Posts

10 licences awarded in the Norwegian APA 2021 licensing round

APA 2021 licence awards

10 licences awarded in the Norwegian APA 2021 licensing round

18 January 2022

Lundin Energy AB announces that its wholly owned subsidiary, Lundin Energy Norway AS (together Lundin Energy), has been awarded interests in a total of ten exploration licences in the 2021 Awards in Predefined Areas (APA) licensing round, in Norway.

The award includes six licences in the North Sea, three licences in the Norwegian Sea and one licence in the Southern Barents Sea. Five of the newly awarded licences will be operated by Lundin Energy Norway.

The licence interests are detailed below and maps of their location are provided in the link below.

LicenceBlocksWorking InterestLicence Area
1170*7324/6,8,9; 7325/4,735%Southern Barents Sea
1164*6507/1140%Norwegian Sea
1162*6407/250%Norwegian Sea
1157*6407/760%Norwegian Sea
115233/3,5,6; 34/450%North Sea
114729/9; 30/7,8,10,1120%North Sea
114325/4,59.05%North Sea
114225/4,59.05%North Sea
1139*15/640%North Sea
113815/9; 16/4,730%North Sea

*Operator Lundin Energy Norway

 


 

Completion of Wisting acquisition

Completion of Wisting acquisition

Completion of Wisting acquisition

17 December 2021

Lundin Energy AB (Lundin Energy) is pleased to note the completion of the previously announced transaction to acquire a further 25 percent working interest from OMV (Norge) AS in the Wisting development, for USD 320 million. Lundin Energy has also entered in to a cooperation agreement with Equinor ASA (Equinor) regarding the operatorship of Wisting and nearby exploration licences.

The transaction to acquire a further 25 percent working interest in the Wisting development has completed following the closing of all pre-requisite conditions, including regulatory and government approvals and is effective from 1 January 2021. In addition, Lundin Energy has concluded a cooperation agreement with Equinor for the Wisting development with the following key terms, which will see Lundin Energy:

  • Propose Equinor to retain operatorship of the Wisting development into the operations phase, allowing operational synergies across their various developments in the Barents Sea
  • Become operator for the exploration acreage surrounding Wisting (PL1133 and PL1134), including an increase in Lundin Energy’s working interest to 35%1
  • Collaborate further with Equinor in the Wisting development by secondment of Lundin Energy employees into key technical and operational positions within the Wisting project

This agreement further strengthens the relationship between Equinor and Lundin Energy and sets out a strong collaboration for exploration and operations in what will be the next Barents Sea production hub.

Wisting Acquisition Highlights:

  • Transaction increases Lundin Energy’s working interest in the Wisting development from 10 percent to 35 percent
  • Strengthens Lundin Energy’s position in a core area with significant remaining prospectivity and meaningfully contributes to the Company’s long-term production outlook
  • Adds net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources at an acquisition price of approximately 2.5 USD/boe
  • Project concept selection and award of front-end engineering and design (FEED) contracts has taken place with the project on track to submit a Plan for Development and Operation (PDO) by end of 2022
  • Wisting’s development concept is in line with Lundin Energy’s decarbonisation plan with a power from shore solution being matured
  • Addition of Wisting resources alone delivers total resource replacement ratio for the Company of approximately 190 percent in 2021

(1) Operatorship and additional working interest in licences PL1133 (15 percent) and PL1134 (5 percent) as well as for licence applied for in the 2021 APA round

 

Lundin Energy Norway Management Succession

Lundin Energy Norway Management Succession

Lundin Energy Norway Management Succession

01 December 2021

Lundin Energy AB (Lundin Energy or the Company) announces that the Board of Lundin Energy Norway AS (Lundin Energy Norway) and Managing Director Kristin Færøvik have agreed that she will retire from her position on 31 December 2021. Morten Grini has been appointed as the new Managing Director from 1 January 2022.

Morten Grini is presently Director for Drilling and Wells in Lundin Energy Norway and has been a member of the leadership team in the Company since joining in 2017. Prior to that he worked for ExxonMobil in Norway and internationally for 19 years across a range of leadership roles.

Nick Walker, President and CEO, Lundin Energy comments:
“I would like to thank Kristin for seven years of committed service. Lundin Energy Norway has seen continued and successful growth under her leadership, from production of just over 20 thousand barrels of oil per day to around 190 thousand barrels per day in 2021. The flagship operated Edvard Grieg field on the Utsira High has consolidated its position as a host facility, and the giant Johan Sverdrup field has been put into production. The Company has delivered strong results throughout her tenure. She has also built a high performing team that will be an important asset for the Company moving forwards.

“We know Morten very well as a highly successful technical professional and leader, who has made a significant impact in Lundin Energy in the relatively short time he has been with us. I look forward to working closely with him in his new role of Managing Director, as we continue to build Lundin Energy as one of the leading companies operating on the Norwegian Continental Shelf”.

