Drilling confirms major oil discovery for Lundin in Norway’s Arctic waters

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Sweden-based Lundin Petroleum confirms a major discovery at its Alta structure in the south Barents Sea, in Norway’s Arctic waters. (Lundin Petroleum)
The appraisal well drilled by company Lundin at the Alta structure is an important step towards another major field development in the northern Norwegian waters.

“We are pleased to announce that we have successfully completed the Alta appraisal well”, Lundin Petroleum informs as results confirm significant oil resources in the Alta discovery.

Lundin made the discovery in 2014 and has since drilled nine exploration wells in the license area. Before this year’s operation, the company estimated the size of the discovery to between 115-390 million barrels of oil. The results from the new appraisal well are expected to increase that resource estimate and reduce the uncertainty range, Lundin says.

The Alta is now believed to be significantly bigger than the “Goliat”, the nearby field operated by Eni.

Test drilling

The drilling operation included a 700-meter horizontal appraisal well, as well as production testing. The test revealed good and very good reservoir properties and production rate without significant breakthrough of water or gas, the Norwegian Petroleum Directorate says in a press release. The operation was made with semi-submersible rig Leiv Eiriksson.

The well was drilled about four kilometers south-southwest of the Alta discovery well, and 190 kilometers northwest of Hammerfest (Arctic Norway).

Lundin aims for development

With the additional information about the license, Lundin is making steps towards a commercial development of the field.

“We will now concentrate our efforts on further defining the route to commercialization and advancing development concept studies”, says Alex Schneiter, President and CEO of Lundin Petroleum. He makes clear that his company steps up its studies to determine additional appraisal drilling requirements.

Lundin’s current development concept for Alta includes a subsea field development connected to a standalone floating production and storage vessel. Joint field development with the adjacent Gohta discovery is considered an increasingly interesting opportunity, the company says.

The discovery is located in area PL609, a license held by Lundin Norway (40%) together with DEA Norge (30%) and Idemitsu Petroleum Norge (30%).

Related stories from around the North:

Canada: Canadian mining company hopes new structure will bring financing for northern project, CBC News

Finland: Finland’s first silver mine to start production next year, Yle News

Norway: Norway grants drilling rights closer to protected Arctic waters, The Independent Barents Observer

Russia: Russia’s Gazprom boosts Arctic gas production and infrastructure, aims foreign markets, The Independent Barents Observer

Sweden: Sweden reluctantly greenlights construction of Nord Stream 2 gas pipeline, Radio Sweden

United States: Opponents skeptical as U.S. Gov claims seismic survey will have “insignificant” impact in ANWR, Alaska Public Media

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Atle Staalesen, The Independent Barents Observer

Atle Staalesen, The Independent Barents Observer

For more news from the Barents region visit The Independent Barents Observer.

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