Lundin lifts offshore E&P expenditure

Lundin Petroleum has allocated $540 million for its global development and exploration program this year, an increase of 38% on its budget for 2010.

Offshore staff

STOCKHOLM, Sweden -- Lundin Petroleum has allocated $540 million for its global development and exploration program this year, an increase of 38% on its budget for 2010.

The planned $240-million development outlay will include the following projects:

1. Development of the BG-operated Gaupe field (Lundin 40%) in the Norwegian North Sea, involving the drilling of two development wells and installation of a subsea system tying back production to the Armada platform in the UK sector. Gaupe should come onstream in late 2011.

2. Completion of the Alvheim field Phase 2 development (Lundin 15%) with the drilling of a further three development wells. The first Alvheim Phase 2 well was brought into production during 4Q 2010.

3. Completion of pre-development activities for the Luno field in Norwegian North Sea license PL338 (Lundin 50%), allowing a Plan of Development to be submitted during the second half of 2011.

Norway also accounts for $220 million of Lundin’s $300-million exploration and appraisal budget for 2011. The company plans to participate in 10 wells across the Norwegian shelf, five as operator.

Five of the wells will be drilled in the Greater Luno Area on PL501, PL265 and PL338. Of these, three will appraise last year’s Avaldsnes discovery. Two exploration wells will be drilled in the Greater Alvheim area on PL340 and PL505. Two more will be drilled in the Barents Sea on PL438 and PL533, with the fifth to be drilled on PL519.

In the Malaysian sector, Lundin will drill two exploration wells offshore Sabah in license SB303 and three offshore Peninsular Malaysia on licenses PM308A and PM308B.

Elsewhere, Lundin will participate in two exploration wells offshore Congo (Brazzaville) on licenses Marine XI and Marine XIV.

01/25/2011

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