Lundin Petroleum AB is to increase its spending on new developments by 25%, to US$1.4 billion, in 2014.
The majority of the cash (75%) will be spent on ongoing projects offshore Norway, with most of the rest being spent on the Bertram development in Malaysia.
Projects offshore Norway include the development of the Edvard Grieg field (operated by Lundin, with 50% WI), Brynhild, Boyla, Alvheim and Volund.
Edvard Grieg is scheduled to come onstream in Q4 2015 and is estimated to produce 50,000 boe/d net to Lundin Petroleum at plateau production.
Image: The Edvard Grieg concept.
Boyla field, in which Lundin holds 15% WI, is due to come onstream during Q1 2015, with about 3000 boepd net production to Lundin.
Alvheim development work will involve one infill well in 2014, with a further two planned in 2015. In addition, two infill wells are proposed on Volund in 2015.
The Bertam oil field (Lundin WI 75%) in Malaysia is scheduled to reach plateau production in 2015, at a net rate of 11,000 bbl/d. The budgeted net capital expenditure for 2014 is US$325 million. The development activity during 2014 will involve the completion and installation of the wellhead platform, the drilling of development wells, and the completion of the modification work on the Ikdam FPSO vessel, which will receive the Bertam oil production.
Exploration Activity
The exploration budget for 2014 is US$ 380 million, with 75% of the spending in Norway. The exploration program will involve 19 exploration wells in Norway, Malaysia, Indonesia, France, and the Netherlands, targeting total net unrisked prospective resources of 620MM boe.
Seven of the wells will be in Norway. In the North Sea, there will be two wells on the Utsira High on PL625 (WI 40%, Kopervik) and PL359 (WI 40%, Luno II North) respectively and one well on PL631 (WI 60%, Vollgrav) in the northern North Sea.
Two operated wells will be drilled in the Norwegian Sea, on PL555 (WI 60%, Storm) and on PL584 (WI 60%, Lindarormen). The Barents Sea exploration campaign consists of one non-operated well on PL659 (WI 20%, Langlitiden), and one operated well on PL609 (WI 40%, Alta).
In Malaysia, Lundin has a three well exploration campaign. Two exploration wells will be drilled offshore east Malaysia, in the Sabah (SB) region, on block SB 307/308 (WI 42.5%, Kitabu and Malagan). One exploration well will be drilled offshore Peninsular Malaysia (PM), on block PM 307 (WI 75%, Rengas).
Lundin also plans two exploration wells in Indonesia, on Barongang (WI 90%, Balqis and Boni) and on Gurita (WI 90%, Gobi-1, formerly Gloria A). The Hakuryu-11 jackup rig has been contracted to drill all three wells.
One operated well is planned to be drilled in France in 2014, on Est Champagne (WI 100%, Hoplite-1), and five non-operated wells are planned to be drilled in the Netherlands during 2014.
Appraisal activity will be 90% offshore Norway. Four appraisal wells are planned to be drilled on the Utsira High area, with two wells planned drilled on the Johan Sverdrup field (PL501, WI 40% and PL265, WI 10%), one well on the Edvard Grieg field (PL338, WI 50%), and one well on the Luno II discovery (PL359, WI 40%). The recently announced Gohta discovery (PL492, WI 40%), in the Barents Sea will also be appraised, with one well during 2014. Rigs have been secured for all five appraisal wells.
In Malaysia, one appraisal well will be drilled on the 2012 Tembakau gas discovery, on PM 307 (WI 75%).
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