Fossil Energy – Norwegian Sea
PGNiG Upstream Norway has signed an agreement with Wellesley Petroleum AS for the purchase of a 40% interest in licence PL942 in the Ørn gas field in the Norwegian Sea.
Its exploitation will provide PGNiG Group with an additional 0.25 bcm of natural gas per year from 2026.
According to the Norwegian Petroleum Directorate, the field’s recoverable reserves are about 6.75 billion cubic meters of natural gas, 0.17 million tonnes of oil and 0.79 million tonnes of NGLs.
“The transaction of purchasing shares in the Ørn field confirms our aspirations for further dynamic development of production activities on the Norwegian Continental Shelf. It is our priority foreign market, also due to its importance for the diversification of gas supplies to Poland after the launch of the Baltic Pipe gas pipeline this year,” said Iwona Waksmundzka-Olejniczak, President of the Management Board of PGNiG SA.
“The Ørn field fits perfectly with our plans for enhancing the production potential and further cost optimization of the Skarv area, which is the main hub of our operations on the Norwegian Continental Shelf. We highly value the opportunity to work with such an established and experienced partner as Wellesley Petroleum. The Ørn sale and purchase agreement is the result of a good and long-standing relationship between our companies,” she added.
The purchase of the Ørn field is the second transaction between PGNiG Upstream Norway and Wellesley Petroleum. In 2019, the companies signed a sale and purchase agreement for a 20 percent stake in concessions PL636 and PL636B covering the Duva deposit.
The Ørn field was discovered with an exploration well in 2019. Its development is expected to start in 2023, and production is expected from 2026. According to current data from the field operator, AkerBP, the production volume attributable to PGNiG Upstream Norway is expected to average about 0.25 billion cubic meters of natural gas per year in the period 2026-2035.
Ørn is located approx. 20 km from the Skarv field, in which PGNiG Upstream Norway also holds an interest. This will make it possible to use the existing production infrastructure, including the Skarv FPSO, to reduce time and costs of production start-up. PGNiG Upstream Norway has applied the same solution to its other deposits near Skarv: Ærfugl and Gråsel, providing for increased profitability of their production. The ability to use the existing infrastructure will enable the reduction of CO2 emissions associated with the development of the field.