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Leases
12 Months Ended
Dec. 31, 2021
Leases [abstract]  
Disclosure of leases [text block]
23 Leases
Equinor leases certain assets, notably drilling rigs, transportation vessels, storages and office facilities for operational activities.
Equinor is mostly a lessee and the use of leases serves operational purposes rather than as
 
a tool for financing.
Certain leases, such as land bases, supply vessels, helicopters and office buildings are entered into by Equinor for subsequent
allocation of costs to licences operated by Equinor. These lease liabilities are recognized on a gross basis in the balance sheet,
income statement and statement of cash flows when Equinor is considered to have the primary responsibility
 
for the full lease
payments. Lease liabilities related to assets dedicated to specific licences, where each licence
 
participants are considered to have the
primary responsibility for lease payments, are reflected net of partner share. This would typically involve drilling
 
rigs dedicated to
specific licences on the Norwegian continental shelf.
Information related to lease payments and lease
 
liabilities
(in USD million)
2021
2020
Lease liabilities at 1 January
4,406
4,339
New leases, including remeasurements and cancellations
476
1,349
Gross lease payments
(1,350)
(1,415)
Lease interest
91
102
Lease repayments
 
(1,259)
(1,259)
(1,313)
(1,313)
Foreign currency translation effects
(61)
31
Lease liabilities at 31 December
3,562
4,406
Current lease liabilities
1,113
1,186
Non-current lease liabilities
2,449
3,220
Lease expenses not included in lease liabilities
(in USD million)
2021
2020
Short-term lease expenses
160
342
Payments related to short term leases are mainly related to drilling rigs and transportation
 
vessels, for which a significant portion of
the lease costs have been included in the cost of other assets, such as rigs used
 
in exploration or development activities. Variable
lease expense and lease expense related to leases of low value assets are not significant.
Equinor recognised revenues of USD
272
 
million in 2021 and USD
252
 
million in 2020 related to lease costs recovered from licence
partners related to lease contracts being recognised gross by Equinor. In addition, Equinor received repayments of USD
4
 
million in
2021 and USD
29
 
million in 2020 related to finance subleases. At year-end 2021 and 2020 total
 
finance sublease receivables were
USD
104
 
million and USD
38
 
million respectively, which are included in the line items Prepayments and financial receivables and
Trade and other receivables in the Consolidated balance sheet.
Commitments relating to lease contracts which had not yet commenced at year-end are included
 
within Other commitments in note 24
Other commitments, contingent liabilities and contingent assets.
A maturity profile based on undiscounted contractual cash flows for lease liabilities is
 
disclosed in note 6 Financial risk and capital
management.
Non-current lease liabilities maturity profile
At 31 December
(in USD million)
2021
2020
Year 2 and 3
1,164
1,513
Year 4 and 5
586
748
After 5 years
699
959
Total repayment of non-current lease liabilities
2,449
3,220
Information related to Right of use assets
(in USD million)
Drilling rigs
Vessels
Land and
buildings
Storage
facilities
Other
Total
Right of use assets at 1 January 2021
1,004
1,606
1,215
133
161
4,119
Additions,
 
remeasurements,
 
cancellations and
divestments
14
300
28
8
78
427
Depreciation and impairment
1)
(316)
(617)
(176)
(72)
(82)
(1,265)
Foreign currency translation effects
(26)
(8)
(12)
0
(5)
(50)
Right of use assets at 31 December 2021
675
1,280
1,055
68
152
3,231
(in USD million)
Drilling rigs
Vessels
Land and
buildings
Storage
facilities
Other
Total
Right of use assets at 1 January 2020
951
1,320
1,365
156
219
4,011
Additions,
 
remeasurements,
 
cancellations and
divestments
380
853
18
45
30
1,326
Depreciation and impairment
1)
(349)
(571)
(179)
(68)
(90)
(1,257)
Foreign currency translation effects
23
4
11
0
2
40
Right of use assets at 31 December 2020
1,004
1,606
1,215
133
161
4,119
1) USD 320 million in 2021 and USD 359
 
million in 2020 of the depreciation cost have been
 
allocated to activities being capitalised. See
 
note
11 Property,
 
plant and equipment.
The Right of use assets are included within the line item Property, plant and equipment in the Consolidated balance sheet. See also
note 11 Property,
 
plant and equipment.