MOSCOW (MRC) -- ORLEN Group's PGNiG Upstream Norway has bought interests in two fields on the Norwegian Continental Shelf, said the company.
The deal is consistent with the Group's strategic goal of raising its own gas production volumes to improve Poland's energy independence and security. Under an agreement with Sval Energi AS, PGNiG Upstream Norway has purchased a 10% interest in licence PL211 CS, covering the Sabina and Adriana fields.
The licence area is situated in the Norwegian Sea, around 20 kilometres southwest of the Skarv production field, which is the primary centre of the Group's operations on the Norwegian Continental Shelf. The new fields will be connected to the existing production infrastructure in the area through PGNiG Upstream Norway's Aerfugl field, situated near Skarv. This will guarantee higher profitability of output from the new fields, cut the cost and time of the development work while also lowering carbon emissions related to the process. Sabina is an oil and gas field, while Adriana contains gas and condensate. Both were discovered in 1Q 2021.
According to preliminary estimates, their overall recoverable reserves could range 38-88 mBoE. These volumes can be confirmed following the drilling of an appraisal well, which is set in 4Q 2023. The licence partners anticipate production from the Adriana and Sabina fields to begin in 2029 and 2033, respectively. This will permit PGNiG Upstream Norway to offset the natural fall in output from the existing producing fields.
The agreement between Sval Energi and PGNiG Upstream Norway is awaiting final approval from the Norwegian Ministry of Petroleum and Energy. Once greenlit, PGNiG Upstream Norway's licence allies will be Petoro (35% interest), Aker BP (15% interest), and Wintershall DEA (40% interest, operator). The ORLEN Group's updated strategy, revealed in 1Q 2023, offers for raising the Group's own gas production volume in Poland and outside the country to nearly 12 bcm in 2030. Of that volume, 50% will come from fields positioned on the Norwegian Continental Shelf. For this purpose, PGNiG Upstream Norway will invest around $3 bn over the next five years.
PGNiG Upstream Norway has total oil and gas reserves of 346.6 M barrels of oil equivalent. It generates roughly 88,000 barrels of oil equivalent a day from 17 fields. Once the purchase of interests in licence PL211 CS is completed, the ORLEN Group will secure interests in 99 licences on the Norwegian Continental Shelf.
We remind, ORLEN Poludnie, a leading player in biofuels in Poland, has recently concluded the first year of operation of its BioPG plant, converting glycerol, a by-product of biodiesel production, into renewable propylene glycol (BioPG).