Bankers Petroleum 2015 prospects are less optimistic as international oil prices have more than halved to around $54 a barrel since their peak level in mid-2014, forcing the company to revise downward its 2015 program of investments and production
TIRANA, March 16 – Canada-based Bankers Petroleum, which operates the Patos-Marinza heavy oilfield in south-western Albania and is the country’s largest foreign investor, posted record high profits of around $129 million in 2014, more than double compared to 2013, on higher oil production despite a significant cut in international oil prices in the second half of the year.
In a statement announcing its 2014 financial results, Bankers said average sales rose to 20,679 barrels of oil per day (bopd), up 13.7 percent compared to 2013, at an average price of $77.26/barrel, down 10 percent year-on-year, representing 78 percent of the Brent oil benchmark price of $98.95.
Royalties to the Albanian government and related entities were $86 million (15 percent of revenue) during 2014 compared to $94 million (17 percent of revenue) for 2013.
Bankers says it started delivering crude oil to the local Albanian ARMO refinery which in mid-2013 was taken over by Heaney Assets Corporation, an Azerbaijani-based company.
However, Bankers Petroleum 2015 prospects are less optimistic as international oil prices have more than halved to around $54 a barrel since their peak level in mid-2014, forcing the company to revise downward its 2015 program of investments and production.
In early February 2015, Bankers announced it had reduced its 2015 capital program to US$ 153 million, down from a previously announced 2015 capital program of $218 million in early December 2014.
The revised 2015 capital program utilizes a $50 per barrel average annual Brent oil price forecast in comparison to the budget announced on December 12, 2014, which was predicated on an annual Brent oil price forecast of $70 per barrel.
“We believe it is prudent with today’s commodity outlook to show capital discipline and preserve our strong balance sheet. This revised budget reflects our rigorous focus on capital and operating cost efficiency with a balance of both short term drilling execution and long term flood expansion of the field,” said David French, Bankers president and CEO.
Bankers anticipates its 2015 average production levels will decrease from its average 2014 production levels by approximately 5 percent on account of reduced drilling activity and shut-in volumes due to marginal economics.
Canada-based Bankers Petroleum, which operates the Patos-Marinza heavy oilfield in south-western Albania and is the country’s largest foreign investor, has recently agreed to pay US$ 16.5 million to U.K giant BP over the unilateral cancellation of a long-term oil supply contract.
Bankers Petroleum said it has reached an out-of-court deal with BP Oil International Limited, the BP’s financial services subsidiary, over a September 2012 lawsuit initiated at the high Court of Justice in London.
Bankers Petroleum, which has recently made it to the top 100 SEE biggest companies posted record profits of around 62 million dollars in 2013, almost double compared to the previous two years on higher production and oil prices, the company said in its 2013 financial results.
Since 2004, Bankers operates and has the full rights to develop the Patos-Marinza and Kuçova heavy oilfields under a 25-year concession contract with the Albanian government. The Patos-Marinza oilfield is the largest onshore oilfield in continental Europe, holding approximately 5.4 billion barrels of original oil in place. The Kuçova field has 297 million barrels of original-oil-in-place.
