Lundin's Development Expenditure to Top $1B in 2017

Lundin Petroleum announced Thursday that its development expenditure in 2017 will total $1.095 billion.

Approximately 99 percent of the 2017 budgeted development expenditure, corresponding to $1.085 billion, relates to development projects in Norway with some minor expenditure items on non-Norwegian assets.

Most of the expenditure in Norway relates to the ongoing development activity on Phase 1 for Johan Sverdrup, continued development drilling at Edvard Grieg and further infill wells on Alvheim and Volund.

From inception up to year end 2016 Lundin Petroleum’s net capital expenditure on Johan Sverdrup Phase 1 amounted to $900 million. Construction has commenced on all elements of Phase 1 with the first steel jacket scheduled to be installed offshore during the summer of 2017 and the remaining three jackets to be installed in 2018. The riser and drilling platform topsides are scheduled to be installed in 2018 and the processing and living quarter topsides are scheduled to be installed in 2019.

The pre-drilling of development wells commenced in 2016 with eight production wells completed so far and a further six water injection wells scheduled to be drilled during 2017. The project remains on schedule for first oil in late 2019.

“The capital budget continues to be dominated by the Johan Sverdrup project with the 2017 budget representing a peak year of construction activity, and therefore expenditure,” Alex Schneiter, president and CEO of Lundin Petroleum, said.

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