barents Sea and is connected to the liquefied natural gas processing facilities at Melkøya near Hammerfest through a 160-km pipeline. First gas from **Askeladd**, the next plateau extender of Snøhvit, was achieved on 1 December 2022. The Askeladd development includes two subsea templates, a 42-km tie-back to **Snøhvit** and drilling of three gas producers. Operations resumed at the refurbished Hammerfest LNG plant in June 2022, after having been suspended following the Melkøya fire in September 2020. **Askeladd West**, a satellite to Snøhvit, is under development.

## Fields operated by licence partners

**Ormen Lange** (Equinor 25.35%, operated by A/S Norske Shell) is a deepwater gas field in the Norwegian Sea. The well stream is transported to an onshore processing and export plant at Nyhamna. Gassco became operator of Nyhamna from

1 October 2017, with Shell as technical service provider. Two new subsea compressor stations are underway, projected to be tied into the existing Ormen Lange pipeline.

**Skarv** (Equinor 36.17%, operated by Aker BP ASA) is an oil and gas field in the Norwegian Sea. The field development includes an FPSO and five subsea multi-well installations.

**Ærfugl** (Equinor 30.00%, operated by Aker BP ASA) is a subsea development of the gas and condensate discoveries. Ærfugl and Snadd Outer fields in the Norwegian Sea near the Skarv field, around 200 km west of Sandnessjøen. The field is tied into the Skarv FPSO for processing and storage.

**Ivar Aasen** (Equinor 41.47%, operated by Aker BP ASA) is an oil and gas field in the North Sea. The development includes a fixed steel jacket with partial processing and living quarters tied in as a satellite to Edvard Grieg for further processing and export.

**Goliat** (Equinor 35.00%, operated by Vår Energi ASA) was the first oil field developed in the Barents Sea. The field consists of subsea wells tied back to a circular FPSO. The oil is offloaded to shuttle tankers.

**Marulk** (Equinor 33.00%, operated by Vår Energi ASA) is a gas and condensate field developed as a tie-back to the Norne FPSO.

For information about the NCS production, see section 5.5 Production per field.

## Exploration on the NCS

Equinor holds exploration acreage and actively explores for new resources in all three regions on the NCS, the Norwegian Sea, the North Sea and the Barents Sea. The North Sea and Norwegian

### Exploratory wells drilled$^{1)}$

|  | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| North Sea |  |  |  |
| Equinor operated | 6 | 10 | 10 |
| Partner operated | 3 | 2 | 2 |
| Norwegian Sea |  |  |  |
| Equinor operated | 4 | 2 | 4 |
| Partner operated | 4 | 0 | 6 |
| Barents Sea |  |  |  |
| Equinor operated | 2 | 2 | 4 |
| Partner operated | 0 | 2 | 0 |
| Total (gross) | 19 | 18 | 26 |

$^{1)}$ Wells completed during the year, including appraisals of earlier discoveries.

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![img-4.jpeg](img-4.jpeg)

The five platforms at the Johan Sverdrup field, North Sea, Norway

## Projects under development

**Askeladd West** (Equinor 36.79%, operator) is a planned satellite to the **Snøhvit** gas field in the Barents Sea. The project was sanctioned in April 2021. The projected subsea development is 195 km from the Melkøya plant and will include a subsea template tied in to **Askeladd**. The project is expected to be ready for first gas in the fourth quarter of 2025.

**Breidablikk** (Equinor 39.00%, operator) is an oil field in the North Sea. The MPE approved the plan for development and operation of the field on 29 June 2021. The field is being developed with a subsea solution tied back to the **Grane** platform. After being processed at Grane, produced oil will be transported to the Sture terminal. Offshore modification work began March 2021, and the first oil producer was completed in the third quarter of 2022. First oil is planned for first half of 2024.

**Gina Krog alternative oil export** (Equinor 58.70%, operator) comprises a new pipeline to be laid from the Gina Krog platform to Sleipner A in the North Sea to replace the current export using an FSO and tankers. The MPE approved the amended PDO for Gina Krog on 15 December, and the new 23 km pipeline is expected to be operational in the fourth quarter of 2024.

**Halten East** (Equinor 57.70%, operator) gas fields at Haltenbanken in the Norwegian Sea are being developed in a subsea solution, to be tied back to the Åsgard B platform. The plan for development and operation was approved on 13 February 2023. The development is expected to be brought on stream in early 2025.

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**Hywind Tampen** (Equinor 33.28% - Snorre and 51.00% - Gullfaks, operator) is a 94.6 MW floating offshore wind pilot being developed to provide power from 11 wind turbines to the **Snorre** and **Gullfaks** installations in the Tampen area of the North Sea. The MPE approved the plans for development and operation on 8 April 2020. The 11 wind turbines under installation are based on the Hywind technology developed by Equinor, and are expected to meet around 35% of the annual power needs of the five offshore platforms Snorre A, B and C and Gullfaks A and B. Construction started in October 2020. The wind farm started generating power from the first turbine in November 2022, and all turbines are expected to be brought on line in 2023.

**Johan Castberg** (Equinor 50.00%, operator) develops the three oil discoveries Skrugard, Havis and Drivis, around 240 km northwest of Hammerfest in the Barents Sea. The MPE approved the plan for development and operation of the field on 28 June 2018. The development includes an FPSO and a subsea development with 30 wells, ten subsea templates and two satellite structures. The new FPSO hull sailed from Singapore in February 2022, headed for the Stord yard. In August 2022, the crane vessel Sleipir installed the turret manifold, winch and gantry - the last two modules - onto the FPSO. Covid-19 precautionary measures, such as manning limitations and quarantining, affected progress, and first oil was rescheduled to the fourth quarter of 2024.

**Kristin South** (Equinor 54.82%, operator) is a development of the Kristin Q segment and Lavrans discovery in the Norwegian Sea. The MPE approved

the plan for development and operation of the Kristin South oil and gas field on 2 February 2022. The field is being developed as a subsea solution with two subsea templates tied back to the Kristin platform. Production is scheduled to begin in 2024.

**Ormen Lange phase 3** (Equinor 25.35%, operated by A/S Norske Shell) in this third phase of the development of the gas field in the Norwegian Sea, two new subsea compressor stations will be tied into the existing Ormen Lange pipeline to enhance field recovery. The MPE approved the PDO on 8 July 2022.

**Oseberg gas phase 2 and power from shore** (Equinor 49.30%, operator) is a development to increase gas production and reduce carbon emissions from the Oseberg field in the North Sea. The development comprises installation of two new compressors to increase recovery with low pressure production, and the installation of a 118 km cable to Kolsnes to connect to the onshore power grid for a partial electrification of the Oseberg field centre and the Oseberg South platform. The MPE approved the plan for development and operation on 1 December 2022. The project is expected to be completed in 2026.

**Troll West electrification** (Equinor 30.60%, operator) is a development to provide Troll B and C with electric power in a new subsea high-tension cable from from Kolsnes in Øygarden. The MPE approved the plan for development and operation of the Troll West electrification on 17 December 2021. In 2022, topside modification work was being conducted at Troll B and C platforms. The Kolsnes - Troll B static cable was laid in

![img-5.jpeg](img-5.jpeg)

The FPSO for the Johan Castberg field in the Barents Sea floats off the submerged heavy-load corner Boka Vanguard, Høylandsgyl, headed for the Aker Solutions yard at Stord, Norway.

third quarter of 2022. The fabrication of the transformer module at Stord also began in third quarter. **Troll B** is planned to be partially electrified by 2024 and Troll C is expected to be fully electrified by 2026.

## Decommissioning on the NCS

Under the Petroleum Act, the Norwegian government has imposed strict regulations for removal and disposal of offshore oil and gas installations. The Convention for the Protection of the Marine Environment of the Northeast Atlantic (OSPAR), which Norway has

committed to, gives requirements with respect to how disused offshore oil and gas installations are to be disposed of.

**Heimdal** (Equinor 29.40%, operator) is due to cease production in 2023. The Heimdal main platform and Gassos/Gassled's riser platform are scheduled to be removed between 2025 and 2027. The platforms will be brought to shore at Eldøyane, Stord, for dismantling and recycling.

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FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

**Veslefrikk** (Equinor 18.00%, operator) ceased production on 17 February 2022. Plugging of wells started early in 2021 and was completed in the first quarter of 2022. Veslefrikk B was towed to shore for dismantling and recycling at MARS in Frederikshavn, Denmark, in summer 2022. Veslefrikk A is scheduled to be removed in 2025/2026 and will be brought to Eldøyane, Stord, for dismantling and recycling.

For further information about decommissioning, see note 23 Provisions and other liabilities to the Consolidated financial statements.

## Climate measures

The electrification of offshore and onshore installations is a prerequisite for Norway reaching its national climate goals under the Paris agreement. Work is underway to electrify Snørre and Gullfaks with renewable power from Hywind Tampen floating windfarm, and to electrify Sleipner, Gina Krog, Oseberg field centre, Oseberg South, Troll B and Troll C (fully) with power from shore. Plans to electrify Snøhvit and Hammerfest LNG and Njord were submitted to the authorities in December. The development of the Trollvind floating windfarm is being considered.

- Power production from Hywind Tampen floating windfarm began in November. Once all 11 turbines are on stream in 2023, Hywind Tampen is expected to provide around 35% of the power need of the five Snørre and Gullfaks platforms. This is expected to cut CO2 emissions from the fields by around 200,000 tonnes a year.

For more information about our renewables position including floating windfarms using our Hywind

technology, see section 3.2 High-value growth in renewables (REN).

- The ongoing electrification of offshore installations with power from shore is expected to cut CO2 emissions from the fields as follows: Sleipner 150,000 tonnes a year, Gina Krog 320,000 tonnes a year, Oseberg 320,000 tonnes a year and Troll 450,000 tonnes a year. In the plan submitted for Njord, the electrification is expected to cut CO2 emissions by 130,000 tonnes a year.
- At Melsøya, Equinor plans installing electric onshore compressors for Snøhvit and electrifying operations at Hammerfest LNG. The development will expand gas processing capacity and cut CO2 emissions by around 850,000 tonnes a year. For more information about our activities within marketing, transport and processing of gas and liquids, see section 3.3 Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions.

Equinor and its Troll and Oseberg licence partners are considering developing Trollvind, a floating windfarm in the Troll area. If realised, Trollvind will provide renewable power to the Troll and Oseberg offshore installations and the Kollons onshore processing plant via an onshore connection point. For more information about our renewables position including floating windfarms using our Hywind technology, see section 3.2 High-value growth in renewables (REN).

Carbon capture and storage are to play a major role in the Norwegian climate solution. Northern Lights was in 2019 granted the first licence on the NCS for CO2 storage, and the development of the infrastructure is well underway. In 2022, Equinor was awarded the operatorship of Smeaheia licence for CO2 storage on the NCS.

![img-6.jpeg](img-6.jpeg)

Hywind floating offshore wind farm, North Sea, Norway, to provide five offshore platforms with power.

- Together with Shell and TotalEnergies, Equinor is developing the Northern Lights infrastructure for transport and storage of CO2 in the northern part of the North Sea. A first well was drilled in 2020, confirming that the reservoir rocks are suited for CO2 storage. A second injection well was completed in November 2022, and Northern Lights is expected to come on stream in 2024. The project is part of Langship, the Norwegian authorities' project for full-scale carbon capture, transport and storage in Norway.

- In April 2022, Equinor was awarded the operatorship for developing the CO2 storage Smeaheia in the North Sea. For more information about our development of CO2 storages and low-carbon solutions, see section 3.3 Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions.

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ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## 3.1.2 Exploration & Production International

The Exploration & Production International (E&P International) reporting segment covers exploration, development and production of oil and gas outside the NCS and the US.

E&P International was present in 13 countries and had production in 11 countries in 2022. E&P International accounted for 16% of Equinor's total equity production in 2022, the same level as in 2021.

Equinor continues to shape the international oil and gas portfolio, focusing activity in areas with high value potential, and continues to optimise its strong set of development projects.

In 2022, Equinor continued to implement measures to deliver on our climate ambitions and worked closely with partners to drive CO$_{2}$ and methane reductions in both our operated and non-operated assets.

Producing fields and field developments operated by Equinor and Equinor's licence partners

![img-7.jpeg](img-7.jpeg)

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INFORMATION

# Key events

- On 28 February, Equinor announced its decision to stop any new investments into Russia, and to start the process of exiting from Equinor's Russian joint ventures. On 25 May, the exit from all joint ventures was completed in accordance with Norwegian and EU sanctions, and on 2 September, the exit from Kharyaga was completed. Following the exit from Kharyaga, Equinor has no remaining assets or liabilities relating to projects in Russia.
- On 31 May, Equinor completed the transaction to acquire all of Spirit Energy's production licences in the Statfjord area. Upon completion Equinor UK Limited obtained 14.53% in Statfjord Unit and increased its interest in Barnacle in the UK from 65.70% to 100%.
- On 16 July, Equinor resumed production from the Peregrino field in Brazil, which had been shut down since April 2020.

- On 12 August, Equinor together with its partners, signed agreements which will extend the production sharing contract and lease for OML 128 in Agbami licence in Nigeria for 20 more years.
- On 10 October, the new Peregrino C platform in Brazil came on stream, extending the field life and reducing CO2 emissions per barrel.
- On 3 March 2023, Equinor UK Limited announced an agreement to purchase Suncor Energy UK Limited. With this, Equinor will acquire a non-operated 29.89% interest in the producing Buzzard oil field and increase its operated interest in the future development of the Rosebank oil field from 40% to 80%. The transaction is subject to regulatory approval and is expected to be completed in mid-2023.

For more information about the transactions included above see note 6 Acquisitions and disposals to the Consolidated financial statements.

![img-8.jpeg](img-8.jpeg)

![img-9.jpeg](img-9.jpeg)

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ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## Performance review

### E&P International - condensed income statement under IFRS

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| Revenues | 7,224 | 5,346 | 35% |
| Net income/(loss) from equity accounted investments | 172 | 214 | (20%) |
| Other income | 35 | 5 | >100% |
| Total revenues and other income | 7,431 | 5,566 | 34% |
| Purchases [net of inventory] | (116) | (58) | >100% |
| Operating, selling, general and administrative expenses | (1,698) | (1,406) | 21% |
| Depreciation, amortisation and net impairment losses | (1,731) | (3,321) | (48%) |
| Exploration expenses | (638) | (451) | 41% |
| Net operating income/(loss) | 3,248 | 329 | >100% |

| Operational information | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| E&P equity liquid and gas production (mboe/day) | 328 | 342 | (4%) |
| E&P entitlement liquid and gas production (mboe/day) | 235 | 246 | (5%) |
| Production sharing agreements (PSA) effects | 94 | 96 | (3%) |
| Average liquids price (USD/bbl) | 92.0 | 67.6 | 36% |

## Operational performance

Equino's exit from Russia and a natural decline for several mature fields were the main drivers for the decrease in production in 2022 compared to 2021. This was partially offset by the restart of production at the Peregrino field in Brazil in July 2022 and the start-up of Peregrino phase 2 in October. The lower effect from production sharing agreements (PSA) in 2022 compared to 2021 was mainly caused by lower production from several fields with PSAs, partially offset by effects from increased liquids and gas prices.

## Financial performance

Higher realised liquids and gas prices were the main drivers for the increase in revenues in 2022 compared to 2021. This was partially offset by lower entitlement production. The decrease in net income from equity accounted investments was primarily caused by Equino's exit from Russia, partially offset by increased income from Argentina.

Operations and maintenance expenses increased mainly due to the restart of production at the Peregrino field. Royalties and production fees increased as result of improved prices and field specific volumes.

Depreciation decreased in 2022 compared to 2021 primarily due to effects from an impairment in 2021, lower production from declining fields, and portfolio changes. This was partially offset by additional investments, and depreciations for the Peregrino field following the restart of production in 2022.

Net impairments related to property, plant, and equipment decreased from USD 1,587 million in 2021 to USD 286 million in 2022. In 2022, the main contributors were impairments related to Equino's exit from Russia, partially offset by an impairment reversal of an asset in the Europe and Asia area mainly caused by optimisation of the production profile and higher prices, supported by a slight increase in reserves estimates. In 2021, the main contributors were impairments of assets in the Europe and Asia area caused by reduced reserve estimates.

Expensing of previously capitalised well cost and higher expensed drilling costs were the main drivers for the increase in exploration expenses in 2022 compared to 2021.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 16,418 million for the year ending 31 December 2022, compared to USD 16,839 million for the year ending 31 December 2021.

## International production

In production sharing agreements (PSAs) and production sharing contracts (PSCs), entitlement production differs from equity production. Equity production in PSAs and PSCs represent Equino's percentage ownership in a particular field, whereas entitlement production represents Equino's share of the volumes distributed to the partners in the field, which is subject to several deductions including but not limited to royalties and the host government's share of profit oil (see section 5.9 Terms and abbreviations).

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# Average equity production by country in 2022
mboe/day

![img-0.jpeg](img-0.jpeg)

For further detailed production data see section 5.5
Production per field.

Equinor's entitlement production outside Norway
and the US was 12% of Equinor's total entitlement
production in 2022.

# Americas (excluding the US)

# Argentina

Bandurria Sur is an onshore block in Argentina's
Neuquén province in the core area of the prolific Vaca
Muerta play. Equinor entered the licence in 2020.

# Brazil

Peregrino is a heavy oil field in the offshore Campos
basin and is operated by Equinor. The oil is produced
from three wellhead platforms with drilling capability,
processed on the FPSO Peregrino and offloaded to
shuttle tankers.

Production from Peregrino started in 2011 but was
shut down in April 2020 for unplanned maintenance
of the subsea equipment. Production was resumed in
July 2022 following major maintenance, upgrade and
repairs on the FPSO to allow a safe restart.

As part of the second phase of the field development,
the third wellhead platform, Peregrino C, was brought
on stream in October 2022, extending the field life.
Peregrino C will import gas and lead to fuel switching
on the FPSO, ensuring a significant reduction in diesel
consumption, which will avoid 100 kilotonnes of CO2
emissions annually.

The Roncador field is in the offshore Campos basin
and is operated by Petrobras. The field has been in
production since 1999. The hydrocarbons are produced
from two semi-submersibles and two FPSOs. The oil is
offloaded to shuttle tankers, and the gas is drained out
through pipelines to shore.

# Canada

Equinor has interests in the Jeanne d'Arc basin
offshore the province of Newfoundland and Labrador
in the partner operated producing oil fields Hebron,
Hibernia and Hibernia Southern Extension.

# Africa

# Algeria

In Salah is an onshore gas field in the central Sahara
area which consists of seven fields. The Northern fields
have been operating since 2004. The Southern fields
have been operating since 2016 and are tied back into
the Northern fields' facilities.

In Amenas is an onshore gas field which contains
significant liquid volumes. The infrastructure includes
a gas processing plant which is connected to the
Sonatrach distribution system. In 2022, two gas turbine
generators were reduced to one, optimising power
usage and reducing emissions.

