Lundin Norway News

Norway-based offshore vessel owner Siem Offshore has received some breathing room after reaching an agreement with its banks.The company last week warned that the extreme fluctuations in the financial markets over the past weeks „have resulted in a further deterioration in the company's liquidity situation“ and that Siem Offshore was in discussions with its banks to seek to alleviate the situation.In a statement on Wednesday morning, Siem Offshore said that it had "with effect from 31 March 2020 entered into an agreement with the group's secured lenders to provide time to secure a long-term financing solution for the Siem Offshore group."The terms of the agreement include deferral and suspension of principal and interest and waiver of financial covenants until May 15…

Norway's prime minister Erna Solberg has opened the Johan Sverdrup field center, and the Minister of Petroleum and Energy, Sylvi Listhaug, also attended the opening.Since Equinor and the Johan Sverdrup partners Lundin Norway, Petoro, Aker BP and Total started the field on 5 October last year, production has increased to a level well above 300,000 barrels per day.Johan Sverdrup is expected to yield a total production revenue exceeding NOK 1 400 billion and more than NOK 900 billion in revenue to the Norwegian state.Expected recoverable Johan Sverdrup reserves are 2.7 billion barrels of oil equivalent. Two thirds of the oil from Johan Sverdrup are expected to be produced before 2030.The field is setting a new standard for CO2 efficiency.

Rosenberg WorleyParsons has been awarded an engineering, procurement, construction and installation contract (EPCI) by Lundin Norway ASO in the Norwegian Continental Shelf.The services include planning, engineering, prefabrication, offshore installation and commissioning support. The objective of the modification is to prepare Lundin’s Edvard Grieg platform to receive and process oil and gas from nearby offshore fields.The project starts immediately and has a duration of two and a half years. The services will be executed from WorleyParsons Rosenberg in Stavanger.“WorleyParsons is proud to be selected to execute this important brownfield modification project for Lundin Norway”…

When the owners of Norwegian oil firm Aker BP decided to digitise its assets and operations, they searched high and low for the right software company. But they failed to find a suitable one.So instead they set up their own, Cognite, to create digital maps of Aker BP's oil industry assets, integrating data from equipment such as pumps, heat and pressure sensors, maintenance records and even staff rotas to improve efficiency and safety.Less than two years later, Cognite is selling its software to Aker BP's rivals and one competitor, Sweden's Lundin Petroleum, has even agreed to share its real-time oilfield data with Aker in what they say is an industry first."This will be the first time two different operators…

The international contractor of offshore deepwater drilling services Ocean Rig UDW  has entered into a new drilling contract with Chariot Oil & Gas Limited for a one-well drilling program, for drilling offshore Namibia.The contract is expected to commence in direct continuation of the previously announced program with Tullow Namibia Limited in the third quarter of 2018 and will be performed by the Ocean Rig Poseidon.Ocean Rig has entered into a Letter of Intent (LOI) with a European Major Oil Company for a firm two-wells program plus two optional wells, for drilling offshore West Africa.The contract is expected to commence in direct continuation of the program with Chariot Oil & Gas Limited in the fourth quarter of 2018 and will be performed by the Ocean Rig Poseidon…

Karl-Petter Løken has been appointed President and Chief Executive Officer (CEO) for the international contracting company Kvaerner. Løken succeeds Jan Arve Haugan, who left Kvaerner for a position at Aker Energy. Kvaerner's EVP & CFO Idar Eikrem will continue as interim CEO until Løken steps into the role this spring after ending his current position as head of Project Development for Lundin Norway. Since 1991, Løken has held positions in the oil and gas industry for companies like Statoil, Aker Solutions and Lundin Norway.

Norwegian offshore vessel owner Simon Møkster Shipping AS said it has been awarded a contract with Lundin Norway AS for the platform supply vessel (PSV) Stril Mar.   The 2016-built Stril Mar will be under firm contract until the summer of 2018, plus additional options.

Ocean Rig UDW, contractor of offshore deepwater drilling services, has announced that Lundin Norway AS, has declared their third option to extend the existing contract of the Leiv Eiriksson. In addition, Ocean Rig has granted Lundin 2 additional options to drill further wells in the future. As a result of these developments, the rig now has firm employment until at least the end of September of 2017 and should Lundin exercise its additional seven one-well options, currently un-declared, the rig could be employed until the first quarter of 2019. The total expected revenue backlog, including all the optional wells, is expected to be $85 million.

