Troubled Norwegian oil firm Noreco saw second quarter losses widen as the loss of its entire production output due to technical problems took its toll.
The company, which saw two directors quit last week, made a 504million krone ($83.3million) loss in the second quarter of 2013, compared to an 87million krone loss the previous year.
Problems at the Huntington, Oselvar, Cecilie, Nini and Nini East fields – which left the company with no production output at one point last month – saw Noreco take a 487million krone hit.
The Oselvar field, which shut-in due to problems on the Ula platform, is due to start-up again next month, as is the shut-in Danish fields which were forced to stop production because of new problems with the Siri platform.
Lower than expected oil prices also impacted on the company’s balance sheet.
Despite those woes, however, the company still managed to increase production year on year, helped by the start-up of the Huntington field, reaching an average of 4561boed, compared to 4225boed the previous year.
Noreco admitted it was banking on the Huntington field to fund future exploration and its loan repayments.
“The production level from Noreco’s field assets, of which Huntington is of great importance, is expected to provide substantial cash flows going forward,” the company said.
“These cash inflows will be very important to ensure an overall satisfactory financing solution.”
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