# Average daily entitlement production

| Area production | 2022 |  |  | 2021 |  |  | 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Oil and NGL mboe/day | Natural gas mmcm/day | mboe/day | Oil and NGL mboe/day | Natural gas mmcm/day | mboe/day | Oil and NGL mboe/day | Natural gas mmcm/day | mboe/day |
| Americas (excluding US) | 66 | 1 | 69 | 52 | 1 | 56 | 67 | 1 | 72 |
| Africa | 95 | 2 | 111 | 94 | 3 | 115 | 115 | 3 | 136 |
| Eurasia | 30 | 2 | 42 | 42 | 2 | 54 | 47 | 2 | 63 |
| Equity accounted production | 12 | 0 | 13 | 19 | 0 | 21 | 6 | 0 | 7 |
| Total | 203 | 5 | 235 | 207 | 6 | 246 | 236 | 7 | 278 |

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FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

The In Amenas and In Salah licences are jointly operated by Sonatrach, Equinor and Eni. Separate PSAs, including mechanisms for revenue sharing, govern the rights and obligations of the parties.

### Angola

The deep-water blocks **17**, **15** and **31** contributed 34% of Equinor's equity liquid production outside the NCS and the US in 2022. Each block is governed by a PSA, which sets out the rights and obligations of the participants, including mechanisms for sharing the production with the Angolan state oil company Sonangol.

Block 17 has production from four FPSOs: CLOV, Dalia, Girassol and Pazflor. New projects on Dalia, CLOV, and Pazflor are being developed to stem a natural decline in production.

Block 15 has production from four FPSOs: Kizomba A, Kizomba B, Kizomba C-Monda, and Kizomba C-Saxi Batuque. In 2022, there was a new oil discovery in Bavuca South (Kizomba B area) which is planned to be developed.

Block 31 has production from one FPSO producing from the PSVM fields.

The FPSOs serve as production hubs, which receive oil from more than one field through multiple wells.

The operators in Angola are improving methane leak detection with aircraft-based surveys of offshore facilities. Implementation of a more stringent flaring policy reduced emissions in block 17. In addition,

improvements to equipment reliability and changes to reservoir management reduced emissions in blocks 17 and 31.

### Libya

Equinor has an ownership interest in two oil fields onshore in Libya, **Murzuq** and **Mabruk**. Mabruk was damaged during the conflict in Libya in 2015. A project to re-develop the field is ongoing.

### Nigeria

**Agbami** is a deep-water field located off the coast of the Central Niger Delta region. The field straddles the two licences OML 127 and OML 128, operated by Chevron under a Unit agreement. The Agbami field is governed by a PSC.

For information related to the Agbami redetermination process, see note 26. Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements.

### Eurasia

#### Azerbaijan

**Azeri-Chirag-Gunashli (ACG)** is an oil field located offshore Azerbaijan. The crude oil is sent to the Sangachal Terminal, where it is processed prior to export. The Baku-Tbilisi-Ceyhan (BTC) pipeline is the main export route, in which Equinor holds 8.71%. The construction of the **Azeri Central East (ACE)** platform is in progress, and all engineering, procurement and onshore fabrication work is expected to be completed in 2023.

![img-1.jpeg](img-1.jpeg)

Mariner A. North Sea, UK

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# Ireland

In November 2021 Equinor entered into an agreement with Vermilion Energy Inc to sell Equinor's non-operated equity position in the Corrib gas field offshore Ireland. The effective date for the transaction was 1 January 2022. Closing is expected in the first quarter of 2023.

For more information about the transaction see note 6. Acquisitions and disposals to the Consolidated financial statements.

# United Kingdom

Mariner is a heavy oil field located in the North Sea, east of the Shetland Islands, which is operated by Equinor. The field has one combined platform for production, drilling and accommodation. Oil is exported by offshore loading from a floating storage unit. Production from the field started in August 2019.

The Statfjord Unit field is one of the Equinor-operated fields in the Statfjord area, which spans the boundary between the NCS and UKCS. The Statfjord Unit development covers the Statfjord A, B and C platforms.

# International exploration

In 2022, Equinor and its partners drilled and completed two wells in Angola, one well in Brazil, and three wells in Canada. In Argentina onshore, Equinor and partners completed drilling of six appraisal wells in the Bajo del Toro licence in Vaca Muerta and started test production in July. In Algeria, Equinor decided to exit the Timmis licence.

# Exploratory wells drilled1)

|  | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Americas (excluding US) |  |  |  |
| Equinor operated | 3 | 0 | 3 |
| Partner operated | 7 | 2 | 3 |
| Africa |  |  |  |
| Equinor operated | 0 | 0 | 0 |
| Partner operated | 2 | 0 | 1 |
| Other regions |  |  |  |
| Equinor operated | 0 | 1 | 0 |
| Partner operated | 0 | 0 | 4 |
| Total (gross) | 12 | 3 | 11 |

1) Wells completed during the year, including appraisals of earlier discoveries.

# Fields under development internationally

# Americas (excluding US)

# Brazil

Bacalhau (Equinor 40%, operator) oil and gas discovery straddles BM-S-8 and Bacalhau North in the Santos basin, off the coast of the state of Sao Paulo.

The investment decision for Bacalhau phase 1 was made in June 2021. The field is being developed with subsea wells tied back to an FPSO, and first oil is scheduled for 2025. In November 2022, the first production well was spudded.

A second phase of the Bacalhau field development is being considered to fully exploit the value potential.

# Discoveries with potential for development

# Americas (excluding US)

# Brazil

BM-C-33 (Equinor 35%, operator) includes the oil and gas discoveries Pao de Acucar, Govea and Seat in the southwestern part of the Campos basin, off the coast of the state of Rio de Janeiro, Brazil. The project is maturing towards sanction. A gas export solution is under consideration.

# Canada

Bay du Nord (Equinor 65% now, 58.5% anticipated at sanction, operator) is an oil field in the Flemish pass basin which was discovered by Equinor in 2013. The field is around 500 km northeast of St. John's in Newfoundland and Labrador, Canada. Developing Bay du Nord and nearby discoveries in a subsea solution tied back to an FPSO is under consideration. In April 2022, the federal Canadian authorities approved the environmental impact assessment. The renegotiation of a framework agreement with the government of Newfoundland and Labrador has started.

# Africa

# Tanzania

Block 2 (Equinor 65%, operator) Equinor made several large gas discoveries in block 2 in the Indian Ocean, off southern Tanzania, between 2012 and 2015. The partners of block 2 (Equinor, operator) and

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ADDITIONAL^{}[] INFORMATION

blocks 1 and 4 (Shell, operator) are collaborating on the future development of the discoveries and are jointly negotiating with the government of Tanzania. On 11 June, 2022, the partners signed a Framework Agreement with the government of Tanzania, aligning on some of the key fundamentals needed for the development of an LNG project.

## Eurasia

### Azerbaijan

The **Karabagh** (Equinor 50%, operated by Karabagh Joint Operating Company) field is located off the coast of Azerbaijan. In 2018 Equinor entered into an agreement with SOCAR (the Azerbaijani state oil company) to enter the Karabagh and Ashrafi-Dan Uduzu-Aypara (ADUA) exploration licences with a 50% share in each.

A joint operating company was formed in 2020 and started working on the field development solution.

### United Kingdom

The **Rosebank** (Equinor 40%, operator) oil and gas field is located northwest of the Shetland Islands, on the UKCS. Equinor and its licence partners continue to mature and improve the business case for its development. Equinor's stake in Rosebank will increase to 80% with the acquisition of Suncor Energy UK Limited, announced on 3 March 2023. The transaction is subject to regulatory approval and is expected to be completed in mid-2023.

![img-2.jpeg](img-2.jpeg)

The FPSO for the Bacalhau field in Brazil under construction.

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## 3.1.3 Exploration & Production USA

The Exploration & Production USA (E&P USA) reporting segment covers exploration, development and production of oil and gas in the US.

E&P USA produced around 16% of Equinor's total equity production of oil and gas in 2022, compared to 18% in 2021.

Equinor has continued shaping the US oil and gas portfolio, focusing activity in areas with high value potential, and continues to optimise its strong asset base.

### Key events

- On 5 May, Equinor received a 60% interest and operatorship in **North Platte**. This followed TotalEnergies decision, in February 2022, to not sanction the project and to withdraw from it.
- On 29 June, Equinor transferred 51% of its interest in the **North Platte** deep water development project in the US Gulf of Mexico.

Received 60% stake and operatorship in Sparta (ex-North Platte) in the US Gulf of Mexico

![img-3.jpeg](img-3.jpeg)

- Equinor retained a 49% interest in the project, and Shell will become the new operator of the field. The development was renamed to **Sparta** to reflect this change.
- On 16 February 2023, production started on the **Vito** platform in the US Gulf of Mexico, capable of producing 100,000 barrels of oil per day. Equinor has a 36.89% interest in the field, which is operated by Shell Offshore Inc.

In 2022, Equinor entered into a Cooperation Agreement with Shell and US Steel to advance a collaborative clean energy hub in the tri-state region of Ohio, West Virginia and Pennsylvania. The hub will focus on decarbonisation opportunities such as carbon capture utilisation and storage (CCUS), as well as blue hydrogen production and utilisation. In 2022, Equinor also signed a memorandum of understanding (MOU) with Battelle, the world's largest independent research and development company, to work together on assessing the tri-state area's carbon storage potential.

### Performance review

#### E&P USA - condensed income statement under IFRS

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| Revenues | 5,523 | 4,149 | 33% |
| Total revenues and other income | 5,523 | 4,149 | 33% |
| Operating, selling, general and administrative expenses | (938) | (1,074) | 13% |
| Depreciation, amortisation and net impairment losses | (361) | (1,734) | 79% |
| Exploration expenses | (201) | (190) | (6%) |
| Net operating income/(loss) | 4,022 | 1,150 | -100% |

| Operational information | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| E&P equity liquids and gas production (mboe/day) | 324 | 373 | (13%) |
| E&P entitlement liquid and gas production (mboe/day) | 279 | 321 | (13%) |
| Royalties | 44 | 52 | (14%) |
| Average liquids price (USD/bbl) | 81.0 | 58.3 | 39% |
| Average internal gas price (USD/mmbtu) | 5.55 | 2.89 | 92% |

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## Operational performance

The average daily production of liquids and gas declined by 13%, mainly due to Equinor's divestment of its Bakken assets in 2021 in addition to the natural decline from our operated and non-operated onshore assets in the Appalachian Basin. Furthermore, Caesar Tonga was impacted by more unexpected down-time and planned turnarounds in 2022, driving Gulf of Mexico production down 3%.

## Financial performance

Higher realised liquids and gas prices were the main drivers for the increase in revenues in 2022 compared to 2021. This was partially offset by lower entitlement production.

Operating expenses decreased due to lower transportation related costs resulting from lower production and the divestment of Bakken partially offset by higher operations and maintenance expenses.

Depreciation decreased due to lower production and improved reserves partially offset by effects from impairment reversals and additional investments during 2022.

Net impairment reversals related to property, plant, and equipment amounted to USD 1,060 million in 2022 driven primarily by improved short-term commodity price assumptions compared to net impairments of USD 69 million in 2021.

Expensing of a non-commercial exploration discovery in the Gulf of Mexico was the main driver for the increase in exploration expenses in 2022 compared to 2021.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 11,311 million for the year ending 31 December 2022, compared to USD 11,406 million for the year ending 31 December 2021.

## US production

Entitlement production differs from equity production in the USA where entitlement production is expressed net of royalty interests. Equity production represents volumes that correspond to Equinor's percentage ownership in a particular field and is larger than Equinor's entitlement production where the royalties are excluded from entitlement production.

For further detailed production data see section 5.5 Production per field.

### Average daily entitlement production

| Area production | 2022 |  |  | 2021 |  |  | 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Oil and NGL mbbl/day | Natural gas mmcm/day | mboe/day | Oil and NGL mbbl/day | Natural gas mmcm/day | mboe/day | Oil and NGL mbbl/day | Natural gas mmcm/day | mboe/day |
| USA | 114 | 26 | 279 | 128 | 31 | 321 | 163 | 29 | 344 |

Equinor 2022 integrated annual report

### Average equity production by asset in 2022
mboe/day

![img-4.jpeg](img-4.jpeg)

Equinor's entitlement production in the USA was 15% of Equinor's total entitlement production in 2022.

The following table shows E&P USAs average daily entitlement production of liquids and natural gas for the years ended 31 December 2022, 2021, and 2020.

## Offshore Gulf of Mexico

The **Titan** oil field is an Equinor-operated asset located in the Mississippi Canyon and is producing through a floating spar facility.

The **Tahiti**, **Heidelberg**, **Caesar Tonga** and **Stampede** oil fields are partner-operated assets located in the Green Canyon area. The Tahiti and Heidelberg oil fields produce through floating spar facilities. The Caesar Tonga oil field is tied back to the Anadarko-operated Constitution spar host. The Stampede oil field produces through a tension-leg platform with downhole gas lift.

The **Jack**, **St. Malo**, **Julia** and **Big Foot** oil fields are partner-operated assets located in the Walker Ridge area. The Jack, St. Malo and Julia oil fields are subsea tiebacks to the Chevron-operated Walker Ridge regional host facility. The Big Foot oil field produces through a dry tree tension-leg platform with a drilling rig.

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## Onshore portfolio

Since its entry into US shale in 2008, Equinor has continued to optimise its portfolio through acreage acquisitions and divestments. Equinor has an ownership interest in the **Marcellus** shale gas play, located in the **Appalachian** region in northeast US. The position is mostly partner-operated. Since 2012, Equinor has also been an operator in the Appalachian region in the state of Ohio, developing the Marcellus and Utica formations.

In addition, Equinor participates in natural gas gathering system and gas treatment and processing facilities in Appalachian basin assets to provide flow assurance for Equinor's upstream production.

For further detailed production data and information see section 5.5 Production per field.

## US exploration

Throughout 2022, Equinor continued its activity in US Gulf of Mexico, which is one of our core areas for exploration.

Equinor completed drilling an operated appraisal well located in the Walker Ridge area of the **US Gulf of Mexico** in 2022 which was deemed non-commercial. In addition, Equinor was awarded one lease in 2022.

## Fields under development in the US

### Offshore Gulf of Mexico

The **Vito development project** (Equinor 36.89%, operated by Shell) is a Miocene oil discovery located in the Mississippi Canyon area. The development project

consists of a light-weight semisubmersible platform with a single eight-well subsea manifold. The project was sanctioned for development in April 2018. On 16 February 2023, production started on the Vito platform, capable of producing 100,000 barrels of oil per day.

The **St. Malo water injection project** (Equinor 21.50%, operated by Chevron) is a secondary depletion project sanctioned in 2019. Both production wells are online, and two injector wells have been drilled. Both injector completions and the last injector conversion were completed in the second half of 2022.

## Discoveries with potential for development

### Offshore Gulf of Mexico

**Sparta** (formerly North Platte) (Equinor 49%, operated by Shell) is a Paleogene oil discovery in the Garden Banks area. It has been fully appraised since its discovery with three drilled wells and three sidetracks. In February 2022, the operator notified Equinor and the relevant authorities of its decision to withdraw from the North Platte project. In May 2022, Equinor received a 60% interest and the operatorship from TotalEnergies. Subsequently in June 2022, Equinor assigned 51% interest and operatorship to Shell. The project was also renamed Sparta.

![img-5.jpeg](img-5.jpeg)

Jackup drilling rig Maersk Developer,

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ADDITIONAL^{}[] INFORMATION

## 3.2 High-value growth in renewables

### Developing a high-value renewables business

Equinor continues to make progress on its strategic aim to accelerate profitable growth in renewables.

We aim to install 12-16 GW of renewables capacity and produce 35-60 TWh annually by 2030. We will achieve this by becoming a global offshore wind major and establishing ourselves as a market driven power producer in selected markets by pursuing opportunities in onshore renewables and taking on more merchant risk exposure.

In 2022, we achieved first power from Hywind Tampen (our first commercial-scale floating wind farm, which delivers renewable power to the Gulffaks and Snorre oil and gas platforms in the North Sea) and Stepinel (our first Polish solar farm which entered the portfolio as part of the Wenta acquisition in 2021). During the year we continued to strengthen our floating wind leadership by winning a ~2GW lease in Morro Bay, California. We also acquired two medium-sized onshore platforms: East Point Energy (a battery storage developer) and BeGreen (a Danish onshore developer).

We remain value-driven and use different value drivers from project development and execution, to trading and power market risk management. We also use select divestments to drive and shape business models for different markets. The renewable industry is developing

fast, costs are increasing, power prices are high, and the supply chain is tightening. We remain disciplined in expensive offshore wind auctions and have accelerated our pace to become more market driven.

Equinor is evolving into an integrated power producer with a diversified power portfolio. As power markets mature, our strategic pillars are merging to become multi-market and multi-technology. We see opportunities will come in the form of broad energy offerings, managing merchant risk, growing our offshore wind position, and cementing our floating wind leadership.

### Overview

#### Offshore wind

We are developing as a global offshore wind major, powering European homes with renewable electricity from offshore wind farms in the UK and Germany and building material clusters in the North Sea, the Baltic Sea and the US. In parallel, we are actively positioning ourselves to access emerging markets globally. Equinor sees potential for floating offshore wind projects in Norway, Europe, the US and Asia and is accelerating the development of this technology to strengthen our position in the industry. Floating wind is still at an early development phase compared to other renewable energy sources.

![img-6.jpeg](img-6.jpeg)

Assembly of power structures for the Hywind Tampen floating offshore wind farm, Wergeland, Oda, Oulen, Norway.

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Equinor has long experience with offshore wind power in the UK, having built and brought into operation Sheringham Shoal (Equinor 40%, operator), Dudgeon (Equinor 35%, operator) and Hywind Scotland (Equinor 75%, operator). Together with the partners we are also developing Dudgeon extension project and Sheringham Shoal extension project. Together with our partners SSE Renewables and Vårgrunn we are developing Dogger Bank, the world's biggest offshore wind farm (Equinor 40%, operated by SSE Renewables during the development phase. Equinor assumes operatorship when the windfarms come on stream). Some of the capital expenditure is financed through project financing. At year-end 2022, Equinor's share of the project financing debt for the Dudgeon project amounted to USD 0.4 billion, and for the Dogger Bank projects USD 1.9 billion.

Equinor is pursuing the development of offshore wind projects on the east and west coast of the US. Together with our partner bp Equinor is pursuing the development of the Empire Wind and Beacon Wind offshore wind projects (Equinor 50%, operator). The Empire Wind 1 & 2 and Beacon Wind 1 projects have been selected to provide New York State with offshore wind power and will provide a total of 3.3 gigawatts (GW).

As the provisional winner of a lease area on the California Pacific outer continental shelf, Equinor continues to lead the way in growing the offshore wind industry in the US. With a bid of USD 130 million for 80,062 acres in the Pacific Ocean, Equinor secured

![img-7.jpeg](img-7.jpeg)

The Peterhead quay for the crew transfer vessel, Hywind Scotland floating offshore wind farm, UK.

a lease of around 2 GW in the Morro Bay area which has the potential to generate enough energy to power some 750,000 US homes.

In Poland, Equinor has an interest (50%, operator) in the three Bałtyk offshore wind development projects (MFW Bałtyk III, MFW Bałtyk II and MFW Bałtyk I). Through this position, we can build scale and value in what we see as an important energy region.

