Lundin Exits Oil Business for Renewables Focus
The company has renamed itself Orrön Energy and will be a pure-play renewables business. Lundin's E&P business was transferred to Aker BP, closing a $14-billion deal announced in December 2021.
Lundin Energy has changed its name to Orrön Energy and is now a pure-play renewables business following the sale of its exploration and production (E&P) business to Aker BP. Orrön boasts a portfolio of high-quality and low-cost assets in the Nordics and becomes the new renewables growth company within the Lundin Group of Companies. With cash-flowing assets, no debt, and financial capacity of up to $180 million for acquisitions, Orrön Energy said it is in position to take advantage of opportunities in the energy transition.
Orrön’s assets include a 50% interest in the MLK wind farm, the third-largest in Finland.
OX2 AB constructed the wind farm under an engineering, procurement, and construction contract and will remain responsible for its operation, maintenance, and technical management. Commercial handover took place in March 2022and the wind farm is now operating at full capacity.
MLK will produce around 400 GWh per annum gross, from 24 wind turbines of 5.5-MW each. The turbines have a hub height of 141–151 m, and the total installed capacity is 132 MW.
The company’s other operating asset is the Leikanger hydropower plant north of Bergen in western Norway. Orrön holds a 50% stake in the project.
The power plant was constructed by and remains operated by Sognekraft, which also owns the remaining interest. The hydropower plant became fully operational in March 2021 with water sourced from two river systems (Grindselvi and Henjaelvi) and eight river inlets. The capacity of the plant is 77 MW and gross annual production is estimated to be about 200 GWh.
The company also owns 100% of the the Karskruv onshore wind farm in southern Sweden. As of last March, the project started construction and civil works which are progressing on schedule with the facility planned to be operational in late 2023. Twenty 4.3-MW wind turbines are expected to be installed in 2023, generating total production of an estimated 290 GWh per annum.
Lundin’s E&P business was transferred to Aker BP on 30 June, closing a $14-billion deal announced in December 2021. The merged company will be positioned as the No. 2 producer on the Norwegian Continental Shelf, with a combined oil and gas production of more than 400,000 BOE/D and a resource base estimated at 2.7 billion BOE.
Aker BP is now owned by Aker (21.2%), BP (15.9%), Nemesia (14.4%), and other Aker BP and Lundin Energy shareholders (48.6%).