The deal increases PGNiG Upstream Norway’s interests in the two licences to 30%
PGNiG Upstream Norway has secured final administrative consent for the acquisition. (Credit: Pixabay/C Morrison)
PGNiG Upstream Norway has decided to move ahead with the acquisition on 10% interests in the PL636 and PL636B licences in the North Sea, following securing final administrative consent.
The deal increases PGNiG Upstream Norway’s interests in the two licences to 30%, thus increasing the company’s share of volume in the Duva field gas production to 0.2bcm per year.
PGNIG management board president Jerzy Kwieciński said: “Acquisition of fields on the Norwegian Continental Shelf is one of the investment priorities of the PGNiG Group.
“Our aim is to ensure that as much as possible of the gas that will flow from Norway to Poland following the launch of the Baltic Pipe will come from our own production.
“This is part of our strategy to diversify supplies and strengthen Poland’s energy security. In this way, we are simultaneously building the position of Polish companies on foreign markets.”
Following the acquisition of first 20% interest in the Duva field in July 2019 from Wellesley Petroleum, PGNiG Upstream Norway agreed to acquire additional 10% stake from Pandion Energy in November 2019.
The PL636 and PL636B licences partners also include Neptune Energy Norge (operator), Idemitsu Petroleum Norge, and Sval Energi.
Duva field will be developed as subsea tie-back to nearby Gjøa platform
The Duva field, which was discovered in 2016, is scheduled to commence production at the end of 2020 or at the beginning of 2021. It is planned to be developed as a subsea tie-back to the nearby Gjøa platform.
In June 2019, the Norwegian administration approved the plan for its development and operation.
As part of the Duva field development plan, three production wells will be drilled including two producing crude oil and one producing natural gas.
The plan for development and operation also calls for the drilling of an additional oil production well. The field is expected to have a maximum annual production capacity of approximately 30,000 barrels of oil equivalent (boe) in the initial period.