Premier Oil expects $300mn impairment charge due to weak prices

LONDON: Oil and gas explorer Premier Oil said it expected to book a $300 million impairment charge on some of its assets for 2014 due to weak oil prices.

The London-listed company also expects to spend around 40 percent less, or $600 million, on planned development this year, it said.

Premier Oil added this figure was subject to change as it was negotiating rates with contractors.

The oil producer also expects production to fall to 55,000 barrels of oil equivalent per day (boepd) this year, excluding contribution from its North Sea Solan project that is expected to come on stream this year.

Last year, Premier Oil exceeded the upper end of its production target, reaching 63,600 boepd.