PGNiG Upstream has signed an agreement with A/S Norske Shell to acquire two gas producing fields in the North Sea, leading to a production increase of nearly 30% above the previous forecast, according to a press release.
With the acquisition of interests in both Kvitebjorn and Valemon, it is expected that PGNiG’s gas production in Norway will increase to 0.9 bcm in 2021.
Jerzy Kwieciński, President of the Management Board of PGNiG SA, said, “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.”
The gas produced from the new fields, along with the gas reserves from the pre-existing assets, will be sent to Poland after the completion of the Baltic Pipe link.
Following the transaction, PGNiG Upstream Norway (PUN) will come to hold a 6.45% interest in the Kvitebjørn field and a 3.225% in the Valemon field.