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March 27, 2019

Lundin submits development plan for Solveig field offshore Norway

Swedish exploration and production company Lundin Petroleum has submitted a plan of development and operation for the Solveig oilfield offshore Norway.

By Umar Ali

Swedish exploration and production company Lundin Petroleum has submitted a plan of development and operation (PDO) for the Solveig oilfield offshore Norway.

This submission was made through Lundin’s subsidiary Lundin Norway, with partners Wintershall Norge and OMV Norge.

The Solveig oilfield is in the PL359 production licence, located in the Utsira High area of the North Sea. The oilfield is 15km south of the Edvard Grieg field, and will be developed via a subsea tie-back to the Edvard Grieg platform.

Solveig’s development scheme involves three horizontal oil production wells and two water injection wells. These wells have a gross peak production of 30 million barrels of oil equivalent per day and are expected to start up in the first quarter of 2021.

The first phase of the Solveig development contains 37 million barrels of oil equivalent net resources to Lundin, and 57Mboe of gross proved and probable reserves.

The potential for further development phases will be derisked by production performance from the first phase.

The gross capital cost of the Solveig development is approximately $810m at a net cost of $527m to Lundin, with a breakeven below $30 per barrel of oil.

Lundin Norway is the operator of the Solveig field, with a 65% interest in the PL359 licence. Wintershall and OMV have 20% and 15% working interest in the licence respectively.

The contract for the modifications at the Edvard Grieg field has been awarded to Rosenberg WorleyParsons, and the engineering, procurement, construction and installation (EPCI) contract for the subsea systems has been awarded to TechnipFMC.

Lundin Petroleum CEO and president Alex Schneiter said: “I am very pleased to announce that we have today, submitted the PDO for the Solveig development to the Norwegian Ministry of Petroleum and Energy.

“With first oil scheduled for early 2021, Solveig will be the first sub-sea tie-back development in the Greater Edvard Grieg Area and is a realisation of our strategy of tying back high margin barrels to our operated facilities, as we focus on extending the plateau at Edvard Grieg beyond 2021.”

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