Norway Approves Edvard Grieg Field PDO

Lundin Petroleum AB has received final approval for the plan for development and operation (PDO) for the Edvard Grieg field (previously known as Luno) from the Norwegian Parliament.

The Norwegian Ministry of Petroleum and Energy concurred with the field development plan in April 2012. The Edvard Grieg is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf (NCS).

First production from the Edvard Grieg field in PL338 is expected in late 2015 with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boepd) (90,000 barrels of oil per day (bopd) and 1.5 million Sm3 of gas per day).

“This is the start of a new chapter in Norway’s petroleum story. The expected recoverable resources in the Edvard Grieg, Draupne and Johan Sverdrup fields total 2.8 billion barrels of oil equivalents. Given the current oil price and exchange rates, this equates to around NOK 1,900 billion gross. These is an enormous sum, which will benefit all of Norwegian society,” says Minister of Petroleum and Energy Ola Borten Moe.

The capital cost of the Edvard Grieg development including platform, pipelines and production wells is estimated at USD 4 billion. The Edvard Grieg platform design capacity will accommodate in excess of 160,000 boepd (130,000 bopd and 4 million Sm3 gas per day) when Draupne production is combined with that from the Edvard Grieg field.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments; “The final approval from the Norwegian Parliament of the Edvard Grieg plan of development is a major achievement and confirmation of Lundin Petroleum’s capabilities. We have built an experienced project team with strong record of completing similar projects and are confident we have the capability to deliver this major project on schedule and on budget. Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boepd by late 2015. Our production will increase further with the subsequent development of the Johan Sverdrup discovery located in the southern Utsira High.”

Until now, the rights holders have referred to the find as Luno, but the Ministry of Petroleum and Energy has decided to rename it the Edvard Grieg field.

“Grieg’s compositions contributed to the creation of a body of recognisably Norwegian music that became a force in the development of a Norwegian identity. Edvard Grieg gave Norway a national and international musical voice, and helped to build the nation’s identity,” explains the Ministry in a press release.

Lundin Petroleum is the operator and has a 50 percent working interest in the Edvard Grieg field. Wintershall Norge AS and RWE Dea Norge AS hold a 30 percent and a 20 percent interest, respectively.

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Offshore Energy Today Staff, June 12, 2012