Delays for Lundin Petroleum in Norway

Company 'frustrated' with slow pace of development.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   June 9, 2014 at 9:24 AM

STOCKHOLM, Sweden, June 9 (UPI) -- Lundin Petroleum said Monday progress at the Brynhild field in Norwegian waters was delayed because of Shell's issues in the British sector.

The Brynhild project is an offshore field linked to the Pierce field, which is operated by Shell in British waters.

Lundin, a Swedish energy company, said progress was moving slower than expected because of issues related to the commissioning of a floating production, storage and offloading vessel by Shell.

"We are disappointed and frustrated that the Haewene Brim FPSO is still not ready to accept Brynhild production," Lundin President Ashley Heppenstall said in a statement Monday.

Developments in Norway, one of Europe's largest oil and gas producers, represent more than 70 percent of the production forecast for Lundin. The company in April said it spent roughly $127 million on exploration programs during the first quarter of the year without much success.

"The delay in first production has clearly impacted our 2014 production guidance but we still retain our production guidance for 2015 of approximately 50,000 barrels of oil equivalent per day," Heppenstall said.

Lundin said Brynhild should still start operations in late 2014 despite the setback.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Ford recalls 432,000 North American vehicles over software bug
Aetna to acquire Humana for $37 billion in cash, stocks
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue