PGNiG Upstream holds 40% share in the PL838 license, which is located in the Norwegian Sea and is directly adjacent to the Skarv and Ærfugl licenses

2500_135 Koncesje Norwegia - update 10-2019EN

Image: PGNiG Upstream Norway has discovered new oil in the PL838 license. Photo: Courtesy of PGNiG.

PGNiG Upstream Norway, the operator of production licence 838, has announced the new oil and gas discovery following the drilling the wildcat well 6507/5-9 S and appraisal well 6507/5-9 A near the Skarv field in the Norwegian Sea.

The wells were drilled approximately 5km south of the Skarv facility in the Norwegian Sea and 210km northwest of Brønnøysund, and the Norwegian Oil Directorate (NPD) confirmed that the estimated recoverable resource of the new discovery ranges between 19 and 38MMboe.

According to the NPD, the discovery well 6507/5-9 S encountered a total oil and gas column of about 85m in the Fangst and Båt groups.

PGNiG management board president Piotr Woźniak said: “As initially announced, drilling of the Shrek prospect took a month and a half. We confirmed the presence of natural gas and crude oil in the lower and middle Jurassic sandstones.

“We took cores and samples of reservoir fluids and performed detailed geophysical logging, which allowed us to determine the preliminary size and assess the quality of the reservoir. This discovery is a big success for PGNiG Upstream Norway, which is operator for the license.”

PGNiG Upstream Norway has discovered new oil in the PL838 license

PGNiG Upstream is a subsidiary of a subsidiary of PGNiG group, established in 2005. It holds a 40% stake in the PL838 license, which is located in the Norwegian Sea and is directly adjacent to the Skarv and Ærfugl licenses.

The company has completed the drilling of main exploration wellbore and appraisal sidetracks for the structure as per the schedule within 45 days, and has carried out the drilling offshore, in water depth of approximately 350m.

PGNiG Upstream said that the top of the reservoir has been encountered at a depth of nearly 2,000m below the sea surface, and the Shrek discovery is located approximately 5km south from the Skarv FPSO.

PGNiG Upstream Norway claims that it currently holds shares in 24 exploration and production licenses on the Norwegian Continental Shelf.

Woźniak added: “It is very probable that the new field will be tied back to Skarv FPSO, owned partly by PGNiG, which can have a positive impact on the profitability of the Skarv project. Thanks to the new discovery, we will increase our own production on the Norwegian Continental Shelf, where we want to produce 2.5 bcm of natural gas annually after 2022.”