Lundin Petroleum AB has announced that its wholly-owned subsidiary Lundin Norway AS has entered into an agreement with Equinor Energy AS, under which Lundin Norway will acquire Equinor's entire 15% working interest in the Lundin Norway operated license PL 359, containing the Luno II oil discovery.

The acquisition takes Lundin Norway’s working interest in PL 359 to 65% and creates commercial and operational alignment between the Edvard Grieg and Luno II partnerships, realising significant benefits through optimisation of production and enhanced value from both fields. The transaction involves a cash consideration payable by Lundin Norway to Equinor, as well as Lundin Norway transferring its 20% working interest in PL 825, containing the Rungne exploration prospect, to Equinor.

The effective date of the transaction is Jan. 1, 2018 and completion is subject to customary government approvals.

Luno II is situated approximately 15 km south of the Lundin Norway operated Edvard Grieg platform on the Utsira High and has a gross resource range of between 40 and 100 MMboe. The development concept for Luno II is a subsea tie-back to the Edvard Grieg platform and the objective is to submit a PDO and sanction the project in early 2019.

Lundin Norway is the operator of PL 359 with a current 50% working interest. The partners are OMV with 20% and Equinor and Wintershall with 15% each.