Ithaca Energy has confirmed that it will need to slash its investment budget for the current year by up to 60pc of 2014’s spend, due to the low market value of Brent Crude. The North Sea operator has said that its CAPEX for the current calendar year will be around £99 million, with 66pc of the budget relating to the Greater Stella Area development, due to begin production before year end.
A spokesman said that the company expected to fund the programme on annualised basis through operational cash flow derived from Ithaca’s asset portfolio and the assets that were currently producing within it. The figures are based on the current price of Brent Crude and have been adjusted to reflect hedging measures put in place against oil price movements.
Oil companies worldwide are currently slashing their investment plans after the price of oil plummeted following a glut in supply.Last updated on 11:49AM - 17/01/15