In 2021 Equinor paid US$8.9 billion in corporate tax to authorities. Through the tax contribution report, Equinor seeks to increase transparency on tax payments and principles.
Torgrim Reitan, CFO, said: “Equinor is dedicated to contributing to progress for societies, and paying the right tax where value is created is an important part of this commitment. We delivered strong earnings for 2021 and are hence able to contribute to society with larger tax payments.”
In 2021, the Equinor group paid US$8.9 billion in corporate income taxes and US$2.9 billion in royalty payments and fees to local and national governments including host entitlement. US$8.3 billion of the total amount was paid in Norway, where Equinor has the largest share of its operations and earnings.
In 2021 Equinor delivered excellent operational performance and increased production. Combined with higher prices for both gas and liquids, this resulted in stronger earnings. Tax payments for 2021 was considerably higher than for 2020, a year impacted by the global pandemic leading to relatively low commodity prices.
For 2021 Equinor paid close to US$1 billion in environmental taxes and fees, including CO2 quotas. Taxes on emissions has increased over the years and are incentivising emissions reductions.
Torgrim Reitan said: “Carbon pricing is a key enabler of the energy transition. A price on carbon encourages emitters to reduce their greenhouse gas emissions. The early adoption of CO2 taxes in Norway has incentivised Equinor to keep reducing emissions from our oil and gas operations.”
The tax contribution report complements other publications and disclosures such as Equinor’s Annual Report including Payments to Governments report and Sustainability Report.
Read the article online at: https://www.oilfieldtechnology.com/digital-oilfield/18102022/equinor-publishes-tax-contribution-report/
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