Monday, November 23, 2020
Home Oil & Gas ConocoPhillips and PGNIG makes significant gas discovery offshore Norway

ConocoPhillips and PGNIG makes significant gas discovery offshore Norway

Preliminary estimates place the size of the discovery between 50 and 190 million barrels of recoverable oil equivalent. Further appraisal will be conducted to determine potential flow rates, the reservoir’s ultimate resource recovery and plans for development.

The Warka well is located in the central part of the Norwegian Sea, approximately 240 km North-West of the coast of Norway. ConocoPhillips Skandinavia is the operator of the license with 65 per cent working interest. PGNiG Upstream Norway, subsidiary of Poland’s state-owned oil and gas company, PGNiG holds the remaining 35 per cent.

“We consider the Warka discovery as extremely important for the strategic expansion of our gas production operations on the Norwegian Continental Shelf,” commented Paweł Majewski, President of the PGNiG Management Board.

“We seek to ensure that the largest possible volumes of gas are brought from Norway to Poland via the Baltic Pipe. The new gas discovery takes us a step closer to achieving that goal,” he added.

The 900 km-long Baltic pipe project, expected to begin operation in 2022, is intended to supply an estimated ten billion cubic metres (bcm) of natural gas per year from to Poland and 3 bcm of gas to Sweden and Denmark.

PGNiG Upstream Norway holds interests in 32 licences on the Norwegian Continental Shelf. In September 2020, the company entered into an agreement to acquire interests in the Kvitebjørn and Valemon fields in the North Sea, which are already in the production phase. The company also produces crude oil and natural gas from seven other fields: Skarv, Morvin, Vale, Vilje, Gina Krog, Skogul and Ærfugl, while development and assessment work is underway on five more deposits: Duva, Tommeliten Alpha, King Lear, Ærfugl Outer and Shrek.

Matt Fox, Executive Vice President and Chief Operating Officer of ConocoPhillips highlighted that the Warka discovery is potentially the largest on the Norwegian Continental shelf this year adding that this discovery and potential future opportunities represent a very low cost of supply resource additions.

Due to the global pandemic situation activity on the Norwegian shelf has been characterised in the past year by the drop in demand and declining oil price. Exploration activity has declined and will be lower this year than presumed as operators wanted to reduce 2020 capex.

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