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LIVE

Friday, 21 November, 2008, 19:20 GMT | more >>

Lundin delays Morskaya-1 spud

By Upstream staff

Sweden's Lundin Petroleum will spud the Morskaya-1 well in the Lagansky Block, in the Russian sector of the Caspian Sea, next year.

In a statement, Lundin said it had been working closely with Gazprom since signing an option agreement which gives the Russian gas giant the option to take an effective 50% plus one share interest in the Lagansky Block licence.

Progress has been made in obtaining amendments to the Lagansky Block licence commitments from Russia's licensing agency, Rosnedra, and to receiving the final drilling permit approvals.

However, due to the onset of the winter season in the northern Caspian, work on Morskaya-1 has been pushed back until the second quarter of 2008. At least one further exploration well will be drilled on Lagansky next year.

Lundin boss Ashley Heppenstall said: "As a result of the working relationship with Gazprom, we have achieved good progress in relation to the licence amendments and permitting issues associated with the Lagansky Block. I am confident that these issues will be successfully completed. We have made major efforts to mobilise our dr illing operation in 2007 but with the onset of winter it is prudent to reschedule the exploration drilling to 2008."