PGNiG To Buy Norwegian Find from Equinor
Equinor has agreed to sell non-core assets, namely its stake in the 1977 Tommeliten gas/condensate discovery offshore Norway, to Poland’s PGNiG for $220mn.
PGNiG said the asset is the southern part of the Norwegian continental shelf in the greater Ekofisk Area of the North Sea.
Norway's Equinor will divest its 42.38% interest in the Tommeliten Unit (PL 044 TA) and 30% interest in PL 044, both operated by ConocoPhillips. The latter has a 28.26% stake while Eni has 9.13%. The 42.38% stake being divested equates to 52mn barrels of oil equivalent (boe) net recoverable resources. PGNiG said that there is significant exploration upside nearby.
“Tommeliten Alpha project allows us to implement our diversification strategy at attractive financial terms,” said PGNIG CEO Piotr Wozniak but did not say when development might occur. The Polish company estimates the field could increase its net Norwegian production by 0.5bn m3/yr for six years, if developed.
Norwegian upstream regulator NPD however defines Tommeliten Alpha’s status as “production likely, but unclarified”.
Once the deal is completed, PGNiG says its net Norwegian recoverable reserves will rise by 63% from 83mn to 135mn boe at January 1 2018. Its existing gas reserves are mostly in the Skarv area. PGNiG wants to diversify its sourcing. Currently most of its gas comes from Russia but it wants to scale back or stop the latter in 2022, replacing it with LNG and Norwegian gas. On October 17, PGNiG firmed up one US LNG import deal (due to start 2022); it has another lined up, but not yet finalised, that would start in 2023.
Equinor announced another non-core asset sale October 15, namely its operated stake in the King Lear gas/condensate discovery to Aker BP, for $250mn.