Kristin Færøvik, Managing Director, Lundin Energy Norway comments:
“I am proud of having continued to develop Lundin Energy’s business in Norway, and of the success of Edvard Grieg and Johan Sverdrup. After seven years of leading the Company, it is with pleasure I hand over the baton to Morten. Lundin Energy Norway has fabulous employees and I wish them and the Company all the best for the future”.

 

 

Concept select and FEED contracts awarded for Wisting development

Concept select and FEED contracts awarded for Wisting development

Concept select and FEED contracts awarded for Wisting development

10 November 2021

Lundin Energy AB (Lundin Energy) is pleased to note that following the license partners support for development concept selection, Equinor ASA, the operator of Wisting in the development phase, has now awarded the front-end engineering and design (FEED) contracts.

The Wisting development is on track for project sanction by the end of 2022;

  • The main FEED contract for the floating production unit has been awarded to Aker Solutions and will be executed in Norway, ensuring high quality build and finish, including an engineering, procurement, construction and installation (EPCI) option which would be executed after project sanction
  • Other FEED studies have been awarded following the decision to pursue the project, with the main part of this work also being carried out in Norway
  • The development concept includes a circular FPSO and power from shore, resulting in very low CO2 emissions from the field
  • Lundin Energy’s renewable energy projects will generate sufficient power to cover the expected net electricity usage from Wisting, leading to zero net Scope 2 emissions
  • Gross capital investment expected to be between NOK 60 billion to 75 billion
  • The Wisting discovery contains recoverable resources of 500 million barrels of oil
  • Production is expected to start up in 2028 and Equinor plan to submit a Plan for Development and Operations (PDO) by end 2022
  • Lundin Energy has recently increased its working interest in Wisting to 35 percent1

1Increase to 35 percent is subject to Norwegian regulatory approvals and is expected to complete in the fourth quarter 2021

 

Acquisition of a further 25 percent working interest in the Wisting development, Norway

Acquisition of a further 25 percent working interest in the Wisting development, Norway

Acquisition of a further 25 percent working interest in the Wisting development, Norway

28 October 2021

Lundin Energy AB is pleased to announce that its wholly-owned subsidiary, Lundin Energy Norway AS (together Lundin Energy or the Company), has entered into an agreement with OMV (Norge) AS (OMV) to acquire their entire 25 percent working interest in the Wisting development in the southern Barents Sea, for USD 320 million. The acquisition takes Lundin Energy’s working interest to 35 percent in the 500 million barrel oil (MMbo) development.

Highlights

  • Transaction increases Lundin Energy’s working interest in the Wisting development from 10 percent to 35 percent
  • Strengthens Lundin Energy’s position in a core area with significant remaining prospectivity and meaningfully contributes to the Company’s long-term production outlook
  • Adds net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources at an acquisition price of approximately 2.5 USD/boe
  • Targeting to submit a Plan for Development and Operation (PDO) by end of 2022 to qualify for the temporary Norwegian tax incentives
  • Wisting’s development concept is in line with Lundin Energy’s decarbonisation strategy with a power from shore solution being matured
  • Addition of Wisting resources alone delivers total resource replacement ratio for the Company of approximately 190 percent in 2021

The acquisition of an additional 25 percent working interest in the Wisting oil development solidifies the Company’s position in the Wisting area, which will become a core production area for Lundin Energy. In addition to the 35 percent stake in Wisting, Lundin Energy also holds surrounding acreage which is estimated to hold gross unrisked prospective resources of a further 500 MMbo. Wisting will be one of the largest development projects in Norway over the next few years, becoming the next Barents Sea production hub. Concept selection is anticipated shortly and the submission of the PDO is targeted by end 2022, in order to qualify for the temporary tax incentives established by the Norwegian Government in June 2020.

With first oil scheduled to be in 2028, the acquisition of a further 25 percent working interest provides a material contribution to sustaining the Company’s production in the long-term. The Wisting development is also planned to have power supplied from shore, which is firmly aligned with the Company’s decarbonisation strategy and the commitment to becoming carbon neutral by 2023.

The transaction, which has an effective date of 1 January 2021, is subject to the customary Norwegian regulatory approvals, and is expected to complete during the fourth quarter of 2021. The other partners in Wisting are Equinor with a 35 percent working interest, Petoro with a 20 percent working interest and Idemitsu with a 10 percent working interest. Equinor is the operator during the development phase and operatorship is planned to transfer to OMV for the operations phase. Prior to completion of the transaction, the Company will work with the Ministry of Petroleum and Energy and licence partners, to clarify arrangements for the operations phase.

