PGNiG Upstream Norway acquires shares in Storklakken

Acquiring assets on the Norwegian market is a natural investment route for the PGNiG Group. Former PGNiG Upstream International, i.e. PGNiG Upstream Norway, a subsidiary of PGNiG SA, acquired shares in the recently discovered Storklakken oil field. The transaction is to allow for an increase in the extraction of hydrocarbons outside Poland.

Piotr Woźniak, the President of PGNiG SA’s Management Board, stresses that he is happy to broaden cooperation with Aker BP, from whom PGNiG Upstream Noway acquired the shares. He describes the step as another proof of engagement in increasing production in Norway. He is also convinced that thanks to Aker BP’s competence in the timely execution of projects, the investment made by PGNiG’s subsidiary will soon be recouped.

PGNiG Upstream International became the owner of 35% of shares in the PL460 licence in the North Sea (the remaining 65% is held by Aker BP). The licence includes the Storklakken oil field, which was discovered by Aker BP seven years ago. The launch of production is forecast for 2020.

The interest in the Norwegian Continental Shelf can be explained by a high level of return with relatively low risk. Current and future investments in the region are to constitute a basis for future supplies of gas to Poland. In the next five years, Norway, Denmark and Poland are going to build a system of gas pipelines guaranteeing access to the gas market in Central Europe.

PGNiG started its Norwegian operations in 2007 when the company acquired shares in the Skarv oil field. Currently, it owns 19 licences on the Norwegian Continental Shelf (that does not include Storklakken, as the transaction has not been made yet).

The projected volume of production for 2017 from Norwegian oil fields is around 571 thousand tons of crude oil equivalent and 0.5 billion m3 of natural gas.