Under a contract with Sval Energi AS, PGNiG Upstream Norway has acquired a 10% interest in license PL211 CS, covering the Adriana and Sabina fields
PGNiG Upstream Norway of the PKN ORLEN Group has acquired interests in two fields on the Norwegian Continental Shelf. The transaction is consistent with the Group’s strategic objective of increasing its own gas production volumes to boost Poland’s energy security and independence.
“Today, the ORLEN Group is among the largest players in oil and gas exploration and production in Norway. The combination of our strong position and expertise allows us to effectively manage our licence portfolio, and thus deliver on our strategic objective to double the natural gas output on the Norwegian Continental Shelf. In this way, we will be able to secure diversified and stable gas supplies to our customers using our own sources abroad,” said Daniel Obajtek, CEO and President of the PKN ORLEN Management Board.
Under a contract with Sval Energi AS, PGNiG Upstream Norway has acquired a 10% interest in license PL211 CS, covering the Adriana and Sabina fields. The license area is located in the Norwegian Sea, some 20 kilometres southwest of the Skarv production field, which is the main centre of the ORLEN Group’s operations on the Norwegian Continental Shelf. The new fields will be tied to the existing production infrastructure in the area through PGNiG Upstream Norway’s Ærfugl field, located near Skarv. This will ensure higher profitability of production from the new fields, reduce the time and cost of the development work while also cutting carbon emissions associated with the process.
Adriana is a gas and condensate field, while Sabina contains oil and gas. The fields were discovered in the first quarter of 2021. According to preliminary estimates, their total recoverable reserves could range from 38 to 88 mBoE. These volumes can be confirmed after an appraisal well has been drilled, which is planned for the fourth quarter 2023. The licence partners expect production from the Adriana and Sabina fields to commence in 2029 and 2033, respectively. This will allow PGNiG Upstream Norway to offset the natural decline in production from the existing producing fields.
The transaction between PGNiG Upstream Norway and Sval Energi is pending final approval from the Norwegian Ministry of Petroleum and Energy. Once approved, PGNiG Upstream Norway’s licence partners will be Wintershall DEA (40% interest, operator), Petoro (35% interest) and Aker BP (15% interest).
The ORLEN Group’s updated strategy, announced in the first quarter of 2023, provides for increasing the Group’s own gas production volume in Poland and abroad to approximately 12 bcm in 2030. Half of that volume is to come from fields located on the Norwegian Continental Shelf. PGNiG Upstream Norway will invest for this purpose approximately USD 3bn over the next five years.
The natural gas produced by the ORLEN Group from the Norwegian fields is transported to Poland via the Baltic Pipe, brought onstream in the fourth quarter of 2022. By gradually ramping up production in the Norwegian Continental Shelf, the ORLEN Group is materially boosting Poland’s energy security.
Following last year’s acquisitions of Grupa LOTOS and PGNiG, ORLEN became the owner of two companies engaged in hydrocarbon production on the Norwegian Continental Shelf: PGNiG Upstream Norway and LOTOS Exploration and Production Norge. In early May, their operations were integrated into PGNiG Upstream Norway. Synergies from the consolidation will increase the efficiency of ORLEN Group’s operations in the upstream segment, thus helping deliver the Group’s strategic objectives in this area.
PGNiG Upstream Norway’s oil and gas reserves total 346.6 million barrels of oil equivalent. The company produces approximately 88,000 barrels of oil equivalent a day from 17 fields. Once the acquisition of interests in licence PL211 CS is finalised, the ORLEN Group will hold interests in 99 licences on the Norwegian Continental Shelf.
Source: Company Press Release