The transaction is expected to enable Lundin Energy to increase its working interest to 35% in the 500 million barrel oil (MMbo) development and add net 130MMboe fully appraised contingent resources


First oil from the Wisting development is expected to be produced in 2028.(Credit: Guilherme Reis from Pixabay)

Lundin Energy, through its subsidiary Lundin Energy Norway, has signed an agreement with OMV to acquire additional stake in the Wisting development in the southern Barents Sea, Norway.

Under the terms of the agreement, the company will acquire a 25% stake in the development for $320m.

The transaction is expected to enable Lundin Energy to increase its working interest to 35% in the 500 million barrel oil (MMbo) development.

The deal will allow the company to strengthen its position in the Wisting area, which is expected to become its core production area.

Lundin Energy president and CEO Nick Walker said: “The acquisition of a further stake in the high quality Wisting development, is a perfect example of how we look to supplement our organic growth strategy with opportunistic acquisitions, fitting our ambition to sustain the Company long term.

“With strong project economics, Wisting will be powered from shore and will be a significant contributor to sustaining our long-term production profile. I am excited to have increased our position in Wisting, at a price which I believe is very value accretive to the business.”

With the stake acquisition in the Wisting, Lundin Energy will add net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources.

Subject to the customary Norwegian regulatory approvals, the transaction is expected to be completed during the fourth quarter of 2021.

The other partners in the Wisting development, which is anticipated to become the next Barents Sea production hub, include Equinor with a 35% stake, Petoro with 20% and Idemitsu, which holds the remaining 10% stake.

The partners are targeting to submit a Plan for Development and Operation (PDO) by end of 2022 to gain the temporary tax incentives established by the Norwegian Government in June last year.

Wisting’s development concept, which will include power supply from shore, is said to be in line with Lundin Energy’s decarbonisation strategy and the commitment to become carbon neutral by 2023.

During the development phase, Norwegian oil and gas company Equinor hold the operatorship, which will be transferred to OMV for the operations phase.

First oil from the development is expected to be produced in 2028.