Oil and gas firm Premier Oil said yesterday first output on two North Sea projects had slipped, delaying a production target.
The firm, which operates its North Sea business out of Aberdeen, had hoped to reach 75,000 barrels of oil equivalent per day by the year-end, but first production on the E.on E&P UK-operated Huntington gas development and Endeavour International-operated Rochelle development, have both slipped into the first quarter of 2013.
Issues over helicopter logistics caused by last month’s ditching had also caused delays to a return to full production on the Balmoral floating production vessel, it said.
Despite this, the firm said its UK assets were performing well and that its west-of-Shetland Solan project was still on target to come on stream in 2014. Premier said it was planning to drill 16 wells targeting 200,000 barrels of oil equivalent between now and the end of next year, with three of those in the North Sea.
Projects at Dua, in Vietnam and Pelikan and Naga, in Indonesia would also help it to reach a “medium-term objective of 100,000 barrels of oil equivalent per day”.
Earlier this year the firm agreed to buy 60% of Rockhopper Exploration’s interests in the Falklands, a move which saw it take over operatorship of the Sea Lion project.
It is also a partner in a consortium taking part in a Teesside carbon-capture and storage commercialisation project, which could involve the use of CO2 for enhanced oil recovery.
Premier chief executive Simon Lockett said: “Our producing fields are performing well and our development projects are moving forward. This will bring rising cash flows and strong financial returns.
“We have added material new plays to our exploration portfolio, particularly in Vietnam, the Falkland Islands and Iraq, and are looking to participate in an innovative project to access significant remaining reserves in the UK North Sea.”
Oil and gas explorer Serica Energy is hopeful of getting development approval for its Columbus field in the North Sea.
Serica said the Department of Energy and Climate Change was happy with its plans, subject to it having the cash to finance the two-well development.
It is to be tied back to the BG-operated Lomond platform via subsea pipelines and a new minimum-facility platform connected to Lomond by a bridge.
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