Norway and the North Sea have some of the world's best wind resources. Large-scale offshore wind can create new industrial opportunities for Norway. We have developed the first floating offshore wind farm to supply renewable power to oil and gas installations in Norway. The Snorre and Gulfsaks oil and gas platforms are the first ever with power supply from a floating offshore wind farm.

In addition to our offshore wind presence in the UK, the US, Poland and Norway, we are present in Germany, Japan, South Korea, France, Spain and Vietnam.

We are a partner (25%) in the Arkona offshore windfarm in Germany, located in the Baltic Sea. The wind farm started production in 2019.

Together with our partners, the Korea National Oil Corporation and Korea East-West Power CO, we have the ambition to develop a floating offshore wind farm in South Korea (Donghae 1). We have also started conducting the wind measurements that are needed to assess the potential for developing a floating offshore wind project (Firefly).

## Onshore renewables

### Solar portfolio

With the increasing demand for solar, wind and storage solutions as integrated parts of the energy system, Equinor is gradually growing its presence in onshore renewables in selected power markets.

In Brazil, Equinor has an interest in Apodi (Equinor 43.75%, operated by Scatec), and the plant started production in 2018. The final investment decision was made in the fourth quarter of 2022 on the 531 MW Mendubim solar project in Brazil (Equinor 33.3%, operated by Scatec), and the financial close of the project was also reached in the fourth quarter of 2022.

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Equinor has an interest in the 117 MW Guañizuli II A solar producing plant in Argentina (Equinor 50%, operated by Scatec).

In 2021, Equinor acquired the Polish solar developer **Wento** (Equinor 100%). Its first solar plant, Stępień, was ready for operations in October 2022, and two more reached final investment decision with production expected to start in 2023/2024.

In November, Equinor signed an agreement to acquire 100% of the shares in **BeGreen**, based in Denmark, a leading solar project developer in Northwest Europe. The transaction closed on 26 January 2023 after receiving the necessary regulatory approvals.

Equinor holds a 13.1% ownership share in Scatec, an integrated independent renewable power producer. This financial investment is included in the Other Group reporting segment.

#### Storage systems and other activities

Equinor sees a solid opportunity to create profitable businesses by deploying batteries and energy storage assets to satisfy the growing need to stabilise power markets, either as a part of offshore or onshore renewable assets or as separate units supplying services to the grid. In 2022, Equinor signed an agreement to buy a 100% stake in the US-based battery storage developer East Point Energy LLC. The acquisition provides a platform for broadening our energy offerings in the US.

In 2022, Equinor reached final investment decision on the Blandford Road battery storage project in UK.

#### The renewable portfolio has been strengthened in 2022 and early 2023 through the following milestones:

![img-0.jpeg](img-0.jpeg)

This is the first commercial battery storage asset for Equinor, and the first project realised from the strategic partnership between Equinor and Noriker Power. The project will start construction in January 2023 and is expected to be operational by late 2023.

Equinor is also exploring opportunities and cooperation within the green hydrogen sector. Hydrogen is expected to become an integrated part of future energy systems and Equinor is taking positions adding clean hydrogen as an enabler for the transport and storage of clean energy produced by renewables.

#### Offshore wind

- On 22 February, Equinor and partner Polenergia selected **Siemens Gamesa** as the preferred supplier of wind turbine generators for the **MFW Baltyk II** and **MFW Baltyk III** projects, two of the largest and most advanced offshore wind farms being developed in Poland, with a total installed capacity of 1,440 MW.
- On 3 March, Equinor and be signed an agreement to transform **South Brooklyn Marine Terminal (SBMT)** in Brooklyn, New York into a world-class offshore wind staging and assembling facility and to become

the **operations and maintenance (O&M) base** both for the **Empire Wind** and **Beacon Wind** projects, as well as for the growing US offshore industry on the East Coast.

- On 6 April, Equinor teamed up with Naturgy to enter a development agreement prior to Spain's first upcoming offshore wind auction off the coast of the Canary Islands in 2023.
- On 29 April, the Dogger Bank Wind Farm announced the start of offshore construction work with the installation of export cable off the Yorkshire coast.
- On 13 November, Equinor started production at **Hywind Tampen**, Norway's first and the world's largest floating wind farm. The power will be delivered to the Guillifax and Snorre platform in the North Sea.
- On 7 December, Equinor became the provisional winner of a lease area in California, which will strengthen its floating offshore wind position.

#### Onshore renewables

- On 12 July, Equinor signed an agreement to buy a 100% stake in the US based battery storage developer **East Point Energy LLC**.

- On 3 October, Equinor approved the final investment decision on the **Blandford Road battery storage** project in the south of the UK. This is the first commercial battery storage asset for Equinor, and the first project realised from the strategic partnership between Equinor and Noriker Power. Construction will start in January 2023 and the project is expected to be operational in the third quarter of 2023.
- On 4 October, Equinor's first solar plant in Poland (**Stępień** with 58MW capacity) was completed and ready for operation. Stępień was developed and will be operated by Wento, Equinor's wholly-owned subsidiary.
- On 2 November, Equinor signed an agreement to acquire **BeGreen**, a leading solar project developer in Northwest Europe, as a wholly-owned Equinor subsidiary.
- On 7 December, Equinor made final investment decision on the 531 MW **Mendubim** solar project in Brazil. Early phase construction works of this project started in summer 2022 and realized in partnership with Scatec and Hydro Rein. Equinor has 33.3% in the project.

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## Performance review

### REN - condensed income statement under IFRS

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| Revenues | 16 | 8 | 94% |
| Net income/(loss) from equity accounted investments | 58 | 16 | >100% |
| Other income | 111 | 1,386 | (92%) |
| Total revenues and other income | 185 | 1,411 | (87%) |
| Operating, selling, general and administrative expenses | (265) | (163) | (63%) |
| Depreciation, amortisation and net impairment losses | (4) | (3) | (11%) |
| Net operating income/(loss) | (84) | 1,245 | N/A |

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 22-21 change |
| Renewables power generation (GWh) Equinor share | 1,641 | 1,562 | 5% |

## Operational performance

Power generation (Equinor share) was 1,641 GWh (gigawatt hours) in the full year of 2022, compared to 1,562 GWh in the full year of 2021. The increase was mainly due to the start-up of production from the Guanzuli IIA solar plant in the third quarter of 2021.

In 2022, our equity-based installed renewable energy capacity was 0.6 GW. By 2026 Equinor expects to significantly increase installed capacity from renewable projects under development, mainly based on the current project portfolio. Towards 2030, Equinor expects to increase installed renewables capacity further to between 12 and 16 GW and to produce 35-60 TWh annually. We are progressing to deliver on the ambitions.

For 2022, additions to PP&E, intangibles and equity accounted investments amounted to USD 298 million, while gross capex' from the renewable business amounted to USD 1.3 billion. Equinor's ambition is to have more than 50% of our gross capex' allocated to renewable and low carbon solutions in 2030, and we are on track to deliver on our ambitions.

In our renewables business, we demonstrated real progress in 2022 on both project execution and on building the portfolio pipeline. In addition to laying the first foundations at the Dogger Bank offshore wind farm in the UK and completion of the Stepien solar project in Poland, we put in place further building blocks for our renewables strategy.

## Financial performance

Net operating income was negative USD 84 million in 2022 compared to positive USD 1,245 million in 2021. The decrease was mainly due to significant gains on divestments in 2021 of around USD 1.4 billion.

In 2022, Other income was impacted by a gain of USD 87 million related to the divestment of a 10% stake in the Dogger Bank C wind farm project in the UK. In 2021, Other income was impacted by gains of USD 1,386 million related to the sale of a 50% stake in the Empire Wind and Beacon Wind assets in the US.

Net income from equity accounted investments was positively impacted by income from producing assets in both periods, partially offset by losses from projects under development due to the expense of project development costs. The increased net income from equity accounted investments in 2022 was mainly due to a lower portion of project costs being expensed because the Empire Wind project in the US started capitalisation of project costs in the first quarter of 2022.

Operating expenses and selling, general and administration expenses increased due to higher business development costs, driven by higher activity levels in the USA, the UK and Asia.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 1,768 million for the year ending 31 December 2022, compared to USD 1,265 million for the year ending 31 December 2021.

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## 3.3 Marketing, midstream and processing (MMP), including new market opportunities in low carbon solutions

Secure premium market access, grow value creation through cycles and build a low carbon business

MMP works to maximise value from Equinor's equity production of oil and gas for the producing units and to capture value from Equinor's global mid- and downstream positions through marketing, trading and optimisation. The operating segment also has responsibility for marketing of the Norwegian state's natural gas and crude oil from the Norwegian continental shelf and for the development of value chains to ensure flow assurance for Equinor's upstream production and to maximise value creation.

As part of the Equinor group, Danske Commodities (DC), one of Europe's largest electricity traders, supports Equinor's strategy to build a profitable power and renewables business. A key strategic driver for the acquisition of DC was to capture value from increasingly volatile gas and power markets, contributing to take down volatility by moving energy from where there is plenty to where demand is highest by responding to price signals and utilising capacity. In addition, MMP is responsible for developing low carbon value chains for Equinor, with key focus on transforming natural gas to

clean hydrogen and developing carbon capture, usage and storage (CCUS) projects.

MMP's global trading business with its Asset-Backed Trading strategy is positioned to deliver value from absolute prices as well as from expected continued volatile energy markets.

### Overview

MMP is responsible for marketing, trading, processing and transporting crude oil and condensate, natural gas, natural gas liquids (NGL) and refined products, including the operation of a refinery, terminals and processing plants.

MMP is also responsible for power and emissions trading and for developing transportation solutions for natural gas, liquids and crude oil from Equinor assets, including pipelines, shipping, trucking and rail. In addition, MMP is responsible for Equinor's low carbon solutions. The business activities within MMP are organised in the following business clusters: Crude, Products and Liquids (CPL), Gas and Power (G&P), Operating Plants (OPL), Low Carbon Solutions (LCS), Data Improvements, Shipping and Commercial operations (DISC) and New Value Chains (NVC).

![img-1.jpeg](img-1.jpeg)

Europipe 2 - The 42-inch pipeline for dry gas runs for 650 km from Kårstø in Norway directly to Dornum in Germany.

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MMP markets, trades and transports approximately 60% of all Norwegian liquids export, including Equinor equity, the Norwegian State's direct financial interest (SDFI) equity production of crude oil and NGL, and third-party volumes. MMP is also responsible for the marketing, trading and transportation of Equinor and SDFI dry gas and LNG together with third-party gas. This represents approximately 70% of all Norwegian gas exports.

For more information, see note 7 Total revenues and other income to the Consolidated financial statements for Transactions with the Norwegian State, and chapter 5.1 Board statement on corporate governance - subsection 4. Equal treatment of shareholders and transactions with close associates, for the Norwegian State's participation and SDFI oil and gas marketing and sale.

## Key events

Russia's invasion of Ukraine had a significant impact on European energy markets in 2022, resulting in high prices and volatility for gas, power and oil. As a result of the energy crunch in Europe, MMP and E&P Norway worked with partners and government authorities to increase gas exports to Europe through increased production permits, reduced gas injection, and the optimisation of NGL to increase gas calorific value. Equinor decided to withdraw from Russia and stop trading in Russian oil and oil products from March 2022.

- On April 5, Equinor was awarded the operativity for the development of the Smeaheia CO2 storage in the North Sea. Smeaheia is important for developing the NCS into a leading region for CO2 storage in Europe.

![img-2.jpeg](img-2.jpeg)

- In May 2022 the North Sea Transition Authority (NSTA) awarded Equinor and bp, as joint licensees, two carbon storage (CS) licences in the Southern North Sea (UK).
- The LPG terminal in Port Klang in Malaysia received its first commercial LPG shipment late May 2022. Equinor is the sole user of the terminal via a 7-year lease agreement. This represents an important milestone in Equinor's LPG strategy.
- After extensive repair and improvement work, Hammerfest LNG was brought back in production with the first refrigerated liquefied natural gas (LNG) delivered to tank at Melkaya on 2 June 2022.
- On June 9, Equinor and Cheniere announced a 15-year purchase agreement of around 1.75 million tonnes of LNG per year starting from 2026. The new sales and purchase agreement (SPA) adds new volumes to Equinor's already significant gas portfolio of pipeline gas and LNG.
- Equinor joined the Marrak McKinney Møller Centre for Zero Carbon Shipping in June 2022, committing to a long-term strategic collaboration on the development of zero carbon technologies for the deep-sea maritime industry.

- In June, Equinor and SSE Thermal announced acquisition of power the company Triton Power from Energy Capital Partners (ECP). The two companies will start preparations to use hydrogen in the Saltend Power Station. The acquisition was completed on 1 September 2022.
- In July, Fluys and Equinor launched a large-scale decarbonisation solution for North West Europe. The two companies agreed to develop a major infrastructure project for transporting captured CO2 from emitters to safe storage sites in the North Sea, connecting Belgium and Norway. The project is in the feasibility stage, with an investment decision expected by 2025.
- On August 12, the UK Department for Business, Energy, and Industrial Strategy (BEIS) announced that Equinor's H2H Saltend production facility, as well as new gas-fired power stations with carbon capture at Keadby (developed with SSE Thermal) and in Teesside (with bp) had been successfully shortlisted through Phase-2 of the UK government's cluster sequencing process.
- In August, Northern Lights, a joint venture owned by Equinor, Shell and TotalEnergies, signed the world's

- first commercial agreement on cross border CO2 transportation and storage with Yara.
- On August 30, Equinor and Wintershall Dea agreed to pursue the development of a CCS value chain connecting continental European CO2 emitters to offshore storage sites on the NCS (Smeaheia). A 900-kilometre open access pipeline is planned to connect a CO2 collection hub in Northern Germany and Norway prior to 2032.
- In September Equinor announced a long-term gas sales agreement with the leader of the Polish natural gas market, PGNiG. The agreement is for 10 years with a volume of around 2.4 billion cubic metres (bcm) of gas per year to be exported through the new Baltic Pipe.
- In October, following developments in the European and Norwegian security situation, with unidentified drone observations and suspected pipeline sabotage in the Baltic Sea, our strategic project team for the European security situation was continued to strengthen security measures for Onshore plants and pipelines.

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- In January 2023 Equinor has awarded a Front-End Engineering Design (FEED) contract for H2H Saltend, a 600-megawatt low carbon hydrogen project with carbon capture in the UK, to Linde Engineering, and an operation and maintenance service contract to BOC. Linde Engineering together with BOC participated in a design competition to provide proposals for FEED with options for Engineering, Procurement and Construction (EPC) and Operation and Maintenance for the first five years.
- In January 2023 Equinor and RWE signed a memorandum of understanding (MoU) to jointly develop large-scale energy value chains, building on the partnership between Norway and Germany and the long-term relationship between Equinor and RWE. The partners aim to replace coal fired power plants with hydrogen-ready gas fired power plants in Germany, and to build production of low carbon and renewable hydrogen in Norway that will be exported through pipeline to Germany.

# Marketing and trading of gas, LNG and power

MMP is responsible for the sale of Equinor's and SDFI's dry gas and LNG. Equinor's gas marketing and trading business is conducted from Norway and from offices in Belgium, the UK, Germany and the US. Through the acquisition of Danske Commodities (DC), a trading company for power and gas, MMP also strengthened Equinor's energy trading business, as well as its investments in renewables. DC is primarily active in Europe but also operates in the US.

# MMP presence across the world

![img-3.jpeg](img-3.jpeg)

# Europe

The major export markets for natural gas produced from the NCS are the UK, Germany, France, the Netherlands and Belgium. LNG from the Snahvit field8,

combined with third-party LNG cargoes, allows Equinor to reach global gas markets. The gas is sold to counterparties through bilateral sales agreements and over the trading desk. Some of Equinor's long-term

gas contracts have price review clauses which can be triggered by the parties.

For ongoing price reviews, Equinor provides in its financial statements for probable liabilities based on Equinor's best judgement. For further information, see note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements.

Equinor is active on both the physical and exchange markets, such as the Intercontinental Exchange (ICE) and Trayport. Equinor expects to continue to optimise the value of the gas volumes through a mix of bilateral contracts and over the trading desk, via its production and transportation systems and downstream assets. MMP receives a marketing fee from E&P Norway for the Norwegian gas sold on behalf of the company.

DC is active on both the physical and exchange markets for both gas and power as a separate entity. All trading and optimisation of power in Equinor is performed by DC.

From 1 September 2022 Equinor held 50% of Triton Power in a joint venture with SSE Thermal.

# USA

Equinor Natural Gas LLC (ENG), a wholly owned subsidiary, has a gas marketing and trading organisation in Stamford, Connecticut that markets

8 Gas production from the Snahvit field was suspended after the fire at the Hammerfest LNG plant September 2020. Production resumed in early June 2022.

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natural gas to local distribution companies, industrial customers, power generators and other gas trading counterparties. ENG also markets equity production volumes from the Gulf of Mexico and the Appalachian Basin and transports some of the Appalachian production to New York City and into Canada to the greater Toronto area. In addition, ENG has capacity contracts at the Cove Point LNG re-gasification terminal.

## Marketing and trading of liquids

MMP is responsible for the sale of Equinor's and SDFI's crude oil and NGL produced on the NCS, in addition to the operation and commercial optimisation of Equinor's refineries and terminals. MMP also markets the equity volumes from the company's assets located in the US, Brazil, Canada, Angola, Nigeria, Algeria, Azerbaijan and the UK, as well as third-party volumes. The value is maximised through marketing, physical and financial trading and through the optimisation of owned and leased capacity such as refineries, processing, terminals, storages, pipelines, railcars and vessels.

The liquids marketing and trading business is conducted from Norway, the UK, Singapore, the US and Canada. The main crude oil market for Equinor is Northwest Europe.

## Manufacturing

Equinor owns and operates the Mongstad refinery in Norway, including a combined heat and power plant

(CHP). The refinery is a medium-sized refinery built in 1975, with a crude oil and condensate distillation capacity of 226,000 barrels per day. The refinery is supplied via the Mongstad Terminal DA linked to offshore fields through three crude oil pipelines, a pipeline for NGL's connecting to Kollonsens and Sture (the Vestprosess pipeline) and to Kollonsens by a gas pipeline. The CHP plant was replaced with a new heater solution in the third quarter of 2022, resulting in an estimated net emissions reduction of 250,000 tonnes of CO2 per year.

Equinor holds an ownership interest in the methanol plant at Tjeldbergodden (82%). The plant receives natural gas from fields in the Norwegian Sea through the Hultenpipe pipeline. In addition, Equinor holds an ownership interest in the air separation unit Tjeldbergodden Luftgassfabrik DA (50.9%).

The following table shows distillation/production capacity and throughput for the Mongstad refinery and for Tjeldbergodden methanol plant. Refinery margins continued to increase in 2022 due to tight markets for products and restriction imposed on the purchase of Russian products. The lower throughput for Mongstad 8, Tjeldbergodden in 2022 is mainly due to higher planned and unplanned shutdowns.

