STOCKHOLM, Sweden, Aug. 5 (UPI) -- Swedish energy company Lundin Petroleum said Wednesday it was cutting its production guidance for the year, but expects a rebound in the years ahead.
Lundin said it revised its production guidance lower to 32,000 barrels of oil equivalents per day as a result of less than expected output from the Brynhild filed off the coast of Norway and infrastructure delays for its Edvard Grieg rig.
The company in February posted its full-year 2014 report, saying revenue of $758.2 million was 33 percent less than full-year 2013. The decline followed precedent established by the company's peers, who've announced staffing and spending cutbacks for 2015 because of low crude oil prices.
Revenue for the first half of the year was $279 million, down nearly 40 percent year-on-year.
Lundin nonetheless increased its stake in the Johan Sverdrup oil field off the coast of Norway last month. Peak production is expected to be as high as 650,000 barrels of oil equivalent per day, making it one of the largest prospects on the Norwegian continental shelf.
President and Chief Executive Officer C. Ashley Heppenstall said Johan Sverdrup and future cost operations below $10 per barrel of oil should position the company for future growth.
"I announced recently that after 13 years as president and CEO of Lundin Petroleum I would be stepping down from executive duties with the company so this will be my last letter to shareholders," he said."The company is in excellent health, has a great management team, a clear strategy and strong liquidity."
Alex Schneiter takes over from Heppenstall.