On Tuesday (30 May), Polish energy company PGNiG Upstream Norway (Orlen Group) announced the purchase of shares in two oil and gas production fields in the Norwegian Continental Shelf.
PGNiG Upstream Norway acquired 10 per cent of shares in the PL211 CS license, covering the Adriana and Sabina fields. The license is located in the Norwegian Sea, around 20 kilometres (km) to the southwest of the Skarv production area, which is the main point of the company’s operations on the Norwegian Continental Shelf.
“Today, the Orlen Group is among the largest players in oil & gas exploration and production in Norway,” said Daniel Obajtek, CEO and President of the PKN Orlen Management Board. “The combination of our strong position and expertise allows us to effectively manage our licence portfolio, and thus deliver on our strategic objective to double the natural gas output on the Norwegian Continental Shelf. In this way, we will be able to secure diversified and stable gas supplies to our customers using our own sources abroad.”
Adriana is a gas condensate field, while Sabina contains oil and gas. The deposits were discovered in the first quarter of 2021, and according to preliminary estimates, their total recoverable resources may range from 38 to 88 million barrels of oil equivalent. Confirmation of these volumes will be possible after the appraisal well is drilled, which is planned for the last quarter of 2023. Production on the Adriana field is expected to start in 2029 and 2033 on the Sabina field.
As a result, PGNiG Upstream Norway will be able to compensate for the natural decline in production from the currently exploited fields, Orlen said.
Orlen discovers new oil reserves
Separately, last week (26 May), the Orlen Group announced that the Øst Frigg field on the Norwegian Continental Shelf, in which the company is a shareholder, may contain twice as much crude oil as previously estimated.
According to confirmed estimates, Øst Frigg reserves contain 18-45 million barrels of oil equivalent (boe). Results obtained during the drilling of the exploration well indicate that the actual extractable resources may be at least twice as large and amount to 40-90 million boe, which would mean that Orlen’s crude oil resources could amount to 5-11 million boe.
“The preliminary results of the exploration well drilled in Øst Frigg field have turned out to be much better than expected. The additional oil resources will strengthen the Orlen Group’s position as one of the leading players on the Norwegian Continental Shelf,” said Mr Obajtek.
Accurate estimation of the resources of the deposit will require further analyses, the results of which have yet to be confirmed by the Norwegian Petroleum Directorate, Orlen said.
Øst Frigg is one of eight fields being developed as part of the Yggdrasil development project (formerly NOAKA). At present, this is one of the largest investments on the Norwegian Continental Shelf, with a capital of expenditure (CAPEX) of around 45 billion złotych (9.9 billion euros). Orlen holds an interest of nearly 13 per cent in the eight licences within the Yggdrasil area.