Equinor is technical service provider (TSP) for the Kårstø and Kollonsens gas processing plants in accordance with the technical service agreement between Equinor and Gassco AS. Equinor holds an ownership interest in Vestprosess (34%), which transports and processes NGL and condensate.

| Refinery | Throughput 1) |  |  | Distillation/Production capacity 2) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 |
| Mongstad | 9.9 | 11.1 | 9.7 | 9.3 | 9.3 | 9.3 |
| Tjeldbergodden | 0.6 | 0.6 | 0.9 | 1.0 | 1.0 | 1.0 |

1) Actual throughput of crude oils, condensates and other feed, measured in million tonnes. Throughput may be higher than the distillation capacity for the plants because the volumes of fuel oil etc. may not go through the crude-/condensate distillation unit.
2) Nominal crude oil and condensate distillation capacity, and methanol production capacity, measured in million tonnes.

Vestprosess is also operated by Gassco, with Equinor as TSP.

Equinor holds 30.1% interest in the Nyhamna gas processing plant operated by Gassco.

## Terminals, storage and pipelines

Equinor operates the Mongstad crude oil terminal (Equinor: 65%). The crude oil is landed at Mongstad through pipelines from the NCS and by crude tankers from the market. The Mongstad terminal has a storage capacity of 9.4 million barrels of crude oil.

Equinor operates the Sture crude oil terminal. The crude oil is landed at Sture through pipelines from the North Sea. The terminal is part of the Oseberg Transportation System (Equinor: 36.2%). The processing facilities at Sture stabilise the crude oil and recover an LPG mix (propane and butane) and naphtha.

Equinor operates the South Riding Point Terminal (SRP) on the Bahamas. The terminal has not been operational since 2019 due to hurricane damages. On 21 February 2023 Equinor entered into an agreement for the sale of the terminal to Liwathan.

Equinor UK holds an interest in the Aldbrough Gas Storage (Equinor: 33.3%) in the UK, which is operated by SSE Hornsea Ltd.

Equinor Deutschland Storage GmbH holds an interest in the Etzel Gas Lager (Equinor: 28.7%) in the north of Germany which has a total of 19 caverns and secures regular gas deliveries from the NCS.

Equinor has ownership in a large number of oil and gas pipelines in the Norwegian upstream oil and gas infrastructure system including the largest joint venture Gassled (Equinor 5%).

Equinor 2022 Integrated annual report

127 3.3 Marketing, midstream and processing (MMP), incl. new market opportunities in low carbon solutions

INTRODUCTION

CONTENTS

ABOUT EQUINOR AND OUR STRATEGY

ENTERPRISE LEVEL PERFORMANCE

REPORTING SEGMENT PERFORMANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

## Low carbon solutions

The Low Carbon Solutions (LCS) unit in MMP has responsibility for developing a profitable business based on reforming natural gas to hydrogen with carbon capture and storage (CCS) and to develop carbon management services to offer industries based on CO$_{2}$ transport and storage. Decarbonising hydrocarbons with CCS is key to reaching net-zero, and Equinor aims to combine its long experience from CCS on the NCS. Its reservoir expertise and experience from developing value chains with peers, suppliers and customers to develop large-scale, commercially-viable decarbonisation solutions. By 2030, more than 50% of Equinor's Gross capex$^{®}$ is intended to be dedicated to renewables and low carbon solutions. Below is a list of key CCS and hydrogen projects.

## Key projects

**H2BE** Equinor, together with ENGIE, is developing the H2BE project in Belgium which aims to produce hydrogen from Norwegian low-carbon natural gas and applying carbon capture and storage (CCS). The project concept will apply technology allowing for decarbonization rates above 95% and will produce hydrogen at large (GW) scale at competitive cost levels. The captured CO$_{2}$ is planned to be transported by ship or offshore pipeline for permanent and safe storage at a site in the sub-surface of the Norwegian North Sea.

**H2H Saltend** Equinor is developing a proposed 600 MW hydrogen production plant, due to be operational by 2027 and a solid of Saltend Chemicals Park in the UK, where it will help to reduce the park's emissions by up to

one third (890,000 tonnes). To achieve this, low carbon hydrogen will directly replace natural gas in several industrial facilities reducing the carbon intensity of their products, as well as being blended into natural gas at the Equinor and SSE Thermal's on-site Triton power station. H2H Saltend is the kick-starter project for the wider Zero Carbon Humber scheme which aims to make the Humber, currently the UK's most carbon intensive industrial region, net-zero by 2040.

**Northern Lights** Equinor is, together with Shell and TotalEnergies, developing infrastructure for transport and storage on the NCS of CO$_{2}$ from various onshore industries. The approved development will have an initial storage capacity of around 1.5 million tonnes of CO$_{2}$ per year, scalable to around 5 million tonnes of CO$_{2}$ per year. The Northern Lights infrastructure will enable transport of CO$_{2}$ from industrial capture sites to a terminal in Øygarden for intermediate storage before transport by pipeline for permanent storage in a reservoir 2,600 metres under the seabed. In August 2022, Northern Lights and Yara signed the world's first commercial agreement on cross border CO$_{2}$ transport and storage. As part of the agreement, Northern Lights will transport and store CO$_{2}$ captured from Yara Sluski, an ammonia and fertiliser plant in the Netherlands. The project is part of Longship, the Norwegian authorities' project for full-scale carbon capture, transport and storage in Norway, and is expected to come on stream in 2024.

**Smeaheia** Equinor was awarded by the Norwegian Ministry of Petroleum and Energy (MPE) the operatorship for the development of the CO$_{2}$ storage Smeaheia in the North Sea. Here, Equinor plans to develop enough the CO$_{2}$ storage capacity for 20 million

tonnes of CO$_{2}$ annually, which entails a sharp increase in the capacity to store CO$_{2}$ on the NCS. Smeaheia is expected to play an important role in enabling CO$_{2}$ solutions on a commercial basis to industrial customers, such as steel, cement and other heavy industries. Equinor also has ambitions to develop further storage licences in the North Sea in the coming years with the aim of building a common, pipeline-based infrastructure that can contribute to substantial cost reductions for the CCS value chains.

## Performance review

### Operational performance

**Gas and Oil Sales.** The total natural gas sales volumes were 63 bcm in 2022, increased by 2 bcm compared to total volumes for 2021. NCS equity gas volumes increased due to the recovery of Hammerfest LNG and due to efforts between EPN, MMP and authorities to increase gas export to Europe. This was achieved by increased production permits, reduced gas injection and optimization of NGL to increase gas calorific value. This was offset by a decrease in international equity gas.

The average crude, condensate and NGL sales were 2.0 mmbbl per day in 2022, slightly lower than 2021 mainly due to decrease in volumes from NCS, partially offset by increase in sales of international equity volumes.

High regularity at onshore gas processing plants and transport systems ensured gas delivery reliability and portfolio flexibility allowed MMP to transport and sell natural gas and oil where it was most needed increasing value creation.

### Natural gas sales (ex. SDFI volumes)

![img-4.jpeg](img-4.jpeg)

### Sold volumes of oil per day

![img-5.jpeg](img-5.jpeg)

Equinor 2022 integrated annual report

128 3.3 Marketing, midstream and processing (MMP), incl. new market opportunities in low carbon solutions

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

In 2022, the average invoiced natural gas sales price in Europe was USD 33.44 per mmBtu, up >100% from USD 14.60 per mmBtu in 2021. European gas prices were significantly higher compared to 2021, mainly due to high demand and tight supply and caused by reduced gas imports from Russia.

In 2022, the average invoiced natural gas sales price in North America was USD 5.89 mmBtu, up 83% from USD 3.22 mmBtu in 2021. North American gas price increase was driven by low production growth, low storage levels and strong demand mainly from power generation.

All of Equinor's gas produced on the NCS is sold by MMP and purchased from E&P Norway at the fields lifting point at a market-based internal price with deduction for the cost of bringing the gas from the field to the market and a marketing fee element. Our NCS transfer price for gas was USD 31.22 per mmBtu in 2022, an increase of 116% compared to USD 14.43 per mmBtu in 2021.

Throughput for Mongstad & Tjeldbergodden was lower in 2022 compared to 2021 mainly due to higher planned and unplanned shutdowns. MMP's refining margins were higher for Mongstad in 2022 compared to 2021. Equinor's refining reference margin was 14.5 USD/bbl in 2022, compared to 4.0 USD/bbl in 2021, an increase of >100% due to the tight markets for products and restriction imposed on the purchase of Russian products.

## Financial performance

**Net operating income** was USD 3,612 million compared to USD 1,163 million in 2021, an increase of more than 100%.

The increase is explained by stronger results from gas, LNG and power sales trading activity, high clean spark spread and high refining margin. The increase was partially offset by a negative change in derivatives used to manage risk related to bilateral gas sales contracts and from methanol production from natural gas.

Net operating income was positively impacted by an impairment reversal related to a refining asset and adjustments for unrealized market value of gas storages. This was offset by provisions, mainly for onerous contracts.

**Total revenues and other income** were USD 148,105 million in 2022, compared to USD 87,393 million in 2021, an increase of 69%.

The increase in **revenues** from 2022 to 2021 was mainly due to significant higher gas and oil sales prices in both Europe and North America, and higher gas volumes. This was partially offset by the negative effect of bilateral derivatives related to gas sales agreements and slightly lower liquid sales.

**Purchases [net of inventory]** were USD 139,916 million in 2022, compared to USD 80,873 million in 2021. The increase from 2021 to 2022 was mainly due to higher prices for both gas and liquids.

## MMP - condensed income statement under IFRS

| (in USD million) | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | Change |
| Revenues | 147,691 | 87,204 | 69% |
| Net income/(loss) from equity accounted investments | 406 | 22 | >100% |
| Other income | 9 | 168 | (95%) |
| Total revenues and other income | 148,105 | 87,393 | 69% |
| Purchases [net of inventory] | (139,916) | (80,873) | 73% |
| Operating, selling, general and administrative expenses | (4,591) | (3,753) | 22% |
| Depreciation, amortisation and net impairment losses | 14 | (1,604) | N/A |
| Net operating income/(loss) | 3,612 | 1,163 | >100% |

| Operational information | For the year ended 31 December |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | Change |
| Liquid sales volume (mmbbl) | 740.1 | 758.4 | (2%) |
| Natural gas sales Equinor (bcm) | 63.3 | 61.0 | 4% |
| Natural gas entitlement sales Equinor (bcm) | 56.1 | 54.0 | 4% |
| Power generation (GWh) Equinor share | 1,012 | 0 | N/A |
| Average invoice gas price - Europe (USD/MMBtu) | 33.44 | 14.60 | >100% |
| Average invoice gas price - North America (USD/MMBtu) | 5.89 | 3.22 | 83% |

Equinor 2022 integrated annual report

129 3.3 Marketing, midstream and processing (MMP), incl. new market opportunities in low carbon solutions

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

Operating expenses and selling, general and administrative expenses were USD 4,591 million in 2022, compared to USD 3,753 million in 2021. The increase from 2021 to 2022 was mainly due to significant higher transportation costs for liquids and higher gas and electricity prices affecting operating plants. This was partially offset by lower costs due to the sale of a refining asset. Selling, general and administrative expenses increased mainly due to increased activity within Low Carbon Solutions and trading.

**Depreciation, amortisation and net impairment** were positive USD 14 million in 2022, compared to negative USD 1,604 million in 2021. The decrease in depreciation, amortisation and net impairment losses from 2021 to 2022 was mainly caused by the impairment of refinery assets in 2021 and reversal in 2022.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 5,307 million for the year ending 31 December 2022, compared to USD 4,119 million for the year ending 31 December 2021.

![img-6.jpeg](img-6.jpeg)

Processing plant at Kárate,

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## 3.4 Other group

The Other reporting segment includes activities in Projects, Drilling and Procurement (PDP), the Technology, Digital & Innovation (TDI) segment and corporate staffs and support functions.

### Overview

#### Technology, Digital & Innovation (TDI)

Intending to strengthen the development of technologies, digital solutions and innovation, Equinor has gathered the activities into a business area, Technology, Digital & Innovation (TDI).

TDI brings together research, technology development, specialist advisory services, digitisation, IT, improvement, innovation, ventures and future business to one technology powerhouse. TDI is accountable for safe and efficient development and operation of their assets, and for providing expertise, projects and products across the company.

#### Corporate staff and support functions

Corporate staff and support functions comprise the non-operating activities supporting Equinor, and include head office and central functions that provide business support such as finance and control, corporate communication, safety, security and sustainability, corporate audit, legal and compliance and people and organisation.

#### Projects, Drilling & Procurement (PDP)

Projects, Drilling & Procurement (PDP) is responsible for oil and gas field development and well delivery, development of wind power, CCS and hydrogen projects, and procurement in Equinor. PDP aims to deliver safe, secure and efficient project development, including well construction, founded on world-class project execution and technology excellence. PDP utilises innovative technologies, digital solutions and carbon-efficient concepts to shape a competitive project portfolio at the forefront of the energy industry transformation. Sustainable value is being created together with suppliers through a simplified and standardised fit-for-purpose approach.

**Project development** is responsible for planning, developing and executing major oil and gas field development, brownfield and field decommissioning projects, and development and execution of wind power, CCS and hydrogen projects, where Equinor is the operator.

**Drilling and well** is responsible for designing wells and delivering drilling and well operations onshore and offshore globally (except for US onshore).

**Procurement and supplier** relations is responsible for our global procurement activities and the management of supplier relations with our extensive portfolio of suppliers.

### Performance review

In 2022 the Other reporting segment recorded a net operating loss of USD 178 million compared to a net operation loss of USD 234 million in 2021. The improvement was mainly due to reduced insurance costs during the year relating to the fire at Melkøya LNG in 2020.

Since the implementation of IFRS 16 Leases in 2019, all leases were presented within the Other segment and lease costs have been allocated to the operating segments based on underlying lease payments with a corresponding credit in the Other segment. With effect from 2022, lease contracts are accounted for in accordance with IFRS 16 in all segments. This change does not affect Equinor's consolidated financial statements. Comparative numbers in the segments have been restated.

**Balance sheet information:** The sum of equity accounted investments and non-current segment assets was USD 1,096 million for the year ending 31 December 2022, compared to USD 1,077 million for the year ending 31 December 2021.

![img-7.jpeg](img-7.jpeg)

Digital twin in use in operations of the Mariner field, North Sea, UK.

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PERFORMANCE

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FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# 4 Financial statements

![img-0.jpeg](img-0.jpeg)

Please note of the concrete
platform page at Trail A.
North Sick, Norway.

| Consolidated financial statements | 132 |
| --- | --- |
| Consolidated statement of income | 133 |
| Consolidated statement of comprehensive income | 134 |
| Consolidated balance sheet | 135 |
| Consolidated statement of changes in equity | 136 |
| Consolidated statement of cash flows | 137 |
| Notes to the Consolidated financial statements | 138 |
| Parent company financial statements | 205 |
| Statement of income Equinor ASA | 206 |
| Statement of comprehensive income Equinor ASA | 207 |
| Balance sheet Equinor ASA | 208 |
| Statement of cash flows Equinor ASA | 209 |
| Notes to the Financial statements Equinor ASA | 210 |

132 Consolidated financial statements

INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

## Consolidated financial statements

| Consolidated statement of income | 133 | Notes to the Consolidated financial statements | 138 | Note 15. Joint arrangements and associates | 176 |
| --- | --- | --- | --- | --- | --- |
| Consolidated statement of comprehensive income | 134 | Note 1. Organisation | 138 | Note 16. Financial investments and financial receivables | 177 |
| Consolidated balance sheet | 135 | Note 2. Accounting policies | 138 | Note 17. Inventories | 178 |
| Consolidated statement of changes in equity | 136 | Note 3. Consequences of initiatives to limit climate changes | 140 | Note 18. Trade and other receivables | 179 |
| Consolidated statement of cash flows | 137 | Note 4. Financial risk and capital management | 144 | Note 19. Cash and cash equivalents | 179 |
|  |  | Note 5. Segments | 149 | Note 20. Shareholders' equity and dividends | 180 |
|  |  | Note 6. Acquisitions and disposals | 153 | Note 21. Finance debt | 182 |
|  |  | Note 7. Total revenues and other income | 156 | Note 22. Pensions | 186 |
|  |  | Note 8. Salaries and personnel expenses | 158 | Note 23. Provisions and other liabilities | 190 |
|  |  | Note 9. Auditor's remuneration and Research and development expenditures | 159 | Note 24. Trade, other payables and provisions | 192 |
|  |  | Note 10. Financial items | 159 | Note 25. Leases | 193 |
|  |  | Note 11. Income taxes | 160 | Note 26. Other commitments, contingent liabilities and contingent assets | 195 |
|  |  | Note 12. Property, plant and equipment | 164 | Note 27. Related parties | 198 |
|  |  | Note 13. Intangible assets | 168 | Note 28. Financial instruments and fair value measurement | 199 |
|  |  | Note 14. Impairments | 171 | Note 29. Subsequent events | 204 |

Equinor 2022 Integrated annual report

133 Consolidated financial statements

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## CONSOLIDATED STATEMENT OF INCOME

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Revenues | 7 | 149,004 | 88,744 | 45,753 |
| Net income/(loss) from equity accounted investments | 15 | 620 | 259 | 53 |
| Other income | 6 | 1,182 | 1,921 | 12 |
| Total revenues and other income | 7 | 150,806 | 90,924 | 45,818 |
| Purchases [net of inventory variation] |  | (53,806) | (35,160) | (20,986) |
| Operating expenses |  | (9,608) | (8,598) | (8,831) |
| Selling, general and administrative expenses |  | (986) | (780) | (706) |
| Depreciation, amortisation and net impairment losses | 12,13 | (6,391) | (11,719) | (15,235) |
| Exploration expenses | 13 | (1,205) | (1,004) | (3,483) |
| Total operating expenses | 9 | (71,995) | (57,261) | (49,241) |
| Net operating income/(loss) | 5 | 78,811 | 33,663 | (3,423) |

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Interest expenses and other finance expenses |  | (1,379) | (1,223) | (1,392) |
| Other financial items |  | 1,172 | (857) | 556 |
| Net financial items | 10 | (207) | (2,080) | (836) |
| Income/(loss) before tax |  | 78,604 | 31,583 | (4,259) |
| Income tax | 11 | (49,861) | (23,007) | (1,237) |
| Net income/(loss) |  | 28,744 | 8,576 | (5,496) |
| Attributable to equity holders of the company |  | 28,746 | 8,563 | (5,510) |
| Attributable to non-controlling interests |  | (3) | 14 | 14 |
| Basic earnings per share (in USD) |  | 9.06 | 2.64 | (1.69) |
| Diluted earnings per share (in USD) |  | 9.03 | 2.63 | (1.69) |
| Weighted average number of ordinary shares outstanding (in millions) |  | 3,174 | 3,245 | 3,269 |
| Weighted average number of ordinary shares outstanding, diluted (in millions) |  | 3,183 | 3,254 | 3,277 |

Equinor 2022 Integrated annual report

134 Consolidated financial statements

INTRODUCTION

CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Net income/(loss) |  | 28,744 | 8,576 | (5,496) |
| Actuarial gains/(losses) on defined benefit pension plans |  | 461 | 147 | (106) |
| Income tax effect on income and expenses recognised in OCI 1) |  | (105) | (35) | 19 |
| Items that will not be reclassified to the Consolidated statement of income | 22 | 356 | 111 | (87) |
| Foreign currency translation effects |  | (3,609) | (1,052) | 1,064 |
| Share of OCI from equity accounted investments |  | 424 | 0 | 0 |
| Items that may subsequently be reclassified to the Consolidated statement of income |  | (3,186) | (1,052) | 1,064 |
| Other comprehensive income/(loss) |  | (2,829) | (940) | 977 |
| Total comprehensive income/(loss) |  | 25,914 | 7,636 | (4,519) |
| Attributable to the equity holders of the company |  | 25,917 | 7,622 | (4,533) |
| Attributable to non-controlling interests |  | (3) | 14 | 14 |

1) Other Comprehensive Income (OCI).

