Lundin needs to improve materials handling on Edvard Grieg, offshore watchdog says

Norwegian offshore safety watchdog, the Petroleum Safety Authority (PSA), has found irregularities during an audit of Lundin’s Edvard Grieg platform located in the North Sea offshore Norway.

The offshore safety body said on Friday that the audit was conducted from December 2-5, 2019.

According to the PSA, the objective of the audit was to monitor the company’s compliance with the HSE regulations relating to the management of materials handling.

The safety watchdog focused on the organization, responsibilities, and management system in respect of lifting operations, competence and training, and safe use and technical follow-up of lifting equipment and arrangements for safe use.

The audit also looked at the maintenance of lifting equipment, experience of materials handling, improvement measures and follow-up of lifting incidents, and organizational factors relating to crane and lifting operations.

PSA added that no non-conformities were identified during the audit but noted improvement points in connection with storage area for chemical tanks, procedures for lifting operations, management of competence and training, better classification of systems and equipment, better follow-up of maintenance program and history recording, and better labeling of equipment in the field requiring documentation and maintenance.

The PSA told Lundin to report on the assessment of the improvement points observed by February 7, 2020.

The Edvard Grieg field was discovered in 2007 with Lundin Norway’s first exploration well and production started in late 2015. The field development consists of a steel jacket platform resting on the seabed with topsides including a process facility module, utility module and living quarters. Oil is transported via the Grane pipeline to the Sture terminal in Øygarden in Hordaland, while gas is transported via a separate pipeline system to St. Fergus in Scotland.

As for recent developments in the Swedish oil and gas company, the Lundin Petroleum board proposed to change the name of the company to Lundin Energy. The proposed name change remains subject to shareholder approval at the company’s Annual General Meeting on March 31, 2020.

Lundin said at the time that it believed that with the production growth pathway set towards the target of 200 Mboepd, coupled with sustainable, low operating costs, and a carbon intensity which would be below 2 kg CO2 per boe in 2023 versus the world average of 18 kg CO2 per boe, it was clear that the company was transforming what it delivers as well as how it was delivered.

Also, Lundin Petroleum said on Friday that it increased its 2020 budget by 30 percent to $1.27 billion compared to last year and boosted its production guidance for the year with expectations for long-term growth. The company announced its financial report on the same day and said that its net result in 4Q 2019 was $155.3 million, compared to a loss of $98.2 million in 4Q 2018.

Offshore Energy Today Staff

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