Maersk Oil has slashed $500 million off the capital cost of its flagship Culzean high-pressure/high-temperature (HPHT) project in the UK North Sea.
A presentation published to accompany the Danish operator’s capital markets day, held in Copenhagen on Tuesday, revealed that capital expenditure on Culzean is now expected to be $4 billion, down 11% from earlier forecasts of $4.5 billion.
The presentation also showed the expected breakeven cost for the project now stands at $33 per barrel of oil equivalent, well below a forward product price of $39 per boe.
A
