Premier Oil to begin production at North Sea Catcher in December

Ladol

Premier Oil’s has confirmed that flagship North Sea development the Catcher field is due for first oil next month. The company made this know while announcing that its production has averaged 76.6 kboepd year-to-date and the company said it is on track to meet its previously increased full year guidance of 75-80 kboepd.

The planned third quarter maintenance has now been completed. The group’s disposal programme is ongoing, including sale of Wytch Farm field for $200 million.

Operating costs for the full year are forecast to be around $16/bbl with a gross G&A of $150 million, while development, exploration and abandonment expenditure is expected to be $300-310 million, down from previous guidance of $325 million.

Net debt was $2.8 billion at 30 September.

Tony Durrant, chief executive, said: “Through strong production, cost control and disposal activity, cash generation is ahead of plan.

“The excellent progress on the Catcher project, combined with the recovering oil price, will accelerate debt reduction through 2018.

“The agreement to export Tuna gas to Vietnam, signed last week, adds to Premier’s significant backlog of future growth opportunities.”