Energy Voice | Lundin beefs up Luno II stake with Equinor deal

Swedish oil firm Lundin Petroleum will acquire Equinor’s entire 15% in the Norwegian licence containing the Luno II discovery.

The deal takes Lundin’s operated interest in PL359 to 65%.

The transaction involves a cash consideration and the transfer of a 20% stake in the Rungne exploration prospect to Equinor.

The effective date of the transaction is January 1, 2018 and completion is subject to customary government approvals.

Luno II is situated about 9 miles south of the Lundin-Norway-operated Edvard Grieg platform and has a gross resource range of between 40 and 100 million barrels of oil equivalent.

The development concept for Luno II is a subsea tie back to the Edvard Grieg platform and the objective is to submit a PDO and sanction the project in early 2019.

Lundin chief executive Alex Schneiter said: “I am very pleased to announce this strategic acquisition on the Utsira High of a further 15% working interest in the high quality Luno II discovery, where the development is set to be sanctioned in early 2019.

“This transaction not only fully aligns the Edvard Grieg and Luno II partnerships, but also demonstrates our commitment to supplementing our proven organic growth strategy with accretive asset acquisitions.”

Source link