Norway's offshore Volund field achieves first production

Lundin Petroleum has announced that the Volund development offshore Norway operated by Marathon Oil has achieved first oil production. The Volund field is located in Block 24/9 of the Norwegian sector of the North Sea, approx. 8 km south of the Alvheim field in Production Licence PL150.
The Volund field is a subsea tieback to the Alvheim floating, production, storage and offloading (FPSO) vessel. The current production from the Alvheim field and the third party Vilje field is approx. 140,000 boepd, which is 20,000 boepd above the nameplate capacity.

As a result of the performance of the Alvheim field there is currently no spare capacity on the Alvheim FPSO. Volund will be produced should capacity become available on the Alvheim FPSO and in any case by mid 2010 when the Volund field has secured guaranteed production capacity of 25,000 boepd.
The Volund field is expected to reach a peak production of approx. 25,000 boepd gross (8,750 boepd net to Lundin Petroleum), the timing of which is subject to available processing capacity on the Alvheim FPSO. The second phase of the Volund development, which involves the drilling of a further, two horizontal production wells will commence in late 2009.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments as follows: "First production from the Volund field is good news for Lundin Petroleum. As Alvheim is producing above forecast we will have to wait until 2010 for plateau production from Volund. However Volund will ensure that Lundin Petroleum continues to deliver production growth in 2010."
Lundin Petroleum holds a 35 % working interest in Volund with Marathon Oil as operator with the remaining 65 % working interest. Lundin Petroleum holds a 15 % working interest in the Alvheim field and associated FPSO. Marathon is the operator.