Det norske posts drop in revenue. Cuts capex

Det norske oljeselskap reported a decline in its second quarter 2016 revenues. Revenues were $256 million, down from $322 million a year ago.

Net profit was for the quarter was $6 million, down from $7 million a year ago.

The Norwegian oil company, which in June announced a deal to merge with BP’s Norwegian subsidiary BP Norge – creating Aker BP – said its production was 62.440 barrels of oil equivalent per day, realizing an average oil price of $49 per barrel.

The closing of the integration of the two companies is expected to occur late in 3Q 2016, subject to regulatory approvals.

Providing outlook for the remainder of the year, Det norske (excluding BP Norge) expects 2016 capital expenditures in the range of $900 – $920 million, a reduction from the previous range due to project cost savings.

Exploration expenditures are expected to be $200 – $220 million, an increase due to added number of wells.

Production guidance for 2016 is reiterated between 55 and 60 mboepd and production cost is expected to average in the range 8 to 9 USD per barrel of oil equivalent.

“The second quarter has together with stable, safe and efficient operations, been characterized by high activity in the business development area. With the agreement to merge with BP Norge AS and the award of three licenses in the 23rd licensing round, we are moving towards our goal of becoming a leading independent offshore E&P company”, CEO Karl Johnny Hersvik said.

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