Norway's Det norske oljeselskap said Wednesday that measures taken to reduce costs have enabled it to sanction new standalone projects that work at an oil price of below $40 per barrel.
Reporting its fourth-quarter results for 2015, Det norske quoted its CEO Karl Johnny Hersvisk saying:
"We acquired the Norwegian subsidiaries of Svenska Petroleum and Premier Oil during the fourth quarter, confirming our growth strategy at the Norwegian Continental Shelf. In addition, we implemented improvement measures to reduce expenditures across all disciplines to enable us to sanction new stand-alone projects at break-even prices below $40 per barrel."
Det norske revealed that its total operating income came to $255 million during 4Q 2015 (4Q 2014: $346 million) and that its average production amounted to 53,996 barrels of oil equivalent per day (4Q 2014: 54,175 boepd). Profit at the EBITDA level came in lower at $208 million (4Q 2014: $239 million, although the firm's net loss was reduced to $156 million (4Q 2014: 287 million loss).
Hersvik added in the firm's results statement:
"The Ivar Aasen project is progressing well and remains on plan and budget for first oil in 4Q 2016. Sail away for the topside from Singapore is scheduled for May and offshore lifting operations in July. The Johan Sverdrup project is moving forward according to plan and the Det norske sees potential for further cost reductions."
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