Nick Walker, President and CEO of Lundin Energy:
“The acquisition of a further stake in the high quality Wisting development, is a perfect example of how we look to supplement our organic growth strategy with opportunistic acquisitions, fitting our ambition to sustain the Company long term. With strong project economics, Wisting will be powered from shore and will be a significant contributor to sustaining our long-term production profile. I am excited to have increased our position in Wisting, at a price which I believe is very value accretive to the business.”

 

First oil from the Solveig field

First oil from the Solveig field

First oil from the Solveig field

01 October 2021

Lundin Energy AB (Lundin Energy) announces first oil from the operated Solveig field was achieved on Thursday 30 September 2021. Solveig is a subsea tie back development into the Edvard Grieg platform.

The Solveig field in PL359, is located 15 km south of the Edvard Grieg field and the Phase 1 development consists of a five well subsea tie-back to the Edvard Grieg platform. Phase 1 has gross proved plus probable (2P) reserves of 57 million barrels of oil equivalent (MMboe) and with gross peak plateau production of 30 thousand barrels of oil equivalent per day (Mboepd) it will be a significant contributor to the extension of the plateau production period at Edvard Grieg, which has already been extended by five years to the end of 2023. First oil has been delivered on schedule and in line with the budget estimate of USD 810 million gross, and with a breakeven oil price of below USD 20 per boe.

Solveig Phase 1 drilling results to date have been above expectations, with two of the five development wells already completed. With further discovered resources in the area, such as Segment D, and further upside potential being de-risked by the Phase 1 development drilling data and production performance, a Plan for Development and Operation (PDO) for a Phase 2 development could be submitted by the end of 2022. The total gross resource potential for Solveig, including upsides, is up to 100 MMboe. In combination with the results from the Rolvsnes extended well test, currently on stream, the plateau production period at the Edvard Grieg platform could be further extended beyond 2023.

Lundin Energy is operator of both the PL359 (Solveig) and PL338 (Edvard Grieg) licences with a 65 percent working interest and the partners are OMV and Wintershall Dea with 20 and 15 percent working interests respectively. This alignment of ownership allows for optimisation of production and maximises value for all partners.

Nick Walker, President and CEO of Lundin Energy, commented:
”I am very pleased to announce first oil from our Solveig development, a key pillar of our strategy to extend the plateau production period at Edvard Grieg. The development has been executed on time and on budget and the breakeven cost is below USD 20 per boe, making these barrels highly valuable for us. I am also confident that there is significant potential to bring additional resources on stream in the area, to extend the plateau production period even further at Edvard Grieg.”
 
 

 

Successful completion of Lille Prinsen appraisal wells on the Utsira High in the Norwegian North Sea

Leikanger Hydropower

Successful completion of Lille Prinsen appraisal wells on the Utsira High in the Norwegian North Sea

16 September 2021

Lundin Energy AB announces that its wholly owned subsidiary Lundin Energy Norway AS (together Lundin Energy) has successfully completed appraisal wells on the Lille Prinsen discovery, north of the Edvard Grieg field. The two wells have confirmed a combined updated gross resource range of 12 – 60 million barrels of oil equivalent (MMboe) and the discoveries are being matured for possible project sanction before the end of 2022.

The wells in PL167 on the Utsira High, 15 km north of the Edvard Grieg platform, aimed to verify the hydrocarbon potential in the Lille Prinsen discovery, in order to progress the discovery towards a potential development. The 16/1-34 A well was seeking to prove reservoir and production properties in the carbonate sediments of the Permian aged, Zechstein formation and well 16/1-34 S was targeting an oil leg in the Paleocene aged, Heimdal formation. Results confirmed a gross resource range of 10-50 MMboe in the Lille Prinsen discovery, where a drill stem test proved very good reservoir properties, with 33 API oil, tested at a facilities constrained rate of 3,580 barrels of oil per day. A further discovery estimated at 2-10 MMboe was made in the Heimdal formation, with a 7m oil column in a 50m thick sand package, with good reservoir quality.

The partnership will now progress development studies in order to potentially submit a plan for development and operation (PDO) by the end of 2022, to meet the temporary tax incentives put in place by the Norwegian Government in July 2020. With the additional discovery in the Heimdal formation and further prospectivity in the surrounding licence areas, there is potential to add additional phases of development from further discoveries.

The wells were drilled by the Deepsea Stavanger semi-submersible drilling rig. Lundin Energy is the operator of PL167 with a 40 percent working interest and the partners are Equinor Energy AS with 30 percent, Spirit Energy Norway AS with 20 percent, and AkerBP ASA with 10 percent working interests.

