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EnQuest lowers production guidance after slow oil field start-up

Published 08/09/2016, 07:33
Updated 08/09/2016, 07:40
© Reuters.  EnQuest lowers production guidance after slow oil field start-up

LONDON (Reuters) - North Sea-focused oil producer EnQuest lowered its full-year production guidance on Thursday after initial output at its new Alma/Galia field was less than expected.

The London-listed company also said it had reduced gross capital expenditure on its Kraken field in the North Sea by $150 million (112.38 million pounds) to $2.6 billion, squeezing costs to contend with low crude prices. The project remains on track to produce first oil in the first half of next year.

EnQuest also reported a 51 percent rise in first-half profit before tax and net finance costs to $150 million, helped by output that jumped 43 percent year on year.

The increase in production, however, was weaker than expected, prompting the company to lower full-year output guidance to between 42,000 and 44,000 barrels of oil equivalent per day (bpd), down from the 44,000 to 48,000 bpd previously expected.

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