Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) as operator has, with its partners Wintershall Norge AS (Wintershall) and OMV Norge AS (OMV) submitted the plan for development and operation (PDO) for the Solveig field (previously called Luno II).
The Solveig oil discovery in PL359, is located 15 km south of the Edvard Grieg field and will be developed via a subsea tie-back to the Edvard Grieg platform, involving five development wells with gross peak production of 30 Mboepd and is anticipated to start up in the first quarter of 2021. The capital cost of the Solveig development is estimated at USD 810 million gross1 (USD 527 million net to Lundin) and with a breakeven below USD 30 per boe. The Solveig project will be implemented together with the Rolvsnes Extended Well Test (EWT) project to take advantage of contracting and implementation synergies.
Solveig phase 1 contains 57 MMboe of gross proved plus probable reserves (37 MMboe net to Lundin). The development scheme involves three horizontal oil production wells and two water injection wells. The potential for further phases of development, which will capture the upside potential in the discovered resources, will be derisked by production performance from phase 1.
The contract for the modification of the Edvard Grieg field facilities has been awarded to Rosenberg WorleyParsons and the subsea system contract has been awarded to TechnipFMC under a lump sum engineering, procurement, construction and installation contract (EPCI). Drilling work will be undertaken using the recently contracted West Bollsta, high specification, dual capability semi-submersible rig.
During 2018, Lundin acquired Equinor’s 15 per cent interest in PL359 creating alignment of ownership interests between the PL359 (Solveig) and PL338 (Edvard Grieg) licences. Lundin is operator of both licences with a 65 per cent working interest and the partners are OMV and Wintershall with 20 and 15 per cent working interest respectively; this alignment of ownership interests allows for optimisation of production and value for all partners.
Alex Schneiter, CEO and President of Lundin Petroleum commented:
“I am very pleased to announce that we have today, submitted the PDO for the Solveig development to the Norwegian Ministry of Petroleum and Energy. With first oil scheduled for early 2021, Solveig will be the first sub-sea tie-back development in the Greater Edvard Grieg Area and is a realisation of our strategy of tying back high margin barrels to our operated facilities, as we focus on extending the plateau at Edvard Grieg beyond 2021.”
Lundin Petroleum is one of Europe’s leading independent oil and gas exploration and production companies with operations focused on Norway and listed on Nasdaq Stockholm (ticker "LUPE"). Read more about Lundin Petroleum’s business and operations at www.lundin-petroleum.com
1) At NOK 8 to USD
For further information, please contact:
| Edward Westropp VP Investor Relations Tel: +41 22 595 10 14 edward.westropp@lundin.ch | Sofia Antunes Investor Relations Officer Tel: +41 795 23 60 75 sofia.antunes@lundin.ch | Robert Eriksson Manager, Media Communications Tel: +46 701 11 26 15 robert.eriksson@lundin-petroleum.se |
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