Lundin Petroleum has unveiled a $960-million development, appraisal, and exploration program for 2012, a 40% increase on the company’s anticipated capex last year.
Development accounts for $500 million, of which $200 million will be allocated for the Luno project in the Norwegian North Sea (Lundin is operator with a 50% interest).
The rest will be allocated to the Brynhild development, approved last November (an eight-well subsea tieback to the Haewene Brim FPSO on Shell’s Pierce field in the UK sector); to Gaupe, a tieback to BG’s Armada platform in the UK central North Sea which is due onstream at end-March; and to incremental development activity (new production wells) on the Marathon-operated Alvheim and Volund fields in the Norwegian sector.
Ashley Heppenstall, president and CEO, said the Norwegian development program would double the company’s production by the end of 2015.
As for exploration, Lundin will participate in six appraisal wells off Norway this year, five of them slated for the giant Avaldsnes/Aldous Major South discovery in licenses PL501 and PL265. An appraisal well will also be drilled on the Apollo discovery in PL338.
The company is lining up eight Norwegian exploration wells, six as operator. Three of the wells will be drilled in the Greater Luno Area on PL544, PL359k and PL338. Another three will be drilled in Quadrant 8 in the southern Norwegian North Sea on PL495, PL453, and PL440S. One exploration well will be drilled in the Barents Sea in PL533 and another in the More basin in PL519.
Offshore Malaysia Lundin will drill five exploration wells, comprising two offshore Sabah, in licences SB307/308 and SB303, and three offshore Peninsular Malaysia on licenses PM308A and PM308B.
Finally, Lundin will participate in three explorations wells in Dutch licences where it has minority interests.