Lundin Receives Approval for Edvard Grieg Field PDO

Lundin Petroleum AB announces that its wholly owned subsidiary Lundin Norway AS has received final approval for the plan for development and operation (PDO) for the Edvard Grieg field from the Norwegian Parliament.

The Norwegian Ministry of Petroleum and Energy concurred with the field development plan in April 2012. The Edvard Grieg is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf (NCS).

First production from the Edvard Grieg field in PL338 is expected in late 2015 with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boepd) (90,000 barrels of oil per day (bopd) and 1.5 million Sm3 of gas per day).

The capital cost of the Edvard Grieg development including platform, pipelines and production wells is estimated at USD 4 billion. The Edvard Grieg platform design capacity will accommodate in excess of 160,000 boepd (130,000 bopd and 4 million Sm3 gas per day) when Draupne production is combined with that from the Edvard Grieg field.

Major contracts (Jacket, topside, drilling and marine installation) have already been awarded subject to final PDO approval.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments; “The final approval from the Norwegian Parliament of the Edvard Grieg plan of development is a major achievement and confirmation of Lundin Petroleum’s capabilities. We have built an experienced project team with strong record of completing similar projects and are confident we have the capability to deliver this major project on schedule and on budget. Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boepd by late 2015. Our production will increase further with the subsequent development of the Johan Sverdrup discovery located in the southern Utsira High.”

Lundin Petroleum is the operator and has a 50 percent working interest in the Edvard Grieg field. Wintershall Norge AS and RWE Dea Norge AS hold a 30 percent and a 20 percent interest, respectively.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker “LUPE”) and at the Toronto Stock Exchange (TSX) (Ticker “LUP”). Lundin Petroleum has proven and probable reserves of 211 million barrels of oil equivalent (MMboe).

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Offshore Nieuws Staff, June 12, 2012; Image : Lundin Petroleum