Premier Slashes 2013 Production Guidance

UK independent Premier Oil has slashed its production guidance for 2013 due to problems with pipelines at projects offshore UK and Vietnam.

Reporting its interim management statement Wednesday, Premier said that it now expected average production for 2013 to come in at between 57,000 and 59,000 barrels of oil equivalent per day (boepd). This compares to a forecast of 63,000 boepd it made in July.

Premier said that production from its Huntington field in the North Sea has been constrained since mid-September following operational issues on the BP-operated CATS gas export pipeline. In Vietnam the Chim Sáo field – which recently reached a milestone of $2 billion of oil revenues – saw gas export interrupted following damage to a flange connecting the Chim Sáo export pipeline to the Nam Con Son Pipeline (NCSP).

Premier said that both issues are expected to be resolved shortly.

At the Huntington field, operator E.ON is working closely with BP to address the issues with production restrictions hopefully being lifted progressively from early November.

At Chim Sáo the leak has been made safe. Premier said that the execution of the repair is under way and, subject to weather, a return to gas export is planned for November.

Premier Chief Executive Simon Lockett commented in a company statement:

"While our oil production is currently restricted by gas export issues in both Vietnam and the UK, this has limited impact on the long term value of those fields.

"Plans are in place to address these issues. In the meantime, we continue to make good progress on our operated development portfolio, on realizing value from pre-development assets and on upgrading the potential of our exploration program."


Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  CNOOC to Drill 126 Exploration Wells i... (Jan 19)
 -  Sound Energy Looks to Buy OGIF's Asset... (Jan 19)
 -  Lundin's Development Expenditure to To... (Jan 19)
 -  The Church of England Conditionally Ba... (Jan 19)
 -  CNOOC Commences Production from Enping... (Jan 18)

Most Popular Articles

From the Career Center
Jobs that may interest you
Pipe Welders
Expertise: Welding
Location: Houston, TX
United States Duncan: Entry Level Machine Operator
Expertise: Heavy Machinery Operator
Location: Duncan, OK
United States Odessa: Field Engineer - Logging and Perforating
Expertise: Field Development
Location: Odessa, TX
search for more jobs

Brent Crude Oil : $53.92/BBL 2.79%
Light Crude Oil : $51.08/BBL 2.66%
Natural Gas : $3.3/MMBtu 3.22%
Updated in last 24 hours