Maersk Oil has reduced the costs of its Culzean project by $500million.
The firm said the savings had been made from higher drilling efficiency and project planning.
The costs for the Culzean project are now expected to be around $4billion.
At Maersk’s Group Capital Markets day in Copenhagen, chief executive Gretchen Watkins said a significant improvement of project capex had been achieved in close collaboration with partners, suppliers and the authorities.
The present breakeven estimate for the project no stands at $33 per barrel of oil equivalent.
Watkins said:”This updated forecast reflects Maersk Oil’s commitment to world class project execution and our aim to continually improve our major capital projects, together with our partners and suppliers.
“Achieving cost reduction of 11% during project maturation, we are showing our ability to deliver greater value for investors and stakeholders through effective project delivery and controls.”
The Culzean project was approved by the Oil & Gas Authority (OGA) in August last year.
Since then, Maersk Oil and its co-venturers BP and JX Nippon have worked together and with suppliers to improve the project.
The project remains on schedule to deliver first production in 2019.
Watkins added: “Improvement is largely driven by pulling the levers within our control to enhance Culzean’s project economics.
“Together with our position in the Statoil-operated Johan Sverdrup field development, Maersk Oil is committed to delivering the next generation of significant North Sea developments.”
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