Sustainable growth based on a long-term strategy
Through the downturn in the industry, Lundin Norway has continued to invest in its employee base. More than 30 percent of the current workforce has in fact been recruited in the period after oil prices started to fall in 2014. This has been made possible by our long-term strategy to secure sustainable growth.
Lundin Norway has experienced constant growth ever since the company was established in 2004 and has grown to become a leading operator on the Norwegian continental shelf. The substantial growth has been organic, driven almost entirely by its own discoveries.
“There are two main reasons that have allowed us to grow so substantially through the downturn our industry has experienced since 2014. We have maintained constant focus on not building up a larger organisation than we really need. This means that we have no positions that we could do without,” says Kristin Færøvik, Managing Director in Lundin Norway.
“Secondly, we have dared to have a long-term mind-set. Our industry will always experience fluctuations, but at all times, we maintain a long-term perspective for our business. As everyone knows, it may take a decade or more from discovery to production. The owners of the company have the willingness to invest today for what they believe will be profitable in the future. That is one of the company’s major strengths,” says Færøvik.
She also points out that the entire industry is dependent on new discoveries being made on the Norwegian shelf.
“Without new development projects, it is obvious that employment and revenues for society will decline,” says Kristin Færøvik.
Further exploration, new projects
In many ways, an active exploration strategy has been Lundin Norway’s trademark. This strategy has paid off. Edvard Grieg and Johan Sverdrup are the company’s key assets but several other discoveries have been made that are being matured towards potential developments.
A plan for development and operation (PDO) for Luno II will be submitted early next year. Luno II is planned as a subsea tie-back to the Edvard Grieg platform. In the southern Barents Sea, the Alta and Gohta discoveries could be our next full-field development. While on Rolvsnes, we are planning an extended well test of the first reservoir on the Norwegian shelf made up of fractured basement rocks, with the objective of getting it sanctioned in early 2019
“And we do not rest on our laurels,” says Færøvik. “Our exploration programme for 2019 will demonstrate that we have no intention of slowing down.”