Premier Oil defers project development and spending into 2016
Like its peers, Premier Oil has to reduce spending to cope with a halving in oil prices since a peak in June last year that has eaten into revenues.
The group now expects to spend $1.05 billion this year on developing projects and exploration work, nearly $100 million lower than previously expected. It will move into 2016 some spending on projects such as its Sea Lion field in the Falkland Islands.
Next year, its budget is estimated at $650 million, 38% lower than this year mainly due to project completions, Premier said.
The energy company, whose operations stretch from Indonesia to the Falklands, said oil production so far this year had averaged 57,500 barrels per day (bpd), ahead of full-year guidance of 55,000 bpd, which it left unchanged. ■