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Norway: PGNiG acquires interest in King Lear field from Total
11 Jun 2019
PGNiG Upstream Norway will acquire 22.2 percent of shares in the King Lear field – PL146 and PL333 licenses – from Total E&P Norge. The volume of production in the part attributable to PGNiG may reach 0.25 bcm of natural gas annually. The production start is planned for 2025.
King Lear is a gas and condensate field located on the North Sea. According to the Norwegian Petroleum Directorate, the field has documented recoverable resources which amount to approx. 98.6 mmboe (including 9.2 bcm of natural gas). The operator of the field is Aker BP, which acquired 77.8 percent of interest in the licenses in 2018 from Equinor.
'King Lear is one of the largest undeveloped discoveries in the North Sea. This is another purchase PGNiG has had recently on the Norwegian Continental Shelf. This way, we develop our upstream operations in Norway consistent with the strategy of PGNiG Group. The gas produced from this field will be directed to Poland by the future Baltic Pipe gas pipeline,' commented Piotr Wozniak, President of the PGNiG Management Board. Due to potential of further cooperation the parties agreed not to disclose the value of the transaction.
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.
The previous acquisition of PGNiG Upstream Norway was the purchase of 42.4 percent of shares in the Tommeliten Alpha field in 2018, which is also located on the North Sea, south of King Lear. After finalizing the recent 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.