The Press and Journal (Inverness, Highlands, and Islands)
Ithaca revenues boosted
Firm’ s production rises
An Aberdeen-based oil firm has seen revenues boosted as production from its flagship North Sea development ramps up.
Ithaca Energy’s revenue for the third quarter was £56.2million, up from £34million in the same period last year.
But pre-tax losses widened to £13.4million, from £5.2million in the third quarter of 2016.
Profits after tax swung from the red into the black though, thanks to third quarter 2017 earnings of £2.8million.
Ithaca, owned by Israeli firm Delek Group, achieved first oil from the Stella field in the first six months of 2017.
The field is part of the Greater Stella Area (GSA), located about 175miles east of Aberdeen in the central North Sea.
Average production for the year gradually increased as Stella ramped up.
For the three months to the end of September, production equalled 14,300 barrels of oil equivalent (boE) per day – up from 10,000boe in the same period last year.
Ithaca’s unit operating expenditure dropped to £20 per boe, from £23 a year ago, as average oil prices rose by $7 to $51 a barrel.
Year-to-date production has averaged 12,525boe per
”Volumes from the field are expected to be moderately constrained”
day, a 31% increase on the same period in 2016.
Average production during the three months to September 30, 2017, was impacted by a three-week shutdown of the Stella field to allow the final FPF-1 oil export pipeline tie-in works to be completed and the switchover from oil tanker loading to pipeline exports to take place.
Production was also reduced as a consequence of planned maintenance shutdowns commencing on the floating production, storage and offloading facilities serving the Cook and Pierce fields, both of which were completed in October 2017.
Ithaca said: “Following completion of the maintenance shutdown of the host facility serving the Cook field, it has been identified that certain modifications are required to the control systems on the Cook field to operate the well at unrestricted rates.
“Volumes from the field are expected to be moderately constrained for approximately six months while the necessary equipment is procured and installed.
Ithaca is the operator of Stella and Harrier with 54.66% working interests. Harrier is in development, with start-up earmarked for next year.
A field development plan for the BP-operated Vorlich discovery, (in which Ithaca has a 34% stake) is due to be submitted to the UK Oil and Gas Authority in 2018.