Ocean Rig UDW Inc, the offshore drilling contractor, posted revenue of $452.6 million in the second-quarter, beating Wall Street forecasts. Three analysts surveyed by Zacks expected $385.7 million. The company has reported second-quarter profit of $155.6 million. The company said it had profit of $1.83 per share. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 71 cents per share. "Despite the continued positive operational performance of the Company (fleet utilization for the second quarter of 96.3%) the market conditions remain extremely negative. Oil companies continue to reduce their offshore budgets and as more floaters come off contract in the next six months…

Customer-case shows potential for a 40% reduction in engineering hours on subsea paperwork, and up to 80% less documentation. A cross-industry project led by DNV GL to halt the boom in subsea documentation shows that implementing a standardized approach can significantly reduce engineering hours. The two-year collaboration led by DNV GL has concluded in a publicly available Recommended Practice which can reduce the amount of subsea documentation and enable documentation reuse in a typical subsea field development project. DNVGL-RP-O101 ‘Technical documentation for subsea projects’ details a required minimum set of documentation transferred between E&P companies, operators and contractors for the construction, procurement and operation of a field.

Royal Boskalis Westminster N.V. (Boskalis) has been awarded a contract by Samsung Heavy Industries for the transportation of the three topside modules of the riser platform and the topside of the processing platform for the Johan Sverdrup project offshore Norway. The contract carries a value of approximately USD 40 million. The modules will be transported by Dockwise in three journeys. A Dockwise type I heavy transport vessel will transport two topside modules of the riser platform with a total weight of more than 20,000 MT and a Dockwise type II vessel will transport the third 6,000 MT module in the first half of 2018. The modules will be transported from the yard in Geoje, South Korea to the project site offshore Norway where they will be offloaded.

Aker Solutions will deliver a concept study on a new processing platform for future phases of the Statoil-operated Johan Sverdrup North Sea field, Norway's largest oil find in three decades. The study includes design solutions for a tie-in of the platform and future satellites to the field center that is being developed in the project's first phase. The work will be carried out by Aker Solutions in Oslo and Stavanger and will be delivered in the summer. "Johan Sverdrup is of major importance to Norway's oil industry and we're very pleased to expand our involvement through work on future phases," said Valborg Lundegaard, head of engineering at Aker Solutions. The study is being carried out under the framework engineering agreement awarded to Aker Solutions for Johan Sverdrup in 2013.

Semi-submersible accommodation vessel owner and operator Prosafe informs that Lundin Norway AS has exercised an option to prolong the provision of semi-submersible accommodation vessel Safe Boreas at the Edvard Grieg Project in the Norwegian sector of the North Sea.   The one-month option extends on site operations through mid-December 2015 and has a total value of approximately $10 million. In addition, Lundin has a further one-month option.

Statoil, on behalf of the Johan Sverdrup license, has awarded Samsung the contract for decks for both the process and riser platforms. The total contract value is NOK 7 billion. The contract is a fabrication contract (FC) of decks for the process and riser platforms. Aker Solutions has previously been awarded engineering work and purchase of equipment packages for the two aforementioned decks. The function of the process platform, which weighs approx. 26,000 tonnes, is to ensure stabilisation of the oil and processing into rich gas. The riser platform, which weighs approx. 22,000 tonnes, will serve oil and gas exports, water and gas injection, as well as any future connections.

Statoil, on behalf of the Johan Sverdrup licence, has awarded two contracts at a total value of more than NOK 4.35 billion to Odfjell Drilling for drilling wells on the Johan Sverdrup field. Odfjell Drilling has been awarded contracts both for the Deepsea Atlantic semi-submersible rig and for drilling services on the fixed drilling unit to be installed on the Johan Sverdup field. The rig contract includes the charter of the Deepsea Atlantic rig for three years, starting from March 2016. In addition there are six 6-months options. The rig contract has a value of slightly more than NOK 2.5 billion. “This contract is an important milestone for the Johan Sverdrup project.