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CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# CONSOLIDATED BALANCE SHEET

| (in USD million) | Note | At 31 December |  |
| --- | --- | --- | --- |
|  |  | 2022 | 2021 |
| ASSETS |  |  |  |
| Property, plant and equipment | 12 | 56,498 | 62,075 |
| Intangible assets | 13 | 5,158 | 6,452 |
| Equity accounted investments | 15 | 2,758 | 2,686 |
| Deferred tax assets | 11 | 8,732 | 6,259 |
| Pension assets | 22 | 1,219 | 1,449 |
| Derivative financial instruments | 28 | 691 | 1,265 |
| Financial investments | 16 | 2,733 | 3,346 |
| Prepayments and financial receivables | 16 | 2,063 | 1,087 |
| Total non-current assets |  | 79,851 | 84,618 |
| Inventories | 17 | 5,205 | 3,395 |
| Trade and other receivables 1) | 18 | 22,452 | 17,927 |
| Derivative financial instruments | 28 | 4,039 | 5,131 |
| Financial investments | 16 | 29,876 | 21,246 |
| Cash and cash equivalents 2) | 19 | 15,579 | 14,126 |
| Total current assets |  | 77,152 | 61,826 |
| Assets classified as held for sale | 6 | 1,018 | 676 |
| Total assets |  | 158,021 | 147,120 |

| (in USD million) | Note | At 31 December |  |
| --- | --- | --- | --- |
|  |  | 2022 | 2021 |
| EQUITY AND LIABILITIES |  |  |  |
| Shareholders' equity |  | 53,988 | 39,010 |
| Non-controlling interests |  | 1 | 14 |
| Total equity | 20 | 53,989 | 39,024 |
| Finance debt | 21 | 24,141 | 27,404 |
| Lease liabilities | 25 | 2,409 | 2,449 |
| Deferred tax liabilities | 11 | 11,996 | 14,037 |
| Pension liabilities | 22 | 3,671 | 4,403 |
| Provisions and other liabilities | 23 | 15,633 | 19,899 |
| Derivative financial instruments | 28 | 2,376 | 767 |
| Total non-current liabilities |  | 60,226 | 68,959 |
| Trade, other payables and provisions | 24 | 13,352 | 14,310 |
| Current tax payable |  | 17,655 | 13,119 |
| Finance debt | 21 | 4,359 | 5,273 |
| Lease liabilities | 25 | 1,258 | 1,113 |
| Dividends payable | 20 | 2,808 | 582 |
| Derivative financial instruments | 28 | 4,106 | 4,609 |
| Total current liabilities |  | 43,539 | 39,005 |
| Liabilities directly associated with the assets classified as held for sale | 6 | 268 | 132 |
| Total liabilities |  | 104,032 | 108,096 |
| Total equity and liabilities |  | 158,021 | 147,120 |

1) Of which Trade receivables of USD 17,334 million in 2022 and USD 15,237 million in 2021.

2) Includes collateral deposits of USD 6,128 million for 2022 related to certain requirements set out by exchanges where Equinor is participating. The corresponding figure for 2021 is USD 2,069 million.

Equinor 2022 Integrated annual report

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INTRODUCTION

CONTENTS

ABOUT EQUINOOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

| (in USD million) | Share capital | Additional paid-in capital | Retained earnings | Foreign currency translation reserve | OCI from equity accounted investments 1) | Shareholders' equity | Non-controlling interests | Total equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| At 1 January 2020 | 1,185 | 7,732 | 37,481 | (5,258) | 0 | 41,139 | 20 | 41,139 |
| Net income/(loss) |  |  | (5,510) |  |  | (5,510) | 14 | (5,496) |
| Other comprehensive income/(loss) |  |  | (87) | 1,064 |  | 977 |  | 977 |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | (4,519) |
| Dividends |  |  | (1,833) |  |  | (1,833) |  | (1,833) |
| Share buy-back | (21) | (869) |  |  |  | (890) |  | (890) |
| Other equity transactions |  | (11) |  |  |  | (11) | (15) | (25) |
| At 31 December 2020 | 1,164 | 6,852 | 30,050 | (4,194) | 0 | 33,873 | 19 | 33,892 |
| Net income/(loss) |  |  | 8,563 |  |  | 8,563 | 14 | 8,576 |
| Other comprehensive income/(loss) |  |  | 111 | (1,052) |  | (940) |  | (940) |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | 7,636 |
| Dividends |  |  | (2,041) |  |  | (2,041) |  | (2,041) |
| Share buy-back |  | (429) |  |  |  | (429) |  | (429) |
| Other equity transactions |  | (15) |  |  |  | (15) | (18) | (33) |
| At 31 December 2021 | 1,164 | 6,408 | 36,683 | (5,245) | 0 | 39,010 | 14 | 39,024 |
| Net income/(loss) |  |  | 28,746 |  |  | 28,746 | (3) | 28,744 |
| Other comprehensive income/(loss) |  |  | 356 | (3,609) | 424 | (2,829) |  | (2,829) |
| Total comprehensive income/(loss) |  |  |  |  |  |  |  | 25,914 |
| Dividends |  |  | (7,549) |  |  | (7,549) |  | (7,549) |
| Share buy-back | (22) | (3,358) |  |  |  | (3,380) |  | (3,380) |
| Other equity transactions |  | (10) |  |  |  | (10) | (10) | (20) |
| At 31 December 2022 | 1,142 | 3,041 | 58,236 | (8,855) | 424 | 53,988 | 1 | 53,989 |

1) OCI items from equity accounted investments that may subsequently be reclassified to the Consolidated statement of income, are presented as part of OCI from equity accounted investments. OCI items that will not be reclassified to the Consolidated statements of income will be included in retained earnings.

Please refer to note 20 Shareholders' equity and dividends for more details.

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CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# CONSOLIDATED STATEMENT OF CASH FLOWS

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Income/(loss) before tax |  | 78,604 | 31,583 | (4,259) |
| Depreciation, amortisation and net impairment | 12, 13 | 6,391 | 11,719 | 15,235 |
| Exploration expenditures written off | 13 | 342 | 171 | 2,506 |
| (Gains)/losses on foreign currency transactions and balances |  | (2,088) | (47) | 646 |
| (Gains)/losses on sale of assets and businesses | 6 | (823) | (1,519) | 18 |
| (Increase)/decrease in other items related to operating activities 1) |  | 468 | 106 | 918 |
| (Increase)/decrease in net derivative financial instruments | 28 | 1,062 | 539 | (451) |
| Interest received |  | 399 | 96 | 162 |
| Interest paid |  | (747) | (698) | (730) |
| Cash flows provided by operating activities before taxes paid and working capital items |  | 83,608 | 41,950 | 14,045 |
| Taxes paid |  | (43,856) | (8,588) | (3,134) |
| (Increase)/decrease in working capital |  | (4,616) | (4,546) | (524) |
| Cash flows provided by operating activities |  | 35,136 | 28,816 | 10,386 |
| Capital expenditures and investments | 6 | (8,611) | (8,151) | (8,476) |
| (Increase)/decrease in financial investments |  | (10,089) | (9,951) | (3,703) |
| (Increase)/decrease in derivative financial instruments |  | 1,894 | (1) | (620) |
| (Increase)/decrease in other interest-bearing items |  | (23) | 28 | 202 |
| Proceeds from sale of assets and businesses | 6 | 966 | 1,864 | 505 |
| Cash flows provided by/(used in) investing activities |  | (15,863) | (16,211) | (12,092) |

| (in USD million) | Note | Full year |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| New finance debt | 21 | 0 | 0 | 8,347 |
| Repayment of finance debt | 21 | (250) | (2,675) | (2,055) |
| Repayment of lease liabilities | 25 | (1,366) | (1,238) | (1,277) |
| Dividends paid | 20 | (5,380) | (1,797) | (2,330) |
| Share buy-back | 20 | (3,315) | (321) | (1,059) |
| Net current finance debt and other financing activities |  | (5,102) | 1,195 | 1,365 |
| Cash flows provided by/(used in) financing activities | 21 | (15,414) | (4,836) | 2,991 |
| Net increase/(decrease) in cash and cash equivalents |  | 3,860 | 7,768 | 1,285 |
| Foreign currency translation effects |  | (2,268) | (538) | 294 |
| Cash and cash equivalents at the beginning of the period (net of overdraft) | 19 | 13,987 | 6,757 | 5,177 |
| Cash and cash equivalents at the end of the period (net of overdraft) 2) | 19 | 15,579 | 13,987 | 6,757 |

1) The line item mainly consists of provisions, unrealised gains and losses and items of income or expense for which the cash effects are included in increase/(decrease) in working capital within operating cash flow and investing cash flows. The line item includes a fair value loss related to inventory of USD 672 million at 31 December 2022. Amount for 2021 includes MUSD (822) redetermination settlement for the Agbam field.

2) At 31 December 2022 cash and cash equivalents net overdraft was zero. At 31 December 2021 cash and cash equivalents included a net overdraft of USD 140 million and at 31 December 2020 net overdraft were zero.

Interest paid in cash flows provided by operating activities excludes capitalised interest of USD 382 million, USD 334 million, and USD 308 million for the years ending 31 December 2022, 2021 and 2020, respectively. Capitalised interest is included in Capital expenditures and investments in cash flows used in investing activities. Total interest paid amounts to USD 1,129 million, USD 1,032 million, and USD 1,038 million for the years 2022, 2021 and 2020, respectively.

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CONTENTS

ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

### Note 1. Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway.

Equinor's objective is to develop, produce and market various forms of energy and derived products and services, as well as other business. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy AS, a 100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the Norwegian continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2022 were approved for issuance by the board of directors on 14 March 2023 and is subject to approval by the annual general meeting on 10 May 2023.

### Note 2. Accounting 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 (IFRS) as adopted by the European Union (EU) and with IFRSs as issued by the International Accounting Standards Board (IASB), interpretations issued by IASB and the additional requirements of the Norwegian Accounting Act, effective on 31 December 2022.

#### Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair value measurement is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The material accounting policies described in these Consolidated financial statements have been applied consistently to all periods presented, except as otherwise noted in the disclosure related to the impact of policy changes following the adoption of new accounting standards and voluntary changes in 2022.

Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals and totals in some of the tables in the notes may not equal the sum of the amounts shown in the primary financial statements due to rounding.

Operational expenses in the Consolidated statement of income are presented as a combination of function and nature in conformity with industry practice. Purchases (net of inventory variation) and Depreciation, amortisation and net impairment losses are presented on separate lines based on their nature, while Operating expenses and Selling, general and administrative expenses as well as Exploration expenses are presented on a functional basis. Significant expenses such as salaries, pensions, etc. are presented by their nature in the notes to the Consolidated financial statements.

#### Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries as well as Equinor's interests in jointly controlled and equity accounted investments. All intercompany balances and transactions, including unrealised profits and losses arising from Equinor's internal transactions, have been eliminated.

The Consolidated financial statements include all entities controlled by Equinor ASA. Entities are determined to be controlled by Equinor when Equinor has power over the entity, ability to use that power to affect the entity's returns, and exposure to, or rights to, variable returns from its involvement with the entity. The financial statements of the subsidiaries are included in the Consolidated financial statements from the date control is achieved until the date control ceases.

Non-controlling interests are presented separately within equity in the Consolidated balance sheet.

#### Foreign currency translation

In preparing the financial statements of the individual entities in Equinor, transactions in currencies other than the functional currency are translated at the foreign exchange rate at the dates of the transactions. 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 Consolidated statement of income as foreign exchange gains or losses within Net financial items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as part of the change in the underlying estimate and included within the relevant operating expense or income tax line-items depending on the nature of the provision. Non-monetary assets measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transactions.

When preparing the Consolidated financial statements, the assets and liabilities of entities with functional currencies other than the Group's presentation currency 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 differences

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CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

arising on translation from functional currency to
USD are recognised separately in the Consolidated
statement of comprehensive income within Other
comprehensive income (OCI). The cumulative amount
of such translation differences relating to an entity is
reclassified to the Consolidated statement of income
and reflected as a part of the gain or loss on disposal of
that entity.

Loans from Equinor ASA to subsidiaries and equity
accounted investments with other functional currencies
than the parent company, and for which settlement
is neither planned nor likely in the foreseeable
future, are considered part of the parent company's
net investment in the subsidiary. Foreign exchange
differences arising on such loans are recognised in OCI
in the Consolidated financial statements.

# Statement of cash flows

In the statement of cash flows, operating activities are
presented using the indirect method, where income/
(loss) before tax is adjusted for changes in inventories
and operating receivables and payables, the effects
of non cash items such as depreciations, amortisations
and impairments, provisions, unrealised gains and
losses and undistributed profits from associates, and
items of income or expense for which the cash effects
are investing or financing cash flows. Increase/decrease
in financial investments, increase/decrease in derivative
financial instruments, and increase/decrease in other
interest-bearing items are all presented net as part
of investing activities, either because the transactions
are financial investments and turnover is quick, the
amounts are large, and the maturities are short, or due
to materiality.

# Accounting judgement and key sources of
estimation uncertainty

The preparation of the Consolidated financial
statements requires management to make
accounting judgements, estimates and assumptions
affecting reported amounts of assets, liabilities,
income and expenses.

The main areas where Equinor has made significant
judgements when applying the accounting policies
and that have the most material effect on the
amounts recognised in the Consolidated financial
statements have been described in the following
notes:
6 - Acquisitions and disposals
7 - Total revenues and other income
25 - Leases

Estimates used in the preparation of these
Consolidated financial statements are prepared
based on customised models, while the assumptions
on which the estimates are based rely on historical
experience, external sources of information and
various other factors that management assesses
to be reasonable under the current conditions and
circumstances. These estimates and assumptions
form the basis of making the judgements about
carrying values of assets and liabilities when these
are not readily apparent from other sources.
Actual results may differ from these estimates. The
estimates and underlying assumptions are reviewed

on an on-going basis considering the current and
expected future set of conditions.

Equinor is exposed to several underlying economic
factors affecting the overall results, such as
commodity prices, foreign currency exchange rates,
market risk premiums and interest rates as well as
financial instruments with fair values derived from
changes in these factors. The effects of the initiatives
to limit climate changes and the potential impact of
the energy transition are relevant to several of these
economic assumptions. In addition, Equinor's results
are influenced by the level of production, which in
the short term may be influenced by, for instance,
maintenance programmes. In the long-term, the
results are impacted by the success of exploration,
field developments and operating activities.

The most important matters in understanding the key
sources of estimation uncertainty are described in
each of the following notes:
3 - Consequences of initiatives to limit climate
changes
11 - Income taxes
12 - Property, plant and equipment
13 - Intangible assets
14 - Impairments
23 - Provisions and other liabilities
26 - Other commitments, contingent liabilities and
contingent assets

# Changes in accounting policies in the current
period
Amendments to IAS 1 and IFRS practice statement
2: Replacing Significant accounting policies with
Material accounting policies

IASB has issued amendments to IAS 1 Presentation of
financial statements and IFRS Practice Statement 2
Making Materiality Judgements. These amendments
are intended to help entities apply materiality
judgements to accounting policy disclosures and
provide additional guidance and illustrative examples.
The amendments are effective for annual periods
beginning on or after 1 January 2023. Earlier
application is permitted, and Equinor has applied the
amendments with effect from these Consolidated
financial statements.

Accounting policy information should be considered
material if its disclosure can reasonably be expected
to influence user decisions and therefore is needed to
understand other information provided about material
transactions, other events, or conditions in the financial
statements. IASB has acknowledged that standardised
information, or information that only duplicates or
summarises the requirements of the IFRS -standards,
is generally less useful than entity-specific accounting
policy information. Even though such information could
be material in specific circumstances, Equinor has
focused the accounting policy disclosures on Equinor-
specific policy choices, disclosing only those accounting
policies that are considered necessary to understand
other material information in the Consolidated financial
statements of Equinor.

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### Other standards, amendments to standards and interpretations of standards, effective as of 1 January 2022

Other amendments to standards or interpretations of standards effective as of 1 January 2022 and adopted by Equinor, were not material to Equinor's Consolidated financial statements upon adoption.

Other standards, amendments to standards, and interpretations of standards, issued but not yet effective, are either not expected to materially impact, or are not expected to be relevant to Equinor's Consolidated financial statements upon adoption.

### Note 3. Consequences of initiatives to limit climate changes

#### Accounting policies - cost of CO2 quotas

Purchased CO2 quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses as incurred in line with emissions. Accruals for CO2 quotas required to cover emissions to date are valued at market price and reflected as a current liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas are acquired in order to cover own emissions and may be kept to cover subsequent years' emissions. Quotas purchased and held for trading purposes are carried in the balance sheet at fair value, and the changes in fair value are reflected in the Consolidated statement of income on the line-item Other income.

Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought, paid and expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the balance sheet.

#### Equinor's strategy and ambitions

Equinor's ambition is to continue supplying society with energy with lower emissions over time, to be a leading company in the energy transition and becoming a net-zero company by 2050, including emissions from

production through to final energy consumption. Equinor's strategy is to create value as a leader in the energy transition by pursuing high-value growth in renewables and new market opportunities in low carbon solutions at the same time as we optimise our oil and gas portfolio. This strategy covers three strategically important and interconnected areas:

- Oil and gas. Equinor's main focus is optimising our resources, cutting emissions in our operations and identifying new procedures that enable us to continue supplying energy that the world needs with a low footprint.
- Renewables. There is an apparent global demand for more renewable energy, and Equinor's investments in offshore wind and solar are growing exponentially to meet this demand.
- Low carbon solutions. Equinor will continue its investments in new technologies and value chains for producing lower emissions by replacing the use of carbon when generating new energy or capturing and removing the greenhouse gases before they reach the atmosphere. Even though carbon capture and storage (CCS) has existed as a technology for many decades, it takes time to develop the value chains and carbon capture and storage has yet to be implemented as a revenue-generating service to the market on a full scale.

#### Risks arising from climate change and the transition to a lower carbon economy

Policy, legal, regulatory, market and technology developments related to the issue of climate change, can affect our business plans and financial

performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery and outcomes associated with Equinor's strategy. Equinor's long-term plans have to consider how the global energy markets may develop in the long term. Potential scenarios of future changes in demand for our products (oil, gas and power in key markets) are analysed, including World Energy Outlook 2022 (WEO) scenarios that illustrate the wide range of possible demand for different energy sources, including fossil fuels, nuclear and renewables. Commodity price sensitivities are presented in a table below and in note 14 Impairments.

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness of the company's business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates to the exposure of our assets to climate-related perils in different warming scenarios. Equinor's climate roadmap and all of our climate-related ambitions are a response to these challenges and risks related to climate change.

- Stricter climate laws, regulations and policies as well as adverse litigation outcomes could adversely impact Equinor's financial results and outlook, including the value of its assets. This might be directly through regulatory changes towards energy systems free of unabated fossil fuels, changes in taxation, increased costs, access to opportunities, or indirectly through changes in consumer behaviour or technology developments.

