Lundin Spuds Appraisal Well in Luno II Discovery in Norway

Prospects of Norway’s oil and gas companies significantly improved in the last hours. Unions agreed on a supply base deal that averted strikes on Saturday, while Lundin Petroleum moved forward with its appraisal well 16/4-8S.

“We’re satisfied to have reached a settlement with Industry Energy through mediation and thereby averted strike action,” Jan Hodneland, who heads the negotiating team from the Norwegian Oil and Gas Association, commented in a note released on Monday.  

The Unions agreed on a significant pay rise, with a combination of supplements and a general rise. The supplement for working on public holidays was raised from 55% to 100%, while shift workers had their supplement for working weekends increased from 55 to 65%.

‘In addition, a general rise of NOK 0.75 per hour was agreed,’ the press release explains, adding that further negotiations will take place in July and August.

Also on Monday, Stockholm-headquartered Lundin Petroleum confirmed its interest for the Luno II discovery. 

‘Lundin Petroleum AB (Lundin Petroleum), through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), is pleased to announce that drilling of appraisal well 16/4- 8 S on the Luno II discovery has commenced… The main objective of well 16/4-8 S is to test the reservoir properties and verify the petroleum potential. The reservoir is expected to be of Jurassic/Triassic age,’ reads a communiqué published by the company.