Swedish oil and gas independent Lundin Petroleum announced Tuesday that its Norwegian subsidiary has received final approval for its plan to develop and operate the Edvard Grieg field from Norway's parliament.
The final approval comes after the Norwegian Ministry of Petroleum and Energy gave its nod of approval to the plan in April.
Lundin said that first production from the Edvard Grieg field, which is located in the Norwegian North Sea, is expected in late 2015, with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boepd). The cost to develop the field is estimated to be $4 billion, while the Edvard Grieg platform is designed to have a capacity of more than 160,000 boepd, which will mean it can accommodate additional production from the nearby Draupne field.
"The final approval from the Norwegian Parliament of the Edvard Grieg plan of development is a major achievement and confirmation of Lundin Petroleum's capabilities," said Lundin CEO Ashley Heppenstall in a statement.
"We have built an experienced project team with strong record of completing similar projects and are confident we have the capability to deliver this major project on schedule and on budget. Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boepd by late 2015. Our production will increase further with the subsequent development of the Johan Sverdrup discovery located in the southern Utsira High."
The Edvard Grieg approval is just the latest good news that the Swedish firm has received from its Norwegian neighbors.
On June 5, Lundin was part of a consortium of companies that submitted a plan to the Norwegian Petroleum Directorate for the development and operation of the Bøyla oil and gas discovery in the North Sea. Bøyla – in which Lundin has a 15-percent stake – has been estimated to contain approximately 23 million barrels of oil equivalent.
Lundin, along with Marathon Oil and ConocoPhillips plan to invest $800,000 (NOK 4.9 billion) into Bøyla.
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