Lundin Boosts 2012 Capex
Lundin Petroleum AB (Lundin Petroleum) announced the details of its 960 million development, appraisal and exploration budget for 2012. The budget represents a 40 percent increase on the forecast 2011 capital expenditure.
The development budget for 2012 is $500 million with a major focus on development activities in Norway.
- The development of the Luno field (WI 50 percent) will commence in 2012 with net expenditure forecast at close to $200 million.
- The Brynhild field (WI 70 percent) plan of development was approved in November 2011. The development involves the drilling of 4 production- and water injection wells and the installation of a subsea system for the tieback of the Brynhild field to the Haewene Brim FPSO located at the Shell operated Pierce field in the United Kingdom. The Brynhild field is forecast to commence production in late 2013 at a plateau production rate of 8,400 boepd, net.
- The Gaupe field (WI 40 percent) development is substantially complete. The development wells have been successfully completed and the modifications to the Armada platform are substantially complete. First production from the Gaupe field is now forecast at the end of first quarter 2012 due to the recent bad weather in the North Sea which has delayed pipe laying activities.
- There will be further development activity in 2012 on both the Alvheim field (WI 15 percent) and Volund field (WI 35 percent) with new production wells to be drilled.
In the France Paris Basin the redevelopment of the Grandville field will be completed with the drilling of a further six development wells.
The exploration and appraisal budget for 2012 is $460 million with a major focus on Norway which accounts for $360 million of this amount. The work programme involves the drilling of 24 exploration and appraisal wells in Norway, Malaysia, France and the Netherlands.
- Six appraisal wells will be drilled in 2012 five of which will appraise the Avaldsnes/Aldous Major South discovery in PL501 (WI 40 percent) and PL265 (WI 10 percent). An appraisal well will also be drilled on the Apollo discovery in PL338 (WI 50 percent)
- Eight exploration wells will be drilled in 2012 of which six will be operated by Lundin Petroleum. Three of the wells will be drilled in the Greater Luno Area on PL544 (WI 70 %), PL359 (WI 40%) and PL338 (WI 50%). Three wells will be drilled in Quadrant 8 in the Southern Norwegian North Sea on PL495 (WI 60%) , PL453 (WI 35%) and PL440S (WI 18% ). One exploration well will be drilled in the Barents Sea in PL533 (WI 20%) and in the More Basin in PL519 (WI 40%).
- Five exploration wells will be drilled in Malaysia of which two will be drilled offshore Sabah, in licences SB307/308 (WI 42.5%) and SB303 (WI 75%), and three offshore Peninsular Malaysia on licences PM308A (WI 35%) and PM308B (WI 75%).
- Two explorations wells will be drilled in the Paris Basin targeting conventional resources on Val des Marais and Est Champagne (WI 100 percent)
- Three explorations wells will be drilled on non operated licences (with working interests between 1.2% and 7.75%).
Ashley Heppenstall, President & CEO of Lundin Petroleum commented, "Our organic exploration driven growth strategy has been very successful with the major Avaldsnes discovery in Norway and additional discoveries in Malaysia. We are continuing with our aggressive exploration program in 2012 with a continued focus on Norway and Malaysia. I am confident that our exploration portfolio will continue to deliver successful results. We are moving forward with our Norwegian development programme which will double our production by the end of 2015."
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