Sunday, December 10News That Matters

Lundin barely holds on as operator of North Sea field

June 28 (UPI) — The Norwegian subsidiary of Lundin Petroleum said Wednesday it nabbed more than $ 90 million for a stake in a North Sea operation.

The company, Lundin Norway, said in an emailed statement that it sold a 39 percent interest in the Brynhild field in the Norwegian waters of the North Sea for $ 91.7 million. The Lundin subsidiary retains its role as the operator, while CapeOmega, which is already a partner, increases its stake in the field from 10 percent to 49 percent.

Lundin struggled through the market downturn that began in 2015, trimming its production guidance lower as a result of less than expected output from the Brynhild field off the coast of Norway and infrastructure delays for its Edvard Grieg rig.

A spokesman for the company told UPI in response to emailed questions that Brynhild was a small part of its overall portfolio and a relatively unproductive asset.

Norwegian energy giant Statoil last year spent $ 538 million to acquire an 11.9 percent stake in Lundin Petroleum, describing it as a way to add value to its position on the Norwegian continental shelf.

First oil was produced from the Brynhild field in 2014 and was Lundin’s first development as an operator.

Lundin, which created a new business unit this year to steer its operations outside Norway, said it expected to produce on average between 70,000 and 80,000 barrels of oil equivalent per day.

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