Scotland business

Talisman reports low North Sea output

Talisman Energy has warned that its North Sea output is coming in below expectations due to production issues.

The Canadian-based company put out a statement that said it was working with its partners in its joint venture in mature North Sea fields.

However, it said the problems would take time and new capital investment.

It has reduced its production forecast by about 9,000 barrels per day. The average this year was expected to be about 34,000 barrels per day.

Helicopter restrictions

It said UK production was at 17,000 barrels per day in the second quarter, down 19% from the first quarter of the year. This was due to scheduled turnarounds and "continued facilities issues".

These were made worse by the restrictions placed on the industry's helicopter movements in the North Sea, "hampering the ability to complete necessary repair work", it said.

Talisman sold a 49% stake in its UK operations late last year to Chinese energy firm Sinopec, for about £1bn.

Norwegian production, where Talisman is the fifth biggest independent operator, was down 30% to 13,000 barrels per day, according to its statement to shareholders from Calgary headquarters on Wednesday.

With Talisman's North Sea business no longer considered a core area, the company has announced a sales process to exit Norway.

It has been reported that could raise about £2bn.

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