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OSLO – The Norwegian government said Friday it had approved the $4.2 billion development of the Edvard Grieg oil field, the first field offshore Norway to be operated by Swedish independent oil and gas company Lundin Petroleum AB (LUPE.SK).
"Through this development, a new company will become an operator for an independent development on the Norwegian shelf. More diversity is positive, and in line with long term energy policy," said Minister of Petroleum and Energy Ola Borten Moe in a statement.
The Edvard Grieg area contains 186 million barrels of oil equivalent, according to Lundin Petroleum, and peak production is expected to be 90,000 barrels of oil equivalent a day.
The field, formerly known as Luno, is the first of several new developments on the Utsire Height in the North Sea.
"This is the beginning of a new chapter in Norwegian oil history," said Ola Borten Moe, adding that the Utsire Height fields--Edvard Grieg, Draupne and Johan Sverdrup--are expected to contain 2.8 billion barrels of oil equivalent in total recoverable resources, worth $328 billion with the current oil prices.
Production at Edvard Grieg will be combined with the production of the neighboring Draupne, and studies are being made to find the best ways of exporting oil and gas from the Utsira Height area, the ministry said.
The Edvard Grieg field was discovered in 2007 and is situated 180 kilometers west of Stavanger--where Norwegian oil giant Statoil ASA (STO) has its main office.
Lundin Norway AS owns 50% of the field, partner Wintershall Norge ASA owns 30%, and RWE Dea Norge AS owns 20%.
Lundin Petroleum shares were recently up +1%, at SEK135.50.
Copyright © 2012 Dow Jones Newswires
Dow Jones Newswires
