Andalas Energy and Power plc (formerly CEB Resources) is positioning itself to be profitable in today’s lower oil price environment, according to the company’s newly appointed non-executive director, Paul Warwick.
In an interview with Rigzone, Warwick, who retired as Talisman Energy Inc’s executive vice president and executive director for Europe, the Middle East and Africa in September, said:
“In realistic low oil prices…we intend to have a positive margin…We’re going to do this so that there is always that positive margin there in today’s environment, not based upon a somewhat rosy view of future oil prices. If the price does go up, it’s even better.
“There are merchant banks out there who say that the oil price could go to a sustainable $30 [per barrel]. You have to take cognizance of that. If you live in the world of probability and you say there’s somebody there saying it’s going to be $30, it’s going to be lower…so you have to be positioning yourself so that you’re not just saying ‘oh well we can only make this work at $35 but we think it will all be ok’. You have to give yourself the basis of the portfolio that makes you money and then you have to be able to be very disciplined with your capital expenditure.”
Warwick was appointed to the Andalas board Dec. 8. Prior to this position he has held a number of senior level executive positions with ConocoPhillips in Indonesia, the Middle East, Europe and Africa.
Previously an investment company in the mining sector, with a primary focus on Australia, CEB Resources plc has transformed into a new energy firm over the past few months. The company hired David Whitby as its CEO June 5, shifting its attention to oil and gas opportunities in Indonesia in the process.
Andalas is now focusing specifically on onshore oil and gas projects in Sumatra and its newly-updated team has 250 years of collective experience in the oil and gas industry and has collectively worked in Indonesia – which holds oil and gas reserves of 3.7 billion barrels and 101.5 trillion cubic feet, respectively, according to BP plc's latest Statistical Review of World Energy – for over 70 years.
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