Lundin increases stake in Luno II oil discovery

Lundin Norway has entered into an agreement with Equinor, under which it will acquire Equinor’s entire 15 percent working interest in the Lundin Norway-operated license PL359, containing the Luno II oil discovery.

The acquisition takes Lundin Norway’s working interest in PL359 to 65 percent and creates commercial and operational alignment between the Edvard Grieg and Luno II partnerships, realizing significant benefits through  optimization of production and enhanced value from both fields, Lundin said on Wednesday.

The transaction involves a cash consideration payable by Lundin Norway to Equinor, as well as Lundin Norway transferring its 20 percent working interest in PL825, containing the Rungne exploration prospect, to Equinor.

The effective date of the transaction is January 1, 2018 and completion is subject to customary government approvals.

Luno II is situated approximately 15 km south of the Lundin Norway-operated Edvard Grieg platform on the Utsira High and has a gross resource range of between 40 and 100 million barrels of oil equivalent (MMboe). The development concept for Luno II is a subsea tie back to the Edvard Grieg platform and the objective is to submit a PDO and sanction the project in early 2019.

Lundin Norway is the operator of PL359 with a current 50 percent working interest. The partners are OMV with 20 percent and Equinor and Wintershall with 15 percent each.

Alex Schneiter, CEO and President of Lundin Petroleum commented: “I am very pleased to announce this strategic acquisition on the Utsira High of a further 15 percent working interest in the high quality Luno II discovery, where the development is set to be sanctioned in early 2019. This transaction not only fully aligns the Edvard Grieg and Luno II partnerships, but also demonstrates our commitment to supplementing our proven organic growth strategy with accretive asset acquisitions.”