Lundin Petroleum Granted Drilling Permit For Morskaya-1 Well In Russian Caspian
Sweden’s Lundin Petroleum on 8 February said it had received a drilling permit for the Morskaya-1 well in the Lagansky Block in Russia’s offshore section of the Caspian Sea. Lundin, which holds a 70% stake in the exploration license, said it would begin mobilizing and installing an already constructed marine drilling complex in April 2008. Lundin said the drilling permit had been issued by Russia’s Federal Service for Supervising Natural Resources (Rosprirodnadzor) and drilling would commence after final acceptance of the commissioned installation by the relevant inspection authorities. The Russian-designed complex operates on a zero discharge basis. Russia’s Federal Subsoil Use Agency (Rosnedra) last October issued the company with a license amendment to drill two wells in 2008 and two in 2009, plus the acquisition of 300 sq km of seismic. The Lagansky Block contains the Morskaya, Laganskaya and Petrovskaya structures. Reserves are estimated at 640-800mn boe. Several other fields are in the vicinity (MEES, 29 October 2007).
In its 8 February statement, Lundin said Russian gas monopoly Gazprom had a call option to acquire 50% plus one share of the block. Lundin has a call option to acquire an additional 30% from minority shareholders. If both options are exercised, Lundin will retain 50% minus one share and Gazprom will hold 50% plus one share. Lundin in October 2006 delayed the original drilling date for the Morskaya-1 well until the second quarter of 2007 (MEES, 23 October 2006). Lundin took over operatorship and a 70% interest in the undrilled Lagansky block when it bought Canada’s Valkyries Petroleum in May 2006. Valkyries acquired 2D seismic data which revealed two drilling prospects.
Copyright MEES 2008.
