Talisman Energy said yesterday its average production from UK waters dipped to 86,000 barrels of oil equivalent per day (boepd) in the first quarter.
The Canadian oil and gas operator which has interests in the UK North Sea, said this was down 20% year-on-year, with the majority of the decrease because of the shutdown of a producing well on its Tweedsmuir field to allow well intervention work.
The company said the work was completed early last month and the well was now back on stream.
The company also said it spent about £70million in the UK during the quarter, with around 75% of that on the Auk North, Auk South and Burghley projects.
Talisman UK senior vice-president John Forrest said: “We have significantly increased our UK North Sea development spending in 2010 with the Burghley, Auk North and Auk South projects all under way.
“Extending field and asset life is a key element of our strategic plan for the UKCS.”
The Auk North development is on schedule for first oil next year and Auk South should follow in 2012. Burghley is expected to come on stream in the fourth quarter of this year.
Reporting financial and operating results for the quarter to March 31, Talisman said production during the period averaged 435,000boepd compared to 450,000boepd the year before. Its guidance for the full year is an average of just above 400,000boepd.
Chief executive John Manzoni said that capital investment for the year was projected to be around £3billion, below initial guidance of £3.2billion due to exchange rate impacts.
Talisman reported net income of £148million for the first quarter, down from £295million a year earlier. Revenue for the period was £1.18billion, up from £965million the year before.
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