Lundin Petroleum Chairman Sees Bigger North Sea Oil Reserves

Lundin Petroleum AB (LUPE) may “significantly” raise estimated reserves from the biggest oil discovery in Norway in 20 years, Chairman Lukas Lundin said.

The offshore fields of Avaldsnes and nearby Aldous Major South may contain an estimated 1.2 billion to 2.6 billion barrels of recoverable oil, up from a previous estimate of a combined 500 million to 1.2 billion, Lundin Petroleum said in a statement last month.

“It’s going to be bigger than we think it is,” and will help lift shares of the Stockholm-based oil company, Lundin said yesterday in an interview at his office in downtown Vancouver. “This is going to produce oil for 40 years.”

Lundin Petroleum and partner Statoil ASA (STL) are continuing to drill near the discoveries and may begin studying later this year how to best develop the finds. Lundin Petroleum has the greatest potential among Lundin Group’s publicly traded companies to outstrip investor expectations in the next year, Lundin said in the interview.

Statoil operates the Aldous Major North and South exploration license, in which Petoro AS holds 30 percent, Det Norske Oljeselskap ASA (DETNOR) 20 percent and Lundin 10 percent. Lundin holds 40 percent in the Avaldsnes license, in which Maersk Oil owns 20 percent and Statoil 40 percent.

“You need one big asset that drives the company through good and bad times and this is that kind of asset,” he said.

Lundin Petroleum fell 2 kronor, or 1.6 percent, to 127 kronor in Stockholm Stock Exchange trading at 5:29 p.m local time.

Statoil rose 1.7 kroner, or 1.3 percent, to 130.20 kroner in Oslo Stock Exchange trading at 5:25 p.m local time.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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