RPT-North Sea oil producer Ithaca cuts 2015 investments by 60 pct

Mon Jan 12, 2015 2:33am EST
 
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LONDON Jan 12 (Reuters) - North Sea-focused oil and gas operator Ithaca Energy has cut its 2015 investment budget by 60 percent from last year year because of weak oil prices, it said on Monday.

The London and Toronto-listed company said its 2015 net capital expenditure would be about $150 million, two thirds of which is related to its Greater Stella Area project, which is expected to produce its first oil before the end of this year.

"The (capex) programme is forecast to be fully funded on an annual basis by operating cashflows generated from the company's currently producing asset portfolio, based on current Brent oil prices and reflecting the benefit of the oil price hedges," Ithaca said.

Oil producers across the world have cut investment programmes for this year after the sharp decline in oil prices on the back of a supply glut. (Reporting by Karolin Schaps; Editing by David Goodman)