The Deepsea Stavanger rig will now proceed to the Merckx exploration prospect in PL981, immediately to the southwest of the Solveig field also on the Utsira High. Well 16/4-12 will target Paleocene aged sandstones and Permian aged carbonates, estimated to hold gross unrisked prospective resources of 152 MMboe. Lundin Energy is the operator with a 60 percent working interest and AkerBP ASA is the partner, with a 40 percent working interest.

 

First oil from the Rolvsnes field

First oil from the Rolvsnes field

10 August 2021

Lundin Energy AB (Lundin Energy) announces first oil from the Extended Well Test (EWT) at the operated Rolvsnes field, the first subsea tie back development for the Edvard Grieg platform.

The Rolvsnes field is located in PL338C on the southern side of the Edvard Grieg field and is a weathered and fractured granite basement reservoir. During 2018, the successful drilling and testing of a horizontal appraisal well (16/1-28) was completed, which flowed 7,000 bopd, demonstrating good reservoir productivity. The appraisal well has been converted to a development well and tied back the 3 km distance to the Edvard Grieg platform, with the project being completed on schedule and on the budget cost estimate. The resource estimate for the Rolvsnes field is between 14 and 78 million barrels of oil equivalent (MMboe) gross.

The objective of the EWT is to gain a better understanding of the reservoir properties, reservoir connectivity and long term production performance of the field and if successful, this test has the potential to unlock a full field development for Rolvsnes, further extending the plateau production period for Edvard Grieg. Once sufficient data and production experience has been gathered, a Plan for Development and Operation (PDO) could be submitted by the end of 2022, benefitting from the temporary tax regime in Norway. A successful test could also derisk significant additional resource potential in weathered and fractured granite basement reservoirs on the Utsira High.

Lundin Energy Norway AS, a wholly owned subsidiary of Lundin Energy, is the operator of PL338C with an 80 percent working interest, with the remaining interest held by OMV (Norge) AS.

Nick Walker, President and CEO of Lundin Energy, commented:
“One of our strategic priorities is to extend plateau production on Edvard Grieg keeping the facilities full in the long term. We have successfully managed to extend the Edvard Grieg plateau by over 5 years already, through successfully unlocking resources within the Edvard Grieg field and through near field tie-back developments. The Rolvsnes EWT is the first tie-back development into our operated Edvard Grieg hub and production data from the EWT will provide vital information to potentially unlock the full field development of the Rolvsnes field, as well as further weathered and fractured basement reservoir opportunities on the Utsira High.”


 

19 licences awarded in the Norwegian licensing round

APA 2020 licence awards

19 licences awarded in the Norwegian licensing round

19 January 2021

Lundin Energy AB announces that its wholly owned subsidiary Lundin Energy Norway AS (together Lundin Energy), has been awarded a total of 19 exploration licence interests in the 2020 Awards in Predefined Areas (APA) licensing round, in Norway.

The award includes 15 licences in the North Sea, two licences in the Norwegian Sea and two licences in the Southern Barents Sea, seven of the newly awarded licences will be operated by Lundin Energy Norway.

The awards from this licensing round continue to build on the Company’s seven core exploration areas and increases by 23 percent the number of licences held by the Company. Supporting the Company’s strategy to execute an exploration programme which targets a combination of high value, near field opportunities and high potential, frontier exploration.

 The licence interests are detailed below and maps of their location are provided in the link below.

 

LicencesBlockWorking InterestLicence Area
1089*1/5,650%North Sea
10872/2, 550%North Sea
1084*3/760%North Sea
10907/130%North Sea
1091*15/5,6,840%North Sea
1092*15/6,950%North Sea
109715/3, 24/11, 1230%North Sea
1095*16/2, 25/1150%North Sea
1094*17/2,3,5,6,8  18/760%North Sea
1045B125/415%North Sea
820SB125/840%North Sea
109925/3, 26/1, 30/12, 31/1030%North Sea
110430/340%North Sea
1102*30/3, 31/1,4,560%North Sea
110634/2,3,5,620%North Sea
11266609/5,6,7,8,9,10,11,12, 6610/2,4,5,6, 6611/4,530%Norwegian Sea
11296703/7,8,9,10,11,12, 6704/7,8,10,1130%Norwegian Sea
229G17122/8,950%Southern Barents Sea
11317122/8,9,10,11,12, 7123/7,8,920%Southern Barents Sea

*Operator Lundin Energy Norway

1 Geographical extension of the licence area.

 


 

Downloads

Potentiell risk för att Johan Sverdrup stänger ner sin produktion på grund av strejk (regulatorisk)

Completion of exploration well on the Bask prospect in the southern Barents Sea (regulatory)

Ytterligare ökning av produktionskapaciteten på Johan Sverdrup (regulatorisk)

Prospekteringsborrning slutförd på strukturen Polmak i södra Barents hav (regulatorisk)

Exploration well completed on the Polmak prospect in the southern Barents Sea (regulatory)