|By Marketwired .||
|February 13, 2014 02:25 AM EST||
STOCKHOLM, SWEDEN -- (Marketwired) -- 02/13/14 -- Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) (Lundin Petroleum), through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), is pleased to announce that the partnerships for the Johan Sverdrup field have agreed a development concept for Phase 1 of the Johan Sverdrup field.
Further to Lundin Petroleum's announcement on 20 December 2013, the final concept selection for Phase 1 of the development of the Johan Sverdrup field has now been decided by all partners in the Johan Sverdrup field, which spans across three licences: PL501, PL265 and PL502. Front end engineering for Phase 1 is currently ongoing and a plan of development will be submitted for approval by the Norwegian government in early 2015.
The full field gross recoverable contingent resource range of 1,800 to 2,900 million barrels of oil equivalent (MMboe), announced by the pre-unit operator Statoil Petroleum AS in December 2013, makes Johan Sverdrup one of the five largest fields discovered on the Norwegian Continental Shelf and when the field has reached forecast plateau production of 550,000 to 650,000 barrels of oil equivalent per day (boepd), field production is likely to represent around 25 percent of all Norwegian oil production.
Phase 1 - Field centre
Due to Johan Sverdrup's size and lateral extension over a 200 km2 area, the field will be developed in several phases and with multiple fixed platform installations. Phase 1 of the development will contain the field centre of four fixed platform installations as well as additional subsea installations. The field centre will consist of one processing platform, one riser platform, one wellhead platform with drilling facilities and one living quarter platform. The platforms, which will be installed in 120 metres of water, will be installed on steel jackets and will be bridge-linked.
The first phase of the development is scheduled to start production in late 2019 and is forecast to have a gross production capacity of between 315,000 and 380,000 boepd. It is anticipated that between 40 and 50 production and injection wells will be drilled to support Phase 1 production, of which 11 to 17 wells will be drilled prior to first oil with a semi-submersible rig to facilitate Phase 1 plateau production.
The gross capital investment for Phase 1, which includes oil and gas export pipelines as well as a power supply from shore, is estimated to between NOK 100 to 120 billion, including contingencies and certain market allowances for potential future increases in market rates. The Phase 1 field centre will also facilitate certain spare capacity for future phases and potential enhanced recovery. The licence partners are continuously working to lower the level of investment for Phase 1.
The Johan Sverdrup oil and gas production will be transported to shore via dedicated oil and gas pipelines. A 274 km 36"oil pipeline will be installed and connected to the Mongstad oil terminal on the west coast of Norway. A 165 km 18" gas pipeline will be installed and connected to the Karsto gas terminal for processing and onward transportation. The export pipelines are estimated to cost gross NOK 11 billion.
The Johan Sverdrup resources not developed as part of Phase 1 will be developed through subsequent development phases. The scope and costs of further development phases has not yet been addressed by the Johan Sverdrup partners and will form the basis of later investment decisions.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "Following the discovery of the Johan Sverdrup field by Lundin Petroleum in 2010 the concept selection decision is a major milestone for Lundin Petroleum, our Johan Sverdrup partners and the Norwegian society. The development of this field will be one of the largest project undertakings in the North Sea since the 1980s. The quality, size and location of this field are a unique combination and as a result we believe it will create significant value for all stakeholders. It is often quoted in the oil industry that big oil fields get bigger and we certainly believe that this will be the case for Johan Sverdrup. On the Norwegian Continental Shelf a number of the larger mature fields are achieving recovery factors at or exceeding 70 percent and it will be the objective to achieve similar results for Johan Sverdrup."
Lundin Norway is the operator of PL501 with a 40 percent interest, and has a 10 percent interest in PL265. The PL501 partners are Statoil Petroleum AS with a 40 percent interest and Maersk Oil Norway AS with a 20 percent interest. The PL265 partners are Statoil Petroleum AS, operator of PL265, with a 40 percent interest, Det norske oljeselskap ASA with a 20 percent interest and Petoro AS with a 30 percent interest. Lundin Norway has no interest in PL502. The PL502 partners are Statoil Petroleum AS, operator of PL502, with a 44.44 percent interest, Petoro AS with a 33.33 percent interest and Det norske oljeselskap ASA with a 22.22 percent interest.
Lundin Petroleum will hold a conference call today, Thursday 13 February 2014 at 11.00 CET (10.00 GMT) where Ashley Heppenstall, CEO, Lundin Petroleum will comment.
To listen to the presentation and participate in the questions and answer session, please dial:
Sweden: +46 8 505 564 74
International: +44 203 364 53 74
International toll free number: +1 855 753 2230
The slides for the presentation will be posted on Lundin Petroleum's website prior to the conference call, www.lundin-petroleum.com.
Facts about the Johan Sverdrup field (PL 265, PL 501 and PL502)
-- Johan Sverdrup is an oil field discovered by Lundin Petroleum in 2010. -- Johan Sverdrup consists of a combined discovery which makes up one field. -- Location: Utsira High in the Norwegian North Sea, 140 kilometres west from Stavanger. -- The water depth is 110 metres, and the reservoir depth is around 1,900 metres below mean sea level. -- Expected approval of the plan for development and operation (PDO) for Phase 1 during the Norwegian Parliament's (Stortinget) spring session in 2015. -- Production start is expected at the end of 2019. -- The field has a production horizon until 2050. -- As part of the design basis it was decided early in 2013 that the field will be developed in phases. The first phase is the establishment of a field centre consisting of four platforms. -- The oil will be transported via pipeline to the Mongstad terminal in Hordaland, and the gas will be transported to Statpipe and then further to the Karsto processing plant in northern Rogaland. -- The field will receive power from shore.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable reserves of 194 million barrels of oil equivalent (MMboe).
This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980).
Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.
Reserves and Resources
Unless otherwise stated, Lundin Petroleum's reserve and resource estimates are as at 31 December 2013, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless otherwise stated, all reserves estimates contained herein are the aggregate of "Proved Reserves" and "Probable Reserves", together also known as "2P Reserves". For further information on reserve and resource classifications, see "Reserves, Resources and Production" in the Company's annual report.
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources. Unless otherwise stated, all Prospective Resource estimates contained herein are reflecting a P50 Prospective Resource estimate. Risked Prospective Resources reported herein are partially risked. They have been risked for chance of discovery, but have not been risked for chance of development.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Apr. 29, 2017 09:30 PM EDT Reads: 2,273
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 29, 2017 09:30 PM EDT Reads: 2,529
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 29, 2017 09:15 PM EDT Reads: 2,548
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 29, 2017 09:15 PM EDT Reads: 1,551
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 29, 2017 08:30 PM EDT Reads: 2,444
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 29, 2017 08:15 PM EDT Reads: 3,081
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
Apr. 29, 2017 07:30 PM EDT Reads: 818
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 29, 2017 07:15 PM EDT Reads: 1,342
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 29, 2017 07:00 PM EDT Reads: 1,541
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Apr. 29, 2017 06:15 PM EDT Reads: 1,003
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 29, 2017 05:15 PM EDT Reads: 1,581
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 29, 2017 05:15 PM EDT Reads: 1,296
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 29, 2017 05:00 PM EDT Reads: 1,643
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Apr. 29, 2017 04:45 PM EDT Reads: 3,373
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Apr. 29, 2017 04:00 PM EDT Reads: 1,061