According to the estimates released by the Norwegian Petroleum Directorate, the newly explored reservoir may contain between 19 to 63 million barrels of crude oil, while Ærfugl wells will produce around 4.8 billion cubic metres of gas annually.
“This is an important step to achieve goals envisioned in our hydrocarbon production strategy”, said Paweł Majewski, President of the Management Board of PGNiG, the company which is the sole owner of PGNiG Upstream Norway and added, “combined with remarkable profitability this means that Ærfugl and other reservoirs located in Skarv area are one of the PGNiG Group’s most valuable assets on the Norwegian Continental Shelf”.
“Natural gas remains at the core of PGNiG’s business strategy, however crude oil production allows us to diversify and optimise our operations in this region,’ Mr Majewski commented with regard to the new oil reservoir.
PGNiG Upstream Norway estimates that next year its production volume will increase to over 2.5 bcm of natural gas, compared to over 0.9 bcm projected for 2021. This will be a result of production from new fields and wells, in addition to acquisitions of interests in already producing fields. Currently, PGNiG Upstream Norway produces oil and gas from 14 fields.
PGNiG Upstream Norway’s expansion of fossil energy production comes in light of COP26 climate change summit in Glasgow where world leaders discuss the devastating effects of CO2 and greenhouse gas emissions on global climate and declare that they seek ways to reduce them.