Det norske tightens its losses in 4Q

Det norske, an oil exploration and development company focusing on the Norwegian Continental Shelf, has narrowed its loss in the fourth quarter of 2015 when compared with the same period in the year before. 

Det norske’s net loss for the fourth quarter of 2015 was $156 million, versus $287 million loss in the corresponding period in 2014.

Further, Det norske reported revenues of $255  million in the fourth quarter of 2015, as opposed to $346 million in the 4Q 2014.

The company’s production in the period was 54.0 thousand barrels of oil equivalent per day, realizing an average oil price of $45 per barrel, versus $74 per barrel in the 4Q 2014.

Recognizing the continued low oil price environment, the company said it was taking steps to strengthen its business to adapt to current market conditions and aims to utilize the current macro environment to strengthen its long-term competitiveness.

“Improvement measures have been implemented to reduce expenditures across all disciplines to enable us to sanction new stand-alone projects at break-even prices below 40 USD/boe,” Det norske added.

According to Det norske, the company’s production for 2016 is expected to be between 55 and 60 mboepd. CAPEX is expected to be between $925 and $975 million and exploration expenditures is expected between $160 and $170 million. Det norske’s CAPEX in 2015 was $877 million.

Production cost is expected to average in the range 8 to 9 USD per barrel of oil equivalent.

Offshore Energy Today Staff