Swedish oil giant granted production license in Russia

Sweden's largest oil company, Lundin Petroleum, received a license to produce oil in Russia. According to the statement released by the oil company, it obtained a production license with the approval of the federal license distribution agency of the Russian Ministry of Natural Resources and Ecology.

With the license the Swedish company will produce oil in the Morskaya oil field, located in the Lagansky Block in the northern Caspian Sea where it has been operating since 2013. The production license, which covers an area of 50 square kilometers, is valid until 2035. The Morskaya oil field is estimated to have a reserve that is equivalent to around 157 million barrels of oil.

The oil field is owned by LLC Petroresurs, a consortium composed of Lundin Petroleum and the Gunvor Group. Lundim Petroleum holds a share of 70 percent of the consortium.