Norway’s imaginative and prescient of building a brand new main oil province off its northern tip has suffered one other blow.

Lundin Petroleum AB, one of the energetic explorers within the Norwegian Arctic, lower useful resource estimates for its Alta discovery within the Barents Sea and gained’t develop the venture independently, the corporate mentioned on Monday. The subject and the close by Gohta discover represented one of many hottest candidates for brand spanking new initiatives within the Barents, an space estimated to carry two-thirds of the nation’s undiscovered oil and fuel.


Lundin didn’t present a brand new estimate for Alta, which along with Gohta was beforehand thought to have sources of as a lot as 390 million barrels of oil equal. The firm mentioned the 2 discoveries could possibly be linked to Equinor ASA’s Johan Castberg subject, which is because of begin manufacturing in 2022, or to a different future growth.

Regardless, until Lundin finds extra oil close by, the 2 initiatives on their very own gained’t convey much-needed infrastructure like platforms or manufacturing vessels to the realm, which in flip may have made different developments doable.

Despite the potential for huge sources within the Barents Sea, solely two fields have began manufacturing. Lundin’s newest downgrade for Alta follows different disappointments for the area, the place the primary 4 wells drilled by Equinor in a brand new space failed to provide industrial discoveries. After a document exploration yr in 2017 with 17 wells, the entire tally fell to seven in 2018 and 5 final yr, based on the Norwegian Petroleum Directorate.

The discount at Alta exhibits a “restricted pipeline” of initiatives for Lundin in a portfolio the place the majority of reserves is linked to the large Johan Sverdrup subject within the North Sea, Citigroup Inc. analysts mentioned in a be aware to purchasers. The lower additionally highlights “the shortage of significant exploration success lately,” it mentioned.

In a primary signal its Barents optimism had limits, Lundin mentioned in 2018 that it will must rethink its efforts within the area if no vital new oil discoveries have been made by the tip of 2020.

Still, Lundin raised its general oil reserves by 52 million barrels on the finish of final yr, based on the Monday assertion. This mirrored ultimate funding choices on two initiatives and good efficiency at its Edvard Grieg subject. The firm’s shares rose zero.6% in Stockholm buying and selling as of 11:23 a.m. native time.


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