North Sea operator Lundin has warned it faces a hike in exploration costs of more than £75million this quarter after drilling four failed wells.
The Danish firm said it had come up dry in two exploration wells in Norway, along with two further ones in Indonesia, with the associated charges to be added to this quarter’s costs.
However, the company said almost half the cost would be offset by tax credits from the Norwegian government.
The cost of drilling the Langlitinden and Torvastad wells came to £43million for the quarter, with tax credits of £34million to balance much of the impact, while a £5.3million credit would offset some of the costs of the projects in Indonesia.