Swedish oil company Lundin Energy has started production from the Solveig oil field in the North Sea, offshore Norway.
First oil from the field, developed as a subsea tie-back to the Edvard Grieg platform was achieved Thursday,
The Solveig field is located 15 kilometers 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," Lundin said.
"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," the company said.
Phase 2 FID in 2022
According to the oil company drilling results from the Solveig Phase 1 have so far beaten 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," Lundin said.
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) licenses with a 65 percent stake. Its partners are OMV and Wintershall Dea with 20 and 15 percent working interests respectively.
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."