Centrica lowers capex despite offshore Norway growth

Offshore staff

WINDSOR, UKCentrica Energy anticipates E&P capex this year of around £500 million ($715 million), down from £728 million ($1.042 billion) in 2015.

In the current price environment the company is looking to minimize costs, including exploration, focusing more on maintaining and optimizing production from its existing facilities and on completing committed development projects.

These include Cygnus in the UK southern North Sea, due onstream during the first half of this year, and Maria in the Norwegian Sea, set to produce first oil in 2018.

At the end of last year Centrica Energy’s proven and probable (2P) reserves were 528 MMboe, 10% lower than in 2014.

The company’s Norwegian production increased by 16% last year, due to consistently strong contributions from the Kvitebjorn and Statfjord fields and start-up of Valemon, all in the North Sea.

However, UK and Dutch gas production decreased by 14%, reflecting the decline of producing fields and an extended maintenance shutdown at Morecambe in the Irish Sea.

02/18/2016

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