Category: Falklands

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. […]

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LONDON— Premier Oil PLC has held discussions with companies interested in buying a stake in its Sea Lion project in the Falkland Islands, newly appointed Chief Executive Tony Durrant said Thursday. The U.K.-listed oil and gas explorer, which wants to reduce its exposure to the $5.2 billion project, aims to launch the formal sale process in the fourth quarter and to have sold the stake by the middle of next year, when it also plans to take the final investment decision on the development. "We don’t have any doubts about the project, but we currently have a 60% interest and it makes sense for us to bring in a partner," said Mr. Durrant, who stepped up from his role as finance director to CEO of Premier in late June. Premier is looking to sell a 20% to 30% stake in the project. He said there was "significant interest" in […]

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