Lundin back to black as record production boosts revenues

Sweden-based independent oil company Lundin Petroleum returned to profit during the third quarter this year after achieving a record high production that gave its revenues a boost. 

Lundin’s profit for this year’s third quarter was $173.8 million, including a net foreign exchange gain of $135.8 million, compared to a loss of $201.6 million in 3Q 2015 and a net foreign exchange loss of $201.4 million.

The company’s revenues more than doubled totaling $317.4 million compared to revenues of $154.2 million in the corresponding quarter last year.

Further, Lundin achieved production of 80.4 thousand barrels of oil equivalents per day (Mboepd) during the quarter in contrast to 36.0 Mboepd in the same period last year.

Alex Schneiter, President and CEO, “We remain firmly on track to achieve our full year production guidance and given the strong performance we are revising our guidance to between 70,000 and 75,000 boepd from between 65,000 and 75,000 boepd.

“The third quarter average production of 80,400 boepd was a record high for the company with corresponding cash operating costs falling to $7.20 per barrel, a record low for the company. We expect to maintain strong production and low operating costs going forward given that Edvard Grieg is planned to reach its plateau production of 100,000 boepd by the time the fourth producer comes onstream towards year end.”

On the exploration and appraisal front in the southern Barents Sea, the company completed the Alta 3 appraisal well during the third quarter and the Neiden exploration well is ongoing. This will be followed by the drilling of the Filicudi exploration well during the fourth quarter.

Lundin’s 2017 exploration and appraisal campaign will encompass four exploration wells and four appraisal wells with drilling in southern and eastern Barents Sea, the Utsira High area and the Alvheim area.

Offshore Energy Today Staff

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Posted on November 2, 2016 with tags , .

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