UK GBA ticks Lundin boxes
The Swedish-headquartered producer says it is comfortable sticking with Norway. But could JOG’s farm-out process attract it over the median line?
“The core focus of our business is organic growth through the drillbit,” Nick Walker, CEO of Norwegian continental shelf (NCS) specialist Lundin Energy told a March investor virtual town hall. “But acquisitions can play a part, and we have done a number of smaller ones over the years, including Wisting last year.” An average finding cost of $0.80/bl oe across a 1bn bl/oe+ resource portfolio plays a role in preferring organic to inorganic growth—"you cannot buy reserves at that price”, says Walker. But alongside near-field exploration and drilling in both mature and frontier NCS areas, he sees a role for “opportunistic” acquisitions. “We have to be able to create value from them. It is no
Also in this section
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them