Premier Oil looks to cut £2.1bn debts as Catcher field comes in on time

SHARES in Premier Oil closed 3.3pc up after its North Sea-based Catcher project produced its first oil on schedule.

Premier hopes its new site will be able to deliver 60,000 barrels per day, helping it to reduce its mammoth debt pile, which stood at $2.8bn (£2.1bn) as of Sept 30.

There were fears among some City commentators that the oil producer could struggle to deliver the project on schedule as fierce weather made operating offshore more difficult.

But chief executive Tony Durrant said it came in on time and almost 30pc under budget. He added: “As production ramps up in the first half of 2018, the increased cash flows will play an important role in Premier’s plans for debt reduction. The Catcher Area project also demonstrates Premier’s continuing commitment to invest in the UK.”

The first Catcher field was discovered in 2010 and the project was approved by the Government in 2014. Initial production is expected to be around 10,000 barrels per day, which will be ramped up in the coming weeks.

Catcher is around 175km (108 miles) off the coast of Aberdeen and is jointly op- erated by Premier, which owns 50pc of the project, Cairn, MOL and Dyas.

North Sea producers were rocked earlier this month when the crucial Forties pipeline was closed after the discovery of a widening crack, which sent crude oil prices soaring.

On Monday the pipeline’s owner Ineos said it had completed repairs and was test- ing the pipeline, with full flows expected to resume in early January.

Shares in Premier Oil closed at 78.75p.