PGNiG completes Gina Krog and Alve Nord deal with Aker BP

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) said that its subsidiary PGNiG Upstream Norway has wrapped up a previously announced transaction to acquire stakes in the producing Gina Krog field and the undeveloped Alve Nord field, both located offshore Norway, from Aker BP.

For the Polish state-controlled oil and gas company, the closing of the deal means an increase in its own gas volumes, which are to flow to Poland shortly through the Baltic Pipe.

PGNiG has raised its stake in the Gina Krog oil and gas field in licence PL127C in the North Sea to 11.3%. In the Alve Nord field in licence PL127C in the Norwegian Sea, the Polish oil and gas company has acquired an 11.92% stake.

The Gina Krog oil and gas field has been in production since 2017. The Norwegian oil and gas field delivered 19.9 mboe last year, of which 1.6 mboe was attributable to the Polish company.

The recoverable reserves at the Gina Krog field are estimated at 172.5 mboe.

On the other hand, licence PL127C, which covers the Alve Nord field, is contained in the area of the Skarv oil and gas field. Due to the proximity, PGNiG expects to discover natural gas at the Alve Nord field as well.

PGNiG increases licenses on Norwegian Continental Shelf to 31. Image courtesy of POLSKIE GÓRNICTWO NAFTOWE I GAZOWNICTWO SA.

The acquisitions are estimated to increase the future gas production of PGNiG Upstream Norway by 100 mcm a year. With the deal closed, the number of licences on the Norwegian Continental Shelf in which PGNiG Upstream Norway has stakes has gone up to 31.

Jerzy Kwieciński – President of the PGNiG Management Board said: ‘We are thrilled that our latest acquisitions on the Norwegian Continental Shelf coincided with the commencement of construction work on the Baltic Pipe. The pipeline will carry natural gas produced by PGNiG from Norwegian fields to Poland starting from 2022, with the gas volumes rising as we complete further acquisitions and more fields enter the production phase.”

Currently, PGNiG Norway Upstream is producing oil and gas from seven offshore fields in Norway.

The company alongside its partners had started production from the Skogul and Ærfugl fields earlier this year.

PGNiG said that the acquisitions it executed in the last three years have boosted its proved reserves in Norway from nearly 80 mboe to about 200 mboe.