Lundin Petroleum has ruled out the standalone development of the Alta and nearby Gohta discoveries in the Barents Sea off Norway as it is not commercially viable.

It said these discoveries could be tied in as additional resources to Equinor’s Johan Castberg oilfield, or to another potential discovery in the area.

Lundin Petroleum reported overall increased reserves and contingent resources as of 31 December. However, it reduced its estimate for the Alta discovery. It based this on a high specification 3D seismic survey and analysis from a well drilled for extended testing in 2018.

In November, Lundin said the Alta and Gohta discoveries may hold between 115 million and 390 million barrels of oil equivalent in gross resources.

Lundin holds a 40% interest in the Alta licence, with Idemitsu Petroleum Norge and DEA Norge holding 30% each.

In the Gohta licence, Lundin has a 40% working interest, while Aker BP holds the remaining 60%.

Lundin Petroleum said it is drilling various large prospects in the Loppa High area in 2020. If these are successful, this may change the dynamic of commercial options for the area.

The company’s reserve replacement rate stood at 150% in 2019. This marks the sixth consecutive year of adding more resources to its portfolio than it produced.

Lundin Petroleum COO Nick Walker said: “In 2019, we increased reserves by moving three new projects in the Edvard Grieg area from the appraisal phase into development, adding high-value barrels that significantly extend the Edvard Grieg production plateau.”

Lundin Petroleum’s subsidiary Lundin Norway operates the Edvard Grieg platform with a 65% working interest. OMV Norge and Wintershall DEA hold 20% and 15% working interests respectively.

In October 2019, the partners finalised the plan to fully electrify the Edvard Grieg platform. They plan to do this in conjunction with the Utsira High Area power grid. They are developing the platform together with the Johan Sverdrup phase two project.