Lundin will acquire Equinor’s 15% interest in the license PL359, containing the Luno II discovery, increasing Lundin’s interest in the license to 65%.
Lundin will pay Equinor a cash consideration and transfer its 20% stake in PL825, which contains the Runge exploration prospect.
The effective date of the transaction is 1 January 2018 and completion is subject to customary government approvals.
Alex Schneiter, CEO and President of Lundin Petroleum commented:
“I am very pleased to announce this strategic acquisition on the Utsira High of a further 15 percent 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.”
Luno II is situated approximately 15 km south of the Lundin Norway operated Edvard Grieg platform on the Utsira High and has a gross resource range of between 40 and 100 million barrels of oil equivalent (MMboe). 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 Norway is the operator of PL359 with a current 50 percent working interest. The partners are OMV with 20 percent and Equinor and Wintershall with 15 percent each.
