Lundin Petroleum’s wholly owned subsidiary, Lundin Norway AS, has received final approval for the plan for development and operation (PDO) for the Edvard Grieg field from the Norwegian parliament.

The Edvard Grieg is the first standalone development project operated by Lundin Petroleum on the Norwegian continental shelf (NCS).

First production from the Edvard Grieg field in Production License 338 is expected in late 2015 with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boe/d).

The capital cost of the Edvard Grieg development including platform, pipelines and production wells is estimated at $4.0 billion. The Edvard Grieg platform design capacity will accommodate in excess of 160,000 boe/d when Draupne production is combined with that from the Edvard Grieg field, said the company.

Jacket, topside, drilling and marine installation contracts have already been awarded subject to final PDO approval.

Ashley Heppenstall, president and chief executive officer of Lundin Petroleum, commented, "Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boe/d by late 2015. Our production will increase further with the subsequent development of the Johan Sverdrup discovery in the southern Utsira High."

Lundin Petroleum is the operator and has a 50% working interest in the Edvard Grieg field; Wintershall Norge AS, 30%; and RWE Dea Norge AS, 20%.