STOCKHOLM, Sweden, Jan. 29 (UPI) -- Swedish energy company Lundin Petroleum said it expected a strong production performance under a disciplined spending plan in the market downturn.
"More than ever in this challenging oil price environment, a strong focus on operational efficiency, production performance and cost discipline will be in the forefront of our minds," Lundin President and CEO Alex Schneiter said in a statement.
Lundin announced its 2016 spending plan for exploration and appraisable activity would be 64 percent less than last year at $145 million. Spending on development projects of $935 million represents a 12 percent decrease from the previous year.
Lundin has been among those struggling through the market downturn. It left 2014 with $758.2 million in revenue, 33 percent less than the previous year. Revenues for the first half of 2015 were down nearly 40 percent year-on-year.
In mid-January, Norwegian energy company Statoil spent $538 million to acquire an 11.9 percent in Lundin. Schneiter said the acquisition was a "vote of confidence" for development plans on the Norwegian continental shelf.
Schneiter said most of the capital spending plan would focus on development at the Edvard Grieg and Johan Sverdrup fields off the Norwegian coast.
"Both projects will drive significant production growth in the coming years," the company said.
Expected output for Lundin is about twice as much as the average rate from 2015.