Premier Oil Plc (PMO) , a British oil explorer, said it will develop a smaller portion of its Sea Lion project in the Falklands as it seeks to cut costs. The initial phase will yield 160 million barrels of oil with costs for first output estimated at less than $2 billion, the London-based company said today without specifying earlier estimates for the project. Premier plans to sink a well in March and one in April and will continue to seek a partner, Chief Executive Officer Tony Durrant said in a phone interview. “Following a project review, Sea Lion will now progress initially as a smaller development,” it said in the statement. “The new lower oil price environment and our commitment to maintaining a strong financial position has caused Premier to re-examine the scheme with a view to reducing” the spend prior to first cash flows from the field, it said. […]