Lundin announced the details of its USD 540 million development and exploration budget for 2011. The budget represents a 38 percent increase on the forecast 2010 capital expenditure.
In Norway the development of the Gaupe field (WI 40%) will be completed with the drilling of two development wells and the installation of a subsea system for the tieback of the Gaupe field to the Armada platform in the United Kingdom. The Gaupe field will commence production in the fourth quarter of 2011.
The development of Phase 2 of the Alvheim field (WI 15%) will be completed in 2011 with the drilling of a further three development wells. The first Alvheim Phase 2 development well was successfully brought on production in the fourth quarter 2010.
The pre-development activities including front end engineering for the Luno field in PL338 (WI 50%) will be completed in 2011 to enable the submission of a Plan of Development in the second half of the year.
In the French Paris Basin the redevelopment of the Grandville field involves the drilling of eight new wells, in-field pipelines and new production facilities.
The exploration and appraisal budget for 2011 is USD 300 million with a continued major focus upon Norway which accounts for USD 220 million of this amount. The work program involves the drilling of 21 exploration and appraisal wells in Norway, Malaysia, Congo (Brazzaville) and Netherlands.
Ashley Heppenstall, President & CEO of Lundin Petroleum commented, "Our Norwegian production will continue to increase in 2011 and we are also confident that our exploration and appraisal program, particularly in the Greater Luno Area and Barents Sea in Norway, will lead to further resource additions."
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