(Adds quotes, background)
OSLO, March 27 (Reuters) - Lundin Petroleum announced plans on Wednesday develop its Solveig oilfield, formerly known as Luno II, offshore Norway at a cost of 6.4 billion Norwegian crowns ($747 million).
The development and operation plan for the North Sea field called for a production startup of in the first quarter of 2021, the Swedish company said.
The new field will be linked via subsea production systems and pipes to the nearby Edvard Grieg platform, using the existing installation’s capacity.
Partners in the field, which is expected to see peak production of 30,000 barrels per day, include Lundin Petroleum, Austria’s OMV and Germany’s Wintershall.
They plan to decide on a potential second phase of Solveig in a year’s time, Lundin said.
“I’m glad the companies are proposing to develop the Solveig field. This development is important to help maintain production and value creation around the Grieg field,” Norway’s energy minister, Kjell-Boerge Freiberg, said in a statement. ($1 = 8.5706 Norwegian crowns) (Reporting by Nerijus Adomaitis, editing by Terje Solsvik and Louise Heavens)