Premier Oil Cuts More Debt than Forecast

January 10, 2019

(Photo: Mike Abrahams, Premier Oil)
(Photo: Mike Abrahams, Premier Oil)

Britain's Premier Oil cut debt to $2.3 billion at the end of 2018, below a previous forecast of $2.4 billion, it said in a trading update on Thursday.

Premier's full-year production of 80,500 barrels of oil equivalent per day (boepd) came in slightly above its guidance and was up 7 percent from its 2017 output.

For this year, Premier, which has been selling producing assets, sees output at around 75,000 boepd.

Premier estimates its revenue for last year at $1.4 billion, more than a quarter higher than in 2017 on the back of higher production as well as higher prices.

Premier has been hedging large chunks of its production, including around 36 percent at an average of $70 a barrel through the year. Oil prices are currently around $60 a barrel.

"On a full year basis, Premier expects to generate positive free cash flow at oil prices above $45 (a barrel) during 2019," Premier said.

It sees operating costs to rise to around $20 a barrel from $16.90 in 2018, reflecting the sale of low-cost gas producing fields.

Premier, whose bottom line still profits from tax loss allowances, is set to spend around $290 million on development and exploration, including its wells in Mexico's Zama field.


(Additional reporting by Arathy S Nair; editing by David Goodman and Jason Neely)

Categories: Finance Oil Natural Gas

Current News

Fugro to Mobilize Edda Sun for IRM Work

Fugro to Mobilize Edda Sun for IRM Work

Saipem Wins EPIC Work from Saudi Aramco

Saipem Wins EPIC Work from Saudi Aramco

Schlumberger to Manage Equinor Project in Brazil

Schlumberger to Manage Equinor Project in Brazil

BP Goes Global with Seismic Tech

BP Goes Global with Seismic Tech

Shell to Pick Either Onesubsea or TFMC for Ormen Lange Phase 3

Shell to Pick Either Onesubsea or TFMC for Ormen Lange Phase 3

Safer Than Other Industries

Safer Than Other Industries

Schlumberger Sees International Growth in 2019

Schlumberger Sees International Growth in 2019

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week