Weakening oil prices have prompted Premier Oil to scale back plans to pump oil from disputed waters around the Falkland Islands in a move to cut costs. 

The UK based company advised that it would develop fewer wells on its contraversial Sea Lion oilfield project.  

Premier which has producing assets in the UK, Vietnam, Indonesia and Pakistan has moved away from expensive exploration projects as lower oil prices have forced it to cut costs. 

On Wednesday the price of Brent crude fell below $80 per barrel for the first time since 2010. Commenting on the news the FTSE 250 Group company said: " The new lower oil price environment and our commitment to maintaining a strong financial position has caused Premier to re-examine the scheme with a view to reducing the capex"

In June this year Premier and Noble Drilling agreed to a six well campaign off the coast of the islands in an attempt to find more recoverable reserves. The deal was at a cost of £120m to Premier Oil. 

Shares in Premier fell 1.6% on the news while shares in Rockhopper Exploration, Premiers junior partner in the field rose 15%. 

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