– The lower earnings are below our own expectations, and is primarily due to low oil prices. And we have been forced to revise down our production forecast, says Heppenstall.
The company lowers its forecast for the full year of production from at least 41,000 to 32,000 barrels oil equivalent per day. Although it is well below what the market expected.
– The reduced production in oil field Brynhild accounts for half of the decline, says Ashley Heppenstall.
Brynhild suffered technical problems in the spring.
But Lundin hope after all reach 75,000 barrels per day by the end of the year, when oil field Edvard Grieg put into production.
And in the long term is Lundin strong, according to CEO.
– The market tends to focus on short-term events. But Lundin Petroleum shares have been among those who have developed the very best for the last eight months. It is due to our strong balance sheet and our strong assets, says Heppenstall.
He stresses Lundin stake in the new huge, Norwegian oil field Johan Sverdrup to begin producing oil in 2019. Johan Sverdrup field should help triple Lundin’s production capacity, according to Lundin Petroleum’s CEO.
But the low price of oil puts understood limits.
– I wish I knew when it rises again. But the low price due to an overproduction that is relatively small. And the oil industry investments falls. It does not take much for the pendulum will swing the other way.
The oil must crowded out by increasing wind power and other renewable energy sources do not Ashley Heppenstall on.
– We know no competition there. No one at all. The world needs oil.
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