Oil company Det norske oljeselskap has increased its production guidance for 2016 based on stronger than expected production from the Alvheim area located in the North Sea.
Det norske oljeselskap is the operator of the Alvheim field with 65% working interest. Partners in the license are ConocoPhillips with a 20%, and Lundin Norway with 15% interest.
According to Det norske’s statement on Wednesday, the company’s production, excluding the effect of the proposed merger with BP Norge, is expected to average between 62 and 65 thousand barrels of oil equivalents per day (mboepd) in 2016, up from a previous guidance of 55 to 60 mboepd.
Det norske’s production cost, excluding the effect of the proposed merger with BP Norge, for 2016 is expected to be around USD 7.0 per barrel of oil equivalent (boe), lowered from a previous guidance of 8.0 to 9.0 USD/boe.
No changes have been made to the company’s guidance for 2016 CAPEX and EXPEX.
Det norske in July experienced a hydrocarbon leak in the pump room aboard the Alvheim floating production, storage and offloading (FPSO) unit causing a stop in production.
The crew on board stopped the leak after a short period of time and there was no discharge into the Sea in connection with the incident.