Lundin Approved for Drilling Near Snohvit

The Norwegian Petroleum Directorate (NPD) has today approved Lundin Petroleum to begin drilling an exploration well on production licence 490, located near the massive Norwegian Snohvit gas field.

The approval gives Lundin the go-ahead to drill an exploration well on the Barents Sea licence, which was first granted in 2007. Lundin is the operator of the licence with a 50 per cent stake. Partners in the licence, Spring Energy and Noreco, hold a 30 per cent and 20 per cent stake each, according to information on Lundin Petroleum's website.

Licence 490 takes in parts of three separate blocks, blocks 7120/4, 7120/5 and 7120/6 and has yet to be explored. Wildcat well 7120/6-3 S will be the first exploration well drilled by Lundin Petroleum on the licence and will be drilled from the Transocean Arctic drilling facility, an NPD statement said today. The well is currently the only well to be drilled on the licence, according to Lundin's current drilling programme for the asset.

The drilling permit is approved by the NPD under Section 8 of its Resource Management Regulations. Though this drilling permit has been received, operations on the licence are contingent on Lundin receiving the relevant regulatory approvals from the appropriate authorities.