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Lundin wins Norwegian approval for $4bn North Sea project

12 June 2012

Lundin Petroleum's wholly owned subsidiary Lundin Norway has secured consent from the Norwegian Parliament for the development and operation of the Edvard Grieg field in the North Sea.

"The company has a 50% stake in the field, while Wintershall Norge and RWE Dea Norge own 30% and a 20% stakes respectively."

The field is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf and is situated in PL338 in block 16/1, which is approximately 180km west of Stavanger.

In April 2012, the Norwegian Ministry of Petroleum and Energy agreed to the field development plan which has a capital cost of $4bn including a platform, pipelines and production wells.

Ashley Heppenstall, Lundin Petroleum president and CEO, said the approval from the Norwegian Parliament for the development is a major achievement and confirmation of its capabilities.

"Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boepd by late 2015," said Heppenstall.

"Our production will increase further with the subsequent development of the Johan Sverdrup discovery located in the southern Utsira High."

The Edvard Grieg platform will accommodate in excess of 160,000 barrels of oil equivalent each day when Draupne production is combined with that from the Edvard Grieg field.

Lundin Petroleum said major contracts for jacket, topside, drilling and marine installation have already been awarded and are subject to final PDO approval.

The company has a 50% stake in the field, while Wintershall Norge and RWE Dea Norge own 30% and a 20% stakes respectively.