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Lundin Petroleum chairman Ian Lundin. Image courtesy of Nordnet Sverige/Youtube.

Lundin Petroleum slashed its 2015 capital expenditure budget Wednesday to $1.45 billion, a 31 percent drop over last year.

Sweden-based Lundin also cuts its development budget by 30 percent from last year to $980 million and dropped its exploration budget by 27 percent to $320 million.

The company said 77 percent of its budgeted development expenditure, or about $750 million, relates to ongoing projects in Norway with the majority of the balance going to the Bertam development in Malaysia.

Exploration activities in Norway will account for 85 percent of Lundin’s 2015 exploration budget.

The company also made deep cuts to its appraisal expenditure plan, dropping its appraisal budget by 48 percent from last year to $150 million.

The appraisal budget will be entirely allocated to drilling three appraisal wells in offshore Norway.

The company said its expects it 2015 capital program to be fully funded from internally generated cash flow and bank debt.

“We remain firmly focused upon our exploration program in Norway and Malaysia with a particular emphasis on the Utsira High and the Barents Sea areas where we have had excellent historical success,” Lundin CEO and president Ashley Heppenstall said.