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Top UK North Sea Oil Producer Increases Output Forecast

by Krystal

Harbour Energy, the largest oil producer in the UK North Sea, raised its production forecast for 2024 on Thursday. The increase reflects the addition of upstream assets from Wintershall Dea, which the company acquired earlier this year.

In early September, Harbour Energy finalized the $11 billion purchase of Wintershall Dea’s asset portfolio, which includes nearly all of Wintershall Dea AG’s upstream assets. At that time, Harbour Energy had projected its 2024 production to range between 250,000 and 265,000 barrels of oil equivalent per day (boepd). However, in today’s trading and operations update, the company revised its forecast, narrowing the range upward to 255,000 to 265,000 boepd.

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The company also confirmed its operating cost guidance for 2024, which is expected to be between $16 and $17 per barrel of oil equivalent (boe). This guidance reflects the inclusion of Wintershall Dea’s lower-cost assets and the anticipated increase in production during the fourth quarter. For the first nine months of the year, Harbour Energy’s operating costs averaged $19.50 per boe.

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In addition to its production update, Harbour Energy reported a new oil discovery at the Gilderoy field in the UK North Sea. The field is located near the Greater Britannia infrastructure, which is operated by Harbour Energy.

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Despite these positive developments, Harbour Energy, along with other operators in the UK North Sea, has been considering scaling back its British operations. This is due to the recent increase in the UK’s windfall tax on oil and gas producers, which has risen to 38% and been extended until 2030. The uncertain regulatory environment over the past two years has contributed to a decline in investments in the basin, according to industry reports.

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There are also reports that Harbour Energy is planning to sell stakes in some North Sea oilfields and is revisiting the idea of a U.S. stock market listing.

Oil and gas companies in the UK North Sea have been calling for more clarity on the regulatory and tax landscape. The recent policy changes and higher taxes have led to concerns that the lack of investment in the North Sea could increase the UK’s reliance on oil and gas imports.

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