Lundin Petroleum's Luno II Oil Discovery off Norway Disappoints
OSLO, Aug 29 (Reuters) – Lundin Petroleum's Luno II oil and gas discovery offshore Norway is smaller than expected and analysts said it may be too small to support a stand-alone development.
Luno II, discovered last year in the Norwegian sector of the North Sea, is now estimated to hold between 27 million and 71 million barrels of oil equivalents (boe) in gross contingent resource, below an initial estimate of 25-120 million boe, Lundin said in a statement on Friday.
"In our view, the probability for a standalone development is now minimal and that a tie back development to the Edvard Grieg platform is the most likely solution," Teodor Sveen Nilsen, an analyst at Swedbank bank, said in a note to clients.
"The updated resource estimate ... implies a more than 30 percent reduction from the previous estimate," he added.
Luno II lies about 15 kilometres (9 miles) south of Lundin's Edvard Grieg field in the North Sea, which is expected to start producing in October next year.
Lundin holds a 50 percent interest in the Luno II license while Austria's OMV has 20 percent, and Statoil and Germany's Wintershall, a unit of chemicals firm BASF, each have 15 percent.
Production tests on a well in the prospect showed oil production of 450 barrels per day and reservoir properties lower than expected.
(Reporting by Nerijus Adomaitis; Editing by Balazs Koranyi)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension