Norway-focused Lundin Petroleum to be carbon neutral by 2030

London — Norway-focused Lundin Petroleum announced Monday a goal to become carbon neutral in its operations by 2030, and a proposed name change to Lundin Energy.

Lundin, which produces mainly oil and only minimal amounts of gas, said a number of its assets were already on track to take electricity from Norway's domestic grid, which is mainly based on hydro power, a trend for newer Norwegian facilities.

The assets include Lundin's flagship Edvard Grieg field and the giant Johan Sverdrup field, which is operated by state-controlled Equinor, with Lundin on 20%, and is to be a catalyst for power generated onshore.

Lundin said in a statement its production this year would have a carbon intensity of 4 kilograms of CO2 per barrel of oil equivalent and this would drop to below 2 kg/boe from 2023, versus a world average of 18 kg/boe.

The second phase of the Johan Sverdrup field, due on stream in late 2022, will expand the trend of power from shore as electricity capacity will rise to 300 MW from 100 MW and the Sverdrup facilities will feed power to the nearby Edvard Grieg field, operated by Lundin, and the Ivar Aasen field, operated by Aker BP.

"We have a target of 2030 to reach carbon neutrality across our operations and we have set out a realistic and deliverable pathway toward this," CEO Alex Schneiter said.

The proposal by Lundin's board to change the name to Lundin Energy "represents our ambition to become carbon neutral, our position as a leading provider of oil and gas in the future, and recognition of our role in the changing energy mix," Schneiter said.

Lundin produced 79,000 boe/d over the first nine months of 2019, but is set for rapid expansion thanks to the Johan Sverdrup field, which came on stream in October. It expects the company's net production to reach 170,000 boe/d in 2023 once the second phase of Johan Sverdrup is on stream.

Lundin is 35%-owned by Sweden's Lundin family and just one of the family's numerous oil and mining enterprises. In 2017 the family separated off its non-Norwegian oil and gas operations, mainly in Canada and Malaysia, into a new entity, International Petroleum Corporation.

The UK is looking to emulate Norway's example in cutting emissions from offshore operations, but the challenge is seen as greater for ageing legacy oil facilities.

Lundin publishes its 2019 results on Friday.