Poland's PGNiG has agreed to buy stakes held by Shell in two producing gas fields offshore Norway, which will result in PGNiG's Norwegian gas output rising to 0.9 Bcm in 2021, it said Sept. 21.
PGNiG has moved to increase its presence offshore Norway in recent years, expanding its upstream portfolio ahead of the construction of the Baltic Pipe to bring Norwegian gas directly to Poland.
PGNiG's aim is to maximize the contribution of its own equity production to gas volumes that will flow from Norway to Poland through the Baltic Pipe.
In a statement Sept. 21, PGNiG said it had signed an agreement with Shell to acquire interests in Kvitebjorn and Valemon, two predominantly gas producing fields in the North Sea.
"Following the transaction, PGNiG's own gas production in Norway will increase to 0.9 Bcm in 2021, up 45% on 2019," it said.
Once the deal is completed, PGNiG will hold a 6.45% interest in Kvitebjorn and a 3.225% in Valemon. It will also acquire a stake in the infrastructure used to transport output from the fields.
"Its (transaction's) purpose is to diversify gas supplies and improve Poland's energy security in reliance on our own reserves," CEO Jerzy Kwiecinski said.
'Rapid' expansion
Kwiecinski said that like its transaction completed earlier this year to raise its stake in the Gina Krog field, the latest acquisition will translate into "an immediate and substantial increase in gas volumes produced by our subsidiary on the Norwegian Continental Shelf."
According to PGNiG estimates, in 2023–28, after the launch of the Baltic Pipe in late 2022, the two fields will deliver approximately 0.2 Bcm/year of gas to the company.
Once the transaction is completed, PGNiG's asset portfolio will include a total of 32 licenses on the NCS.
The "rapid pace" of acquisitions over the past four years has increased its Norwegian oil and gas reserves from 80 million barrels of oil equivalent to approximately 200 million boe, it said.
PGNiG is already producing oil and gas from seven NCS fields -- Skarv, Morvin, Vale, Vilje, Gina Krog, Skogul and Aerfugl -- while development and assessment work is under way on five more deposits: Duva, Tommeliten Alpha, King Lear, Aerfugl Outer and Shrek.