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CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

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REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

- Changing demand for renewable energy and low-carbon technologies, and innovation and technology changes supporting their cost-competitive development, represent both threats and opportunities for Equinor. We assess and manage climate-related risks related to technology development and implementation across our portfolio, as well as recognising risks related to competing or emerging technologies elsewhere. Examples of relevant technologies within our portfolio include carbon capture and storage (CCS), blue/green hydrogen, battery technology, solar and wind renewable energy, nuclear fusion, low CO2 intensity solutions, improvements in methane emissions and application of renewables in oil and gas production.
- Market development and our ability to reduce costs and capitalize on technology improvements are important but unpredictable risk factors. Multiple factors in the energy transition contribute to uncertainty in future energy price assumptions, and changes in investor and societal sentiment can affect our access to capital markets, attractiveness for investors, and potentially restrict access to finance or increase financing costs.
- Strong competition for assets, changing levels of policy support, and different commercial/contractual models may lead to diminishing returns within the renewable and low carbon industries and hinder Equinor ambitions. These investments may be exposed to interest rate risk and inflation risk.
- Changes in physical climate parameters could impact Equinor through increased costs or incidents affecting Equinor's operations. Examples of acute physical parameters that could impact Equinor's facility design and operations include increasing frequency and severity of extreme weather events such as extreme windspeeds, wave-heights or flooding. Examples of chronic physical climate parameters include limitations in freshwater availability, a pattern with generally increased wind speeds and as most of Equinor's physical assets are located offshore, a key potential chronic physical climate impact is expected to be rising sea level accompanied with increased wave heights. As we continue to build our renewable portfolio, unexpected changes in meteorological parameters, such as average wind speed or changes in wind patterns and cloud cover that affect renewable energy production will also be important factors to consider. Physical risk factors are mitigated through technical and engineering functions in design, operations and maintenance, with due consideration of how the external physical environment may be changing. However, there is uncertainty regarding the magnitude of impact and time horizon for the occurrence of physical impacts of climate change, which leads to uncertainty regarding the potential impact for Equinor.

# Impact on Equinor's financial statements

# CO2-cost and EU ETS carbon credits

Our oil & gas operations in Europe are part of the EU Emission Trading Scheme (EU ETS). Equinor buys EU ETS allowances (quotas or carbon credits) for the emissions related to our oil & gas production and processing. Currently we receive a share of free quotas according to the EU ETS regulation. The share of free quotas is expected to be significantly reduced in the future.

Total expensed CO2 cost related to emissions and purchase of CO2 quotas in Equinor related to activities resulting in GHG emissions (Equinor's share of the operating licences in addition to our land-based facilities) amounts to USD 510 million in 2022, USD 428 million in 2021, and USD 268 million in 2020. A large portion of the cost of CO2 in Equinor is related to the purchase of EU ETS quotas. The table below shows an analysis of number of quotas utilised by Equinor's operated licences and land-based facilities subject to the requirements under EU ETS.

| Number of EU ETS quotas | 2022 | 2021 |
| --- | --- | --- |
| Opening balance at 1 January | 11,026,286 | 11,027,242 |
| Allocated free quotas | 3,697,089 | 3,560,286 |
| Purchased quotas on the ETS market | 5,985,000 | 7,605,265 |
| Sold quotas on the ETS market | 0 | (135,177) |
| Settled quotas (offset against emissions) | (9,925,999) | (11,031,330) |
| Closing balance at 31 December | 10,782,376 | 11,026,286 |

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ADDITIONAL INFORMATION

# Investments in renewables

The energy transition creates many new business opportunities, primarily related to further development of Equivor's renewables business and within CCS. Driven by the energy transition and an increasing demand for electricity from renewable energy sources, Equivor continues to build its renewable business. We focus on offshore wind and also explore opportunities within onshore renewables and integrated power market solutions. At present, Equivor's renewable portfolio spans multiple continents and technologies - onshore and offshore - and different ownership structures:

- In operation: Mainly offshore wind in UK and Germany and solar farms in Brazil and Argentina
- In construction: The most significant projects are the Dogger Bank projects in UK (SSE operated) and Hywind Tampen in Norway in addition to construction of solar plants in Poland
- Additional capacity has secured offtake, mainly offshore wind projects in the US and Poland
- Accessed pipeline capacity (currently without offtake). This includes offshore wind in the US and South Korea and solar and onshore wind projects in Brazil and Poland
- Equivor also holds a 13.1% shareholding in Scatec ASA, a leading renewable power producer, delivering affordable and clean energy worldwide

Equivor's investments in renewables and low carbon solutions projects are included as Additions to PP&E, intangibles and equity accounted investments in the REN-segment in note 5. Segments and amounts to USD 298 million in 2022 and USD 457 million in 2021. Equivor's ambition is to become a global offshore wind major and an industry leader in floating offshore wind, drawing on our extensive offshore experience to drive

the industry forward. In addition, Equivor explores opportunities within onshore renewables.

# Investments in CCS

Through our activities within CCS, we are building capabilities and a competitive position for future business opportunities and a new revenue stream related to disposal of CO2 from customers such as from waste incineration and cement production and would also be basis for solutions for decarbonised hydrogen as an energy carrier which would also be a flexible solution to backup intermittent renewables in Europe. Equivor is making significant steps to industrialise CCS and we are already involved in the Northern Lights project in Norway providing CO2 transport and storage solutions (in partnership with Shell and TotalEnergies). It represents the start of commercial CCS in Europe and is on track to demonstrate that CCS is a valid decarbonisation solution for important industry sectors. Equivor has during 2022 contributed with USD 36 million to the company as capital increases (USD 21 million in 2021).

# Research and development activities (R&D)

In addition to the before-mentioned significant financial effects, Equivor is also involved in several activities within R&D. Several of these activities are related to optimising our oil and gas activities and cutting emissions from our activities as well as developing new business opportunities within renewables or low carbon solutions. Financial effects from Equivor's total R&D activities can be located in note 9. Auditor's remuneration and Research and development expenditures (expensed R&D) and in note 12. Property, Plant & Equipment (capitalised R&D).

# Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition are relevant to some of the economic assumptions in our estimations of future cash flows. The results of the development of such initiatives, and the degree to which Equivor's operations will be affected by them, are sources of uncertainty. Estimating global energy demand and commodity prices towards 2050 is a challenging task, as this comprises assessing the future development in supply and demand, technology change, taxation, tax on emissions, production limits and other important factors. The assumptions may change over time, which could materialise in different outcomes from the current projected scenarios. This could result in significant changes to accounting estimates, such as economic useful life (affects depreciation period and timing of asset retirement obligations), value-in-use calculations (affects impairment assessments) and measurement of deferred tax assets.

# Commodity prices

Equivor's commodity price assumptions applied in value-in-use impairment testing, are set in accordance with requirements in IFRS and based on management's best estimate of the development of relevant current circumstances and the likely future development of such circumstances. This price-set is currently not equal to a price-set required to achieve the goals in the Net Zero Emissions (NZE) by 2050 Scenario, nor a price-set in accordance with the Announced Pledges Scenario as defined by the International Energy Agency (IEA). A future change in the trajectory of how the world acts with regards to implementing actions in accordance with the goals in the Paris agreement could, depending on the detailed characteristics of such a trajectory,

have a negative impact on the valuation of Equivor's property, plant and equipment in total. A calculation of a possible effect of using the assumed commodity prices and CO2 prices in a 1.5°C compatible NZE by 2050 Scenario as estimated by IEA could result in an impairment of upstream production assets and intangible assets around USD 4 billion before tax, see the sensitivity table below.

Similarly, we have calculated the possible effect of using prices according to the Announced Pledges Scenario, a scenario which is based on all of the climate-related commitments announced by governments around the Globe. Using this scenario, the world is expected to reach a 1.8°C increase in the year 2000, and this could result in an impairment of less than USD 0.5 billion before tax using the same simplified model, see the sensitivity table below.

These illustrative impairment sensitivity calculations are based on a simplified model and limitations described in note 14. Impairments. However, when preparing these illustrative scenario sensitivities, we have linearly interpolated between current prices and the price set disclosed in the table below for both the NZE by 2050 scenario and the Announced pledges scenario. Applying this simplified approach, the illustrative potential impairments are significantly lower than the amount disclosed in note 14. Impairments where an immediate 30% reduction in commodity prices has been applied, also considering a somewhat declining production profile, concentrated before the year 2030 for our producing and sanctioned development projects and the effects of discounting.

Equivor 2022 Integrated annual report

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INTRODUCTION

CONTENTS

ABOUT EQUINOR
AND OUR STRATEGY

ENTERPRISE LEVEL
PERFORMANCE

REPORTING SEGMENT
PERFORMANCE

FINANCIAL
STATEMENTS

ADDITIONAL
INFORMATION

# Cost of CO2

The EU ETS price has increased significantly from 25 EUR/tonne in 2020. The average cost of EU ETS allowances was 81 EUR/tonne in 2022 (54 EUR/tonne in 2021). The price is expected to remain high, in the region of 80 EUR/tonne for the next couple of years. Then the price is expected to be 105 EUR/tonne in 2040 and thereafter increasing to 130 EUR/tonne in 2050. As such, Equinor expects greenhouse gas emission costs to increase from current levels and to have a wider geographical range than today, and a global tax on CO2 emissions will have a negative impact on the valuation of Equinor's oil and gas assets. Currently, Equinor pays CO2 fees in Norway, the UK, Germany and Nigeria. Norway's Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO2 tax (the total of EU ETS + Norwegian CO2 tax) in Norway to 2000 NOK/tonne in 2030 is used for impairment calculations of Norwegian upstream assets.

Equinor's response to this risk is evaluation of carbon intensity on both project and portfolio level in our investment and divestment decisions. We have also introduced an internal carbon price, currently set at 58 USD/tonne and increasing towards 100 USD/tonne by the year 2030 and staying flat thereafter (in countries with higher carbon costs, we use the country specific cost expectations), to be used in our investment decisions. This cost-scenario is uncertain, but this extra cost serves as a placeholder for possible future CO2 pricing systems, making sure our assets are financially robust in such a scenario. As such, climate considerations are a part of the investment decisions

following Equinor's strategy and commitments to the energy transition.

Climate considerations are also included in the impairment calculations directly by estimating the CO2 taxes in the cash flows. Indirectly, the expected effect of climate change is included in the estimated commodity prices where supply and demand are considered. The CO2 prices also have effect on the estimated production profiles and economic cut-off of the projects. Impairment calculations are based on best estimate assumptions. To reflect that carbon will have a cost for all our assets, the current best estimate is considered to be EU ETS for countries outside EU where carbon is not already subject to taxation or where Equinor has not established specific estimates.

# Sensitivity table

In this table, we have presented some relevant prices and variables and the anticipated future development compared to our management's best estimate and an illustrative potential impairment effect given these scenarios. The scenario price-sets have been retrieved from IEAs report, World Energy Outlook 2022. Prices are adjusted for inflation and presented in Real 2022. USD 2 per bbl of transportation cost has been added to the brent-prices in the scenarios for comparability with our current best estimate.

# Robustness of our upstream oil & gas portfolio, and risk of stranded assets

The transition to renewable energy, technological development and the expected reduction in global demand for carbon-based energy, may have

|  | Management's price assumptions 2) | NZE by 2050 scenario | Announced Pledged Scenario |
| --- | --- | --- | --- |
| Brent blend, 2030 | 75 USD/bbl | 40 USD/bbl | 71 USD/bbl |
| Brent blend, 2040 | 70 USD/bbl | 34 USD/bbl | 69 USD/bbl |
| Brent blend, 2050 | 65 USD/bbl | 28 USD/bbl | 67 USD/bbl |
| TTF, 2030 | 9.5 USD/MMBtu | 5.0 USD/MMBtu | 8.5 USD/MMBtu |
| TTF, 2040 | 9.0 USD/MMBtu | 4.5 USD/MMBtu | 7.7 USD/MMBtu |
| TTF, 2050 | 9.0 USD/MMBtu | 4.1 USD/MMBtu | 6.8 USD/MMBtu |
| EU ETS 2), 3) , 2030 | 94 USD/tCO2 | 152 USD/tCO2 | 146 USD/tCO2 |
| EU ETS 2), 3) , 2040 | 124 USD/tCO2 | 222 USD/tCO2 | 189 USD/tCO2 |
| EU ETS 2), 3) , 2050 | 153 USD/tCO2 | 271 USD/tCO2 | 216 USD/tCO2 |
| Illustrative potential impairment (USD) |  | - 4.0 billion | < 0.5 billion |

1) Management's future commodity price assumptions applied when estimating value in use, see note 14 Impairments
2) Scenarios: Price of CO2 quotas in advanced economies with net zero pledges, not including any other CO2 taxes
3) EU ETS price assumptions have been translated from EUR to USD using Equinor's assumptions for currency rates, EUR/USD = 1.176

a negative impact on the future profitability of investments in upstream oil and gas assets, in particular assets with long estimated useful lives, projects in an early development phase and undeveloped assets controlled by Equinor. Equinor uses scenario analysis to outline different possible energy futures and several of these imply lower oil and natural gas prices. If they decrease, the oil and gas revenues will also decrease, and potentially reduce the economic lifetime of some assets. Equinor seeks to mitigate this risk by focusing on improving the resilience of the existing upstream portfolio, maximising the efficiency of our infrastructure on the Norwegian Continental Shelf and optimising our high-quality international portfolio. Equinor will continue

to add high value barrels to the portfolio through exploration and increased recovery, and NCS cash flow and value creation are expected to remain high also beyond 2030. The NCS project portfolio is very robust against potential low oil and gas prices and actions are in place to both maintain cost discipline across the company and ensure robustness of the non-sanctioned oil and natural gas projects.

Equinor will also continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to minimise emissions and maximise value. During the transition, Equinor anticipates allocating a smaller share of our capital expenditure

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to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching our 50 percent reduction ambition for operated scope 1 and 2 emissions will require a focused and coordinated effort across the company on executing and maturing abatement projects, improving energy efficiency of offshore and onshore assets, developing new technologies, and strengthening resilience in the portfolio. The abatement projects primarily include electrification of offshore assets in Norway, mainly by power from shore but also including innovations such as Hywind Tampen, our floating wind farm powering offshore oil and gas platforms. In combination with our focus on renewables and CCS, these abatement projects are expected to reduce Equinor's emissions sufficiently to support our mid-term ambitions. As such, Equinor's plans to become a net-zero company by 2050 have currently not resulted in the identification of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market and strategic considerations. Provided that the economic assumptions would deteriorate to such an extent that undeveloped assets controlled by Equinor

should not materialize, assets at risk mainly comprise the intangible assets. Oil and Gas prospects, signature bonuses and the capitalised exploration costs, with a total carrying value of USD 3,634 million. See note 13 Intangible assets for more information regarding Equinor's intangible assets.

# Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result of Equinor's plans to become a net-zero company by 2050. But, if the business cases of Equinor's oil and gas producing assets in the future should change materially due to governmental initiatives to limit climate change, this could affect the timing of cessation of our assets and also our asset retirement obligations. A shorter production period, accelerating the time for when assets need to be removed after ended production, will increase the carrying value of the liability. To illustrate the potential financial effect of earlier removal, we have estimated the effect of performing removal five years earlier than currently scheduled to an increase in the liability of around USD 1 billion. See note 23 Provisions and other liabilities for more information regarding Equinor's ARO.

# Note 4. Financial risk and capital management

# General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including commodity price risk, currency risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor's approach to risk management includes assessing and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio level between the most important market risks and the natural hedges inherent in Equinor's portfolio. This approach allows Equinor to reduce the number of risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is headed by the chief financial officer, is responsible for Equinor's Enterprise Risk Management and for proposing appropriate measures to adjust risk at the corporate level. This includes assessing Equinor's financial risk policies.

# Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity markets and is exposed to market risks including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that can affect the revenues and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with a focus on achieving the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures are managed at the corporate level, while short-term exposures are managed according

to trading strategies and mandates. Mandates in the trading organisations within crude oil, refined products, natural gas, and electricity are relatively restricted compared to the total market risk of Equinor.

# Commodity price risk

Equinor's most important long-term commodity risk (crude oil and natural gas) is related to future market prices as Equinor's risk policy is to be exposed to both upside and downside price movements. In the longer term, also power price risk is to a large extent expected to contribute to Equinor's commodity price risk portfolio. To manage short-term commodity risk, Equinor enters into commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market swaps and contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor's bilateral gas sales portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-Continental Exchange (ICE) in London, the New York Mercantile Exchange (NYMEX), the OTC Brent market, and crude and refined products swap markets. The term of natural gas, power, and emission derivatives is usually three years or less, and they are mainly OTC physical forwards and options, NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX and ICE.

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The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative contracts. Equinor's assets and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded instruments, including embedded derivatives that have been bifurcated and recognised at fair value in the Consolidated balance sheet.

Commodity price sensitivity

| (in USD million) | 2022 |  | 2021 |  |
| --- | --- | --- | --- | --- |
|  | - 30% | + 30% | - 30% | + 30% |
| Crude oil and refined products net gains/(losses) | 666 | (666) | 735 | (735) |
| Natural gas, electricity and CO 2 net gains/(losses) | (3) | 140 | 227 | (141) |

Price risk sensitivities at the end of 2022 and 2021 at 30% are assumed to represent a reasonably possible change based on the duration of the derivatives. Since none of the derivative financial instruments included in the table below are part of hedging relationships, any changes in the fair value would be recognised in the Consolidated statement of income.

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.

The following currency risk sensitivity for financial instruments has been calculated, by assuming a 12%

reasonable possible change in the most relevant foreign currency exchange rates that impact Equinor's financial accounts, based on balances at 31 December 2022. As of 31 December 2021, a change of 10% in the most relevant foreign currency exchange rates was viewed as a reasonable possible change. With reference to the table below, an increase in the foreign currency 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 foreign currency exchange rates would impact the Consolidated statement of income.

Currency risk sensitivity

| (in USD million) | 2022 |  | 2021 |  |
| --- | --- | --- | --- | --- |
|  | - 12% | + 12% | - 10% | + 10% |
| USD net gains/(losses) | (1,497) | 1,497 | (1,789) | 1,789 |
| NOK net gains/(losses) | 1,583 | (1,583) | 2,144 | (2,144) |

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Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these bonds are converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates exposure on its bond portfolio based on risk and reward considerations from an enterprise risk management perspective. This means that the fixed/floating mix on interest rate exposure may vary from time to time. For more detailed information about Equinor's long-term debt portfolio see note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of 1.2 percentage points as a reasonable possible change in interest rates at the end of 2022. In 2021, a change of 0.8 percentage points in interest rates was viewed as a reasonable possible change. A decrease in interest rates will have an estimated positive impact on net financial items in the Consolidated statement of income, while an increase in interest rates will have an estimated negative impact on net financial items in the Consolidated statement of income.

