PGNiG Upstream Norway, wholly owned subsidiary of PGNiG SA (Polish Oil and Gas Company), purchased share in the Storklakken discovery from Aker BP ASA. Transaction is a part of implementation of PGNiG’s strategy and will allow for an increase of hydrocarbon production outside Poland.
"The transaction is another proof of our commitment to increase production from Norway. Besides, we are happy to extend our cooperation with Aker BP that is already an operator of our two largest producing fields. We have strong confidence in Aker BP’s professionalism and its ability to deliver projects on time and budget as we expect short payback period from this investment," commented Piotr Wozniak, President of the Management Board of PGNiG SA.
Transaction involves 35% working interest in the license PL460 in the North Sea. The remaining 65% is owned by Aker BP ASA who is also the operator of the license. The license is located in direct vicinity of the Vilje field, where PGNiG holds 24.243%. It includes the Storklakken oil field which was discovered in 2010 by Aker BP. According to the operator, recoverable reserves attributable to PGNiG Upstream Norway’s interests amount to 3.85 million boe (boe). The field is expected to be developed as a subsea tie-back to the Alvheim FPSO with the production start-up in 2020.
Transaction and future investments in Storklakken will be funded from the operating cash flow of PGNiG’s Norwegian operations.
Acquisition of the new assets in Norway is a natural investment direction for the PGNiG Group. The NCS is recognized as prospective area where PGNiG has both experience and organization. The historical projects in Norway, including Skarv, offer good profitability with low risk exposure. These projects as well as future investments should create basis for future gas supplies to Poland.
PGNiG Group is involved in a project aimed at exporting Norwegian gas to Poland through the new infrastructure connection. It is expected that in the next five years transmission system operators in Norway, Denmark and Poland will construct new gas pipelines which will open an access to the Central European gas market. PGNiG is planning to book capacity in such a connection and send its own gas production to Poland.
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