Lundin Energy increases North Sea activity

Lundin Energy AB will drill three infill wells, produce first oil from two tie-back developments, and drill more exploration wells in the Greater Edvard Grieg area in 2021. The company noted the plans as part of a Jan. 12 production update.

At Johan Sverdrup Phase 1, the water injection system will be modified in mid-2021. The facility capacity has increased to 500,000 b/d with potential further increase after the water injection modifications. When Phase 2 comes on stream, scheduled for fourth-quarter 2022, production capacity will be lifted to 720,000 b/d.

Discoveries at Iving and Evra prospects in the Norwegian North Sea, close to Balder and Ringhorne fields, will be further appraised in 2021. The discoveries are estimated to contain 12-71 MMboe gross resources.

As of Dec. 31, the company’s proved plus probable net reserves (2P reserves) are 671 MMboe reflecting a positive revision of 39.3 MMboe. Proved plus probable plus possible net reserves (3P reserves) are 826 MMboe reflecting a positive revision of 30.0 MMboe.

Best estimate net contingent resources (2C resources) as of Dec. 31, 2020, are 275.5 MMboe, which is an increase of 90.2 MMboe from yearend 2019. Total resource (2P reserves plus best estimate net contingent resources) at end December were 946.4 MMboe, which reflects additions of 129.4 MMboe from yearend 2019, including asset acquisitions. Total resource replacement in 2020 was 210%.

The increase in 2P reserves relates primarily to Edvard Grieg field, along with minor reserves additions at other assets. The increase in 2C contingent resources relates to acquisition of interests in Wisting and Alta discoveries in the southern Barents Sea, as well as exploration success at the Iving prospect in the Norwegian North Sea. Oil accounts for 90% of Lundin Energy’s total resource.

Gross 2P reserves at Edvard Grieg increased by 51 MMboe from yearend 2019 which lifts gross 2P ultimate recovery for the field to 350 MMboe, representing a 90% increase from the original PDO estimate. Gross 2P ultimate recovery for Greater Edvard Grieg Area has grown to 410 MMboe, which includes Solveig Phase 1 and Rolvsnes Extended Well Test tie-back developments. These additional reserves extend the plateau production period for the Greater Edvard Grieg Area by 1 year to late 2023, representing a 5-year extension from the original PDO.