Lundin Petroleum report the details of its USD 960 million development, appraisal and exploration budget for 2012.

The budget represents a 40 percent increase on the forecast 2011 capital expenditure.

The development budget for 2012 is USD 500 million with a major focus on development activities in Norway.

1. The development of the Luno field (WI 50%) will commence in 2012 with net expenditure forecast at close to USD 200 million.

2. The Brynhild field (WI 70%) plan of development was approved in November 2011. The development involves the drilling of 4 production- and water injection wells and the installation of a subsea system for the tieback of the Brynhild field to the Haewene Brim FPSO located at the Shell operated Pierce field in the United Kingdom. The Brynhild field is forecast to commence production in late 2013 at a plateau production rate of 8,400 boepd, net.

3. The Gaupe field (WI 40%) development is substantially complete. The development wells have been successfully completed and the modifications to the Armada platform are substantially complete. First production from the Gaupe field is now forecast at the end of first quarter 2012 due to the recent bad weather in the North Sea which has delayed pipe laying activities.

4. There will be further development activity in 2012 on both the Alvheim field (WI 15%) and Volund field (WI 35%) with new production wells to be drilled.

In the France Paris Basin the redevelopment of the Grandville field will be completed with the drilling of a further six development wells.

The exploration and appraisal budget for 2012 is USD 460 million with a major focus on Norway which accounts for USD 360 million of this amount. The work programme involves the drilling of 24 exploration and appraisal wells in Norway, Malaysia, France and the Netherlands.

Tags: Lundin Petroleum