11 Nov 2009 15:12

Lundin Petroleum reduces oil production in Russia 11% in Q3

MOSCOW. Nov 11 (Interfax) - Sweden-based Lundin Petroleum, which is developing the Lagansky block in the Russian sector of the Caspian, produced 494,700 barrels of oil equivalent (boe) in Russia in the third quarter of 2009, 11% less than in the same period last year, the company said.

Average daily production at the Lagansky block declined 10% to 5,400 barrels of oil equivalent per day (boepd), of which 4,900 boepd were attributable to Lundin. The company's production in Russia in the first nine months of the year was down 9% to 1.484 million boe.

Lundin's worldwide production in the third quarter amounted to 3.474 million boe.

Revenue from sale of the Russian production totaled SEK 161.482 million, 35% less than in the same period last year. The Russian oil was sold at an average price of $44.7 per barrel.

Operating expenses attributable to production in Russia fell 8% to SEK 23.3 million and exploration expenses were down more than 50% to SEK 89.8 million.

Lundin posted a net loss of SEK 111.3 million ($16.4 million) in the third quarter compared with a profit of SEK 307.2 million ($45 million) in the third quarter last year. Revenue in the quarter fell 17% to SEK 1.748 billion, EBITDA was down 32% to SEK 1.067 billion and operating profit declined 17% to SEK 1.776 billion.