LONDON, Nov 13 (Reuters) - Oil and gas explorer Premier Oil has scaled back its Sea Lion oil field project north of the Falkland Islands as weak oil prices have put pressure on the company to cut costs.
The London-listed oil firm now plans to develop fewer wells at the site for less than the initally targeted $2 billion project capital expenditure.
“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 capex,” the company said in its third-quarter results statement.
The smaller project is expected to recover 160 million barrels of oil in 15 years, Premier Oil said.
The energy firm also maintained its full-year production guidance at the upper end of of 58,000-63,000 barrels of oil, despite previous indication it may raise its forecast on the back of higher-than-forecast production earlier this year. (Reporting by Karolin Schaps; editing by David Clarke)