News listings

energy-pedia farmouts/divestments

Norway flagNorway

Europe / Caspian / CIS >>> Norway

Norway: PGNiG Upstream Norway signs agreement with Norske Shell to acquire interests in Kvitebjorn and Valemon fields offshore Norway


24 Sep 2020

Photo - see caption

PGNiG Upstream Norway has signed an agreement with Norske Shell to acquire interests in Kvitebjørn and Valemon, two producing fields in the North Sea. Following the transaction, the PGNiG Group’s own gas production in Norway will increase to 0.9 bcm in 2021, nearly 30% above the previous forecast.

Gas produced from the new fields, along with volumes resulting from the previous acquisitions made by PGNiG’s Norwegian subsidiary between 2017 and 2020, will be sent to Poland after the Baltic Pipe link is launched.

'This latest transaction involving assets on the Norwegian Continental Shelf is closely in line with the PGNiG Group’s strategy. Its purpose is to diversify gas supplies and improve Poland’s energy security in reliance on our own reserves. As with the transaction completed earlier this year whereby we increased our interest in the Gina Krog field, also this acquisition will translate into an immediate and substantial increase in gas volumes produced by our subsidiary on the Norwegian Continental Shelf, with a positive effect on the PGNiG Group’s overall operating performance,' said Jerzy Kwiecinski, President of the Management Board of PGNiG SA, the sole owner of PGNiG Upstream Norway.

Following the transaction, PGNiG Upstream Norway (PUN) will come to hold, as a licence partner, a 6.45% interest in the Kvitebjørn field and a 3.225% in the Valemon field. The company will additionally acquire a stake in the infrastructure used to transport hydrocarbons produced from these fields. According to PUN’s estimates, the acquisition will bring about a step increase in its average daily production of hydrocarbons (both oil and gas), of about 30%.

Both newly acquired fields contain predominantly natural gas. Their target gas output in 2020 attributable to the interests acquired from Shell represents approx. 70% of PUN’s current production volume in Norway. Therefore, the transaction will result in an immediate increase of the company’s own gas production – in 2021 it will be nearly 30% above the previous forecast, having grown by almost 80% compared with PUN’s gas output in 2019. According to the company’s estimates, in 2023–2028 (i.e. after the launch of the Baltic Pipe), the two fields will deliver approx. 0.2 bcm of gas annually to the company.

The Kvitebjørn field is located in the northern part of the North Sea, with the water depth of 190 metres. Kvitebjørn was discovered in 1994, while the Plan for Development and Operation (PDO) was approved in 2000. The field has been in production since 2004 using a fixed platform with fully integrated drilling modules. The extracted gas is sent via a subsea pipeline to the Kollsnes terminal, while the condensate is transported via a branch of Troll Oil Pipeline II to the Mongstad terminal.

The Valemon field is located immediately west of Kvitebjørn, with the water depth of 135 metres. Valemon was discovered in 1985, the Plan for Development and Operation (PDO) was approved in 2011, and production commenced in 2015. The field has been developed by means of a fixed platform with a simplified hydrocarbon separation process, operated remotely from land. Its condensate and gas output is carried via a pipeline to the Kvitebjørn field, and then via a subsea pipeline to the Mongstad processing terminal.

The agreement with Shell is yet to be approved by the Norwegian petroleum and tax authorities, but once the transaction is completed PGNiG Upstream Norway’s asset portfolio will be expanded to include another four licences on the Norwegian Continental Shelf, adding up to a total of 32 licences. A rapid pace of acquisitions over the past four years has increased the Company’s oil and gas reserves from 80 to approximately 200 mmboe.

PGNiG Upstream Norway is already producing oil and gas from seven fields: Skarv, Morvin, Vale, Vilje, Gina Krog, Skogul and Aerfugl, while development and assessment work is under way on five more deposits: Duva, Tommeliten Alpha, King Lear, Aerfugl Outer and Shrek.

Original article link

Source: PGNiG Upstream Norway





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current Deals

Current Upstream Deals: 363

Completed Deals

Completed Upstream Deals: 5791

Company Profiles

Current Company Profiles: 2737

Corporate Activity

Current Corporate Activity articles: 3541

Companies Looking

Current number of articles: 442

Company Sales

Current Company Sales articles:1438

Geostudies

Current Geostudies articles: 754

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Bayphase
Rose & Assocs 149
SLR Consulting logo
energy365
KL Publishing
Government of South Australia
Geoespace
OPC
Union Jack Oil 149
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com