PGNiG, a Polish state-controlled oil and gas company, has bought interest in the King Lear field located offshore Norway from French oil major Total.
PGNiG said last week that it had bought a 22.2 percent stake in the field which is located in production licenses 146 and 333 in the Norwegian North Sea.
Due to the potential of further cooperation the parties agreed not to disclose the value of the transaction.
The volume of production part attributable to PGNiG may reach 0.25 bcm of natural gas annually.
Both licenses are currently in the development phase. The investment process is planned for the period 2021-2024 so that the production from the field could begin in 2025.
According to the Norwegian Petroleum Directorate, the gas and condensate field has documented recoverable resources which amount to approximately 98.6 mmboe, including 9.2 bcm of natural gas.
The operator of the field is Aker BP, which acquired a 77.8 percent of interest in the licenses in 2018 from Equinor.
Piotr Woźniak, president of the PGNiG management board, said: “King Lear is one of the largest undeveloped discoveries in the North Sea. This way, we develop our upstream operations in Norway, consistent with the strategy of the PGNiG Group. The gas produced from this field will be directed to Poland by the future Baltic Pipe gas pipeline.”
After finalizing this transaction, the company will hold shares in 25 licenses on the Norwegian Continental Shelf. It holds the status of the operator on four of them.
PGNiG’s previous gas field stake acquisition in Norway was the purchase of 42.38 percent of shares in the Tommeliten Alpha field in 2018, also located in the North Sea, south of King Lear.
The Tommeliten Alpha is a gas/condensate discovery that was made in 1976. Net recoverable resources in Tommeliten Alpha are 52 million barrels of oil equivalent.
It is worth reminding that the Polish oil company is set to drill its first well offshore Norway as operator over the Shrek prospect in the second half of 2019. PGNiG plans to start drilling the Shrek well between September 1 and November 30, 2019, using the Deepsea Nordkapp semi-submersible drilling rig.
Offshore Energy Today Staff
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