Equity price risk

Equinor's captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some other listed and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor is exposed to equity price risk defined as the risk of declining equity prices, which can result in a decline in the carrying value of certain Equinor's assets recognised in the balance sheet. The equity price risk in the portfolio held by Equinor's captive insurance company is managed, with the aim of maintaining a moderate risk profile, through

geographical diversification and the use of broad benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a 35% reasonable possible change in equity prices that impact Equinor's financial accounts, based on balances at 31 December 2022. At 31 December 2021, a change of 35% in equity prices was equally viewed as a reasonable possible change. The estimated gains and the estimated losses following from a change in equity prices would impact the Consolidated statement of income.

Interest risk sensitivity

| (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 |  | 2021 |  |
|  | - 1.2 percentage points | + 1.2 percentage points | - 0.8 percentage points | + 0.8 percentage points |
| Positive/(negative) impact on net financial items | 369 | (366) | 448 | (448) |

Equity price sensitivity

| (in USD million) | At 31 December |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2022 |  | 2021 |  |
|  | - 35% | + 35% | - 35% | + 35% |
| Net gains/(losses) | (450) | 450 | (534) | 534 |

Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The purpose of liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made six times per year. Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls from counterparties.

If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be considered. Equinor raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The policy is to have a maturity profile with repayments not exceeding 5% of capital employed in any year for the nearest five years. Equinor's non-current financial liabilities have a weighted average maturity of approximately nine years. For more information about Equinor's non-current financial liabilities, see note 21 Finance debt.

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Short-term funding needs will normally be covered by the USD 5.0 billion US Commercial paper programme (CP) which is backed by a revolving credit facility of USD 6.0 billion, supported by 19 core banks, maturing in 2025. The facility supports secure access to funding, supported by the best available short-term rating. As at 31 December 2022 the facility has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor's financial liabilities.

### Credit risk

Credit risk is the risk that Equinor's customers or counterparties will cause Equinor financial loss by failing to honour their obligations. Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments, derivative financial instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce or control credit risk both on a counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments, and cash collateral.

Prior to entering into transactions with new counterparties, Equinor's credit policy requires all counterparties to be formally identified and assigned internal credit ratings. The internal credit ratings reflect

Equinor's assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements and other relevant business information. All counterparties are re-assessed regularly.

Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor's portfolio as well as maximum credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual exposures against limits on a daily basis. Equinor's total credit exposure is geographically diversified among a number of counterparties within the oil and energy sector, as

well as larger oil and gas consumers and financial counterparties. The majority of Equinor's credit exposure is with investment-grade counterparties.

The following table contains the carrying amount of Equinor's financial receivables and derivative financial instruments split by Equinor's assessment of the counterparty's credit risk. Trade and other receivables include 1% overdue receivables of more than 30 days. A provision has been recognised for expected credit losses of trade and other receivables using the expected credit loss model. Only non-exchange traded instruments are included in derivative financial instruments.

| (in USD million) | At 31 December |  |  | 2021 |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Non-derivative financial liabilities | Lease liabilities | Derivative financial liabilities | Non-derivative financial liabilities | Lease liabilities | Derivative financial liabilities |
| Year 1 | 20,172 | 1,325 | 1,065 | 18,841 | 1,183 | 175 |
| Year 2 and 3 | 6,292 | 1,421 | 752 | 6,684 | 1,262 | 211 |
| Year 4 and 5 | 5,785 | 504 | 486 | 6,140 | 656 | 318 |
| Year 6 to 10 | 8,749 | 465 | 1,202 | 10,636 | 642 | 588 |
| After 10 years | 11,204 | 120 | 706 | 12,849 | 158 | 187 |
| Total specified | 52,202 | 3,835 | 4,211 | 55,150 | 3,901 | 1,479 |

| (in USD million) | Non-current financial receivables | Trade and other receivables | Non-current derivative financial instruments | Current derivative financial instruments |
| --- | --- | --- | --- | --- |
| At 31 December 2022 |  |  |  |  |
| Investment grade, rated A or above | 1,633 | 6,125 | 390 | 1,715 |
| Other investment grade | 12 | 8,725 | 41 | 1,393 |
| Non-investment grade or not rated | 14 | 6,761 | 259 | 931 |
| Total financial assets | 1,659 | 21,611 | 690 | 4,039 |
| At 31 December 2021 |  |  |  |  |
| Investment grade, rated A or above | 452 | 3,637 | 1,103 | 2,902 |
| Other investment grade | 18 | 8,930 | 0 | 1,524 |
| Non-investment grade or not rated | 238 | 4,624 | 162 | 705 |
| Total financial assets | 708 | 17,191 | 1,265 | 5,131 |

For more information about Trade and other receivables, see note 18 Trade and other receivables.

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The table below presents the amounts offset under the terms of various master netting agreements for financial assets and liabilities. Amounts not qualifying for offsetting consists of collateral receipts or payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There exist no restrictions on collaterals received.

| (in USD million) | Gross amounts of recognised financial assets/ liabilities | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount |
| --- | --- | --- | --- | --- | --- |
| At 31 December 2022 |  |  |  |  |  |
| Financial assets |  |  |  |  |  |
| Trade receivables | 25,607 | 7,464 | 18,143 | 0 | 18,143 |
| Collateral receivables | 19,043 | 15,575 | 3,468 | 3,468 | (0) |
| Derivative financial instruments | 30,078 | 25,348 | 4,730 | 1,708 | 3,022 |
| Total financial assets | 74,728 | 48,387 | 26,341 | 5,176 | 21,164 |
| Financial liabilities |  |  |  |  |  |
| Trade payables | 19,913 | 7,464 | 12,449 | 0 | 12,449 |
| Collateral liabilities | 15,479 | 13,907 | 1,571 | 1,571 | 0 |
| Derivative financial instruments | 33,497 | 27,015 | 6,482 | 3,605 | 2,877 |
| Total financial liabilities | 68,889 | 48,387 | 20,502 | 5,176 | 15,326 |

| (in USD million) | Gross amounts of recognised financial assets/ liabilities 1) | Gross amounts offset in the balance sheet 1) | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount |
| --- | --- | --- | --- | --- | --- |
| At 31 December 2021 |  |  |  |  |  |
| Financial assets |  |  |  |  |  |
| Trade receivables | 20,061 | 4,445 | 15,616 | 0 | 15,616 |
| Collateral receivables 1) | 9,902 | 8,327 | 1,576 | 1,576 | 0 |
| Derivative financial instruments 1) | 32,493 | 26,097 | 6,396 | 2,771 | 3,625 |
| Total financial assets 1) | 62,456 | 38,869 | 23,587 | 4,347 | 19,241 |
| Financial liabilities |  |  |  |  | 0 |
| Trade payables | 16,795 | 4,445 | 12,350 | 0 | 12,350 |
| Collateral liabilities 1) | 9,851 | 7,580 | 2,271 | 2,271 | 0 |
| Derivative financial instruments 1) | 32,218 | 26,844 | 5,375 | 2,076 | 3,299 |
| Total financial liabilities 1) | 58,864 | 38,869 | 19,996 | 4,347 | 15,649 |

1) Gross amounts have been restated due to reassessment of certain exchange traded derivatives and related collaterals previously not recognised on the Consolidated balance sheet, with no effect on net amounts presented.

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# **Capital management**

The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to ensure sufficient financial flexibility. Equinor's primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts for Norwegian Government ownership). Equinor's current long-term ratings are AA- with a stable outlook (including one notch uplift) and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody's, respectively. In order to monitor financial robustness, a key ratio utilised by Equinor is the non-GAAP metric of 'Net interest-bearing debt adjusted (ND) to Capital employed adjusted' (CE).

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial investments, adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD 6,538 million and USD 2,369 million for 2022 and 2021, respectively). CE1 is defined as Equinor's total equity (including non-controlling interests) and ND1. ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD 3,668 million and USD 3,562 million for 2022 and 2021, respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Net interest-bearing debt adjusted, including lease liabilities (ND1) | (6,750) | 3,236 |
| Net interest-bearing debt adjusted (ND2) | (10,417) | (326) |
| Capital employed adjusted, including lease liabilities (CE1) | 47,239 | 42,259 |
| Capital employed adjusted (CE2) | 43,571 | 38,697 |
| Net debt to capital employed adjusted*, including lease liabilities (ND1/CE1) | (14.3%) | 7.7% |
| Net debt to capital employed adjusted* (ND2/CE2) | (23.9%) | (0.8%) |

# **Note 5. Segments**

# **Accounting policies**

Equinor's operations are managed through operating segments identified on the basis of those components of Equinor that are regularly reviewed by the chief operating decision maker. Equinor's corporate executive committee (CEC), the reportable segments Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the line-item 'Additions to PP&E' intangibles and equity accounted investments in which movements related to changes in asset retirement obligations are excluded as well

as provisions for onerous contracts which reflect only obligations towards group external parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from market prices. The transactions are eliminated upon consolidation.

With effect from 2022, Equinor changed the measurement basis for the segments related to leases. Up to and including 2021, all leases were presented within the Other segment and lease costs were allocated to the operating segments based on underlying lease payments with a corresponding credit in the Other segment. With effect from 2022, lease contracts are accounted for in accordance with IFRS 16 Leases in all segments. This change does not affect Equinor's Consolidated financial statements except the segment disclosures in this note. Comparative numbers in the segments have been restated.

The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources, commercial development and safe and efficient operation of the oil and gas portfolios within their respective geographical areas. E&P Norway on the Norwegian continental shelf, E&P USA in USA and

E&P International worldwide outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

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TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas, NGL, and refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines, shipping, trucking and rail. In addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such as offshore wind, green hydrogen, storage solutions, and solar power.

Segment information for the years ended 31 December 2022, 2021, and 2020 are presented below. For revenues per geographical area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments, please refer to the related notes, note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments, contingent liabilities, and contingent assets.

| 2022 (in USD million) | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income | 1,299 | 1,134 | 305 | 147,173 | 127 | 149 | 0 | 150,186 |
| Revenues inter-segment | 74,631 | 6,124 | 5,217 | 527 | 0 | 55 | (86,554) | 0 |
| Net income/(loss) from equity accounted investments | 0 | 172 | 0 | 406 | 58 | (16) | 0 | 620 |
| Total revenues and other income | 75,930 | 7,431 | 5,523 | 148,105 | 185 | 187 | (86,554) | 150,806 |
| Purchases (net of inventory variation) | 0 | (116) | 0 | (139,916) | 0 | 0 | 86,227 | (53,806) |
| Operating, selling, general and administrative expenses | (3,782) | (1,698) | (938) | (4,591) | (265) | (223) | 904 | (10,595) |
| Depreciation and amortisation | (4,986) | (1,445) | (1,422) | (881) | (4) | (142) | 0 | (8,878) |
| Net impairment (losses)/reversals | 819 | (286) | 1,060 | 895 | 0 | 0 | 0 | 2,487 |
| Exploration expenses | (366) | (638) | (201) | 0 | 0 | 0 | 0 | (1,205) |
| Total operating expenses | (8,315) | (4,183) | (1,501) | (144,493) | (269) | (365) | 87,131 | (71,995) |
| Net operating income/(loss) | 67,614 | 3,248 | 4,022 | 3,612 | (84) | (178) | 577 | 78,811 |
| Additions to PP&E, intangibles and equity accounted investments | 4,922 | 2,623 | 764 | 1,212 | 298 | 176 | 0 | 9,994 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 550 | 0 | 688 | 1,452 | 65 | 0 | 2,758 |
| Non-current segment assets | 28,510 | 15,868 | 11,311 | 4,619 | 316 | 1,031 | 0 | 61,656 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 15,437 |
| Total non-current assets |  |  |  |  |  |  |  | 79,851 |
| Assets classified as held for sale | 0 | 1,018 | 0 | 0 | 0 | 0 | 0 | 1,018 |

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| 2021 (in USD million) | E&P Norway 1) | E&P International 1) | E&P USA 1) | MMP 1) | REN 1) | Other 1) | Eliminations 1) | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income 1) | 414 | 1,121 | 377 | 87,050 | 1,394 | 307 | 0 | 90,665 |
| Revenues inter-segment 1) | 38,972 | 4,230 | 3,771 | 321 | 0 | 41 | (47,335) | 0 |
| Net income/(loss) from equity accounted investments | 0 | 214 | 0 | 22 | 16 | 7 | 0 | 259 |
| Total revenues and other income 1) | 39,386 | 5,566 | 4,149 | 87,393 | 1,411 | 355 | (47,335) | 90,924 |
| Purchases [net of inventory variation] | 0 | (58) | 0 | (80,873) | 0 | (1) | 45,772 | (35,160) |
| Operating, selling, general and administrative expenses 1) | (3,653) | (1,405) | (1,074) | (3,753) | (163) | (432) | 1,102 | (9,378) |
| Depreciation and amortisation 1) | (6,002) | (1,734) | (1,665) | (869) | (3) | (158) | 0 | (10,432) |
| Net impairment (losses)/reversals 1) | 1,102 | (1,587) | (69) | (735) | 0 | 2 | 0 | (1,287) |
| Exploration expenses | (363) | (451) | (190) | 0 | 0 | 0 | 0 | (1,004) |
| Total operating expenses 1) | (8,915) | (5,237) | (2,998) | (86,230) | (166) | (590) | 46,873 | (57,261) |
| Net operating income/(loss) 1) | 30,471 | 329 | 1,150 | 1,163 | 1,245 | (234) | (461) | 33,663 |
| Additions to PP&E intangibles and equity accounted investments 1) | 4,943 | 1,834 | 690 | 517 | 457 | 64 | 0 | 8,506 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 1,417 | 0 | 113 | 1,108 | 45 | 0 | 2,686 |
| Non-current segment assets 1) | 36,502 | 15,422 | 11,406 | 4,006 | 157 | 1,032 | 0 | 68,527 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 13,406 |
| Total non-current assets |  |  |  |  |  |  |  | 84,618 |
| Assets classified as held for sale | 0 | 676 | 0 | 0 | 0 | 0 | 0 | 676 |

1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line items Operating, selling, general and administrative expenses in MMP (reduction of USD 523 million), E&P Norway (reduction of USD 77 million) and Other (increase of USD 696 million), Depreciation and amortisation in MMP (increase of USD 509 million), E&P Norway (increase of USD 222 million) and Other (reduction of USD 799 million) and Non-current segment assets in MMP (increase of USD 987 million), E&P Norway (increase of USD 1,201 million) and Other (decrease of USD 2,255 million).

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

| 2020 (in USD million) | E&P Norway 1) | E&P International 1) | E&P USA 1) | MMP 1) | REN 1) | Other 1) | Eliminations 1) | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues third party, other revenue and other income 1) | 215 | 452 | 368 | 44,623 | 18 | 88 | 0 | 45,765 |
| Revenues inter-segment | 11,804 | 3,183 | 2,247 | 309 | 0 | 39 | (17,581) | 0 |
| Net income/(loss) from equity accounted investments | 0 | (146) | 0 | 31 | 163 | 5 | 0 | 53 |
| Total revenues and other income 1) | 12,019 | 3,489 | 2,615 | 44,963 | 181 | 132 | (17,581) | 45,818 |
| Purchases [net of inventory variation] | 0 | (72) | 0 | (38,072) | 0 | 1 | 17,157 | (20,986) |
| Operating, selling, general and administrative expenses 1) | (2,736) | (1,374) | (1,310) | (4,564) | (214) | (59) | 722 | (9,537) |
| Depreciation and amortisation 1) | (4,466) | (2,105) | (1,889) | (875) | (1) | (178) | (1) | (9,515) |
| Net impairment (losses)/reversals 1) | (1,260) | (1,426) | (1,938) | (1,076) | 0 | (19) | (1) | (5,720) |
| Exploration expenses | (423) | (2,071) | (990) | 0 | 0 | 1 | (1) | (3,483) |
| Total operating expenses 1) | (8,886) | (7,048) | (6,127) | (44,587) | (216) | (254) | 17,877 | (49,241) |
| Net operating income/(loss) 1) | 3,133 | (3,559) | (3,512) | 376 | (35) | (122) | 295 | (3,423) |
| Additions to PP&E intangibles and equity accounted investments 1) | 5,004 | 2,588 | 1,067 | 1,048 | 33 | 22 | 0 | 9,762 |
| Balance sheet information |  |  |  |  |  |  |  |  |
| Equity accounted investments | 3 | 1,125 | 0 | 95 | 1,017 | 25 | 0 | 2,262 |
| Non-current segment assets 1) | 39,355 | 17,960 | 12,588 | 5,605 | 4 | 1,144 | 0 | 76,657 |
| Non-current assets not allocated to segments |  |  |  |  |  |  |  | 13,704 |
| Total non-current assets |  |  |  |  |  |  |  | 92,623 |
| Assets classified as held for sale | 0 | 0 | 1,159 | 0 | 203 | 0 | 0 | 1,362 |

1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line items Operating, selling, general and administrative expenses in MMP (reduction of USD 494 million), E&P Norway (reduction of USD 93 million) and Other (increase of USD 693 million), Depreciation and amortisation in MMP (increase of USD 481 million), E&P Norway (increase of USD 181 million) and Other (reduction of USD 718 million) and Non-current segment assets in MMP (increase of USD 1,238 million), E&P Norway (increase of USD 1,623 million) and Other (decrease of USD 2,987 million).

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ABOUT EQUINOR^{}[] AND OUR STRATEGY

ENTERPRISE LEVEL^{}[] PERFORMANCE

REPORTING SEGMENT^{}[] PERFORMANCE

FINANCIAL^{}[] STATEMENTS

ADDITIONAL^{}[] INFORMATION

# Non-current assets by country

| (in USD million) | At 31 December |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Norway | 33,242 | 40,564 |
| USA | 12,343 | 12,323 |
| Brazil | 9,400 | 8,751 |
| UK | 3,688 | 2,096 |
| Azerbaijan | 1,401 | 1,654 |
| Canada | 1,171 | 1,403 |
| Angola | 895 | 948 |
| Algeria | 622 | 708 |
| Argentina | 615 | 474 |
| Denmark | 497 | 536 |
| Other | 541 | 1,757 |
| Total non-current assets 1) | 64,414 | 71,213 |

1) Excluding deferred tax assets, pension assets and non-current financial assets.

Equinor's non-current assets in Norway have decreased by USD 7,322 million to USD 33,242 million at 31 December 2022 compared to year-end 2021, mainly due to increased discount rates and strengthening of USD versus NOK. The decrease has mainly affected Property, plant and equipment, see note 12.

# Note 6. Acquisitions and disposals

# Accounting policies

# Business combinations

Business combinations, except for transactions between entities under common control, are accounted for using the acquisition method. The purchase price includes total consideration paid to acquire the entity's assets and liabilities, as well as contingent consideration at fair value. The acquired identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under Selling, general and administrative expenses. Changes in the fair value of contingent consideration resulting from events after the acquisition date are recognised in the Consolidated statement of income under Other income.

Equinor recognises a gain/loss on disposal of a subsidiary when control is lost. Any remaining interest in the former subsidiary is recognised at fair value. When partially divesting subsidiaries which do not constitute a business, and where the remaining investment in the former subsidiary is an associate or a jointly controlled investment, Equinor only recognises the gain or loss on the divested part within Other income or Operating expenses, respectively. The remaining interest in the former subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

# After-tax disposals

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release of tax liabilities previously recognised related to the assets in question and is recognised in full in Other income in the Consolidated statement of income.

# Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet when a sale is highly probable. This condition is met when an asset is available for immediate sale in its present condition. Equinor's management is committed to the sale, and the sale is expected to be completed within one year from the date of classification. In Equinor, these requirements are normally met when management has approved a negotiated letter of intent with the counterparties (a 'DGC'). Liabilities directly associated with the assets classified as held for sale and expected to be included as part of the sales transaction, are also classified separately. 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.

# Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to be applied on a case-by-case basis. Acquisitions are assessed to establish whether the transaction represents a business combination or an

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asset purchase, and the conclusion may materially affect the financial statements both in the transaction period and subsequent periods. Similar assessments are performed upon the acquisition of an interest in a joint operation. Depending on the specific facts, acquisitions of exploration and evaluation licences for which a development decision has not yet been made have largely been concluded to represent asset purchases, while purchases of producing assets have largely been concluded to represent business acquisitions.

#### Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the requirements and scope of IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The conclusion requires judgement to be applied on a case-by-case basis, considering the substance of the transactions. In evaluating the standards' requirements, Equinor acknowledges pending considerations related to several relevant and similar issues which have been postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets are transferred into separate legal entities concurrently with a portion of the entities' shares being sold to a third party, thereby resulting in Equinor's loss of control of those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to only recognise the gain on the divested portion.

2022

Acquisitions

Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar Aps to acquire 100% of BeGreen Solar Aps for a cash consideration of USD 277 million (EUR 260 million) and a consideration contingent on successful delivery of future solar projects above an agreed MW threshold. BeGreen Solar Aps is a Danish solar developer. At closing, USD 226 million (EUR 213 million) of the cash consideration was paid and recognised in the REN segment.

Acquisition of Triton Power

On 1 September 2022, Equinor and SSE Thermal Generation Holdings Limited (SSE Thermal) closed a transaction to acquire the UK power company Triton Power Holdings Ltd (Triton Power) from Triton Power Partners LP owned by Energy Capital Partners (ECP). Equinor's share of the consideration was USD 141 million (GBP 120 million), after adjustments that mainly related to net debt and working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station with an installed capacity of 1.2 GW. Equinor and SSE Thermal own 50% each of Triton Power, and Equinor is accounting for the investment under the equity method as a joint venture in the MMP segment.

Acquisition of Statfjord licence shares

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy's interests in production licences in the Statfjord area which covers the Norwegian and UK Continental Shelves and consists of three integrated production platforms and satellite

subsea installations. All licences are operated by Equinor. Spirit Energy's ownership shares in the licences covered by the transaction range from 11.56% to 48.78%. The cash consideration received was USD 193 million, whereof USD 25 million related to Spirit's lifting of volumes on Equinor's behalf in June 2022. The assets and liabilities acquired have been reflected in accordance with the principles in IFRS 3 Business Combinations. The transaction is reflected in the E&P Norway and E&P International segments with a cash consideration of USD 96 million and USD 72 million, respectively.

In the segment E&P Norway, the acquisition resulted in an increase of USD 98 million in property, plant and equipment, an increase of USD 390 million in asset retirement obligation, a reduction of deferred tax liability of USD 298 million and an increase in taxes payable of USD 98 million. In the segment E&P International, the acquisition resulted in an increase of USD 98 million in property, plant and equipment, an increase of USD 241 million in asset retirement obligation and an increase of deferred tax asset of USD 86 million.

Disposals

Eksfisk and Martin Linge on the Norwegian Continental Shelf

On 30 September 2022, Equinor closed a transaction with Sval Energi AS to divest Equinor's entire ownership share in the Greater Eksfisk Area including its share in Norpipe Oil AS, and a 19% ownership share in Martin Linge. The cash consideration paid upon closing of the transaction amounted to USD 293 million after interim period settlement. In addition, an estimated contingent consideration of USD 169 million linked to realised oil

and gas prices for 2022 and 2023 was recognised. Equinor retained a 51% ownership share in Martin Linge and continues as operator of the field. The disposal resulted in a decrease in property, plant and equipment of USD 1,493 million, a decrease in asset retirement obligation of USD 376 million, a decrease in deferred tax liability of USD 597 million and a decrease in taxes payable of USD 686 million. A post-tax gain of USD 655 million is presented in the line item Other income in the Consolidated statement of income in the E&P Norway segment.

Exit Russia

Following Russia's invasion of Ukraine in February 2022, Equinor announced that it had decided to stop new investments in Russia and start the process of exiting Equinor's joint arrangements. Based on this decision, Equinor evaluated its assets in Russia and recognised net impairments of USD 1,083 million in the first quarter, of which USD 251 million was related to property, plant and equipment and intangible assets and USD 832 million was related to investments accounted for using the equity method. The impairments were net of contingent consideration from the time of acquiring the assets. The impairments were recognised in the line items Depreciation, amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based on the nature of the impaired assets and reflected in the E&P International segment. During the second quarter, Equinor transferred its participating interests in four Russian entities to Rosneft and was released from all future commitments and obligations with no material impact on the financial statements. The ownership interests in Kharyaga were transferred to the operator.

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Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any new trades or engage in new transport of oil and oil products from Russia. Equinor has assessed the accounting impact of certain commitments arising from such contracts entered into prior to the invasion and deem the impact to be immaterial.

### 10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank C project in the UK for a total consideration of USD 91 million (GBP 68 million), resulting in a gain of USD 87 million (GBP 65 million). After closing, Equinor's ownership share is 40%. Equinor continues to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

### Held for sale

#### Equinor Energy Ireland Limited

In the fourth quarter of 2021, Equinor entered into an agreement with Vermilion Energy Inc (Vermilion) to sell Equinor's non-operated equity position in the Corrib gas project in Ireland. The transaction covers a sale of 100% of the shares in Equinor Energy Ireland Limited (EEIL), EEIL owns 36.5% of the Corrib field alongside the operator Vermilion (20%) and Nephin Energy (43.5%). Equinor and Vermilion have agreed a consideration of USD 434 million before closing adjustments and contingent consideration linked to 2022 production level and gas prices. Closing is dependent on

governmental approval and is expected to take place during the first quarter 2023.

### 2021

#### Acquisitions

##### Wento

On 5 May 2021, Equinor completed a transaction to acquire 100% of the shares in Polish onshore renewables developer Wento from the private equity firm Enterprise Investors for a cash consideration of USD 117 million (EUR 98 million) after net cash adjustments. The assets and liabilities related to the acquired business were recognised under the acquisition method. The acquisition resulted in an increase of Equinor's intangible assets of USD 46 million and goodwill of USD 59 million. The goodwill reflects the expected synergies, competence and access to the Polish renewables market obtained in the acquisition. The transaction has been accounted for in the REN segment.

### Disposals

#### Equinor Refining Denmark A/S

On 31 December 2021, Equinor Danmark A/S closed the transaction with the Klesch Group to sell 100% of the shares in Equinor Refining Denmark A/S (ERD). Klesch paid USD 48 million of the total estimated consideration at closing. ERD consists of the Kalundborg refinery and associated terminals and infrastructure. Following an impairment earlier in 2021, the disposal resulted in an immaterial loss. Prior to transaction closing, Equinor received USD 335 million in extraordinary dividend and repayment of paid-in capital from ERD.

Following the disposal, a gain of USD 167 million was recycled from Other comprehensive income (OCI) to the Consolidated statement of income in the line item Other income and has been reflected in the MMP segment.

##### Terra Nova

On 8 September 2021, Equinor closed the transaction with Cenovus and Murphy to sell 100% of its interest, which includes a release of any future obligations and liabilities, in the Terra Nova asset in offshore Canada. The transaction was accounted for in the E&P International segment. The consideration paid, the net carrying amount and the impact to the Consolidated statement of income are immaterial.

##### Bakken onshore unconventional field

On 26 April 2021, Equinor closed the transaction to divest its interests in the Bakken field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments for an estimated total consideration of USD 819 million, including interim period settlement, for which payment was received in the first half of 2021. The asset had been impaired in 2021 prior to closing. Subsequent to closing, insignificant losses were recorded and are presented in the line item Operating expenses in the Consolidated statement of income in the E&P USA segment.

##### 10% of Dogger Bank Farm A and B

On 26 February 2021, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of USD 285 million (GBP 206 million),

resulting in a gain of USD 280 million (GBP 203 million). After closing, Equinor has a 40% shareholding in Dogger Bank A and Dogger Bank B, and will continue to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

##### Non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast

On 29 January 2021, Equinor closed the transaction with BP to sell 50% of the non-operated interests in the Empire Wind and Beacon Wind assets for a preliminary total consideration after interim period adjustments of USD 1.2 billion, resulting in a gain of USD 1.1 billion for the divested part, of which USD 500 million had been prepaid at the end of December 2020. Through this transaction, the two companies have established a strategic partnership for further growth within offshore wind in the USA. Following the transaction, Equinor remains the operator with a 50% interest. Equinor consolidated the assets until transaction closing, and thereafter the investments are classified as joint ventures and accounted for using the equity method. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

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## Note 7. Total revenues and other income

### Accounting policies

#### Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption. Revenues, in the Consolidated statement of income.

#### Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products 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, which is delivered on a continuous basis through pipelines, sales are completed over time in line with the delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts with customers and Purchases [net of inventory variation] respectively in the Consolidated statement of income. When the contracts are deemed financial instruments or part of Equinor's trading activities, they are settled and presented on a net

basis as Other revenue. Reference is made to note 28 Financial instruments and fair value measurement for a description of accounting policies regarding derivatives. Sales of Equinor's own produced oil and gas volumes are always reflected gross as Revenue from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with other companies are recognised on the basis of volumes lifted and sold to customers during the period (the sales method). Where Equinor has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted and sold less than the ownership interest, costs are deferred for the underlift.

#### Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers, are presented as Other revenue if they do not qualify as revenue from contracts with customers. These other revenue items include taxes paid in-kind under certain production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative instruments related to sales contracts or revenue-related risk management.

### Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the Norwegian continental shelf (NCS). The Norwegian State's participation in petroleum activities is organised through the SDFI (the Norwegian State's Direct Financial Interests). All purchases and sales of the SDFI's oil production are classified as purchases [net of inventory variation] and revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI's account and risk, the SDFI's production of natural gas. These gas sales and related expenditures refunded by the SDFI are presented net in the Consolidated financial statements. Natural gas sales made in the name of Equinor's subsidiaries are also presented net of the SDFI's share in the Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

### Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant accounting judgement. In making the judgement, Equinor has considered whether it controls the State-originated crude

oil volumes prior to onwards sales to third party customers. Equinor directs the use of the volumes, and although certain benefits from the sales subsequently flow to the SDFI, Equinor purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On that basis, Equinor has concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from the SDFI to Equinor. Although Equinor has been granted the ability to direct the use of the volumes, all the benefits from the sales of these volumes flow to the SDFI. On that basis, Equinor is not considered the principal in the sale of the SDFI's natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions performed between Equinor and SDFI.

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ADDITIONAL^{}[] INFORMATION

# **Revenues from contracts with customers by geographical areas**

Equinor has business operations in around 30 countries. When attributing the line-item Revenues from contracts with customers for 2022 to the country of the legal entity executing the sale for 2022, Norway constitutes 84% and USA constitutes 13%. For 2021 the revenues to Norway and USA constituted 81% and 13% respectively, and for 2020 80% and 14% respectively.

# **Revenues from contracts with customers and other revenues**

| (in USD million) | Note | 2022 | 2021 | 2020 |
| --- | --- | --- | --- | --- |
| Crude oil |  | 58,524 | 38,307 | 24,509 |
| Natural gas |  | 65,232 | 28,050 | 7,213 |
| - European gas |  | 58,239 | 24,900 | 5,839 |
| - North American gas |  | 2,884 | 1,783 | 1,010 |
| - Other incl LNG |  | 4,109 | 1,368 | 363 |
| Refined products |  | 11,093 | 11,473 | 6,534 |
| Natural gas liquids |  | 9,240 | 8,490 | 5,069 |
| Transportation |  | 1,470 | 921 | 1,083 |
| Other sales |  | 4,702 | 1,006 | 681 |
| Total revenues from contracts with customers |  | 150,262 | 88,247 | 45,088 |
| Taxes paid in-kind |  | 412 | 345 | 93 |
| Physically settled commodity derivatives |  | (2,534) | (1,075) | 209 |
| Gain/(loss) on commodity derivatives |  | 739 | 951 | 108 |
| Change in fair value of trading inventory |  | (194) | 0 | 0 |
| Other revenues |  | 319 | 276 | 256 |
| Total other revenues |  | (1,258) | 497 | 665 |
| Revenues |  | 149,004 | 88,744 | 45,753 |
| Net income/(loss) from equity accounted investments | 15 | 620 | 259 | 53 |
| Other income | 6 | 1,182 | 1,921 | 12 |
| Total revenues and other income |  | 150,806 | 90,924 | 45,818 |

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ENTERPRISE LEVEL^{}[] PERFORMANCE

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ADDITIONAL^{}[] INFORMATION

## Note 8. Salaries and personnel expenses

| (in USD million, except average number of employees) | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Salaries 1) | 2,875 | 2,962 | 2,625 |
| Pension costs 2) | 458 | 488 | 432 |
| Payroll tax | 433 | 414 | 368 |
| Other compensations and social costs | 324 | 288 | 283 |
| Total payroll expenses | 4,090 | 4,152 | 3,707 |
| Average number of employees 3) | 21,500 | 21,400 | 21,700 |

1) Salaries include bonuses, severance packages and expatriate costs in addition to base pay.

2) See note 22 Pensions.

3) Part time employees amount to 3% for 2022 and 2021 and 2% for 2020.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours incurred basis.

## Compensation to the board of directors (BoD) and the corporate executive committee (CEC)

| (in USD million) 4) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Current employee benefits | 12.9 | 12.2 | 9.0 |
| Post-employment benefits | 0.4 | 0.4 | 0.6 |
| Other non-current benefits | 0.0 | 0.0 | 0.0 |
| Share-based payment benefits | 0.2 | 0.1 | 0.1 |
| Total benefits | 13.5 | 12.7 | 9.7 |

1) All figures in the table are presented on accrual basis.

At 31 December 2022, 2021, and 2020 there are no loans to the members of the BoD or the CEC.

### Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary deductions and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts

vested for bonus shares granted and related social security tax was USD 85 million, USD 79 million, and USD 74 million related to the 2022, 2021 and 2020 programmes, respectively. For the 2023 programme (granted in 2022), the estimated compensation expense is USD 78 million. At 31 December 2022 the amount of compensation cost yet to be expensed throughout the vesting period is USD 174 million.

See note 20 Shareholders' equity and dividends for more information about share-based compensation.

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## Note 9. Auditor's remuneration and Research and development expenditures

### Auditor's remuneration

| (in USD million, excluding VAT) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Audit fee | 11.4 | 14.4 | 10.7 |
| Audit related fee | 1.8 | 1.1 | 1.0 |
| Tax fee | - | - | - |
| Other service fee | - | - | - |
| Total remuneration | 13.2 | 15.5 | 11.7 |

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences amount to USD 0.6 million, USD 0.5 million and USD 0.5 million for 2022, 2021 and 2020, respectively.

### Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D activities contribute to maximising and developing long-term value from Equinor's assets.

R&D expenditures are partially financed by partners of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD 308 million, USD 291 million and USD 254 million in 2022, 2021 and 2020, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated statement of income.

## Note 10. Financial items

| (in USD million) | Full year |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Foreign currency exchange gains/(losses) derivative financial instruments | 797 | 870 | (1,288) |
| Other foreign currency exchange gains/(losses) | 1,291 | (823) | 642 |
| Net foreign currency exchange gains/(losses) | 2,088 | 47 | (646) |
| Dividends received | 93 | 39 | 44 |
| Interest income financial investments, including cash and cash equivalents | 398 | 38 | 108 |
| Interest income non-current financial receivables | 30 | 26 | 34 |
| Interest income other current financial assets and other financial items | 701 | 48 | 113 |
| Interest income and other financial items | 1,222 | 151 | 298 |
| Gains/(losses) financial investments | (394) | (348) | 456 |
| Gains/(losses) other derivative financial instruments | (1,745) | (708) | 448 |
| Interest expense bonds and bank loans and net interest on related derivatives | (1,029) | (896) | (951) |
| Interest expense lease liabilities | (90) | (93) | (104) |
| Capitalised borrowing costs | 382 | 334 | 308 |
| Accretion expense asset retirement obligations | (449) | (453) | (412) |
| Interest expense current financial liabilities and other finance expense | (192) | (114) | (232) |
| Interest expenses and other finance expenses | (1,379) | (1,223) | (1,392) |
| Net financial items | (207) | (2,080) | (836) |

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PERFORMANCE

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ADDITIONAL
INFORMATION

Equinor's main financial items relate to assets and liabilities categorised in the fair value through profit or loss and the amortised cost categories. For more information about financial instruments by category see note 28 Financial instruments and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes of currency derivatives related to liquidity and currency risk. The line item Other foreign currency exchange gains/(losses) includes a fair value loss from derivatives related to non-current debt of USD 691 million in 2022, a loss of USD 702 million in 2021 and a gain of USD 796 million in 2020.

The line item Gains/(losses) other derivative financial instruments primarily includes fair value changes from interest rate related derivatives, with a loss of USD 1,760 million and USD 724 million in 2022 and 2021 respectively, and a gain of USD 432 million in 2020.

The line item Interest expense bonds and bank loans and net interest on related derivatives includes interest expenses of USD 918 million, USD 990 million, and USD 1,031 million for 2022, 2021 and 2020, respectively, from the financial liabilities at amortised cost category. It also includes net interest on related derivatives from the fair value through profit or loss category, amounting to a net interest expense of USD 111 million for 2022, net interest income of USD 94 million and USD 79 million for 2021 and 2020, respectively.

## Note 11. Income taxes

### Accounting policies

#### Income tax

Income tax in the Consolidated statement of income comprises 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 adjustment to tax payable for previous years. Uncertain tax positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each case the most likely amount for probable liabilities to be paid (including penalties) or assets to be received (disputed tax positions for which payment has already been made) is recognised within Current tax or Deferred tax as appropriate. 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, and on unused tax losses and credits carried

forward, subject to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. For a deferred tax asset to be recognised based on future taxable income, convincing evidence is required, considering the existence of contracts, production of oil or gas in the near future based on volumes of expected reserves, observable prices in active markets, expected volatility of trading profits, expected foreign currency rate movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred tax liability and a corresponding deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax items. The applied policy is in line with an amendment to IAS 12 Income Taxes, reducing the scope of the initial recognition exemption, which is effective from 1 January 2023.

#### Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise significant changes to deferred tax assets and deferred tax liabilities. There may be uncertainties

related to interpretations of applicable tax laws and regulations regarding amounts in Equinor's tax returns, which are filed in a number of tax regimes. For cases of uncertain tax treatments, it may take several years to complete the discussions with relevant tax authorities or to reach resolutions of the appropriate tax positions through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations of applicable laws, regulations and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is dependent upon proper application of at times very complex sets of rules, the recognition of changes in applicable rules and, in the case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions against future income taxes. Climate-related matters and the transition to carbon-neutral energy-consumption globally have increased the uncertainty in determining key business assumptions used to assess the recoverability of deferred tax assets through sufficient future taxable income before tax losses expire.

Equinor 2022 Integrated annual report

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