Lundin Petroleum will look to spend almost $2.1billion (£1.3billion) on oil projects over the next year – after admitting it faces delays on the Brynhild and Boyla fields.
The Brynhild North Sea field, which Lundin operates a 90% stake in, is expected to come online before summer following the completion of subsea installation and work on the Haewene Brim FPSO.
But ongoing weather issues in the North Sea has slowed the development of the field, which will produce 10,800boed at peak, and increased costs on the project.
Meanwhile the Boyla field has seen its first oil date slip from the end of this year to the first quarter of 2015 following the delayed arrival of the Transocean Winner rig.
But Lundin, which will operate the massive Edvard Grieg field, said work on the project was now on schedule and in budget, with £427million to be spent on the field development over 2014 – including completing and installing the jacket, pipelines and development drilling ahead of coming onstream next year.
The firm also announced plans for 19 new exploration wells, costing more than £230million, over the next year in Malaysia, Indonesia, France and Norway in the hunt for 620million barrels of oil.
“Lundin Petroleum remains a very active exploration company and I am pleased to announce our 19-well exploration campaign during 2014 which exposes the Company to over 600 MMboe of unrisked prospective resources,” said chief executive Ashley Heppenstall.
“Our 2014 appraisal campaign can also make a material impact on our reserves base with a successful outcome from the six appraisal wells having the potential to double the company’s current 2P reserve base.
“We remain on track to more than double our 2013 production in less than two years from now with new production from Brynhild, Boyla, Bertam and Edvard Grieg.”