Obajtek: we are increasing oil and gas production in Norway

We are increasing oil and gas production in Norway. We have filed plans with the Ministry of Oil and Energy to develop more offshore fields, PKN Orlen CEO Daniel Obajtek announced. The gas will reach Poland via Baltic Pipe, he added.

– We are increasing oil and gas production in Norway. We have filed plans with the Ministry of Oil and Energy to develop more offshore fields. We plan to start drilling in 2024. Gas will reach Poland through Baltic Pipe. The synergies from the merger realistically strengthen Poland’s security,” PKN Orlen CEO Daniel Obajtek wrote on Twitter on Friday.

PKN reported Monday that PGNiG Norway, along with its partners: Aker BP ASA, “Aker BP”, Equinor and Wintershal DEA have also made a final investment decision regarding the development of oil and gas fields on the Norwegian Continental Shelf. The fields in question are Fenris; PGNiG Norway’s share is 22.2 percent, rn; PGNiG Norway’s share is 40 percent, and Alve Nord, where PGNiG Norway’s share is 11.9 percent.

Aker BP is the operator on all these fields, and the total recoverable reserves attributable to PGNiG Norway’s share are estimated at 65.3 million boe.

“PGNiG Norway’s capital commitment to the Fenris, rn and Alve Nord projects will be proportional to the company’s share in the respective fields, and will amount to a total of approximately NOK 2.8 billion,” the release said. – The release said.

Hydrocarbon production from both projects is scheduled to start in 2027. The start of work is conditional on approval of the development and production plans by the Norwegian Parliament, PKN Orlen explained. PKN Orlen owns 100 percent of LOTOS Norge and PGNiG Norway.

On December 6, PGNIG reported that PKN Orlen’s Norwegian subsidiary PGNiG Upstream Norway, together with its concession partners, had applied for approval of the development and exploitation plan for the Verdande field in the Norwegian Sea. According to the plan, drilling is expected to start at the end of 2024, and production will begin a year later. Ultimately, production will be carried out from three wells, which will be connected to the infrastructure of the nearby Norne field. According to PGNiG, this will speed up the development process and reduce investment costs, as well as increase the energy efficiency of the entire installation.

The start of work is conditional on approval of the development and operation plan by the Norwegian Ministry of Petroleum and Energy.

Baltic Pipe is a joint investment by the gas transmission system operators from Poland and Denmark – Gaz-System and Energinet. Gaz-System owns and operates the portion starting on the shore of the Danish island of Zeeland and running to Poland along the bottom of the Baltic Sea.

Construction was completed in 2022, except for two sections in Denmark, where work was halted for several months in 2021 due to the revocation of environmental permits. Therefore, for the first few months the system operated only at partial capacity.

The launch of Baltic Pipe gas transmission, connecting the Norwegian shelf via Denmark to Poland, took place on October 1 this year.

The only user of the Baltic Pipe system will be PGNiG for the time being. The company has bought most of the pipeline’s capacity, which is expected to eventually reach 10 billion cubic meters per year. PGNiG will import gas from its own production on the Norwegian shelf and purchased from other producers.

Source: PortalMorski.pl