Statoil has, on behalf of the Johan Sverdrup partnership, awarded a contract to ABB for land-based power supply to phase 1 of the Johan Sverdrup field. The contract value is around NOK 1.1 billion, and covers delivery of electrical equipment for a converter station by the Kårstø processing complex at Haugsneset in the municipality of Tysvær, and a power module on the riser platform at the Johan Sverdrup field centre. The total cost of the power supply to phase 1 has been estimated at around NOK 6 billion (2015 value). ABB will provide high-voltage direct current (HVDC) equipment that will transform the onshore grid’s alternating current…

The licensees in the Johan Castberg and Snorre 2040 licences have decided to spend more time on the projects. “Castberg and Snorre 2040 are two major and important projects in our portfolio, and it is important that we find sound and robust development solutions for them,” says Ivar Aasheim, Statoil’s senior vice president for field development on the NCS. Statoil and its partners have put in an extensive effort to develop cost-effective solutions for the projects. “We see that our efforts have yielded results, and we are focused on reaping the full benefits of this in a way that ensures a sustainable and profitable utilisation of the resources in the Snorre and Johan Castberg fields. The recent decline in oil prices emphasises this,” Aasheim says.

Statoil, on behalf of the Johan Sverdrup partnership, will sign a contract with Aibel today for the construction of the deck for the drilling platform on the field. The contract is worth in excess of NOK 8 billion. The contract includes engineering work, procurement and construction (EPC) of the drilling platform deck. The platform deck will be built at the Aibel’s yard in Thailand and Haugesund, and at Nymo’s yard in Grimstad. Assembly and mechanical completion of the deck will be carried out at the Aibel’s yard in Haugesund with delivery in 2018. Installation on the field is planned for the same year. “The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf that will…

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP). The recommended practice developed by DNV GL provides guidance on the proper design and correct operation, as well as regular inspection and maintenance, of subsea cranes and lifting appliances. The aim is to reduce the overall risk and safeguard personnel during lifting operations and to improve the integrity and efficiency of equipment throughout its lifetime.

Lundin Petroleum AB, through its wholly owned subsidiary Lundin Norway AS, is pleased to announce that drilling of exploration well 33/2-1 in PL555 has commenced. The well will investigate the hydrocarbon potential of the Storm Prospect in PL555, which is located 200 km west northwest of Florø on the Norwegian west coast and approximately 65 km northwest of the Snorre Field. The main objective of well 33/2-1 is to test the reservoir properties and hydrocarbon potential of the Upper Jurassic Sandstones equivalent to the reservoir in the Magnus field on the UKCS approximately 35 km to the south. Lundin Petroleum estimates the Storm prospect to have the potential to contain unrisked, gross prospective resources of 89 million barrels of oil equivalent (MMboe).

Leak detection is a considerable challenge facing the industry, and DNV GL has therefore taken the lead in establishing a new Joint Industry Project (JIP). Twenty key industry players are partnering to develop a best practice for designing and implementing offshore leak detection systems. Over the last few years, following several oil releases, there has been an increasing focus by both operators and authorities on the environmental impact related to offshore oil and gas activities.

Statoil ASA (OSE: STL, NYSE: STO) has signed an agreement to exit the Brage licences, farm down in Gjøa and Vega and acquire a 15 % stake in the Edvard Grieg licence near the Johan Sverdrup field in the North Sea. This transaction with the German oil and gas company Wintershall gives Statoil net proceeds of USD 1.45 billion, and begins a strategic partnership between Statoil and Wintershall. The consideration to be paid by Wintershall includes a contingent consideration of USD 100 million relating to the production on Vega. "This transaction realizes significant value for our shareholders, demonstrates the value of our NCS portfolio, and further enhances the financial flexibility of Statoil.

Norway's Kværner ASA contracted to perform Edvard Grieg field (in the North Sea) offshore hook-up and commissioning assistance. Lundin Norway AS has confirmed an option in the Edvard Grieg topside contract for Kvaerner to perform the offshore hook-up and commissioning assistance. Estimated value is NOK 525 million. Kvaerner was in May awarded a contract by Lundin Norway AS to perform engineering, procurement and construction (EPC) of the topside for the Edvard Grieg platform, with an estimated contract value of NOK 8 billion. Lundin Norway AS has now confirmed an option in the contract to perform offshore hook-up and commissioning assistance, which will add approximately NOK 525 million to the contract value.