Lundin Petroleum oil platform at Gotha deposit in the Barents sea. Photo: Pi Fresh
On the whole came Lundin Petroleum over analysts’ expectations. But the result is strongly affected by a foreign exchange loss of $ 63.5 million due to a stronger dollar and landed at minus $ 47.1 million, against analysts’ expectations of minus $ 14.4 million.
– Ironically, it is positive for Lundin Petroleum with a strong dollar. But in the second quarter, a reassessment of our loans that affect our balance, says Lundin’s CEO Alex Schneiter SvD Business, on the phone from Geneva where management sits.
– Looking at the first half we made a profit $ 66 million during a period when the oil price was 40 dollars per barrel on average, he points out.
the price of oil on at the end of the first half had climbed to $ 52 per barrel for the last few weeks again fall to the current $ 42 per barrel, showing that it still takes until the market balanced.
– But according to the latest report from research firm Wood Mackenzie has oil projects corresponding to four million barrels per day set. It will finally lift oil prices again, said Alex Schneiter.
Looking only on the factors that Lundin Petroleum have control over is not much to criticize. Production of oil and natural gas more than doubled from the second quarter of 2015 to the same period this year, from 28.9 million barrels of oil equivalent per day to 63.9. This meant that revenue increased from $ 157.8 million to $ 265.3 million.
Most of the production now comes from the Norwegian Edvard Grieg field that continues to surprise positively.
– our total production is about 15 percent higher than the midpoint of our guidance range, said Alex Schneiter.
Lundin Petroleum already owned 50 percent of Edvard Grieg, but from July 1 took over the company Statoil 15 percent of the field. The company’s production will therefore increase by a similar proportion. Meanwhile, Statoil a stake of 20 per cent of Lundin Petroleum.
Even the giant project Johan Sverdrup everything goes according to plan and Alex Schneiter expect that there will be additional cost reductions when Statoil, as operator, will present the final plans for the second phase of the field in the second half.
a few days ago also launched Lundin drilling season in the Barents sea, where the three holes will be drilled by the rig Leiv Eriksson. Two of them are to further determine how big the resources are in Alta and Neiden, two fields that have already been found, while the third hole is in a hitherto undrilled omårde called Filicudi and where Lundin has a 35 percent share.
– We contracted the rig when prices were at the very lowest level, and can drill a further six holes with it. We pay 160 000 dollars per day, against the previous $ 500 000 per day, says Alex Schneiter.
Lundin Petroleum is one of the few oil companies in the world, the number of employees. The Norwegian subsidiary now has 350 employees. While approaching the number of jobs that have been cut away in the Norwegian oil industry 40,000.
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