Det norske moves to cut costs. Posts net loss for 3Q
- Business & Finance
Norway’s Det norske oljeselskap reported a net loss of $166 million in the third quarter 2015, compared to a net loss of $17 million in the third quarter of 2014.
Revenues were $281 million in the third quarter of 2015, compared to $18 million in the third quarter of 2014.
The Norwegian independent oil company said in its third quarter 2015 report it was aiming to further reduce costs, and improve efficiency, in order to achieve run-rate savings in the years to come.
Production for 2015 is expected to average approximately 62 mboepd, capital expenditure is expected to be approximately $925 million and exploration expenditure is expected to be around $95 million. Production cost is expected to average approximately $6.5 per barrel of oil equivalent.
CEO Karl Johnny Hersvik said: “With available liquidity of about $1.7 billion, the company has a robust financing in place and has secured funding for its work program until first oil at Johan Sverdrup.”
Det norske is a partner in the giant Johan Sverdrup development project in the Norwegian sector of the North Sea. The partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
Statoil, the operator of the project, recently announced cost reductions of seven percent for the field development.
Offshore Energy Today Staff