Interoil Reports Significant Production Growth in 2024
In the first half of 2024, Interoil achieved a net production of 100,334 barrels of oil equivalents (boe). This represents a notable increase from the 54,310 boe recorded during the same period in 2023. The company's revenues for this timeframe reached USD 7.9 million, a substantial rise from USD 3.4 million in the corresponding period last year. This impressive growth was largely fueled by the acquisition of an additional 43% stake in the Santa Cruz assets located in Argentina.
Overview of Financial Performance
For the first half of 2024, Interoil reported an EBITDA of USD 4.3 million, marking a significant recovery from USD -0.1 million during the same period in 2023. These financial results highlight Interoil's operational efficiency and recovery, supported by strategic acquisitions and partnerships.
Developments in Strategic Partnerships
This year, Interoil Argentina entered into a new commercial agreement with Compañia General de Combustibles (CGC), a prominent oil and gas company in Argentina. This partnership enables Interoil to transport crude oil to the Loyola Port, effectively reducing freight costs and increasing sales prices by up to USD 10/bbl compared to previous delivery locations.
Operational Challenges Faced
Despite the positive financial indicators, Interoil encountered operational difficulties in Argentina due to severe winter weather that impacted the Santa Cruz fields. Temperatures dropped as low as -20°C, severely limiting access to essential services and materials. These harsh conditions not only hindered production but also led to roadblocks imposed by local authorities for safety reasons.
Efforts to Recover Production
In light of these challenges, Interoil is actively working to restore production levels. Currently, two out of three gas plants have resumed operations, and the evacuation of stored crude has begun to facilitate increased production rates.
Recent Developments and Future Initiatives
In Colombia, the company is engaging with local communities surrounding the Puli C area to obtain their approval for a pulling campaign aimed at recovering at least 100 barrels per day (bpd) of oil and 500 thousand standard cubic feet per day (Kscfpd) of gas.
In Argentina, the extreme weather conditions continued through July and August, further postponing the anticipated recovery in production. The company also faced challenges related to bond management; in July, bondholders agreed to amend bond terms, allowing the full interest payment for July 2024 to be settled in kind through the issuance of additional bonds.
Agreement with the ANH
Interoil Colombia successfully negotiated an agreement with the ANH to partially terminate the LLA-47 Contract. This decision allows the production well Vikingo to remain operational while exploration activities are relinquished due to community opposition. Importantly, this action was taken without incurring penalties or compensation liabilities for Interoil.
Contact Information
For any inquiries regarding this report, interested parties can reach out via email at ir@interoil.no.
Company Overview
Interoil Exploration and Production ASA is a Norwegian-based exploration and production company listed on the Oslo Stock Exchange. The company is actively involved in oil and gas production across various assets in Latin America, with its headquarters located in Oslo.
Frequently Asked Questions
What were Interoil's production numbers for the first half of 2024?
Interoil’s net production in the first half of 2024 was 100,334 barrels of oil equivalents.
How did Interoil's revenues change compared to the previous year?
Revenues increased to USD 7.9 million from USD 3.4 million in the same period of 2023.
What strategic deal did Interoil enter into in Argentina?
Interoil signed a new commercial agreement with Compañia General de Combustibles to enhance oil delivery efficiency.
What challenges did Interoil face in Argentina recently?
Interoil faced challenges due to extreme winter conditions affecting access to oil fields and production operations.
What is the contact information for Interoil's investor relations?
For questions, please contact ir@interoil.no.
