Lundin sees ‘good potential’ in Barents Sea. Scoops five blocks

Lundin Petroleum, a Swedish independent oil and gas company, has been awarded five new licenses in the Barents Sea following today’s results of the 23rd offshore licensing round in Norway.

The company will manage its new acreage through its Norwegian subsidiary Lundin Norway, which will operate three of the five blocks awarded. All the licenses are located in the southern Barents Sea.

Under the operated licences, there are no commitment wells Lundin has to drill in the first phase. In the first phase, Lundin will carry out geological and geophysical studies over the first block, reprocess 3D seismic over the second, and acquire 3D seismic over the third block, and following these results it will make a decision to either drill or drop the licence.

Unlike Lundin, Statoil will drill five wells in its new acreage, with the fist well expected in 2017. More on that here https://bit.ly/1WE1T4a

‘Great trust’

Managing Director Kristin Færøvik said about the award: “The authorities have shown us great trust – a trust that we will manage well.”

Thirteen companies have been offered acreage as part of the latest licensing round. Lundin stated on Wednesday that such an important award of acreage in the Norwegian Continental Shelf hasn’t happened in years.

“The award shows that the government has confidence in Lundin Norway, and the way we work. We have very been active in the Barents Sea since 2007 and have gained in-depth knowledge particularly on the Loppa High area. Now we are allowed to explore more in this area, and in addition we are offered partnership in very exciting areas further east. This is a possibility we will manage in the best possible manner for all stakeholders,“ said Færøvik.

She said that the latest licensing round shows the exploration activities in the Barents Sea will be high in the years to come.

‘Ripple effects’

“Most importantly first, is of course to discover more resources in the area. More discoveries in totality contribute to commercially viable field developments, which in turn contribute to permanent ripple effects in the North. This is what we are aiming for”, says Færøvik.

“The areas in the south-east of the Barents Sea consists of several large prospects which we believe represents a large resource potential”, said Exploration Manager in Lundin Norway Halvor Jahre. „Last year we drilled the Ørnen prospect not too far from PL857 in which we were offered partnership today. The results from this well indicate a good potential in this part of the Barents Sea,”added Jahre.

Lundin was offered shares in three licenses as operator: PL609, PL851, PL853 with 40, 40 and 60 percent ownership respectively. The two other licenses were for 20 percent ownership of PL857 and 15 percent ownership of PL859.