Lundin to focus on Johan Sverdrup, Barents Sea appraisal

Offshore staff

STOCKHOLM, SwedenLundin Petroleum forecasts net production this year of 60,000-70,000 boe/d, with around 80% coming from the company’s Norwegian fields.

It has allocated total development expenditure of $935 million, down 12% from the 2015 figure.

Most of this is taken up by activity at the Johan Sverdrup field in the North Sea. Construction of the steel jacket for the riser platform and the topsides for the drilling platform started last year, while work on the other three steel jackets and topsides will get under way during 2016.

Pre-drilling of development wells will begin this spring and is set to continue until 2019, when 17 production and water injection wells will have been completed.

Lundin will contribute $55 million toward further development of the Alvheim area. Main activity will be the completion of one currently drilling infill well on Alvheim and drilling of two further infill wells for the Viper/Kobra subsea tiebacks.

The company has budgeted $105 million pre-tax for exploration, with Norway accounting for 70%. Here it is targeting net potential resources of 250 MMboe.

The program includes two exploratory wells: one on the Fosen prospect in license PL544 is currently drilling, while a planned well on the Filicudi prospect in PL533 would be drilled during the second half of 2016.

Also on the line-up is a re-entry of last fall’s Neiden well drilled in PL609, where it was not possible to reach the main reservoir target during the operational window.

Lundin Petroleum is seeking to take advantage of currently lower rates for drilling, and is tendering for a rig for its southern Barents Sea appraisal campaign due to start in mid-year.

This involves re-entry of the 2015 Alta-3 appraisal well in PL609 to deepen the well and to perform a production test.

The company’s appraisal budget includes development studies for the Luno II discovery in PL359 of the North Sea in the Edvard Grieg area, and a development feasibility study for Alta and Gohta in PL609.

Offshore Malaysia, Lundin’s Bertam oil field currently produces from 11 wells. The company has allocated $30 million for drilling of a long-reach horizontal production well from the Bertam wellhead platform targeting additional resources in the northeast of the field (as identified by the Bertam-3 appraisal well late in 2015).

It has also budgeted net exploration expenditure off Malaysia of $30 million for two operated exploration wells on SB307/308. One on the Bambazon prospect in blocks SB307 and 308, offshore eastern Malaysia, has already been drilled.

The jackup West Prospero has since spud the other well on the Maligan structure, targeting net prospective resources of 94 MMboe.

Maligan is in shallow water and north of a major producing offshore field. The targeted hydrocarbons are in Miocene age sands. Drilling should last roughly 30 days.

01/29/2016

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