Premier Oil Boosts 2019 Output Guidance

UK independent Premier Oil boosted its 2019 production guidance May 16.

Total output for the year is now forecast at 75,000-80,000 boe/day, Premier said in a trading update, after year to date production data outperformed.

Production in the first four months of the year exceeded expectations, averaging 85,100 boe/day, the company said. Improved efficiency and an unbudgeted contribution from assets in Pakistan, which have now been sold, were the main contributors.

The London-listed company’s output was buoyed by its flagship Catcher field in the British North Sea. Overall UK production rose 47% year on year in the first quarter of 2019 to average 57,400 boe/day.

Premier also said its Asian assets performed well. In Vietnam, the Premier-operated Chim Sao field averaged 12,500 boe/day (Premier 53.1%), which was ahead of forecast. The Natuna Sea Block A, from which Premier delivers gas via a pipeline to Singapore, has captured a 52% market share of its principal gas contract year to date, against a contractual share of 51.2%.

However, the company also noted that production from the project dropped year on year due to competition from cheaper LNG. Indonesian output fell to 11,800 boe/day from 13,900 boe/day in Q1 2018.

Nevertheless, Premier also announced it expects to start gas production at three further Indonesian offshore fields: BIG-P – Bison, Iguana and Gajah Puteri, by the end of the year.

Meanwhile, Premier remains optimistic over its exploration efforts in Mexico. It said it now expects gross output at the Zama discovery to push to 175,000 boe/day.