North Energy’s failed wildcats spur more urgent cost cutting

North Energy’s failed wildcats spur more urgent cost cutting

Norway’s North Energy has admitted it is in financial trouble and will need to look at further cost cutting measures. It participated in two wildcats during the second quarter. Both the Zumba and the Haribo drilling prospects proved to be dry.

“The lack of commercial success combined with persistently difficult market conditions mean that North Energy is assessing further cost-cutting measures,” it said in a release to the Oslo Bors.

“Given the difficult market conditions facing the industry and the fact that we’re still seeking our commercial breakthrough, we must as a responsible company consider further measures to reduce costs,” said Knut Sæberg, acting CEO of North Energy.

Earlier in August, the company announced the spudding of a new well on the Tvillingen South prospect in the Norwegian Sea, and a well is expected to be spudded later this year on the Ørnen prospect in the Barents Sea.

“Tvillingen South is a candidate for a possible tie-back to Kristin should a discovery be made, while Ørnen represents a substantial oil prospect in the Barents Sea,” said Sæberg. “We face 11 drill or drop decisions over the coming year, and have indicated some possible wildcats for 2016-17,” he added.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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