Lundin Energy Norway has been nominated for a prestigious award for extensive formation testing and data acquisition from exploration and production wells. The Norwegian Petroleum Directorate presents the IOR award every two years.
Lundin Energy Norway is one of three nominees for the Norwegian Petroleum Directorate’s IOR award. IOR is short for ‘Improved Oil Recovery’. According to the Norwegian Petroleum Directorate, the award is given to players deserving of particular recognition for creativity, persistence and appetite for risk as regards utilising innovative methods and technology to increase the recovery rate of oil and gas from a field.
The basis for Lundin’s nomination is primarily attributed to use of the Drill Stem Test (DST), also called formation testing. Formation testing provides a good indication of how oil and gas will flow in the reservoir and into wells. Formation testing is not frequently used on the Norwegian shelf, and the jury believes that Lundin Energy Norway is a leader in this area for wells in both the North Sea and the Barents Sea.
The jury goes on to substantiate the nomination with the marked improvement in the recovery factor on the Edvard Grieg field in the North Sea. When we submitted the PDO for the Edvard Grieg field, we expected a recovery factor of 38 per cent. In 2019, this factor was increased to 52 per cent, the equivalent of 96 million barrels of extra oil equivalent. This would not have been possible without extensive formation testing and systematic data acquisition in the form of e.g. core samples and logs. Knowledge from formation testing in the North Sea and the Barents Sea will provide a better basis for making decisions about where to place wells, and could at best reduce the need for wells.
The company’s willingness to test complex reservoirs that are new on the Norwegian shelf is also emphasised by the jury. Large parts of the reserves in Edvard Grieg are located in reservoir types that are new on the Norwegian shelf; for example, fractured basement rock. Lundin’s considerable data acquisition and analyses have yielded a better understanding of the geology and reservoir properties. In turn, this has resulted in a better drainage strategy.
The jury received 24 proposals this year. Three of them have now been chosen as finalists. The IOR award is given to companies, production licences, projects or individuals. The jury chooses the winner based on how they satisfy the following criteria:
- Implementing new technology or established technology applied in a new way
- Smarter work methods and processes
- Project maturity
- Appetite for risk, boldness and intrepidity
- Excellent research
The two other finalists are researcher Geir Evensen and the licensees on the Grane field in the North Sea. The winner of this year’s award will be announced in early autumn.
You can read more about the IOR award and this year’s nominees here.