Projects

North Sea Northern-Luno Field

The Edvard Grieg field (formerly Luno), is located in production licence PL 338, in the Utsira High area of the Norwegian North Sea. It lies at a water depth of 354ft.

Operator

Lundin Petroleum

Location

Norwegian North Sea

Partners

Wintershell 30%, RWE Dea 20% and Lundin 50%

Reserves

149mboe of gross 2P reserves

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The Edvard Grieg field (formerly Luno), is located in production licence PL 338, in the Utsira High area of the Norwegian North Sea. It lies at a water depth of 354ft. The field began production in November 2015. It is being developed at an estimated cost of $4bn.

Lundin Petroleum is the operator of PL 338, with a 50% interest. The other partners are Wintershall Norge (30%) and RWE Dea Norge (20%). PL 338 was granted to Lundin Petroleum in 2004.

Discovery

Two reservoirs, the Jurassic and the Triassic, were identified in the licensed area. The appraisal well 16/1-8 discovered light oil in the Jurassic reservoir in 2007. Production testing was completed in October 2009. Three more delineation wells, 16/1-10, 16/1-11 and 16/1-12, were subsequently planned.

The licence operating company completed the appraisal of the first Luno well 16/1-10 in January 2009. This well, along with 16/1-8, was drilled to appraise the Edvard Grieg field.

The appraisal well proved the possibility of reserves in extended areas of the Edvard Grieg to the north-east of the main discovery.

Edvard Grieg geology and reserves

The light oil at the Edvard Grieg field lies at the Jurassic Reservoir with the Triassic reservoir below oil / water contact. The recoverable reserves at the Jurassic and potential Triassic reserves were initially estimated to range between 65 million barrels of oil equivalent (mboe) and 190mboe.

“Edvard Grieg’s recoverable reserves were estimated at 65-190 million barrels of oil equivalent.”

Independent reserves auditor Gaffney, Cline and Associates revised the reserves estimate in the field to be 95mboe of gross 2P reserves in July 2009.

Gaffney, Cline and Associates arrived at its estimate of Edvard Grieg’s reserves on the basis of the results of discovery well 16/1-8, the appraisal of 16/1-10 and an early-stage interpretation of an ocean bottom cable seismic survey that was conducted in 2008.

The estimation for the two reserves was based on the 365mboe in place and 26% recovery factor.

In October 2010, following completion of the 16/1-13 appraisal well, Lundin Petroleum revised the reserve estimate of the field from 95mboe to 149mboe. As of March 2012, the field is estimated to hold approximately 186mboe.

Field development, drilling and exploration

The Edvard Grieg field development steamed ahead with the discovery well 16/1-8. Well 16/1-8 is a significant light oil discovery in the Norwegian North Sea with major working interest in adding acreage. It is located 28km east of the 15/3-1 Gudrun discovery in the Central North Sea.

Exploration of well 16/1-8 over the Edvard Grieg prospect was concluded in October 2007. The well was drilled to a depth of 2,175m below the sea surface.

The exploration activities were targeted at identifying petroleum over the prospect in Jurassic reservoir rock.

The production testing at the well, concluded in October 2009, was carried out at a water depth of 108m. The testing operations were executed by employing the semi-submersible drilling rig Transocean Winner.

The well was not tested in its year of discovery, only extensive data and samples were acquired during that time. For re-entering the well for further testing and permanent abandonment, the well was held back temporarily in 2007.

It was later re-entered, drilled and tested in two stages with flow rates up to approximately 5,700 barrels of oil a day through a 1in choke. The well was later plugged permanently.

“Exploration well 16 / 1-12 was successfully drilled in September 2009.”

The appraisal of the first Edvard Grieg well 16/1-10 began in November 2008, targeting the Jurassic reservoir, along with exploring upside potential in the Triassic reservoir. The appraisal proceeded with testing, with flow of approximately 4,000 barrels of oil on a 54/64 choke.

The hydrocarbon reservoir with clean sands and conglomeratic divisions was found at the well location. A Bredford Dolphin semi-submersible drilling unit was used for drilling the appraisal well.

Exploration well 16/1-12 over the Edvard Grieg extension prospect was successfully drilled in September 2009.

In January 2010, Lundin Petroleum completed drilling of the second appraisal well 16/1-13. The well was drilled by Transocean Winner semi-submersible rig to a vertical depth of 2,275m. It encountered a 50m oil column in Jurassic sediments with exceptional reservoir characteristics.

The plan for development and operation (PDO) for the field was submitted to the Norwegian Ministry of Petroleum and Energy in January 2012 and sanctioned in April 2012.

The field partners signed an agreement in March 2012 with Det norske Oljeselskap, to jointly develop the Edvard Grieg and Draupne fields.

The Edvard Grieg field is being exploited through 15 wells tied-back to a new processing and living quarters platform. The designed capacity of the platform is more than 160,000boe a day.

Contracts

In February 2010, Lundin Petroleum awarded Sevan Marine a contract to study the possible use of a Sevan production unit for the field.

Kvaerner Stord was contracted in May 2012 to provide engineering, procurement and construction (EPC) services for the topside facilities of the platform under a $1.3bn EPC contract. Aker Solutions worked as a sub-contractor on this project.

Honeywell is responsible for supporting and delivering services for the project.

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