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Acquisitions and disposals
12 Months Ended
Dec. 31, 2021
Disclosure Of Business Combination And Discontinued Operatons [Abstract]  
Disclosure Of Business Combination And Divestment [text block]
5 Acquisitions and disposals
2021
Disposals
10% of Dogger Bank Farm C
On 10 February 2022, Equinor closed an agreement with Eni to sell a
10
% interest in the Dogger Bank Wind Farm C project in the UK
for a consideration of GBP
68
 
million (USD
92
 
million) after closing adjustments. Eni has also closed an agreement to purchase a 10%
interest in Dogger Bank C from project partner SSE Renewables on the same terms. The new
 
overall shareholding in Dogger Bank C
is SSE Renewables (
40
%), Equinor (
40
%) and Eni (
20
%). The asset was classified as held for sale at 31 December 2021. The
carrying amount of the interests to be disposed of is immaterial and is reported in the REN
 
segment. The gain will be reported in the
REN segment in the first quarter 2022.
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 has been 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 is 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 has been received in the first half of 2021. Post-closing settlement
 
adjustments are
ongoing, and the consideration will be final in early 2022. The asset was impaired in the first quarter
 
of 2021. During the subsequent
three quarters of 2021 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 GBP
206.4
 
million (USD
285
 
million), resulting in a gain of GBP
202.8
 
million (USD
280
million). After closing, the new overall shareholdings in Dogger Bank A and Dogger Bank B are SSE
 
Renewables (
40
%), Equinor
(
40
%), and Eni (
20
%). Equinor 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. For further information
 
about the gain recognition, reference is
made to the section Accounting judgement regarding partial divestments and the related policy in note 2
 
Significant accounting
policies.
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 EUR
98
 
million (USD
117
 
million) after net cash adjustments. In
addition, Equinor acquired a receivable of USD
3
 
million from Enterprise Investors towards investees. The assets and liabilities related
to the acquired business have been recognised under the acquisition method. In the second quarter
 
2021, the acquisition resulted in
an increase of Equinor’s intangible assets of USD
46
 
million, goodwill of USD
59
 
million, deferred tax liability of USD
9
 
million and
other net assets of USD
21
 
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.
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 expected during 2022.
2020
Acquisition onshore Russia
In the fourth quarter of 2020, Equinor closed a transaction with Rosneft to acquire a
49
% interest in the limited liability company LLC
KrasGeoNaC (KGN) which holds twelve conventional onshore exploration and production licences in Eastern
 
Siberia. The cash
consideration at closing, including interim period adjustment, was USD
384
 
million. In addition to the cash consideration, Equinor
recognised a contingent consideration of USD
145
 
million related to future exploration expenses. The total consideration for the
acquisition of USD
529
 
million has been accounted using equity method in the line item Equity accounted investment
 
and reported in
the E&P International segment.
As part of this agreement, Equinor extinguished its exploration commitments offshore in the Sea of Okhotsk and as
 
such has
no
outstanding obligations in that area. The previous commitment in the Sea of Okhotsk has been charged
 
to the income statement at
estimated fair value of USD
166
 
million. The charge has been accounted as Net income/(loss) from equity accounted investments in
the E&P International segment.
Divestment of remaining shares in Lundin
In the second quarter of 2020, Equinor closed the divestment of its remaining (
4.9
%) financial shareholding in Lundin Energy AB
(formerly Lundin Petroleum AB). The consideration was SEK
3.3
 
billion (USD
0.3
 
billion). The impact on the Consolidated statement of
income in the second quarter was a loss of USD
0.1
 
billion and was recognised in the line item Interest income and other financial
items.
Investment in interest onshore Argentina
In the first quarter of 2020, Equinor closed a transaction to acquire a
50
% ownership share in SPM Argentina S.A (SPM) from
Schlumberger Production Management Holding Argentina B.V. Shell acquired the remaining
50
% ownership share of SPM. SPM
holds a
49
% interest in the Bandurria Sur onshore block in Argentina, and the block is in the
 
pilot phase of development. The
consideration including final adjustments is USD
187
 
million. In the second quarter, Equinor increased its shareholding in the
Bandurria Sur by
5.5
% to
30
% for a final consideration of USD
44
 
million. The investment in SPM is accounted for as a joint venture
using the equity method and reported in the E&P International segment.