Lundin Increases Stake in Wisting

Deal with OMV raises interest to 35% on Barents Sea project slated to come online in 2028.

Wisting FPSO
Wisting FPSO.

Lundin Energy has entered into an agreement with OMV to acquire its entire 25% working interest in the Wisting development in the southern Barents Sea for $320 million. The acquisition takes Lundin Energy’s working interest to 35% in the 500-MMBO development.

In addition to the 35% stake in Wisting, Lundin Energy also holds surrounding acreage which is estimated to hold gross unrisked prospective resources of a further 500 MMBO. Wisting will be one of the largest development projects in Norway over the next few years, to become the next Barents Sea production hub, according to Lundin.

Concept selection is anticipated shortly, and the submission of the Plan of Development and Operation is targeted by year-end 2022 to qualify for the temporary tax incentives established by the Norwegian government in June 2020.

With first oil scheduled for 2028, the acquisition provides a material contribution to sustaining the company’s production in the long term. The Wisting development is also planned to have power supplied from shore, which is aligned with the company’s decarbonization strategy and its commitment to becoming carbon neutral by 2023.

The transaction, which has an effective date of 1 January 2021, is subject to the customary Norwegian regulatory approvals, and is expected to complete during Q4 2021.

The other partners in Wisting are Equinor, the development-phase operator, with a 35% working interest, Petoro with a 20% working interest, and Idemitsu with a 10% stake.