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PGNiG increases production of natural gas on the Norwegian Continental Shelf

PGNiG Upstream Norway, which holds interests in 59 licenses on the Norwegian Continental Shelf plans to produce an additional volume of approximately 0.5 billion cubic metres (bcm) of natural gas this year.

This will allow the company’s total production to reach 3 bcm of gas in 2022. Following the launch of the Baltic Pipe pipeline, the hydrocarbons produced by the PGNiG Group in Norway will be delivered to Poland.

“The Norwegian Continental Shelf is a priority area of development of the PGNiG Group’s exploration and production operations and plays a very important role in our strategy for diversification of gas supplies to the Polish market,” said Iwona Waksmundzka-Olejniczak, President of the Management Board of PGNiG. “In connection with recent events, including cut off of gas supplies under the Yamal contract, the results of our operations in Norway have gained particular significance. Soon, after the launch of the Baltic Pipe, additional cubic meters of gas extracted by PGNiG in Norway will translate to more energy security for Poland.”

The increased gas production comes from three reservoirs: Skarv, Gina Krog and Duva. In the case of the first two fields, the increase in production will be possible thanks to the discontinuation of gas injection into the reservoirs. A decision to cease gas injection means the modification of each field’s Plan for Development and Operation and therefore requires consent from the Norwegian Petroleum Directorate.

PGNiG Upstream Norway and its license partners have obtained such approvals and as a result, the company will produce additional over 300 million cubic metres (mcm) from Gina Krog and almost 150 mcm of natural gas from the Skarv field by the end of the year.

In the case of Duva, the increase in production is possible thanks to the use of free capacities at the production installation serving the Gjøa field, to which Duva is tied-in. The spare capacity will be available until the end of August, when the Nova field, also Gjøa tie-in, will come online. Until then, PGNiG Upstream Norway plans to produce an additional 30 mcm of gas from Duva.

PGNiG Upstream Norway estimates that it can produce a total of approximately 0.5 bcm of additional gas from Gina Krog, Skarv and Duva this year, which means that the company may produce about 3 bcm in 2022, more than 15 per cent over the forecast. Once the Baltic Pipe pipeline is launched at the end of 2022, PGNiG will be able to supply additional volumes from Gina Krog and Skarv to Poland.

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