The resilience Lundin Energy has shown in the face of the sharpest downturn in the history of the oil industry is a testament to the quality of the asset base.
- Despite very low oil prices, free cash flow was positive from the oil and gas operations in second quarter and over MUSD 380 free cash flow for the six months period,
- Record quarterly production of 162.9 Mboepd in the second quarter,
- Accelerated ramp up and increased phase 1 plateau production at Johan Sverdrup; phase 1 capacity of 470 Mbopd to be tested for further upside, during second half of this year,
- Significant increase in liquidity during the period from cost reductions and phasing, tax incentives and additional debt facilities,
- Continued out performance at Edvard Grieg; increase in reserves and extension of plateau production anticipated,
- Eight potential projects to be accelerated due to recent Norwegian tax incentives, targeting over 120 MMboe of net resources
- Awarded credit rating of ‘BBB-‘ with stable outlook by S&P Global, confirming strength of liquidity and credit position
Alex Schneiter, President and CEO of Lundin Energy said: “The resilience Lundin Energy has shown in the face of the sharpest downturn in the history of the oil industry is a testament to the quality of the asset base, flexibility of our financial resources and operational excellence of the business and our people; this has been further demonstrated by the award of a ‘BBB-‘ credit rating. We generated over MUSD 380 of free cash flow in the period and delivered a positive free cash flow result from the oil and gas operations for the second quarter. This all in a period where we encountered some of the lowest realised pricing we have witnessed, both when taking into account the historic negative dated Brent differential and physical discount; a situation which has now normalised and in fact we are witnessing premiums for our barrels in the market again.”
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