Lundin's Edvard Grieg field is on track for first oil in 4Q this year despite a delay to the topside modules installation earlier this year (see video below).
The firm has also drilled its latest successful appraisal well on the 185.8 MMboe gross reserves field, 2.4km from the Edvard Grieg platform, to help delineate the southeastern part of the field to optimize the drainage strategy and test potential incremental resource in the area.
However, the firm has revised down its full year production guidance to 32,000 boe/d as a result of the delay and a revised production forecast on the Brynhild subsea tieback.
Lundin's outgoing CEO Ashley Heppenstall said Lundin was on track to meet its 2015 objectives, despite "the challenging market conditions," including the go ahead of the Johan Sverdrup project, in which it is a 22.6% equity holder.
"Our company is in strong health with a production base which will grow significantly, cost of operations which going forward will be below US$10/bbl and with strong access to liquidity to withstand the current low oil price environment," he said.
"We have however revised our 2015 production guidance to 32,000 barrels of oil equivalents per day predominantly as a result of the Brynhild revised production forecast and the delay of the installation of Edvard Grieg topsides."
During 2Q, Lundin's production was 28,900 boe/d, compared to 25,400 boe/d in 2Q 2014.
During the period, the firm obtained a production license obtained for the Morskaya field in the Caspian Sea, Russia.
Heppenstall is being replaced by Alex Schneiter, who will over as President and CEO.
Edvard Grieg
The field is in Block 16/1 in the Norwegian sector of the North Sea. It was discovered in 2007 and Lundin holds 50% interest and is operator with partners OMV (20%), Wintershall (15%), and Statoil (15%). The reservoir is at 1900m depth below the seabed. The facilities were built by Kvaener at Verdal (jacket) and Stord (topsides) will comprise 11 oil production wells and four water injection wells. The field lifetime is expected to be about 30 years.
Oil will be exported to the Grane oil pipeline with gas exported via the SAGE pipeline to the UK.
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