The vessel for the North Sea Catcher field has left its yard in Singapore and is expected to depart for the UK “imminently”, Premier Oil said today.
The London-listed oil producer also said it had achieved record output levels in the first half of 2017, while lowering UK operating costs to $19.9 per barrel from $31.
Furthermore, the company has announced plans for an infrastructure partnership on its UK North Sea Tolmount development.
Premier said the Catcher FPSO set sail from the Keppel shipyard on August 10 and is currently undergoing commissioning operations at deep-water anchorage off Singapore before heading to the North Sea.
The company said it was still on track to deliver first oil from Catcher later this year.
The firm also said it had raised its full-year production forecast to a range of 75,000 to 80,000 barrels of oil per day, up from 75,000 previously.
First-half production jumped 34.5% year-on-year to 82,100 barrels per day driven by strong performance from existing assets and a full period of contribution from the former E.ON assets Premier bought in the UK last year.
Output from Premier’s UK fields more than doubled to 45,600 barrels per day. First oil from Catcher, about 110 miles east of Aberdeen, will give Premier another shot in the arm.
But production from the Solan field was below expectations as a problem with a pump led to a shut-in in February.
Solan started producing in April 2016 after being beset by lengthy delays.
Turning to Tolmount, Premier said it had signed a head of terms agreement with Dana Petroleum and CATS Management. They will build and own the platform and export pipeline for the southern North Sea field, as well as carrying out modifications at the Dimlington terminal.
Premier’s revenues in the first six months of 2017 totalled £426.8million, an increase of almost 50%.
But the company still sank to pre-tax losses of £2.8million, down from a surplus of £77.6million in H1 2016.
Since the period under review ended, Premier completed its long, drawn-out refinancing and revealed a significant discovery offshore Mexico.
The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico’s history. Premier holds a 25% interest in the block, which is thought to hold more than 1billion barrels.
The business has also agreed the sale of its entire 33.8% interest in Wytch Farm field for £156million.
Premier chief executive Tony Durrant said: “We continue to deliver excellent operational performance, which will drive free cash flow and the reduction of net debt.
“The first half saw good progress on the Catcher and Tolmount projects, a world class exploration success in Mexico and the acceleration of cash flow from disposals.
“Following the successful completion of our refinancing, we are ahead of plans to restore financial strength while progressing a number of exciting projects for future growth.”
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