The Edvard Grieg field has now produced the entire volume of oil and gas that formed the basis for the decision to develop the field. And yet, there is significantly more left to produce.
The reserves estimate that was the basis for the Storting’s (Norwegian Parliament’s) consideration of the plan for development and operation (PDO) was 186 million barrels of oil equivalent in 2012. Now, in early April 2021, we have surpassed that landmark volume. And what’s more, the latest reserves estimate for the Greater Edvard Grieg Area indicates 224 MMboe left to produce, with 164 MMboe coming from Edvard Grieg itself. The story doesn’t even end there; we believe there is actually up to 800MMboe of total resources in the area which we will continue to try and unlock.
“Our calculations in 2012 showed that Edvard Grieg would be a profitable development with 186 million barrels. The total estimate has now increased to 350 million barrels at Edvard Grieg and 410 million barrels for the Greater Edvard Grieg Area. And since the platform is already fully paid for, those extra barrels will be extremely valuable – particularly for the Norwegian State and society,” says Kristin Færøvik, Managing Director of Lundin Energy Norway.
The reserves estimate has been boosted several times since the field came on stream in 2015. Most recently last autumn when we added an additional 50 million barrels of oil equivalent. In simple terms, the increases are the result of more oil within the reservoir and an increasingly better understanding of the subsurface. Together with technologies like 4D seismic, the Edvard Grieg team have been able to continuously improve the accuracy of the reservoir model and optimise the drainage strategy.
To achieve all of this, Lundin Energy Norway pursues a strategy of extensive data collection through pilot and appraisal wells, and repeated 4D seismic imaging of the reservoir. Two pilot wells and three appraisal wells have been drilled since the development plan was submitted.
“This is considerably more data collection than most others do, but now we can see that this has been a valuable strategy,” Kristin Færøvik says.
Most to the greater community
The incredible value represented by the Edvard Grieg field, naturally benefits both the operating company and the licence partners. Nevertheless, it is the Norwegian State and the greater community that are the biggest winners, through the long established and collaborative tax system.
“This is actually an element that makes the job we do even more meaningful,” says Kristin Færøvik. “These are resources of the entire Norwegian society we are managing. At the same time, the system is set up to ensure that when the companies make money, the State also significantly benefits.”