PGNiG increases stake in Duva oil and gas field, offshore Norway

PGNiG Upstream Norway has secured a final administrative consent to increase its presence in the Duva oil and gas field in the North Sea by acquiring an additional 10% interests in the PL636 and PL636B licences.

With the closing of the deal, PGNiG Upstream Norway‘s interests in both the licences have gone up to 30%. The share of Duva field gas production for the company will move up accordingly to 0.2 bcm per year.

It was in July 2019 that PGNiG Upstream Norway acquired the first 20% stake in the Norwegian oil and gas field from Wellesley Petroleum.

In November 2019, the PGNiG subsidiary signed an agreement to acquire an additional 10% stake from Pandion Energy. The remaining stakeholders in the PL636 and PL636B licences are Neptune Energy Norge (operator), Idemitsu Petroleum Norge, and also Sval Energi.

Jerzy Kwieciński – President of the PGNIG Management Board said: “Acquisition of fields on the Norwegian Continental Shelf is one of the investment priorities of the PGNiG Group. Our aim is to ensure that as much as possible of the gas that will flow from Norway to Poland following the launch of the Baltic Pipe will come from our own production.

“This is part of our strategy to diversify supplies and strengthen Poland’s energy security. In this way, we are simultaneously building the position of Polish companies on foreign markets.”

PGNiG increases stake in Duva oil and gas field, offshore Norway. Image courtesy of jorono from Pixabay.

The Duva oil and gas field was discovered in 2016 and about three years later, the plan for its development and operation was approved by the Norwegian administration.

Production from the Duva field is likely to begin at the end of this year or at the start of 2021.

As per the plan, three production wells will be drilled in the offshore Norwegian field, of which two will produce crude oil, while the other will produce natural gas.

Also permitted in the plan for development and operation of the Duva oil and gas field is the drilling of an additional oil production well.

In the initial period of production, the maximum annual output from the Duva field is likely to reach nearly 30,000 boe.