Polish state-owned oil and gas company PGNiG expects to produce about 115,000 tonnes of oil from the Skogul deposit in Norway this year. Production of crude oil and natural gas from the field started in March this year. Hydrocarbon reserves at Skogul owned by PGNiG Upstream Norway amount to approximately 3.3 million boe (barrel of oil equivalent), reads the statement of the company.
“We are working with a recognised partner, with whom we share a wealth of experience in hydrocarbon exploration and production, also in other licence areas,” said Jerzy Kwieciński, President of the PGNiG Management Board. He added that the proximity of the existing production infrastructure will have a reducing effect on production costs.
The Skogul field is located in the immediate vicinity of the Vilje field, in which PGNiG Upstream Norway holds a 24.24 per cent interest, hence gas produced from Skogul will be transferred through Vilje to the Alvheim FPSO vessel. PGNiG estimates that the increase in its production following the launch of production from the new field will amount to more than 4,000 boe per day.
The operator of the Skogul field is Aker BP, holding a 65 per cent interest in the licence. The remaining 35 per cent is owned by PGNiG through its subsidiary, PGNiG Upstream Norway.
PGNiG Upstream Norway, who is responsible for offshore oil and gas exploration and development projects at the Norwegian Continental Shelf, holds interests in 31 exploration and production licences in the area, with its oil and gas reserves amounting to 200 million boe.
PGNiG has been active in Norway since 2007, today the company produces oil and gas at seven fields in the country. Production at the last one, Ærfugl, which is a gas and condensate field with recoverable reserves of 300 million barrels of oil equivalent, was launched this April. In the peak year, PGNiG expects that production from the field will reach roughly 0.5 billion cubic metres (bcm) of natural gas, to be fed into the Baltic Pipe, that will carry natural gas from Norwegian fields to Poland starting from 2022.