Volund delivers first oil

Marathon Oil has started production from the Volund field in Norwegian North Sea block 24/9.

Offshore staff

STOCKHOLM -- Marathon Oil has started production from the Volund field in Norwegian North Sea block 24/9.

Volund has been developed as a subsea tieback to the Alvheim field FPSO, 8 km (4.9 mi) to the north, in Production License PL150. According to partner Lundin Petroleum, Volund’s production will be restricted to gross rates of around 10,000 b/d of oil through mid-2010. Thereafter, the field will have guaranteed production capacity of 25,000 b/d on the FPSO.

Peak output of around 25,000 b/d should be attained this summer, when two further production wells will be brought on stream.

Ashley Heppenstall, President and CEO of Lundin Petroleum, said: "First production from the Volund field is another major milestone for Lundin Petroleum. It will have a material positive impact on our production numbers as we have a higher equity interest in Volund compared to Alvheim.

“The development of the Greater Alvheim area continues with Phase 2 drilling on Alvheim commencing later this year and the likely development of the Marihøne and Viper exploration discoveries made last year. Our objective is to keep the Alvheim FPSO operating at maximum capacity for the foreseeable future".

Lundin Petroleum holds a 35 % interest in Volund with Marathon holding the remaining 65 %. Lundin also has a 15 % interest in the Alvheim field and associated FPSO.

05/03/2010

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