PetroNeft to reduce development due to unstable markets

Irish oil explorer PetroNeft Resources the operating in western Siberia, plans to reduce the pace of oil-field development because…

Irish oil explorer PetroNeft Resources the operating in western Siberia, plans to reduce the pace of oil-field development because of “unstable” financial markets and oil-price volatility.

"This decision was made to ensure the medium and long-term financial stability of PetroNeft," the Dublin-based company said in a statement.

"Capital expenditure costs are yet to align with reduced oil prices." PetroNeft has no debt drawn down and sufficient cash resources through next year, according to the statement.

The company confirmed the "high quality of reserves" at the Lineynoye and West Lineynoye deposits and said its long-term strategy remains to bring the fields to production.

At 11.34pm PetroNeft shares were unchanged at €0.133, giving the company a market cap of €17.74 million

Bloomberg