Lundin Petroleum AB increased its reserves relating to project sanctions for Solveig Phase 1, the Rolvsnes Extended Well Test, and the Edvard Grieg infill well program, with contingent resources associated with these projects being promoted to reserves. New discoveries on Jorvik and Tellus East, the addition of an improved recovery project at Edvard Greig involving water alternating gas injection (WAG), as well as the acquisition of an additional 30% interest in the Rolvsnes discovery contributed to an increase in contingent resources.
The 2P reserves replacement ratio for 2019 is 150%, the sixth consecutive year that Lundin has reported net positive production replacement. The upward revised proved plus probable net reserves (2P reserves) are 693 MMboe, representing a positive revision of 52.1 MMboe. Oil accounts for 93% of the 2P reserves, the majority associated with fields in production. Its proved plus probable plus possible net reserves (3P reserves) are 858 MMboe, representing a positive revision of 73.4 MMboe .
Edvard Grieg production performance continues to exceed expectations with slower build-up of water production than anticipated. With the sanction of the infill well program, the best estimate gross ultimate recovery from Edvard Grieg, including cumulative production plus 2P reserves, increased to 300 MMboe, representing a 60% increase from the original PDO. With the increased reserves at Edvard Grieg, combined with Solveig Phase 1 and the Rolvsnes Extended Well Test, which will be produced through the Edvard Grieg facilities, the production plateau will be maintained at the contractually available facilities capacity until at least the end of 2022, representing a 4-year extension compared to the original Edvard Grieg PDO.
First oil from Johan Sverdrup field occurred in Oct. 2019 and production has ramped up to around 350,000 bopd gross, which is about 80% of Phase 1 facilities capacity of 440,000 bopd.
Lundin’s best estimate net contingent resources are 185 MMboe, a reduction of 40 MMboe from year end 2018, primarily due to projects promoted to reserves. The contingent resource estimate for the Alta discovery has been adjusted downwards based on evaluation of 3D seismic (Topseis) acquired over the area, combined with data and analysis from a 2018 extended well test. A standalone development of the Alta and Gohta discoveries is no longer considered commercial. A subsea tie-back to either Johan Castberg or another future host development in the area is considered the most viable option. Lundin is drilling several large prospects in the Loppa High area in 2020, which could change the dynamic of commercial options for the area if successful.