Atlantic reins in North Sea capex

Offshore staff

TORSHAVN, Faroe IslandsAtlantic Petroleum has budgeted total capex next year of around DKK 110 million ($18.4 million).

Of this, DKK 80-85 million ($13.4-$14.2 million) is related to production and development, mainly for the Orlando field tieback to the Ninian complex in the UK northern North Sea.

Due to oil price pressures, the company plans to scale back its near-term exploration activities, with capex for 2015 of around DKK 25-30 million ($4.2-5 million), down 75% from 2014.

CEO Ben Arabo said: “We are adapting to the market situation and are cutting costs in 2015 where we can. We are deferring near-term investments without compromising Orlando first oil in late 2016. Atlantic Petroleum is entering 2015 with a good cash position and low debt which is a strength in these uncertain times…

“With the recent discovery of a high-value gas asset (Pegasus West in the UK southern North Sea), we have improved commercial flexibility to capitalize on the value should we decide to do so.”

12/17/2014

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