PGNiG Closes Norwegian Field Deals
Poland's PGNiG has closed the purchase of shares in the Gina Krog and Alve Nord fields off Norway, it said on May 5, bringing the total number of licences it has interests in on the country's shelf to 31.
PGNiG announced a deal in February to buy a 3.3% share in Gina Krog from Norwegian player Aker BP, taking its overall interest to 11.3%. Gina Krog has been in production since mid-2017, and flowed 54,500 barrels of oil equivalent/day last year. Its remaining reserves are assessed at 172.5mn boe, according to PGNiG.
In return, the Polish firm transferred to Aker BP $51mn in cash and a 5% of licence 838, containing the Shrek oil and gas discovery. PGNiG will pay an extra $11mn for a 11.9% stake in licence 127C, containing the Alve Nord discovery, contingent on the project's further development. Aker BP, which retains a 88.1% position, plans to sink an exploration well there this year.
PGNiG is building up a base of gas reserves off Norway for its Baltic Pipe project, which will transport up to 10bn m3/yr of Norwegian gas to Poland via Denmark, starting in October 2020. Italy's Saipem just won a $343mn contract to build part of its offshore section.