Talisman Energy said yesterday it had decelerated its spending on some projects in the UK North Sea to take advantage of a slowdown in the contracting environment.
Announcing capital spending plans for 2009, the Canadian oil and gas operator said North Sea development spending was focused on projects at Yme in Norway, in addition to the Burghley development and the Auk North and South re- development in the UK.
It also said that it would delay some planned asset sales in the UK, while its objective remained to establish the UK as a long-term, high-quality generator of free cash flow.
The company has budgeted for global exploration and development spending of about £2billion this year and plans to fund these capital programmes from cash flow and disposal proceeds.
It said its capital spending was focused on North America (33%), North Sea development (27%), south-east Asia growth projects (19%), international exploration (18%, including North Sea and south-east Asia exploration), with the remaining 3% allocated for the rest of the world.
Of the total, about £418million will be spent in the UK and £350million in Norway.
About £131million will be spent on North Sea exploration drilling, which will include two wells to follow up on the Cayley discovery in British waters.
Talisman also said it saw 2009 production at around 430,000 barrels of oil equivalent per day, about the same as last year.
Chief executive John Manzoni said: “Talisman enters 2009 with a strong balance sheet and a lot of flexibility. I am confident we will exit the year with the company even better positioned for sustainable growth and value creation.”
Talisman and its subsidiaries have principal operations in North America, the North Sea, south-east Asia and north Africa.