Solveig oil field : Lundin begins production from $810m North Sea asset
Swedish oil and gas company Lundin Energy has drawn first oil from the Solveig oil field in the Norwegian North Sea on schedule and in line with the $810 million budget.
The Solveig development is a subsea tie back into the Edvard Grieg platform.
Located 15 km south of the Edvard Grieg field, the Solveig oil field in PL359 license has been developed through the drilling of five wells as part of its phase 1 development.
The Solveig oil project phase 1 has 57 million barrels of oil equivalent (MMboe) in gross proved plus probable (2P) reserves.
With a gross peak plateau production of 30 thousand barrels of oil equivalent per day (Mboepd), the Solveig oil field is expected to considerably contribute to the extension of the plateau production period of the Edvard Grieg, which has been already extended by five years to the end of 2023.
According to Lundin Energy, phase 1 development of the Solveig oil field has so far seen two of the five development wells completed. With more discovered resources in the area, that include Segment D, further upside potential is being de-risked by the drilling data and production performance of the phase 1 development.
Lundin Energy said that a plan for development and operation (PDO) for a phase 2 development of the Solveig oil field is likely to be submitted by the end of next year.
Solveig’s total gross resource potential is up to 100 MMboe after including upsides.
Lundin Energy is the operator of the Solveig oil field and the Edvard Grieg field with a 65% stake. Its partners in the PL359 license are OMV (20%) and Wintershall Dea (15%).
Nick Walker — President and CEO of Lundin Energy, commenting on the Solveig oil field, said: “I am very pleased to announce first oil from our Solveig development, a key pillar of our strategy to extend the plateau production period at Edvard Grieg. The development has been executed on time and on budget and the breakeven cost is below USD 20 per boe, making these barrels highly valuable for us.
“I am also confident that there is significant potential to bring additional resources on stream in the area, to extend the plateau production period even further at Edvard Grieg.”